Daily News for February 10, 2021

Today’s Takeaway

Interfor acquires South Carolina mill, San Group reman plant nears completion

February 10, 2021
Category: Today's Takeaway

Interfor has agreed to purchase the WestRock Co. sawmill in Summerville, South Carolina; while the San Group previewed its nearly-complete reman plant in Port Alberni, BC. In related news: the Port of Prince Rupert expansion will accommodate rising wood pellet shipments; a refresher course on how natural resources drive BC’s economy; log supply issues in North America open door for EU exporters; and lumber and housing updates by Madison’s; the NAHB; and the Mortgage Economic Review.

In Forestry news: an ENGO map shows the cumulative impact of industrial activity on BC’s forests; the Valhalla Wilderness Society says Selkirk Caribou are threatened; and BC’s Forest Practices Board finds issues in Clearwater BCTS audit. Elsewhere: Arizona lost 1 million acres to wildfires in 2020; and women still scarce in Tasmania’s forest sector—but change is coming.

Finally, fruit eating, seed-pooping animals can help restore Brazil’s degraded forests.

Kelly McCloskey, Tree Frog Editor

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Business & Politics

Interfor to Acquire South Carolina Sawmill from WestRock

By Interfor Corporation
GlobeNewswire in the Financial Post
February 9, 2021
Category: Business & Politics
Region: Canada, United States

BURNABY, BC — Interfor announced that it has reached an agreement with WestRock Company to acquire its sawmill located in Summerville, South Carolina for cash consideration of US$59 million. For the 12 months ended December 31, 2020, the Summerville Mill produced approximately 125 million board feet of lumber… and Interfor has identified a number of operational and capital investment initiatives to optimize and increase production going forward. The Summerville Mill is located 65 miles southwest of Interfor’s Georgetown, South Carolina mill and 115 miles northeast of Interfor’s Meldrim, Georgia mill. This strategic positioning will allow for log sort optimization and procurement synergies. Interfor will also enter into a long-term chip and biomass supply agreement with WestRock’s Charleston, South Carolina paper mill. …Interfor’s total annual lumber production capacity will increase to 3.2 billion board feet. The transaction is expected to close in the first quarter of 2021.

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Editorial: Resource extraction addition and subtraction

Business in Vancouver
February 9, 2021
Category: Business & Politics
Region: Canada, Canada West

January’s BC Natural Resources Forum provided a refresher course for anyone in need of instruction in what continues to drive British Columbia’s economy. As underscored by the discussions and presentations…forestry, mining and energy continued to be major job-, revenue- and tax-generating enterprises for the province throughout a year in which COVID-19 brought a host of other industries to their knees. They were not immune to the widespread collateral damage generated by the pandemic, but the province’s natural resource industries illustrated their resilience and the strength of their business fundamentals. …However [they] … need to do a better job of reducing their carbon footprint and increasing the involvement of First Nations and other local communities… The good news is that, for the most part, those environmental and social-licence imperatives appear to have reached the top end of the corporate pyramid in B.C.’s forestry, mining and energy industries.

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Wood pellet shipments through Port of Prince Rupert up 30% in 2020

Lesprom Network
February 9, 2021
Category: Business & Politics
Region: Canada, Canada West

PRINCE RUPERT, BC — The Government of BC recently detailed a planned expansion of the Ridley Island Export Logistics Platform, which will significantly improve the Port of Prince Rupert’s ability to transload wood pellets shipped aboard container vessels. The initiative will be funded through a mix of public and private investment, with the provincial government contributing $25 million to the $250 million total project cost. The project will expand the port’s transloading capacity from 75,000 20-foot equivalent units to over 400,000 TEUs per year. In 2020, wood pellet shipments through this port were up 30% over the previous year. The Ridley Island Export Logistics Platform is a port infrastructure project that will enable and support the development of innovative, large scale, export transloading facilities designed to increase efficiencies in export supply chains maximize value to Canadian exporters. [END]

