Daily News for February 14, 2024

Today’s Takeaway

Enviva is preparing to file for bankruptcy: Wall Street Journal

The Tree Frog Forestry News
February 14, 2024
Category: Today's Takeaway

The Wall Street Journal says wood pellet maker Enviva is preparing to file for bankruptcy within days. In other Company news: Cascades’ mill closures will impact 230 in Ontario; Western Forest Products reports Q4 net loss; Mosaic is named one of BC’s top employers; and Mondi signs an agreement with Hinton, Alberta. Meanwhile: US inflation remains sticky due to housing costs; and recovered paper slumps across Europe.

In Forestry/Climate news: Alberta Fire Chiefs call for wildfire strategy; BC energy minister says province is preparing for drought; and opposition mounts to BC’s proposed Land Act changes, as Lands Minister says First Nations will not have a veto. Elsewhere: North Carolina’s Governor signs an executive order to conserve 1 million acres of forests; and new research on reforestation and rising temperatures in the eastern US. 

Finally, Kevin Horsnell (Canfor), David Beleznay (Mosaic) and Peter Flett (Nk’Mip Forestry) are BC Forest Professional’s award winners.

Kelly McCloskey, Tree Frog Editor

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Business & Politics

Town of Hinton signs partnership with Mondi after purchase of West Fraser pulp mill

By Scott Hayes
Lakeland Today
February 13, 2024
Category: Business & Politics
Region: Canada, Canada West

HINTON, Alberta — Months of collaborative discussions have resulted in a new strategic partnership between the Town of Hinton and the company that recently completed its purchase of the Hinton pulp mill from West Fraser. Completion of the sale to Mondi took place on Feb. 3. The long-term partnership focuses on the future of the treatment and distribution of the town’s utility systems. Chief administrative officer Jordan Panasiuk explained that the town operates its water treatment plant located on the mill’s property. This means that the mill itself owns a piece of the process. “There was a direction to move towards our own water treatment plant standalone in 2007. We have not done that so far.” Now it has made a 20-year agreement to continue with Mondi, giving the town time to make that move. …Mondi intends to invest in the mill to improve its productivity and sustainability performance. 

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Cascades shutters Quint West, Belleville plants; 230 layoffs announced

By Derek Baldwin
The Belleville Intelligencer
February 13, 2024
Category: Business & Politics
Region: Canada, Canada East

ONTARIO — Cascades announced Tuesday it is shuttering its two containerboard-packaging facilities in Quinte West and Belleville. The layoffs will impact Cascades’ Trenton carboard-manufacturing mill on the east side of the Trent River – formerly known as Domtar — as well as Cascades Belleville operations. The Trenton facility has been idle since last month. Up to 150 workers will be affected in Trenton while a further 80 have received layoff notices in Belleville, confirmed Hugo D’Amours, Cascades VP of communications. …“The market environment as well as the operating costs … are forcing us to announce the closures,” he said, noting a third plant is being closed in Connecticut. …Trenton workers are represented by UNIFOR and Belleville employees are represented by Independent Paperworkers of Canada Local 7. …“The annual production capacity of the equipment to be shut down is 175,000 short tons of corrugated medium and 500 million square feet of corrugated packaging,” the company stated.

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Wood Pellet Maker Enviva Prepares to File for Bankruptcy

By Alexander Gladstone and Jodi Xu Klein
The Wall Street Journal
February 13, 2024
Category: Business & Politics
Region: United States, US East

Enviva, the largest U.S. wood pellet exporter, is preparing to file for bankruptcy within days after a bad bet on future prices of the commodity triggered nine-figure losses, according to people familiar with the matter. The company last month entered into a 30-day grace period that expires on Thursday after missing a $24 million interest payment owed to its bondholders. Enviva is making preparations to file for bankruptcy as soon as the end of this week, but it might push the filing back to continue negotiations if the bondholders agree to extend the grace period, the people said. A group of Enviva’s bondholders is offering the company financing for the chapter 11 process, the people said. Enviva didn’t respond to requests for comment. Enviva’s shares have lost 99% of their value in the past 12 months. The stock closed Tuesday below 45 cents. [to access the full story a WSJ subscription is required]

Additional coverage in StarNews: Could this week bring clarity to Enviva’s future?

