FOREST INDUSTRY, FORESTRY AND BIOENERGY IN FINLAND Canadian - - PowerPoint PPT Presentation

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FOREST INDUSTRY, FORESTRY AND BIOENERGY IN FINLAND Canadian - - PowerPoint PPT Presentation

Feb 27, 2024 315 likes •492 views

FOREST INDUSTRY, FORESTRY AND BIOENERGY IN FINLAND Canadian bioenergy mission to Finland Ahti Fagerblom, Manager, Energy and Climate Policy 2 - 0 FOREST INDUSTRY IN FINLAND The sector employs directly 42,000 people in

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SLIDE 1

FOREST INDUSTRY, FORESTRY AND BIOENERGY IN FINLAND

Canadian bioenergy mission to Finland Ahti Fagerblom, Manager, Energy and Climate Policy

2 - 0

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SLIDE 2

FOREST INDUSTRY IN FINLAND

  • The sector employs directly 42,000 people in

Finland and abroad approx. 50,000 people

  • Significant indirect effects for other sectors

– Important customer of products and services

  • f other industries and transportation

– Industrial core for business services (maintenance etc.)

  • The forest industry directly and indirectly

employs approximately 160,000 Finns

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SLIDE 3

FINLAND'S TOP EXPORT PRODUCTS

Paper and paperboard 7,0 bill. EUR 1.

  • 2. Diesel fuel

3,4 bill. EUR

  • 3. Stainless steel

2,5 bill. EUR

Wood pulp 1,8 bill. EUR 4. Softwood sawnwood 1,6 bill. EUR 6.

  • 10. Electricity transformers and

frequency changers 1,0 bill. EUR

  • 5. Motor vehicles for

personal transport 1,7 bill. EUR

  • 7. Electric generators

and motors 1,3 bill. EUR

  • 8. Special machinery

1,0 bill. EUR

  • 9. Earth movers and

excavators and other similar machinery 1,0 bill. EUR

Photo Planmeca Photo ABB Photo Valmet Automotive

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SLIDE 4

VALUE OF FOREST INDUSTRY EXPORT AND SHARE OF TOTAL FINNISH EXPORTS

0% 5% 10% 15% 20% 25% 30% 2,500 5,000 7,500 10,000 12,500 15,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 share of exports Million euros Pulp & Paper Industry Wood Products Furniture industry share of total exports

Value of exports, billion EUR

2015

Pulp, paper, board and converted products 9 100 Wood products 2 400 Furniture industry 150 Forest industry total 11 650 Share of total Finnish exports 21,6 %

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SLIDE 5

FOREST INDUSTRY IS IMPORTANT IN THE REGIONS

Share of Gross Value of Manufacturing , 2014

Top 5 regions

South Karelia 70 % Kymenlaakso 51 % Central Finland 38 % North Karelia 33 % South Savo 31 % Average for the whole country 19 % 5

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SLIDE 6

SOURCE: Luke

FORESTS COVER 60% OF THE TOTAL AREA IN FINLAND

Forest land 60% Inland watercources 10% Low-productive forests 10% Scrub land 7% Agricultural land 8% Build-up areas 3% Transport routes 2%

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SLIDE 7

SOURCE: Luke

MAINTENANCE OF FOREST RESOURCES IN A LONG TERM IS ESSENTIAL TO DEVELOPMENT OF WOOD-BASED BIO-ECONOMY

500 1,000 1,500 2,000 2,500

1921-24 36-38 1944 51-53 60-63 64-70 71-76 77-84 86-94 96-2003 2009-15

  • Milj. m3

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Pine Spruce Birch We use only domestic tree species in regeneration

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SLIDE 8

SOURCE: Luke

PRIVATE FOREST OWNERS OWN 65 % OF FOREST LAND

Non-industrial private 60% Companies 9% State 26% Others 5%

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SLIDE 9

SOURCE: Luke

THE GROWTH OF FINNISH FORESTS

FOREST BALANCE IN FINLAND 1960-2014 20 40 60 80 100 120

1960 62 64 66 68 1970 72 74 76 78 1980 82 84 86 88 1990 92 94 96 98 2000 2002 2004 2006 2008 2010 2012 2014

  • Mill. m3

Annual increment Total drain Industrial roundwood

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SLIDE 10

FOREST MANAGEMENT AND CHAIN OF CUSTODY CERTIFICATION

  • PEFC and FSC certification (FM and CoC) schemes

essential to our sustainable business

– Forest industry participates actively in different global and national process under both certification schemes

