Australian timber industry news

In early October, EOS attended the 9th FOREST EUROPE Ministerial Conference which was held to make decisions to strengthen future cooperation on forests in Europe and share the latest findings and developments in Sustainable Forest Management (SFM) across the pan-European region. Source: Timberbiz The event was organised in the framework of FOREST EUROPE and more than 150 participants from 33 signatory countries, two observer countries and 23 observer organisations were registered for this meeting. This 9th Ministerial Conference concluded with the signature of the Bonn Ministerial Decision and Declaration. With the signature of 35 countries and the full support of more than 20 observer organizations, FOREST EUROPE announced that the Bonn Ministerial Decision and the Bonn Ministerial Declaration are officially signed and submitted. These ministerial documents represent the continuation of the policy process to strengthen Sustainable Forest Management across pan-Europe. The Bonn Ministerial Declaration emphasizes the central role of FOREST EUROPE in defining and promoting this form of management, the relevance of its principles in a changing social and environmental context, and the need to cooperate and adapt to emerging issues form part of this document. The comprehensive documents will be available after the conference. The Bonn Ministerial Decision lays the foundation for establishing a coordinated pan-European Forest Risk Facility. After the event EOS (jointly with CEI-Bois) said that woodworking industries play a significant role in contributing to sustainable forest management through various practices that promote the responsible use of forest resources while ensuring the health and productivity of forests for future generations. By providing jobs and supporting local communities, especially in rural and forested regions, the woodworking industry also promotes sustainable livelihoods. Most of the woodworking industries participate in certification programs such as the Forest Stewardship Council (FSC) or the Program for the Endorsement of Forest Certification (PEFC). These programs set high standards for responsible forest management, ensuring that timber is harvested in a way that preserves biodiversity, protects ecosystems, and maintains forest health, while aiming to ensure the long-term growth of forests. Contrary to many misperceptions, harvesting a renewable resource like wood is good for forests. It ensures they are well looked after, help them to adapt to the climate of the future, and increases their value to society. Growing trees sequester much more CO2 than mature trees, which provide the optimal climate benefits when those mature trees are harvested and that stored carbon locked away for many years in wood products, such as those used in construction. Such sustainable forest management is vital particularly at a time when climate change leaves unmanaged forests at the mercy of increasingly unpredictable and disruptive weather events. These are the reasons why the wood industry calls for a management of forests that balances the benefits forests offer by providing economic value, habitats for wildlife to thrive and recreational spaces for people to enjoy. Well-managed forests are resilient and can therefore last forever. In the face of increasing global warming, which requires urgent and realistic measures, the woodworking industries are adding to the climate change mitigation potential of forests by prolonging the storage of carbon in wooden products. This keeps CO2 out of the atmosphere at a time when this matters the most. Additionally, wood products replace fossil-intensive products, further benefiting the climate. Through their renewable wood-based products, the woodworking industries are also key players in the ever-growing circular bioeconomy, which is an economic approach covering multiple sectors and industries, and which will be essential for Europe’s decarbonisation and competitiveness necessities. Sustainable forest management cannot ignore local realities. It is of paramount importance that decisions on forest management are made at local level in coordination with forest owners, local timber industry representatives, as well as forest managers. Forest owners and woodworking industries share an interest in managing forests sustainably and providing wood to the woodworking industries. For forest owners, timber sales are the main source of income. At the same time, the woodworking industries cannot exist without wood. And those wood products are vital to enabling the EU’s green transition for both the carbon storage and emissions reduction reasons that I’ve mentioned. For these key reasons, a reliable, predictable, and appropriate wood supply is essential for the wood industries as it forms the foundational raw material upon which the entire sector depends. A stable wood supply allows industries to optimise production, ensure employment, and make smart investments e.g. in new machinery and techniques to optimize the use of available wood, increasing logs yield, reducing waste and improving overall efficiency. A reliable supply chain also helps businesses compete in a global market characterised by an increasingly distorted competition. Delays or interruptions in wood availability can cause companies to lose contracts or miss market opportunities. An unstable and inappropriate supply of wood makes prices volatile with negative effects across the value chain. The European wood industry urges the FOREST EUROPE signatories to include an impact assessment on wood availability prior to taking any decisions on forest management and to involve the local industries in the decision-making process.

California unveiled first-of-their-kind dashboards that will help Californians track the state’s wildfire prevention work. Along with these new tools, state officials announced that 700,000 acres of land were treated for wildfire resilience in 2023, and that prescribed fire more than doubled between 2021 and 2023. Source: Timberbiz For the first time, all fuels management projects are being tracked in one place, on one map, delivering valuable information for project planning and wildfire response. “Everything we do to protect California from wildfires is connected, and nowhere else has as many tools to show the full picture while improving land management and supporting firefighters. We’re embracing the technology and best practices that will help us fight wildfires, and making sure Californians see the tireless work in their communities,” California Governor Gavin Newsom said. The updated Interagency Treatment Dashboard, led by the Governor’s Wildfire and Forest Resilience Task Force, now covers data from 2021 to 2023, showing the acres of completed wildfire resilience (or “treatments”) work. The dashboard combines data from federal, state, tribal, local, and private entities, creating a comprehensive hub for wildfire prevention information. CAL FIRE also launched the Fuel Treatment Effectiveness Dashboard, which tracks how wildfire prevention projects have helped shield communities and landscapes from wildfires. Utilizing real-time data, this tool allows officials to measure how fuel treatments have impacted fire behaviour, evacuation routes, and firefighting efforts during recent fires. In 2023, 700,000 acres were treated to help protect against wildfires, with many protected acres receiving multiple treatments such as thinning, prescribed fire, or other practices to improve forest health and community resilience. The Task Force is tracking both “activity acres” (more than 1,000,000), which reflect the level of effort conducted through various state, federal, and private programs and “footprint acres” (nearly 700,000) which show the total geographic area treated in a calendar year. The 2023 data shows a significant increase in acres treated since 2021, largely due to a significant expansion of prescribed fire treatments, which more than doubled since 2021. The increase in pace and scale of wildfire resilience projects has been led by the Governor’s Wildfire and Forest Resilience Task Force, and its work to implement the Governor’s Wildfire and Forest Resilience Action Plan. The Dashboard is part of the strategy to connect the various statewide entities committed to this monumental task. Investing in wildfire resilience. Governor Newsom and the legislature maintained US$2.6 billion in funding over seven years, in addition to new investments of US$200 million per year going forward, for healthy forest and fire prevention programs, including prescribed fire and other fuel reduction projects. More boots on the ground than ever before. The administration is implementing shorter workweeks for state firefighters to prioritize firefighter wellbeing, while  adding 2,400 additional state firefighters to CAL FIRE’s ranks over the next five years. Expanding the world’s largest aerial firefighting fleet. Governor Newsom has overseen the expansion of California’s aerial firefighting fleet, including the addition of more than 16 helicopters with several equipped for night operations, expanded five helitack bases, and assumed ownership of seven C-130 air tankers, making it the largest fleet of its kind globally. The state also adds to its world-leading air attack capacity through recent new funding to contract 24 additional non-state owned firefighting aircraft. Cutting-edge drone technology. CAL FIRE has doubled its use of drones for critical tasks like aerial ignition during prescribed burns, wildfire containment, and real-time assessments. Artificial intelligence and real-time data tools. The state is leveraging AI-powered tools to spot fires quicker and the Fire Integrated Real-Time Intelligence System (FIRIS) to provide real-time mapping of wildfires. Advanced mapping and satellite technology. California has partnered with the US Department of Defense to use satellites for wildfire detection and invested in LiDAR technology to create detailed 3D maps of high-risk areas, helping firefighters better understand and navigate complex terrains.  