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Finance & Economics

US Inflation Remains Sticky due to Persistent Housing Costs

By Fan-Yu Kuo
NAHB – Eye on Housing
February 13, 2024
Category: Finance & Economics
Region: United States

Consumer prices picked up again in January while core prices remained elevated, especially housing costs. Despite a slowdown in the year-over-year increase, shelter costs continue to put upward pressure on inflation, accounting for over two-thirds of the total increase in all items excluding food and energy. This hotter-than-expected report will almost certainly delay Fed rate cuts until the second half of the year. …Additional housing supply is the primary solution to tame housing inflation. …Further tightening of monetary policy would hurt housing supply because it would increase the cost of AD&C financing. This can be seen on the graph below, as shelter costs continue to rise despite Fed policy tightening. Nonetheless, the NAHB forecast expects to see shelter costs decline further in the coming months. …In January, the index for shelter (+0.6%) continued to be the largest contributor to the monthly increase in the core CPI.

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Western Forest Products Announces Q4, 2023 Net loss

By Western Forest Products Inc.
GlobeNewswire
February 13, 2024
Category: Finance & Economics
Region: Canada, US West

VANCOUVER, BC — Western Forest Products reported a net loss of $14.3 million in the fourth quarter of 2023, as compared to a net loss of $17.4 million in the third quarter of 2023. Results in the fourth quarter of 2023 reflect lower realized pricing and shipment volumes on a stronger lumber sales mix, offset by lower stumpage rates as compared to the same period last year. Adjusted EBITDA was negative $1.2 million compared to negative $11.6 million in the third quarter of 2023. …Highlights in 2023 included… a $35.9 million agreement to sell a 34% interest in a new forestry limited partnership to four Vancouver Island First Nations. …The Company announced that Stephen Williams will step down from his role as Executive VP and CFO of the Company by the end of 2024. Western has commenced an executive search for a new Chief Financial Officer. Mr. Williams will remain in his role as Chief Financial Officer until his replacement is found.

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Use of recovered paper slumps across Europe

By Greg Pitcher
REB Market Intelligence
February 14, 2024
Category: Finance & Economics
Region: International

Paper recycling fell by 7 per cent across a broad swathe of Europe last year, according to a key report. A study from the Confederation of European Paper Industries (CEPI) found that depressed production of packaging paper and board, along with the closure of certain graphic paper mills, led to the slump in use of recovered paper in 2023. The report added that production of pulp and paper dropped by 13% across the 19 countries the body covers, which include the UK. A poor economic environment, a trend towards destocking and persistently high energy costs all contributed to the fall, according to the study. …Europe’s pulp production also declined, albeit less steeply than overall paper manufacturing, said the report. Consumption of graphic paper dropped by 28% while use of sanitary and household paper fell just 4%.

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Wood, Paper & Green Building

Fast + Epp tests point-supported CLT for mass-timber construction

Canadian Consulting Engineer
February 13, 2024
Category: Wood, Paper & Green Building
Region: Canada, Canada West

Vancouver-based consulting engineering firm Fast + Epp has completed a six-month point-supported cross-laminated timber (CLT) testing program at Concept Lab, its research and development (R&D) space dedicated to advancing structural design. Lab teams experimented with six repetitions of many variables for a point-supported CLT floor system, including different wood species, manufacturers, panel grades, screw reinforcing patterns, panel thicknesses and geometries, column types and locations and baseplate geometries. In total, they conducted 180 tests of 30 different configurations. Now that the lab has completed punching shear testing of floor and roof systems, additional full-scale panel testing is scheduled at Prince George’s University of Northern British Columbia. The data from the testing program—undertaken in partnership with UNBC, Natural Sciences and Engineering Research Council of Canada, Natural Resources Canada’s Green Construction through Wood program and the CleanBC Building Innovation Fund—will be shared publicly and sent to code-review committee members.

