U.S. increased 35.7% y-o-y pellet exports to UK in first quarter of 2019 to 1.1 million tones with exports value was up 35.3% to $143 million, according to USDA data. The share of UK in U.S. pellet exports expanded 7 pp to 71.3%. Total pellet exports from U.S. soared 22.3% to 5.12 million m3 in the first quarter.
Pellet exports from U.S. to Denmark decreased 15.7% to 198.7 thousand tones with exports value was down 13.1% to $31.2 million and that to Belgium fell 25.2% to 93.3 thousand tones with export value declined 16% to $9 million. The share of Denmark decreased 6 pp to 13.3% and that of Belgium slided 4 pp to 6.2%.
U.S. pellet exports to Netherlands jumped 107% to 60.3 thousand tones and that to Italy soared 317.5% to 46.4 thousand tones.
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Jartek delivered to Donelley Sawmillers Ltd first wood thermal modification chamber and thermal oil boiler plant in 2017. During year 2018 this plant with one 35 cubic metres chamber was not able to satisfy demand of thermally modified Radiata Pine and company decided to invest to second similar chamber.
Jartek is leading supplier in Finnish sawmilling technology. Also family owned company is specialized in log handling- and lumber handling lines, drying kilns, thermowood kilns and high speed planer lines.
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Pinnacle Renewable Energy’s (“Pinnacle”) 1Q 2019 revenue totaled $89.6 million, an increase of 26.2% compared to $71 million for the 1Q 2018.
Pinnacle reported a net loss of $6.3 million in 1Q 2019, compared to $12.8 million in Q1 2018. Net profit in 1Q 2019 was $0.2 million. Comprehensive loss for 1Q 2019 was $6.8 million. Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) totaled $8.3 million in 1Q 2019, compared to $12 million in Q1 2018.
“Our strong 1Q revenue growth reflects early contributions from our new production facilities and the continued market demand,” said Rob McCurdy, CEO of Pinnacle.
Pinnacle is a rapidly growing industrial wood pellet manufacturer and distributor and the third largest producer in the world. The Company produces sustainable fuel for renewable electricity generation in the form of industrial wood pellets.
Photo: Rob McCurdy, CEO of Pinnacle.
The Eagle Valley Clean Energy biomass facility is a Gypsum, Colorado-based power plant which generates electricity from the combustion of waste wood. The plant sells 100% of its generated energy under a long- term contract with Holy Cross Energy, a not-for-profit Rural Electric Cooperative providing electricity to over 55,000 members.
Additionally, the transaction definitively concludes several legal disputes that had arisen between the plant and third parties and returns the plant into good standing with all contract counterparties, a critical feature of the transaction.
Greenbacker Renewable Energy Company LLC is a publicly registered, non-traded limited liability company that owns a diversified portfolio of income-producing renewable energy power plants, energy efficiency projects and other sustainable investments.
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Saratoga Forest Management in Saratoga, Wyoming, suspends production starting May 20 and resuming on June 10, reports Random Lengths.
“This suspension is to complete necessary maintenance projects in the sawmill and planer,” said Gary Ervin, SFM Managing Partner.
Normal shipping hours will continue during this downtime as long as there is inventory to ship.
Saratoga Forest Management applies modern forest management techniques for the maintenance of healthy forests and for the removal of dead and dying trees to speed tree stand regeneration and return forests to a healthy state.
Ontario government is investing $5.5 million over five years in Ben Hokum & Son Ltd sawmill, helping the lumber producer protect over 100 jobs, create at least five new jobs and purchase new technologies to optimize its business. These investments are expected to result in a significant jump in domestic sales as well as exports.
“Ben Hokum & Son Ltd is an Ontario success story and I am pleased to see how this business supports local employment and the economy,” said John Yakabuski, Minister of Natural Resources and Forestry. “When an independent sawmill is succeeding, so do the harvesters it buys from and the manufacturers it sells by-products to. This was not just an investment in Ben Hokum & Son Ltd, but an investment in this community and the forestry sector as a whole.”
“This is truly an investment in our people, to provide more opportunities for our youth, and all those in rural eastern Ontario who are involved in the forestry industry in one way or another,” said Dean Felhaber, President of Ben Hokum & Son Ltd.
Ben Hokum & Son Ltd was established in 1956 and is now one of eastern Ontario’s largest lumber producers, and the largest pine producer in the province.
Main Photo: Dean Felhaber, President of Ben Hokum & Son Ltd
Photo above: John Yakabuski, Ontairio Minister of Natural Resources and Forestry
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Bergs Timber AB has signed a letter of intent with AB Fogelfors Bruk regarding a potential acquisition of all shares in Fågelfors Hyvleri AB.
