Daily News for February 03, 2023

Today’s Takeaway

Enviva Pellets secures permits to expand in North Carolina

The Tree Frog Forestry News
February 3, 2023
Category: Today's Takeaway

North Carolina allows Enviva Pellets to expand in exchange for new air pollution controls. In other Company news: West Fraser’s Hinton Pulp Mill transition update; Mercer’s Peace River pulp mill is a Top Employer; Kruger’s Kamloops mill get’s Union nod; International Paper on Fortune’s Most Admired List; Paper Excellence supports Ducks Unlimited Canada; and Rayonier reports positive Q4, 2022. Meanwhile, some trend-stories on lumber and forestry costs, building permits, and new-home lot inventories.

In Forestry/Climate news: addressing Ontario’s forest sector labour shortages; praise for increased freight data in Canada; Thunder Bay to promote its resource sector; and an Indigenous forester says using biomass for energy can help the carbon balance.

Finally, according to Vox, palm oil is actually not that bad (anymore).

Kelly McCloskey, Tree Frog Editor

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Business & Politics

Canadian rail shippers praise Fed’s actions to collect more freight data

By Joanna Marsh
FreightWaves
February 3, 2023
Category: Business & Politics
Region: Canada

Transport Canada in January said the Canadian government approved amendments to the transportation information regulations that would require major railways to supply additional freight rail data. This data will be published weekly. …“The real sort of advantage to having more of this granular information about the railways’ performance and their operations is that it gives us a better line of sight,” said Joel Neuheimer, at the Forest Products Association of Canada (FPAC). …Neuheimer also maintains this will also help shippers with the ability to manage their supply chains better because they will have a better glimpse into what sort of rail capacity is available. Furthermore, the data will differentiate commodities even further, so it’s not just “forest products” but lumber versus pulp and paper products, according to Neuheimer.

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Kamloops’ Kruger mill ‘situated better than most:’ union

By Michael Reeve
CFJC Today Kamloops
February 2, 2023
Category: Business & Politics
Region: Canada, Canada West

KAMLOOPS — The forestry sector in British Columbia has been struggling with approximately 800 jobs being lost in the past few weeks as three separate mills have announced closures. Other mills have also been forced to enact curtailments or indefinite shutdowns as they wait for a steady supply of logs. Despite those challenges, the pulp mill in Kamloops is still turning a profit according to Kruger officials. Union representative Wes Mitchell was just in Prince George where 300 mill workers will soon be out of a job but agreed the Kamloops plant is in a good spot. “I’m worried about the forest industry in general, but I think we are situated better than most,” agreed Mitchell. “The company has a plan and we are backing them up as much as we can. There are some hurdles with the government… There are lots of promises but we haven’t seen much action yet.”

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Peace River pulp mill selected as one of Alberta’s Top Employers

By Jeff Henson
Everything Grande Prairie
February 2, 2023
Category: Business & Politics
Region: Canada, Canada West

Roger Ashfield

The Mercer pulp mill in Peace River has been selected as one of Alberta’s Top Employers for 2023, according to an annual report done by Mediacorp group. A total of 75 businesses in Alberta made the list for 2023. In a news release, Mercer Managing Director Roger Ashfield said their staff is their greatest asset, and that the company tries to provide them with a stable lifestyle for their families. [From Canada’s Top 100 website] First published in 2006, Alberta’s Top Employers is an annual competition organized by the editors of Canada’s Top 100 Employers. This special designation recognizes the Alberta employers that lead their industries in offering exceptional places to work. This year’s winners were announced in a special magazine co-published with the Calgary Herald and Edmonton Journal on January 31, 2023. Read the press release issued the same day for more background on this year’s competition.

