Daily News for January 09, 2024

Today’s Takeaway

UK to greenlight Drax’s power generation plan, coupling biomass with CO2 capture and storage

The Tree Frog Forestry News
January 9, 2024
Category: Today's Takeaway

The UK government is set to greenlight Drax’s power generation plan, coupling biomass with carbon capture & storage. In related news: Enviva enters 2024 on a tightrope; Sumitomo looks to biodiesel in Japan; Hampton Lumber is buying Rebuilt from Atlas; and the Espanola Action Centre is preparing for more Domtar layoffs. In Market news: wood pellet exports are up; mortgage rates are down, and housing starts are better positioned than you think.

In other news: an Oregon timber tax could pay for wildfire prevention; a new study says Michigan’s forests can support a mass timber plant; Mongabay says Indonesia’s deforestation rates are on the rise again; and an Australian court is set to decide if native forest logging can continue in New South Wales.

Finally, CBC latest to boost NRDC funded study on logging and caribou.

Kelly McCloskey, Tree Frog Editor

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Business & Politics

Power station Drax to win approval for net zero carbon capture plan

By Jonathan Leake
The Telegraph in Yahoo! Finance
January 6, 2024
Category: Business & Politics
Region: Canada, United States, International

Drax is set to stoke renewed controversy as ministers prepare to approve a multibillion-pound CO2 capture scheme it claims would make it “carbon negative”. The scheme has infuriated greens already angered by Drax’s switch from coal to wood. They say Drax’s clear-cutting of forests in North America destroys the environment rather than supporting it. Next week, however, Energy Secretary Claire Coutinho is expected to approve a scheme to bolt two massive carbon capture plants onto Drax’s four generating units, potentially stripping out almost all their CO2 emissions. Drax claims the scheme will make it the world’s first carbon negative thermal power station. Greens claim it will destroy forests. …However, the UK government has repeatedly supported the idea. Its net zero strategy report argues that: “When coupled with carbon capture and storage, it is possible that sustainable biomass can not only enable production of low carbon fuels but could also deliver vital negative emissions.”

Related coverage in/by: 

 

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2023 wildfires were B.C.’s costliest insured event ever at $720M in losses, report says

By Bethany Landsay
CBC News
January 8, 2024
Category: Business & Politics
Region: Canada, Canada West

Two wildfires in B.C.’s southern interior caused more than $720 million in insured losses last year, making them the most costly insured extreme weather event the province has ever seen, according to a new report. Taken together, the McDougall Creek wildfire in the Okanagan and the Bush Creek East fire in the Shuswap region are now the 10th worst natural disaster for insurance payouts on record in Canada, according to the Insurance Bureau of Canada’s (IBC) annual report for 2023. Across Canada, the IBC report estimates that natural catastrophes caused more than $3.1 billion in insured damage, making it the fourth most expensive year on record. …While the destructive wildfires that blazed through B.C. caused the most insured damage of any extreme weather event in Canada last year, the list of 2023’s costliest weather events includes everything from ice storms to flooding

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Former forest products company CEO to become CN’s chief commercial officer

By Bill Stephens
Trains
January 8, 2024
Category: Business & Politics
Region: Canada, Canada East

Remi G. Lalonde

MONTREAL — Canadian National has hired a former forest products company chief executive, Remi G. Lalonde, to lead its marketing and sales efforts. CN, which is the largest hauler of forest products in North America, today named Lalonde as its executive vice president and special advisor to the CEO, a role he’ll hold until he transitions to chief commercial officer later this year. …“The role of CCO is of the utmost importance. The diversity of his experience, including as a railway customer and as a CEO, positions him well to lead the sales and marketing team. He will play an instrumental role in accelerating sustainable, profitable growth,” said CEO Tracy Robinson. As CEO and chief financial officer of Montreal-based Resolute Forest Products, Lalonde executed strategy, managed regulatory matters, engaged with Indigenous communities and stakeholders, headed manufacturing operations, and worked with investors and suppliers. 

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Unifor Action Centre in Espanola helping former Domtar workers find new employment, cope with job loss

By Erika Chorostil
CBC News
January 8, 2024
Category: Business & Politics
Region: Canada, Canada East

Former Domtar employees who are being laid off with the pulp and paper mill’s closure, are receiving help to find new employment. It’s been almost six weeks since the first round of layoffs took place at the mill in Espanola on November 30. In September, Domtar announced it would indefinitely shut down the plant, leading to more than 450 employees losing their jobs. To help workers cope with job losses and find new employment, the Unifor Action Centre was set up and opened its doors in December. …The Ontario government invested $426,000 into the Action Centre. Domtar and Unifor Local 74 are also investing $184,600 into the centre. …Dubreuil said the action centre is planning to hold a number of job workshops in January, in preparation for the second round of Domtar layoffs taking place on January 19. A third round of layoffs is expected in the spring.

