Daily News for June 10, 2020

Today’s Takeaway

Buyers pull back, sit on inventory amid civil unrest

June 10, 2020
Category: Today's Takeaway

Civil unrest led to most North American buyers sitting on whatever inventory they had last week. In related news: high lumber prices are a sign that demand exists and; combined with lower sawlog costs is leading to improved profitability worldwide. In other Business news: work is underway to save C&C Wood Products; Clearwater Paper’s Lewiston plant upgrade fails to deliver savings; and Maine’s TREE Foundation has a new executive director.

In other news: Biomass generated electricity is expected to grow in the US; Go Lab—Maine’s new wood fibre insulation venture—is delayed another year; and the staggering value of forests—and how to save them.

Finally, a stone-carved arrowhead dating back 7000 years found near Williams Lake, BC.

Kelly McCloskey, Tree Frog Editor

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Business & Politics

Helping the forest industry learn from the pandemic

FPInnovations Blog
May 29, 2020
Category: Business & Politics
Region: Canada

The COVID-19 pandemic has upset all our ways of doing things and shattered all our gains. In a short period of time, the world’s population has had to change its lifestyles and must now learn to live with a “new normal”. …In order to determine how the forest sector could contribute to the urgent need for essential equipment, FPInnovations asked a team of researchers to develop an action plan involving a very short timeframe to produce safe face coverings and packaging. The approach is based on the conviction that the pulp and paper sector, by transforming its operations, has the capacity to quickly respond to sudden demands for large quantities of products, as is the case for face coverings for the general population. This response is also supported by a guarantee of a national supply of raw material, which is provided by wood fibre from Canada’s forests.

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Goods still flowing through northern B.C, despite pandemic slowdown

The Prince George Citizen
June 9, 2020
Category: Business & Politics
Region: Canada, Canada West

PRINCE RUPERT, BC — The COVID-19 has caused a slowdown of the global economy but, despite that, cargo volumes moving through the Port of Prince Rupert are on a record pace. In 2019 the port had its best year to date, moving 29.9 million tonnes of cargo. During the first four months of 2020, 12.6 million tonnes of goods shipped through Prince Rupert – up nine per cent compared to last year, a statement issued by the port on Tuesday said. …The biggest increase has been at Ridley Terminals, a bulk cargo terminal handling exports of metallurgical and thermal coal, petroleum coke and liquefied petroleum gas. …The strong global demand for wood pellets has prompted 24 per cent growth in volume at Pinnacle Renewable Energy’s pellet loading facility at Westview Terminal.

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Quesnel Mayor says work is underway to try to save C&C Wood Products

By George Henderson
My Cariboo Now
June 8, 2020
Category: Business & Politics
Region: Canada, Canada West

Bob Simpson says work is underway behind the scenes to try to save the specialty mill and the logging operation that it runs. But now that the company has declared bankruptcy, Simpson says there is a time crunch. “…we have about 4 to 6 weeks … for the trustees, so PricewaterhouseCoopers, on behalf of everybody who is owned money by the parent company Calidus, to be able to pay them out.” Simpson says there are really only two possible outcomes.  “One, an appropriate buyer and price is established and the mill …goes back into operation again.   There is also need to get that done quickly because the kinds of purchases that they feed the product into won’t have a whole lot of patience for any supply interruption.  …And then the worse case scenario for us is the mill is permanently shuttered and cannibalized and we lose all of those jobs in our community.”

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Upgrade doesn’t yield expected savings for Clearwater Paper

By Elaine Williams
The Lewiston Tribune
June 9, 2020
Category: Business & Politics
Region: United States, US West

Clearwater Paper executives acknowledged Monday they don’t expect a $160 million upgrade finished in 2017 at their Lewiston plant to save as much money as they anticipated. Three years ago, the company replaced 12 batch pulp digesters installed at various times with a single continuous pulp digester and other equipment. Pulp from the digester feeds Clearwater Paper’s tissue and paperboard operations in Lewiston, which employ 1,200 people. …The project was expected to save Clearwater Paper $30 million a year, but so far it’s reduced the company’s expenses by $10 million annually. …Despite the setback in Lewiston, Clearwater Paper is doing well. The company believes its adjusted earnings before interest, taxes, depreciation and amortization will be higher than anticipated for its second quarter that runs from April through June.

