Daily News for August 04, 2022

Today’s Takeaway

Drax to acquire BC based Princeton Standard Pellet mill

The Tree Frog Forestry News
August 4, 2022
Category: Today's Takeaway

Drax announced an agreement to acquire another BC pellet plant — the Princeton Standard Pellet Corporation. In related news: inflation cools BC lumber giants’ profits; Idaho’s industry is making billions in sales; BID to deliver on Canfor’s new Alabama mill; and Western Forest Products, Cascades and Sappi report positive Q2, 2022 results.

In other news: an interview with Nordic Structures David Croteau; David Elstone opines on the ‘jobs/m3 harvested‘ metric; researchers study zombie fires and the changing forests in Canada’s north; and West Virginia seeks to restore its red spruce forests. In wildfire news: evacuation alerts and controlled burns are employed in BC ski resort fire; a California’s fire leaves Klamath River in ashes; Oregon fires double in size; and an old ammunition dump explosion causes havoc in a Berlin city forest.

Finally, guitars made from ‘sinkers‘ recovered from the bottom of Lake Michigan.

Kelly McCloskey, Tree Frog Editor

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Opinion / EdiTOADial

The ‘jobs/m3 harvested’ metric can lead to false conclusions

By David Elstone, Managing Director
The Spar Tree Group
August 3, 2022
Category: Opinion / EdiTOADial
Region: Canada

One of my biggest pet peeves is the misguided expectations that come from using the number of jobs per thousand cubic metres of timber harvested to compare British Columbia’s forest sector to other jurisdictions. Critics have attempted to associate BC’s comparatively low generation of jobs per thousand cubic metres harvested to issues such as log exports, mechanization, forest management practices and minimal value-added processing. …BC is often compared to Quebec and Ontario, which have much higher jobs per thousand cubic metres harvested. …Jobs per thousand cubic metres of timber harvested is a relative metric useful for comparison to other regions, but it does not tell the behind-the-scenes story. 

Looking at the absolute numbers separately – total provincial harvest volume and total number of jobs – a new story emerges.

  • Species profile: of Quebec and Ontario are much higher to hardwood species, which lends itself to specialty wood manufacturing.
  • Trade flows: British Columbia is a net exporter of logs. Quebec is a net importer of logs (mostly from the US).
  • Pulp and paper: Quebec and Ontario have a focus on pulp, paper, paperboard products which supply the large nearby population centres.
  • Industry structure: Quebec has by far the most sawmills, panel mills, and pulp and paper mills of any province. Many of those sawmills are small.

So, when critics say that BC should create more jobs per thousand cubic metres harvested like other provinces, such as Ontario and Quebec, what they are really saying, unknowingly, is that BC should import more fibre, have more pulp and paper mills and decrease the industry’s global competitiveness by becoming less efficient.

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Business & Politics

Drax to buy another B.C. pellet plant

By Nelson Bennett
Business in Vancouver
August 3, 2022
Category: Business & Politics
Region: Canada, Canada West

Drax announced it has signed an agreement to buy a pellet plant owned by Princeton Standard Pellet Corp. When the deal closes sometime in the third quarter of this year, that will bring the total B.C. pellet plants Drax owns to eight. The Princeton pellet plant produces about 90,000 tonnes of wood pellets annually, primarily from sawmill wood waste, and employs 32 people. Drax is a British power company that has phased out coal at its power plant in North Yorkshire, England and now uses wood pellets for thermal power generation. Biomass is considered carbon neutral, since regrowing plants and trees eventually take up CO2. Drax has been on a buying spree in recent years. Last year, it acquired Pinnacle Renewable Energy — the largest pellet producer in Canada, with eight plants in B.C. and Alberta and one in Alabama.