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Atlas Holdings Announces Sale of RedBuilt to Hampton Lumber

By Atlas Holdings
PR Newswire
January 9, 2024
Category: Business & Politics
Region: United States

GREENWICH, Connecticut — Atlas Holdings announced that it has entered into a definitive agreement to sell RedBuilt to Hampton Lumber Mills. Atlas formed RedBuilt with the acquisition of the commercial division of Trus Joist from Weyerhaeuser Company in 2009. Over the next fourteen years, the company became an industry leader in the engineering, design and manufacturing of proprietary wood-based structural solutions serving the low-rise commercial construction market. The transaction is anticipated to close in the first quarter of 2024, subject to customary closing conditions. Terms were not disclosed. …Hampton Lumber is a fourth-generation family-owned company with 1,700 employees operating ten sawmills across Oregon, Washington, and British Columbia. …As a subsidiary company, RedBuilt will have our full support as it continues to deliver leading-edge products and building systems and opens up new and important opportunities in green building solutions,” said Randy Schillinger, Hampton Lumber CEO.

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Wood pellet giant enters 2024 amid a financial crisis. So what went wrong at Enviva?

By Gareth McGrath
Star News Online
January 9, 2024
Category: Business & Politics
Region: United States, US East

The next few weeks could shape the future of one of the biggest economic players in Eastern North Carolina. Enviva, the world’s largest wood-to-energy company that supports thousands of jobs in rural communities, is walking a financial tightrope as it enters 2024. The company’s stock price on Thursday was hovering around 80 cents, down 99% from its peak of $87 a share in April 2022. …The company replaced its CEO, announced it would delay completion of a new pellet plant in Mississippi, and hinted the fourth-quarter financials could be even more dismal than the third-quarter numbers. …So what happened to the once high-flying company? Company officials have said a series of factors have combined to chop down the company even as it sells more wood pellets than ever to customers in the United Kingdom, continental Europe and Japan. …the company’s business model has been a target for environmentalists for years.

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Finance & Economics

Global Wood Pellet Markets: 2023 in review and why industrial wood pellets are key for the future

By William Strause
Futuremetrics in Canadian Biomass
January 8, 2024
Category: Finance & Economics
Region: Canada

This review is focused on the industrial sector in which large utility power stations have already successfully completed “bioconversions.” For them coal is history; but dispatchable or baseload generation is not. …The industrial pellet fuel sector has, until 2023, seen steady growth. Even with the estimated dip in exports in 2023, over the last 12 years the market has grown at a more or less steady 14 per cent per year. The dip in 2023 is due to a combination of reasons. The primary reason is due to a significant drop in demand in the U.K. due to the reduction in pellet fueled generation at the Drax and Lynemouth power stations. …North American exports remained on a steady growth trajectory. …Canadian exports have pivoted from the U.K. to Japan. This is a long-expected change that optimizes western Canadian export logistics and the evolution of long-term supply agreements.

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Housing Starts 2023, US and Canada, Not as Badly Battered as One Might Think

By Alex Carrick
Journal of Commerce
January 8, 2024
Category: Finance & Economics
Region: Canada, United States

The negative impact of higher interest rates on U.S. housing starts has been dissipating since late summer 2023, culminating in a near normal month for residential groundbreakings in November. …The uptick in starts is all occurring in the single-family market. The multi-unit marketplace, after showing strength in 2021 and 2022, has recently been sliding. …Interestingly, the numbers on residential building permits are not particularly bullish yet. For total U.S., there was a gradually rising sawtooth pattern throughout 2023, but at a level still way below previous peak. …In Canada, November’s housing starts took a nosedive to 213,000 units annualized from 272,000 in October. The monthly average of housing starts north of the border from January-November 2023 was -8.0% compared with the same period in 2022. Only two provinces saw an increase in housing starts through the eleventh month of last year, British Columbia (+14%) and Nova Scotia (+13%). Ontario stayed flat (0%).