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LaBonte hired as Maine TREE Foundation’s new executive director

By Maine TREE Foundation
Bangor Daily News
June 9, 2020
Category: Business & Politics
Region: United States, US East

Jonathan LaBontéThe Maine TREE (Timber Research and Environmental Education) Foundation is pleased to announce that Jonathan LaBonte of Auburn has been hired to join the staff as the new executive director effective July 1. LaBonte joins Maine TREE after extensive community and natural resource-based work with state government, the Androscoggin Land Trust and others, including three terms as mayor of the City of Auburn. Since first earning his degree in chemical engineering in the University of Maine’s pulp and paper program, he has built a career developing partnerships to ensure community and organizational successes in and around his hometown, spanning public health, transportation, economic development, natural resources and recreation. …Maine TREE is an independent, private, 501c3 non-profit, and the state’s pre-eminent statewide leader in educating and advocating for the sustainable use of the forest and the ecological, economic, and social health of Maine’s forest community.

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Ban on round log exports not supported by law

By Jeffrey Elapa
Papua New Guinea Post-Courier
June 10, 2020
Category: Business & Politics
Region: International

The ban on round log exports to take effect this year is not supported by law and has to be deferred to 2025, Parliament has been told. Forest Minister Solan Mirisim told Parliament that there was no policy or legislative amendment initiated by the former government in order to implement the proposed ban on round logs starting this year. …When the Marape-Steven Government came in, the Prime Minister said to stop all round log exports, so we are now working on it to set things in order to repeal the laws and gradually build the downstream processing plants. …The Minister was responding to several Questions Without Notice from Oro Governor Gary Juffa, who wanted to know if the proposed 2020 round log ban would take effect or not, and on issues relating to two alleged illegal timber permits and operation in his province.

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Govt Ignoring Forestry Industry’s Concerns

By New Zealand National Party
Scoop Independent News
June 10, 2020
Category: Business & Politics
Region: International

Hamish Walker

The Government is failing to acknowledge the valid concerns raised about its rushed and unpractical forestry regulation bill, which has led to the industry sending the Prime Minister an open letter pleading for the bill to be delayed, National’s Forestry spokesperson Hamish Walker says. “The Bill was introduced during urgency and has been rushed through Parliament even faster than the March 15th gun reforms. Out of 640 submissions only 11 are supportive of the Bill, meaning almost 98 per cent of submitters oppose it. The New Zealand Forest Owners Association has drafted an open letter to the Prime Minister asking her to step in and allow a proper consultation process for the Bill. …The Prime Minister needs to take note of the letter that she has been sent and her Government needs to delay this Bill to ensure a proper consultation process takes place.”

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Finance & Economics

Buyers pull back, sit on inventory amid civil unrest

By Madison’s Lumber Reporter
Wood Business – Canadian Forest Industries
June 9, 2020
Category: Finance & Economics
Region: Canada, United States

Sales of Western-Spruce-Pine-Fir construction framing dimension softwood lumber in the US took a step back last week as civil unrest around the country led to most buyers taking a circumspect approach, by sitting on whatever inventory they had. …As indicated by Madison’s last week, in the immediate term it is panel — specifically plywood — prices which will provide indication of upcoming demand for softwood lumber. Benchmark panel item Oriented Strand Board prices remained flat last week but Canadian Softwood Plywood 3/8” Toronto rose another +$8, or +2 per cent. …For the week ending June 5, 2020, prices of most standard construction framing dimension softwood lumber items remained flat, with benchmark item WSPF 2×4 #2&Btr KD still at US378 mfbm, as the week before. 

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Lumber Producers in Many Key Regions Around the World Experienced Slight Improvements in Profitability in Early 2020, Mainly Driven by Higher Prices

By Wood Resources International LLC
Cision Newswire
June 9, 2020
Category: Finance & Economics
Region: Canada, United States

STOCKHOLM — …The important US market saw improvements in lumber prices in 2019 and early 2020, while sawlog prices fell. This made it profitable again for BC many sawmills to produce lumber. Profits for sawmills in the US South reached record highs in 2018 but have since fallen substantially. …Net wood costs have remained practically unchanged for almost ten years, while lumber prices have fluctuated dramatically, thus making lumber prices the main driving factor for profitability in the sawmill sector in the region. …Profit margins fell substantially for sawmills producing construction lumber in Brazil, New Zealand, Austria, Sweden and the US South during 2019 but saw some improvements in early 2020. 

