Australian timber industry news

Climate change is progressing faster than tree species can adapt or migrate to regions with more suitable climates. Geographic barriers and fragmented habitats caused by land use hinder the natural spread of trees, making passive restoration efforts, those with little or no human involvement, less effective. Source: Timberbiz A new policy brief that SUPERB published in collaboration with our project partner European Forest Institute, explains how active forest restoration combined with assisted migration of more climate-adapted tree species and populations, has the long-term potential to enhance carbon sequestration significantly compared to restoration efforts without assisted migration. Assisted migration means aligning tree species and populations to the climate to which they are adapted. This measure is a significant element of the so-called “Prestoration” approach SUPERB is taking, which stands for a combination of restoration and climate change adaptation of forests. The policy brief also looks at what policymakers can do to effectively implement and potentially refine the EU Nature Restoration Regulation. The authors point out that realistic restoration targets should be set so they can be achieved despite ongoing climate change, and adaptation should also be pro-actively tackled within the Natura 2000 system. With 36 partners in 16 countries, led by the European Forest Institute and co-coordinated by Wageningen Environmental Research, SUPERB aims to restore thousands of hectares of forest landscape across Europe. To implement this, it will link practical and scientific knowledge to be synergistically transformed into action and create an enabling environment for future-oriented forest restoration, including required adaptation measures (prestoration) at different scales. You can download the policy brief here.

Stora Enso is launching a water program in Finland, aiming to improve water quality and enhance water conservation actions in forestry operations. The objective is to find new forest management practices, sharpen the focus on water conservation and water ecosystems, and provide forest owners with water conservation services and support. Source: Timberbiz “Wood production and water protection are not mutually exclusive, and with the new water program, we further explore the ways we can manage them side-by-side. We want to develop our operations and put more emphasis on water habitats in forestry. We gather in-formation and expand our expertise so that we can take even better actions for nature,” says Pekka Kallio-Mannila, Head of Sustainability, Stora Enso wood supply in Finland. Preparations for the water program were started in 2024, and the measures are expected to be launched gradually from January 2025 onward. To take the plans further and get the water program into action, Stora Enso partnered with Luontoa Oy, a leading consulting company in businesses’ nature impact assessments. “We support Stora Enso in raising water protection to a new level. Luontoa’s operations are guided by a strong scientific basis, and we bring this know-how and vision to the water program,” says Inka Musta, CEO of Luontoa. The new water program is part of wider biodiversity actions in Finland, where Stora Enso buys wood from private forest owners. In Sweden, Stora Enso has also water program in place for the company’s own forests, with focus areas such as wetland restoration and enhancing larger water landscapes. Action plan to reinforce environmental performance across forestry operations The new water program is part of Stora Enso’s action plan to improve environmental performance in forestry operations. The goal is to ensure that nature values are considered with smooth processes and compliance with rules, regulations, and Stora Enso values. Following an environmental incident in Hukkajoki in Finland, Stora Enso conducted an internal investigation assisted by an external legal expert. The investigation resulted in selected actions to improve environmental performance in all wood supply operations not only in Finland but also in Sweden and the Baltics. The action plan focuses on the following key areas: Increasing sustainability resources in Finland to support pre-harvest planning in sensitive nature areas. The recruitments are ongoing. Extensive additional trainings organized to own staff, contractors, and subcontractors, related to planning and monitoring of harvesting operations. Special attention and risk mitigation in harvesting operations in sensitive nature are-as include increased supervision and controls as well as leaving a 50-metre buffer zone around habitats of freshwater pearl mussel until more detailed instructions from the authorities are available. Developing Stora Enso’s own and industry-wide IT systems for proper information flow and early access to relevant information. Clarified roles and responsibilities in the harvesting value chain. Investing in freshwater pearl mussel protection as well as launching the new water program.

Suzano, the world’s largest pulp producer, officially inaugurated the world’s largest single-line pulp mill in Ribas do Rio Pardo, Mato Grosso do Sul, Brazil in December. Source: Timberbiz With capacity to produce 2.55 million tonnes of pulp per year, the project is the result of a total investment of R$22.2 billion (~U$4.3 billion) , of which R$15.9 billion (~U$3.1 billion) was allocated to the construction of the mill and R$6.3 billion (~U$1.2 billion) dedicated to areas such as developing outbound logistics and the forestry base. This marks the largest investment in Suzano’s 100-year history, and represents one of the largest private investments in Brazil in recent years. During the ceremony, Brazil’s President Luiz Inácio Lula da Silva emphasized the importance of responsible private investment to the country’s development. “We can only reap what we sow if we plant properly, clean properly, fertilize properly and water properly. This makes a forest grow,” Mr Lula da Silva said. “The Brazilian economy is expected to grow by 3.5% this year, with the potential to reach 4%. It is one of the largest growth rates among all the countries in the world.” Reflecting on Suzano’s ambitious goals for promoting diversity, equity, and inclusion, Mr Lula da Silva emphasized the importance of this agenda in fostering a more equitable society. In Ribas do Rio Pardo, Suzano’s workforce includes 609 women, with 448 working in the forestry sector and 161 in the industrial sector. The construction of the Ribas do Rio Pardo mill was first announced in May 2021. At the peak of the construction, it created more than 10,000 direct jobs, with a total of more than 45,000 people involved throughout its duration. The mill began operations on July 21 of this year and currently employs approximately 3,000 people working across industrial, forestry and logistics roles.