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San Group’s reman plant in Port Alberni weeks away from completion

By Susie Quinn
Alberni Valley News
February 9, 2021
Category: Business & Politics
Region: Canada, Canada West

Kamal Sanghera & Sharie Minions

The mood at the site of San Group’s remanufacturing plant was light last week, as owners Suki and Kamal Sanghera toured the plant with Port Alberni Mayor Sharie Minions.  The Sangheras wanted to give Minions an inside view of what is happening behind the dirt berms along Stamp Avenue. New roofs from some of the buildings are now visible from the roads, raising the public’s curiosity.  The Sangheras hope to have most of the plant up and running sometime in April. It’s a relief after sitting and waiting through the coronavirus pandemic, company president Suki Sanghera said. “I feel better than two months ago.”  …Technicians should have been in Port Alberni last October to finish testing, but due to federal government restrictions on international travel, those having to come from Germany, the United States and even inter-provincially from Montreal, Quebec have been delayed.

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Forestry company’s $3m bill for failed harvest wiped after bad advice from council

By Jennifer Eder
Stuff.co.nz
February 10, 2021
Category: Business & Politics
Region: International

A forestry company has had a $2.89 million debt set aside by the High Court after failing to harvest on deadline for a contract written on bad advice from the Marlborough District Council. Zindia Limited signed the contract in 2016, to harvest pine trees on Arapaoa Island, previously known as Arapawa Island, between Tory Channel/Kura Te Au and Cook Strait in the Marlborough Sounds. The trees were owned by Arapawa Island Forestry Partnership, which leased the steep, difficult property and planted the trees in 1986. The lease expired on August 31, 2020. ….“It is now clear as a result of this court’s upholding the council’s abatement notice, that the advice given [by the council staffer] was incorrect,” Judge Lester said. In order to grant Zindia relief from the debt, Judge Lester had to find the mistake would result in a “disproportionate obligation” or “substantially unequal exchange” for the company.

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Lumber and log supply issues in North America present opportunities for EU manufacturers

By Agris Meinis
Forests2Market Blog
February 10, 2021
Category: Business & Politics
Region: International

As US homebuilding continues at a steady pace, US lumber producers have risen to meet the immense demand from the construction industry. But a gap in supply that was exposed during the peak of the pandemic’s first wave may become a longer-term issue that could keep upward pressure on lumber prices. Canadian lumber shipments to the US—which make up a significant chunk of US supply—were down by nearly 20% in April 2020, and production levels are unlikely to return due to a combination of factors… the Mountain Pine Beetle… British Columbia’s AAC  reduction of 15%. Going forward, European lumber producers will have an opportunity to play an increasingly important role. …Swedish sawmills are quite flexible and are accustomed to trading with countries where there is sufficient demand. …The massive amount of beetle-killed spruce across European forests is expected to peak in 2021.

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Finance & Economics

Strong demand sends softwood lumber prices higher

By Madison’s Lumber Reporter
Wood Business – Canadian Forest Industries
February 9, 2021
Category: Finance & Economics
Region: Canada, United States

Softwood lumber prices surged somewhat last week as suppliers still did not have enough product on hand to meet demand. …After a slight correction in mid-January, softwood lumber prices are headed back upward again, which is normal for this time of year. However, since they never really dropped in Q4 2020, these new “floor” levels are truly unprecedented. In the first week of February, sawmills were taking orders that would not even go on the production line until the beginning of March. This provides a good indication that prices are not going to go down anytime soon. …In the week ending January 29, 2021, the price of benchmark softwood lumber commodity item Western S-P-F KD 2×4 #2&Btr jumped +$46, or +5%, to US$940 mfbm, from $894 the previous week, said Madison’s Lumber Reporter. Last week’s price is -$4 less than it was one month ago when it was $944.

