Daily News for August 26, 2022

Today’s Takeaway

Six months into war, Russian hardwoods still flowing into US

The Tree Frog Forestry News
August 26, 2022
Category: Today's Takeaway

Six months into the war, Russian hardwoods are still flowing into the US — importers says they have no choice. In other Business news: Rosboro reduces production at its Springfield stud mill; Georgia Pacific invests in its Tennessee corrugated box plant; Pacific Woodtech assumes ownership of Golden, BC mill; and Collins appoints Tom Insko as new CEO. In Market news: US and UK housing markets face headwinds; while wood pellet demand soars, and CLT’s fortunes rise.

In other news: Canada seeks to expand its biomass supply; Washington state invests in urban forestry; Biomass Magazine speaks to wood dust and safety; and anti-logging coverage from BCCalifornia, and Tasmania.

Finally, FDR built a ‘Great Wall of Trees.’ Could Biden do the same?

Kelly McCloskey, Tree Frog Editor

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Business & Politics

Pacific Woodtech assumes ownership of Golden mill

By Claire Palmber
The Golden Star
August 25, 2022
Category: Business & Politics
Region: Canada, Canada West

Pacific Woodtech has assumed ownership of the Golden mill, effective earlier this month on Aug. 1, as a part of a larger acquisition from LP Building Solutions. The total acquisition included log, veneer, laminated veneer lumber (LVL) and plywood facilities in Golden, as well as operations in Red Bluff, California and Wilmington, North Carolina. The acquisition was valued at $210 million. A statement from the company says that they will be working hard to retain existing employees. “This is an incredibly exciting time for PWT. We take great pride in combining LP Building Solutions’ EWP business and SolidStart® brand with our long-standing premium quality products and respected customer service,” said President and CEO Jim Enright.

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Weston Forest announces acquisition of Industrial Lumber Sales, Inc. of Moultrie, GA

Weston Forest
August 25, 2022
Category: Business & Politics
Region: Canada, Canada East

Mississauga, ON – Weston Forest, a leading distributor and remanufacturer of softwood & hardwood lumber and specialty panel products, today announced it has acquired Industrial Lumber Sales, Inc. (ILS) of Moultrie, GA. Steve Rhone, President & CEO of Weston Forest, states, “Industrial Lumber Sales is a well-run, highly reputable business with tremendous opportunity for growth.” Rhone goes on to say, “Their business is an excellent complement to Weston Forest: there are supply chain efficiencies that will create immediate potential for growth at both companies. Weston will benefit from ILS’ highly experienced management team, strong business model, and geography. Weston brings our diverse product mix, winning culture, financial strength, logistics capabilities, and the strategic expertise of the Watermill Group.”

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Collins Appoints Tom Insko as New President & CEO

The Collins Company
August 1, 2022
Category: Business & Politics
Region: United States, US West

Tom Insko

Collins announced that Tom Insko will become the President & CEO of the company. An experienced business leader, Tom Insko will assume responsibilities on October 1, 2022. He currently serves as the President of Eastern Oregon University, a position he has held since 2015. Tom has 27 years of successful leadership experience and brings to Collins an extensive background in the wood products industry. He was with Boise Cascade for 20 years holding positions as plant manager, production manager, senior financing manager, region manager, and area manager. Tom is currently a commissioner on the Oregon Business Development Commission and previously served two terms on the Oregon Board of Forestry. …Tom holds bachelor’s degrees in Mathematics and Business Economics from Eastern Oregon University and an MBA from the College of William & Mary.

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Rosboro is temporarily reducing production at its Springfield stud lumber mill

Rosboro Lumber
August 24, 2022
Category: Business & Politics
Region: United States, US West

Rosboro announced that the Company is temporarily scaling back production at its Springfield, Oregon stud lumber mill, effective immediately. Soft markets for framing lumber and elevated raw material costs were referenced as reasons for the curtailment. “The market has reached a point where producing at full capacity no longer makes financial sense” said Rich Babcock, Rosboro’s CEO. The Company will continue to monitor market conditions for lumber and timber and will adjust operating schedules as necessary. “The market is our guide,” said Babcock. The Company intends to return to normal operations as soon as raw material costs and market demand improves. This curtailment will not impact the operating schedule of the Company’s three laminated beam plants, lamstock mill, log yard, dry kilns, or shipping departments.