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Pulp, Paper and Packaging Conferences in 2024

ResourceWise Forest Products Blog
January 9, 2024
Category: Finance & Economics
Region: Canada, United States, International

Pulp and Paper

  • TissueWorld – Jan 31 – Feb 2, 2024, Miami, Florida
  • Pulp & Beyond (PulPaper) – April 9 – 12, 2024, Helsinki, Finland
  • TAPPICon – April 28 – May 1, 2024, Cleveland, Ohio
  • International Pulp Week – June 2 – 4, 2024, Vancouver, Canada
  • ZELLCHEMING-Expo – June 18 – 20, 2024, Wiesbaden, Germany

Packaging

  • Sustainability in Packaging – March 6 – 8, 2024, Chicago, Illinois
  • SPC Impact – April 2 – 4, 2024, New Orleans, Louisiana

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B.C. construction industry predicted to be ‘surprisingly robust’ in 2024

By Claire Wilson
Business in Vancouver
January 8, 2024
Category: Finance & Economics
Region: Canada, Canada West

Attitudes about the year ahead for B.C.’s construction industry are looking rosier than expected. Despite economic uncertainties, 87% of B.C. contractors expect 2024 to be as busy – or even busier – compared with last year, according to a survey from the Independent Contractors and Businesses Association (ICBA). “This seems counterintuitive given that we have rolled from one crisis to another in recent years – from the COVID-19 pandemic, to supply chain disruptions, to inflation and then historic increases in interest rates,” said ICBA president Chris Gardner. While forward-looking attitudes for construction are positive, two-thirds of B.C. contractors cite the shortage of people as the biggest challenge in 2024. …Other challenges identified are supply chain issues, with 62% saying that they are experiencing delays. This is in addition to challenges with government red tape with 60% saying that the government is on the wrong track.

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US Consumer Optimism About Mortgage Rates Jumps Significantly

Fannie Mae
January 8, 2024
Category: Finance & Economics
Region: United States

WASHINGTON, DC – The Fannie Mae Home Purchase Sentiment Index® (HPSI) increased 2.9 points in December to 67.2, due primarily to a significant jump in the share of consumers expecting mortgage rates to go down over the next 12 months. In December, a survey-high 31% of consumers indicated that they expect mortgage rates to go down, while 31% expect them to go up, and 36% expect rates to remain the same. Although consumer perceptions of homebuying conditions remain overwhelmingly pessimistic, that particular component of the HPSI ticked up slightly month over month, with 17% of consumers now indicating it’s a good time to buy a home, compared to 14% last month, a survey low. Overall, the full index is up 6.2 points year over year. 

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Wood, Paper & Green Building

Mass timber plant could grow Michigan’s economy with Great Lakes forests

By Sheri McWhirter
Michigan Live
January 7, 2024
Category: Wood, Paper & Green Building
Region: US East

EAST LANSING, Michigan – The forests of Michigan and the wider Great Lakes region grow enough softwood tree species to support a new mass timber facility, researchers found. Michigan State University researchers analyzed data on supply and demand for a new mass timber production facility based in Michigan. …The study was meant to help prospective manufacturers with insights to develop a mass timber production facility in Michigan, officials said. …Researchers outlined two potential counties for such a new manufacturing site, both strategically chosen to take advantage of lumber from both within Michigan and from other areas. The feasibility studies targeted Menominee County in the Upper Peninsula and Wayne County in southern Michigan. Data from 2022 showed an annual demand for 12,400 cubic meters of mass timber in Michigan and the potential to create about 90 jobs either at the factory, sawmills, or other local businesses.

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Holzer Kobler inserts large cubes within timber framework for communal space in Germany

Designboom
January 9, 2024
Category: Wood, Paper & Green Building
Region: International

The Erlebnis-Hus in St. Peter-Ording, Germany, serves as a multi-functional gathering space welcoming people of various ages and backgrounds. Embracing the motto of ‘play within, on, next to, under, and around the house,’ this architectural project by Holzer Kobler Architekturen and landscape architects Uniola integrates sustainability into the extended beach promenade. The architects drew inspiration from the traditional local pile construction methods while infusing it with a fresh perspective. The building features an exposed load-bearing structure crafted from laminated timber, while inside this framework, five large solid wood cubes are strategically positioned at different heights and locations. Each cube is dedicated to a specific function, hosting an analog playground, an information center, a store, a restaurant, an office, and sanitary facilities.

