Wood fuels for energy production

Electricity and heat is generated from black liquor, bark, and sawdust

Wood-based energy is derived from by-products of wood processing, such as bark, sawdust, and waste liquor from pulp production. Additionally, treetops, branches, small-diameter trees, and stumps collected during logging and forest management can be chipped and used as energy sources, known as forest chips. The main use of wood fuels in Finland is for the production of heat and electricity.

In recent years, wood fuels have accounted for over a quarter of Finland's total energy consumption. Today, wood fuels and nuclear power are the largest individual sources of energy production in Finland.

Wood-based energy production in Finland is based on a variety of different sources

In Finland, the use of wood fuels for energy production is based on by-products from wood processing and various residues or small-diameter trees from logging and forest management.

The most significant single wood fuel in Finland is black liquor, a by-product of pulp production. Additionally, heating and power plants use an equal amount of solid wood fuels, such as bark, sawdust, and forest chips.

The growth in the use of wood fuels in Finland in recent years has primarily been due to the increased utilization of by-products and residues from the forest industry. Wood fuels have replaced fossil fuels, such as coal, oil, natural gas, and peat, which has significantly contributed to the increase in the share of renewable energy sources in Finland.

Forest industry by-products and waste wood as a major energy source in Finland

Heating and power plants use solid wood fuels, such as by-products and waste wood, of which about two-thirds is bark. In addition to bark, various sawdust, wood chips, recycled wood, wood pellets, and briquettes are used. In 2024, a total of 10,1 million cubic meters of by-products and waste wood from the forest industry were used. In addition to by-products and waste wood, heating and power plants use forest chips for electricity and heat production. The total amount of solid wood fuels used in heating and power plants in 2024 was 22 million cubic meters, which corresponds to approximately 43,1 terawatt-hours (TWh) of energy content.

More than half of forest chips are made from small-diameter Trees

The use of forest chips in heating and power plants has averaged around 9 million cubic meters per year over the past decade (2012-2024). In recent years, more than half of the forest chips have been made from small-diameter trees, which are harvested during young forest management operations. The next most used material is logging residues. The use of forest chips in Finland has been particularly based on parts of the trunk unsuitable for industrial wood processing.

In 2024, the use of forest chips in heating and power plants was 10.5 million cubic meters. In 2024, 6.5 million cubic meters of forest chips were used in combined heat and power production (CHP) and 4 million cubic meters in heat production.

Including the 0.6 million cubic meters of forest chips burned in small houses, the total use of forest chips in 2024 was 11.1 million cubic meters.

Firewood used by households and farms is included in wood fuel statistics

In Finland, the use of wood fuels also includes firewood used by households and farms, known as small-scale wood use. The Natural Resources Institute Finland estimates the use of firewood in small houses through surveys. The most recent statistics pertain to the heating season of 2016-2017, estimating that small houses use 6.9 million cubic meters of firewood annually, corresponding to an energy content of 15.3 terawatt-hours (TWh). The firewood burned in small houses, such as logs, blocks, and chips, covers about nine percent of all domestic roundwood harvested in Finland.

Energy and climate strategies in Finland

The national climate and energy strategies are comprehensive medium-term action plans covering all greenhouse gas emissions in the emissions trading, burden-sharing, and land-use sectors, as well as carbon sinks in the land-use sector and other sectors. The latest national energy and climater strategy was published in December 2025.

Statistics of Statistics Finland, Natural Resources Institute Finland and Finnish Energy

Energy supply and consumption (Statistics Finland)
Finnish Energy statistics on electricity and district heating in Finland