Taxing Biomass would financially strain heating customers in small towns.

Pekka Vihervuori highlights that it is challenging to economically generate heat in winter frosts using heat pumps or electric boilers. Varpu Sairinen in Kauppalehti suggests taxing biomass and shifting towards heat pumps and electric boilers for district heat production due to the rising cost of biomass, especially forest wood chips and sawmill industry by-products.

The cost of forest wood and wood pellets in Finland has increased by over 70 percent since the Ukraine war began. This has put strain on heating companies across the country, leading to price hikes for district heating customers. The high cost of fuel has caused housing companies to struggle with energy bills, resulting in missed payments.

The idea of transitioning from biomass to heat pumps and electric boilers raises concerns about the economic viability of heat generation, especially in rural areas where electricity production may be limited. Without the option to burn wood, heating companies may resort to using oil, which poses its own challenges.

There are limited alternatives to burning wood for heat generation in Finland, especially in smaller municipalities. The lack of economic feasibility and limited infrastructure for heat pumps and electric boilers in rural areas complicate the transition away from biomass. Until viable solutions are developed, the reliance on wood for heat generation remains a significant challenge for heating companies.