Enviva emerged from bankruptcy as a private company, with $1 billion less debt. In related news: San Group’s creditor protection hearings continue in a Vancouver court; Port Hawkesbury Paper says it shouldn’t have to pay for Nova Scotia Power’s bailout; and the Seattle Times urges caution on two new wood pellet plants. Meanwhile, Resource Work’s To-Do List for BC’s new Forest Minister; and Canada’s Green Party appoints a shadow forestry critic.
In Forestry/Climate news: the US is investing $265 million to save private forests from development; US Senator Lee introduces a Forest Service Accountability Act; Washington State researchers seek to identify illegally logged wood; and the EU recognizes carbon capture & storage in long-lasting wood products.
Finally, health and safety warnings over wood-burning stoves and fake Christmas trees.
Kelly McCloskey, Tree Frog Editor
A BC Supreme Court Justice has approved a short extension of creditor protection as a court monitor works with San Group to reorganize its business operations. The court-appointed monitor from Deloitte asked for the extension as he tries to clarify the value of the company’s assets. …In April, San Group’s Acorn mill in Delta was damaged by a significant fire. One claim for $12.1 million has recently been denied by the insurance company. The company is filing two more claims, jointly worth nearly $30 million. Also, the bomb cyclone was bad for San Group. Log booms in Alberni Inlet got loose, and management has reported losing $6 million in log inventory. The company has third parties trying to recover the logs. …All involved say they believe the company is working in good faith. …The monitor plans to have another report for the next court hearing about San Group’s future on Dec. 19.
ARKANSAS — News about lumber mill shutdowns is always disheartening, and South Arkansas has had its share of that in 2024. West Frasier mothballed its Huttig mill this year, putting 140 people out of work. AHT Products closed its flooring mill in Warren unexpectedly, putting another 130 out of a job. Fortunately, there’s no lack of good news in the timber industry. PotlatchDeltic brought its $131 million Waldo sawmill upgrade online. Teal Jones Group is staffing up its new $110 million mill in Plain Dealing, LA, and will employ 125. Georgia-Pacific said it will expand toilet tissue production in Crossett, creating 50 jobs in a $90 million expansion. Canfor has completed the purchase of Domtar’s former El Dorado mill and about $50 million worth of improvements have been made. Finally, Weyerhaeuser announced a $500 million facility near Monticello that will employ about 200 workers. …That’s roughly $800 million and almost 400 new mill jobs coming online. This is positive local economic news going into 2025.
MILTON KEYNES, England — Rockwell Automation announced that West Fraser has made significant gains towards stringent carbon-reduction and energy saving targets at its plant in Cowie, 
VANCOUVER, BC — West Fraser Timber declared a quarterly dividend of US$0.32 per share on the Common shares and Class B Common shares in the capital of the Company, payable on January 14, 2025 to shareholders of record on December 27, 2024. Dividends are designated to be eligible dividends pursuant to subsection 89(14) of the Income Tax Act (Canada) and any applicable provincial legislation pertaining to eligible dividends.
Canada’s central bank has cut interest rates for the fifth consecutive time as the country’s economy grows at a slower rate than projected. The 50-basis-point cut comes Canada’s economy grew by one per cent in the third quarter of 2024, and the fourth quarter is looking weaker than projected, according to the Bank of Canada. “Monetary policy no longer needs to be clearly in restrictive territory,” said Bank of Canada governor Tiff Macklem. Macklem noted consumer spending and housing activity both picked up as a result of lower interest rates. Another factor in cutting the interest rate was Canada’s unemployment rate rising to 6.8% in November as the bank says the number of people looking for work has increased faster than the number of jobs. …In making its decision, the bank cited the incoming U.S. administration and the threat of 25% tariffs on Canadian exports to the U.S., adding increased uncertainty and clouding the economic outlook.
Lumber prices dropped below $570 per thousand board feet in December, marking a near one-month low, driven by strong supply and subdued demand. Rising production in the U.S., which is becoming more self-sufficient, has boosted supply, particularly in the U.S. South. While sawmill closures in Canada have had some impact, they have not significantly curtailed overall supply. Additionally, U.S. building permits continued their decline in October, dropping 0.6% following a 3.1% decrease the previous month, while housing starts fell 3.1%, missing expectations. Broader trends suggest ongoing challenges, including a rise in new home inventory, adding to over supply. Still, the potential impact of President-elect Trump’s proposed tariffs on Canadian lumber exports remains uncertain.
WASHINGTON, DC – The Fannie Mae Home Purchase Sentiment Index® (HPSI) increased 0.4 points in November to 75.0, continuing its sharp upward trend over the past year as consumers appear to be acclimating to the higher mortgage rate and home price environment. This month, a new record-high share of consumers indicated that they expect mortgage rates to decline over the next 12 months, while fewer respondents said they expect home prices to rise. While only 23% believe it’s a “good time to buy a home,” on net that component continued its upward trend, and is now notably higher than last November’s share of 14%. The share of respondents saying it’s a “good time to sell” remained flat month over month but is also up from last year. Year over year, the HPSI is up 10.7 points.
