Kemera Supports and the Profitability of Small- Diameter Energy Wood Harvesting from Young Stands in Finland
2017
Petty, Aaron | Kärhä, Kalle
In order to speed up the production of small-sized thinning woodchips in young stands, the Finnish State provides financial incentives for theproduction of small-diameter wood chips. Financial support is providedaccording to the Sustainable Silviculture Foundation Law (Kemera).Currently (Summer 2008), the Kemera support provides subsidies for smallsizedwood chips in early thinnings 7–10 €/MWh maximum in typicalharvesting conditions (whole-tree chip removal 40–70 m3/ha, and averagestem size of removal 10–40 dm3). Metsäteho Oy undertook a study on thetotal production costs of small-sized thinning wood chips with and withoutthe Kemera supports. The results gave a clear indication that small-sizedwood chips cannot currently be produced without the Kemera supports fromyoung stands with typical harvesting conditions. If operating without theKemera supports, the average stem size of whole trees harvested must begreater than 80 dm3, at the current price level of small-diameter wood chipsin order for the harvesting of small-diameter energy wood from youngstands to be economically profitable in Finland.
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