Daily News for February 18, 2021

Today’s Takeaway

The yin yang of wood-based bioenergy initiatives

February 18, 2021
Category: Today's Takeaway

The pros and cons of wood-based bioenergy initiatives comes to the fore in Fort Nelson, BC; Edmonton, Alberta; and Springfield, Massachusetts. In related news: safety at Canada’s wood pellet plants; and climate and forest management blamed for increasing fires in Washington state.

In Business news: headwinds for US housing construction activity in January due to rising lumber and other building material costs; Nova Scotia’s forest industry vows to help implement Lahey recommendations; Weyerhaeuser appoints new CFO; and good news for the Swedish startup that builds wind turbines out of wood

Finally, New Zealand introduces non-native insects to tackle its wasp problem.

Kelly McCloskey, Tree Frog Editor

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Business & Politics

Forestry industry vows to help carry out Lahey report as Nova Scotia awaits new premier

By Michael Gorman
CBC
February 17, 2021
Category: Business & Politics
Region: Canada, Canada East

Members of Nova Scotia’s forestry industry are declaring their support of the Lahey report, but they’re also voicing concern about potential changes to how private land is managed. The Wood Product Manufacturers Association of Nova Scotia sent a letter to premier-designate Iain Rankin offering the organization’s full support and a promise to “work collectively with government to achieve the positive benefits that our provincial forest resources offer.” The letter comes five days after the NDP released a document it received showing half the members of an advisory committee to the minister of lands and forestry called for a moratorium on clear cutting last November until the Lahey report could be put into action. …Casse Turple, a director with the Wood Product Manufacturers Association, said the group saw reaching out to Rankin now as a chance for a new start with government while also formally voicing public support for the Lahey report.

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The National Association of Home Builders wants more U.S. action to combat lumber prices

The HBS Dealer
February 16, 2021
Category: Business & Politics
Region: United States

Home builders don’t appear to be getting a respite from last year’s high lumber prices. The National Association of Home Builders (NAHB) said that the current cost of lumber continues to add thousands of dollars to the price of new homes. As a result, potential home buyers are being priced out of the market. Citing Random Lengths, the wood products pricing and information provider, the price of lumber hit another record high last week with prices more than 170% over the past 10 months. Chuck Fowke, NAHB chairman and a home builder in the Tampa, Fla. market, said that the NAHB is urging President Biden and Congress to help mitigate “this growing threat to housing and the economy.” The NAHB wants the government to push domestic producers to increase production, which could ease lumber shortages. Additionally, the NAHB said that it wants an end to tariffs on Canadian lumber shipments into the United States.

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Weyerhaeuser Appoints Nancy Loewe as Chief Financial Officer

Weyerhaeuser Company
Cision Newswire
February 17, 2021
Category: Business & Politics
Region: United States, US West

Nancy Loewe

SEATTLE — Weyerhaeuser Company today announced the appointment of Nancy S. Loewe as senior vice president and chief financial officer, effective March 8, 2021. Loewe joins Weyerhaeuser from Visa, where she served as senior vice president of finance, and she brings more than 20 years of financial and operating experience across multiple industries. Her appointment follows the company’s previous announcement that Russell Hagen is taking on a new role as senior vice president and chief development officer, overseeing the company’s Real Estate, Energy & Natural Resources segment, as well as Business Development and Acquisitions and Divestitures.

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Finance & Economics

Lumber Headlines Broad-Based Increases in Building Materials Prices

By David Logan
NAHB – Eye on Housing
February 18, 2021
Category: Finance & Economics
Region: Canada, United States

Prices paid for goods used in residential construction ex-energy rose 2.1% in January and have increased 6.8% over the past 12 months. …Prices paid for softwood lumber (seasonally adjusted) rose 13.9%. Lumber prices have remained extremely volatile since the 88.5% increase between April and September 2020. Since falling 22.9% between September and November, softwood lumber prices have risen 28.7%. The lumber PPI is now just 0.8% lower than the record high set in September. …In addition to nominal price movements and tariffs on Canadian lumber, cross-border purchasers are affected by the strength of the U.S. dollar relative to the Canadian dollar. Not only has the USD weakened 12.8% since March, it has fallen 3.6% since lumber prices began rising again in November. …Prices paid for gypsum products advanced 1.2% in January. …Prices paid for ready-mix concrete decreased 0.8%. 

