Wood based heat production is a good opportunity for business diversification. Heat energy enterprises can be located either in rural areas or residential areas and can function alongside another occupation or as a full-time job. In Finland, local authorities, communities and businesses have privatised their heat production in recent years through heat energy entrepreneurships.
Lower quality timber, such as small round wood and forest residues form a significant wood fuel resource. If conducted properly, harvesting of small sized trees and collection of residues promotes forestry and multi-use use of forests.
Heat entrepreneurs can take care of both fuel supply and heat production. This way the customer pays for produced heat and can focus on other key activities.
For the entrepreneur, energy entrepreneurship:
- Provides extra income
- Improves forest management
- Improves profitability of forest management work
- Increases efficiency of own harvesting machines
- Increases cooperation between chipping and transportation entrepreneurs
The benefits of wood based heat energy entrepreneurship include environmental benefits and also the steady development trend of heat prices that is projected to continue also in future. This secures a cheap heat price for the customer.
For the customer, energy entrepreneurship:
- Provides an environmentally friendly energy option
- Releases customer’s know-how and capital to main activities
- Increases the security of supply
- Secures steadier development of the heat prices
Heat energy entrepreneurship
stimulates regional and
national economies
Energy production based on heat energy entrepreneurships provides employment in wood fuel supply, in building and maintenance of the heating plants and in equipment supply. Heat energy entrepreneurship may also improve the profitability of farming. Direct and indirect employment impacts are significant in regional and national levels. The replacement of imported fuels with domestic fuels improves also the balance of current accounts and reduces the national economy’s incurring of debts.