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Wood Chips Produced by LVM Go to Heat Supply Companies to Provide Heat to Latvian Residents

In preparation for the heating season, companies, by participating in the sales process organized by JSC “Latvia's State Forests” (LVM), can ensure a certain level of stability during the winter period, thus reducing the risk of a lack of raw materials necessary for heat production during the heating season. Customers are already starting to receive additional deliveries of energy chips produced by LVM this year.

 JSC “Rīgas Siltums” has purchased part of the wood chips for this heating season from JSC “Latvia's State Forests”, pointing out that it has thus managed to ensure a reserve of biofuel in time. “Aware that the new heating season will be one of the most challenging in recent years, JSC “Rīgas Siltums” started to prepare for this heating season in time, buying fuel in different volumes already since April, which allows for diversification of suppliers. Our heat supply company purchased part of the wood chips needed for the Zasulauks and Imanta thermal power plants from JSC “Latvia's State Forests” at an auction. We plan to continue the cooperation,” says Raivis Elliņš, Board Member of JSC “Rīgas Siltums”.

Photo: Chip storage heating plant “Imanta”, archive of JSC “Rīgas Siltums”

Currently, LVM supplies all the energy chips it produces only to local wood processing and energy production companies. In 2022/2023, LVM will offer on the market about 800 thousand cubic metres (about 650 000 MWh) of a product suitable for energy production.

“JSC “Rīgas Siltums” has already this year begun to increase the volume of heat production from renewable energy resources, starting work on the construction of five new biofuel heat sources, two of which will start work already this year. Calculations made by specialists show that by producing thermal energy with biofuel in the company's heat sources, up to 100 million euros will remain in the Latvian economy every year, instead of flowing to other countries,” continues Raivis Elliņš.

Responding to the growing demand for wood resources used for heat energy production, LVM started selling additional volume of energy wood chips in June of this year, offering for sale 150 thousand cubic metres of energy wood chips in the volume of 130 000 MWh throughout the territory of Latvia. “It is important that around 80 % of the additional amount of energy wood chips will go directly to heat supply companies, thus reaching the goals set by LVM to provide support and opportunities to purchase wood chips for heat supply. LVM expects that also in the future, an increasing amount of wood chip deliveries will go to heat producers”, says Līga Ozola-Šmite, Executive Director of LVM Sales.

According to the data of the Central Statistical Bureau, Latvia consumed 8.9 million cubic metres of wood chips in 2021, which is 13 % more than the year before.