The UK renewed its support for Drax’s biomass power generation with lower subsidies and sustainability assurances. In other Business news: BC forest sector faces uncertainty as US tariffs loom; BC and Ontario First Nations add their voice to those expressing concern; and President Trump adds to trade uncertainty with new tariffs on steel and aluminum. Meanwhile, San Group creditor wants control of businesses connected to the company; and Thunder Bay Pulp and Paper names Bill MacPherson CEO.
In Forestry news: Canada invests to monitor active wildfires; BC invests in professional practice standards for wildfire prevention; the Doris Duke Foundation invests in SFI’s climate smart forestry practices; and a new study says North America forests still suffer from a fire deficit.
Finally, Forest Professionals BC recognized four Distinguished Forest Professionals at its 77th conference.
Kelly McCloskey, Tree Frog Editor
Vancouver —Forest Professionals British Columbia (FPBC) honoured 11 individuals as part of its recognition program in Victoria on February 6. FPBC recognized four Distinguished Forest Professionals, one Forest Professional of the Year, one volunteer of the year, and five authors for best magazine article at the 77th FPBC forestry conference recognition banquet. Mark Hay, RPF, of Vernon, Steve Kozuki, RPF(Ret), of Williams Lake, Randy Waterous, RFT, of Grand Forks, and the late Cindy Stern, RPF, of Parksville, were honoured as Distinguished Forest Professionals. This category recognizes significant accomplishments over a career, for providing outstanding service to the profession of forestry and for furthering the principles of FPBC. It is the profession’s highest honour for a registrant. Colin Mahony, PhD, RPF, of Victoria, is the Forest Professional of the Year, recognizing a Registered Professional Forester (RPF), Registered Forest Technologist (RFT), or Affiliated Forest Professional (AFP) for recent, outstanding service to the profession of forestry and furthering the principles of FPBC.
The largest creditor of the San Group wants to take control of some other Vancouver Island businesses connected to the former sawmill company. Kingsley Group operates in Coombs, and court documents show that it has some close ties to the San Group. The Royal Bank of Canada, which is owed $6.7 million from the Kingsley Group, wants to recall its loan and secure the company’s assets. The bank is owed more than $107 million from the San Group. It comes as the San Group’s Alberni Valley mills remain for sale as a court-appointed-monitor tries to drum up interest. …Kamal Sanghara and Sukhjit Sangara are directors with a 32.5 per cent stake each in Kingsley Group, and both are former owners of the group. …CHEK News spoke with Sukhijit Sanghera, a former owner of San Group at Kingsley, and asked if the San Group moved money to Kingsley Trucking and other places to hide assets or prop up Kingsley’s business.
British Columbia’s lumber industry is facing uncertainty, as looming tariffs threaten the sector. “We don’t know what’s going to happen, businesses don’t like that because you can’t make investment plans,” said Nick Arkle, CEO of Gorman Bros. Lumber. …“About 60 per cent of our lumber in B.C. for the last couple of years has been going to the U.S., which in a way is funny because we have the president saying ‘We don’t need their trees.’ Well, that’s false,” BC Forest Minister, Ravi Parmar said. Gorman Bros. Lumber in West Kelowna sends about 50 per cent per cent of its product to the States, while about 30 per cent stays in Canada. “The U.S is a strong market, you never want to walk away from a market, where first of all you have loyal friends, partners, and customers, people we’ve sold to for 30 to 40 years in some cases,” Arkle said.
The U.S. market accounts for 5-10% of Sweden’s forest industry exports, depending on the segment, meaning the direct impact of potential new tariffs remains limited, said Christian Nielsen, market analyst for wood products at Swedish Forest Industries Federation. The U.S. relies on imports for 25% of its lumber consumption, primarily from Canada. Higher tariffs on Canadian wood could raise costs for American consumers while improving the competitive position of European suppliers. However, Nielsen noted that future tariffs directly targeting EU exports remain uncertain. In the pulp and paper sector, the U.S. could rely entirely on domestic production, reducing the need for imports. Sweden currently exports 7% of its pulp and 5% of its paper and board products to the US. In total, Sweden exports 92% of its paper and board production, and global trade flows could be affected by tariff changes. [END]
A 30-day delay in implementation of tariffs on Canadian shipments to the US reset recent trends in framing lumber markets. Sales picked up in most regions and species, but higher quotes early in the week retreated nearer to last week’s levels. Western S-P-F sales were mixed, but several secondaries reported their strongest days of the year as buyers padded relatively thin inventories with insurance loads. Prices remained close to last week’s levels, but supplies of some items tightened in late trading. Lumber futures swung from extreme volatility Monday and Tuesday to an upward trend towards the end of the week. The threat of tariffs drove prices up, but selling commenced after the delay. The biggest gains were posted in green Fir, where a supply-side rally pushed Std/#2&Btr dimension prices $15-35 higher. The Random Lengths Framing Lumber Composite Price posted another modest adjustment, finishing $5 higher. Most Southern Pine producers throttled back quotes.
