Wood chips are produced from the chipping process of wood trunks, logs or as a by-product from sawmill.

The chips are used as a feedstock to create products in many markets including biomass, pulp, paper, mdf and feedstock for biofuels. Total demand in the pulp and paper and mdf markets is estimated at around 420mn tonnes a year.

It continues to grow as an energy fuel and alternative to wood pellets due to the lower cost per gigajoule, if sourced correctly.

Scandinavia has long been an advocate of wood chips for energy in their combined heat and power units and district heating systems and it is now becoming viewed by others across Europe and Asia as a commodity that can be sourced and transported sustainably.