Friday Offcuts 31 March 2023
Click to Subscribe - It's FREE! This week we cover a story looking at the contentious plans of phasing out of all native forest logging in Victoria by 2030 and the Victorian Forestry Plan where more than AU$200million has been set aside to help the industry and affected communities make the transition. Since the announcement there have been major issues, inside and outside the court system, impacting on log supplies. Contained in the article are viewpoints from environmentalists, who’d of course like to see the timeline shortened, and an industry perspective from Radial Timber, whose business has been set up to mill and distribute high value hardwood timber products.We’ve included this week details on a follow up to the hugely successful wood residues event that ran last year. Over 350 local forest owners, harvesting and wood transport contractors and wood producers were involved. Momentum since 2022 event has if anything, increased, with significant new investments being made by industrial heat or energy users switching from fossil fuels to biofuels. Progress on how best forest owners and suppliers of wood residues from within a region can aggregate and coordinate the collection, transport and processing of woody biomass is likewise already underway. More information on the event, Residues2Revenues 2023, which runs on 25-26 July 2023 can be found on the event website, www.woodresidues.events. In Christchurch this week, architects, engineers, quantity surveyors and specifiers other mass timber specialists convened at a meeting to learn more about growing the capability and use of wood in commercial and multi- residential buildings. For the first time, the very successful annual WoodWorks event, which up until now, has been run in the North Island, ran in Christchurch. WoodWorks 2023 South showcased a range of projects using mass timber technology, including LVL and CLT, along with new prefabrication and connection systems transforming commercial buildings. A follow-up WoodWorks event is now being planned with the industry for the North Island for mid-September. In keeping with timber construction and design, out of Australia this week, WoodSolutions has just launched a new portal on their website which provides information on a broad range of international projects using timber together with the companies involved in their development, design, construction and in the supply of materials. We’ve also built in a story on new mass timber design software, CLT Toolbox, that’s been produced to make it easier for structural engineers to design and build with sustainable materials. And, that’s it for this week.
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Blaming forestry sector a modern-day witch-huntMarcus Musson is a director of forestry company Forest 360.OPINION: It’s always interesting witnessing the aftermath of a disaster when the academics, boffins and other experts come out of the woodwork to impart their impressive wisdom with great pride. The media, politicians and the public then jump on comments made by this group and take their opinions as fact without much in the way of consideration that many of these people generally have very little in the way of practical understanding of multifaceted issues, especially within primary sectors. The current witch-hunt on the forest industry is textbook Salem in the late 1600s and boffinism is fuelling the fire(s). Let’s get the term slash straight – this refers to harvest residues, the bits of the trees that are left behind to support regeneration of the soils once a plantation is harvested. It does not mean standing forests (permanent forestry) or riparian plantings (farmer-planted trees usually along waterways for environmental protection reason). Today, however, slash has become the catchall for any woody debris that ends up in a river. We, the forestry industry, are not denying that harvest residues (slash) have created issues with infrastructure throughout the East Coast and some areas of Hawke’s Bay, and that we can and will do better as an industry. However, this needs some perspective and context to fully understand the many and complex issues at play. ‘Experts’ in the media will have you believe that we, as an industry, wantonly throw slash into waterways with blatant disregard for downstream consequences. This couldn’t be further from the truth and current legislation ( National Environmental Standards for Plantation Forestry, NESPF) is very clear on the penalties for doing this. Not to mention that the economics of ‘throwing away’ good trees simply doesn’t make sense. The issue we are seeing across Tairāwhiti and Hawke’s Bay is woody debris that has come from many sources. This is not a new problem. It’s no surprise that a number of bridges in the Esk Valley were built in 1939, following their destruction in the 1938 flood, well before pine forests were planted. When we have biblical rain events on some of the most erodible soils in the world, the holding capacity of the steeper slopes becomes significantly reduced and as a result those slopes fail and gravity ensures that the slopes, and everything planted on them, end up in the drink. Many of these slopes have trees planted on them (native and pine) and consequently these trees also end up in the drink. Once these trees have floated down a river and rolled around with other debris (poplar, willows, farm debris, shipping containers, fence