Energetic utilisation of wood

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Energetic utilisation of wood in northwest Russia 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 16th September 2010

EFI 2010 Annual Conference, Dresden, Germany Prospects for the energetic utilisation of wood Dendromass potential of northwest Russia Pellet production in northwest Russia New pellet plant in the Leningrad Region 16.09.2010 EFI 2010 Annual Conference, Dresden, Germany

Russia’s Energy Strategy 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. 16.09.2010 EFI 2010 Annual Conference Dresden, Germany

16.09.2010 EFI 2010 Annual Conference Dresden, Germany

Northwest Russia ~10% of the territory of Russia Area Population Forest land Volume of mature and overmature trees 1.7 million km2 13.5 million 85.1 million ha 4.4 billion m3 ~10% of the territory of Russia ~10% of the total Russian forest area ~10% of Russia’s GDP 16.09.2010 5 EFI 2010 Annual Conference Dresden, Germany

Dendromass potential of northwest Russia Theoretical potential Тechnical potential Actual potential 16.09.2010 EFI 2010 Annual Conference Dresden, Germany

Theoretical dendromass potential 100% Theoretical potential = Stemwood volume of the stand + Wood residues (branches, crowns and roots) (m3 / a * region) 16.09.2010 EFI 2010 Annual Conference Dresden, Germany 7

Theoretical dendromass potential of the northwest Russia: 170 million m3 /a 16.09.2010 EFI 2010 Annual Conference Dresden, Germany 8

Technical dendromass potential of the northwest Russia 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 16.09.2010 EFI 2010 Annual Conference Dresden, Germany 9

Technical dendromass potential of the northwest Russia: 71 million m3 /a 16.09.2010 EFI 2010 Annual Conference Dresden, Germany 10

Actual dendromass potential of the northwest Russia Restrictions Ecological (W) Economic (P) Conditions (W~W1) (P>0) “W” is a parameter describing an ecological situation before and after resource extraction “P” - profit should be >0 16.09.2010 EFI 2010 Annual Conference Dresden, Germany 11

Actual dendromass potential of the northwest Russia: 29 million m3 / a 16.09.2010 EFI 2010 Annual Conference Dresden, Germany 12

Utilisation of the annual allowable cut in the northwest Russia (%) The annual allowable cut is the maximum permissible volume of wood harvested per year. 16.09.2010 EFI 2010 Annual Conference Dresden, Germany

Pellet production Europe & northwest Russia Source: www.bioenergyinternational.com, 2003; 2009/10 16.09.2010 EFI 2010 Annual Conference Dresden, Germany 14

Price trends for pellets: Europe / Germany / Russia 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 16.09.2010 EFI 2010 Annual Conference Dresden, Germany 15

Raw material requirement: 3 - 4 million m3 / a Pellet production project in the Leningrad Region Capacity: 1 million t /a Raw material requirement: 3 - 4 million m3 / a 16.09.2010 EFI 2010 Annual Conference Dresden, Germany

Summary 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 16.09.2010 EFI 2010 Annual Conference Dresden, Germany 17

Thank you for your attention! Prof. Dr. Vladimir Petrov Institute of Forest Economics St. Petersburg State Forest Technical Academy Institutsky per.5,194021 St. Petersburg Russia E-mail: wladimirpetrov@mail.ru Thank you for your attention! 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 19 01737 Tharandt Germany E-mail: orlov@forst.tu-dresden.de 09.09.2010 EFI 2010 Annual Conference Dresden, Germany 18