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US Mortgage Activity Remains Higher Year-over-Year

By Litic Murali
NAHB – Eye on Housing
February 10, 2021
Category: Finance & Economics
Region: United States

For the four-week period ending on February 5, 2021, the Mortgage Bankers Association’s (MBA) latest Weekly Application Surveys showed sustained elevated activity, unseen through most of 2020, except at the outset of the COVID-19 pandemic. Additionally, the MBA’s tracked 30-year fixed-rate mortgage hovered a few basis points above 2.9%, reaching 2.96% in the latest week. While Purchasing maintained higher levels of activity compared to the previous four-week period (i.e., the last two weeks of December 2020 thru the first two weeks of January 2021), the data show that Refinancing was the larger driver of the recent, sustained level of high activity in the Market Composite Index.

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Stora Enso’s 4Q 2020 sales decreased by 11%

By Stora Enso
Lesprom Network
February 8, 2021
Category: Finance & Economics
Region: United States, International

Annica Bresky

Stora Enso’s 4Q 2020 sales decreased by 11%, or Euro 257 million from the previous year to Euro 2 154 million. Sales were negatively affected by mix and lower prices especially in the Paper and Forest divisions. Lower by-product sales decreased the top line further. …The divestment and closures of paper production at Oulu Mill in Finland, the Kitee and Pfarrkirchen sawmills in Finland and Germany… reduced sales. 4Q 2020 operational EBIT decreased by 5%, or Euro 6 million, from the previous year to Euro 118 million. The operational EBIT margin increased to 5.5%. …CEO Annica Bresky said: “Looking back at 2020, my first year as CEO for Stora Enso, I can undoubtedly say that it has been extremely eventful. …Sequentially quarter on quarter, we can see improved sales, an indication that the markets are moving in the right direction.”

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Housing remains economic bright spot, but challenges persist

The LBM Journal
February 10, 2021
Category: Finance & Economics
Region: United States

WASHINGTON — As the country continues to rebound from the impact of the COVID-19 pandemic, housing has been a bright spot in the economic recovery. And while the home building industry is poised for another solid year in 2021, regulatory and supply-side challenges could harm housing affordability, slowing momentum and limiting growth, according to economists speaking at an online press conference in conjunction with IBSx, the 2021 virtual International Builders’ Show. “Housing affordability will continue to be a top concern this year,” said NAHB Chief Economist Robert Dietz. …“A changing regulatory landscape threatens to further erode housing affordability and make the tight inventory environment worse.” …As for the biggest short-term challenge facing builders, Dietz said “it is undoubtedly lumber prices.” …Delving beneath the national numbers, the South and West are regions that will lead new-home growth in the year ahead

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2020 was a banner year for housing

By Mark Paoletti
National Mortgage Professional
February 9, 2021
Category: Finance & Economics
Region: United States

The Mortgage Economic Review summarizes recent key economic indicators. …Housing Market Data:

  • Existing Home Sales rose 0.7% to an annual rate of 6,760,000 homes, up 22.2% in the last 12 months. 
  • New Home Sales rose 1.6% to a seasonally adjusted annual rate of 842,000 homes – up 15.2% YoY. 
  • Pending Home Sales Index fell 0.3% to 125.5 from 125.7, up 21.4% YoY.
  • Building Permits rose 4.5% to a seasonally adjusted annual rate of 1,709,000 units – up 17.3% YoY. Single-Family Permits rose 7.8% to an annual pace of 1,226,000 homes, up 30.4% YoY.
  • Housing Starts rose 5.8% to an annual adjusted rate of 1,669,000 units – up 5.2% YoY. Single-Family Starts rose 12.0% to 1,338,000 homes – up 27.8% in the last 12 months.
  • Housing Completions rose 15.9% to an annual adjusted rate of 1,417,000 units – up 8.0% YoY. Single Family Completions rose 10.2% to 984,000 homes – up 9.0% in the last 12 months.

