Energy, Estonia, Markets and Companies, Woodwork

“When the new plant in Narva will be completed, competition over paperwood will become more fierce as the new plant in Narva may need a large share of paperwood harvested in Estonia,” said the head of timber marketing department of the State Forest Management Centre Ulvar Kaubi.

He estimated that the increase in timber prices are caused by invigorated exports as well as by heating plants and power plants using renewable energy. Approximately 15% of wood cut in Estonia is currently burned in heat and power plants.

Tõnu Aas, the director of the Narva Power Plants, asserted that competitors’ claims as if their plant has caused the surge in prices are baseless. Competitors of the enterprise are, however, upset that the Government allows wood chips to be burned at Narva at very low efficiency, allowing majority of heat simply be emitted into the atmosphere.

“It is difficult to assess the impact of the use of wood chips on the price of timber – no direct correlation appears,” stated the press spokesman of the Ministry of Economic Affairs and Communications Rasmus Ruuda. “Demand for wood on foreign markets affect prices on the Estonian wood market much more,” he added.