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Georgia-Pacific is investing more than $20 million in its Lebanon, Tennessee corrugated box plant

Georgia Pacific
August 24, 2022
Category: Business & Politics
Region: United States, US East

Georgia-Pacific is investing more than $20 million at its plant in Lebanon, Tennessee. Its existing corrugator will be replaced with a new one to provide the plant with more throughput and provide customers with a better-quality product. …Rob Streeter, GPs area general manager… “This new technologically advanced corrugator will give us the ability to supply… upgraded offerings such as two-sided high-quality print, including Georgia-Pacific’s Hummingbird® digital print, on a variety of fluting options for the converted board.” The project will be conducted in phases through 2023 while the existing corrugator continues to operate. The planned startup of the new unit will be sometime in the first half of 2024. …The Lebanon plant employs 75 people and was built and started up by Georgia-Pacific in 1993.

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Six months into war, Russian goods still flowing to US

By Juliet Linderman and Martha Mendoza
Associated Press in The Longview Daily News
August 24, 2022
Category: Business & Politics
Region: United States, US East

BALTIMORE — On a hot East Coast day this summer, a massive container ship pulled into the Port of Baltimore loaded with sheets of plywood, aluminum rods and radioactive material — all sourced from Russia. President Joe Biden promised to “inflict pain” and deal “a crushing blow” on Vladimir Putin through trade restrictions on commodities like vodka, diamonds and gasoline in the wake of Russia’s invasion of Ukraine six months ago. But hundreds of other types of unsanctioned goods worth billions of dollars, including those found on the ship bound for Baltimore from St. Petersburg, Russia, continue to flow into U.S. ports. …While some U.S. importers are sourcing alternative materials elsewhere, others say they have no choice. In the case of wood imports, Russia’s dense birch forests create such hard, strong timber that most American wooden classroom furniture, and much home flooring, is made from it. 

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Finance & Economics

Global wood pellet demand continues to soar, likely to spur significant investments

By Anna Simet
Biomass Magazine
August 25, 2022
Category: Finance & Economics
Region: Canada, United States

Global wood pellet demand continues to soar, with tight market conditions likely to spur significant investments in new production facilities around the world. Demand growth from 2020-’21 outpaced supply growth by approx. 10% (18.2% versus 8.4%, respectively), according to market intelligence firm Hawkins Wright, a trend that is likely to continue. Global demand in 2021 was approx. 45 million metric tons (MT), with an additional 5 million MT in additional demand expected in 2022. As for pellet production capacity in the U.S. and Canada, Pellet Mill Magazine’s 2022 U.S. and Canada Fuel Pellet Production Map included approx. 12.8 million MT of operational capacity in the U.S., with roughly 1.7 million tons proposed or under construction. Data for Canada indicated approx. 4.9 million MT of operating capacity, with an additional 865,000 proposed. 

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US housing market experiencing historic affordability shock

Bloomberg in Builder Online
August 25, 2022
Category: Finance & Economics
Region: United States

Zonda chief economist Ali Wolf says the U.S. housing market is going through a “historic affordability shock,” with many markets experiencing home price appreciation between 50% and 70% compared with 2019. During an appearance with Bloomberg’s Taylor Riggs and BNN’s John Erlichman on “Bloomberg Markets,” Wolf said home price appreciation, coupled with higher mortgage rates and “economic angst,” is contributing to a slowdown in the housing market.

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US imports of hardwood plywood grow by 31% year-to-date June

By Keith Christman, President
Decorative Hardwoods Association
August 25, 2022
Category: Finance & Economics
Region: United States

The Department of Commerce’s finding was that U.S. imports of hardwood plywood from Vietnam circumvented duties. Recent import data highlights the potential impact of this ruling; imports of hardwood plywood from Vietnam are up by more than 90% this year through June. Now, most of these imports will be subject to tariffs of more than 200% as a result of the Department of Commerce’s ruling. Imports from Russia—the U.S.’s third largest source of hardwood plywood—have slowed dramatically since tariffs were imposed in April. …Total U.S. imports of hardwood plywood grew by 37% in volume and nearly 77% in value from January through June, as compared to the same period last year. Indonesia is the number one source of U.S. imports, with volume up by nearly 41%. Vietnam was the second largest source, with imports soaring an astounding 93% in volume. Russia is still the third largest source, with volume up by about 2%.

