Wood-energy supply chain: Italian wood as a pillar of safety and decarbonization

According to AIEL, focusing on woody biomass could reduce Italy's gas imports by over 9 billion cubic meters per year, equivalent to 43% of the gas used for domestic heating. The new strategic document, "Heating Italy without Fossils Thanks to Woody Biomass," proposes increasing thermal energy production from bioenergy to 16.5 Mtoe by 2030 , of which 10.7 Mtoe will come from woody biomass, a figure well above the 7.4 Mtoe envisaged in the National Energy Plan (Pniec). The wood-energy sector comprises 14,000 companies, generates over €4 billion , and employs more than 72,000 people: it is a strategic resource for the national energy transition and the development of the local area.

The expected contribution and the power of the supply chain

AIEL estimates that 16.5 Mtoe of thermal energy could be achieved from bioenergy by 2030, with 10.7 Mtoe coming from woody biomass. These values significantly exceed the 7.4 Mtoe currently envisaged by the Italian National Energy Strategy (Pniec) and include 3.5 Mtoe from sustainable forest management based on a cascade approach and 5 Mtoe from agricultural pruning and biomass outside the forest, which is currently undervalued. Italian forests cover almost 40% of the country's territory, but only 15.3% is actively managed , while wood harvesting varies between 18% and 37% of the annual increase. Investing in the wood-energy supply chain therefore means developing an autonomous energy model, distributing value throughout the region, and focusing on sustainability.

Image source: Qualeenergia.it

Employment, local economy and circularity

The wood-energy supply chain comprises over 14,000 companies, employing 72,000 people and generating a turnover exceeding €4 billion. This production network is widespread across the country, often located in rural and vulnerable areas, where the wood-energy supply chain also has a positive impact on the socioeconomic situation. Italian companies remain key players in Europe in the biomass technology sector: supporting this supply chain means promoting quality employment, maintaining the vitality of local economies, and enhancing Made in Italy products.

Policies required to enable the transition

To realize this potential, AIEL calls for three concrete measures:

1. the establishment of a Permanent Interministerial Round Table between MASE, MIPAAF and the Ministry of Enterprise to coordinate energy, forestry and industrial policies;
2. the recognition of 16.5 Mtoe from biomass in the updated Pniec text;
3. the consolidation of the 10% VAT on pellets and incentives for the technological shift towards low-emission appliances (5-star classes or hybrid heat pumps), especially in the most polluted areas such as the Po Valley.

These interventions aim to strengthen governance, technological quality, and local supply chains, with positive effects on energy efficiency, air quality, and employment.

The picture in brief

The wood-energy supply chain is emerging as a strategic resource for energy security, territorial autonomy, and the decarbonization of heating. With a technical potential of 10.7 Mtoe from woody biomass and a consolidated production network, Italy has the foundation to transform the sector. Those designing renewable heat solutions, public policies, or regional development will find this supply chain a concrete, sustainable, and integrated lever for advancing toward climate goals.