Finland increased imports of Russian wood pellets by 50% in 2013

Finland traditionally is one of the leading countries among Russian wood pellet importers. Russian Federation intends to reach 25% of biofuel in the energy sector, so the need in biofuel imports will continue to grow and first of all from Russia.

Thus, according to the Database of importers, buyers of Russian wood pellets 2013-2014(4), prepared by the experts of Ukrainian Biofuel Portal pellets-wood.com, in 2013 Finland imported more than 55 thousand tons of pellets from Russia, what is almost twice more than in the previous year. It amounted around 90% of the total import volume of the country. As of April, 2014 the imports of Russian wood pellets has already amounted around 30 thousand tons. Pellet deliveries are mainly carried out from Karelia and Leningrad region of Russian Federation. During January-April, 2014 Russia has cooperated with around 40 companies from Finland compared to 50 in 2013.

PIN ARCTIC OY has remained the largest player among importers of Russian wood pellets on the Finland’s biofuel market. In 2013 the imports of the company were more than 140 thousand tons. For the period January-April, 2014 the company purchased in Russia about 70 thousand tons of pellets. Another company STORA ENSO WOOD PRODUCTS OY LTD has already exceeded last year's figures by 30% (from 63 thousand tons to 80 thousand tons) as of April 2014.

Overall, in 2013 Finland’s wood pellet consumption rose by 30% and amounted to more than 220 thousand tons, thus reached its absolute maximum. The main reason for the growth of pellet consumption was increasing consumption by energy enterprises of the country.

For example, one of the largest Finland’s energy companies Helsingin Energia conducts testing on the joint use of coal and wood pellets as fuel at Salmisaari plant. In 2015 the share of pellets will be 7%, then the proportion of granules could reach more than 40%. Another one of the largest thermal power plants with the capacity of 33 MW has already been operating on wood granules since December 2012.  The plant belongs to the company Tampereen Energiantuotanto Oy.

However, in 2013 the domestic wood pellet production in Finland rose by 18 thousand tons (7%) in comparison with 2012, reached 270 thousand tons. Wherein the exports amounted to 78 thousand tons. Pellets are delivered mainly to Denmark and Sweden.  For comparison, the total exports of wood pellets from Russia are about 1 million tons per year.

So, in the next few years Finland will increase the imports of Russian wood pellets. Thus, in 2013 the country doubled the imports, and for the first four months of 2014 Finland has already purchased more than 50% of the last year’s volume.

Author: Ivan Prokhorov