This has been a challenging year for the New Zealand science sector due to a changing landscape and regulatory space. The government review under way to improve the effectiveness and impact of New Zealand’s science sector has created uncertainty, and Scion has been further challenged by the financial position of the government and of some of its industry partners. Source: Timberbiz However, Scion says it remains firmly focused on scientific innovation. Going into 2025, Scion believes the organisation and work are aligned with where New Zealand needs to go and that it has positioned itself well for the future. The organisation says that there have been some high points throughout 2024, as it continued working to create economic value, contribute to positive environmental and social outcomes for the country and mitigate the impacts of climate change. Marine biofuel technology development is one example. Global shipping accounts for 3% of the world’s greenhouse gas emissions and this is expected to rise if action is not taken. Scion’s innovative work on sustainable biofuels offers promising solutions, such as the development of technology that converts waste biomass into biofuel as an alternative to fossil-based marine diesel. Some of Scion’s scientists have received prestigious funding for their work. Dr Bing Song was awarded a Marsden Fund Fast-Start Grant for a three-year project looking at the fundamentals of electrocatalysis (chemical reactions activated through electrical currents), which could lay the foundations for transforming bio-waste into high-value chemicals. Scion has continued to collaborate with other organisations such as Jooules, Cetogenix and Upflow to better enable strategic science, research and development. It has also collaborated with national and international universities and institutes, the forestry sector and iwi on the five-year Forest Flows research program, which quantified tree water use and water storage and release of entire forested catchments and aimed to create a forestry hydrology model for New Zealand to accurately predict tree water use, water storage and release for entire catchments and provide data on changes in water quality over time. The program ended in September and improved understanding of how forests respond to extreme weather, which will in turn help authorities mitigate negative effects. Scion is committed to supporting Māori in forestry through impactful science and technology. It also focused on education and engagement, as shown by bilingual initiative E Heke E Heka app, which launched in June and aims to increase rangatahi and community awareness and understanding of myrtle rust. Scion is now focused on revenue, efficiency and leaning into the Science System Advisory Group review. As it looks ahead to the next year, Scion is well prepared to respond to and help shape the significant changes on the horizon for the industry and is excited about the existing and planned research and the opportunities that lie ahead. In the meantime, the Scion Board wishes everyone a Merry Christmas and an enjoyable holiday break.

A simple picture of what has been described as one of the “biggest parasites in the world” has showcased a native Australian tree in a “spectacular” bloom of golden orange flowers – highlighting the hidden uniqueness found in the Australian outback. Source: Yahoo Stephen Blakeney, 70, spotted the ‘Western Australian Christmas tree’ while driving through the aptly named town of Treeton, Western Australia, last Wednesday. Speaking to Yahoo News, he said he knew the tree was a parasite but had no idea what an effective killer it was until he looked it up later, after being captivated by the sight of the blooming tree. “I knew that it was a parasite when I took the photo,” he said. “My grandfather on my mother’s side was a very keen botanist, and he actually introduced me to the tree when I was quite young, but I didn’t actually know that it was quite so aggressive.” Blakeney explained the majestic appearance of the WA Christmas Tree, also known as nuytsia floribunda, demanded admiration in the landscape and he would often “look out for it” on his travels. “I’ve passed it over many years, and I’ve driven up and down that road lots of times. I always look out for it at this time of year,” he said. The tree species, part of the mistletoe family, got its name because it blooms every December. It’s also known as Moodja tree, and only grows up to seven metres in height. It can effectively “hunt prey” up to 110 metres away by using “sharp blades” in its root system to pierce other vegetation’s roots. The blades are so sharp they’re capable of drawing blood, according to Australian Geographic. When the root of a WA Christmas Tree meets a root of its prey, it forms a collar of tissue around it before a blade, hydraulically operated, forms inside it and slices the prey into bits. “The blades have been known to sever electrical cables and telephone lines in their search for nutrients,” Blakeney said. “The vegetation around [the tree in Treeton] has all been cleared anyway, but it still seems to survive.” Its appetite can also mislead the tree, with the species known to even attack its own root system by mistake. “It doesn’t discriminate, any form of plant is potential prey,” he said. The trees are found throughout southwest Australia and bloom dramatically in summer with golden flowers that hold cultural significance to Noongar people of the region.

The Guulabaa Place of Koala tourism precinct is now officially open in the Cowarra State Forest, following a $6.1 million investment from the Australian and NSW Government’s Bushfire Local Economic Recovery Fund. Source: Timberbiz The word Guulabaa means “Place of Koala” in local Gathang, the language of the Biripi people of the Mid North Coast. The newly opened project allows visitors to enjoy the Cowarra State Forest, and new connected facilities, including: Australia’s world first wild Koala breeding facility Bunyah Local Aboriginal Land Council’s café Bunyah Bilbay Aboriginal art gallery The Big Koala, part of Hello Koalas Sculpture Trail WildNets treetop playground, which has already attracted over 90,000 customers in its fi rst two years. Funding also delivered forest viewing decks, signage, site fencing, construction of toilet facilities, sealed road access, and water and electricity connection. Forestry Corporation NSW has led the way maximising the public and conservation benefits of Cowarra State Forest to deliver a thriving tourism and koala conservation, precinct and showcasing the qualities of renewable timber production. Timbers for the project have been generously supplied for this project by Coffs Harbour Hardwoods, Big River Timbers, Hurford Hardwood, Weathertex, Ironwood Australia, Hayden Timbers, Pentarch Forestry and Machin’s Sawmill. The project represents a partnership in forest management, bringing together local organisations committed to showcasing Aboriginal heritage and cultural practices, forest ecology and koala conservation, forest timber products, plus art and design for the visiting public.