Also Drax Group Release: Acquisition of 90,000 tonnes Canadian pellet plant

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Inflation, rising interest rates cool profits for lumber giants

By Ted Clarke
The Prince George Citizen
August 3, 2022
Category: Business & Politics
Region: Canada, Canada West
Canfor, West Fraser Timber both report reduced net income in second quarter of 2022. Canfor is reporting a net income of $373.8 million in its latest quarter, a considerable drop from its Q1 earnings of $534 million. …This year’s second quarter results reflect a reduction in the company’s earnings from the lumber sector that were offset slightly by improved pulp and paper sales. …West Fraser Timber also released its Q2 report which shows second-quarter earnings were $762 million compared to $1.09 billion in Q1. CEO Ray Ferris… “Inflationary cost pressures persist across our various supply chains, although an environment of strong demand and above-average product pricing has helped to absorb most of these cost increases. And while we recognize the risks of near-term macro headwinds, including rising mortgage rates and elevated energy prices, we also note that demand for our products has been resilient.”

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Idaho’s lumber industry is more consolidated than ever, and making billions in sales

By Anteia McCollum
Idaho Capital Sun
August 4, 2022
Category: Business & Politics
Region: United States, US West

In Idaho’s nearly 150 years of history with the lumber industry, the trade has transformed from a wide scattering of communities built and centered around logging and mills, to the more consolidated forestry seen today. …Rathdrum, Sandpoint, Kootenai and other towns in North Idaho were founded with logging in mind because of the massive amount of lumber available in the expansive old-growth forests. The first sawmill in North Idaho was built in 1878 by the U.S. Army, near the Spokane River at what is now Fort Sherman, according to the Museum of North Idaho. …In 2006, there were 88 active forest products plants in Idaho, according to the U.S. Department of Agriculture. By 2011, 26 of those were no longer active, and every other plant had a temporary closure between 2007 and 2011. …However, the decreasing number of sawmills doesn’t mean the lumber industry isn’t contributing to Idaho’s economy. 

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New sawmill complex coming to Mobile

NBC News 15
August 3, 2022
Category: Business & Politics
Region: United States, US East

Canfor in Prince George

Canfor Corporation has announced it will invest approximately $210 million to build a new, state-of-the-art sawmill complex in Mobile. The new sawmill is expected to have an annual production capacity of 250 million board feet on a two-shift basis and will provide a new, modern work environment for the approximately 130 people who will be employed directly, in addition to supporting significant indirect jobs. Startup of the facility is anticipated in the third quarter of 2024. “The expansion of Canfor is a strategic investment in the community, sawmill industry and economy of South Alabama. …Alabama has ample opportunity to attract significant new capital investment in the forest industry, and it’s apparent we’re doing just that,” said Governor Kay Ivey. “Mobile – and all of Alabama – has been proud to be the host of Canfor’s U.S. headquarters, and we look forward to seeing their continued, nation-wide success after this highly-anticipated and much-needed facility growth.”

Additional coverage from BID Group: BID to Deliver a New State-of-the-Art Turnkey Facility for Canfor

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Boat of Garten sawmill could close with loss of 40 jobs

BBC News
August 3, 2022
Category: Business & Politics
Region: International

BOAT OF GARTEN, SCOTLAND — A sawmill in the Cairngorms National Park could close with the loss of 40 jobs. BSW Group, which is headquartered in Earlston in the Scottish Borders, has announced the proposed closure of its Boat of Garten site. The mill, which is one of the oldest of the group’s seven UK sawmills, could close at the end of September. BSW Group said the move came amid a downturn across the timber industry globally. It added that the war in Ukraine and increasing energy costs were factors. …Tony Hackney, of BSW Group, said: “…under the backdrop of a pandemic, the conflict in Ukraine, increasing energy costs and a 40-year high in cost of living expenses, the timber industry has experienced a global downturn. To counter the impact of this, we have had to make the very tough decision to propose to close our sawmill at Boat of Garten from 30 September 2022.”

