Baltfor develops biofuel in Latvia

Sveaskog's subsidiary in Latvia, SIA Sveaskog Baltfor, is developing its biofuel handling process.

Baltfor has only previously bought timber, pulpwood and biofuel at the roadside, or through it being delivered to the company's terminal. Now they are starting there own production and have, over the past year, also invested in their own equipment.

Development work support

Sveaskog in Sweden has, through its long experience of biofuel, been able to contribute to this development. Among other things, Bengt Karlsson, biofuel production developer and Roger Johansson, biofuel coordinator have visited Baltfor to assist in the process.  

"It's reassuring to see that the personnel at Baltfor are very competent and show a lot of interest, and that they have the right approach with consideration for the conditions," says Bengt Karlsson.

High proportion of broadleaf

Conditions are not the same in Latvia as in Sweden. In Latvia forestry is marked by small objects, soft ground and a high proportion of broadleaf trees (40 per cent). Consequently, the equipment employed is on a slightly smaller scale than that used by Sveaskog in Sweden.

"The conditions are advantageous for Baltfor but also present some challenges. They are new to biofuel production, and there is room for improvement regarding, for example, handling of tops and branches, but the good cooperation bodes well for the future," says Bengt Karlsson.

Guntars Zvejsalnieks, CEO for Baltfor, agrees:

"Sveaskog is very knowledgeable when it comes to biofuel handling, even from an international perspective. We have much to gain through developing our production and marketing together," he says.

Looking for customers abroad

The first thing is to find customers abroad in order to establish a steady export flow. The local market is essentially undeveloped, and since it largely comprises of district heating plants, it is strongly affected by the seasons: almost no demand in summer and huge demand in winter. Just now, in the summer, all delivery is to Baltfor's own terminal at the harbour in Riga.

"It is important that we find solutions to be able to take advantage of each others strengths, Sveaskog and Baltfor. We have to find customers in Denmark, Germany and other Baltic states, not least in Sweden - customers that are interested in import volumes. This poses a joint challenge," says Roger Johansson.