Wood Fuels for Energy Production

Electricity and Heat from Black Liquor, Bark, and Sawdust Generated in Wood Processing

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 are the largest single source of energy production in Finland, surpassing oil, coal, and natural gas since 2012.

Wood-Based Energy Production in Finland from Various 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 2023, a total of 10 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 2023 was 22.4 million cubic meters, which corresponds to approximately 44 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 8-9 million cubic meters per year (about 16-18 TWh per year) over the past decade (2012-2023). 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 2023, the use of forest chips in heating and power plants rose to 11 million cubic meters. Of this, 6.6 million cubic meters were small-diameter trees, and 3.0 million cubic meters were logging residues. Additionally, plants used large-diameter trunk wood, which is mostly decayed or dry-standing wood, amounting to 1.1 million cubic meters, and stumps totaling 0.3 million cubic meters. In 2023, 7 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 2023 was 11.6 million cubic meters.

Firewood Used by Households and Farms 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. Including the firewood used in small houses, the total consumption of solid wood fuels in 2022 amounted to 30 million cubic meters, or approximately 60 TWh.

Availability of Forest Chips as Replacements for Energy Peat and Coal Investigated in 2021

The replacement of peat and coal with renewable energy sources will increase the demand for solid wood fuels in the coming years. Studies conducted by AFRY and the Natural Resources Institute Finland in the spring of 2021 assessed the growth in demand for solid wood fuels for energy production. AFRY's study examined the development of demand for forest chips and other energy wood, the regional adequacy of domestic supply, and the impacts on the use of industrial wood for energy and imported chips, as well as implications for security of supply. The assessments were conducted for the years 2025, 2030, and 2035. The Natural Resources Institute Finland investigated the adequacy of forest chips until 2030 based on three demand scenarios. Links to AFRY's and the Natural Resources Institute Finland's studies can be found below.

Energy and Climate Strategies

The national climate and energy strategy, drafted in 2022, is a comprehensive medium-term action plan 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 strategy's preparation was particularly influenced by the EU's climate and energy targets for 2030 and the government's carbon neutrality 2035 goal. The climate and energy strategy and the Medium-term Climate Plan (KAISU) were based on an assessment of policy measures and their impacts conducted in the HIISI project. The forest sector's goals and guidelines in the climate and energy strategy include the development of renewable energy and carbon sinks.

The preparation of a new energy and climate strategy has begun under the leadership of the Ministry of Economic Affairs and Employment in the spring of 2024.

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

Wood in energy generation 2023 (provisional)
Energy supply and consumption (Statistics Finland)
Finnish Energy statistics on electricity and district heating in Finland
Finland in Figures: Energy (Statistics Finland)

Wood in energy generation.

Further information

Kaisa Pirkola, Ministerial Adviser
Ministry of Agriculture and Forestry, Natural Resources Department, Metsä- ja biotalousyksikkö Telephone:0295162350 Email Address: firstname.lastname@gov.fi