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West Fraser Timber’s Hinton Mill transition going as planned

The Jasper Fitzhugh
February 2, 2023
Category: Business & Politics
Region: Canada, Canada West

HINTON, Alberta — The Hinton Pulp Mill has successfully transitioned according to plan, moving from a two-line Northern bleached softwood Kraft pulp mill to a single-line unbleached Kraft pulp mill. …“Thanks to the commitment and ingenuity of employees, the safe and timely transition was completed by mid-October,” said Joyce Wagenaar, director of communications at West Fraser. The move was announced in April 2022… by CEO Ray Ferris in a statement. Since then, staffing levels were managed through “retirements, natural attrition and placements at other West Fraser facilities. “This strategy enabled West Fraser to reduce staffing levels at Hinton Pulp from 345 positions to 270 without laying off a single employee.” …Wagenaar stated that it is still too early to quantify the environmental benefits of the change in processes. Other environmental benefits of the transition are expected to include an estimated 35 per cent reduction in greenhouse gas emissions.

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Mercer International hosting two-day career fair in Prince George

By Brendan Pawliw
My Prince George Now
February 2, 2023
Category: Business & Politics
Region: Canada, Canada West

PRINCE GEORGE, BC — Any displaced forestry workers looking to get back into the sector are in luck. Mercer International is hosting a two-day career fair in Prince George, looking for skilled workers to join their operations in Peace River and Castlegar. …Megan Cook explained… “We’re always looking for talented, energetic people to join our team and the Prince George/central interior region is well-known for innovative people, particularly in the forest industry… so it seems natural to us to be here to share our vision to, hopefully, prospective employees. We are excited to be here,”. Cook mentioned Mercer had previously planned the career prior to some of the recent shakeups in the forestry sector in the north. …“While we are aware that there has been some displacement of workers in our industry recently, attending career fairs to expand our network is important to us.”

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Thunder Bay releases economic development action plan

Northern Ontario Business
February 2, 2023
Category: Business & Politics
Region: Canada, Canada East

Supporting northwestern Ontario’s mining and forestry economy is one of the stated goals of a new strategic action plan tabled by the Thunder Bay Community Economic Development Commission (CEDC). The CEDC released its 2023-2025 Strategic Action Plan, Shaping a Sustainable Future, on Jan. 31. Growing and promoting the northwestern Ontario’s city’s growing service and supply companies engaged in natural resources sectors was listed among five “strategic pillars’ that included workforce and immigration, tourism, and strengthening the community and supporting business. …The commission has identified that it wants to attract investment and support research and innovation in manufacturing, mining, commodity processing, agriculture and energy while looking to involve Indigenous partnerships.

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North Carolina grants Enviva Pellets modified permit for Ahoskie plant

The Daily Advance
February 2, 2023
Category: Business & Politics
Region: United States, US East

AHOSKIE, North Carolina State environmental officials have agreed to allow an Ahoskie biomass facility to increase production in exchange for upgrading air filtration devices at its Hertford County plant. …The long-awaited permit renewal requires the wood pellet manufacturing facility in Hertford County to install new air pollution control devices that DAQ said “will substantially reduce emissions of volatile organic compounds and hazardous air pollutants.” …According to the state agency, Enviva’s permit limits the plant’s volatile organic compound emissions to fewer than 250 tons per year and hazardous air pollutant emissions to fewer than 10 tons per year. Enviva will be allowed to increase pellet production, DAQ said. It also will be allowed to increase the percentage of softwood used at the plant to 100 percent. Testing requirements are being put in place to ensure compliance. …Enviva said that it is pleased with DAQ’s decision.

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International Paper Named to Fortune’s List of World’s Most Admired Companies for the 20th Time

By International Paper
Cision Newswire
February 2, 2023
Category: Business & Politics
Region: United States, US East

MEMPHIS, Tennessee — International Paper has been named to Fortune magazine’s list of World’s Most Admired Companies for the 20th time. Fortune’s World’s Most Admired Companies list is the definitive report card on corporate reputations. Korn Ferry has collaborated with Fortune annually since 1997 to identify, select and rank the World’s Most Admired Companies. “International Paper celebrates 125 years this year, and throughout that time we have played an essential role in manufacturing sustainable products that people depend on every day. Our founders would undoubtedly be proud,” said Mark Sutton, chairman. “Fortune congratulates all of the companies whose competitors and peers recognize their achievements and voted them onto the 2023 Fortune World’s Most Admired Companies list,” said Fortune Editor in Chief Alyson Shontell.