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Alarm Bells Ring for UK Housing as Signs Point to Falling Prices

By Neil Callahan
BNN Bloomberg
August 26, 2022
Category: Finance & Economics
Region: International

UNITED KINGDOM — The end of cheap money. Soaring energy prices and crippling inflation. A recession on the horizon. For the UK housing market, that toxic mix is fueling concern that a sharp correction is on its way. Cracks are already appearing amid the mounting pressures. Home values in London are flat or falling in almost half of the city’s boroughs. …Money managers have already signaled their worries, with shares in some homebuilders down more than 35% this year, lagging the broader stock market. That echoes a selloff at the end of 2006 and into 2007 that preceded the decline in house prices that accompanied the financial crisis. “The outlook for both rates and real incomes is as bad as I can recall since 1960, as are consumer confidence indicators,” said Paul Cheshire at London School of Economics. 

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There’s a housing crisis in northeast Minnesota, here’s what to do about it

By John Munter
Minnesota Reformer
August 24, 2022
Category: Finance & Economics

The home mortgage tax exemption has been the great engine of middle class prosperity for the past 70 years, but we’re facing a housing shortage that is hurting economic growth and keeping families from enjoying that same prosperity. Here are some initiatives for increasing the housing stock in northeast Minnesota:

  • Push for no-money-down, first-time buyer mortgages
  • Reduce or eliminate the tariff on Canadian lumber to reduce building costs
  • Work for the reinstatement of the Minnesota historic tax credit
  • Expand weatherization programs that help make home ownership affordable
  • Seek funding for local solar panel production and installation
  • Support expansion of voc-tech education to increase the # of tradespeople
  • Support less expensive modular housing with bigger tax credits
  • Oppose interest rate hikes, which are making home mortgages less affordable

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Wood, Paper & Green Building

Canada’s largest residential Passive House is at the University of British Columbia

By Allie Turner
Vancouver is Awesome
August 24, 2022
Category: Wood, Paper & Green Building
Region: Canada, Canada West

A new building on the UBC campus is part housing and part research project. Evolve is a new Passive House-certified 110-unit faculty and staff rental building in Wesbrook Place, the first of its kind on the Vancouver campus. The project has been in the works since 2018 and there is major excitement in multiple departments across the university as the first tenants moved in this week. A project team consisting of UBC Properties Trust, UBC’s School of Architecture and Landscape Architecture (SALA), and UBC Campus and Community Planning secured a $3.5-million grant from Natural Resources Canada to support the development of the six-storey, 103,000-square foot project which broke ground in 2020. …Dr. Adam Rysanek, assistant professor of environmental systems at SALA, will be leading a research group that uses Evolve as a model to evaluate the lifecycle performance of Passive Homes.

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Use of cross-laminated timber may rise in the U.S.

By Alexandra Kleeman
Reuters
August 25, 2022
Category: Wood, Paper & Green Building
Region: United States

Developed in Germany and Austria roughly 30 years ago, cross-laminated timber (CLT) has been used in construction across Europe for the past two decades. CLT is a type of engineered wood that rivals the load-bearing capacity of concrete and steel. Made by gluing together layers of lumber in a way that creates stronger structural integrity than regular timber, CLT is an attractive sustainable building material because it is made from the kinds of trees that have few other uses and that tend to fuel forest fires.  …Despite key benefits such as being eco-friendly, conduciveness to prefabrication, and myriad potential design applications, U.S. builders have been slow to adopt CLT. …Three recent developments in the construction industry, however, including inclusion in building codes and insurance coverage, suggest U.S. builders may soon begin using CLT more frequently in residential and commercial projects.