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Finance & Economics

Western Forest Products reports positive Q2, 2022 results

Western Forest Products Inc.
August 3, 2022
Category: Finance & Economics
Region: Canada, Canada West

VANCOUVER, British Columbia – Western Forest Products reported net income of $38.6 million and adjusted EBITDA of $66.2 million in the second quarter of 2022. Strong Japan lumber demand and record specialty product pricing drove revenue growth, but earnings were reduced by increased stumpage expense, logistics constrained shipments, higher export tax, freight rates and operating costs. In addition, a significant decline in commodity lumber pricing through the quarter and weaker cedar markets led to increased inventory provisions. Net income in the second quarter of 2022 was $38.6 million ($0.12 per diluted share) as compared to net income of $38.0 million ($0.11 per diluted share) for the first quarter of 2022, and net income of $78.3 million ($0.21 per diluted share) in the second quarter of 2021.

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Cascades reports positive Q2, 2022 results

By Cascades Inc.
Cision Newswire
August 4, 2022
Category: Finance & Economics
Region: Canada, Canada East

KINGSEY FALLS, Quebec — Cascades reported its unaudited financial results for the three-month period ended June 30, 2022. Highlights include: Sales of $1,119 million (compared with $1,038 million in Q1 2022 and $956 million in Q2 2021); and Operating income of $32 million (compared with a $(4) million loss in Q1 2022 and $23 million in Q2 2021). …Mario Plourde, President and CEO, commented: “Our packaging businesses delivered good sequential performances in the second quarter, with improved pricing and sales mix, higher volumes, and lower raw material costs in the case of Containerboard outweighing the impact of continued cost inflation. Sequentially, results in our Tissue Papers business highlight the momentum being generated by the profitability initiatives underway. 

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US boxboard production up 1% in Q2, 2022 (y-o-y)

By American Forest & Paper Association
The Paper Advance
August 2, 2022
Category: Finance & Economics
Region: United States

WASHINGTON – The American Forest & Paper Association (AF&PA) released its Q2 2022 Boxboard report. Total Boxboard production in Q2 increased 1% compared to Q2 2021. It was up 2% when compared to the same 6 months of 2021. The boxboard operating rate was 95.3%, down 1.2 points from Q2 and essentially flat (+0.3 pts.) year-to-date. Solid Bl. Folding – Domestic production increased 8% compared to Q2 2021 and was up 11% when compared to the same 6 months of 2021. Recycled Boxboard – Coated production increased 13% compared to Q2 2021 and was up 11% when compared to the same 6 months of 2021. Uncoated Recycled unmade orders were essentially flat (0.0%) compared to the previous month and decreased 1% compared to June 2021.

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Sappi reports record Q3, 2022 results

Sappi Limited
August 4, 2022
Category: Finance & Economics
Region: International

JOHANNESBURG — Commenting on the group’s results, Sappi Chief Executive Officer Steve Binnie said: “I am very proud of another quarter of record earnings against a backdrop of significant geopolitical turmoil, supply chain headwinds and extraordinary global inflationary pressures. Strong global paper demand and pricing momentum offset sharply rising costs and the negative impact of scheduled maintenance shuts at four mills. EBITDA improved to a record US$371 million, up from US$337 million in the prior quarter and US$145 million in the equivalent quarter a year ago. …A substantial improvement in profitability of the European business was a result of favourable market conditions. …Profitability of the North American business continued its upwards trajectory. …The South African business experienced a challenging quarter.

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Wood, Paper & Green Building

Code updates, sustainability spur mass timber’s US adoption

By Matthew Thibault
Construction Dive
August 3, 2022
Category: Wood, Paper & Green Building
Region: Canada, United States

David Croteau

Cross-laminated timber, also known as CLT, is gaining popularity in North America. Originally developed in the 1990s in Europe, the building material is popular overseas, but has progressed at a much slower pace in North America. That is changing, according to Montreal-based CLT firm Nordic Structures. The firm’s projects range from the John W. Olver building at UMass Amherst to the Shawnee Mission School District Aquatic Center in Lenexa, Kansas. Here, David Croteau, the vice president in charge of operations and engineering at Nordic Structures, spoke with Construction Dive about the growing popularity of the material in the U.S. and Canada, his vision for the company and what he would say to developers hesitant about the material. “All the big companies like Google, Microsoft, Facebook, they’re all building with mass timber for sustainability reasons right now,” said David Croteau.

