Due to the climate change agreements and trade in emission rights the competitiveness of wood will increase in comparison with non-renewable fuels. This may induce more energy producers to use forest based fuels. Then this energy market must be in good working order. Forest based energy, now being in a strong growth phase, has to have a price.

The moment has arrived when the use of forest based energy has reached a volume where there are opportunities for creating a functioning market for such energy, says Mr Olavi Peltola, Chairman of the Forestry Board of the Central Union of Agricultural Producers and Forest Owners (MTK).
So far forest owners have not always got any money for shredded tree tops and other residuals. According to shop floor level market information the present price of such shreds is two euro per cubic meter. That makes about 100 euro per hectare. Furthermore, wood chips are a renewable and local raw material. This means that the favourable impact on employment and on the economy will benefit local business. This is important in particular for many remote areas where there are very little other employment opportunities.
In recent years the use of wood energy has increased considerably in at least the Nordic countries. The use of wood chips has grown by 25 per cent annually. Last year about 2.5 million cubic meters of shredded tree tops left over from lumbering and of energy wood accumulating from the trimming of young forests were used as energy, only in Finland. This increase is a result of both a successful energy policy and of an improvement of both wood harvesting and the entire production chain. Also in the future there will be growth opportunities, because our forests contain more than enough energy raw material. However, a bright future is not at all self-evident. Increased use of forest based energy will require investments in both harvesting and marketing.
For further information, please contact Mr Olavi Peltola, Chairman of the Forestry Board of the Central Union of Agricultural Producers and Forest Owners (MTK), e-mail This email address is being protected from spambots. You need JavaScript enabled to view it.