posts), they smash to pieces and become very hard to discern from any other woody residue. More >> Further industry commentary on the slash issue: Forestry Slash Unfairly in the Firing Line Source: Stuff, ODT Major Wood Residues Event announced for 2023![]() The wood residues event ran in July 2022. As evidenced by the turnout, the timing was spot on. A record number of over 350 delegates, both in person and remotely, were involved. Not only were NZ companies in attendance but a strong contingent from across Australia also travelled into Rotorua and live links were set up for a record number of delegates drawn from across Europe and North America. The event was timely. Low emissions energy to replace fossil fuels with electricity or solid biofuels was top of the Government’s agenda. Large industrial-scale heat and energy users throughout the country were firmly following the Government’s lead. The move to transition from fossil fuels was already well underway with significant conversions being made across the country. Major announcements on new investments were being made almost every month. The focus for the 2022 event was on the burgeoning demand for biofuels. Forest owners, those involved in logging operations and those with surplus waste from sawmilling and wood manufacturing operations were looking to satisfy current and projected future demand. At a regional level, there were already discussions underway on how best forest owners and suppliers of wood residues could aggregate and coordinate the collection, transport and processing of woody biomass. As well as providing surety to those looking to convert from burning fossil fuels, there was a growing recognition that the prevailing supply model needed to change to progressively drive scale and supply chain reliability. Residues2Revenues 2022 was described as a game breaker event in 2022 – for the practical information provided to those attending, for the business alliances that were able to be set up and for the networking. Feedback was, “don’t lose this momentum - more of the same for 2023 - make it bigger and better”. The follow-up 2023 event for the industry has now been set up. It will run again in Rotorua, New Zealand with live virtual registrations set up for those unable to travel into the country. Residues2Revenues 2023 runs on 25-26 July 2023. Event details along with the programme information can be seen on the event website, www.woodresidues.events. Momentum since the 2022 event has if anything, increased. There is an increasing demand for wood fuel from companies like Fonterra, from schools, hospitals and universities and from Genesis Energy, an electricity generation and retailing company, who’re looking to replace coal with biomass fuel at the Huntley Power Station. The volume of wood now being sought in the form of residues is significant. A simple analysis by BANZ shows that the Huntley Power Station alone could encourage diversion of about a quarter of low-grade logs currently being exported. Growing demand, as it was last year, from these large customers is providing real confidence to those in the supply chain to invest in new residue recovery practices. The economics of better-utilising forest residues, bin wood, offcuts left on landings, short length or malformed logs that won’t meet MDF, pulp-mill or chip export log specifications and sawmill residues are finally starting to stack up. Is the forestry sector in a position to supply? The answer from the industry and those attending the Residues to Revenues 2022 event was a resounding yes. The Residues2Revenues 2023 event has been set up again to include practical pre and post-conference workshops, a conference and trade exhibitions. This enables delegates to maximise their time at the event. Details for Residues2Revenues 2023 can be found on the event website. For potential exhibitors, the place was booked out last year. Early expressions of interest for exhibitors to be involved this year can be made to FIEA’s Sponsorship & Marketing Manager, Gordon Thomson at gordon.thomson@fiea.org.nz or Tel: 027 275 8022. Further details on the event will follow. ![]() WoodWorks 2023 South gets top marksAfter hosting the popular WoodWorks NZ conferences since 2016 either in the North Island or virtual, the first conference in Christchurch this week was sold out and very well received. Drawing a capacity audience of architecture, engineering and construction professionals the new half-day plus half-day conference format followed by site visits for WoodWorks 2023 South was welcomed by everyone. The case study presentations included a number of large local mass timber projects.Following the technical sessions on Wednesday afternoon, conference delegates boarded buses to enjoy site visits to two sites. First up was the very impressive new AgResearch offices, with enough large CLT, LVL and glulam exposed architectural and structural features to impress any mass timber advocate. The next stop was to the new Marian College campus due to open later this year. This must be New Zealand’s most innovative new school! Thanks to our WoodWorks partners and sponsors, speakers and hosts for making this event a success – especially to our site visit hosts at from Naylor Love and Armitage Williams Construction teams. See sheprout.com, architecturenow.co.nz and redstagtimberlab.co.nz for imagery and architectural overviews. International study tour grants opened![]() The WIDE Trust is pleased to