ABSTRACT

This thesis deals with the opportunities and challenges of harvesting energy wood in the South Karelia region.

The study was done by interviewing the representatives of the organizations operating in the region and using written material. In addition the author has been involved in an energy wood project, through which the topic and the material for the thesis were acquired.

This thesis deals with the following topics: what the image of forest chips is in the area, especially energy wood, how to develop the image of forest chips and the availability of energy wood in the area.

Furthermore, the thesis studies what the problems associated with purchasing energy wood and how to logistics are and how to minimize problems. It is also studies what the effect of state aid on the use of energy wood is in the South Karelia region.

The material for answering the study questions was gathered from representatives of the organizations participating in the study, through e-mail questionnaires, with both telephone and onsite interviews. This way more extensive answers were received concerning study topics.

The situation in the South Karelia region is challenging because of the proximity of Russia and the low-cost wood chips in Russia and in the vast forest industry. There may be changes in the situation through the power plant situation.