Skip to content

Finland's peat production restarting to replace Russian wood

The Finnish state-owned company Neova plans to restart the production of peat for use in power production. Meanwhile, UPM is suspending wood purchases from Russia.

Finland's climate goals have dramatically reduced the use of peat. Image: Kare Lehtonen / Yle
Yle News

Demand for peat in energy generation has prompted Finland's state-owned Neova Group (formerly Vapo) to reverse its autumn decision to stop production.

Neova intends to initially restart harvesting energy peat as early as next summer in eastern Finland, which is particularly affected by the uncertainty related to the import of Russian wood. The company has not completely shut down production or decommissioned its harvesting equipment.

Neova has a large number of unused peat production areas where environmental permits are still valid.

Late last year, the company announced that it would stop producing energy peat altogether.

"Customers have now been in active contact with us. Many are concerned about security of supply and delivery [of wood]. This means that in such a fast reversal, peat is a viable solution that is fortunately still available in Finland," says Pasi Rantonen, Neova's director of peat production.

Currently, the greatest demand for energy peat is in eastern Finland, where Neova's customers have used more imported wood from Russia.

UPM suspends wood import from Russia

Forest products sector company UPM announced on Wednesday that it will suspend purchases of wood in and from Russia as well as the operations of its Chudovo plywood mill for the time being.

UPM had previously announced, on 3 March, that it will stop deliveries to Russia.

The suspension, according to the company, will be implemented with due consideration of UPM’s local employees, customers and stakeholders as well as Russian legislation.

The move is in line with a decision by the FSC and PEFC forest certification bodies to exclude wood originating from Russia and Belarus from their certification systems.

Announcing its decision, UPM stated that it continues to provide humanitarian aid and material support in Ukraine in order to help those suffering from the war.

Latest: paketissa on 10 artikkelia