Wood energy

Wood energy is most competitive when produced as a by-product of the wood processing industry. Wood residues from forests provide possibly the greatest immediate opportunity for bioenergy generation given their availability, relatively low-value and their proximity to forestry operations. Wood residues from mills represent another, more easily accessible, source of residues.

FAO regularly conducts wood energy outlook studies for different regions. The latest study for Europe presents comprehensive scenarios on wood energy development that offers decision-makers from governments and industries information on the potential impacts of their decisions and provides guidance on how to prepare for future challenges  (e.g. the intensive mobilization of wood resources).

In many parts of the world, particularly in rural communities in developing countries, wood from forests remains a very important source of energy for cooking and heating. Wood-based energy is also widely used in commercial applications such as fish drying, tobacco curing and brick baking. Total consumption of woodfuel is still increasing in much of Africa, largely due to population growth. In rural areas of most developing countries, fuelwood is the predominant form of wood energy. Charcoal remains a significant energy source in many African, Asian and Latin American households in urban areas.

Paramount to finding viable and sustainable solutions for energy access in rural and urban settings is a clear understanding of the local impacts of fuelwood collection in forests and from trees outside forests, its role in livelihoods and its impact on forest degradation and deforestation.

The forest product industry: energy user and producer

A paper mill in Indonesia (FAO/P. Johnson)The forest products industry, particularly the pulp and paper industry, is a major consumer of energy. In 2003, energy use by the pulp and paper sector was estimated to be 6 percent of total industrial energy use. This sector is also often the single most important producer of electricity in some countries, with co-products and residues from pulp and paper production generating more than half of national energy needs. In industrialized countries, particularly those with large wood processing industries, modern wood energy is used for both domestic and industrial purposes – often in significant amounts. Integrating energy generation into industrial forest operations is a competitive way of reducing risks, increasing profitability and improving forest management. It also strengthens energy security and contributes to climate change mitigation. It should be a priority area for exploration.

In developing countries, especially in the tropics, opportunities exist for the forest product industry to use forest residues, and mill residues in particular, to generate energy and improve competitiveness. New technologies are improving the economic feasibility of generating energy from wood, especially in heavily forested countries with well-established wood processing industries.

FAO also provides in-depth assessments at the country and regional level on the situation and development of woodfuel supply and consumption. These studies provide a clear picture of the importance of wood-based energy in the forestry and energy sectors, and offer a diagnostic tool that can be used by national, regional and international information systems. Gathering accurate and accessible data about woodfuels is a constant challenge because the vast majority of fuelwood is still produced and consumed locally, used in mainly private households and often traded informally.

Wood energy is a cross-sectoral issue, requiring the engagement and strong communication between many different sectors and ministries. Adequate planning involves bringing together institutions with competencies in energy, forestry, agriculture and rural development. Patterns of woodfuel production and consumption, and their associated social, economic and environmental impacts, are site specific, which makes planning even more complex. Assessing the implications of the current patterns of woodfuel production and use and the sustainable potential of woodfuel resources, particularly within developing countries, requires a holistic view and a in-depth knowledge of the spatial patterns of woodfuel supply and demand to respond to these needs.