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Finance & Economics

Building permits in Canada fall 7.3% in December

Statistics Canada
February 2, 2023
Category: Finance & Economics
Region: Canada

The monthly total seasonally adjusted value of building permits in Canada decreased 7.3% in December to $10.3 billion. Declines were posted in both the residential and the non-residential sectors. On a constant dollar basis (2012=100), the total value of building permits fell 7.4% to $6.1 billion. The total value of residential permits declined 8.4% to $6.5 billion in December. Construction intentions in the single-family homes component decreased 3.9% while multi-family permit values fell 11.6%, with seven provinces posting declines. …The total value of non-residential permits declined 5.3% to $3.8 billion in December. Decreases posted in Ontario more than offset gains posted in seven provinces. Construction intentions in the industrial sector decreased 23.4% in December, following a record high in November.

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Lumber costs expected to remain elevated

By Iva Poshnjara
BNN Bloomberg – Investing
February 2, 2023
Category: Finance & Economics
Region: Canada, United States

With lumber prices reaching record highs during the pandemic, one financial expert expects those costs to remain elevated as the industry has learned to remain cash flow positive.  Speaking with BNN Bloomberg’s Amber Kanwar, Daryl Swetlishoff, at Raymond James, explained that lumber companies realized during the pandemic that they don’t need to produce lumber at a loss and can instead close facilities to drive the price back up. Lumber prices are down by about 70 per cent since hitting a peak in May 2021, but remain about 25 per cent higher than they were at the start of 2020. “It’s been a crazy two years of very high volatile lumber prices and these companies have generated buckets of cash flow,” he stated. Setyan recommended Interfor, West Fraser Timber and Canfor as his three top picks in the lumber industry.

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US new-home lot inventory jumps in the fourth quarter

By Symone Strong
Builder Online
February 2, 2023
Category: Finance & Economics
Region: United States

Zonda’s New Home Lot Supply Index (LSI) for the last quarter of 2022 shows lot supply loosened year over year across the U.S. The residential real estate indicator, which is based on the number of single-family vacant developed lots and the rate at which those lots are absorbed, came in at 49.1 for Q4 2022, representing a 27.5% increase from Q4 2021. The LSI is now back to late 2020/early 2021 levels, according to Zonda. On a quarter-over-quarter basis, supply increased by 24.9%, up from the third quarter. Despite the increase, the data still reflects a “significantly undersupplied” market nationally. …Ali Wolf, chief economist at Zonda said, “With both sales and starts lower than the frenzied pace seen over the past few years, there are early signs that availability for lots, materials, and labor are improving. 

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Sharp declines impact Pacific Northwest lumber market

By Harvey Greer
Forests2Market Blog
February 2, 2023
Category: Finance & Economics
Region: United States, US West

Oregon forestry’s forecast remains shaky with an ongoing affordable housing crisis and residual impacts of forest fires. How will these impact Oregon forestry and the whole of the PNW lumber market:

  • Reduced supply of lumber due to 2020 Oregon Labor Day fires – Based on findings from the Oregon Forest Resources Institute, timber harvest will reduce by 7 BFF across the next 40 years. Devastation like this has unfortunately reduced the overall Oregon harvest potential – and will continue that way for years to come.
  • Restrictions due to Oregon’s Private Forest Accord – The Oregon Board of Forestry approved more than 100 changes to the Forest Practices Act, based on the recommendations of the Private Forest Accord report. The changes will impact timber harvest activities on more than 10 million acres of private and non-federal forests in the state.” Forecasters predict a loss of up to 7 thousand jobs.

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Rayonier reports postive Q4, 2022 results

Rayonier Inc.
February 1, 2023
Category: Finance & Economics
Region: United States, US East

WILDLIGHT, Florida — Rayonier Inc. reported fourth quarter net income attributable to Rayonier of $33.1 million on revenues of $245.4 million. This compares to net income attributable to Rayonier of $8.7 million on revenues of $262.0 million in the prior year quarter. The fourth quarter results included $16.6 million of income from Large Dispositions. …Fourth quarter operating income was $44.1 million versus $33.5 million in the prior year period. …Full-year 2022 net income attributable to Rayonier was $107.1 million on revenues of $909.1 million. This compares to net income attributable to Rayonier of $152.6 million on revenues of $1.1 billion in the prior year.