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Rayonier Reports Fourth Quarter 2020 Results

Rayonier Inc.
Business Wire
February 3, 2021
Category: Finance & Economics
Region: United States, US East

WILDLIGHT, Florida –Rayonier reported fourth quarter net income attributable to Rayonier of $10.3 million on revenues of $205.5 million. This compares to net income attributable to Rayonier of $16.0 million on revenues of $178.8 million in the prior year quarter. The fourth quarter results included costs related to the merger with Pope Resources of $0.7 million. Excluding this item, pro forma net income was $11.0 million versus $16.0 million in the prior year quarter. Fourth quarter operating income was $22.4 million versus $26.1 million in the prior year period. …David Nunes, President and CEO… “As we look to 2021, we believe we are well-positioned to capitalize on favorable sawlog trends associated with increased residential construction activity, continued strong end-market demand for products derived from our pulpwood, improved log export market opportunities and growing interest in finished lots as well as rural and recreational properties.”

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Wood, Paper & Green Building

2021 Virtual Wood Design Seminars

Wood WORKS! BC
February 10, 2021
Category: Wood, Paper & Green Building
Region: Canada

This event will take you on an exciting journey to discover what’s possible with structural mass timber in design and building. Three distinguished designers will present three remarkable projects, each unprecedented and unique. Challenge your design sense and advance your wood proficiency and knowledge as you learn about these ingenious projects: a complex hybrid structure utilizing logs, steel, light wood-frame and dowel laminated timber walls;  the world’s tallest timber vertical extension using cross-laminated timber; and a 300-foot-long span timber gridshell using doubly curved glulam.

  1. Tsawwassen First Nation Youth Centre: Mass Timber and Poles Recall Coast Salish History: Dr. Nancy Mackin – Mackin Tanaka Architecture, Vancouver
  2. The World’s Tallest Mass Timber Vertical Extension: Nathan Benbow – VISTEK, Melbourne
  3. Taiyuan Domes Botanical Garden: Three Impressive Timber Gridshell Dome Structures in China: Lucas Epp – StructureCraft, Vancouver

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The new green paper sector doesn’t need trees

By Carl Meyer
Prince George Citizen
February 9, 2021
Category: Wood, Paper & Green Building
Region: United States, US West

Nicole Rycroft

For Nicole Rycroft, the first modern, tree-free commercial-scale pulp mill in North America was a “lightbulb moment” about the climate crisis. The new mill in eastern Washington state, called Columbia Pulp, runs entirely without woodchips.  Instead, it makes pulp, for paper products like tissues and food containers, out of some of the hundreds of millions of tonnes of wheat straw that is left over after farmers harvest their grain.  Rycroft, as the founder and executive director of Vancouver non-profit Canopy, has been advocating for new technologies that take advantage of agricultural residues, food waste or old clothing, and turns them into everyday products, without the need for trees. …Meanwhile, there are tonnes of alternative fibre sources destined for landfills or the burn pile that can be made useful again, even accounting for some left over to ensure the organic integrity of the soil.

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Forestry

Collaboration in the Okanagan is Reducing Wildfire Risk to Water Supply

The Forest Enhancement Society of B.C.
February 10, 2021
Category: Forestry
Region: Canada, Canada West

In the summer of 2019, four water utility providers in the Okanagan were awarded close to $680,000 in grants from the Forest Enhancement Society of BC (FESBC). The grants supported a collaborative approach to wildfire risk reduction in four major Okanagan watersheds that border one another and are managed by the District of Lake Country, Black Mountain Irrigation District, Glenmore Ellison Improvement District, and the Regional District of North Okanagan. “The FESBC funding program has been instrumental in addressing wildfire risk mitigation on Crown land in B.C. at a meaningful scale,” said John Davies, RPF, Frontline Operations Group. “We have gained in leaps and bounds with this important endeavour in the Okanagan Valley through FESBC support.”