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Forestry

Prince Albert Grand Council Wildfire Task Force meets to begin addressing 2024 risks

By Valerie Barnes and Connell Jordan
The Prince Albert Daily Herald
February 14, 2024
Category: Forestry
Region: Canada, Canada West

The Prince Albert Grand Council (PAGC) Wildfire Taskforce has begun preparing for the 2024 wildfire season. Cliff Buettner, director of forestry and protective services has worked with PAGC for the past 25 years and previous to that spent several years “with the government of Saskatchewan as a conservation officer,” giving him 42 years’ experience with wildfires in the province. The Taskforce was established in 2017 in response to fires in Pelican Narrows. In part the resolution calls for increased First Nation response to wildfires “that affect the traditional livelihoods of First Nations and their traditional land,” Buettner said. First Nation people “want to participate in suppression of fires” that affect their communities,” he said. Buettner said PAGC is looking at the response to firefighting in the north and want to move to a process used in the past to fight fires where fires were fought early in the morning and in the evening.

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Mosaic’s David Beleznay receives Climate Change Innovator Award

By Mosaic Forest Management
LinkedIn
February 11, 2024
Category: Forestry
Region: Canada, Canada West

David Beleznay

Congratulations to Mosaic’s David Beleznay, Director of Climate & Watershed, on receiving the Forest Professionals British Columbia Climate Change Innovator Award for his exemplary leadership, knowledge and experience advancing climate change action in and through forestry. “Surrounded by an amazing team and truly humbled by the nomination and award…forests are not inherited from our parents, they are borrowed from our children. There is so much opportunity in our forests to adapt and mitigate for climate change. Look forward to continuing to learn and innovate in this important time,” said Beleznay in a LinkedIn post. 

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Mosaic Forest Management Named One of BC’s Top Employers for Third Consecutive Year

Mosaic Forest Management
February 13, 2024
Category: Forestry
Region: Canada, Canada West

Mosaic Forest Management is pleased to be recognized as one of British Columbia’s Top Employers for the third consecutive year. Award recipients were announced in a special magazine published today and featured in the Vancouver Sun and BC’s Top Employer website. “Earning BC’s Top 100 Employers once again is a great honour for Mosaic Forest Management,” said Rob Gough, Mosaic Forest Management’s President and CEO. “Our focus is building a workplace culture centred on safety and sustainability, ensuring our employees and contractors feel they belong and where team members can contribute their authentic selves.” Many factors contributed to Mosaic securing the third straight BC’s Top Employers award, including its dedication to working alongside and supporting local First Nations, its focus on employee professional development with generous tuition subsidies, student programs and enabling careers in forestry for recent graduates, and its ongoing diversity, equity, and inclusion efforts.

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Canfor’s Kevin Horsnell receives Forest Professionals BC’s Distinguished Forest Professional Award

By Canfor
LinkedIn
February 11, 2024
Category: Forestry
Region: Canada, Canada West

Jamie Jeffreys & Kevin Horsnell

Congratulations to Canfor’s Kevin Horsnell, MBA, RPF, SVP Canadian Operations, on receiving the Forest Professionals BC’s Distinguished Forest Professional Award, the Association’s highest honour, at recent conference in Kelowna. Through his 30 years as a Registered Professional Forester, Kevin has demonstrated his remarkable penchant for relationships, his dedication to professional excellence, and his advocacy for high standards, safety and innovation in all elements of sustainably caring for BC’s forests. “Over the course of his career, Kevin has made a tremendous positive impact on professional forestry and Canfor. He leads with integrity every day and isn’t afraid to challenge the status quo. Kevin is a vocal champion of BC’s forests, Professional Foresters and the sector. I value his honest advice and the meaningful contributions he has made to our company and the industry,” Don Kayne, President & CEO, Canfor. So proud to have Kevin leading the way at Canfor!

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Alberta Fire Chiefs call for unified wildfire strategy

By Anna Ferensowicz
DiscoverAirdrie
February 12, 2024
Category: Forestry
Region: Canada, Canada West

In an open letter to the provincial government, the President of the Alberta Fire Chiefs Association (AFCA), Chief Randy Schroeder has expressed concern over a lack of cohesive wildfire preparedness strategy for the province. According to Chief Schroeder, combatting last year’s wildfire season in Alberta brought forth considerable challenges, highlighting the critical need for a comprehensive and proactive approach to wildfire management. “The AFCA has met with key Ministries presenting specific asks including additional resources, increased training capacity, equipment, and aerials and requesting the establishment of a Provincial Fire Services Advisory Committee to assist in developing a dedicated provincial strategy to better manage and mitigate the risks associated with wildfire seasons.” …He added that that is part of what the AFCA is asking, for ministries to work more cohesively, while also establishing a Provincial Fire Services Advisory Committee.

