"Only black peat is suitable for fuel, and it is found in every bog once the top layer, which is used for horticulture, has been extracted. Due to various circumstances, the use of black peat for heat production in our country practically ceased soon after the restoration of Latvia's independence. This sector had virtually come to a standstill, but now the situation has changed drastically," says Andris Ritenis, Chairman of the Board of SIA Silu kūdra.
Even last year, black peat could not compete with gas or woodchips in terms of extraction and transport costs. Now, the entrepreneur calculates that this resource is the cheapest available on the fuel market.
"Swedish buyers snap up Latvian woodchips, Italians buy pellets, and prices keep rising. Woodchips now cost more than 30 euros per m3, a price increase of more than three times! Meanwhile, the cost increase in peat extraction would only be as much as the rise in fuel prices – up to 2 euros per m3. Currently, it turns out that we can sell a cubic metre of milled peat from our own bog for 10-12 euros plus logistics costs. (...)"