Indufor would like to congratulate Bill Liley on being presented with the Kirk Horn Award at the recent New Zealand Institute of Forestry conference. The Kirk Horn Award is one of the most esteemed honours in New Zealand’s forestry sector and recognises exceptional contributions to forestry. Source: Timberbiz It is steeped in history, commemorating the legacies of Thomas Kirk, a prominent botanical explorer, and Captain Inches Campbell-Walker, New Zealand’s first Conservator of Forests. Kirk and Campbell-Walker travelled throughout New Zealand in 1876, and at the end of Campbell-Walker’s term as Conservator, he presented Kirk with a suitably engraved and mounted flask. The flask was offered to the Royal Society in 1967 in the hope the Society might institute a prize for research in New Zealand forest vegetation and forestry, with the flask as a trophy. In 1988, the Royal Society and the New Zealand Institute of Forestry agreed the Kirk Horn would be passed to the Institute for a two-yearly award recognising outstanding contributions in the field of forestry in New Zealand. Mr Liley’s journey in forestry began as a teenager, planting trees on family land in the central North Island. With a mind for engineering, he has designed and constructed a 24-metre bridge, flying foxes, and suspension bridges to improve access to forestry blocks. The family’s efforts, marked by some failures but many more successes, have had a lasting impact. This legacy continues with Mr Liley’s promotion of species like Chinese fir as a viable option for New Zealand’s forests. Mr Liley has been a steadfast supporter of the New Zealand Institute of Forestry, serving on the valuation committee for over a decade. His expertise in valuations is second to none, and his work has been sought after not just in New Zealand, but throughout the world. From consulting on numerous projects globally to providing unparalleled valuation services, he has made significant contributions to the international forestry community. His career has spanned roles at Groome and Associates, LIRO, and Jaakko Poyry, and he is currently Managing Director for as well as a Partner in Indufor Asia Pacific Ltd. Additionally, he has served as a director of the Lake Taupo Forest Management company for 15 years. Described as “down to earth, highly professional, and an extremely good boss,” Mr Liley is also known for a fierce intellect and a strong embrace of new technology. Even with such an impressive professional career, Bill continues to work on their own forest, which includes a small sawmill used to process timber from their land. He is a true embodiment of dedication, innovation and passion in New Zealand forestry.  

Agri Investor has ranked the world’s biggest food, forestry and natural capital fund managers according to the capital raised. Those in the AFF 20 raised more than US$35 billion during a five-year period. Source: Timberbiz While first and second spots went to Paine Schwartz Partners and Manulife Investment Management third and fourth were forestry companies BTG Pactual and New Forests. In total five forestry companies made the top 20 list. 1          Paine Schwartz Partners                     New York 2          Manulife Investment Management    Toronto 3          BTG Pactual                                         São Paulo 4          New Forests                                        Sydney 5          Butterfly Equity                                   California 6          Gresham House                                  London 7          Stafford Capital Partners                     London 8          PGIM Real Estate                                New Jersey 9          Arbor Investments                              Chicago 10        Nuveen Natural Capital                      Chicago 11        Equilibrium                                         Portland 12        Ceres Partners                                    Indiana 13        Fiera Comox                                        Montreal 14        Homestead Capital                             California 15        Proterra Investment Partners             Minnesota 16        Cibus Capital                                       London 17        Hosen Capital                                      Beijing 18        Renewable Resources Group              California 19        Solum Partners                                   Massachusetts 20        Climate Asset Management               London     18        Renewable Resources Group              California 19        Solum Partners                                   Massachusetts 20        Climate Asset Management               London

As part of National Safe Work Month, the Hyne Group had the honour of hosting Dan Kennedy, a dedicated Safety Advocate for WorkSafe Queensland, at its Tuan and Glulam sites. Source: Timberbiz Mr Kennedy’s visit, presented as part of Safe Work Australia’s SafeTea initiative, brought a deeply moving and significant message about workplace safety. His advocacy is born from personal tragedy. In 2012, his son, Dale Kennedy, tragically lost his life at work. Dale, a 20-year-old apprentice, was fatally electrocuted after coming into contact with non-compliant wiring while working in the ceiling space of a Cairns school. His death is a devastating reminder of the dangers that can exist in the workplace and the preventable nature of such incidents. Since Dale’s passing, Dan and his wife, Debbie, have dedicated their lives to sharing Dale’s story, emphasising the importance of safety and the devastating impact a workplace fatality can have on families and communities. Their mission is to raise awareness and ensure that no other family has to endure the pain and loss they have faced. During his Hyne Group visit, Dan shared his deeply personal story, urging all team members to take responsibility for creating safer work environments. His message reinforced that safety is not just about compliance, but about protecting lives and making sure every worker returns home safely at the end of each day. “If you have been asked to do something unsafe just say no, it’s not worth it. You’re a stronger person if you stand up for your own safety, we want you to go home at the end of the day to your loved ones,” Dan said. Dan’s sessions at the Hyne Group encouraged our team members to pause, reflect, and engage in meaningful discussions about safety. His words left a lasting impact on everyone present, inspiring the teams to prioritise safety in every task and decision. Watch Dan and Debbie Kennedy’s story in the film, “I love you, Dad” at https://www.youtube.com/watch?v=49CkBVIkWbY