Scion scientists looking to establish New Zealand’s largest mixed-species Experimental Forest have sought inspiration from overseas. Source: Timberbiz Puruki Experimental Forest, south of Rotorua, is a 35-hectare Pinus radiata forest. It was originally established in 1968 as part of a United Nations land use study. With the second rotation approaching harvest, Scion is looking to build on its legacy to create an exciting integrated research platform that underpins the development of new forest systems capable of thriving under climate change. In March, Scion received support for four exchange projects through a Joint Linkage Call Agreement between INRAE — France’s National Research Institute for Agriculture, Food and Environment and Science New Zealand. Among them was an exchange between Scion’s Designing Forests – Mahi Tahi Whaihua Portfolio Lead Yvette Dickinson and INRAE Principal Scientist Hervé Jactel aimed at fostering long-term collaboration on diverse forest plantations. Mr Jactel had been visiting Scion after Dickinson’s trip to France in October and his expertise will help inform the future design of trials at Puruki. His visit is the latest in a long-lasting co-operation between Scion and INRAE which also opens the door to larger collaborative projects. Mr Jactel has a background in forest ecology and entomology. While working on the largest plantation forest in Europe, a 1-million-hectare pure stand, he started exploring the effect of tree species diversity on resilience to pests and diseases. This led to joining TreeDivNet, an international network of tree diversity experiments, and Mr Jactel developed France’s first experiment comparing pure and mixed stands in planted forests. The work expanded to include other aspects of forest function such as productivity, carbon sequestration, and biodiversity conservation. He’s also looked at how biotic and abiotic disturbances are combining to increase damage to forest ecosystems. His visit to Scion covered many areas including field visits, and conversations around current and proposed projects related to mixed forests, pests, diseases and biosecurity. The most significant project Scion is drawing on Mr Jactel’s expertise for is Puruki Experimental Forest where plans for the forest’s third rotation are being discussed, including the choice of species and the design of integrated research programs. Scion’s Dr Yvette Dickinson’s visit to France included trips to some long-standing tree diversity experiments to gain knowledge to inform the design of Puruki. She says she was able to learn about their experiences mixing species and how to design and manage a tree diversity experiment. Converting Puruki to a mixed species Experimental Forest also presents the opportunity to be the first New Zealand forest join TreeDivNet, an international network of collaborative experiments. Joining the network will allow access to shared data and knowledge. Mr Jactel says mixed stands have many advantages. “Mix species forests are truly more resistant to pests and diseases. They are also associ-ated with a higher level of biodiversity and in most cases, they are also more productive. They are also sequestering more carbon, both in soil and above ground,” he says. Managing forests for resilience, sustainability and carbon sequestration all align with the Designing Forests – Mahi Tahi Whaihua portfolio Ms Dickinson leads. “We’re also interested in it from an overyielding perspective. While mixing species can sometimes improve productivity, it doesn’t always happen. Globally we’re trying to understand why it happens in some places and not others,” she says. “To be able to demonstrate sustainability as a whole, we need to understand all of these different aspects. Puruki is an opportunity to build economics and social sciences alongside the environmental and technological systems.” The hilly nature of the site could also allow for study into the benefits of tree diversity on erosion, Mr Jactel says. Tim Barnard who is leading the Puruki work, says the proposed integration of different fields of science on the one site will be novel and building on the legacy of science at Puruki. “When Puruki was set up it was driven by the United Nations UNESCO program which was concerned about water quality around the world at the time,” he said. “People had the vision to create that forest 50 years ago and now we’re picking up that legacy to create new forest systems that are going to endure over the next 50 years. “It’s not only about diversity, it’s about the need for diversity in the face of climate change.”

As 2024 comes to a close, the Forest and Wood Products Association (FWPA) is reflecting on the progress made this year and sharing its vision for the opportunities ahead in 2025. Source: Timberbiz The forest and wood products industry has faced significant challenges, with housing starts declining and economic pressures impacting the entire sector. Despite these conditions, we have seen remarkable innovation, as members and industry continue to find new ways to manage costs and adapt their operations. FWPA has remained committed to supporting its members, ensuring its work aligns with the needs of the industry. FWPA continues to focus on increased transparency, accountability, and responsiveness. A full organisational restructure now empowers expert Heads of Departments, and its 2023-2028 Strategic Plan includes measurable goals that demonstrate clear accountability. This year also saw the launch of the new FWPA website to make research findings more accessible, and the team moved into a mass timber building at T3 Collingwood, a hub designed to showcase the innovation in our industry and serve FWPA’s members. Looking forward, FWPA will drive initiatives to boost consumer demand and improve public understanding of forestry’s and wood product’s role in carbon sequestration and storage. Programs like WoodSolutions, ForestLearning and a reimagined The Ultimate Renewable campaign will continue educating builders, students and the broader community. As we enter 2025, FWPA will remain focused on creating value, driving growth, and delivering results for the entire industry. The FWPA team would like to wish everyone a safe and happy holiday season. Please note that the office will be closed from Monday 23 December and will re-open again on Monday 6 January.