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Sinkers: Guitars Made of Wood Recovered From The Bottom of Lake Michigan

By Justin Beckner
Ultimate Guitar
August 3, 2022
Category: Wood, Paper & Green Building
Region: United States, US East

…More and more guitars are being made out of reclaimed wood. Reclaimed wood has numerous advantages. Old wood seems to have a certain “mojo” or tonal characteristic that is pleasing. What is it about old guitars that makes them so sought after by tone afficionados in the guitar world? There have been a lot of theories and scientific study poured into this question over the years. Many believe that the answer lies in the way timber was grown in old-growth forests and how it was transported to mills, furthermore the way it was cut and milled prior to even arriving at a luthier’s shop. In this article I want to highlight one source of reclaimed wood that has been used to make guitars. Underwater logging. …Today these logs are known as “Sinkers”. One company out of Detroit, Echopark Guitars, has been making guitars out of Sinker timber for some time now, with incredible results.

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Forestry

Climate change affecting composition of Yukon forests, study finds

By Julien Gignac
CBC News
August 3, 2022
Category: Forestry
Region: Canada, Canada West

Deciduous trees are expanding in several areas of Yukon because of effects linked to climate change, according to new research. Kirsten Reid, the lead author of a study published in Environmental Reviews, said that drought, wildfire and permafrost thaw are changing the makeup of forests. She said coniferous trees, which dominate Yukon forests, seem to be fighting a losing battle against deciduous trees, such as aspen. That’s what appears to be happening in the Yukon’s Kluane region, where aspens – even grasslands – are encroaching on white spruce forests. The study states ideal growing conditions for this type of tree are likely to become “increasingly rare.” “Through to 2090,” the study states, “projections across Yukon include shifts from boreal forest to grasslands, Arctic tundra to shrublands and forests, and alpine tundra to forest, with the incursion of Northern American ‘prairie-type grasslands.'”

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Research team collecting first field data on ‘zombie fires’ in N.W.T.

By Emily Blake
The Canadian Press in CBC News
August 3, 2022
Category: Forestry
Region: Canada, Canada West

…The extreme wildfire season, known as the “summer of smoke,” saw 385 fires burn roughly 3.4 million hectares of forest in the territory, causing the release of an estimated 580 megatonnes of carbon dioxide equivalent. It also resulted in a phenomenon known as “zombie fires.” Otherwise referred to as overwintering or holdover fires, these blazes continue to smoulder underground during the winter months before reigniting the following spring. Jennifer Baltzer, an associate professor of biology at Wilfrid Laurier University and Canada Research Chair in forests and global change, has been studying the effects of the 2014 wildfires on the environment. She is leading a team of researchers who are collecting the first field data on zombie fires. “As an ecologist driving through some of those massive burn scars, I realized I couldn’t be working up here on these boreal forests without actually starting to tackle some of these questions,” she said.

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In the fight to protect Douglas-fir, in drones they trust

By Wendy Stueck
The Globe and Mail
August 3, 2022
Category: Forestry
Region: Canada, Canada West

An Indigenous-led project called Central Chilcotin Rehabilitation (CCR) is partnering with Seattle company DroneSeed to help rehabilitate B.C. forests devastated by recent wildfires The first such project last fall dropped more than 500,000 seed vessels on a 52-hectare site, near Williams Lake, B.C. The seed vessels are about as big as a hockey puck and contain soil, seeds and a lacing of hot pepper to deter hungry animals. The drone seeding is part of a larger, $7.5-million program CCR is undertaking to rehabilitate the area through clearing, harvesting and planting, funded by provincial Crown corporation Forest Enhancement Society of B.C. “It’s not going to replace tree planting,” said Percy Guichon, a councillor with Tŝideldel First Nation and a CCR director. …Some studies show plantings are prone to failure, because of hot, dry conditions or because fertile soils have been burned or eroded in wildfires, B.C. fire ecologist Robert Gray said. [A Globe and Mail subscription may be required to read the full article]

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West Virginia University researchers work to restore iconic red spruce forests

West Virginia University Today
August 3, 2022
Category: Forestry
Region: United States, US East

