But without coal you quickly run out of forest. I mean, England did, and they were coal rich!

Before coal, England used coppicing ( https://en.wikipedia.org/wiki/Coppicing#United_Kingdom ) to quickly regrow the forests used for charcoal for steel smelting.

Your industrial output will be limited, but there's plenty of land and forests grow by themselves.

England ran out of Land not forests. They set aside large tracts of land for growing wood starting in the Middle Ages because having wood was useful both as a construction material and for burning.

Critically, you can move wood long distances so running out locally isn’t an major issue as long as you don’t run out globally.

You can always use peat.