launch the opportunity for persons actively pursuing a career in either the forestry or wood industries in New Zealand to apply for a grant, of up to NZ$30,000, to undertake an international study tour of no less than two-weeks’ duration to explore innovations, best practice processes and procedures and leading-edge technology in these industries globally. Applications for the study tour grants are now being accepted via the WIDE Trust web site. Applications close at the end of June 2023. Successful applicants will be required to complete their study tour within 15-months of having been awarded a grant. Many benefit from WIDE Trust funding The WIDE Trust has awarded grants totaling NZ$312,000 at the Trust’s first meeting for 2023. The Trust considers applications for funding on a quarterly basis. The latest grant recipients include several students from the University of Canterbury’s School of Forestry some of whom are receiving a WIDE Trust grant for the third year in succession. The Trust received 69 applications for grants this year from both under-graduate and post-graduate students. The Mike Hurring Forestry Training School in Balclutha has also been awarded a grant from the WIDE Trust for its Apprentice Training School. With the shortage of trained personal in the forestry industry, both currently and forcasted, the apprenticeship programme will help provide much needed skilled operators for the industry. The apprenticeship programme involves trainees undertaking training and assessment with qualified industry trainers using simulator technology. There is also the opportunity for training using a log loader and log truck, forwarder, wheeled harvester, bulldozer and skidder. Visits to various ports and sawmills are included in the training programme. The programme is run over four, one-week block courses every 2-3 months. A wide range of unit standards and general skills to help students towards their formal apprenticeship in forestry are included in the programme. All students are signed into a forestry apprenticeship with Competenz which will result in four NZQA Certificates – two at level 3 and two at level 4. Regular visits from the Competenz account manager will ensure all apprentices are kept on track and working towards their qualifications. Businesses, students and others involved in studies and work to enhance the forestry and wood industry sectors in New Zealand are invited to apply to the WIDE Trust for a grant to support their efforts. Apply Online - www.widetrust.org.nz Source: WIDE Trust ![]() NZ reviewing Emissions Trading SchemeNew Zealand is reviewing its Emissions Trading Scheme to assess whether changes are needed to encourage businesses to accelerate a transition away from fossil fuels and not rely solely on carbon credits from forestry.The review follows advice from the Climate Change Commission, which has recommended that proposals be developed to strengthen incentives for gross emissions reductions, the Ministry for the Environment said in a statement on its website. New Zealand’s ETS has been criticized because current settings encourage companies to seek carbon offsets such as tree planting in order to reduce net emissions. The government last year said it wanted to prioritize gross reductions to achieve meaningful decarbonization by 2035 and beyond. “Given the New Zealand ETS is not expected to materially reduce gross emissions in its current form, amendments are required to achieve cabinet’s decision,” the Minister of Climate Change James Shaw said in a cabinet paper made public after the review was announced. The paper says the ETS currently provides a higher return to those who opt to invest in forestry as a way of offsetting their emissions, and as a result there has been a surge in planting. The ETS is forecast to drive as much as 670,000 hectares of new forestry by 2035, it said. Shaw said while the ETS must continue to support afforestation it should also become more effective at encouraging native tree planting, which would be a more permanent carbon sink. There are also risks from over-reliance on exotic forestry to offset gross emissions such as the increased area of land needed to be converted to forests, which can impact rural communities, he said. The Climate Change Commission, an agency established to provide independent advice to the government, has recommended that higher price settings in the ETS would curb the amount of forest planting driven by the scheme. However, that could bring additional costs to the economy through potentially higher energy prices, the cabinet paper noted. The review will seek to recommend how to shift the balance between gross and net reductions in the ETS including the impacts, trade-offs and risks to society and the economy associated with that shift, Shaw said. It will also assess what levels of net emissions should come from exotic and indigenous forests, and how to improve ETS incentives for more native tree planting. “This review will be welcomed by many who feel the current system simply incentivises land to be planted in exotic trees rather than tackling the underlying issue of pollution,” said Susan Kilsby, an economist at ANZ Bank New Zealand in Wellington. “The review is likely to deliver some significant policy changes. Whilst it is being undertaken, we are likely to see significant disruption in the existing carbon markets and markets for real estate that may have been destined for afforestation.” Source: financial post, Ministry for the Environment Brazilian log transport options being showcased![]() Within the Raptor® portfolio there are timber bunks (bolsters), chassis frames and different types of small fabrications made of steel, all of them used for forestry applications. Raptor® can adapt its product line (one piece bunk, base + stakes kit, one piece bunk + extendable tips or automated load securing system bunk (Raptor® Safe) to enhance the synergy between the trailer and the bolster. Compared to other brands, Raptor® says its products are lighter than any other bolster made of steel, matching its weight to the main aluminum brands in the market, and it’s stronger when compared to aluminum ones. The Raptor® product is being used in British Columbia (CA), Wisconsin and surrounding areas (USA), Alabama (USA) and the main markets in South America, Brazil, Chile and Uruguay. Source: Unylaser ![]() Exemplar timber designs through new Portal![]() In Australia and around the world, timber is being used in an ever-widening range of building projects. From residential and commercial to educational, aged care and healthcare, the advantages of timber are being realised through both traditional and innovative construction systems. The new WoodSolutions Project Portal website has been developed to make it easier for users to develop, design and build in timber. “Extensive experience consulting on the development of large-scale timber projects with the WoodSolutions Midrise Advisory team indicated the value of a resource providing reference to a broad range of international projects and the teams behind them,” said Eileen Newbury Head of WoodSolutions Program. “The Project Portal presents exemplar timber-rich projects in an easily accessible and searchable form, allowing users to not only view projects similar to those they might be considering, but to also see the companies involved in their development, design, construction and supply of materials. “Visitors to the site can not only view and review existing projects, but they can also submit their own projects, promoting their experience and expertise,” Ms Newbury said. Ms Newbury explained that the benefits driving the adoption of timber building systems range from increasing the green credentials of a project to enhancing the wellbeing of the occupants and even lowering the total cost and time to delivery. The new WoodSolutions Project Portal complements the existing range of free online resources which include a species matching app, more than fifty Technical Design Guides, fire test reports, a free expert advice service, recordings of presentations and podcasts, case studies and more. Visit the new site at woodsolutionsprojectportal.com.au Source: FWPA/WoodSolutions ![]() Issues around phasing out native logging in Victoria![]() There were mixed feelings when the Government announced an end to native forest logging in November 2019. Anger permeated the industry, with concerns that it would lead to many people losing their jobs, businesses closing and the collapse of regional towns that rely on logging as their main industry. Environment groups were pleased to see a first step towards banning native forest logging, with concerns of their own that stopping native forest logging by 2030 was not fast enough. The Victorian Forestry Plan (VFP) was created to map out the transition away from out of native forest logging. The plan stated: “The Victorian timber industry is transitioning due to a decrease in native timber resources because of fire, wildlife protection and consumer preferences. There were mixed feelings when the Government announced an end to native forest logging in November 2019. “The Victorian Forestry Plan provides more than $200 million to support workers, businesses and communities to transition ahead of commercial native timber harvesting ending in 2030. “To support future timber supply to the industry, the Victorian Government is investing in growing plantations and farmed timber...the native timber industry has a continued supply until 2024, then supply levels will step down until 2030 when native timber harvesting ceases.” Under the VFP VicForests was to continue supplying 253,000m3 of sawlogs per year until mid-2024. VicForests’ 2021-2022 Annual Report stated that they did not meet their agreed supply targets. In their report, VicForests highlighted legal proceedings as the main reason for both not meeting supply targets and their financial loss of AU$54.2 million over the 2021-22 financial year. There have been multiple court cases brought against VicForests, including by Environment East Gippsland, and the Friends of Leadbeater’s Possum. There is a court case currently underway between Wildlife of the Central Highlands (WOTCH) and VicForests. Other issues have been flagged outside of the court system. There have been concerns that VicForests has illegally logged areas set aside to protect drinking water quality. Ecologists were worried about logging in areas that were burnt in the Black Summer fires because of the negative impact on wildlife and recovery. There are also concerns about the impacts of salvage logging in Wombat State Forest and the Dandenong Ranges National Park. An assessment in April 2020 found that immediately ceasing native forest logging would save taxpayers AU$192 million. In February this year Nippon announced the closure of its Maryvale paper plant, which was a major customer of VicForests. Amid