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Impressively green timber office building is built to last

By Adam Williams
New Atlas
August 25, 2022
Category: Wood, Paper & Green Building
Region: United States, US West

By Benjamin Benschneider

Designed to withstand severe earthquakes and to last for as long as 500 years, the PAE Living Building, by ZGF Architects, is an impressive example of resilient sustainable design. The office building has been constructed largely from timber and minimizes its grid-based energy use both passively and using technology like solar panels.  The PAE Living Building is located in Portland, Oregon, on a former parking lot. Structurally, it consists of sustainably sourced glued laminated timber and cross-laminated timber, though there is some concrete too, and its overall design nods to the local architecture in the city.  …As is typically the case with these modern engineered wood buildings, the interior decor throughout leans into the natural beauty of the timber and leaves surfaces largely uncovered.

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Forestry

Apply for PLT Canada’s Green Mentor program before Aug. 29!

Project Learning Tree Canada
August 26, 2022
Category: Forestry
Region: Canada

Applications for PLT Canada’s Green Mentor program are closing on Aug. 29! We are looking for mentees (students or young professionals aged 18–30 that are Canadian citizens, permanent residents, or have refugee status) and mentors (forest, conservation, environmental education, and sustainability sector professionals with 3+ years of experience). The six-month program will launch with 50 mentee-mentor pairs in October 2022 and will run until March 2023. Almost 500 people have participated in a Green Mentor program, and 100% of participants from the last cohort with the World Forestry Congress would recommend it.

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Cumberland sets out new agreement for trail use

By Mike Chouinard
Comox Valley Record
August 24, 2022
Category: Forestry
Region: Canada, Canada West

The Village of Cumberland and partners are setting up a memorandum of understanding (MOU) for trails in the area. At a meeting in August, council directed staff to enter into the MOU, Collaborative Management and Use of a Cumberland Trail Network with United Riders of Cumberland (UROC), TimberWest Forest Company (Mosaic) and Comox Timber (Manulife). The parties entered into a licensing agreement in 2015 that formalized public, non-motorized access to the trail network in Cumberland. About 80 per cent of the trails in the area are on private managed forest land. …The memorandum will also take into account trail plans across property boundaries, and UROC would still hold licence agreements and is working with the two timber companies on matters of access.

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Wood waste landfill plans outlined at qathet Regional District meeting

By Paul Galinski
Powell River Peak
August 25, 2022
Category: Forestry
Region: Canada, Canada West

Western Forest Products (WFP) is intending to apply for a refuse permit to allow for a wood waste landfill to accommodate wood waste from the Stillwater dryland sort. At the August 16 qathet Regional District planning committee meeting, directors received a delegation from WFP representatives to outline the proposal, which has plans to dispose of an estimated 6,000 cubic metres per year of wood waste on a parcel of crown land approximately four hectares in size. Brad McRae, government relations director for WFP, said dryland sort waste consists of materials such as bark, trimmed ends, branches and dredging. He said there is no domestic waste planned for the landfill. The material is not suitable for other uses except boiler hog fuel and landscape material, he added. …He said there is no local consumption of the material with the closure of the Catalyst Paper Tis’kwat mill.

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Action on Forest Practices Board recommendations lagging, says Conservation North

By Mark Nielsen
Prince George Citizen
August 25, 2022
Category: Forestry
Region: Canada, Canada West

Prince George-based environmental advocacy group Conservation North says the provincial government is failing to act on recommendations from the BC Forest Practices Board for protecting old growth forest in the Prince George timber supply area.  …In December 2020, the FPB issued findings from an investigation into a complaint that biodiversity values are not being appropriately addressed due to the high levels of mountain pine beetle salvage harvesting in the TSA.  …The FPB found loggers were complying with existing regulations but that those regulations needed to be updated to better protect biodiversity. …B.C. Forests Minister Katrine Conroy said work is underway on a spatial approach to implementing the landscape biodiversity order that includes “identifying biodiversity areas and protecting them.”  “We are working together with our partners to ensure that future generations will be able to enjoy the benefits that BC’s forests provide,” Conroy added.