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Northeast BC First Nations supporting Indigenous-led resource charge

By Tom Summer
The Prince George Citizen
February 13, 2024
Category: Forestry
Region: Canada, Canada West

Doig River and Fort Nelson First Nations have added their voice to several First Nations seeking a new federal tax policy on resource projects. The optional First Nations Resource Charge (FNRC) would see tax revenues collected from indigenous lands go directly to stakeholder nations. Under the Indian Act, tax revenue generated by resource projects is collected by the federal government and then dispersed from Ottawa back to First Nations. The proposal was formally announced in Vancouver last week, and endorsed by Conservative Leader Pierre Poilievre, which he says would speed up negotiations and project approvals, dubbing it a First Nation-led solution to a made-in-Ottawa problem. The proposed charge would allow First Nations to directly collect 50 per cent of the federal taxes paid by industrial activities on their land, with industry getting a tax credit in exchange. The charge would not preclude communities from using other arrangements like impact benefit agreements.

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B.C. minister says land act changes don’t give First Nations veto power

By Wolf Depner
The Vanderhoof Omineca Express
February 12, 2024
Category: Forestry
Region: Canada, Canada West

Nathan Cullen

B.C.’s Minister of Water, Land and Resource Stewardship Nathan Cullen has accused critics of pending First Nations-related legislation governing about 95 per cent of provincial land of fear-mongering. Cullen said these critics hope to turn back the clock to 1950s, adding that resource industry leaders themselves are asking for the kind of certainty in resource dealings with First Nations that the legislation is intended to provide. “My worry is that for some of the political actors here on the right, this is an element of dog-whistle politics,” Cullen said, adding that deliberate misinformation around the issue is hurting B.C.’s reputation. …Critics are accusing the government of not only downplaying the consultation process to avoid attention, but have also raised concerns that government is planning to give First Nations veto power over land decisions. Perhaps the important document making that point is a commentary from Vancouver-based law firm McMillan LLP.

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NDP Land Act changes must be stopped, BC United says

By Kevin Falcon, BC United Leader and Ellis Ross, MLA Skeena
Terrace Standard
February 13, 2024
Category: Forestry
Region: Canada, Canada West

Kevin Falcon

Public Land makes up 95 percent of our province. It belongs to all British Columbians. Whether it’s for recreational access like hiking, camping, fishing, sledding, or hunting, for dock permits, or activities related to mining, forestry, agriculture or ranching, decisions about Public Land impact all five million of us — First Nations and non-First Nations alike. When the NDP introduced UNDRIP legislation in 2019, it promised the Legislature 17 times that it would not amount to a veto. Instead, they said it would align with the Supreme Court of Canada’s ruling that, while government has a duty to consult and — where required — accommodate First Nations, our Constitution does not provide First Nations with veto power over Public Land. …We want to be clear: the blame for all of this lies with David Eby and the NDP, not First Nations who are simply doing the important work of acting in the best interests of their communities.

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B.C. government to share land use authority with First Nations

By Bruce Uzelman, Kelowna, BC
Campbell River Mirror
February 13, 2024
Category: Forestry
Region: Canada, Canada West

Bruce Uzelman

Liberal and NDP governments in Ottawa and Victoria are crafting very progressive agendas. They often have commendable objectives, but they show no regard for the proportionality of the actions taken, and no consideration of the impacts. …A January 2023 press release marked the beginning of another problematic policy. The government wrote that it reached a co-management deal with four First Nations to manage Crown lands in Treaty 8 territories. The release implied the agreement was necessitated by a 2021 Supreme Court decision, which found that Treaty 8 rights had been breached by the impacts of development authorized by the government of B.C. The reforms then and now, however, go far beyond compliance with that court decision. The Eby government now plans to share its authority to make land use decisions with the 203 First Nations across the province. …To facilitate this, the province is planning to make changes to the Land Act. The language describing the changes is confusing.