Experts at Master Builders Australia have warned that low apprenticeship numbers will worsen the nation’s housing crisis if action is not taken immediately.  Source: Timberbiz The warning comes after new Australian Bureau of Statistics data revealed that 2023-24 was the worst year for home building in more than a decade, dropping 8.8% to 158,690 new starts. “Detached house starts fell by 10.1%, while higher density commencements were down by 6.0%,” said Master Builders Chief Economist Shane Garrett. “If building continues at this pace, we’ll be in for less than 800,000 new home starts over the next five years.” “This would mean a shortfall of over 400,000 homes compared with the National Housing Accord target.” The data release, revealing a drop to numbers not seen since 2011-12, coincided with fresh data from the National Centre for Vocational Education Research which showed declines in apprenticeship numbers. Apprenticeship completions fell 8.6% from 24,545 in the year to March 2023 to 22,420 to March 2024. In the same period, apprenticeship commencements dropped 11.8% from 47,110 to 41,520, and the number of apprentices in training declined 2.2% from 124,280 to 121,530. Master Builders Australia CEO Denita Wawn said the new data painted a concerning picture for Australia’s housing crisis. “Today’s data releases aren’t unrelated. To bring Australia out of the housing crisis we need to drastically increase the supply of housing,” said Ms Wawn. “And we can’t do that while we’re simultaneously suffering through a labour shortage. “Low apprentice numbers reflect a shortage of skilled workers across all trades, and until we’re able to address the challenges facing the future of the workforce, we won’t be able to increase building activity and reduce the impact of supply conditions in the residential building market on Australia’s inflation problem. “It’s no longer appropriate to call for a return to pre-Covid levels, we need more tradies now than we’ve ever had. “We urgently need governments to look at solutions to increase the number of tradies, increase the number of apprentices, and help Australian builders increase supply so we can come out the other side of this housing crisis,” Ms Wawn said. Master Builders Australia’s “Future of the Workforce: Building and Construction Industry” report, which highlights the growing need for action to increase the workforce. To read the full report go to https://masterbuilders.com.au/wp-content/uploads/2024/09/Workforce-Blueprint_Final-1.pdf

The number of housing loans issued for the purchase and construction of a new home in the three months to August was 9.1% higher than at the same time in the previous year. Source: Timberbiz The ABS released the Lending Indicators data for August 2024 which provides the latest statistics on housing finance commitments. “This increase in lending comes off a very low base, with lending for new home purchase and construction remaining about the lowest levels since 2002,” HIA Chief Economist, Tim Reardon said. “Market confidence in new home building has been improving with a pause in interest rate changes for eleven months, low levels of unemployment and an acute shortage of housing,” he said “First home buyers are increasingly active as buying a home provides protection from the acute shortage of rental homes. The Government should be looking at removing the restrictions that prevent many first-time home buyers from getting a loan.” In its recent submission to the Senate inquiry into the financial regulatory framework and home ownership, HIA identified that a decade of additional costs has restricted competition among banks and made it increasingly expensive for them to lend to first home buyers. “A decade of increased prudential restrictions has reduced competition among banks and added additional barriers to first home buyers gaining access to a loan,” Mr Reardon said. “HIA has recommended that the Government should establish an RBA-style Board to oversee APRA to balance the goals of financial system stability and homeownership.” This should include an RBA-style target for mortgage arrears. “Just as zero inflation is not the RBA’s goal, zero mortgage arrears is an unattainable and undesirable goal for APRA,” Mr Reardon said. “Mortgage arrears in Australia have remained exceptionally close to zero, even though the GFC and the pandemic. Yet, APRA continues to impose additional constraints on lending, competition among banks and thereby restricting housing supply. “The problem is that ongoing regulations have forced banks to eliminate much of the flexibility and competition in the mortgage market that made home ownership accessible for households with variable access to capital, such as first home buyers. “Ensuring that home ownership remains an attainable goal for Australian households is an equally important objective that has not received adequate recognition among financial regulators. “Banks should be making the decision on who is able to service a mortgage, not the Australian Government. Banks are well placed to make this assessment and are protected from delinquency through mortgage insurance,” Mr Reardon said. The number of owner-occupier loans issued for the purchase or construction of a new home in the three months to August 2024 increased by 34.4% in the Northern Territory (from a very low base), followed by Western Australia (+27.1%), the Australian Capital Territory (+26.8%), Queensland (+24.8%), South Australia (+16.8%) and Tasmania (+3.0%). The two largest states recorded a decline over the same period, led by Victoria (-5.2%), followed by New South Wales (-3.7%).  

The Federal Government has opened applications for the third round of the $74 million Support Plantation Establishment program. Farm foresters, First Nations businesses and the forestry industry are among those who will benefit from funding to support more plantation forests in Australia. Source: Timberbiz The Support Plantation Establishment program is providing grant funding to help establish up to 36,000 hectares of new long-rotation softwood and hardwood plantation forests across Australia. The Government will provide up to $2,000 per hectare of new long-rotation plantation forest established. To date rounds one and two of the program have awarded more than $15 million to 27 projects across Australia that will establish over 8,200 hectares of new plantations. Round three is open for applications from 11 October 2024 to 5 November 2025. Changes to the program have been made for round 3 following widespread stakeholder consultation. Grants will range from one to three years, and projects must be concluded no later than 30 June 2027. Further information about the program’s requirements can be found in the Grant Opportunity Guidelines. “This program underscores the Albanese Labor Government’s commitment to supporting the forestry industry and regional communities, while reducing our carbon footprint,” Minister for Agriculture, Fisheries and Forestry, Julie Collins, said. “By stimulating new growth in Australia’s plantation forest estate, we are helping meet our future demand for timber, creating regional employment opportunities, and building a sustainable and prosperous future while helping to meet our international emissions reduction commitments. “That’s why this grant opportunity continues to play an important role to increase Australia’s future timber supply and reduce our dependence on imported timber. Australia doesn’t have enough timber,” she said. “The Albanese Labor Government supports sustainable forestry, and is investing in forest industry innovation, manufacturing and skills. “We are delivering the most significant forest industry support package in Australia’s history, including more than $300 million to help improve the capacity and capability of the sector.” For more information or to apply, visit https://www.grants.gov.au/  

