Paper Excellence plans to sell Dryden and Espanola mills to a third-party ahead of Resolute purchase. In related news: Louisiana Governor partakes in Teal Jones groundbreaking; Resolute CEO is bullish on lumber; pulp and paper recovered well in 2021; Japan’s housing starts are up slightly; and US consumers are pessimistic on housing. Meanwhile, Kelowna celebrates plan for mass timber airport terminal; and Arkansas celebrates its messenger of mass timber (aka Dean Peter MacKeith).
In Forestry/Climate news: a world-wide retreat from net-zero thanks to Putin’s war; the first ever, national Life Cycle Assessment guidelines for whole-buildings; a new study by the US Center for Disease Control on Roundup; the costliest forest pest ever comes to Oregon; and balancing environmental and social values in BC’s resource industries.
Finally, Canada’s safest pulp & paper mills, and the health impacts of California’s wildfire smoke.
Kelly McCloskey, Tree Frog Editor
PLAIN DEALING, Louisiana – Gov. John Bel Edwards joined other state and local officials Monday morning at a groundbreaking ceremony for a multi-million dollar lumber plant south of Plain Dealing. The Teal-Jones Sawmill plans to build a $110 million lumber plant on state Highway 3 between Antrim and Rocky Mount roads. Louisiana Economic Development officials say the new mill is expected to support 125 new direct jobs, with average annual salaries of $47,000, plus benefits. …Dick Jone, president of Teal Jones said, “to date, our company has purchased four tired old sawmills in the South that are on track to be transformed into top quartile operations, thereby preserving existing jobs and increasing the workforce by 150%.”
Remi Lalonde, President & CEO of Resolute Forest Products, talks with Financial Post’s Larysa Harapyn about lumber’s bullish outlook for years to come. [8.5 minute interview]
In 2021, Cepi reports that the paper and pulp industry demonstrated an annual turnover of €95 billion – a 15.9% increase from 2020. Between 2020 and 2021, the consumption of paper and board also increased by 5.8%, which, according to Cepi, outperforms the overall rebound of the euro area GDP. In the same period, production also grew by 6.1%, and the operating rate of paper mills reached 90% compared to 85% in 2020. Cepi says this demonstrates a strong rebound following the initial outbreak of COVID-19. …According to Cepi, industry growth is being driven by renewed demand in both domestic markets and globally. …Russia’s invasion of Ukraine in February 2022 has led to concerns that wood supplies will be destabilised, with the potential for supply pressures and shortages, including for key packaging materials.
April total housing starts edged up 2.2% to 76,179 units. Some consumer weakness was evident as owner occupied housing fell 8.1%. …Wooden housing fell 3.5% to 39,625 units. Post and beam starts fell 4% to 31,172 units. Wooden prefab starts posted a 7% gain to 828 units and total prefab housing rose 8.2% to 8,693 units. Platform frame declined 2.3% to 7,625 units. Results of 2×4 starts by housing type were as follows: single family custom homes fell 5.1% to 2,407 units, rental housing slowed 2.8% to 4,234 units and built for sale spec housing increased 7.3% to 970 units. …Total non-residential starts fell 1.2% to 3,974 units and wooden non-residential starts declined 6.3% to 1,431 units. Results diverged in terms of floor area with total floor area jumping 18.7% to 3,895,753m2, but wooden floor dropped 17.5%. The YOY declines in wood were attributable to softness in agricultural buildings as well as elderly and social welfare facilities.
An expansion and upgrade of the Kelowna International Airport (YLW) will use mass timber through the Province’s Mass Timber Demonstration Program. The Airport Terminal Building Expansion project is anticipated to break ground in 2023 and will receive funding through the program, which has supported the advancement of mass timber in several projects throughout B.C. “This project showcases what is possible when we promote innovation in the construction sector and support the development of mass timber in large infrastructure projects in B.C.,” said Ravi Kahlon, Minister of Jobs, Economic Recovery and Innovation. …Building off the project at YLW and the success of the first two intakes of the Mass Timber Demonstration Program, the Province is also announcing an additional $2 million to open a third intake, which begins immediately. …Individual projects can receive as much as $500,000 for incremental or one-time costs associated with design development, permitting and construction activities in mass-timber building construction. 
The West’s 2050 net-zero emission goal did not seem wildly out of reach last summer. Plans were being made everywhere to shut coal burners, ramp up green energy and send fossil-fuel-burning cars to the scrapheap. …Then came the Ukraine war and the decarbonization trend went into reverse. Russian President Vladimir Putin has turned energy into a weapon, gravely wounding the promised renewable-energy revolution that had been the hallmark save-the-planet policy of almost every industrialized country. Normally, high oil and gas prices trigger a rush into low- or zero-carbon alternatives. …Not this time. The net-zero goals now seem like a fantasy. Severe energy shortages are developing as Russia cuts back natural gas deliveries to Europe. …With renewable energy wholly incapable of filling the gap, finding – and burning – more fossil fuels, not less, is the frenzied pursuit even as prices climb. [to access the full story a Globe & Mail subscription may be required]
Several wildfires are raging across Portugal, where a state of emergency has been declared amid a punishing heat wave sweeping Europe, where temperatures are expected to climb even higher in the days to come. As of Sunday, an estimated 3,000 firefighters were working to extinguish the blazes, Portugal’s civil protection agency said, with areas along the outskirts of Lisbon the hardest hit. …Weather experts in Portugal say temperatures of up to 113 degrees Fahrenheit (45 degrees Celsius) could be reported from Tuesday in Alentejo — the region between Lisbon and the Algarve, Sky News reported. Strong winds of 40 miles per hour are also predicted across several regions. …Experts say extreme heat and unseasonably warm temperatures will only become more frequent and severe as the world grapples with the effects of human-caused climate change.