the controversy, ForestWorks, an industry-owned not-for-profit has been busy providing support to Victorian forestry workers on behalf of the Victorian Department of Jobs, Skills, Industry and Regions. A spokesperson from the Department of Energy, Environment and Climate Action says “we have seen many businesses and communities act early and take advantage of the transition and innovation funding and make proactive changes.” Hayley Forster, President of WOTCH, believes that continuing to log native forests will have serious consequences. However, Chris McEvoy, managing director of Radial Timber is worried about the impact that ending native forest logging will have on the industry. More >> Source: cosmos magazine ![]() PF Olsen NZ Log Market – March 2023![]() At Wharf Gate (AWG) prices for export logs increased $18 per JASm3 (14%) in March. This price increase was due to a shortage of logs to fill ordered vessels. Demand in China has increased but is still well below normal levels for this time of year. Domestic demand for lumber and therefore logs is weakening, and most log processing facilities are operating below capacity. The March PF Olsen Log Price Index increased $8 to $135, which is the highest since July 2021. The index is now $12 above the two-year and $11 above the five-year average. Domestic Log Market Most sawmills in New Zealand are operating well below capacity. The structural market in particular seems to be oversupplied. There was a lot of panic ordering and purchasing after the Covid lockdown period when the local supply of timber products and the imported supply of associated building products both had severely constrained supply chains. While the supply of sawn timber has caught up and there are now heavy stocks through the supply chain. Prices have held to date but there is a strong possibility of spot discounting to move product. One positive for New Zealand mills is price increases for sawn timber sales in Asia. Prices in all markets have increased by an average of 7%. Export Log Market China China softwood log inventory is about 4.7-4.8m m3 with radiata accounting for about 3.2m m3. Port off-take has increased to over 80k per day. This is a slightly higher daily offtake than the same time in the last two years. The problem is poor sentiment as the China market was expecting higher log demand. The CFR price for A grade radiata logs in China is in the range 140-145 USD per JASm3. There is price pressure as wholesale log prices in China have fallen. Wholesale prices for A grade radiata logs in Lan Shan have dropped from 970 to about 920 RMB in the last month. Spruce logs that had maintained their wholesale price when the price for radiata had dropped 5% in February, have now fallen significantly in the last two weeks from over 1200 RMB to below 1100 RMB per m3. Log buyers are also struggling to open Letters of Credit (LCs). Hopefully, this situation will improve as China has freed-up approximately 500b CNY (72b USD) by cutting its Reserve Requirement Ratio (RRR) to 7.6%. This is an attempt to stimulate the China market, so it can achieve a GDP growth target of 5% that was announced at the National People’s Congress in early March. China achieved 3% growth last year. The IMF reports that China has achieved this target in the first two months of 2023, and predicts China will achieve GDP growth of 5.2 this year. The China Caixin manufacturing PMI increased 2.4 points in February to 50.6. The index is above the significant level of 50 for the first time in seven months. (A reading above 50 indicates an expansion of the manufacturing sector). Sentiment also improved to a 23-month high as markets expect the recovery in consumer demand to be sustained. This general positivity in China markets does not seem to be manifesting in the construction industry. China generally is battling with a drop in productivity and this may be even more pronounced in the construction industry where state-owned companies have started to replace private companies. There is often a productivity gap between state-owned enterprises and private companies. More >> Scott Downs, Director Sales & Marketing, PF Olsen Ltd Source: PF Olsen ![]() CLT Toolbox launches software for mass timber buildingsIntroducing CLT Toolbox, the revolutionary mass timber design software that simplifies the engineering process and promotes sustainable building practices. With its streamlined design and comprehensive education, CLT Toolbox makes it easier and more cost-effective for engineers to design and build with sustainable materials. Developed with support from leading mass timber suppliers, this state-of-the-art software is changing the game for the construction industry.With the building industry setting ambitious goals for the decarbonisation of embodied carbon, timber plays a critical role in achieving these objectives. CLT Toolbox removes the barrier to entry, empowering all structural engineers to design with sustainable materials and further enabling the decarbonisation of construction. Key features of CLT Toolbox include: 1. Streamlined Design: CLT Toolbox eliminates the need for engineers to spend hundreds of hours creating custom Excel spreadsheets for timber design, saving incoming engineering consultancies over a $100,000 entry fee. The software optimises the design process, making it more accessible for engineers unfamiliar with mass timber. 