Finnish forest industry boosted by nuclear power permits

The Finnish forest industry has welcomed the government’s decision to grant permits for two new nuclear power plants.

The Finnish Forest Industries Federation (FFIF) said it was important to ensure a diverse foundation for electricity production to supply increasing needs, while UPM said the decision opened up the possibility to increase the share of low-emission and cost efficient electricity.

UPM is committed to increase its low-emission energy production and wants to do it in a versatile way,” said UPM. “In addition to nuclear power, hydropower and renewable forest energy are very important energy sources for us.”

FFIF said bioenergy production must only be developed in a way that does not endanger the supply of raw material for the industry.

“A steady supply of raw material for the industry has to be safeguarded during any follow-up preparation of subsidy decisions that affect the energy use of wood – as the government has promised,” it said.

“Taxpayer money must not be used to steer processable wood into combustion.”

FFIF says looming state budget negotiations provided the opportunity to look at ways for rectifying shortcomings in national energy taxation.

Energy taxes in Finland are currently higher than in competitor countries and threaten to increase by £80m annually.