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Forestry

Lower Mainland anti-logging protester sentenced to house arrest, curfew

By Cornelia Naylor
Vancouver is Awesome
February 2, 2023
Category: Forestry
Region: Canada, Canada West

A BC provincial court judge declined to grant North Vancouver Save Old Growth organizer Ben Holt, 52, a conditional discharge. Judge Gregory Rideout said it was a “significant aggravating factor” that Holt continued with the protests despite bail conditions banning him from blocking traffic. A protester involved in four anti-logging demonstrations that disrupted traffic in Burnaby, Vancouver and the North Shore has been handed a conditional sentence with house arrest and a curfew to be followed by six months of probation. Benjamin Holt, a 52-year-old computer programmer, was in Vancouver provincial court for sentencing Thursday morning after pleading guilty in December to three counts of mischief and one count of breaching bail conditions. The charges relate to protests with Save Old Growth, a group that has organized major traffic disruptions along the Trans Canada Highway in a bid to end all old-growth logging in B.C.

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McBride Community Forest board member resigns

By Andrea Arnold
The Rocky Mountain Goat
February 2, 2023
Category: Forestry
Region: Canada, Canada West

McBride Community Forest Board of Directors member Sheilagh Foster submitted her letter of resignation from the board on Tues Jan 24. Foster had been on the board of directors since the summer of 2021… She was disheartened to hear that the Village of McBride had voted to remove two of the MCFC board of directors. “(It is) a sad repeat of the history and community trauma endured under previous Village Councils,” said Foster. “I joined the MCFC Board of Directors, hoping that director appointment and management by Village Council was behind us. I hoped MCFC could work toward becoming an independent organization not subject to the political whims of McBride Village Council.” Seeing that the Village has once again stepped in and appointed directors of their own choosing, Foster made the decision to step down. 

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Merville author, Harold Macy, putting pen to paper

By Jasper Myers
Comox Valley Record
February 1, 2023
Category: Forestry
Region: Canada, Canada West

Harold Macy

Local author Harold Macy has released a new book titled All the Bears Sing – a collection of short stories, which Macy describes as fictional stories based on something real. This is Macy’s third book, following The Four Storey Forest in 2011 and San Josef in 2020. Macy has lived in the Valley, in the same house, for 40 years. He moved here when he was 26 years old and said a ’63 Chevrolet pickup is what brought him to Vancouver Island. “I just saw this as a land of opportunity and forestry,” he said. He spent many years studying and working in forestry, a lot of it here on the Island. Macy has worked for the BC Forest Service Research Branch and at UBC Oyster River as the forester. At UBC he also taught online and weekend courses in small-scale forestry and agroforestry. …This experience has influenced his writing, especially in this new book. 

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Paper Excellence makes historic donation of $150,000 to Ducks Unlimited Canada to support wetlands stewardship and education in Canada’s Boreal Forest

Paper Excellence Canada
February 2, 2023
Category: Forestry
Region: Canada, Canada West

Prince Albert, SK – On World Wetlands Day, Paper Excellence Canada today announced it has donated $150,000 to Ducks Unlimited Canada (DUC). The largest single donation in Paper Excellence Canada’s history will support wetlands conservation and stewardship in boreal forest regions of Saskatchewan and British Columbia. The donation will also support wetlands training for residents and employees in industries that operate or work in the boreal forest regions of the two provinces. “On behalf of Paper Excellence Canada, I am thrilled to present this donation to Ducks Unlimited Canada and begin this exciting investment in supporting wetlands stewardship and education,” said Carlo Dal Monte, Vice President for Paper Excellence Canada. “Paper Excellence Canada is committed to conservation and sustainability in the regions where we operate, and working with Ducks Unlimited Canada on this initiative is another example of our company’s ongoing work.”

