Cirat Energetic utilisation of wood in northwest Russia Prof. Dr. BRUNO BRANDIMARTE Honorary Prsident of Cirat Institute of Biodymnamic Università degli Studi di TorVergat Prof. Dr. VLADIMIR PETROV Institute of Forest Economics, St. Petersburg State Forest Technical Academy Dipl.- Oec. ANTON ORLOV Chair of Forestry and Forest Products of Eastern Europe Institute of International Forestry and Forest Products TU Dresden 16 th September 2010

 Prospects for the energetic utilisation of wood  Dendromass potential of northwest Russia  Pellet production in northwest Russia  New pellet plant in the Leningrad Region EFI 2010 Annual Conference, Dresden, Germany

R USSIA ’ S E NERGY S TRATEGY EFI 2010 Annual Conference Dresden, Germany  The Energy Efficiency Programme will run until 2020 and provide for an increase in the proportion of renewable resources from 1% to 4.5%.  The Forest Exploitation Incentives component of the Priority Investment Projects will incentivise the flow of capital into the Russian forest industry.

EFI 2010 Annual Conference Dresden, Germany

N ORTHWEST R USSIA EFI 2010 Annual Conference Dresden, Germany 5 ~10% of the territory of Russia ~10% of the total Russian forest area ~10% of Russia’s GDP Area Population Forest land Volume of mature and overmature trees 1.7 million km million 85.1 million ha 4.4 billion m 3

D ENDROMASS POTENTIAL OF NORTHWEST R USSIA Theoretical potential Тechnical potential Actual potential EFI 2010 Annual Conference Dresden, Germany

T HEORETICAL DENDROMASS POTENTIAL EFI 2010 Annual Conference Dresden, Germany 7 Theoretical potential = Stemwood volume of the stand + Wood residues (branches, crowns and roots) (m 3 / a * region) 100%

T HEORETICAL DENDROMASS POTENTIAL OF THE NORTHWEST R USSIA : 170 MILLION M 3 / A EFI 2010 Annual Conference Dresden, Germany 8

T ECHNICAL DENDROMASS POTENTIAL OF THE NORTHWEST R USSIA The technical potential for the energetic utilisation of dendromass consists of the following components:  firewood  wood residues (only branches and tree tops)  sawmill and plywood residues EFI 2010 Annual Conference Dresden, Germany 9

EFI 2010 Annual Conference Dresden, Germany 10 T ECHNICAL DENDROMASS POTENTIAL OF THE NORTHWEST R USSIA : 71 MILLION M 3 / A

A CTUAL DENDROMASS POTENTIAL OF THE NORTHWEST R USSIA Restrictions Ecological (W)Economic (P) Conditions (W~W 1 )(P>0) “W” is a parameter describing an ecological situation before and after resource extraction “P” - profit should be >0 EFI 2010 Annual Conference Dresden, Germany

A CTUAL DENDROMASS POTENTIAL OF THE NORTHWEST R USSIA : 29 MILLION M 3 / A EFI 2010 Annual Conference Dresden, Germany 12

U TILISATION OF THE ANNUAL ALLOWABLE CUT IN THE NORTHWEST R USSIA (%) EFI 2010 Annual Conference Dresden, Germany The annual allowable cut is the maximum permissible volume of wood harvested per year.

EFI 2010 Annual Conference Dresden, Germany 14 Source: ; 2009/10 P ELLET PRODUCTION E UROPE & NORTHWEST R USSIA

P RICE TRENDS FOR PELLETS : E UROPE / G ERMANY / R USSIA EFI 2010 Annual Conference Dresden, Germany Pellets Oil Nat. gas Euros per tonne of wood pellets Cent per litre oil / Cent per 10 kWh gas Source: C.A.R.M.E.N., Lesprominform, 2009

P ELLET PRODUCTION PROJECT IN THE L ENINGRAD R EGION C APACITY : 1 MILLION T / A EFI 2010 Annual Conference Dresden, Germany Raw material requirement: million m 3 / a

S UMMARY EFI 2010 Annual Conference Dresden, Germany 17  Good geographical position  Poorly developed network of forest roads  The potential forest increment is limited by the age structure of the forests  Forest management by the state does not involve businesses  There are no mechanisms of support and subsidy

EFI 2010 Annual Conference Dresden, Germany 18 Thank you for your attention! Prof. Dr. Vladimir Petrov Institute of Forest Economics St. Petersburg State Forest Technical Academy Institutsky per.5, St. Petersburg Russia Dipl.-Oec. Anton Orlov Institute of International Forestry and Forest Products Chair of Forestry and Timber Products of Eastern Europe Faculty of Forest, Geological and Hydrological Sciences TU Dresden Pienner Straße Tharandt Germany