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Benchmark lumber prices jump to a record despite slowdown in sales

By Dan Healing
The Canadian Press in Global News
February 17, 2021
Category: Finance & Economics
Region: Canada, United States

Homebuyers and renovators hoping for a mid-winter price slump are instead being greeted with new all-time record high prices for lumber and OSB building panels. CIBC analyst Hamir Patel says Western SPF lumber prices rose to a four-digit close for the first time on Tuesday, reaching US$1,000 per thousand board feet. …Meanwhile, the price of benchmark North Central region OSB panels increased by 1.2 per cent from Friday to a record US$845 per thousand square feet, while Western Canada improved to an all-time high of US$870. The impact of higher prices are affecting producers as well as consumers. On Tuesday, Louisiana-Pacific Corp. announced a plan to restart production at the Peace Valley OSB Mill in Fort St. John, BC… Last week, Interfor announced it would buy a sawmill in South Carolina. [Similar coverage in CBC news]

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US Construction Headwinds Pick Up in January

By Robert Dietz
NAHB – Eye on Housing
February 18, 2021
Category: Finance & Economics
Region: United States

Housing production softened in January as rising lumber prices continue to affect the housing industry. Overall housing starts decreased 6% percent to a seasonally adjusted annual rate of 1.58 million units, according to data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The January reading of 1.58 million starts is the number of housing units builders would begin if development kept this pace for the next 12 months. Within this overall number, single-family starts decreased 12.2 percent to a 1.16 million seasonally adjusted annual rate. The multifamily sector, which includes apartment buildings and condos, increased 17.1 percent to a 418,000 pace, well ahead of the NAHB forecast. 

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Skyrocketing steel, lumber costs threaten to slow construction jobs

By Joe Bousquin
Construction Drive
February 17, 2021
Category: Finance & Economics
Region: United States

…Across commercial construction, steel price increases in recent weeks have caused contractors to rework the material costs on their jobs. And it’s not just steel, either. ..Prices of both lumber and steel — two primary building materials — have surged anywhere from 20% to 25% recently, according to Daniel Pomfrett, at construction cost tracking firm Cumming. Over the past year, softwood lumber spiked 73%. Iron and steel scrap has surged 50.8%. …The price gains are having a ripple effect. Construction observers say costs for drywall, copper, steel studs and even vinyl siding have risen. The reasons. …“The short answer is the pandemic,” said Ken Simonson. …He points to the 37 ships, packed with goods from China and elsewhere that were anchored off Southern California at the beginning of February. …he worries that it won’t be long before developers who were considering getting back to work find another reason to stay on the sidelines.

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January Housing Starts: A Small Stumble to Start the Year

By Matthew Speakman
Zillow.com
February 18, 2021
Category: Finance & Economics
Region: United States

January housing starts fell 6% from December and 2.3% from January 2020, to 1.58M (SAAR), according to the U.S. Census Bureau. …Permits for future housing projects rose 10.4% from December and 22.5% from last year, to 1.881M. As the new year unfolds, some signals are emerging that many of the constraints that homebuilders powered through in 2020 may finally be eating into their capacity to take on more work in 2021. Housing starts and completions lagged behind expectations last month, perhaps not coincidentally at the same time as lumber prices surged. …But if nothing else, today’s mixed construction figures — even if they prove to be temporary and builders continue to find ways to overcome their obstacles — prove that the industry is not immune to setbacks and hiccups, even as it remains a key driver of economic growth.

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Wood, Paper & Green Building

Vestas Looks at Wind Turbines Made of Wood With Startup Stake

By Will Mathis
Bloomberg Green
February 17, 2021
Category: Wood, Paper & Green Building
Region: International

Vestas Wind Systems A/S bought a minority stake in a Swedish startup that builds turbine towers out of wood. The move by the world’s largest manufacturer of wind turbines could help remove hard to recycle and fossil fuel-intensive materials like steel from the production process. Modvion AB aims to make towers for wind turbines out of a composite wood made of multiple 3 to 4 millimeter-thick layers of Nordic-grown spruce. The tower is then covered in a waterproof coating. The company said the product is as at least as strong and should be just as cheap once production scales up. Sweden-based Modvion raised about 11.47 million Swedish krona ($1.4 million), at a valuation of around $27 million … according to the company’s chief executive officer Otto Lundman. He plans to raise a larger sum, about 10 million euros, later this year to help finance the company’s first major factory that will be able to produce about 200 units a year by 2023.