There won’t be too many people unhappy that we’re about to rule a line under this year, especially those in commodity trades that have ‘survived to ‘25’. Billy Joel could rewrite ‘We didn’t start the fire’, base it solely on 2024 and still not run out of topics. Having said that, 2025 looks like it’s ready to get going with a fist full of ammo as well. Those of us that had hoped for an early Christmas present in the form of strengthening export prices were disappointed with slight reductions of around NZ$2/m3 into December giving A grade prices of around NZ$125/m3 in Southern North Island ports. There’s no real surprises there though as underlying demand remains subdued with both the construction sector issues in China and the potential Trump tariffs weighing heavily on buyers’ minds. Chinese log inventory has dropped slightly and currently sits around 2.67 million m3 with uplift in the early 60,000m3/day range. Some exporters pushed November CFR prices to US$127-128/m3 in the hope that there was some sustained demand and supply imbalance, however this has been met with folded arms and a frown by the buyers who are now less interested in setting a price. This has resulted in a number of vessels sailing without a letter of credit (LC), which is never a good bargaining position and conforms perfectly to supply and demand economics 101. On the bright side, currency markets have started pricing in the Trump effect with the NZ:US firmly in the $0.58 zone and shipping rates have eased into the very low US$30s. Both of these movements have mostly offset the drop in CFR, for now. Chinese New Year holidays begin in late January, and we will probably see a longer than usual break by Chinese sawmillers which may deal us a difficult hand pricewise in February and March. Beijing continues to try and pull all sorts of levers to stabilize their economy with the latest being a change in their monetary policy from ‘prudent’ to ‘moderately loose’. This is the first reduction in 14 years and although many would argue that their economy has been in ‘more than moderately loose’ mode for the past decade, this does signal the desire to boost domestic spending amidst an economy wracked with deflationary pressures. This is also likely a realisation that exports will be weak once ‘the Don’ pulls on his tariff robes and gets down to the business of repatriating manufacturing back into the US. With reducing export revenue, Beijing only really has domestic consumption to buoy the economy. A ‘moderately loose’ monetary policy probably won’t do much to increase demand in the construction sector, which seems to be impervious to stimulus at this point. Beijing has thrown the doctor at the property sector recently and the market still remains in a very precarious position. Goldman Sachs estimates that there is potential, without further stimulus, for Chinese property values to drop a further 20-25% before stabilizing in late 2025. Some measures to boost the market are being implemented at regional level with both Beijing and Shanghai announcing tax breaks in an effort to encourage house purchases. This has fallen largely flat with property stocks hardly noticing a change. Back home, newly stamped consents don’t read much better. To the end of October, issued consents were down 16% on the previous year and the number of new dwellings dropped to 6.3 per 1000 residents from 7.6 over the same period. A number of sawmillers have commented that the past 12 months have been the hardest period they have seen with subdued demand and soft pricing. There is some expectation of better times however with reducing interest rates and lower inflation leading to increased activity. There is a general consensus that there are a reasonable number of issued consents that have been put on ice waiting for lower interest rates and building costs. We may see a quick uptick in activity if those thresholds are met. Big news in the carbon space is the government confirming its election promise of limiting farm to forest conversions by introducing a 15,000ha ETS registration cap for exotic forests on LUC 6 land and allowing only up to 25% of LUC 1-6 land being entered into the ETS. No matter which way you look at it, this will make our ability to achieve our national carbon sequestration goals incredibly difficult if not impossible. The general view is that this a blunt instrument which is very light on detail as to how it will be implemented. While Federated Farmers and Beef and Lamb will be high fiving each other, there will likely be many farmers coming to the realisation that this legislation has effectively wiped hundreds of millions, if not billions off New Zealand farm values. Something to ponder if you were struggling with succession planning and looking to monetise your farm investment – which is now worth less that it was a few weeks ago. Next year will be interesting as there’s not much on the China horizon that’s different to this year, but let’s worry about that in January. So, let’s raise a glass to 2025 and bid it adieu in the same fashion as we do to drunk Uncle Dave after Christmas dinner. Wishing you all a Merry Christmas, I hope you get your fill of eggnog, and that Santa gives you something more than socks. Marcus Musson, Forest360 Director

Kengo Kuma has designed two festive trees that are bringing joy to visitors of the lobbies of The Tokyo EDITION in Ginza and in Toranomon, Japan, two luxury hotels in Tokyo. Source: Timberbiz Komorebi – sunlight through the leaves and Kigumi – woven woods are eco-friendly trees that were made by stacking small wooden pieces together. Each uses multiple tree species and after they have served their time as Christmas trees, they will by repurposed into furniture. The furniture will be tables designed by Kengo Kuma and crafted by Karimoku, these will be available to buy online via a silent auction. A portion of the proceeds will be donated to the Make-A-Wish foundation in Japan.