The U.S. exported 839,226.4 metric tons of wood pellets in October, down from 898,128.2 metric tons the previous month, but up from 835,490.8 metric tons in October 2023, according to the USDA Foreign Agricultural Service. The U.S. exported wood pellets to approximately a dozen countries in October. The U.K. was the top destination for U.S. wood pellet exports at 700,824 metric tons, followed by Denmark at 92,850.8 metric tons. The value of U.S. wood pellet exports fell to $154.72 million in October, down from $167.05 million in September and $155.41 million in October of last year. Total wood pellet exports for the first 10 months of 2024 reached 8.25 million metric tons at a value of $1.53 billion.
Exports of Southern Pine lumber (treated and untreated) are running 17% ahead of 2023 through the first three quarters of 2024, according to September data from the USDA’s Foreign Agriculture Services’ Global Agricultural Trade System. Southern Pine lumber exports were down 10% in the third quarter of 2024 over the prior quarter but up 11% over the same period in 2023. Exports were up 3% over August and up 20.9% over September 2023. …When looking at the report by dollar value, Southern Pine exports between January and September 2024 are running 9% ahead of the same period in 2023 at $168.7 million, with Mexico leading the way at $46.6 million, followed by the Dominican Republic at $41.3 million, and India at $13.1 million. Treated lumber exports, meanwhile, are flat over the year at $103.1 million led by Jamaica with $17.6 million, the Leeward-Windward Islands at $16.1 million, and the Dominican Republic at $8.4 million.
Exports from Finland’s forest industry reached Euro 3.16 billion in the third quarter of 2024, marking a 15% increase compared to the same period in 2023, according to the Natural Resources Institute Finland (Luke). Key contributors to the export value included paper (22%), cardboard (29%), pulp (21%), lumber (16%), and plywood (4%). …For the third quarter, total wood imports reached 1.37 million m3, 74% higher than in the corresponding period last year but down 1% from the second quarter of 2024. Of these imports, 68% were pulpwood, 21% were chips, and less than 2% were sawlogs. The wood product industry contributed Euro 0.76 billion in Q3 exports, reflecting an 18% year-on-year increase but a 16% decrease from Q2 2024. Lumber exports rose by 30% in value and 14% in volume compared to Q3 2023, while plywood exports increased by 9% in value and 19% in volume.
A group of UBC academics has compiled a list of ways to ensure this Christmas has as little effect on the environment as possible. …“Natural Christmas trees are more sustainable than artificial ones, which produce three times the emissions,” says Jiaying Zhao, associate professor in the department of psychology and the Institute for Resources, Environment and Sustainability. She—also suggests renting potted Christmas trees. Johan Foster, a professor of chemical and biological engineering, says most fake Christmas trees contain polyvinyl chloride or PVC, which sheds microplastics indoors and is not good for children or pets. …Guangyu Wang, an associate professor in the faculty of forestry, suggests using a real Christmas tree and planting it in a biodegradable pot, which eliminates the environmental impacts of disposal, allows the tree to continue sequestering carbon and prevents methane emissions from trees decomposing in landfills.
The European Council has given the green light to the certification framework for carbon removals which includes carbon storage activities that capture & store carbon in long-lasting products for at least 35 years such as wood-based construction products. It is the first EU-level certification framework for permanent carbon removals, carbon farming and carbon storage in products. This voluntary framework will facilitate and encourage high-quality carbon removal and soil emission reduction activities in the EU, as a complement to sustained emission reductions. …Carbon removal activities will have to meet overarching criteria in order to be certified: they must bring about a quantified net carbon removal benefit, they must be additional, they must aim to ensure long-term storage of carbon while minimising the risk of carbon release and do no significant harm to the environment. In addition, activities eligible for certification will need to be independently verified by third-party certification bodies.
WASHINGTON — Workforce development organization 
The U.S. government is investing $265 million in 17 states to save private forests from development, while improving rural economies, mitigating wildfire threats and reconnecting wildlife. The U.S. Forest Service recently announced the grants in its latest batch funded by the Forest Legacy Program. The October awards were made through Inflation Reduction Act funds. These new grants will help protect some 335,000 acres of vital forest lands in 21 projects. …“Landowners face many pressures to convert forests to other uses and this investment is key to keeping the economic, social, and ecological benefits that these forests provide,” Agriculture Secretary Tom Vilsack said Oct. 29 in press statement about the recent round of grants. …The total allocation for 2024 will amount to nearly $420 million in grants to 47 projects to save 500,000 acres of forest land. Over the last three decades since the program began, the federal government has saved 3.1 million forest acres in 479 completed projects.
SEATTLE — A pair of proposals to build wood pellet-manufacturing plants in Hoquiam and Longview would bring a growing but controversial global industry to Washington. Countries including the U.K. and Japan have subsidized the burning of such pellets to produce electricity. …But of concern is the industry’s operations elsewhere have revealed the use of whole logs, and even old growth forests in British Columbia, to manufacture them. …Drax and other wood pellet producers in the southeastern U.S. also vowed to use residual materials. But the Southern Environmental Law Center estimates that at least 100,000 acres of trees in the American south have been harvested for wood pellets. …The Times editorial board supports active management of working forestlands to improve their health, prevent wildfire and supply critical material for everything from utility poles to affordable housing. …But state leaders should be wary of these past examples. [to access the full story a Seattle Times subscription is required]
Changes in cloud cover may account for why global temperatures for the past two years have exceeded the predictions of climate models. 2023 and 2024 saw temperature records repeatedly smashed, with both years now showing average temperatures around 1.5°C above the pre-industrial level. Climate change plus an El Niño weather pattern are partly to blame, but neither factor fully explains the extraordinary warmth. Now,