The transaction is subject to the signing of a share purchase agreement (“SPA”), conducting a due diligence to the satisfaction of Bergs Timber, financing and board decision. The company will make an announcement once the SPA is signed and closing of the transaction is planned to 30 June 2019. The letter of intent grants Bergs Timber exclusivity for the period up until 30 June 2019.
The indicative purchase price for the shares in Fågelfrors Hyvleri is SEK 48 million ($5 million). SEK 30 million ($3.1 million) is intended to be paid in cash and SEK 18 million ($1.9 million) in newly issued class B shares in Bergs Timber AB.
Fågelfors Hyvleri is a wood pellet producer with an annual capacity of approx. 90,000 tons of pellets and approx. 20,000 tons of heating logs. In addition, Fågelfors Hyvleri operates a planing mill with an annual capacity of approx. 30,000 cubic meters.
“Fågelfors Hyvleri suits very well in our strategy to increase further processing. It is also well located in the area around our Swedish saw mills,” says Peter Nilsson, CEO of Bergs Timber.
Bergs Timber produces and sells sawn and further processed wood products. It operates its production facilities in Sweden, Estonia and Latvia. The Group also includes its own port and logistics operations in England.
Photo: Peter Nilsson, CEO of Bergs Timber
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Hawke’s Bay’s flourishing forestry industry will be celebrated this year with the announcement of a new awards event being held in November.
Matt Croft, chair of the Hawke’s Bay Forestry Group who are driving the awards, says it is a great move for an industry that is one of the biggest contributors to the Bay. Export levels have doubled in the past 24 months, going from 1.6 million cubic metres in 2018 to over 2.2 million cubic metres now with growth expected to reach 3 million by 2021.
With 133,000 hectares of plantation radiata pine in the region and 48,000 hectares at a harvestable age, the industry with its associated services account for around $200 million of the region’s GDP.
“This is a chance to put our industry in public view and acknowledge the great work being done by those who work in forestry,” says Mr Croft. “In the past five years the industry has developed hugely, with a lot of investment in training, machinery and upskilling. This is a far more professional workforce than it was a decade or so ago and we want to recognise that and the contractors and crews who are putting in the time and money to make it what it is today.”
Mr Croft said it was exciting for all to be launching the new awards. “I really like the idea of the workers getting the recognition and for others to see them as the professionals they are,” he said.
There are 14 different categories with the overall Skilled Professional of the Year found from six of those covering forestry, roading, harvesting, distribution, wood processing and tree faller excellence. Women, trainees and the environment are also celebrated in the awards, with categories for each.
Mr Croft was hopeful the awards would highlight just how much was on offer for people keen to work in the industry. It should help people better appreciate the huge array of career opportunities within forestry. “The possibilities are endless,” he says, “with attractive options from tree planting to truck driving, harvesting, mapping, satellite photography, computer modelling, management, export, sales, genetics and more. “There is something for most- everyone in the forestry industry, and, as the awards will show, people on the inside of our industry are loving it.”
Nominations open on 1 August with judging in October and the Awards function in late November.
Photo: Mathew Croft
Rien Visser, Director of Forest Engineering at UC acknowledged Hunter’s influence saying, “He will be missed, as our students have greatly benefited from Hunters’ knowledge and enthusiasm for all things harvesting and he was well known to many loggers, especially those running cable logging systems.”
“He has carried out many applied research projects around the country as part of the FGR research programme. For example, his knowledge resulted in his running of several cable logging and planning workshops. More recently Hunter provided productivity coaching for Rayonier and Ernslaw One crews,” said Rien.
While his departure will be a great loss for the UC School of Forestry, its an excellent opportunity for Hunter and his wife Katie. They’re heading back to where they both studied, have extended family where he started his career, in the magnificent redwood forests of northern California.
Hunter will be able to make a valuable contribution not only to teaching the next generation of foresters there, but helping their loggers as they start to expand into winch-assist operations. This is already providing some collaboration opportunities between the two regions renowned for cable logging and working on steep slopes.
“We thank Hunter for his major contribution to the both the School of Forestry and our NZ industry and wish him and Katie all the best for the future.”
Lumber prices in North America continued their decline from the 3Q/18 with another quarter of substantial reductions. Average lumber prices for southern yellow pine were down 12% quarter-over-quarter in the 3Q/18, which was then followed by a reduction of 17% in the 4Q/18.
With practically no change in log or chip prices, gross margins, and the EBIDTAs, have plunged in the Southern states, after having reach a 13-year high in the 2Q/18, as reported in the latest issue of the WRQ. However, the region’s sawmill margins were still well above their ten-year average margin. With lumber prices continuing to decline faster than log prices in early 2019, profit margins have continued to slide in the 1Q/19.
