Wood market in Poland: structure of use, industrial and energy purposes

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1 InnovaWood/Wood Technology Institute Poznan, Wood market in Poland: structure of use, industrial and energy purposes Prof. Ewa Ratajczak, PhD Wojciech Cichy, PhD Joanna Pikul, MSc Wood Technology Institute Poznan, Poland

2 Forest sector in Poland (2005) Forest area 9.0 M ha Forest cover 28.8 % Growing stock of standing wood 1.8 bn m 3 Removals: total 31.9 M m 3 rank in EU-25 5 (behind: - Sweden, - Germany, - Finland, - France)

3 Wood market in Poland main trends Economic boom thanks to the: accession to the EU and acceleration of foreign direct investments inflow Increase of export and production of wood products (partly owing to favourable EURO to PLN exchange rates) High dependence of the Polish wood industry on national timber resources Additionally increase in demand for wood as a biomass for energy purposes (result of Poland s obligation to increase the share of energy derived from renewables) Good economic situation of the wood and furniture industries and needs of the energy sector lead to the difficulties in domestic raw material supply

4 Dynamics of removals, exports and imports of roundwood in Poland ( ) M m Removals Export Import M m estimate forecast

5 Production and consumption of roundwood in Poland (2005, 1000 m 3 ) Removals Export Import Consumption Roundwood Industrial roundwood coniferous nonconiferous Fuelwood

6 How/where to use?

7 Wood-based panels 25% Consumption of roundwood in Poland Sawnwood 52% Wood pulp 13% Other production 4% Other purposes 6% 2005 Total consumption of roundwood = 33.4 M m 3 of which: 94% industry 5% energy 1% other (agriculture, gardening) Roundwood: - industrial wood: 99% industry 1% energy - fuelwood: 55% industry 45% energy

8 Poland in EU-25 acc. to production of wood and wood products RANKING ROUNDWOOD M mm3 3 SAWNWOOD M m3 m 3 WOOD-BASED PANELS M m3 m 3 WOOD WOOD PULP PULP M ton ton PAPER AND AND PAPERBOARD M ton ton FURNITURE 5 bn bn FLOORING M mm

9 Other sources of raw material in Poland (2005) 1000 m 3 Chips from the forestry Total 227 industry 227 Purposes energy - Wood from fast-growing trees Wood from trees outside the forest Industrial wood waste Bark Used wood ITD estimation

10 Installed electric capacity in Poland (2005) Total: MW 6.3% Hydroelectric power plants 0.5% Renewables - total 155 MW Thermal power plants 93.2% 92% public 8% industrial

11 Production of electricity from renewables in Poland (2005) Total: 241 GWh In Poland by regions: The share of renewable energy in the total production of energy amounts to 5.4% and in the consumption of energy 4.6%

12 Production of renewable energy in Poland (2005) Total: thou. toe (ton of oil equivalent) of which: from biomass thou. toe 0.3% 4.4% 3.6% 0.2% 91.5% geothermal from biomass from wind from water other

13 Wooden raw materials/products for energy generation: wood chips sawdust wood waste from the industry (mainly sawmills) recovered wood (mostly from packaging) bark wood from trees outside the forest wood from fast-growing trees (e.g. willow) solid biofuels (pellets, briquettes)

14 Consumers of wooden fuels (1): Power plants: sawdust wood chips wood from fast-growing trees (e.g. willow) Industrial heat installations: sawdust wood chips wood waste from the sawmilling industry recovered (used) wood wood from trees outside the forest

15 Consumers of wooden fuels (2): Household heat systems: wood waste from the sawmilling industry recovered (used) wood wood from trees outside the forest fuelwood from forests solid biofuels (pellets, briquettes)

16 Price of unit of heat for households in Poland ,73 29,48 27,73 May ,01 17,04 12,82 13,9 9,14 9,84 5,73 7,34 3,72 5,73 4,47 Price of unit of energy [EUR/GJ] 0 Straw Wood fuel Wood chips Pellets Coal dust Coke Hard coal Fuel oil Natural gas LPG (propane) Heat pomp Electric heating I rate Electric heating II rate Electric heating III rate Source: Wach E.,

17 Production and use of pellets in Poland 300 Production Use 200 [thou.mg] Year Source: Wach E.,

18 Country Use Import Export Austria Belgium Czech Republic Denmark Estonia Finland France Spain Netherlands Ireland Use of pellets for energy generation in European countries Lithuania Latvia [thou. Mg/Year] Germany Poland Slovakia Source: Wach E., Switzerland Sweden Great Britain Italy

19 Prices of wood fuels Poland 2007 (1) Wood chips: - Power plants 10 EUR/m 3 - Wood-based panels industry EUR/m 3 Sawdust: - Power plants 6-8 EUR/m 3 - Wood-based panels industry EUR/m 3 - Pellet factories EUR/m 3 Pellets: - producer s price(15 kg bags) EUR/Mg - real price EUR/Mg

20 Prices of wood fuels Poland 2007 (2) Briquettes: - for industrial use EUR/Mg - for individual use (e.g. block) EUR/Mg - PiniKey type to 140 EUR/Mg Willow: - chips about 10 EUR/m 3 Recovered (used) wood: EUR/Mg Hard coal: - for individual use about 100 EUR/Mg

21 Conclusions (1): 1. Poland is a country with a great potential of wooden raw material in the European scale. 2. Poland is one of main European producers of many wood materials and products especially of wood-based panels, furniture and flooring. 3. Due to Poland s obligation to increase the share of renewable energy in the total energy balance; as well as good economic conditions, recent years have shown a shortage of roundwood on the market.

22 Conclusions (2): 4. Wood-processing should be a priority in using wood. 5. For energy purposes one should use wood not suitable for wood-processing (worst quality, from recycling, used wood etc.) 6. Increasing the production of energy from biomass should not be the only solution (alternative sources: wind, water energy).

23 Thank you!

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