As we near the end of 2024, it’s time to reflect on the insightful predictions made by ResourceWise’s CEO, Pete Stewart, and Chief Revenue Officer, Matt Elhardt, for the forest products industry in 2024. Source: Resource Wise In 2023, inventory destocking played a significant role in shaping the sector. Destocking occurred as supply chains normalized in a post-COVID world. About halfway through the year, inventory levels across various segments normalized, with uncoated and coated freesheet supplies reduced to approximately 30-40 days, down significantly from the elevated levels seen during the pandemic. This shift reflected concerted efforts by mills and suppliers to align production with current demand, supported by strategic mill downtime to manage oversupply. Similarly, both softwood and hardwood pulp inventories fell over the year. In the case of hardwood, days of inventory fell from about 60 days to about 40. Since destocking appears as “lower demand” for producers, the result was lower operating rates in many sectors. This was true even in the backdrop of more normalized end demand. As inventories returned to normal, demand began to increase in some sectors, specifically those where supply shuts brought supply into balance. For example, US containerboard producers implemented several price increases in 2024, with additional increases announced as of this writing. Forestry investments in the US South have seen notable activity in 2024, signalling the region’s continued significance in timberland markets. For example, Manulife finalized two major property sales in Alabama as part of a three-property offering. The Clairmont Springs tract, encompassing 33,700 acres, was sold to Southern Pine Plantations for $77.5 million. The Magnolia property, totalling 13,400 acres, was acquired by Weyerhaeuser for $46 million. Other investments included: New Forests expanded its US portfolio with the acquisition of a 90,791-acre forestry estate in Oklahoma from Rayonier, marking its first investment in the US South. New Forests said the acquired asset, located near large sawmills and pulp and paper mills provides a foundation for timber sales. Weyerhaeuser announced it is investing $500 million to build a new facility in south Arkansas. Once completed, the facility will process about 10 million cubic feet of wood products. PotlatchDeltic continues its momentum with the announcement of a $31 million acquisition of 16,000 acres in Arkansas, alongside its pending sale of 34,000 acres in Arkansas and Alabama to Forest Investment Associates for $58 million. Collectively, these transactions highlight the growing scale of forestry activity in the South, attracting both domestic and international investors. Such investments reinforce the region’s reputation as a key hub for forestry operations while underscoring its strategic importance for sustainable timber production and long-term portfolio growth. According to SilvaStat360, total US housing starts from January to October reached 1.35 million, aligning with what was projected earlier in the year. However, 2024 saw mixed trends in housing starts, influenced by economic factors like higher interest rates. The increased rates affected both builders’ strategies and buyers’ purchasing power. While the pace of new construction slowed slightly compared to 2023, a growing focus on energy-efficient homes highlighted shifting buyer preferences. The new home market also expanded as an alternative to the limited supply of existing homes, with builders offering incentives such as mortgage rate buydowns to attract buyers. Despite ongoing challenges like rising costs and zoning restrictions, the demand for sustainable and modern homes remained a key driver in shaping the construction industry in 2024. Investment in bio-economy production at pulp mills is emerging as an increasingly prominent trend in the industry. The change presents a number of opportunities for both producers and the environment. This shift towards bio-economy production is driven by the desire to reduce reliance on non-renewable resources and mitigate the environmental impact of traditional manufacturing processes. By utilizing sustainable and renewable feedstock, pulp producers can not only contribute to a greener future but also tap into new revenue streams to enhance their market competitiveness. Investing in bio-economy production presents economic advantages as well. By leveraging technological advancements and process optimization, pulp producers can improve efficiency, reduce costs, and enhance overall profitability. Furthermore, government incentives and regulations that support sustainable practices further boost the business case for bio-economy investment. In 2024, we saw an uptick in investments in bio-economy production in the industry. For example, Veolia, in partnership with Metsä Fibre, launched a €50 million biorefinery project at the Äänekoski pulp mill in Finland. This facility produces CO2-neutral biomethanol derived from pulp mill byproducts like black liquor. Set to begin operations in 2024, the plant will produce 12,000 tons of biomethanol annually, preventing up to 30,000 tons of CO2 emissions. This approach aligns with global decarbonization goals and could be replicated in about 80% of pulp mills worldwide. Nextgreen Global Bhd is also focusing on advancing innovative solutions to redefine sustainability in manufacturing. A key pillar of this initiative is the fertilizer segment, operated by its wholly owned subsidiary Nextgreen Fertilizer Sdn Bhd (NGF). The firm is also producing liquid fertilizer by transforming black liquor into a cutting-edge liquid fertilizer product. This innovative process, spearheaded by the R&D team, is projected to yield 30,000 TPY of liquid fertilizer. In the US, several pulp mills announced projects related to carbon capture, hoping to take advantage of market demand for lower-carbon products.  For instance, the SLB and Aker Carbon Capture Joint Venture secured a contract from its partner CO2028 Solutions for front-end engineering and design (FEED) of a large-scale carbon capture plant at a pulp and paper mill on the US Gulf Coast. The project aims to remove 800,000 TPY of carbon emissions while also delivering verifiable and affordable carbon dioxide removals (CDRs). As the industry continues to recognize the potential of bio-economy production, it offers an exciting avenue for pulp producers to directly address environmental concerns. Doing so will also unlock new revenue streams, drive innovation, and contribute to a more sustainable future. The changes are especially important as new low-carbon fuel mandates, most notably sustainable aviation fuel, begin implementing in 2025. In 2024, the pulp and paper industry experienced a notable recovery following a challenging […]