Sawmills in British Columbia have also seen the prices for lumber in the US market come down substantially during the second half of 2018. Despite the weaker lumber market, sawlog prices still increased from the 3Q/18 to the 4Q/18 because of tighter supply and a rise in hauling costs. Sawmills saw their gross margins plunge to unprofitable levels and many companies decided to take market-related downtime in late 2018 and early 2019.
In Europe and Russia, market prices for lumber were much less volatile than in North America, with only small price adjustments from the 4Q/17 to the 4Q/18. Log costs were unchanged in Finland during most of the year, while the costs for spruce sawlogs in Sweden jumped in late 2018. Gross margins for sawmills in both countries are still at healthy levels and, in the 4Q/18, were close to the highest they have been in four years.
Sawmills in Siberia continue to expand exports to China with fairly stable lumber export prices the past three years. However, in the 4Q/18, lumber prices fell to their lowest level in almost two years. This occurred at the same time as sawlog costs remained unchanged from the previous quarter, resulting in reduced gross margins for many lumber producers at the end of 2018. Sawmill margins for 2018 were slightly below their five-year averages, but still higher than the average for the past 14 years.
Source: Wood Resources International LLC, www.WoodPrices.com
In August 2018 Caterpillar Inc. announced plans to sell its forestry business to Weiler Forestry Inc. Caterpillar and Weiler have now entered into a definitive agreement to sell Cat’s purpose-built forestry business. The deal will close in Q3 2019.
In November last year, Gough Cat announced that they’d entered into an agreement with United States company Weiler Incorporated to distribute its forestry product line in New Zealand.
“We remain committed to supporting our forestry customers and the forestry industry,” said Ramon Younessi, Caterpillar Construction Industries Group President, in a statement.
“Caterpillar and our dealers have an established relationship with Weiler that spans many years. The process of developing this binding agreement has further enhanced our confidence in Weiler’s ability to deliver purpose-built forestry machines, while Caterpillar continues to offer forestry excavators and other core equipment, allowing the dealers to provide a complete product portfolio and the optimal solution for forestry customers.”
Among the core equipment Caterpillar will continue providing is forestry excavators designed for log loading, processing and other forestry applications. As part of the agreement, Weiler will acquire Cat’s purpose-built forestry product line, including wheel skidders, track feller bunchers, wheel feller bunchers and knuckleboom loaders. The company will also own Cat’s operations in LaGrange, Ga., Auburn, Ala., and Smithfield, N.C.
Once the deal is closed, Weiler Forestry will design and produce purpose-built forestry products, which will be available through the Cat dealer network.
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PotlatchDeltic Corporation reported net income of $6.6 million, or $0.10 per diluted share, on revenues of $181.7 million for the 1Q ended March 31, 2019. Excluding after-tax special items consisting of a gain on the sale of the legacy Deltic MDF facility and a loss on the extinguishment of debt, adjusted net income was $5.3 million, or $0.08 per diluted share for the 1Q 2019.
“Our 1Q results reflect seasonally lower activity and challenging operating conditions,” said Mike Covey, chairman and CEO. “We continue to expect improvement in lumber prices as the building season gets underway in earnest. Meanwhile, our balance sheet remains strong and provides the flexibility to drive shareholder value,” stated Mr. Covey.
PotlatchDeltic is a leading Real Estate Investment Trust (REIT) that owns nearly 1.9 million acres of timberlands in Alabama, Arkansas, Idaho, Louisiana, Minnesota and Mississippi. Through its taxable REIT subsidiary, the company also operates six sawmills, an industrial-grade plywood mill, a residential and commercial real estate development business and a rural timberland sales program.
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Stora Enso has joined the New Plastics Economy Global Commitment to eliminate plastic waste and pollution at the source. The Global Commitment and its vision for a circular economy for plastic is led by the Ellen MacArthur Foundation, in collaboration with UN Environment.
For Stora Enso, signing the commitment is another step to combat the global problem of plastic pollution by providing renewable alternatives. Stora Enso will contribute by cooperating with customers and suppliers to develop circular and low carbon solutions to replace plastic packaging.
The materials are based on wood fibres from sustainably managed forests and plantations. This commitment is an example of the increasing demand for alternatives to plastic, also demonstrated by the EU’s recent policy on single-use plastics.
The Global Commitment aims to create “a new normal” for plastic packaging. Commitments and targets will be reviewed every 18 months, and become increasingly ambitious over the coming years. Businesses that sign the commitment will publish annual data on their progress to help drive momentum and ensure transparency.