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Forestry

Improving the path to plant two billion trees

By Natasha Bulowski
The National Observer
January 9, 2024
Category: Forestry
Region: Canada

One-fifth of tree-planting projects funded by the federal government’s two billion trees program are Indigenous-led, and there will soon be more thanks to a new funding stream specifically for Indigenous project proposals. The two billion trees program was launched in 2021 and quickly saw “a high level of interest” from Indigenous proponents, mainly First Nations, according to Natural Resources Canada briefing materials obtained by Canada’s National Observer through a federal access-to-information-request. …The Liberal government’s pledge to plant two billion trees by the end of 2030 was one of the party’s prominent campaign promises in 2021.  …Natural Resources Canada said it is on track to plant two billion trees by 2031 and is exceeding its planting goals, with 28.9 million planted in 2021 — 95 per cent of its goal for the first year. …A 2023 audit by Canada’s Commissioner of the Environment and Sustainable Development found the two billion tree pledge is unlikely to be met “unless significant changes are made.”

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Pilot Project Aims to Rehabilitate Wildfire-Affected Forests

Central Chilcotin Rehabilitation Ltd.
January 9, 2024
Category: Forestry
Region: Canada, Canada West

70 Mile, B.C. – In light of the ongoing challenges facing the forest industry … Central Chilcotin Rehabilitation Ltd. (CCR), has recognized the necessity of creating new opportunities within the sector. …Daniel Persson, CCR’s Forestry Superintendent explained that CCR identified the need for wood fibre utilization and rehabilitation work on the vast areas of land devastated after wildfires. …Extracting 7-year-old burned fiber poses significant challenges owing to the brittleness of standing dead trees and complexities in management. Nonetheless, CCR remains confident that it can be achieved, enabling the utilization of fibre for job creation and cost-effective production of biomass products. …The purpose of this pilot project is to help reduce wildfire risk and rehabilitate fire-damaged forests while producing a premium wood chip that will help offset the cost of the operations.

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Resume municipal forest logging

Letter by Glen Ridgway
Cowichan Valley Citizen
January 8, 2024
Category: Forestry
Region: Canada, Canada West

After years of shoveling money of the back of the truck along with the turnips, governments including Justin [Trudeau], David [Eby] and North Cowichan are, at least for radio, TV and newspaper purposes, expressing concern about costs. …So local government should look to other revenue streams. One suggestion would be to accumulate some forest land. Start a sustainable logging/recreation program to provide revenue for the municipality and some jobs and fibre for local industry. In addition to covering the cost of the day to day operation perhaps some money could be set aside … in a reserve fund rising to say $5 to $6 million dollars. Taxes paid by those employed could fund UBC forestry studies into carbon credits or fund heat pumps in Nova Scotia. … Kingsview viewscapes may be impacted but it will help reduce property taxes. Give it some thought but please don’t get those UBC guys to study it.

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Four Pemberton trails to close for fuel thinning around One Mile Lake

By Roisin Cullen
The Pique News Magazine
January 8, 2024
Category: Forestry
Region: Canada, Canada West

Four popular Pemberton trails will close this month to allow for fuel thinning around One Mile Lake. Spel’kúmtn Community Forest and Líl’wat Forestry Ventures will start the work on Monday, Jan. 8. Incorporated in 2019 as a limited partnership between the Lil’wat Nation and Village of Pemberton (VOP), the Spel’kúmtn Community Forest is a community-led forest located on 17,727 hectares of unceded, traditional Lil’wat land that is designed to promote reconciliation and increase benefits to the respective communities. …The project is part of ongoing work to reduce forest fire risk to Pemberton and its residents. It encompasses high-hazard forest land. The group aims to reduce the rate of spread and intensity of possible fires in the area, while maintaining ecological and cultural values. They also want to enhance public safety and firefighters’ ability to control possible fires.

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Clear cutting threatens woodland caribou, scientists warn

CBC News
January 7, 2024
Category: Forestry
Region: Canada, Canada East

Extensive boreal forest logging is putting increased pressure on already threatened woodland caribou. Much of the 14 million acres logged in Ontario and Quebec are old-growth forests the dwindling population needs to survive.