Stora Enso has started operations in its new head office at Katajanokan Laituri (Katajanokka Pier) in Helsinki, the largest mass timber building in Finland. Source: Timberbiz Showcasing the company’s wood products and solutions, this building is a true landmark in sustainable architecture and low-carbon construction. The lightweight prefabricated mass timber elements allowed the multi-storey, mixed-use building to be the first project in decades to be constructed in the historic, well-preserved as well as culturally significant Helsinki landscape and harbour area. The building, owned by mutual pension insurance company Varma, was completed on schedule during the summer of 2024. The four-storey Katajanokan Laituri houses Stora Enso’s head office and Solo Sokos Hotel Pier 4. The building is also open to the public who now can experience and enjoy the wooden architectural design. “Climate change mitigation is part of Stora Enso’s purpose and a strategic business driver. Wood-based materials offer a viable alternative to non-renewable raw materials. “Wood products are one of our core business areas. We want to be a forerunner of sustainable building solutions and showcase the way to modern wood use as part of more climate-friendly urban construction of the future. Katajanokan Laituri is a masterpiece of Finnish timber construction. It provides high quality, sustainable facilities for our head office and staff as well as for others working in and visiting the building,” Hans Sohlström, President and CEO of Stora Enso said. Compared with a concrete-based building, specifying wood for the structure resulted in an impressive 35% reduction in before use greenhouse gases. On top of having a lower carbon footprint than concrete, wood also stores carbon. No other commercially available building material can do that. The wooden elements used in the construction captured 6,000 tonnes of carbon dioxide (CO₂) during the trees’ growth and are now storing it in the building for at least the next 100 years. This is remarkable when we consider it will take the next 50 years of heating and cooling the building and other operational activities to produce the same amount of CO₂ emissions. “The use of the Sylva by Stora Enso kit of parts enabled the large-scale building to be constructed efficiently in a dense urban environment. It took only 171 just-in-time deliveries and seven months for more than 2,000 bespoke load-bearing wooden elements to be installed on-site. “The mixed-use building concept allows Katajanokan Laituri’s structure to be adaptable for future needs. Thus, the building is flexible in case the usage changes, making it a great example of a sustainable approach to urban planning and construction,” Antto Kauhanen, Business Development Manager at Stora Enso, Wood Products Division said. In addition to the sustainability benefits provided by Katajanokan Laituri, the building’s interior follows the biophilic design approach – with architectural and material choices that connect people more closely to nature. Natural materials and lighting inside the building promote well-being, increase productivity, and reduce stress levels – important features in countries where people may spend up to 90% of their time indoors. Katajanokan Laituri was built by Varma in cooperation with Haahtela, who were responsible for project management. The building was designed by Anttinen Oiva Architects.

Indonesia’s push to add wood-burning to its energy mix and exports is driving deforestation, including in key habitats for endangered species such as orangutans, a report said yesterday. Source: Agence France-Presse Jakarta Bioenergy, which uses organic material like trees to produce power, is considered renewable by the International Energy Agency as carbon released by burning biomass can theoretically be absorbed by planting more trees. However, critics say biomass power plants emit more carbon dioxide per unit of energy produced than modern coal plants and warn that using biomass to “co-fire” coal plants is just a way to extend the life of the polluting fossil fuel. Producing the wood pellets and chips used for “co-fire” coal plants also risks driving deforestation, with natural forests cut down and replaced by quick-growing monocultures. That is exactly what is happening in Indonesia — home to the world’s third-largest rainforest area, a report by a group of Indonesian and regional non-governmental organizations (NGOs) said. “The country’s forests face unprecedented threats from the industrial scale projected for biomass demand,” said the groups, which include Auriga Nusantara and Earth Insight. Indonesia’s production of wood pellets alone jumped from 20,000 to 330,000 tonnes from 2012 to 2021, the report said. Auriga Nusantara estimates nearly 10,000 hectares of deforestation has been caused by biomass production in the past four years. However, the report warns that much more is at risk as Indonesia ramps up biomass, particularly in its coal-fired power plants. The report looked at existing co-firing plants and pulp mills around Indonesia and the 100km surrounding each. It estimated that more than 10 million hectares of “undisturbed forest” lie within these areas and are at risk of deforestation, many of which “significantly overlap” with the habitat of endangered species. Animals at risk include orangutans in Sumatra and Borneo, the report said. Using wood to achieve just a 10% reduction in coal at Indonesia’s largest power plants “could trigger the deforestation of an area roughly 35 times the size of Jakarta,” the report said. Indonesian Ministry of Environment and Forestry officials did not immediately respond to Agence France-Presse’s request for comment. Indonesia saw a 27% jump in primary forest loss last year after a downward trend from a peak in 2015-2016, according to the World Resources Institute. The groups also point the finger at growing demand in South Korea and Japan, two major export destinations for Indonesia’s wood pellets. They urged Indonesia to commit to protecting its remaining natural forest and reform its energy plans to focus on solar, while banning new coal projects. The two nations should end biomass incentives and focus on cleaner renewable options, they said. “There are no math tricks that can justify burning forests for energy,” the NGOs said. “Science has clearly proven the vital role of tropical forests for climate stability, biodiversity and human survival,” they said.