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Southern Timber Price Update: Pine & Hardwood Products Diverge in 1Q2020

By Mike Powell
Forests2Market Blog
June 10, 2020
Category: Finance & Economics
Region: United States

After experiencing a wild ride during 1Q2019, southern timber prices diverged by product type a year later in 1Q2020. …On a Southwide basis, pine pulpwood prices increased +0.8 percent to $8.89/ton during 1Q2020. …Pine chip-n-saw prices jumped to $18.02/ton on a Southwide basis, an increase of +8.6 percent. …Southwide hardwood sawtimber prices continued to slide by dropping -7.0 percent to $35.42/ton. …Lumber prices have skyrocketed in recent weeks, a sign that demand exists somewhere in spite of an outright shutdown of the American economy since mid-March. However, this trend has been driven largely by tight inventories on the supply side.

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Wood, Paper & Green Building

American Wood Council Releases Seven Updated Wood Product Environmental Product Declarations

By American Wood Council
EIN News
June 9, 2020
Category: Wood, Paper & Green Building
Region: Canada, United States

LEESBURG, Virginia — The American Wood Council has released seven updated cradle-to-gate, industry-wide environmental product declarations (EPDs) for wood products. These third-party verified updates replace the 2013 editions previously available for use in determining the environmental footprint of the industry’s principal products, as well as with green building rating systems and sustainable construction standards. Six of the EPDs were developed jointly by AWC and the Canadian Wood Council and cover lumber, plywood, oriented strand board, laminated veneer lumber, I-joists, and glued laminated timber. The redwood lumber EPD was developed by AWC and replaces the previous cradle-to-grave EPD for redwood decking. …“EPDs are standardized tools that provide that information based on life cycle inventory data,” said AWC VP Kenneth Bland. 

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Wood Fiber Insulation Launch Pushed to 2021

By Scott Gibson
The Green Building Advisor
June 9, 2020
Category: Wood, Paper & Green Building
Region: United States, US East

MAINE — Builders eager to get their hands on wood fiber insulation produced on this side of the Atlantic will be waiting until the end of next year before it becomes available. GO Lab is now repurposing a shuttered paper mill in Madison, Maine, and is on track to become the first North American producer of a type of insulation that’s available only as a European import. The company, which first announced its plans in 2017, says it will close on $60 million in financing in late July or August. But engineering, financing, and other parts of the business have come together more slowly than the company originally thought, pushing the start of production of loose-fill and batt insulation to the fourth quarter of 2021 and to late 2022 or early 2023 for board insulation. 

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Use Wood To Achieve Zero Carbon Construction

By New Zealand Forest Sector Forum
Scoop Independent News
June 10, 2020
Category: Wood, Paper & Green Building
Region: International

As the spotlight falls on Forestry, as one of New Zealand’s biggest industries to help revive the economy post lockdown, the New Zealand Forest Sector Forum is asking the question – why isn’t NZ using more locally-sourced wood, and getting behind its zero-carbon construction properties? We’ve got to use more wood in NZ, reversing the reliance on concrete and steel in our construction. Only by doing this will we mitigate the effects of climate change, increase the use of a naturally renewable resource and strengthen regional economies. Not only is wood locally produced, supporting approximately 30,000 jobs, but wood is the best choice for the environment. …Using locally grown timber helps reduce its carbon footprint, as there are no emissions from transporting timber from offshore. …With such a reliance on concrete and steel in current construction, the NZ Forest Sector Forum is asking the question – why don’t New Zealanders use more wood?

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Forestry

Ancient arrowhead discovered near Williams Lake

By Rebecca Dyok
Prince George Citizen
June 8, 2020
Category: Forestry
Region: Canada

Ancient, stone-carved projectile pieces dating back several millennia continue to be exposed this week south of Williams Lake from the large piles of soil moved during work to put in a drainage ditch after a small landslide in the area last year. A power screen plant was used by staff of Sugar Cane Archaelogy to mechanically sift through the dirt for the hidden gems, unearthing hundreds of finds which date back to when the mid-Fraser River area was occupied by large, First Nations villages. …An intact arrowhead which she said is one of the oldest to have been recovered is believed to be from the Nesikip Period between 7,500 to 6,000 BP (before present). …This period, Spearing said, is associated with the development of a unique, cultural system including the use of micro-blades and notched projectile points.