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Proposed tax for timber companies would pay for wildfire prevention, response

By Makenna Marks
KDRV ABC Newswatch 12
January 5, 2024
Category: Forestry
Region: United States, US West

ASHLAND, Ore. — State Senator Jeff Golden, D-Ashland, wants to tax timber companies to acquire funding for wildfire prevention and response programs. Golden … said Oregon needs to make sure its communities have enough resources to protect its residents from wildfires. He said it’s much cheaper to prevent wildfires than it is to recover from them. …According to Golden, the proposal is similar to the timber severance tax that was eliminated decades ago. Golden said some parts of the timber industry help local economies but there are other parts of the industry that are solely focused on profit. …Golden said there are still some details to figure out but told NewsWatch 12 the tax would total a rough estimate of $75 million. …Ultimately, Golden wants his tax proposal to end up on the November 2024 ballot, so Oregonians can decide for themselves.

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Vermont Department of Forests, Parks, and Recreation partners with researchers in innovative forest adaptation project

By Vermont Department of Forests, Parks, and Recreation
Vermont Business Magazine
January 8, 2024
Category: Forestry
Region: United States, US East

The Vermont Department of Forests, Parks, and Recreation (FPR) is beginning an innovative project in the Camel’s Hump Management Unit, as outlined in the 2021 Long-Range Management Plan. This project …is designed to demonstrate an important approach in increasing forest resilience to climate change and invasive pests. Collaborating with the University of Vermont (UVM) and the Northern Institute of Applied Climate Science, this project is part of a series of forest adaptation experiments being implemented across the Northeast. Tony D’Amato, Professor and Director of the Forestry Program in the Rubenstein School of Environment and Natural Resources at UVM, is a lead researcher on the project. “This project aims to address the dominance of poor quality American beech suffering from beech bark disease and use forest management tools such as timber harvests to allow other species to thrive,” said Oliver Pierson, FPR’s Director of Forests.

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Federal court decision on native forest logging to be handed down in landmark case tomorrow

The Greens, New South Wales
January 9, 2024
Category: Forestry
Region: International

AUSTRALIA — On January 10th, the Federal Court will hand down the decision …on the validity and continuation of native forest logging in New South Wales. The March 2022 case was brought by the North East Forest Alliance (NEFA) against the Commonwealth of Australia and the State of NSW in the first ever legal challenge to a Regional Forest Agreement (RFA) in NSW. NEFA challenged the 2018 decision to extend the North East RFA on the grounds that the Commonwealth and State failed to assess the impacts of industrial scale logging on climate change, endangered species and old growth forests, despite it being required to do so. Greens MP Sue Higginson said, “no matter the decision, it is clear from the evidence presented that the logging of our public native forests is happening under outdated laws that have not considered climate change and are facilitating the destruction of critical habitats for threatened species and ecosystems.”  

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Reversing progress, Indonesia pulp & paper drives up deforestation rates again

By Hans Nicholas
Mongabay
January 9, 2024
Category: Forestry
Region: International

JAKARTA, Indonesia — After years of declining deforestation, forest loss caused by Indonesia’s pulp sector is on the rise again, showing a fivefold increase in 2022 compared with 2017 levels, a new analysis shows. In the 1990s and 2000s, Indonesia’s pulp and paper industry was among the country’s primary drivers of deforestation. …In recent years, in light of public pressure, an increasing number of producers and buyers of wood pulp and paper have adopted zero-deforestation commitments, notably two of the country’s largest producers: Asia Pulp & Paper (APP), and Asia Pacific Resources International. The corporate commitments to stop deforestation were followed by dramatic declines in deforestation, with the average deforestation rate falling by 85%. …However, wood pulp-driven deforestation started to rise again beginning in 2017, spiking nearly fivefold between 2017 and 2022, according to the analysis by Trase. The uptick in deforestation is likely to be driven by an increase in wood consumption.

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Carbon, Climate & Bioenergy

Sumitomo eyes biodiesel mass production in Japan for decarbonization

By Keigo Yoshida
The Nikkei Asia
January 9, 2024
Category: Carbon, Climate & Bioenergy
Region: International

TOKYO — Trading house Sumitomo Corp. is looking to mass-produce biodiesel in Japan using wood and sugarcane waste, in a bid to give the hard-to-make renewable fuel more of a foothold in the country. The Japanese trading house plans to open a demonstration plant in 2025 on the southern island of Tanegashima with the University of Tokyo and Solariant Capital, a U.S. renewable energy development and investment company. After testing and getting mass production underway, the company plans to gradually increase output starting in fiscal 2027, aiming to eventually reach 1 million tonnes per year. The facility will use wood from tree thinning and sugarcane bagasse — a fibrous residue — from a Tanegashima factory owned by Sumitomo group company Shinko Sugar. The feedstock will be blended with fuel oil.

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