AirForestry, the world’s first company to develop aerial tree harvesting technology, has closed a €10.3M seed funding round led by Northzone, with participation from strategic, evergreen, and greentech investors Sveaskog, Kiko VC, CapitalT, Walerud Ventures, SEB Greentech VC, and Cloudbreak VC. AirForestry will use the funds to further develop their innovative technology that will bring forestry into a green, fossil free, more productive future. Source: Timberbiz This funding includes €1.7M in grant financing from the Swedish Energy Agency (Energimyndigheten), positioning AirForestry to further develop its breakthrough technology: harvesting trees from above with drones. By eliminating the need for heavy ground-based machinery, AirForestry minimizes terrain disruption and protects biodiversity while promoting healthier, more resilient forests through targeted thinning of weak or sick trees. Making the process fully electrical further brings the company closer to its vision of becoming the green global solution for forestry. “We’re thrilled about our new investors who believe in the same goal as we do – making forest products more cost-effective and even more sustainable by unlocking all values of the forest. We now have a strong position to bring this solution to foresters, so that they can manage their forests effectively and increase productivity, biodiversity, and carbon sequestration,” CEO and Founder at AirForestry, Olle Gelin, said. Traditional forestry consumes more than 3.5 billion litres of diesel annually. AirForestry’s fully electric technology offers a transformative alternative, with the potential to reduce CO2 emissions by up to 10 megatons annually. Early testing shows that by thinning forests without logging trails and improving growth conditions, their solution can save approximately 0.8 tonnes of CO2 per hectare each year – equating to over 500 megatons globally. “We have a fantastic configuration of investors to build the next chapters towards our vision. We’re excited to welcome Northzone’s General Partner Pär-Jörgen Pärson and Kiko VC’s Ben Murphy to the Board of Directors,” Caroline Walerud, Founder and Executive Chair said. “Looking ahead, we hope to tackle larger portions of forestry, with an environmental upside that will result in many gigatons of saved CO2.” The round is led by Northzone, a renowned global US$4 billion multi-stage venture capital fund, famous for investing in several ground-breaking companies, such as Spotify, Trustpilot, and iZettle. “AirForestry represents a pivotal leap forward in sustainable and more cost-effective forest management with a solution that drives both environmental impact and technological progress. It is hard to imagine a team better equipped to disrupt this particular industry. Olle Gelin is one of the most knowledgeable and connected forest experts in the world and Mauritz Andersson leads a team of world class experts in autonomous systems and drone technology,” Partner at Northzone, Pär-Jörgen Pärson said. Additional investors include Kiko VC, an evergreen deeptech climate fund, alongside SEB Greentech VC, an evergreen climate investor, Cloudbreak VC, a European family office founded on electric drive units, and founding investors Walerud Ventures, a family office building deeptech for the living planet – not to mention Sveaskog, one of the world’s largest forest owners and the largest forest owner in Europe. “With our investment in AirForestry, we want to contribute to the future of forestry.  Together with AirForestry, we can develop products and solutions for advance technology and machinery to meet the complex challenges facing the forestry sector.  Creating conditions for eventually being able thinning forests with drones is revolutionary for how we manage forests, while also reducing the risk of impact in the forest terrain from heavy machines,” Per Callenberg, Head of Sustainable Business Development at Sveaskog said. Among the investors we also find CapitalT, the Dutch venture capitalist company focused on climate and future of work, with serial entrepreneur and founding partner Janneke Niessen at the helm. “We believe in backing technologies that not only solve pressing environmental challenges but also create real, scalable impact. AirForestry’s electric drone solution is doing just that by reinventing forest management in a way that promotes forest health, reduces carbon emissions, and boosts productivity. Their team, with extensive experience in both the forestry and technological sectors, plays a key role in driving this innovation forward. We are thrilled to support their mission and see them play a crucial role in the future of sustainable forestry,” Janneke Niessen, founding partner at CapitalT said.

The NSW RFS has taken the Volvo FM Electric for an extended test drive in an effort to understand how low emissions vehicles can be integrated into emergency services fleets in the future. Source: Timberbiz With an RFS water tanker in tow, the electric prime mover tackled the 550 kilometre route from the services’ Glendenning NSW logistics headquarters to the border city of Albury, arriving to be displayed at the NSW RFS Championships in the suburb of Thurgoona. The driving team, consisting of Inspector Brendan Doyle, RFS Logistics Manager and RFS Logistics & Transport Supervisor shared driving duties over the route to assess the performance and driveability of the vehicles as well as the heavy vehicle charging experience. “This drive presented a great opportunity for us to touch, feel and experience an electric prime mover on public roads,” Mr Doyle said. “It also allows us to consider where a vehicle like this could fill roles within our logistics fleet in the future.” Over the course of the trip, the truck averaged 88.7 km/h with an energy consumption of 1.24kWh/km. Required charging time was 120 minutes to complete the 6.2-hour trip with stops made at Goulburn and Tarcutta. “The driving experience was sensational,” added Peter Duff, “One of the key takeaways for me was that you could take anyone familiar with an existing Volvo truck and they’d be able to drive this without additional training at all.” Volvo Group Australia Vice President, Governmental Sales, Cameron Bettany says that there has been a lot of interest in battery electric trucks from fire and emergency services around the country. “Fire and emergency services are on the front line when it comes the impact of climate change on our local environment,” Mr Bettany said. “Many in these services are acutely aware of the need to reduce emissions, not only from a climate perspective, but also from a health and safety perspective for those first responders. “Emergency services operate in a complex environment and with that a mix of technology types will be required to enable sustainable operational capability” Battery electric trucks are a key part of this mix.” “It’s fantastic to see RFS getting out there and investigating how these vehicles perform in a real-world setting.”

Master Builders Australia says new Australian Bureau of Statistics data for the month of August revealing a 6.1% decline in the total number of new home building approvals is cause for alarm. Source: Timberbiz Despite a 0.6% rise in detached house building approvals, taking the number to a two-year high, the small gain was overshadowed by a sharp reduction in approvals for higher density homes. “There was a decline of 17.5% in higher density home building approvals during August meaning the volume of approvals is now even lower than it was a year ago,” said Master Builders Chief Economist Shane Garrett. “Over the past year, a total of 166,230 new homes have been approved across Australia. If we remain stuck at this rate of new home building over the lifetime of the National Housing Accord, only about 832,000 new homes will get delivered. “This would represent a shortfall of over 365,000 homes relative to the 1.2 million new home target set by all levels of government for the Accord.” Denita Wawn, MBA Chief Executive, warned that high density housing is crucial to ending the housing crisis and easing economic pressures for all Australians. “If we are to bring about a quick end to the housing crisis, we need a strong and consistent supply of high-density housing to the market,” she said. “It’s disappointing to see such a decline in high density approval numbers taking our housing supply in the wrong direction,” she said. “With higher density building approvals lower now than a year ago, today’s data reinforces the need for serious action on inflation to encourage new homeownership and more private investors into the market to generate urgently needed new homes. “Delivering greater volumes of new housing at lower cost and at a faster pace will help bring inflation under control sooner and help to ease economic strains for Australians.”