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Overharvesting to blame for B.C. forestry problems

Letter by John Warner
The Prince George Citizen
February 3, 2023
Category: Forestry
Region: Canada, Canada West

PRINCE GEORGE, BC — We are running out of trees. Sixty years of overharvesting, bugs and fires have left us with only a fraction of what we had. There are now only two options. We can do what the East Coast fishery did when cod stocks were getting scarce – keep harvesting until the cod were nearly all gone and then shut the fishery down. …Or we can slow things down a bunch. That will mean more job losses soon. …Prince George-Mackenzie MLA Mike Morris probably has the best political grip on where we are today. He has been telling anyone who would listen for a few years how serious the problem is. …In hindsight, perhaps the cool to vindictive NIMBY reception given to West Coast Olefin’s proposed plant may now appear to have been a tad hasty.

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Four First Nations Agree To Alliance

Kenora Online
February 1, 2023
Category: Forestry
Region: Canada, Canada East

Four First Nations in northwestern Ontario have formed a coalition against resource extraction in their traditional land use territories. Grassy Narrows, Big Trout Lake (Kitchenuhmaykoosib Inninuwug), Wapekeka, and Neskantaga were part of a signing ceremony on Tuesday. The four First Nations were joined by Sol Mamakwa, NDP MPP for Kiiwetinoong and Official Opposition Critic for Indigenous Affairs. They are concerned about mounting encroachment from mining and forestry companies. The Protecting Our Lands Conference was held on the Grassy Narrows First Nation as part of the signing ceremony.

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Bridging the Gap Aims to Better Understand Labour Shortages in the Forestry Sector

By Forests Ontario
Cision Newswire
February 2, 2023
Category: Forestry
Region: Canada, Canada East

BARRIE, ON – Industries across Canada are seeing a large portion of their workforce retire without the ability to replace them, and the forestry sector is no exception. According to the Ministry of Natural Resources and Forestry, the forestry sector is experiencing a labour force and skill shortage that is preventing the sector from realizing its full economic potential. If left unchecked, this shortage could negatively impact the socio-economic standing of hundreds of communities across the province of Ontario for years to come. To address this issue, Forests Ontario and the Ontario Forest Industries Association (OFIA), with support from an advisory committee, collaborated on Bridging the Gap Between Ontario’s Youth & the Provincial Forest Sector, an Employment Ontario research project (known simply as Bridging the Gap) funded in part by the Government of Canada and the Government of Ontario.

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Five Years Ago, I Wrote a Fictional Disaster That Is Now Playing Out in Real Time

By Richard Powers
New York Times
February 2, 2023
Category: Forestry
Region: United States, US East

What could make a person die for trees? About five years ago, I published a novel called “The Overstory,” the tale of several characters who come together to protect an old-growth forest. The book follows characters who put their lives on the line in increasingly aggressive confrontations against powerful interests in the hope of saving trees. In the story, decent and principled people cross over the edge into retaliatory violence while trying to defend the living world. Now a similar story is playing out just a four-hour drive from where I live. Atlanta has been shaken by an apparent shootout that occurred two weeks ago when law enforcement officers tried to clear protesters from South River Forest, a wooded site for a controversial new police and firefighter training center. A Georgia state trooper has been hospitalized. A 26-year-old protester killed by law enforcement in what they are calling an act of self-defense.

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Palm oil is actually not that bad (anymore)

By Benji Jones
Vox
February 2, 2023
Category: Forestry
Region: International

In the last two decades, palm oil has become an environmental boogeyman, an ingredient that conscious consumers should try to avoid. Over the last 30 years, palm oil companies leveled acre upon acre of trees in Southeast Asia, which were full of life and carbon. The demand for this ingredient, now the world’s most common edible oil, undoubtedly has fueled two of the most urgent crises of our time: climate change and the loss of biodiversity. But the story of palm oil is changing — seemingly for the better. Over the last decade, the amount of deforestation caused by the industry has actually declined nearly every year in Indonesia, the world’s largest producer. And in 2021, it hit a 22-year low. Malaysia has seen a similarly positive trend, experts say, indicating that companies are now cutting down fewer trees.