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Community Forests Are Climate Changers – Aug Newsletter

BC Community Forests Association
August 26, 2022
Category: Forestry
Region: Canada, Canada West

Community forests were featured in a story with CBC Radio recently as part of their series on climate change. Our Executive Director, Jennifer Gunter, Erik Leslie of Harrop-Procter and Francis Johnson of Esk’etemc Community Forests along with Dr. Lori Daniels were all interviewed by Rohit Joseph, Victoria CBC Associate Producer/Technician with All Points West on the role of community forests in managing for climate resiliency. Also in this newsletter:

  • The Briggs Creek Wildfire  – Kaslo and District Community Forest
  • UBCM Resolution Update – Pricing Policy for Community Forests
  • Proposed changes to tab rate methodology and timing of redeterminations 
  • Old Growth Deferrals – Field Verification Guidance
  • Coast Fibre Recovery Zones Reinstated

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FDR built a ‘Great Wall of Trees.’ Could Biden do the same?

By Daniel Cusick
E&E News
August 26, 2022
Category: Forestry
Region: United States

Three years into his presidency and five years into the Great Depression, Franklin Roosevelt asked destitute Great Plains farmers to stop growing wheat and start growing trees. The idea seemed crazy. Unemployment was rampant in the mid-1930s, and families across the country needed grains for food. But Roosevelt said the federal government would pay farmers to grow trees in soils stripped bare by the Dust Bowl. Not just a few trees, but 220 million trees. Washington bureaucrats called the initiative the Prairie States Forestry Project. Roosevelt, busy selling the country on his New Deal anti-poverty programs, called it the “Great Wall of Trees.” …The brain behind the project was Raphael Zon, an exile from Joseph Stalin’s Russia who landed in the United States in 1898 and earned a degree in forest engineering from Cornell University. He advocated for the widespread construction of shelterbelts, which had proven successful on farms in the harsh steppes of Russia.

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Towns may grow millions more trees with $1.5 billion for urban forestry

By Alex Brown
Union-Bulletin
August 26, 2022
Category: Forestry
Region: United States, US West

Last year, legislators in Washington state passed a law to bolster the urban forestry work of the Department of Natural Resources. The agency’s urban and community forestry program …will grow from two to nine positions once the department finalizes new hires. Together with a new state-funded grant program they will supercharge the department’s efforts to inventory tree canopy in Washington’s communities, help cities maintain their trees and determine where to plant new ones. “We’re on a trajectory of meteoric growth for urban forestry,” said Ben Thompson, the program’s manager. …States and cities across the country are beginning to embrace trees as critical infrastructure in urban areas. …The Inflation Reduction Act, signed into law this month by President Joe Biden, includes $1.5 billion for the U.S. Forest Service’s Urban and Community Forestry Program, which supports efforts ranging from big cities to small communities. 

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Critics of Jackson Forest logging to hold rally; warn of potential civil disobedience when logging resumes

By Mary Callahan
Press Democrate
August 25, 2022
Category: Forestry
Region: United States, US West

Community, environmental and tribal activists opposed to renewed logging in the Jackson Demonstration State Forest plan to rally in the forest Sunday and warn of potential civil disobedience in the future.  The notice comes in response to a Cal Fire announcement that tree cutting would resume as early as this week on at least one of four incomplete timber harvest plans in the Mendocino County forest. Those plans were recently revised to halt removal of the largest trees.  The return of logging crews ends an eight-month pause on tree removal that allowed state officials to start rethinking priorities for the nearly 50,000-acre forest and begin negotiations with local tribes that are seeking co-management rights. But critics say it’s still too soon to end the pause. They argue that ideas floated in a “vision statement” released last week don’t amount to the updated forest management plan demanded by advocates and promised by Cal Fire.

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Tasmania’s anti-protest bill targeting environmental protesters has been watered down — here’s what’s next

By Laura Beavis
ABC News, Australia
August 24, 2022
Category: Forestry
Region: International

The Tasmanian government will have to decide whether to accept a significantly watered-down version of its flagship anti-protest legislation after the state’s upper house substantially altered the bill to reduce its scope and penalties.  The Workplace Protection Bill sought to toughen penalties for protesters who obstruct business activities, such as environmental protesters blocking a logging site, by changing the Police Offences Act to introduce new aggravated offences of public nuisance and trespass.  …But yesterday, the Legislative Council refused to support the section that dealt with public nuisance, meaning it is no longer part of the bill.  Legislative councillors also substantially changed the part of the bill that would introduce the new aggravated trespass offence.  …Because the bill has been changed by the Legislative Council, it will be sent back to the House of Assembly.

