The Value and Profitability of Converting Sawmill Wood By- Products to Paper Production and Energy Generation: The Case of Poland

Analyzing the relationship between production of wood-based products and the pro- duction of paper and its derivatives ever more often attention is paid to complementar-ity of the processes of production, recovery and recycling of key raw materials and finally to their value and profitability of production. In this context, two main trends in converting wood by-products are noticed: paper production and energy generation. Development of market of sawmill by-products constitutes a challenge for wood industry, which requires determination of the most efficient means of utilizing those by- products. One of the crucial criteria of making business decisions is the value of wood by-products. A method of valuation of those sawmill by-products when converted into briquettes, pellet, or energy was presented. This method allows for multilateral analysis of profitability of various means of utilizing wooden by-products, on the example of Poland. Based on comparative analysis, recommendations for wood-based industry were formulated.