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Osoyoos’ Nk’Mip Forestry head recognized for wildfire recovery

By Brennan Phillips
Pentiction Western News
February 13, 2024
Category: Forestry
Region: Canada, Canada West

Jamie Jeffreys & Peter Flett 

The head of the Osoyoos Indian Band’s Nk’Mip Forestry company was recognized for their responses to recovering after the Nk’Mip Creek Wildfire in 2021. Peter Flett, the head of forest operations, received the award from the BC Forest Professional Magazine (FPBC) for his article Keys to Improving Forest Recovery Post-wildfire: The Critical Roles of Proper Planning, Implementation, and First Nations’ Collaboration. The award was presented at the annual FPBC conference in Kelowna over Feb. 7 to 9. …Flett’s article delves into how to better collaborate on forest management based on the knowledge he has gained working with members of the OIB community. In addition to recognizing the standout work in Flett’s article, the FPBC recognized Nk’Mip Forestry for its response to the wildfire. The Nk’Mip Creek Wildfire covered over 19,000 hectares of land near Oliver and Osoyoos in 2021.

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Traditional harvesting meets economic development in Timiskaming First Nation

By Lindsay Kelly
Northern Ontario Business
February 13, 2024
Category: Forestry
Region: Canada, Canada East

Timiskaming First Nation is sharing the bounty from its territory through a community initiative that’s both creating a revenue stream and strengthening cultural ties between generations. Through The Wild Basket, community members harvest and cultivate foods in their territory that are then used to produce and sell value-added products like flavoured carbonated water, fresh mushrooms, forest teas, and mushroom soup. “It began in 2013 as a response to how we can better utilize non-timber forest products,” explained Annaleigh Males, the program’s coordinator, during the 2024 Northern Ontario Ag Conference in Sudbury. “We started with the forestry industry and we still work closely with the forestry industry.” The program is an initiative of Ni Dakinan, the natural resources department for the community, whose traditional territory stretches along the northeast side of Lake Timiskaming, extending into both Ontario and Quebec.

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What Should Business Owners Know About the Forest Stewardship Council?

BOSS Magazine
February 13, 2024
Category: Forestry
Region: United States

Companies with certifications from organizations like the Forest Stewardship Council (FSC) will stand out to those environmentally conscious consumers. Every business that wants to stand the test of time must listen to its consumers. Some trends come and go, but eco-friendly products and services are only becoming more popular. Recent research shows that 80% of consumers prioritize sustainability when spending their money. Companies with certifications from organizations like the Forest Stewardship Council (FSC) will stand out to those environmentally conscious consumers. Business owners and industry experts should learn more about the FSC to better understand the benefits it could provide their companies. It may be what a brand needs to demonstrate its sustainable values and retain long-term eco-friendly consumers. …Companies can receive an FSC certification to build better rapport with their consumers and become green industry leaders. These are the primary benefits business owners enjoy after getting this certification.

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The Southern Forest Products Association Streamlines Southernpine.com

By SouthernPine.com
Southern Forest Products Association
February 14, 2024
Category: Forestry
Region: United States, US East

The Southern Forest Products Association has published its newly redesigned website – SouthernPine.com – to provide an easy-to-use, one-stop-shop for all Southern Pine lumber technical guidance, resources, and best-use applications.  SouthernPine.com combines the following sites into a single resource for all things related to Southern Pine lumber: SFPA.org; SouthernPine.com (and the members-only site); Southern Pine Decks; Southern Pine Global; and Raised Floor Living and Raised Floor Living Pro. …The re-envisioned website project, with a focus on Southern Pine lumber technical guidance and resources, came out of strategic visioning and planning the SFPA board of directors conducted in 2020. The new site meets all current accessibility requirements, and all content can be translated into 12 languages to drive Southern Pine lumber’s demand and increase user knowledge around the globe.  

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Fond du Lac Band, university approach accord on forestry center

By Jimmy Lorien
The Duluth News Tribune
February 14, 2024
Category: Forestry
Region: United States, US East

CLOQUET, Minnesota — The University of Minnesota will likely continue to use the Cloquet Forestry Center for a “somewhat lengthy” period after land ownership is transferred back to the Fond du Lac Band of Lake Superior Chippewa. That’s according to Karen Diver, senior adviser to the president for Native American affairs at the University of Minnesota and former chairwoman of the Fond du Lac Band, who updated the land transfer. …The session comes a year after a report to the university’s Board of Regents recommended the center, a 3,400-acre research facility located entirely within the Fond du Lac Reservation, be returned to the Fond du Lac Band. …Some alumni and former employees of the center expressed concern that giving the land back would jeopardize the future of the forestry program, but Brian Buhr, dean, tried to dispel those fears.