  • PEFC certification

– More than 85 % of commercial forests (almost 18 M ha) – Forest ownership structure in Finland has been a driving force in certification under PEFC

  • FSC certification

– About 7 % of commercial forests (1.5 M ha): Tornator’s, UPM’s, Metsä Group’s own forests – Group certifications owned by the forest companies attract private forest owners

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SLIDE 11

INVESTMENT PROJECTS

UPM, Lappeenranta

  • Biorefinery (biodiesel)
  • 175 million EUR
  • Ready 2015 January

Stora Enso, Varkaus

  • Change from woodfree paper to

packaging material and changes at the pulp mill

  • 110 Million EUR
  • Ready 2015

UPM, Kymi

  • Pulp mill capacity increase
  • 160 Million EUR
  • Ready 2015

Sappi, Kirkniemi

  • New powerplant
  • 60 Million EUR
  • Ready 2015

Stora Enso, Sunila

  • Biorefinery, lignin separation
  • 32 Million EUR
  • Ready 2015

Stora Enso, Varkaus

  • Wooden building elements, LVL
  • 48 Million EUR
  • Ready 2016

UPM, Kaukas

  • Pulp mill improvements
  • 50 Million EUR
  • Ready end 2016

Metsä Group, Äänekoski:

  • Biorefinery / Softwood kraft pulp
  • 1,2 Billion EUR
  • Ready by 2017 Q3
  • Additional investment: sulphuric acid

plant, 20 mill. euros Kotkamills, Kotka

  • Change of production line PM2 from

magazine paper to paperboard

  • 100 Million EUR
  • Start-up 2016 July

Stora Enso, Imatra

  • new polyethylene extrusion coating

plant and an automated roll warehouse

  • 70 mill. euros
  • Ready by end 2017

Investment proposals: Finnpulp Oy, Kuopio

  • Announced Feb 2015; new company
  • 1,4 Billion EUR, softwood kraft pulp

Kemijärvi Biorefinery

  • Announced Feb 2015, new company
  • 700–800 Million EUR, softwood kraft

pulp Kainuu biorefinery

  • Announced Dec 2015
  • Pulp mill project, several location

considered Kaidi biorefinery

  • Announced Feb 2016
  • Biodiesel project in Kemi, Chinese

investor

  • 1 billion euros, start-up end of 2019

Haapajärvi biorefinery

  • Announced in April 2016
  • Biorefinery, softwood kraft pulp,

400 000 tonnes

  • 500 million euro investment

SOURCE: Company announcements & press releases

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SLIDE 12

ENERGY CONSUMPTION IN FINLAND, 2015

Oil 24% Coal 8% Natural gas 6% Nuclear energy 19% Net imports of electricity 4% Hydro and wind power 5% Peat 4% Wood fuels 26% Other 4%

2015* TWh Change%* Total energy consumption 361

  • 3,3 %

Wood fuels 93

  • 1,8 %

%change from previous year * preliminary figures

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SLIDE 13

RENEWABLE ENERGY SOURCES IN ENERGY CONSUMPTION IN FINLAND

20 40 60 80 100 120 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015* Hydro and wind power Small-scale combustion of wood Other forest industry by-products and waste products Black liquor and other concentrated liquors

TWh TWh

2015* TWh Change% Black liquor and

  • ther concentrated

liquors 39

  • 0,4 %

Other forest industry by- products and waste products 37

  • 2,0 %

Small-scale combustion of wood 16

  • 4,8 %

Hydro and wind power 19 31,9 % %change from previous year * preliminary figures

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SLIDE 14

WOOD PROCESSING – A CORNER STONE FOR NATIONAL ECONOMY AND CLIMATE SOLUTIONS

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Packaging Energy and biofuels Wood and other materials together Buildings and interior design Medicine and wellness Pulp and paper Biopolymers and bio plastics

The share of renewable energy produced by forest-based industry

2/3 The variety of climate friendly export products

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SLIDE 15

THE BIO-ECONOMY WHEEL OF FORTUNE

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Take responsibility Base for bio- economy Replace non- renewables Organic Economy ¥€$ New

  • pportunities

Variety of products More renewable energy Less CO2

Growing in our backyard Heritage Growing forest resources

Substitute metals, concrete, fossils

Growing naturally Export products Wood revenues Invest in forestry Innovate

Buildings, medicine, packaging, chemicals Efficient bioenergy from leftovers Natural CO2 cycle Proper accounting

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SLIDE 16