New investments in Forest sector boosting Finland’s use of wood and wood energy

In April 2014 Metsä Group presented on their plans to build a new bio-product mill in Äänekoski in Central Finland.  Fortum’s pyrolysis plant are already producing pyrolysis oil since November 2013, Stora Enso and UPM are also renewing their production units in Varkaus and Kymi and UPM’s, the world first bio refinery producing wood-based biodiesel construction are on-going and is estimated to be ready this summer. Metsä Group investment plans in Äänekoski are the biggest in history of Finland’s forest industry.

Some medium size and smaller projects are ongoing all over Finland. Many energy producers are considering replacing fossil fuels and peat by forest energy in their energy production.  These investments will effect to the use of wood energy and all are following Finland’s new bio-economy strategy.

Finland’s first national bio-economy strategy was unveiled at the beginning of May 2014. It is a step towards a more sustainable economy and the attainment of a low-carbon society. The forest industry has an important role in the bio-economy, as the industry’s entire operations are based on products manufactured from renewable and recyclable natural resources. At the moment, the forest industry already produces about two thirds of Finland’s renewable energy. More about the new strategy can be found from:–1899.html

These investments create new jobs for each step in the supply chain and support the local economy with the help of using renewable resources. Finland’s goal for 2020 is to use 13.5 Million solid cubic meter of forest energy and to increase the consumption of renewable energy to 38% by 2020. At the momentEU statistics show that 34.3% of Finnish energy currently comes from renewable sources. The situation in other NPP countries can be found from figure 1.


Metla blog image 14-05-2014

Figure 1. Use of Renewables in NPP countries.

* Including England, Northern Ireland, Scotland and Wales,

** Situation 2011, renewable share of primary energy consumption,

*** Faroe Island production of electricity coming from renewable energy sources,

**** Information missing,

Data sources:, and


About biopadblog

Developing a local bioenergy market can provide significant opportunities for rural and remote areas, by improving security of energy supply, contributing to a reduction in CO2 emissions and stimulating the local economy by creating jobs and keeping payments for energy within the local community. A new project, BioPAD (Bioenergy Proliferation and Deployment), which targets the Northern Periphery of Europe, aims to ensure that bioenergy becomes more widely used and that awareness of the opportunities it provides are increased. The project will help the development of bioenergy and improve our understanding of the links between supply and demand by looking at supply chains for a variety of bioenergy fuels and different ways of converting these fuels into sustainable energy. Understanding the supply chains and the ways bioenergy moves from fuel source to energy provision will help the establishment of robust and efficient supply services which can match local demand. BioPAD is led by the Western Development Commission (Ireland) and is funded under the ERDF Interreg IVB Northern Periphery Programme (NPP)
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