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Forestry

Unauthorized trail building damages trees – Greenways

By Marc Kitteringham
Campbell River Mirror
February 17, 2021
Category: Forestry
Region: Canada, Canada West

Unauthorized trails lead to environmental degredation, Greenways Land Trust would like to remind people. The group recently became aware of a set of unauthorized bike jumps built in the Willow Creek Conservation Area near the Martin Road entrance. Willow Creek is managed through a partnership with Greenways and the Nature Trust. A large number of trees have fallen in the area, the group noted, and they point at compaction and soil distrubance associated with the jumps as one of the main causes. “They have been doing lots of excavating big holes to dig up soil and making jumps out of that,” said Camille Andrews, Habitat Management Coordinator for Greenways. “…We’ve also noticed in the recent wind events that it seemed to have significant failures compared to the surrounding forest. We’re worried about that from a safety perspective and from an ecological perspective.”

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Early Intervention Program on West Coast Proving Successful in Reducing Spruce Budworm Populations

VOCM
February 18, 2021
Category: Forestry
Region: Canada, Canada East

Efforts to reduce the population of an insect that is harmful to trees have proven to be successful on the province’s west coast. Spruce budworms are pests that can cause serious damage to forests, as they feed on fir and spruce trees. Dr. Joe Bowden, a research scientist with Natural Resources Canada in Corner Brook, says the insects undergo an explosion in their population once every 35-40 years. The last time that happened in Newfoundland was the early 1970s to the mid-80s. One million hectares of spruce/fir forest was destroyed, which was about 75 per cent of the entire forest affected by the insect. Quebec has been dealing with an outbreak for the last 15 years. Bowden says we have seen a rise in budworm numbers on the West Coast in the last number of years. As part of an Early Intervention Program, over 32,000 hectares of forest was treated … which Bowden says was successful in reducing budworm numbers.

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Legislators propose rule to reduce roadblocks to forest management

By Carol Ryan Dumas
Capital Press
February 17, 2021
Category: Forestry
Region: United States, US West

Jim Risch

U.S. Sen. Jim Risch, R-Idaho, and U.S. Rep. Matt Rosendale, R-Mont., have led a bicameral letter signed by 12 legislators to U.S. Fish and Wildlife Services and the National Marine Fisheries Service in support of a proposed rule to help spur responsible management on national forests. The proposed rule would reduce wildfires, support conservation and create jobs by reducing roadblocks created by the Cottonwood decision. …The legislators stated that the Cottonwood decision has effectively set a litigation trap for the Forest Service and subjugated the agency to a never-ending procedural exercise. …“The Cottonwood decision sends forest plans — even finalized ones — back to the consultation phase, prolonging the process…,” said a spokesperson for Sen. Risch. The proposed rule would release the Forest Service from reinitiating consultation with Fish and Wildlife every time “new information” is found about possible impacts on endangered species, reigniting a cycle of red tape and activist litigation, the legislators said.

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Astoria approves forest thinning

By Edward Stratton
Daily Astorian
February 17, 2021
Category: Forestry
Region: United States, US West

The Astoria City Council on Tuesday approved thinning two overly dense swaths of the Bear Creek watershed. The 3,700-acre watershed provides the city’s drinking water. In 2015, the city agreed to limit logging in exchange for banking carbon sequestration credits sold to industrial polluters to offset their environmental impact. The Astoria City Council approved thinning two overly dense swaths in the 3,700-acre Bear Creek watershed. … Known as a variable retention harvest, the thinning would leave 30% to 50% of existing trees, mimicking these pacing of old growth forests. Benjamin Hayes, the city forester, said the project would also increase the species diversity of a stand dominated by hemlocks.“When we replant, for instance, we’re putting in cedar, but we’re also retaining all of the spruce and cedar — some alder – and increasing the species diversity across the whole northwest portion of the watershed,” Hayes said.

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Spruce beetle still most damaging forest pest in state, aerial work shows

By Dennis Webb
The Grand Junction Daily Sentinel
February 17, 2021
Category: Forestry
Region: United States, US West

Annual aerial survey work last year, although curtailed because of the pandemic, remained sufficient to show that the spruce beetle remains the most damaging forest pest in Colorado for the ninth straight year. The U.S. Forest Service and Colorado State Forest Service last year were forced to prioritize where they did aerial surveys in order to follow COVID-19 safety protocols. That meant they monitored 16.3 million acres from the air, down from 30.2 million acres the year prior, thus preventing comparisons of survey results between 2020 and other years. “Despite the modified flights, observers were able to detect and track pests infesting areas of forests that were previously unaffected, including the spruce beetle and Douglas-fir beetle. While the intensity of these two native bark beetles decreased in 2020, they continue to infest and kill previously unaffected stands,” the agencies said this week in a news release.