Lacy Rucker

Clearcutting and wildfires decimated the red spruce, once the dominant, high-elevation tree species in West Virginia, in the late 1800s and early 1900s. Nowadays, only 10% of the state’s historic red spruce coverage remains and it faces a new threat in climate change. West Virginia University researchers Donald Brown and James Thompson with the Davis College of Agriculture, Natural Resources and Design are working toward restoring some of the original tree habitat by studying the long-term effects of warming temperatures on red spruce and the creatures that call that ecosystem home. …The northern tree species follows the cool, wet Appalachian ridges down into North Carolina, but rising temperatures limit the chances for survival. …Current genetics research offers some hope. Researchers can identify seeds most likely to persist in warming temperatures and manipulate what is planted for the best chance for survival. 

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Big furniture brands like IKEA might help slow down rampant illegal logging

ABC Action News
August 3, 2022
Category: Forestry
Region: International

IKEA is one of the largest furniture retailers in the world and a leader in a booming global furniture market. The market hit an estimated value of over $490 billion last year. …there are a lot of unseen costs that go into supplying cheap, mass-produced wooden furniture to major retailers — namely costs from how and where that wood gets harvested. …IKEA has said before that “under no circumstances” would they accept wood that doesn’t meet their sustainability requirements. They’ve also taken action against problematic suppliers before. To balance the growing global demand for wood with conservation of these crucial forests, the EU and national governments have established massive protected areas… Furnishers often rely on something called the Forest Stewardship Certification, or FSC, to vet the sourcing for wood products. …But critics have pointed out some central flaws to the audit process and warned FSC certifications may be giving a false sense of security.

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Unions call for Victoria’s proposed laws targeting environmental protesters to be scrapped

By Adeshola Ore
The Guardian
August 3, 2022
Category: Forestry
Region: International

AUSTRALIA — A group of unions have hit out at the Andrews government over proposed legislation designed to criminalise environmental protests, which they say will stifle peaceful democratic action, calling for the bill to be scrapped. The bill, which is before the state’s upper house, would see protesters who illegally enter timber harvesting zones to disrupt workers face 12 months jail time or $21,000 in fines. In a letter sent to the premier, Daniel Andrews, and the state’s agriculture and workplace safety ministers, the unions argued the legislation is undemocratic and will not result in greater worker safety. “Any stripping away of the right to protest eventually finds its way to further limiting workplace action,” the unions said in the letter, seen by Guardian Australia. …“We are deeply concerned that the bill is disproportionate, lacks sufficient safeguards and oversight, and makes a mockery of psycho-social safety in the workplace,” the letter said.

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Forest Fires

BC firefighters deploy controlled burns to contain Okanagan blaze

The Canadian Press in the Vancouver Sun
August 3, 2022
Category: Forest Fires
Region: Canada, Canada West

Crews were literally fighting fire with fire in the southern Okanagan as the BC Wildfire Service takes advantage of cooler weather to try to contain a blaze that has forced hundreds from their homes. Fire information officer Marg Drysdale told a news conference Wednesday that crews were conducting controlled burns on the southeastern flank of the nearly 28-square-kilometre wildfire burning southwest of Penticton. An aerial ignition was planned for the region as crews burned off trees and bush not far from Highway 3A, which was closed briefly on Tuesday as flames moved closer. …Days of searing heat and low humidity helped fuel the wildfire after it was sparked July 29, but Drysdale said winds Wednesday were “not much of a factor” and “pretty flat,” while the heat was “a couple of degrees cooler,” at higher elevations.