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North Carolina Gov. Cooper signs executive order to conserve 1M acres of forests and wetlands

Fox News
February 13, 2024
Category: Forestry
Region: United States, US East

North Carolina Gov. Roy Cooper said a series of environmental directives and goals he initiated to protect and restore forests and wetlands in the state will help counter climate change and aid the economy. Cooper signed an executive order on Monday that in part sets statewide targets for governments and private land-protection groups by 2040 to both “permanently conserve” 1 million acres of forests and wetlands and to restore 1 million new acres of similar lands. The governor also wants 1 million new trees planted in urban areas by 2040. Cooper’s office called the executive action the most significant by a governor to protect the state’s ecosystems since then-Gov. Jim Hunt’s “Million Acre Initiative” for land preservation was announced in 1999. …Among other items, the order from Cooper also directed state agencies to use plants and seeds in landscaping projects that are native to the Southeast, with a preference for North Carolina-native plants. 

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A century of reforestation helped keep the eastern US cool, study finds

By Liza Lester, American Geophysical Union
Phys.Org
February 13, 2024
Category: Forestry
Region: United States, US East

Widespread 20th-century reforestation in the eastern United States helped counter rising temperatures due to climate change, according to new research. The authors highlight the potential of forests as regional climate adaptation tools, which are needed along with a decrease in carbon emissions. ….Before European colonization, the eastern United States was almost entirely covered in temperate forests. From the late 18th to early 20th centuries, timber harvests and clearing for agriculture led to forest losses exceeding 90% in some areas. …About 15 million hectares of forest have since grown sin these areas. …The researchers found that forests in the eastern U.S. today cool the land’s surface by 1 to 2 degrees Celsius (1.8 to 3.6 degrees Fahrenheit) annually. The strongest cooling effect occurs at midday in the summer, when trees lower temperatures by 2 to 5 degrees Celsius (3.6 to 9 degrees Fahrenheit)—providing relief when it’s needed most.

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Blue gum research focuses on engineered timber, fast-tracking plantations to bolster construction shortfall

By Andrew Chounding
ABC News, Australia
February 13, 2024
Category: Forestry
Region: International

Darryl Outhwaite

Australia’s dwindling timber reserves could be exhausted in less than a decade, but industry experts are hoping a new native nursery in Western Australia could help ease the pressure. In the coastal city of Albany, 450 kilometres south of Perth, Form Forests and Environment director Darryl Outhwaite grows native Australian plants for carbon capture and revegetation projects right across the state. The bulk of his trees, however, are destined for blue gum plantations that dot the south-west landscape and feed paper pulp mills. Following the Cook government’s native logging ban, the Albany tree farmer is expanding the nursery from two to three million seedlings a year to keep up with demand, and purchased a mechanised planting machine — the first of its kind in Australia. …Increasing the domestic supply of construction timber has been in the works since 2021, with the state government earmarking 33,000 hectares to grow 50 million trees.

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Carbon, Climate & Bioenergy

Minister ‘confident’ B.C. is adequately preparing for drought, energy needs

By Kylie Stanton and Elizabeth McSheffrey
Global News
February 13, 2024
Category: Carbon, Climate & Bioenergy
Region: Canada, Canada West

British Columbia’s energy minister Josie Osborne is “confident” the province is “taking all the steps that need to be taken” to prepare for what could be another drought-stricken summer followed by more dry summers for years to come. …some continue to sound alarm bells about snowpack levels that are well below average for this time of year, and may not sufficiently replenish the water reservoirs tapped by BC Hydro. “Throughout this drought in 2023, BC Hydro has been planning in real-time to be able to account for this, taking steps like being able to import large amounts of electricity so we can reserve water to be used for energy production during the winter,” said Osborne. …The province imported a record amount of power last year — the equivalent of about two Site C Dams. The advocacy group Energy Futures Initiative suggested B.C. could become an “at-risk” area for power generation by 2026.

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