A 13-storey high-rise approved for development in Sydney is slated to become the tallest commercial mass timber building in New South Wales. The building has been designed by architecture and urban design practice Tzannes for property developer NGI Investments. …The weight of the building was a significant consideration during the design process. The structure needed to be lightweight as the site is located above subterranean railway tunnels. Tzannes’s approach for addressing has involved transferring the load from the building’s western side to a central core using a hybrid concrete and steel structure. This system then supports 12 timber commercial floors, with 11 levels rising above the load transfer structure and one suspended below. According to a communique issued by Tzannes, “all timber and steel elements will be crafted for future disassembly and reuse.”
Len Apedaile, RPF, is the general manager of Tiičma Forestry, a small market logger based up in Ka:’yu:’k’t’h’/Che:k’tles7et’h’ First Nations (KCFN) territory on Vancouver Island’s north coast. He thinks, if anything, the American tariffs scenario of 25% on all Canadian imports will give businesses the opportunity to re-evaluate how they fundamentally do things. …“This doesn’t happen overnight, but I think that you’ll see that this will spur on those efforts over time,” said Apedaile. …“We really don’t understand where these tariffs are coming from because they just don’t make sense for the Americans or us. …Tiičma Forestry operates in a high-cost area of Vancouver Island. The relatively new First Nations forestry company sells west coast old and second growth logs to a Terminal Forest Products sawmill on the mainland who exports primarily to the U.S.
Washington D.C.–The Sustainable Forestry Initiative (SFI) is proud to announce a groundbreaking new project to advance climate smart forestry practices across the United States, supported by a generous investment of over $800,000 from the Doris Duke Foundation. The project, Advancing Carbon Stewardship Practices for Large Landowners in the United States, will use a forest sector-focused approach to advance forest management and conservation activities to both enhance the carbon sink and reduce sources of emissions from forests. Forests … are experiencing increased frequency and severity of fire, drought, pest outbreaks, and disease—all of which negatively impact forest and community health, economic development, and resiliency while threatening our safety. “We are so thankful for this investment from the Doris Duke Foundation to leverage our network, scale, and the SFI Forest Management Standard, which includes progressive requirements on climate and fire,” said Kathy Abusow, President and CEO of SFI. 
The UK government has agreed a new funding arrangement with the controversial wood-burning Drax power station that it says will cut subsidies in half. …The new agreement will run from 2027 to 2031 and will see the power station only used as a back-up to cheaper renewable sources of power. …The government says the company currently receives nearly a billion pounds a year in subsidies and and predicts that figure will more than halve to £470m under the new deal. …The new agreement also states that 100% of the wood pellets Drax burns must be “sustainably sourced” and that “material sourced from primary and old growth forests” will not be able to receive support payments. All the pellets Drax burns are imported, with most of them coming from the USA and Canada. BBC has previously reported that Drax held logging licences in British Columbia, and used wood, including whole trees, from primary forests for its pellets.
The Government has announced a new support mechanism for sustainable biomass generation post-2027. From 2027, Drax and other eligible large-scale biomass generators will be supported via a lowcarbon dispatchable CfD (Contract for Difference). If approved, the plan will keep the power station running until 2031. Under this proposed agreement, Drax Power Station can step in to increase generation when there isn’t enough electricity, helping to avoid the need to use more gas or import power from Europe. When there’s too much electricity on the UK grid, Drax can reduce generation, helping to balance the system. Importantly, the mechanism will result in a net saving for consumers. …The agreement also prioritises biomass sustainability. Drax supports these developments and will continue to engage with the UK Government on the implementation of any future reporting requirements.
LONDON – The UK government and Drax, opens new tab have agreed a deal that will halve the energy producer’s subsidies over 2027-2031, while ensuring the group uses more sustainable sources of woody biomass, the two sides said on Monday. Drax is Britain’s largest renewable power generator. With the help of government subsidies that run until 2027, it has converted four former coal plants to use biomass to provide around 6% of the country’s electricity. Following a consultation on extending the subsidies, the government said it “cannot allow Drax to operate in the way it has done before or with the level of subsidy it received in the past”. “Biomass currently plays an important role in our energy system, but we are conscious of concerns about sustainability and the level of subsidy biomass plants have received in the past,” Energy Minister Michael Shanks said in a statement, which did not disclose the exact figures of the subsidy.