2. Comprehensive Education: CLT Toolbox addresses the knowledge gap left by traditional university courses, providing education and resources tailored to the needs of structural engineers designing with timber. The software empowers engineers to confidently design with sustainable materials. 3. Tailored to Timber Design: CLT Toolbox is not a black box, offering a transparent and collaborative approach that takes into account supply chain availability and is designed as a web-based app. This tailored solution allows engineers to work efficiently and effectively with timber design. Source: buildingconnection CollectiveCrunch raises €1.4m for future growth![]() CollectiveCrunch’s proprietary Linda Forest platform gathers climate, geo and process data which is then used to generate AI models to enable better prediction of forest inventories and continuous monitoring of carbon storage in forests, information that is useful for the carbon trading markets. Thus, the company seeks to promote sustainable forestry at scale. After securing a strong position on the European markets since its foundation in 2016, CollectiveCrunch is now expanding in the United States and Latin America. “CollectiveCrunch is fundamentally changing how the forestry industry monitors forest health and CO2 capture thanks to its revolutionary platform that uniquely utilizes data and provides near real-time insights into forest biodiversity and forest carbon sink more accurately than ever before,” Nidoco’s CEO, Patrick Castrén, said in a comment to the investment. Rolf Schmitz, one of CollectiveCrunch’s co-founders, said the company was excited to have the support and trust of its investors trust amid the challenging economic times, highlighting the company’s unique position to underpin the digital transformation of the forestry industry. CollectiveCrunch recently got an approval from Verra, a nonprofit that operates standards in environmental and social markets, including the world’s leading carbon crediting program, the Verified Carbon Standard (VCS) program. According to Mr. Schmitz, the approval is an important milestone showing that with its solutions for near real-time monitoring and forest asset analysis CollectiveCrunch responds to the market’s need for transparency. Linda Forest, which covers 23 million hectares (approximately 56,8 million acres) of forest, is currently being used by 7 out of the top 10 forestry players in the Nordic region, the green tech company said. Source: Carbonherald.com ![]() Introducing the New Jobs and Skills Council![]() Working with our partner organisation ForestWorks, we will support the voice of industry in the Australian skills and VET system. As a JSC, Skills Insight will be working to examine all parts of the skills pipeline to analyse what is working and what is not and to describe strategies and solutions on behalf of all stakeholders. This means our scope of work will be well beyond training package projects. It will also be highly collaborative, working with employers, unions, RTOs, other JSCs and Jobs and Skills Australia to provide strategic leadership and align efforts across industries. Drawing on its networks, Skills Insight will support industry, government and the VET sector to address system-wide barriers and add value across the economy and all education pathways. Built on the base of Skills Impact's people and values, our drive to improve industry skills and training delivery is the same. We are excited to be able to empower industry and all stakeholders to have a say in all stages of the system, from the development of national skills standards, through to training delivery and assessment. Skills Impact held a Skills Service Organisation contract with the Commonwealth Government from 2016-2022. A submission to move into the role of a Jobs and Skills Council, as Skills Insight, received over 200 letters of industry support as well as the support of Skills Impact's Members, the National Farmers' Federation, and ForestWorks. A website for Skills Insight will be available in the coming months. Subscribe for updates from Skills Insight. Read more about Skills Insight. Source: Skills Impact On-orbit fire detection technology launched![]() According to the Company, the challenge today is that most wildfires happen in the afternoon, and it often takes up to one and a half hours for a publicly available satellite to detect the fire. The main delay with most satellites originates in the need for a satellite to pass over a ground station to download the data. However, OroraTech has overcome this problem by compressing the fire information and sending it down to Earth via an inter-satellite link, avoiding the need to overpass a ground station. Thomas Grübler, CEO of OroraTech, speaking on the technology, stated, “developing solutions based on our customers’ key problems have led to this technological breakthrough. This opportunity is especially interesting for industries where real-time data is crucial. This includes wildlife conservation, commercial forestry, agriculture, insurance, food security, or critical infrastructure monitoring.” “We will provide on-orbit detection at an unprecedented speed to our clients with the unique satellite constellation launched in 2024 and ready to be booked by our clients. The unique data will especially cover the peak burn period in the afternoon when customers currently rely mostly on manual plane observations.” Source: spacewatch.global Jobs
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