OneFortyOne and forest contractors are urging the public to adhere to safety signage and stay safe in the forest. Source: Timberbiz OneFortyOne Health, Safety, and Risk Manager Chandru Samy emphasized the importance of following signage, particularly at harvest sites. “Harvesting sites are hazardous due to the presence of harvesting machines, trucks, falling trees, and other heavy machinery,” Mr Samy said. “Ignoring signage and entering an active harvest site is dangerous, not only to yourself but also to those working in the forest.” Mr Samy explained that constant communication during operations ensures everyone and all equipment are accounted for at all times. “Visibility from the harvesters for example is relatively limited outside of the tree they’re cutting down, so good communication means operators can do their jobs safely and with the peace of mind that everyone on site is safe too,” he added. He also noted that anyone unexpectedly or unauthorized on site is at risk and can endanger crews. “No one wants to be part of an accident,” Mr Samy said. Forest area closures in place during harvest operations and are usually reopened within weeks. “To ensure the safety of everyone in the forest, we urge all visitors to follow any signage. If you’re unsure, find another location to explore,” he said. “We all share the responsibility of maintaining a safe environment.” “Local forests are beautiful places to enjoy, and with over 300,000 hectares of forest in the region, there’s always somewhere to explore safely. “We have also published a video explaining some hazards in the forest.” You can view the video here: https://youtu.be/wPHUGlguOKQ

WorkSafe New Zealand says it will deliver enforcement, engagement, and permitting activities across priority areas to maximise its influence and achieve better, more equitable outcomes. Source: Timberbiz The plans cover the sectors with highest work-related harm – construction, manufacturing, forestry, and agriculture. There is also a permitting plan covering specific high-risk work such as mining, adventure activities, and some work involving hazardous substances. WorkSafe says its main role is to influence businesses and workers to meet their health and safety responsibilities and to hold them to account if they don’t. The new strategy aims to simplify how WorkSafe will deliver on this. The strategy acknowledges WorkSafe cannot be everywhere and emphasises the importance of collaboration. WorkSafe says it will continue to work with partners, including industry bodies, government agencies, iwi, and unions, to understand risk and harm, measure the impact, and refine plans over time. Priority plans Guided by evidence about acute, chronic, and catastrophic harm, WorkSafe will prioritise high-risk sectors and high-risk activities. Across these priority areas, the agency says it will deliver enforcement, engagement and permitting activities to maximise its influence and achieve better, more equitable outcomes. Sector plans include: Agriculture – Accounts for around 25% of acute work-related fatalities and serious injuries, while only 6% of employment is in this sector. Most serious harm occurs in dairy, sheep, and beef farming. WorkSafe’s plan sets out how it will target the biggest risks and work with others to influence improved health and safety culture in agriculture. Construction – Has among the highest rates of acute and chronic harm. It accounts for around 15% of work-related fatalities and serious injuries, and it has the largest number of workers with exposure to toxic dusts and fumes. To prevent harm on construction sites, WorkSafe says businesses must keep up with constantly changing risks, especially where multiple businesses work together. The agency’s plan sets out how it will target the biggest risks to achieve safe construction sites and influence large businesses to lead the way. Forestry – Has a very high rate of acute harm, mostly from felling trees. The fatality rate in forestry is about 20 times higher than the average for all sectors. Workers that are harmed are more likely to be young, Māori, and from rural communities. To reduce this harm, WorkSafe says the whole sector needs to plan for and practise safe tree felling. The forestry plan sets out how WorkSafe will work with forest owners, managers, contractors, kaimahi and communities to achieve this. Manufacturing – This is a large sector with high numbers of Māori and Pacific workers. It has the largest total number of injuries of any sector, and some workers have high exposure to toxic dusts and fumes. Health and safety performance has been poor compared to other sectors over the past decade. WorkSafe says improving performance starts with getting the basics right, like safe machinery and good worker training. The agency’s plan sets out how it will influence better risk management and worker engagement in the manufacturing subsectors where most harm occurs. The government has also set rules and regulations for specific high-risk work. This includes mining, adventure activities, asbestos removal, some work involving hazardous substances, and operating equipment such as cranes and scaffolding. If these activities are not well managed, they can result in serious or catastrophic harm. WorkSafe is responsible for overseeing the rules and regulations and checking that businesses and individuals permitted to undertake this high-risk work meet the safety requirements. Its permit plan sets out how it will: improve the efficiency, transparency, and quality of the permitting process clarify expectations for regulated parties monitor whether this high-risk work is being carried out according to the rules. Read the full permit plan here: https://www.worksafe.govt.nz/dmsdocument/68640-permit-priority-plan-2024-2026/latest

