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Forestry companies look to biofuels

Forestry companies in Europe and the US are increasingly looking to invest in converting wood residues to biofuels.

The decision to pursue biofuels production in the forestry industry has been attributed to rising electricity costs, according to Reuters.

The news agency also states that the eventual target of the venture is for forestry companies not only to make themselves self-sufficient energy-wise, but also to expand into the biofuels business itself.

Jussi Pesonen, chief executive of paper maker UPM-Kymmene, told Reuters: "We wouldn't be there if we didn't see good profits out of that kind of business.

"Bioenergy is well integrated into the paper and pulp mills, where you can combine biomass coming from forests and mass production."

UPM is one of the pioneers of using biofuels in the forestry industry, with its self-sufficient paper plants in Finland, and its global operations running at 70 per cent.

Biofuels are mostly produced from food crops such as wheat, maize and sugar cane, which had led to concerns that their development is exacerbating the world food crisis.