Finland’s Government granted Metsähallitus permission to sell four parcels of land in the municipalities of Muhos and Kajaani to Google for future expansions of its cloud and data centre infrastructure in Finland. Source: Timberbiz The total value of the transaction is more than EUR 27 million, with the combined areas covering approximately 1400 hectares. The areas have mostly been in commercial forestry use. Google has been operating data centres in Finland since 2011, creating several thousands of direct and indirect jobs during construction. The Google data centre campus in Hamina employs approximately 400 people full-time. The impact of the potential expansion on employment is estimated to be significant, both directly and indirectly. The growing economic activity is anticipated to have a positive effect on other services offered locally as well as the housing market. “I’m very pleased about the announcement of Google. This deal forms a foundation for any potential future investments and sends a clear message that Finland is an attractive and safe country for investments. The goal of the reforms introduced by the Government is for Finland to become an even more sought-after destination for investments and the hard work is taking us closer to that target,” Finland’s Prime Minister Petteri Orpo said. One of the business activities of Metsähallitus is the commercial utilisation of state assets assigned to it. For this purpose, Metsähallitus sells and rents land and water areas. However, land sales of this size do not take place very often in Finland. Metsähallitus is a state-owned enterprise that produces environmental services for a diverse customer base, ranging from private individuals to major companies. It manages and protects state-owned land and water areas and reconciles the different goals of owners, customers, and other stakeholders. “For more than a decade, Finland has been home for our Google data centre in Hamina, and we’re dedicated to supporting the country’s growing digital ambitions. Even before a final investment decision is made for the development of the sites in Kajaani and Muhos, we are working in close consultation with local and national stakeholders on a plan that supports the long-term health of the community’s economy and natural resources. This is the first step in a long process,” said Antti Järvinen, Country Director Google Finland. Google will make a decision on the use of the land areas based on the framework conditions of the land use planning and permit processes. “Metsähallitus promotes green growth by providing sites for green transition projects. This requires balancing economic, environmental, and social sustainability perspectives, as well as extensive cooperation with various stakeholders. “The land sale for Google’s potential da-ta center investment is an excellent example of how state-owned areas can be used as en-gines for green growth, while creating jobs and positive regional impacts. We warmly wel-come Google to expand its operations in Finland and look forward to further collaboration in developing these areas,” said Juha S Niemelä, Director General of Metsähallitus.

A recent Spring Clean Weekend has seen enthusiastic participation from the community, resulting in the proper disposal of numerous items, including tyres, mattresses, and couches. OneFortyOne, in collaboration with the City of Mount Gambier, sponsored the community-driven event, held on 23 and 24 November. Source: Timberbiz Environmental Manager Belinda Williamson expressed her gratitude for the community’s support. “The Spring Clean Weekend was a fantastic trial initiative to try and address the persistent issue of illegal dumping in our forests,” Ms Williamson said. “The community’s response was incredible, and we managed to collect a significant amount of waste, hopefully diverting some of this rubbish from ending up in our forests.” Over two days, the Waste Transfer Station on Eucalypt Drive was bustling with activity as residents took advantage of the opportunity to dispose of items such as car and 4WD tyres, mattresses, armchairs, and lounges sponsored by OneFortyOne. “The final tallies are in and over the weekend we collected 433 mattresses, 147 couches, 240 armchairs and around 2000 tyres,” Ms Williamson said. ReUse Market & Waste Transfer Station Coordinator Rebecca Clark said the Spring Clean initiative was a tremendous success benefiting community members who took part. “Our dedicated Waste Transfer Station team and the OneFortyOne Team worked together tirelessly to ensure everything ran smoothly,” Ms Clark said. The Waste Transfer Station team played a pivotal role in managing and organising traffic management and the waste material. “Together they made the disposal process efficient, organised, and accessible for all evident in their ability to serve 550 cars,” Ms Clark said. Ms Williamson emphasised the importance of community involvement. “This event was a testament to what we can achieve when we come together as a community to do the right thing. “While this is just a start, it is a positive step towards reducing illegal dumping and protecting our beautiful forests for everyone. “We’re looking forward to measuring the real success of the event, and tracking any changes in the amount of rubbish dumped in the forests surrounding Mount Gambier over the coming months.”

Government support for boosting wood processing as outlined in NZ’s second emissions reduction (ERP2) plan is a step in the right direction says the Wood Processors and Manufacturers Association. Source: Timberbiz “Scientific evidence is clear that wood processing can reduce gross emissions by producing high-value products to replace emission intensive ones such as steel and concrete,” said WPMA Chief Executive, Mark Ross. “Having this fact specified within ERP2 highlights that the government now acknowledges the need to implement policies and initiatives targeted at improving the investment environment for high-value wood processing. “Countries are in a race to seize the benefits, and the opportunities wood provides in the transition to a net-zero world. “Countries are using industrial policies to position their companies in rapidly forming global value chains. Initiatives outlined within ERP2 are a start, but there is a lot more that can be done to create an environment that supports our domestic wood processing market.” One initiative, for example, to achieve this boost that appears to have been overlooked in ERP2 is the MBIE procurement policy that is aimed at reducing carbon emissions in building and construction. Yet as a comparison with the wool sector, there is now a minister for wool, with wool procurement being a coalition policy. “As ‘environmental goods’ wool and wood share the same sustainable qualities. Hence, the wood processing and manufacturing industry calls for an equivalent government procurement policy for wood as with wool.” Mr Ross said. “The potential for New Zealand wood products to reduce the carbon footprint of the built environment and drive the growth of a sustainable and prosperous wood industry is immense. In the future we expect that wood solutions will become more mainstream, and their demand will increase. “The low-grade logs we currently export could be used to produce high-value wood products, such as GluLam, remanufactured timber, and laminated veneer lumber.” With an increase in wood processing the biproducts of wood, such as adhesives, paints, polymers, advanced packaging, refined carbon, textiles and plastics will also be able to be developed. This will benefit the economy but will also support future climate change goals in a sustainable manner. Other notable points for the wood products industry within the ERP2 include: progression of the investigation of providing NZ ETS credits for wood processors based on the embedded carbon captured in longer-life timber products, improving the resource consenting framework for wood processing to make it easier to establish new facilities and to re-consent existing ones, continuation of the wood processing growth fund, increasing biomass availability, and establishment of a wood bioenergy taskforce. More details can be found here https://consult.environment.govt.nz/climate/second-emissions-reduction-plan/