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Project Woodland progress on forestry issues criticised

By Charles O’Donnell
Agriland Ireland
August 25, 2022
Category: Forestry
Region: International

The government’s strategy on forestry, Project Woodland, has “failed to make significant progress”, the Irish Farmers’ Association (IFA) has said.  Jason Fleming, the association’s national forestry chairperson, has expressed frustration with the progress of the strategy, which was launched in the spring of last year.  Speaking this morning (Thursday, August 25), Fleming said a recent regulatory report on Project Woodland “gave few recommendations” to improve the forestry licencing system, or to address concerns of farmers involved in forestry.  “What is equally frustrating is the ongoing lack of progress made in addressing the key issues in the forestry sector which has brought the whole sector to its knees,” he said. …“It’s been a year and a half since Project Woodland was set up. But in those 18 months we have seen little progress, with the very same issues relating to the licencing system continuing to cause huge problems,” Fleming said. 

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Carbon, Climate & Bioenergy

Canada Launches Call for Proposals for Establishing Biomass Supply Chains Projects

By Natural Resources Canada
Cision Newswire
August 25, 2022
Category: Carbon, Climate & Bioenergy
Region: Canada

OTTAWA, ON – Clean fuels, such as advanced biofuels and hydrogen, play an essential role in contributing to Canada’s plan to reach net zero by 2050. …the Government of Canada is helping grow domestic production capacity while strengthening the economy, creating good, sustainable jobs and supporting workers in the natural resource sectors. Natural Resources Canada launched a call for project proposals to support the establishment of biomass supply chains to ensure that a steady and usable supply of sustainable feedstock is available to clean fuel production facilities across the country. As a component of the Clean Fuels Fund, this dedicated biomass call includes three project streams that are expected to enable emissions reductions while benefiting communities, leveraging private sector investments, creating jobs and providing opportunities for Indigenous-led businesses and communities.

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Health & Safety

The Influence of Material Flow on Pellet Mill Performance

By Holger Streetz
Biomass Magazine
August 25, 2022
Category: Health & Safety
Region: International

Wood dust is a byproduct of all wood manufacturing. Thus, all wood processors have dust management for safety reasons in common. For a dust explosion to happen, all that is required is a single spark from a hot surface or an electrical device. When the dust disperses and mixes with atmospheric oxygen, ignition in an enclosed or contained area causes an explosion. However, it is often not the first reaction that is devastating, but the much larger amount of dust aroused by the blast wave. This can ultimately lead to a chain reaction that can potentially destroy a whole plant. If there is a risk of accumulating wood dust, the main hazard control measures are good housekeeping, well maintained equipment to reduce any ignition risk, and existing controls to reduce the effects of an explosion, such as vents or dust collectors. 

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Forest Fires

B.C. wildfires: Fires of note set to reduce to 3

By Jane Skrypnek
Penticton Western News
August 25, 2022
Category: Forest Fires
Region: Canada, Canada West

The number of blazes BC Wildfire Service considers particularly visible or threatening is set to reduce from five to three. By end-of-day Aug. 25, the Briggs Creek fire near Kaslo and Mount Docking fire near Radium Hot Springs will no longer be classified as fires of note. …Across the province, 82 of the 230 wildfires actively burning are out of control, according to BC Wildfire. Another 65 are under control and 34 are being held. Forty-four fires are considered new, with the final five considered fires of note (soon to be three). Lightning is believed to be the cause of 76.1 per cent of them, with people behind another 7.4 per cent and the start of the remaining 16.5 per cent unknown. …There are 84 wildfires in the southeast, 34 in the Kamloops fire region, 39 along the coast, and 16 in the Cariboo region. Another 39 are burning in the Prince George fire region, with the final 18 in the northwest.

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