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Quesnel’s Forestry program recognized through nomination

By Cassidy Dankochik
Quesnel Cariboo Observer
February 9, 2021
Category: Forestry
Region: Canada, Canada West

Erin Robinson

The city of Quesnel has been nominated for BC Cleantech Award.  They’re nominated for the Community Impact Award, alongside three companies and the city of Campbell River.  A Facebook post from the city notes they were nominated for their Forestry Initiatives Program.   The Cleantech awards are presented by the non-profit Foresight.  “Foresight is a not-for-profit corporation that fosters the growth of small and medium enterprises that are developing technology that improve environmental results and reduce green house gas emissions,” their website reads.

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BC Timber Sales audit finds issues in Clearwater

By Stephanie Hagenaars
The Clearwater Times
February 9, 2021
Category: Forestry
Region: Canada, Canada West

BC Timber Sales is putting measures in place to protect the environment and public safety after a section of forest service road was shut down for contaminating Oliver Creek, an “important fish stream.” The work follows an audit in the Clearwater Field Unit by the BC Forest Practices Board, which found timber sale licence holders didn’t ensure the section of road was safe for industrial use. … “The section of forest service road is unstable and has had several landslides that deposited sediment into Oliver Creek, which is an important fish stream,” Kevin Kriese, chair of Forest Practices Board, said in a media release. “Since the audit took place, the ministry has closed the road.” Tyler Hooper, spokesman for the Ministry of Forests said it is difficult to determine the effect of the landslides on the stream, as the slumps occurred during peak spring runoff conditions when the water is naturally turbid.

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Valhalla Wilderness Society says BC Timber Sales plan threatens Central Selkirk Caribou

The Boundary Sentinel
February 9, 2021
Category: Forestry
Region: Canada, Canada West

Severely endangered Central Selkirk mountain caribou are taking refuge in the proposed Selkirk Mountain Caribou Park this winter, while BC Timber Sales advertises plans that would push clear cuts into the park proposal and within 220 metres of known aninmal locations said the Valhalla Wilderness Society in a recent media release.  Craig Pettitt, a director and field person for the Valhalla Wilderness Society, said BC Timber Sales is helping to push these caribou off the face of the planet, adding the proposed Selkirk Mountain Caribou Park was designed to protect the caribou.  …The federal government urged immediate new habitat protection, but almost three years later BC has not protected any, while BCTS cutblocks creep closer and closer to caribou located by government radiocollars.

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Map shows extent of industrial activity in B.C.

Prince George Citizen
February 9, 2021
Category: Forestry
Region: Canada, Canada West

Conservation North has released a map showing the cumulative impact industrial activity has had on the province’s forests.  It depicts roughly three-quarters of the province covered in a swath of red while an accompanying map shows how little old growth is left. It is the product of a project dubbed Seeing Red.  Conservation North outreach coordinator Jenn Matthews said in a statement the group “wanted to show what has actually happened in those forests that most of us can’t see.”  The maps were issued at a time when, according to the group, forests that have never been disturbed by industry are threatened by both industrial logging and a burgeoning bioenergy industry.  The group contends the forests that still stand should remain untouched in the name of curtailing climate change and subscribe to the claim that they do a better job of sequestering carbon than planted forest and offer great benefits in terms of biodiversity in addition

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B.C.’s old-growth forest nearly eliminated, new provincewide mapping reveals

By Sarah Cox
The Narwhal
February 9, 2021
Category: Forestry
Region: Canada, Canada West

Michelle Connolly

Many people imagine British Columbia as a province carpeted in forests, with giant old-growth trees, but a new interactive map reveals that little remains of B.C.’s original and ancient forests, showing logging and other industrial human activity as a vast sea of red. The “Seeing Red” map, released Tuesday by the Prince George-based group Conservation North, took one year, 10 provincial and federal government datasets and $4,200 to pull together. “The cumulative impacts of industrial forestry have never really been put on display for analysis or review,” Conservation North director Michelle Connolly told The Narwhal. “And it became clear that if we wanted the truth, we would basically have to figure it out for ourselves.” …Pacific Wild creative director Geoff Campbell said the high-resolution map, which allows people to zoom in anywhere in the province to view unlogged forests, will “shock the heck out of your average B.C. resident.” 