New Zealand’s Government has confirmed a 50% reduction to the annual charge for forest owners participating in the forestry Emissions Trading Scheme (ETS), Forestry Minister Todd McClay announced. Source: Timberbiz “This decision delivers on the Government’s promise to rebuild confidence in the forestry sector and support its role in achieving New Zealand’s exporting and emissions targets,” Mr McClay said. The decision follows consultation on amendments to the Climate Change (Forestry) Regulations 2022, which proposed to reduce the annual charge from NZ$30.25 per hectare per year to NZ$14.90. “We have been working with the sector to ensure we get the settings right and restore confidence to the over 4,300 forestry participants in the ETS registry,” Mr McClay said. “It’s now clear that the previous Labour government made a number of decisions that drove up the cost of this Registry and they expected the forestry sector to pay for their mistakes. “The new charge ensures that forestry participants still pay their fair share of the costs to administer the forestry ETS registry, while not bearing the brunt of Labour’s previous decisions,” Mr McClay said. “The work to bring costs back in line continues and we have started a wider review of cost recovery settings to be completed in 2026. “The forestry sector Reference Group was established to increase transparency across the costs of the forestry ETS registry.” The new annual charge will enter into force in January 2025, with invoicing beginning in February 2025. The amendment to regulations will be notified in the New Zealand Gazette.

Forestry Australia has welcomed a new study published in Australian Forestry peer-reviewed journal by the former chief research scientist at the CSIRO, Dr John Raison. The paper, titled A review of the impacts of sustainable harvesting, non-harvest management and wildfire on net carbon emissions from Australian native forests, investigates the science behind claims that timber harvesting increases greenhouse gas emissions. Source: Timberbiz Dr Bill Jackson, Acting President of Forestry Australia said Australian and international studies highlight the potential to lower carbon emissions by producing and using wood products from sustainably managed forests, particularly as substitutes for high-emission building materials. “This paper demonstrates the complexity in accounting for the impacts of changes to forest management on carbon stocks and greenhouse gas emissions from Australian native forests,” Dr Jackson said. “Assessing carbon impacts of forest management needs to consider the full life cycle of forest management, wood production, processing, use and disposal or reuse. “The outcome depends heavily on assumptions about initial conditions, harvest intensity, timber recovery, lifetime of forest products, the impacts of wildfire and the time frame of the analysis.” The paper points out that it is important to get these assumptions right, otherwise policy makers can be ill-informed about the effects of their decisions on carbon emissions. Dr Jackson said policy makers also need to consider the short, and long-term, impacts on carbon stocks of decisions to reduce or cease native forest harvesting. This includes the impacts of wildfire and reduced professional forest and fire management capacity in agencies responsible for timber production. “This paper has implications for development of new emission reduction methods under Australia’s ACCU scheme,” Dr Jackson said. “Appropriate, landscape scale analysis using scientifically sound sampling and surveys of carbon stocks and dynamics are required to inform these methods. “The best opportunities are likely to lie in approaches that improve forest management to better integrate conservation, restoration and sustainable production and use of forest products,” Dr Jackson said. The report can be found at https://www.tandfonline.com/doi/full/10.1080/00049158.2024.2433815#abstract  

Forest & Wood Products Australia will open a Call for Proposals for its Forestry Research Program on Monday 6 January 2025. This program supports research, development, and extension activities that deliver measurable benefits to Australia’s commercial forest growers. Source: Timberbiz FWPA is seeking innovative proposals aligned with its 2023-2028 Strategic Plan, focusing on key RD&E priorities that reduce risk, loss and cost, and increase productivity. Specific industry priorities are identified in its grower RD&E investment plans: Climate Change Damage Agents Forest Operations & Supply Chain Impact of Fire Native Forest Silviculture Plantation Silviculture & Nutrition Tree Breeding & Genetic Improvement Proposals addressing areas of research outside of the priority topics may be considered if there is demonstrated strong support from the forest-growing industry. The FWPA Forestry Research program uses a two-stage process for applications: Submission of Concept Notes Submission of Full Project Proposals Successful projects are expected to commence in the 2025/26 financial year. Key Dates for Applicants Applications Open: Monday, 6 January 2025 Concept Notes Due: Monday, 3 February 2025 Full Proposals Due: Monday, 7 April 2025 FWPA strongly encourages applicants to engage early with industry partners to ensure meaningful collaboration and alignment with industry needs. For more information visit the Forestry Research Program webpage or contact our R&D team here.

