As part of the annual forum of Holzcluster Styria, the thematic table “Material Flows: Raw Material Potentials in the Wood Value Chain” was organized in cooperation with Biobase. The objective was to systematically identify residual material potentials and to highlight by-streams that have so far been unused or solely exploited for energy purposes. Around 45 partners of Holzcluster Styria participated in the forum and contributed their perspectives — including at two additional thematic tables — generating valuable impulses for the enhanced utilization of wood by-products.
Material Flows: Raw Material Potentials in the Wood Value Chain
Many enterprises already utilize their process residues comprehensively, for instance through energetic valorization in the form of pellets or wood chips. Nevertheless, considerable underutilized potentials remain, particularly with bark, hardwood, and logging residues. These materials are frequently valorized with limited added value — often due to the economy of scale — despite containing valuable chemical constituents that could serve as feedstock for new products or applications. With the ongoing structural transformation of forests and the resulting higher share of hardwood species, this challenge is further intensified, as suitable valorization pathways and markets for many of these assortments are still underdeveloped.
- Economic and logistical framework conditions
Existing markets for by-products — particularly in the energy sector — are stable yet highly price-sensitive. This leads to limited incentives for innovation or for cascading, material-based utilization. Short storage periods, transport logistics, and dependencies on industrial offtakers further constrain flexible use of residues. Achieving higher added value therefore requires new business models, the identification of niche markets, and improved coordination across the value chain. - Sustainable utilization of material flows
From a forestry perspective, it was emphasized that not all biogenic residues should be removed from forest ecosystems. Maintaining a balance between ecological functions and material recovery is essential. At the same time, cascading material use — for instance through the development of biochar, biocomposites, or bio-based packaging solutions — offers significant potential for a climate-positive circular bioeconomy. - Innovation and enabling conditions
Innovative approaches are increasingly emerging within the ecosystem of start-ups and R&D initiatives — for example in the fields of bio-based materials, fungal biotechnology, or alternative binders. These developments demonstrate the bioeconomy’s potential as a driver for new value creation pathways. However, a persistent gap exists between research outputs, market maturity, and industrial implementation. Especially small and medium-sized enterprises (SMEs) require rapidly deployable and economically viable solutions, while funding and research frameworks are often designed for long-term horizons.
Key Findings and Conclusions
- Material (non-energetic) utilization of side and residual streams must become economically more attractive to complement energy recovery pathways.
- Cross-sectoral cooperation along the entire value chain — from forestry operations to industry — is essential to enhance transparency in material flows and to leverage synergies.
- Knowledge transfer, communication, and targeted marketing can substantially increase the perceived and market value of by-products.
- Austria possesses significant biogenic raw material potentials but risks losing momentum in innovation and valorization if targeted policy and market impulses are not implemented.
The discussion highlighted that the full raw material potential of forests can only be unlocked through systematic data collection, intersectoral networking, and innovative material valorization of secondary streams. Although it is often argued that no additional intermediary actor is required, it became evident that coordination entities play a crucial role in realizing the full valorization potential — intermediaries that already exist in parts of the market and whose function in aggregating material flows and linking them to potential users should be strategically strengthened. Future bioeconomy strategies should therefore place greater emphasis on material innovation, industrial symbiosis, and market-ready circular business models. Technological advancements — for example, in the extraction of valuable compounds from bark — can open up new valorization pathways but require the above-mentioned aggregation of residual material potentials across multiple stakeholders in the wood value chain, as individual sites often lack sufficient material volumes.