Stora Enso is a leading global provider of renewable solutions in packaging, biomaterials, wooden constructions and paper.
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Linck to present a new profiler unit VPM 350 at LIGNA 2019. The family of VPM profiler units was extended by an additional machine model.
In addition to the high end machine VPM450, the smaller VPM 350 was developed to be used for cant heights of up to 350 mm and cutting depths of up to 75 mm.
The smaller adjustment paths and chip removal volumes made it possible to simplify drive and cutting tool design. There is only one drive motor per side whose power is distributed to the two profiler heads of one side according to requirement. The reduced adjustment paths allowed a shortening of the profiler head drive shaft with positive effect on the machine width and thus to keep to the dimensions of the VPF profiler unit. As a result, the VPM 350 corresponds to the VPF machine in size and processing possibilities and is perfectly suited to be installed in existing saw lines.
Downsizing the machine dimensions allowed for a further reduction of the masses to be moved, thus resulting in smaller gaps between cants for operating modes with sawing optimization.
And with the new VPM 350, you also benefit from the special features of the VPM profiler unit series, namely sawn lumber surfaces without tear-outs, the possibility of diagonal profiling by using tilting tool axes and the possibility of curve profiling by pivoting cutting tools.
Linck is the largest European manufacturer of sawmill equipment.
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Looking back – Report 2009 http://forestportal.efi.int/content/view/169/15/
Land areas around the world totalling more than the size of Canada have been identified as having potential to be restored to good quality, healthy forests, a new study has found.
As the global effort to help tackle climate change by reversing the alarming loss of forests steps up, scientists using sophisticated satellite mapping have produced a world map identifying areas in which more than a billion hectares of former forest land and degraded forest land has restoration potential. That is about 6% of the total land area of the planet, and restoring forests to some of these lands could be achieved without prejudicing other vital land uses, such as food production. The Global Partnership on Forest Landscape Restoration (GPFLR) also says that the needs and rights of indigenous peoples and others who depend on forests must be respected when considering restoration projects. GPFLR will now work with individual countries and local communities to deliver restoration where communities benefit.
Preliminary analysis indicates that by 2030 the restoration of degraded forest lands could make the same contribution to the reduction of greenhouse gases as that which could be expected from avoided deforestation (70 Gt of CO2 emissions), and perhaps as much as twice that amount. The GPFLR will work with countries over the next year to clarify and refine these figures on a country-by-country basis.
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Wood is an established and versatile construction material, used to build everything from high-rises and airports to apartment buildings. It also, however, is not immune to catching fire. A new coating could help keep that from happening, and it’s actually made from wood.
Developed in Finland by scientists at the VTT Technical Research Centre, the solution incorporates nanocellulose, which in turn consists of microscopic cellulose fibres obtained from wood pulp.
Manufactured utilising a patented technology known as HefCel (High- Consistency Enzymatic Fibrillation of Cellulose) the gel-like nanocellulose reportedly has 10 times the solids content of similar materials. As a result, when applied to wood – which nanocellulose naturally adheres to – it’s very good at forming an airtight barrier that keeps oxygen from reaching that wood’s surface. This means that the wood is significantly less likely to combust when exposed to a flame.
It is thought that the coating could be particularly useful when mixed with a pigment, then applied to wood in the form of a sprayed- or brushed-on paint or stain.
Initial batches of the HefCel-based coating have reportedly performed well in lab tests, and an energy-efficient production process has been developed. The scientists are now working on scaling up that process, making it simpler yet at the same time even more efficient. They’re also currently looking for an industry partner to help commercialise the technology.
Photo: HefCel-coated wood (left) and untreated wood (right) after 30 seconds flame test. (Photo: VTT)
While both New Zealand and Russia are at the top of the leaderboard for softwood log imports into China, as the accompanying table shows, Russia tops the leaderboard for sawnwood imports.
That is largely driven by export tariffs on logs by Russian government which incentivises sawing Russian logs on their side of their border with China.
Source: MIS ITTO Report
Log export markets – This week WoodWeek.com has received it’s monthly update from the Champion Freight team. In short China is up again, all other key Asian log markets are down.
The chart shows total log export values to China year-on-year to the end of March were up 20 percent year-on-year contributing to overall log exports growing 16 percent across all markets.
To the end of March, China shipments month-on-month are up 39 percent and overall log exports up 21 percent.
