Biomass energy has now surpassed oil to become Sweden's number one source for energy generation, according to Wood Resource Quarterly.

Biomass now generates 32 per cent of all energy in Sweden, causing increased competition for pulpwood, WRQ reports in it latest market update. As a result, increased competition for logs and wood chips between the pulp industry and energy sector has pushed wood fibre prices to new highs in the country.

Pulplog prices in the first quarter of 2010 were almost 20 per cent higher than five years ago and 36 per cent higher than ten years ago. Sweden has a renewable energy target of 50 per cent of total energy by 2020. The country aims to be totally independent of imported fossil fuels for transportation by 2030.

Download:
Forest Products Market Update, Wood Resource Quarterly