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Boosting Transparency in Forest Data: Impact of FAO’s ‘Building global capacity to increase transparency in the forest sector’ project

By Rocío Condor and Julian Fox
The International Institute for Sustainable Development
February 1, 2023
Category: Forestry
Region: International

Open science and open data are increasingly important tools for addressing global challenges such as forest and climate change. The Forest Declaration, adopted in 2022 at the XV World Forestry Congress in Seoul, encourages wide uptake of technologies for the provision of and equitable access to accurate information on forests. Knowledge enables evidence-based decision making and drives positive forest and landscape changes. The Food and Agriculture Organization of the UN (FAO) is working to promote the use of open science and open data in the forest sector. Over the last three years, FAO led the implementation of the ‘Building global capacity to increase transparency in the forest sector’ project (CBIT-Forest). The objective of the project was to strengthen institutional and technical capacities of developing countries in forest-related data collection, analysis, and dissemination processes, to meet the enhanced transparency requirements of the Paris Agreement on climate change.

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Carbon, Climate & Bioenergy

New net-zero innovation network to fast track B.C.’s clean-tech sector

By Ministry of Energy, Mines and Low-Carbon Innovation
Government of British Columbia
February 1, 2023
Category: Carbon, Climate & Bioenergy
Region: Canada, Canada West

A new business innovation network is launching on the West Coast, aimed at helping British Columbia transition to a clean, net-zero economy. “Foresight’s Net Zero Innovation Network will help support the adoption and growth of clean tech in B.C. This will help to meet our greenhouse gas reduction targets, drive economic growth, and enhance industrial competitiveness,” said Adam Walker, Parliamentary Secretary for the Sustainable Economy. Foresight Canada, with $2.3 million in support from the Province and $5.2 million from Pacific Economic Development Canada (PacifiCan), is creating the BC Net Zero Innovation Network to support clean-tech innovators and adopters to compete, attract investment and talent, and help them grow faster while bringing their products to market. …A final report released in June 2020 recommended the development of a new clean-tech cluster organization with focuses on water, mining and agriculture alongside energy, transportation and forestry.

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Indigenous forester sees this fuel source as better for the environment and his culture

By Kaarina Stiff
Broadview
February 2, 2023
Category: Carbon, Climate & Bioenergy
Region: Canada, Canada East

John Manitowabi’s wood-pellet stove comfortably heats his home throughout the winter in Wiikwemkoong Unceded Territory in northern Ontario. His old diesel furnace has been relegated to backup status, where he’s happy to leave it; this new stove, which uses pellets made from regional logging scraps, saves him an estimated $400 per year on diesel. Forest biomass — the practice of burning forestry byproducts to generate energy — isn’t perfect. Some environmentalists warn that it still generates carbon emissions and puts forests at risk of overharvesting. But it is nevertheless a viable option, and one that can have positive impacts for Indigenous communities. Manitowabi is the director of the Wiikwemkoong Department of Lands and Natural Resources. With the rise of fuel costs and concern about the climate crisis, the Wiikwemkoong Development Commission launched a project in 2020 to install wood- pellet heating systems in the community.

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Health & Safety

Occupational Safety and Health Administration updates emphasis program on combustible dust

By Larry Adams
Woodworking Network
February 2, 2023
Category: Health & Safety
Region: United States

WASHINGTON — Occupational Safety and Health Administration (OSHA) has revised its National Emphasis Program (NEP) on combustible dust to include cut stock, resawing lumber and planing. According to OSHA, any combustible material can burn rapidly when in a finely divided form. If such dust is suspended in the air in the right concentration, under certain conditions, it can become explosible. The purpose of the revised emphasis program is to continue OSHA inspections of facilities that generate or handle combustible dusts likely to cause fire, flash fire, deflagration, and explosion hazards. The NEP was revised based on enforcement history and combustible dust incident reports. In 2018, wood and food products made up an average of 70 percent of the materials involved in combustible dust fires and explosions. Incident reports indicate that the majority of the industries involved in combustible dust hazards are wood processing, agricultural and food production, and lumber production, but others are susceptible as well.

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