Over 22 million tons of wood pellets were shipped globally in 2018, up 21% from 2017. The US, Canada, Vietnam, Latvia and Russia, accounted for 69% of global exports in 2018, reports the North American Wood Fiber Review
Global trade of wood pellets jumped more than 21% year-over-year in 2018 when a new record of 22.3 million tons was shipped, according to the North American Wood Fiber Review. The five major pellet exporting countries (the US, Canada, Vietnam, Latvia, and Russia) have remained the top exporters for over five years. They accounted for about 69% of the world’s export volume in 2018.
Following the “big five” in 2018 were Estonia, Austria, Malaysia, Denmark and Germany, in descending order. Pellet production in the US South continued at record pace in, driven by a European move away from fossil fuels and towards renewable energy. From the 1Q/18 to the 4Q/18, exports from the region were up almost 50%, further manifesting US’s role as the world’s largest producer and exporter of wood pellets, reports the NAWFR. The United States ships practically all its pellets to three countries: the United Kingdom, Belgium and Denmark. Only a small share of the pellet production in the US is consumed domestically.
Demand for imported pellets in Japan and South Korea continued a three-year growth trend in the 4Q/18 when import volumes reached new record highs of 339,000 tons and 993,000 tons, respectively. In 2018, the total annual import volume for the two countries was just over 4.5 million tons, more than doubling in just two years. With the increased trade, prices for pellets landed in both Japan and South Korea have moved upward over the past three years.
In the 4Q/18, the price for pellets imported to Japan averaged $182/ton, up almost six percent from the 4Q/17. Pellet import prices to South Korea, which were nominally lower than those in Japan, rose almost 25 percent during the same period. The lower average cost for South Korea can be explained by that country’s reliance on pellets from low-cost countries in nearby Vietnam and Malaysia. This is unlike Japan, whose major pellet supplier is British Columbia, a more expensive producer of high-quality FSC and SFI certified pellets.
About the North American Wood Fiber Review: The NAWFR has tracked wood fiber markets in the US and Canada for over 30 years and it is the only publication that includes prices for sawlogs, pulpwood, wood chips and biomass in North America. The 36-page quarterly report includes wood market updates for 15 regions on the continent in addition to the latest export statistics for sawlogs, lumber, wood pellets and wood chips. To read more about our subscription services, please go to www.WoodPrices.com
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A company is now producing drones designed to fire seed missiles into fields, aiming to help restore the world’s forests. According to National Geographic, between 1990 and 2016, the world lost 502,000 square miles of forest due to a combination of humans cutting them down, and natural factors including wildfires.
With deforestation affecting all life on Earth, it needs addressing urgently, and Biocarbon Engineering believe they can help. The company have designed drones which, in September, planted seeds in a field just south of Yangon, Myanmar. These seeds have now grown into mangrove saplings, about 20 inches tall, and now Biocarbon Engineering are looking to ‘replicate this success’ elsewhere.
The company’s cofounder, Irina Fedorenko told Fast Company “We now have a case confirmed of what species we can plant and in what conditions. We are now ready to scale up our planting and replicate this success”.
Biocarbon Engineering also used drones to plant both trees and grasses at abandoned mines in Australia, as well as other locations over the world. Since the project started in 2012, more than six million trees have been planted by non-profit organisation Worldview Impact, which has recently been working with Biocarbon Engineering.
Many of these six million seeds were planted by hand which takes time, so Worldview Impact hopes to use more drones in the future now they’ve proven to be successful. It’s estimated two operators working with 10 drones can plant an amazing 400,000 trees a day.
After flying over the areas, the drones then map it, while collecting data about the soil condition and topography to determine the best locations to plant seeds. They then fire biodegradable pods into the ground, which are filled with a germinated seed and the nutrients it needs.
The project in Myanmar is all about community development and enabling people to care for trees, providing them with jobs, and making environmental restoration in a way that it’s profitable for people.
The forest didn’t vanish by itself — the forest was cut down by local people. We train local people to be drone pilots, and they want that. They want to be in IT. They want to process data, they want to fly drones, they want to do agroforestry, they want to do regenerative agriculture, they want to create vertical farms, they want to do all this cool stuff. It’s not the ambition to be a seedling planter for $1 a day.
So, the drone project isn’t just helping the forests themselves, but the local communities too by helping provide new economic opportunities. The project will hopefully have a huge impact with climate change, as researchers recently calculated there’s enough room on the planet to plant 1.2 trillion trees, enough to suck up more carbon each year than humans emit. Amazing!
Source: unilad.co.ukBiodegradable Seedpods
Providing a scalable wetland solution
Wetland restoration has the potential to sequester carbon at rapid rates. The BCE pod is fully biodegradable, designed to ensure seed penetration to minimise tidal impact on germination
- Designed to biodegrade in moist soils
- Can carry multiple seed types and sizes
- Scalable for challenging planting conditions
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