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Forest Discovery Centre reopening Friday in Duncan

By Andrea Rondeau
Cowichan Valley Citizen
June 9, 2020
Category: Forestry
Region: Canada, Canada West

The BC Forest Discovery Centre is reopening to the public beginning Friday. The 100-acre site located just outside of Duncan has set out a plan and a schedule for a phased reopening, with the first phase to start Friday, June 12 and run until Monday, June 15. Like many other businesses and attractions, the FDC was closed in March due to COVID-19. …While all amenities will be available for visitors by the end of June, special summer events have been cancelled due to COVID-19. “The safety of our staff, volunteers and guests is of paramount importance to us, and we will be implementing safety protocols to help keep everyone healthy,” a press release from the FDC said. “We suggest you visit our website before planning your trip to the Centre for a full explanation of our safety plans.

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Wildfire preparedness project launched by Cheslatta Carrier Nation

By Priyanka Ketkar
Burns Lake District News
June 10, 2020
Category: Forestry
Region: Canada, Canada West

The devastating effects of B.C. wildfires have shaken the rural communities over the past few years. Cheslatta Carrier Nation, which is located on the southside of Burns Lake, brainstormed over ideas to combat these wildfires and come up with an initial emergency response — the result of which is eight wildfire equipment trailers and one industrial trailer. “In case there is an accidental spark, or a power line falls, and a fire starts, or even during the wildfire season, then we want the community to have some initial response available with them, before the fire services or forest service arrive on the scene,” said Mike Robertson, Senior Policy Advisor for Cheslatta Carrier Nation. …The trailers were made possible by a donation from Rio Tinto, who operate the Nechako Reservoir, in a Cheslatta territory.

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Dungate Community forest continues to pursue expansion

By Rod Link
Houston Today
June 10, 2020
Category: Forestry
Region: Canada, Canada West

The Dungate Community Forest is taking its plan to enlarge its annual allowable cut to Houston and area residents in hopes of gathering support as it continues to press the provincial government for approval. With the District of Houston as the majority owner of the community forest, its expansion plan fits with the District’s long-standing vision to secure a wood supply stabilizing employment and providing revenues for community projects. That vision was accelerated in 2014 when the West Fraser-owned Houston Forest Products sawmill closed, resulting in both job loss and property tax loss to the District. That closure was part of a business deal with Canfor which saw it close a mill in Quesnel with Canfor then acquiring West Fraser’s timber rights in the Houston area and West Fraser acquiring Canfor’s timber rights in the Quesnel area.

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Two new coastal forestry programs launching at North Island College this fall

The Campbell River Mirror
June 9, 2020
Category: Forestry
Region: Canada, Canada West

CAMPBELL RIVER, BC — Students interested in working in the woods can get their start this fall through two new programs at North Island College (NIC). The Coastal Forest Worker certificate and the Coastal Forest Technology diploma will launch at NIC’s Campbell River campus in October. The new four-month Coastal Forest Worker certificate provides entry-level training and job-ready skills for those interested in getting into the industry. Developed in collaboration with the BC Forest Safety Council, NIC’s certificate includes the BCFSC entry-level skill program competencies and adds basic forest engineering, timber cruising and technology skills. The two-year Coastal Forest Technology diploma allows students to expand their knowledge, skills and training to keep pace with the latest practices and technologies in the BC Forest Sector and prepares students for professional accreditation as a Registered Forest Technician.

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Optimistic Outlook For Northern Forest Industry

By Mike Ebbeling
CKDR 92.7 FM Dryden
June 10, 2020
Category: Forestry
Region: Canada, Canada East

Derek Nighbor

The Forest Products Association of Canada believes the future for the industry is bright. President and CEO Derek Nighbor says demand is high right now. “Our pulp mills are really producing. That’s really, really important. But we’re going to need some stimulus and some additional supports to keep our mills competitive.” Nighbor stresses in order for the sector to really take off, more government help will be required. “How can we make sure our mills are getting the support they need to be efficient and innovative and ready for tomorrow’s market. So that’s our hope for the mill in Dryden and mills across the country. That we can work with the federal and provincial governments to continue to improve these mills right into the long haul.” Nighbor notes they are fortunate to have a great working relationship with both levels of senior government.

