Schedule for Reducing the Use of Peat and the Possibilities of Replacing It with Forest Chips in Energy Production in Finland

Between 2018 and 2020, an average of 15 TWh of energy peat was consumed in Finland. Energy peat is used in 260 boilers in Finland, which produce district heat and heat and steam for industry, as well as electricity as cogeneration (CHP) in connection with district heating and industrial heat production. Peat accounts for 3% - 5% of the energy sources used in Finland, but its importance has been greater in terms of security of supply. With current use in accordance with the 2018-2020 average, the emissions from peat are almost 6 Mt CO₂ per year in Finland, which is 15% of emissions from the energy sector. In this study, the technical limitations related to peat burning, economic limitations related to the availability of biomass, and socio-economic limitations related to the regional economy are reviewed. By 2040, the technical minimum use of peat will fall to 2 TWh. The techno-economical potential may be even lower, but due to socio-economic objectives, peat production will not be completely ceased. The reduction in the minimum share assumes that old peat boilers are replaced with new biomass boilers or are alternatively replaced by other forms of heat production. Based on the biomass reserves, the current use of peat can be completely replaced by forest chips, but regional challenges may occur along the coast and in southern Finland. It is unlikely that the current demand for all peat will be fully replaced by biomass when part of CHP production is replaced by heat production alone and combustion with waste heat sources.