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Firms Selected To Develop Boston’s 1st Urban Forest Plan

Press Release
Patch.com
February 16, 2021
Category: Forestry
Region: United States, US East

Guided by interdepartmental collaboration and community engagement, the plan’s goal is to develop strategies to grow and protect Boston’s trees. Mayor Martin J. Walsh and Boston Parks and Recreation Commissioner Ryan Woods today announced the consultants selected to develop Boston’s Urban Forest Plan. … The 20-year plan will set citywide goals for canopy protection, be responsive to climate change and development, and enhance the quality of life for all Bostonians. The Urban Forest Plan will be a collaborative effort that includes a community advisory group, interdepartmental working group and community outreach. Recognizing that environmental injustice exists in Boston, the planning process will embed support for communities that have been disproportionately impacted by environmental stressors. Planning will touch upon a wide variety of topics, such as ecology, design, policy, practices and funding. “Trees are an important part of making Boston’s communities resilient. This plan is the first of its kind in Boston …

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Forestry Corporation to resume logging for first time since bushfires, against Environment Protection Authority advice

By Jessica Clifford
ABC News Australia
February 17, 2021
Category: Forestry
Region: International

Forestry Corporation will resume logging on the South Coast for the first time since last summer’s bushfires, against the advice of the Environment Protection Authority (EPA). The corporation had been in talks with the EPA about what environmental protection mechanisms should be in place, however it has withdrawn from those discussions. In a statement, the EPA said it had been working to negotiate site-specific conditions for logging based on the impact of the fires. It also said it was trying to implement a long-term approach to manage the risks posed by timber harvesting in the post-fire landscapes of coastal NSW. …Daniel Tuan, Forestry’s general manager of hardwood forests, said it had been negotiating for 15 months. …In response to the decision, the EPA said it would increase its regulatory oversight of Forestry’s future operations. …Forestry Corporation has not given an exact date as to when it will restart operations on the South Coast.

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New Zealand deploys insects to tackle wasp problem

BBC News
February 17, 2021
Category: Forestry
Region: International

New Zealand has some of the highest numbers of wasps in the world, and is now taking action to tackle them by introducing two insects from Europe. The hover fly and wasp-nest beetle were given the green light by the country’s Environmental Protection Authority. They target the nests of wasps… The German wasp was introduced in New Zealand in the 1940s and the common wasp arrived in the late 1970s but is now widespread …the council said the region’s honey dew-covered bean trees had the highest density of wasps in the world – with as many as 30 wasp nests per hectare. So many thousands of wasps had disrupted the local ecosystem – killing honey bees and other insect life – and costing New Zealand’s economy $133m annually in damages and management, local media reported. The EPA said it had assessed the impact of introducing non-native species and deemed it to be safe.

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Carbon, Climate & Bioenergy

New biomass tracking project will divert material from landfill, produce biochar

Bioenergy Insight Magazine
February 18, 2021
Category: Carbon, Climate & Bioenergy
Region: Canada, Canada West

EDMONTON, Alberta — Agri-food traceability firm TrustBIX will use its BIX platform in a commercial pilot programme to track biomass and waste streams to divert material from landfill and create new products for agricultural and industrial markets. TrustBIX has entered into a $300,000 contract with All West Demolition (AWD), one the largest regional demolition companies in Edmonton, Canada, and Innovation Reduction Strategies (IRSI), an ‘early innovator’ in biomass-to-biochar production. …BIX will be enhanced and used to track the waste inputs… to quantify the reduction in greenhouse gas emissions. …Chris Olson, president at IRSI, said: “We are converting 75% of all AWD’s wood waste into valuable biochar… to be sold into other applications for green houses, activated carbon markets, and other materials.” …The commercial pilot project will continue through to 1 February 2022.

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Fort Nelson, B.C., forest on chopping block for wood pellets

By Matt Simmons
The Narwhal
February 17, 2021
Category: Carbon, Climate & Bioenergy
Region: Canada, Canada West

Huge swaths of northeast B.C. forests could be chopped down and ground up to make wood pellets to send overseas if the province approves a proposed logging licence transfer in Fort Nelson, B.C. Over one million cubic metres of intact forest every year could be logged for export, according to a Canadian Centre for Policy Alternatives report published on Wednesday. Last November, B.C.’s largest forestry company, Canfor, quietly announced an agreementwith Peak Renewables to sell its forest tenure in northeast B.C., pending approval from the province. Canfor held onto the tenure since closing its two Fort Nelson mills 13 years ago, putting around 600 people out of work. If the licence transfer is approved, Peak Renewables would build the largest pellet plant in the province. Ben Parfitt, resource policy analyst for the Canadian Centre for Policy Alternatives, said the plant would, at best, employ around 60 people, while logging roughly the same amount Canfor logged when it employed 600 people.