Access to tree seedlings for commercial plantations and biodiversity plantings has just become easier with the next generation at Hills Transplants growing the business. Source: Timberbiz From what started 60 years ago as a humble backyard market garden at the family home in Don, Stephen Hill has morphed what his father John started into a multi-layered commercial enterprise. Not only do the Hills grow seedlings for the forestry industry and agriculture producers, and raspberry cane propagation, but they supply the nation’s biggest grocery chains with herbs and other leafy greens year-round using the latest techniques and technology. And now Stephen’s sons Josh and Sam are looking to diversify Hills Transplants even further and make it easier for Tasmanian landowners to access tree seedlings for commercial timber and biodiversity or riparian area purposes, trading as S & J Seedlings. “We believe there is a market out there for us to grow to order certain species for landowners and farmers to plant trees on their land,” Josh said. “The approach is customer-focused, catering to specific orders and delivering seedlings when required. “If a farmer comes to us with a particular order for a specific species, we have quality seed for, we’re more than happy to pack the right amount and get them out the door exactly when they want them. “Two or three years ago, we just started selling a few extra pines and eucalypts that we had surplus of at the time after we finished our pack out for the year… it was like we’d put in a hook we caught shark it was that successful. “We’re fairly new at it and we will be kind of relying on someone to come to us with different lines that we could potentially use so, therefore, we can trial it and get the seed and then grow it.” Josh said species they planned on producing seedlings for at varying levels and by demand and advance order included: Pinus radiata (Radiata pine) Eucalyptus globulus (Blue gum) Eucalyptus nitens (Shining gum) Acacia melanoxylon (Blackwood) Potential wood value species for a niche market, if managed correctly. Acacia dealbata (Silver wattle) Allocasuarina littoralis (Drooping sheoak) Allocasuarina littoralis (Black sheoak) Banksia marginata (Silver banksia) Primarily biodiversity planting species Melaleuca armillaris (Bracelet honey myrtle) Eucalyptus pauciflora (Little snowman) Corymbia ficifolia (Red flowering gum) Callitris rhomboidea (Oyster Bay pine) Melaleuca ericifolia (Swamp paperbark) Eucalyptus viminalis (White gum) Josh said finding seeds for certain provenances requirements was difficult, with standard seedlings their leading market driver at this stage. He said 12 months’ notice from the landowner would be ideal when placing an order to enable them to plan, order the seed and grow the seedlings. Private Forests Tasmania forester Rob Smith said landowner interest is growing in niche species that have both biodiversity and a wood value outside of the traditional commercial plantation varieties. “PFT is doing a lot of work in this space as demand for speciality timbers grows,” Josh said. “In fact, one of our successful Stems for CO2 Program grant recipients will be planting Castanea sativa (Spanish chestnut) and Quercus rubra (Red oak) next year, which will provide us some great insights and a real example of what can be achieved. “Many species have the potential to grow in Tasmania, but species selection depends on site requirements and other factors such as the site’s characteristics (climate, soil and other ecological factors), deciding which species and provenances are likely to thrive in the conditions and deciding which of one or more species, at the same time, satisfy the objectives of the planting scheme. “There are more options for private landowners to consider now in planting for both biodiversity and potential timber harvest with alternative eucalyptus, cypress, hardwood species gaining traction as well as Tasmanian natives.” For further detailed information on the species in Table refer to the Species Guides https://pft.tas.gov.au/species-guides Before undertaking any significant forestry project, it is recommended that you seek personal professional advice directly from a forestry professional on the particular matter. Visit Private Forests Tasmania’s online interactive Tree Alliance Knowledge Hub at www.treealliance.com.au for more information on site preparation, species selection, planting and managing plantations or the free Helpline on 1300 661 009. To discuss further with S & J Seedlings or to place an order, contact Sam on 0407834659 or sam@htpau.com

A VR immersive training tool developed by the University of South Australia with the support of the Green Triangle Forest Industry Hub is expected to save the industry millions of dollars in the long term. Source: Timberbiz Virtual reality is set to revolutionise Australia’s $24 billion forestry industry by training workers risk-free, remotely, and much faster. Lead researcher and immersive technology expert Dr Andrew Cunningham with developer Jack Fraser have spent the past year working on the VR tool to support training in South Australia’s forestry mills and hope to roll it out nationally. The ‘Mills Skills VR’ tool uses virtual reality across a range of scenarios, immersing users in a 3D environment that simulates all aspects of forestry practices, training them in a risk-free setting. “For the untrained, the forest industry is inherently risky, especially in the mills because it involves large, heavy machinery,” Dr Cunningham said. “It is also a fast moving and busy environment, so if we can train workers to recognise the hazards and equip them with the skills before they step into the mill, it’s better for everyone.” A significant benefit is that the trainees can use the VR tool anywhere in Australia, with a virtual reality headset, saving time and costs in flying them halfway across the country. Workforce Development Manager at the Green Triangle Forest Industry Hub, Josh Praolini, says the VR training model could reshape how training is delivered to forest industry workers in Australia. “At the moment, we rely on access to trainers and machinery that is an essential part of the mill operations. By training new recruits on these machines, you slow or halt production, and expose them to potential risks,” Mr Praolini said. “This virtual reality tool allows us to safely introduce recruits to multiple scenarios they could encounter in the mill, as well as offering updated training to existing workers without impacting day-to-day operations of the mill.” Beyond the VR training, UniSA researchers are using immersive analytics tools to gather data on plantations and view the trees virtually in a 3D environment, checking for defects, wood quality and growing conditions. “The ability to track, monitor and interact in virtual environments opens the door to an exciting future for Australia’s forest industry,” Mr Praolini said. Dr Cunningham is confident the industry’s willingness to embrace new technology will also make it an appealing career choice for high school and university students. “The forest industry currently supports around 80,000 direct jobs in Australia, but we still need a lot more workers. Virtual reality can take people into a mill and a plantation, showcasing what is involved and the opportunities that lie ahead for a progressive and satisfying career,” Dr Cunningham said. The next step is to adapt the training tool to other industries where safety is important, including building and manufacturing. A video explaining the VR training tool is available at: https://youtu.be/fVDVOG_1H8w