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Highway closed as out-of-control wildfire near B.C. ski resort keeps growing

By Michele Brunoro
CTV News
August 3, 2022
Category: Forest Fires
Region: Canada, Canada West

Dozens more homes are now on evacuation alert as an out-of-control wildfire continues to burn in B.C.’s Interior. The Keremeos Creek wildfire has grown to an estimated 4,250 hectares since it was discovered roughly 21 kilometres southwest of Penticton on Friday. The cause remains unknown. The increase in size, according to the BC Wildfire Service, is “due to both natural fire and planned ignitions.” “Planned ignitions are conducted to bring the fire down to control lines so firefighters can action the fire,” the service said in an update posted online Wednesday. “We expect more growth as this fire burns into more inaccessible areas.” …The Regional District of Okanagan-Similkameen confirmed 479 properties, including the Apex Resort village west of Keremeos, remained evacuated, while residents of another 324 properties in the area were on evacuation alert. Though officials say the blaze is stable, it is slowly creeping closer to people’s properties – and not everyone has heeded the order to leave.

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Aircraft experienced engine failure during operations near Cranbrook

Canadian Press in the Vancouver Sun
August 3, 2022
Category: Forest Fires
Region: Canada, Canada West

CRANBROOK — A water-bomber aircraft involved in firefighting efforts in British Columbia made a forced landing Tuesday. B.C. Wildfire Service executive director Ian Meier issued a statement late Tuesday regarding the landing in the Southeast Fire Centre. Meier said the contracted Conair 802 Air Tractor Fireboss Skimmer aircraft experienced an engine failure during operations on the Connell Ridge wildfire, near Cranbrook. He said the forced landing was successful, and the pilot was taken to hospital for medical assessment.

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Firefighters tackle Southern Oregon fires

By Vickie Aldous
Oregon Mail Tribune
August 3, 2022
Category: Forest Fires
Region: United States, US West

The Wards Creek Fire east of Rogue River doubled in size to 10 acres from Wednesday morning to Wednesday evening as firefighters battled heat, steep terrain and dense brush. Despite the growth in acreage, 40% of the fire was surrounded by fire lines. The fire sparked by lightning is burning … in the hills above the 3100 block of Wards Creek Road, the Oregon Department of Forestry said. On Wednesday, three 20-person crews were assigned to the fire, as well as numerous engines, tree fallers, a water tender, a bulldozer and two Type 2 helicopters. …Temperatures rose to approximately 99 degrees in the area Wednesday afternoon. “We did have a firefighter suffering from a heat-related illness out on the line,” ODF Spokeswoman Natalie Weber said Wednesday. While fighting fires, firefighters aren’t covered by Oregon’s new laws that went into effect this year to help protect workers from excessive heat and smoke.

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Wind-whipped fire leaves Northern California hamlet in ashes

By Haven Daley and Christopher Weber
The Associated Press in the Times and Democrat
August 3, 2022
Category: Forest Fires
Region: United States, US West

KLAMATH RIVER, California — A week ago, the scenic Northern California hamlet of Klamath River was home to about 200 people and had a community center, post office and a corner grocery store. Now, after a wildfire raged through the forested region near the Oregon state line, four people are dead and the store is among the few buildings not reduced to ashes. …The McKinney Fire broke out Friday and was still out of control on Wednesday, despite progress by firefighters who took advantage of rain from thunderstorms and lower temperatures. But even the welcome precipitation brought problems. …More than 100 buildings ranging from homes to sheds have burned. Identifying the four people who were killed could take several days, Kreider said. The fire has charred nearly 90 square miles (233 square kilometers) and is the largest in California so far this year. The cause is unknown.

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Fire Triggered by Explosions Rages in Big Berlin City Forest

By Kirsten Grieshaber
Associated Press in US News and World Report
August 4, 2022
Category: Forest Fires
Region: International

BERLIN — A large fire triggered by explosions at an ammunition dump raged Thursday in a major Berlin urban forest on one of the German capital’s hottest days so far this year. A huge cloud of grey smoke hung over the city’s western districts and residents were asked to keep windows and doors shut. A major highway was closed and a train service interrupted, but authorities said no homes or inhabitants were under direct threat. More than 100 firefighters, dozens of soldiers and police officers were battling the blaze in the Grunewald forest, located in west Berlin. In addition, army tanks cut corridors into the forest to contain the fire and allow firefighters to get closer to the flames. …Massive explosions were heard in the morning from the site where old ammunition from World War II, fireworks and explosive ordnance is stored and controlled explosions are carried out.

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