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Trees to pellets? Scarred by two previous resource industry boom and busts, pivotal decisions lie ahead for community of Fort Nelson

By Ben Parfitt
Policy Note – Canadian Centre for Policy Alternatives
February 17, 2021
Category: Carbon, Climate & Bioenergy
Region: Canada, Canada West

The residents of Fort Nelson know better than most rural British Columbians about the harsh economic realities of resource dependency. It is now 13 years since the forest industry ditched the community in dramatic fashion when Canfor Corp. ceased all its local operations in the region and closed its plywood and oriented strand board (OSB) mills on the outskirts of town. …The community then enjoyed a brief economic resurgence as fossil fuel companies swept into the region during a short-lived natural gas industry fracking frenzy. Many laid-off forestry workers found new jobs and the community’s service sector took off. …But as detailed in a previous CCPA brief, the bust that followed was devastating. …Yet, once again, forces are aligning to push for another major resource industry play in the Fort Nelson region. 

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Climate change and suppression tactics are critical factors increasing fires

Washington State University News – Science and Technoogy
February 18, 2021
Category: Carbon, Climate & Bioenergy
Region: United States, US West

The millions of people affected by 2020’s record-breaking and deadly fires can attest to the fact that wildfire hazards are increasing across western North America. Both climate change and forest management have been blamed, but the relative influence of these drivers is still heavily debated. The results of a recent study show that in some ecosystems, human-caused climate change is the predominant factor; in other places, the trend can also be attributed to a century of fire suppression that has produced dense, unhealthy forests. Over the past decade, fire scientists have made major progress in understanding climate-fire relationships at large scales, such as across western North America. But a new paper published in the journal Environmental Research Letters details a study that takes this progress to the next level. Researchers at five Western universities delved into which factors are increasing fire activity at the scales where management actions are implemented …

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Activists Urge Gov. Baker To Reverse Energy Rules That Boost Biomass

By Paul Tuthill
WAMC – Public Radio
February 17, 2021
Category: Carbon, Climate & Bioenergy
Region: United States, US East

SPRINGFIELD, Massachusetts — Imminent changes to renewable energy regulations in Massachusetts concern opponents of a long-proposed biomass power plant in Springfield. At a rally Wednesday… activists launched a campaign to try to pressure Gov. Charlie Baker to withdraw proposed changes to renewable energy rules that would incentivize large-scale biomass power plants. The activists fear the new rules will benefit Palmer Renewable Energy, which for 12 years has pushed to build a 35-megawatt biomass plant. …Opponents of the Springfield biomass project have long argued that a wood-burning power plant would have a devastating impact on the city that was dubbed “Asthma Capital” in 2019 by the Asthma and Allergy Foundation of America. …A spokesman for the Massachusetts Department of Energy Resources, in a statement, said… the administration is committed to addressing the impact of emissions on communities facing disproportionate levels of air pollution.

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This new tree corps will hire people to plant trees in low-income neighborhoods

By Adele Peters
Fast Company
February 17, 2021
Category: Carbon, Climate & Bioenergy
Region: United States, US East

Neighborhoods that were redlined in the past … often still struggle with poverty today. They also tend to be different from richer neighborhoods in another way: They have vastly fewer trees. “If you look at a map of most American cities, you’ll find that tree canopy cover tracks along income lines,” says Sarah Anderson from the nonprofit American Forests. “Wealthier communities have more trees, and lower-income communities have fewer trees. And this is the result of decades of discriminatory housing and planning purposes.” … [T]he nonprofit works on tree equity—bringing more trees to the areas that most need them in cities … Now, the nonprofit is partnering with the company Tazo Tea to work on the problem, creating the “Tazo Tree Corps” to plant and care for trees in targeted neighborhoods in Detroit; Minneapolis; the Bronx; the Bay Area; and Richmond, Virginia. “We’re working to employ folks from these communities…”

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Health & Safety

Achieving a safety culture amid a pandemic

By Gordon Murray, Wood Pellet Association of Canada
Canadian Biomass
February 17, 2021
Category: Health & Safety
Region: Canada

Every day, WPAC members and their employees work tirelessly to ensure leading safety practices are implemented and embraced. We know we will be measured by our collective efforts as an industry. Our reputation and the trust of regulators, the general public and the families of our employees depend on this. That we achieved this and more  in 2020 was no small feat in the context of a global pandemic. With the support of our partner, the BC Forest Safety Council (BCFSC), and the commitment of our members from the boardrooms to the plants across Canada, we were able to overcome the challenges of not being able to meet face to face. It meant long, virtual web conferencing, technical glitches and it required at times more patience and perseverance than most have with technology on the best of days.

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