After what has seemed like an eternity of headwinds, it looks as though we finally have some positive signs from China with October A grade wharf gate prices boosting through the NZ$120/m3 glass ceiling for the first time in seven months. Offers depend on which port you are supplying but range from the mid to high NZ$120s in Tauranga and Marsden, early to mid-NZ$120s in the Southern North Island and Upper South and early NZ$110s for those further south. This is the result of a number of factors, primarily lower shipping rates and slightly higher in-market sales prices. Most exporters posted their prices with a Forex rate of $NZ:US0.635, however in the last few days this has dropped by two cents which would theoretically put another NZ$6/m3 on the table. On-port China inventory has reportedly dropped by 700,000m3 in the past four weeks and now sits at around 2.7 million m3. A real inventory drop of this magnitude seems too high and is more than likely due to vessel delays with poor weather in September slowing vessel loading. This could potentially correct itself in October. Offtake has lifted to 70,000m3/day, however, with the Golden week holiday just wrapping up, this number is expected to drop temporarily. On top of this, there’s some interesting times in China with the release of the most aggressive government stimulus package since covid, aiming to halt the continued decline in house prices and stabilize the real estate market. This has obviously been welcomed by the Chinese economy with the biggest single day gain in the Shanghai Composite in 16 years. According to Deutsche Bank, the current package is worth around US$1.07 trillion or 6% of GDP and could be the largest in history in nominal terms. The package includes cuts to mortgage to debt ratios, additional funding facilities, bond issuances and additional capital for banks. This all sounds fine and dandy, but don’t go out and plan that trip to the Bahamas yet. To put some perspective around the state of the China real estate market, this is a US$60 trillion asset class which has been receding in value at around 7% per year and holds around 85% of household wealth. There are currently around 60 million empty apartments, the population is declining, and the government has made it clear they don’t want foreign investment in property. Goldman Sachs estimate that the CCP need to inject around US$2.1 trillion into the sector just to stop the bottom falling out – twice the size of the current package. So, while it’s good news that our export returns are improving, many of our costs are outstripping inflation, resulting in diminishing real returns. A number of port companies have recently released their annual earnings and are high fiving each other over their profitability. Great news if you’re a port company shareholder but not so flash if you’re on the commodity hamster wheel. Port costs for log storage, handling and fumigation have increased approximately 70% since 2018 against a CPI of 25% for the same period. Costs attributed solely to port operations (not including scaling, marshalling and fumigation) have increased 55%. Conversely, the three-year average export price was $122/m3 in 2018 compared with NZ$119/m3 presently – no high-fives for forest owners. Port companies will have to be very careful how they treat their log version of the golden goose because the goose is starting to run short on feed. Domestic sawmills continue to provide stability to forest owner returns although trading is tough, especially for those supplying the NZ construction market. Issued residential building consents for the year ended August 2024 are down 20% on the same period last year with commercial consents down 8%. Consents don’t necessarily convert into buildings, as many are sitting on their hands waiting for the OCR to drop and hoping for a reduction in building costs. Pruned mills are starting to feel the squeeze from the US with demand reducing and inventories increasing as the US economy wades through its various issues. Carbon prices have increased slightly over the past month and currently sit at $63.50/NZU which, like the export prices, is a 7-month high. Nothing to get excited about but the trajectory is up, and all eyes will be on the December auction for some direction as to what 2025 will look like. So, all in all the rest of 2024 is looking reasonably solid. If we can keep the lid on total supply then the price will likely improve, however, we’re not that good at constraining supply, especially in summer with reasonable prices. The China stimulus package is more than likely just a giant can kicking exercise but it will provide a boost to sentiment and the China market is very sentiment driven. If you’re sitting on the fence regarding harvesting your forest, now is probably the time to hop off and get your ducks in a row as this sugar rush may not last that long. It may be prudent to monetize your forest and buy some port shares…  

A new study by the Wood Pellet Association of Canada (WPAC) shows forest residue material in Canada can be pelletized in line with regulatory standards. Source: Timberbiz WPAC, in partnership with BioPower Sustainable Energy Corporation, has conducted a comprehensive analysis of the feasibility and economic implications of using an in-woods grinder to process forest biomass for wood pellets. BioPower, a Canadian manufacturer of commercial and residential grade wood pellets, carried out all field tests at its operations in Northern Ontario near Atikokan, including the collection and analysis of feedstock samples, pelletization, and data collection. WPAC says the Ontario wood pellet industry is moving away from an exclusive dependency on sawmill residues to forest biomass as a primary raw material. This pivotal transition is driven by a growing global demand for renewable energy sources, such as pellets, and increased use of forest residues, once left behind or burned on site after harvesting. Though promising, forest biomass presents challenges such as contamination, variability in ash and moisture content, and higher processing costs, which need to be carefully managed to ensure the economic viability of wood pellet production. The study’s thorough testing and analysis of forest residue material for pelletization in Ontario shows however, it can be used to produce high-quality pellets that comply with International Organization for Standardization standards. The study found forest residue biomass exhibited higher levels of moisture and ash content compared with sawmill residues. However, with appropriate drying and processing techniques (such as mixing different feedstocks), these levels were brought within the acceptable range for pellet production, minimizing the risk of operational issues like slagging and fouling in boilers. The finished pellets were tested against ISO 17225-2 standards, confirming that the pellets made with the proposed blends met either 11 or 12 industrial pellet ISO specifications for durability, energy content, and ash content. The addition of forest biomass as a primary feedstock for Ontario’s wood pellet industry presents both challenges and opportunities. While forest biomass is more complex to process than sawmill residues, it offers a sustainable and abundant source of raw material for pellet production. There are added environmental benefits in reducing fuel loads in the forest that can contribute to wildfires and improving air quality by not burning slash.

To meet the demanding sustainability requirements within the construction industry, Lett-Tak has invested in a new production line manufacturing its new roof element – Lett-Tak Wood. Source: Timberbiz The company already offers roof elements made of steel, but this is Lett-Tak’s first roof elements made entirely of wood, utilizing Metsä Wood’s Kerto LVL. This roof element focuses on minimizing CO₂ emissions throughout its lifecycle. With the new production line, Lett-Tak can offer the market a product with a low environmental footprint, which is crucial for meeting the increasingly demanding sustainability requirements in the construction industry. “The new roof element, which uses Metsä Wood’s Kerto LVL, has a CO2 footprint of around 24 kilograms of CO2 equivalents per square meter,” Johan Aas, CEO of Lett-Tak said. The collaboration between Lett-Tak and Metsä Wood began in 2019, and together they saw an opportunity to create a roof element entirely of wood using Kerto LVL. The result was their new roof element, Lett-Tak Wood, which is now available on the market and for which a new production line has been built. There is already increased interest from customers in Sweden, Norway, Denmark, Finland, and Iceland, and they expect this increased interest to impact Lett-Tak’s revenue positively. “We are currently in discussions with our customers about Lett-Tak Wood, aiming to contribute to the green transition in the industry. Those looking to be part of this shift will find Lett-Tak Wood appealing because we provide wooden roof elements with a low CO2 footprint,” Tommy Nilsen, Sales and Marketing Manager at Lett-Tak said. The production is also designed to be as efficient and environmentally friendly as possible, with automated processes that reduce both work noise and physical strain for the employees. At the same time, Lett-Tak has set ambitious sustainability goals, including the development of an environmental calculator, which will be able to measure the climate footprint of the products – from production to recycling. Features of Lett-Tak Wood Low CO2 footprint Reusable Recyclable Energy-efficient with low U-value Long spans up to 16 meters provide architectural freedom and rapid assembly Long lifespan Hard surface provides good fastening opportunities Stable, results in low deflection.