It is clear that Finland's forests are not grown, tended, and managed specifically for energy production. Wood used for energy is a by-product of felling, forestry, and the forest industry.
There are enough raw materials in the forests to meet the needs of both energy production and the forest industry, but the profitable extraction of energy wood will pose a problem.
"Everything will be fine with timber supplies as long as we can extract these materials from the forest; otherwise, problems may arise," explains Kyösti Turkia (Kyösti Turkia), a bioenergy and bioeconomy expert at the Finnish Forest Centre.
Russia's attack on Ukraine is impacting Finland's forest sector. Imports of softwood logs from Russia stopped even before this aggression, due to export duties imposed by Russia. In February, imports of Russian wood chips used in district heating stations suddenly came to an end.
The new situation regarding energy wood is drawing attention to the country's young forests that require thinning. More than half of the energy obtained from forests in Finland is produced from small-diameter wood harvested during the thinning of young stands.
"There are significant energy reserves in forests that need to be thinned," points out Kyösti Turkia. "We must continue tending, managing, and purchasing in Finland, and figure out how to concentrate thinning operations in areas where it is most needed; that is precisely where the potential lies right now."
Young forest management has been neglected
According to the latest (12th) national forest inventory, there are 800,000 hectares of forest in Finland where the management of young stands has been neglected.
"Of that, it would be sensible to harvest energy wood from 460,000 hectares. As you can see, the area is large," says K. Turkia. There are a further 900,000 hectares of forest in Finland that are in urgent need of their first thinning. In certain forests, harvesting energy wood is also a reasonable choice, although, as is known, chips and even smaller logs are also obtained during the first thinning.
Forests must be managed effectively even if their tending at the sapling stage has been delayed. Methods for managing young stands must be diversified, and forest operations need to be developed. If we can solve these problems, we will have a wealth of raw materials at our disposal. The Finnish Forest Centre recommends carrying out early tending in stands that do not exceed three metres in height.
In 2020, based on the Act on the Financing of Sustainable Forestry, nearly 42,000 hectares owned by private individuals received support for early forest management. It should be emphasised that the goal is to reach about 70,000 hectares per year.
The locations of energy wood areas are known
Failure to carry out timely management of young stands can result in small-diameter or low-quality wood instead of high-quality logs. Forest resource data collected by the Finnish Forest Centre displays the locations of areas where energy wood is available on a map. Such a service is freely available to all interested parties. "We know where forest management work has not been carried out and where energy wood might be available." Timber buyers and harvesting organisations can request information by finding out who owns the relevant forest. The data is available based on the Finnish Forest Information Act.
Encouragement for forest owners to carry out thinning was expressed by the company Stora Enso in a press release in mid-March. The company stressed that forest thinning specifically facilitates the production of wood chips. "This is the right moment to carry out delayed thinning work and conclude deals for your timber. This will ensure wood supply for Finnish sawmills and allow their operations to continue," said Janne Partanen (Janne Partanen), Head of Wood Supply in Finland, in a press release from Stora Enso.
As wood consumption increases in the forest, wood products, and sawmill sectors, the availability of by-products suitable for energy production, such as black liquor, also increases. "60% of solid wood fuel used in energy comes from industrial by-products. 40% of the energy obtained from wood must come directly from forests, and this is the most expensive part of forest energy," points out K. Turkia.
The cascade principle is emphasised in EU regulations; in other words, wood should first be processed for high-value purposes and only then used for energy production. "The direction supported by the regulations is to use forestry by-products for energy production," explains K. Turkia.
Logistics chains need streamlining – better subsidies are needed
Kyösti Turkia believes that managing young forests and harvesting small-diameter wood from them according to market conditions is not easy. Costs are the determining factor in where to source energy wood. It is most cost-effective to produce wood chips, and the price of energy wood will rise with demand. In K. Turkia's opinion, increasing the availability of state support for sustainable forestry should be re-evaluated, taking into account the new demand situation. However, this help alone will not be enough to accelerate the procurement of energy wood. At the moment, the most important thing is to ensure an uninterrupted logistics chain for energy wood. Bio-terminals are needed at heating plants to store raw materials. Forest machinery operators who know how to work in young forests are also required.
"We must be able to improve the quality of harvesting so that forest owners are satisfied. Compiling a list of problems and solutions related to increasing energy wood procurement is not difficult," explains K. Turkia, pointing out that all participants in the energy wood value chain must make a profit, including those carrying out the harvesting. It should be emphasised that these entrepreneurs are significantly affected by high harvesting costs and low profitability, as energy wood sourced directly from the forest is the most expensive.
Fuel prices have risen sharply. The price of light fuel oil has roughly doubled in about two years, and the price of diesel has increased by 70%. "As a result, those who purchase district heating may have to pay a little more to ensure security of supply."
EU requirements increase the importance of energy derived from wood
How will the situation be affected by potential new EU environmental targets, plans, and strategies?
"In the current crisis situation, Finland's energy security has become an issue that cannot be ignored, regardless of climate targets. For example, the use of peat for energy production must disappear much more slowly: if and when we want... to keep our homes warm. The situation has changed quite suddenly, and there is a great deal of uncertainty," points out K. Turkia. He predicts that energy derived from forest wood will gain greater significance in EU energy targets, which is why the share of renewable energy in Finland will increase. More than 70% of renewable energy in Finland is now produced using wood fuel.
At the same time, EU management and regulation of forest use are becoming increasingly strict. The EU is preparing sustainability directives, the content of which is "influenced by concerns" (not facts!) regarding the decline in biodiversity. The impact of EU legislation and sustainability criteria on the future potential of forest energy use must certainly be carefully evaluated, notes Kyösti Turkia.
"So far, Finland does not have detailed and clear information on the content of the taxonomy, the biodiversity strategy, and biodiversity criteria. They are currently only being formulated. K. Turkia points out that ecological sustainability can also be ensured during harvesting if forest management recommendations and forest certification criteria are followed. Biodiversity will be taken into account in the same way as in other forest operations."
Translated from English.Graphical data source - Natural Resources Institute Finland.