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Arizona wildfires in 2020 burned nearly 1 million acres

By Peter Aleshire
Payson Roundup
February 9, 2021
Category: Forestry
Region: United States, US West

Arizona wildfires in 2020 burned nearly 1 million acres, more than double the 2019 total and five times the 2018 tally, according to the Arizona Department of Forestry. Unfortunately, 2021 could well be worse, given the dry winter and forecasts for a hot, dry spring, according to state officials. The first big storm of the winter the last week in January delivered a vital dose of moisture, with two or three feet of snow across the high country. But the warming this week rapidly melted the snowfall in the lower elevations. Snowmelt early in the week had not yet hit the Salt River, leaving it at about 47% of normal early in the week. However, runoff at the lower elevations had already boosted Tonto Creek to 125% of normal and the Verde River to 90% of normal. …state officials are bracing for a fire season in 2021 even more severe than in 2020.

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Women still scarce in forestry industry but change is coming, says Tasmanian Forests and Forests Products Network

By Meg Powell
The Advocate
February 10, 2021
Category: Forestry
Region: International

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Fruit-eating, seed-pooping animals can help restore degraded forests

By Emily Harwitz
Mongabay.com
February 9, 2021
Category: Forestry
Region: International

BRAZIL — Restoring degraded forests can be expensive and complicated, but Brazilian researchers may have a simple technique to add to the restoration toolbox: enlisting fruit-eating animals to spread seeds. A new study shows that many species of mammals and birds will consume seeds inserted into fruits at feeders and then excrete the seeds over wide areas. This novel proof-of-concept study highlights the importance of plant and animal interactions to restore the natural ecology of forests people have destroyed or degraded. …The ISD technique needs more fleshing out before reforestation projects can deploy it. Getting animals to scatter seeds across a wide area is critical, “but once they get there, there’s a whole host of other factors that limit whether the seeds establish,” said Karen Holl, a tropical restoration ecologist at the University of California, Santa Cruz.

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Logging and thinning of forests can increase fire risk

Griffith University News
February 10, 2021
Category: Forestry
Region: International

Logging can make native forests more flammable and lead to greater fire severity for decades, while ‘mechanical thinning’ can also increase fire risk.  These are two of the key findings of an expert review of published scientific research by The Bushfire Recovery Project – a joint project between Griffith University and the Australian National University to provide the Australian community with a scientific understanding of bushfires.  The review used the data and findings of 51 peer-reviewed studies, including those that compared how hot or severe fire burned in different areas during the same fires, to assess the impact logging has on bushfires. …Professor Brendan Mackey, Director of the Griffith Climate Action Beacon, said while the key contributor to a greater severity of bushfires was climate change, the science indicated that previously logged forest burned hotter than unlogged and old growth forest during fires.

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Carbon, Climate & Bioenergy

Government of Canada Supports Green Energy Alternatives in Indigenous and Northern Communities, tackling climate change and creating jobs

By Crown-Indigenous Relations and Northern Affairs Canada
Cision Newswire
February 9, 2021
Category: Carbon, Climate & Bioenergy
Region: Canada

OTTAWA, ON – The Government of Canada is working with partners to reduce northern communities’ reliance on diesel for heating and electricity by increasing the use of local renewable energy sources and improving energy efficiency. Today, the Honourable Daniel Vandal, Minister of Northern Affairs, and Michael McLeod, Member of Parliament for Northwest Territories, announced that the Northern Responsible Energy Approach for Community Heat and Electricity Program  has provided $88,000 to Nihtat Energy Limited to undertake a pre-feasibility study to assess the viability of developing biomass district energy systems in Inuvik. By supporting an emerging northern biomass industry, the Government is helping to create local jobs, accelerate the shift to clean energy and keep investments in the North by using local resources to build a regional economy. This will support healthier, more sustainable communities across the North and reduce Canada’s greenhouse gas emissions.

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