The Forestry Corporation has released its Annual Report 2023-24 and, in the overview, outlined many of the challenges and achievements for that period. Source: Timberbiz The outline stated that the year ended 30 June 2024 (FY24) was a challenging one for Forestry Corporation of NSW. Sales of softwood timber fell short of targets for a second consecutive year due to a persistent downturn in the structural lumber market. As softwood sawlogs are primarily used in the construction of new homes, the decline in housing starts over recent years has contributed to this shortfall. While demand for hardwood timber, which is not tied to new housing construction, remained strong, production and revenue were well below expectations due to a range of complex external factors including weather, regulatory changes and legal challenges. During the year, the Government introduced several regulatory changes, including new protections for koala hubs within the proposed Great Koala National Park assessment area and additional safeguards for southern greater gliders. Identifying and protecting the habitat of threatened and endangered species is a fundamental tenet of responsible forest management and Forestry Corporation is committed to implementing the new Government regulations. However, in the context of this annual financial report, it must be acknowledged that these regulatory changes reduced timber production and revenue for the year and increased operational costs. During the year Forestry Corporation invested approximately $92 million in expanding its plantation estate, acquiring 6,500 hectares of planted and plantable land in softwood regions, which will increase the softwood timber resource available to the community for future generations. In May it issued the first ever investigation permits for potential renewable energy in softwood timber plantations. You can download the annual report here.

One of the finest pines growing in NSW State forests has been selected to take pride of place in the foyer of Government House as a decorated Christmas tree. Source: Timberbiz It’s a Christmas tradition that for decades has brought festive season cheer to visitors to Sydney’s heritage-listed ‘Castle by the Sea.’ Sourced from Penrose State Forest, the radiata pine has been beautifully decorated in time for the regal Christmas reception of Her Excellency the Honourable Margaret Beazley AC KC, Governor of New South Wales. The five-metre-high pine was transported from the Southern Highlands to Sydney after a rigorous selection process by Forestry Corporation to find a perfectly shaped Christmas tree. Forestry Corporation has also supplied a 3.5-metre pine to feature as the Christmas showcase at nearby Vaucluse House. “It’s always a great pleasure for staff to find the perfect Christmas trees for Government House and Vaucluse House,” Forestry Corporation’s Moss Vale Area Supervisor Tom Bagnell said. “These pines will bring Christmas cheer to many, but they also represent the contribution that our pine estates and the NSW timber industry make to building new homes across Australia.” Each year pine plantations in NSW State forests generate enough timber to build 40,000 new homes – that’s the equivalent of the homes in Orange, Bathurst and Oberon. “Radiata pine harvested from our State Forest plantations is used in construction and landscaping and the everyday pulp and paper products that the state relies upon,” Mr Bagnell said. Every tree that is sustainably harvested in State forests is replanted. Over the past five years, Forestry Corporation has raised 50-million seedlings in nurseries that have been hand planted NSW State Forests to ensure long-term timber supplies for future generations. Radiata pine (Pinus radiata) has been grown in the local Moss Vale area for over a century. The plantation from where these pines were selected was replanted in 2018 and those compartments will reach maturity as structural timber at an age class of 25 to 30 years. Penrose State Forest was one of the earliest pine plantations established in NSW in 1920. Forestry Corporation has grown pine on the site ever since with extensions to the plantation area in the 1960s and 1970s.  

Australian door manufacture Specialty Doors has launched two new product-based businesses Specialty Commercial and Specialty Acoustics. Specialty Commercial is focused on timber profiling and custom componentry, while Specialty Acoustics offers a range of acoustic products. Director Marcus Bastiaan said the new product businesses were an answer to sustained enquiry and a chance to expand The Specialty Groups product range. “The new companies give us the chance to broaden our existing product range. We have found a growing demand from existing customers for quality timber componentry and a renewed focus on acoustic performance from the Australian and New Zealand building industries.” Specialty Commercial is focused on production and supply to primarily the Queensland and New South Wales market. The company is currently operating from Brisbane and supplies resellers to order. Marcus Bastiaan said the company will embark on an instore range of timber componentry products in the New Year. “This is the first time we have offered resellers stock lines. First to market will be a range of entry door handles made from recycled Australian Hardwoods.” The company’s focus on sustainable sourced and recycled timber has been an opportunity to showcase Australia’s world class forestry standards. Marcus Bastiaan believes the construction industry should be championing native forestry products, and that it’s up to manufacturers like Specialty Commercial to offer products that compete with imported species. “We have the best hardwood in our backyard, and we intend to showcase more of it. Too often when it comes to componentry the building industry gets pigeonholed into using imported species like Pine, Beech and American Oak. Our new range is price competitive and made from Australian timbers like Blackbutt, Tasmanian Oak and Spotted Gum.” Specialty Acoustics has an entirely different mission. The company is focused on providing quality acoustic products to meet growing demand in the construction industry. Through a technical and installation partnership with Acoustic Doors Australia the companies provide specification, manufacturer and installation services. Marcus Bastiaan said the business will give builders the technical and onsite support they need. “Acoustic products are highly engineered and require careful installation. The new company’s product and service offering gives site managers peace of mind and offers accountability to commercial construction companies.” Specialty Commercial and Specialty Acoustics will officially launch on Australia Day 2025. Alongside Specialty Doors, the three businesses sit within The Specialty Group.