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The Staggering Value of Forests—and How to Save Them

By George Kappen et al
Boston Consulting Group
June 9, 2020
Category: Forestry
Region: United States, International

The world’s forests—which today cover 30% of the earth’s land surface—are an incredibly valuable resource, storing massive amounts of carbon, helping to purify water and air, ensuring natural biodiversity, and providing livelihoods for millions of people. But despite the vital importance of forests, they are under worldwide assault. In response to the growing crisis, BCG conducted a comprehensive analysis to answer three questions: What is the financial value of global forests? What are the biggest threats to that value? How and to what extent can we preserve the value of forests? …Among our findings: The estimated total value of the world’s forests is as much as $150 trillion—nearly double the value of global stock markets. …The most serious threats are… land use changes and rising global temperatures, major drivers of deforestation, will actually be the main causes of forest value losses.

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Northern Arizona forests set to tighten fire restrictions amid wildfires

The Associated Press in Fox 10 Pheonix
June 10, 2020
Category: Forestry
Region: United States, US West

FLAGSTAFF, Arizona — National forests in northern Arizona are expanding fire restrictions because of dry conditions ahead of the anticipated arrival of the monsoon season. Campfires have been prohibited across all six national forests in Arizona since late April because of the coronavirus pandemic. The U.S. Forest Service said the ban that expires June 30 would help ensure firefighters wouldn’t be tied up responding to human-caused wildfires. …The restrictions will remain in place until the forests receive significant moisture that would reduce the risk of wildfire, officials said. Anyone violating the restrictions could face up to $5,000 in fines and six months behind bars. …The monsoon season — a weather pattern that carries high hopes for rain — typically arrives in Arizona in mid-June. 

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Carbon, Climate & Bioenergy

Exciting results from the CanmetENERGY energy optimization partnership

By Enrique Mateos-Espejel, Senior Scientist at FPInnovations
FPInnovations Blog
June 9, 2020
Category: Carbon, Climate & Bioenergy
Region: Canada

In 2018, FPInnovations had published an article about its successful and promising partnership with Natural Resources Canada’s CanmetENERGY. The partnership is still going strong and continues to stimulate the Canadian pulp and paper industry by collaborating on integrated energy optimization studies to maximize efficiency, increase the sale of green power, reduce greenhouse gases (GHG), debottleneck production and facilitate the diversification of products. The results obtained through this collaboration are still very exciting. Since 2018, six other mills have been evaluated, and the total potential savings of the identified energy optimization projects was of $6.4 million/year. This represents a reduction of 68.2 kt direct GHG emissions/year. The implementation rate of the projects identified, which is the number of projects implemented or in course of implementation, is of 52% of the total. “We have been focusing on helping the mills implement the energy saving opportunities we previously identified”, says Enrique Mateos-Espejel, Senior Scientist at FPInnovations.

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Growth in renewable power expected to continue

By Erin Voegele
Biomass Magazine
June 9, 2020
Category: Carbon, Climate & Bioenergy
Region: United States

U.S. electricity generation from renewable sources is expected to reach 21 percent in 2020 and 23 percent in 2021, up from 17 percent in 2019, according to the U.S. Energy Information Administration in its latest Short-Term Energy Outlook. Electricity generation from natural gas is expected to increase to 41 percent. …In the electric power sector, biomass is expected to be used to generate 26.9 billion kilowatt hours of electricity this year, increasing to 28.8 billion kWh next year. Biomass was used to generate 28.8 billion kWh of electricity in 2019. That volume of consumption includes 15.2 billion kWh from waste biomass and 11.7 billion kWh from wood biomass this year, with production from wood waste biomass increasing to 15.5 billion kWh and production from wood biomass increasing to 13.2 billion kWh in 2021. Approximately 15.7 billion kWh from waste biomass and 13 billion kWh from wood biomass was generated last year.

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Finland’s consumption of recycled wood increased in 2019

Lesprom Network
June 9, 2020
Category: Carbon, Climate & Bioenergy
Region: International

Finland’s consumption of forest industry by-products and wood residues increased by 1% from the previous year to nearly 12 million cubic metres in 2019. The consumption of bark totalled 7.9 million cubic metres, while different types of sawdust were consumed a total of 2.5 million, industrial chips 1.2 million and other industrial by-products 0.2 million cubic metres. Wood pellets and briquettes consumption amounted to 0.2 million cubic metres, according to the Natural Resources Institute Finland. …“Proportionally, the use of recycled wood in energy generation increased the most, by 13%, and totalled just over one million cubic metres. During the preceding ten-year period, the burning of recycled wood has more than doubled.”

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