Friday Offcuts – 11 October 2024

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Welcome to Friday Offcuts.

This week, there is an interesting interview with David Turner, CEO of New Zealand's Sequal Lumber. The company is navigating the challenge of balancing rising timber demand with a significant mill upgrade. Turner, who will also be a keynote speaker at WoodTECH 2025, shares his perspective on maintaining operations during this crucial period.

Across the Tasman, the Australian Forest and Wood Innovations (AFWI) has committed A$5 million to pioneering research on climate change and sustainable forest management, bringing total research investment to A$13.3 million. In addition, a new 'Nature Positive Matters' initiative has launched at this week's Global Nature Positive Summit.

On the international stage, all eyes are on the European Union as it delays the implementation of its new deforestation regulations, which are set to reshape global timber markets. Closer to home, the latest Australian Timber Market Survey highlights significant price fluctuations across softwood and hardwood products, providing insight into evolving market conditions.

In technology, we preview November's ForestTECH 2024, which promises to feature cutting-edge innovations from global developers. We also highlight a virtual reality training tool from the University of South Australia, a virtual tour of Drax’s Mississippi pellet plant, and a promising new hybrid pine species from RPBC in New Zealand.

Read these and more in another packed edition of Friday Offcuts. Enjoy.

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Boom or bust in the sawmill industry

When a log of pinus radiata goes through the Sequal Lumber mill in Kawerau, parts of it can end up in six different countries. State of the art software at the mill scans each log for its size and shape, then cuts it precisely according to customers' orders.

In an industry overshadowed by news of forests and mills closing down, Sequal is struggling to meet growing demand and is getting ready to double production. Soaring power prices are nowhere near the biggest challenge for chief executive David Turner. It is ensuring his customers do not run out of wood when the factory shuts down for six weeks to upgrade.

"Basically 60 percent of my supply goes to about 12 companies around the world and I need to make sure that they don't run out, because once they get forced into a position where they have to find an alternative it will be difficult for us to reassert the relationship as it was."

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Source: RNZ

Editor's note: David Turner will also be a keynote speaker at next year's FIEA event, WoodTECH 2025.


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AFWI announce A$5 million in research funding

Australian Forest and Wood Innovations (AFWI), hosted by the University of Tasmania, announced eight research projects that will be funded through its inaugural A$5 million National Open Call for Research.  

This marks the first research funded through the Albanese Government’s A$100 million commitment for AFWI. AFWI’s $5 million funding will catalyse over A$8.3 million in industry and research contributions, bringing the total investment in research for the forestry and wood products industries to A$13.3 million.

The projects were recommended by AFWI’s Research Advisory Committee, a panel of industry and research experts, ensuring the projects align with industry needs, deliver transformative outcomes to the sector and support growth in research capacity.

The Minister for Agriculture, Fisheries and Forestry, Julie Collins, said that the selected projects span a diverse range of research areas aimed at addressing key opportunities and challenges faced by the forestry and forest products industries. “The first round of projects will play an important role by delivering research that seeks to provide climate change solutions, make the most of our available wood fibre, and support the sustainable management of Australia’s forests,” Minister Collins said. “I congratulate the eight successful projects from the inaugural National Open Call.” 

AFWI’s Chair of the Research Advisory Committee, Professor Rod Keenan, highlighted the importance of collaboration between industry and researchers. “These projects are the first step in developing new partnerships between industry and research organisations under the AFWI arrangements,” Professor Keenan said. “The Research Advisory Committee was impressed with the level of interest in this call and overall quality and breadth of applications.

“In addition to addressing industry needs, the eight funded projects will support 36 early-career and higher-degree researchers, helping to cultivate the next generation of forestry research professionals, enhancing the long-term sustainability of the sector.” 

The eight projects selected for funding include:
  • Evaluation of suitable timber species for Australian sports flooring systems 
  • Modernising Australian timber windows: addressing regulatory challenges, resource and material shifts 
  • Odour misinformation: a new way to reduce vertebrate pest damage to plantation seedlings 
  • Long-term creep behaviour of Australian structural glulam 
  • Developing more productive plantation trees better adapted to changing environments 
  • Enhancing fire resilience in Australian plantations 
  • Future lightweight timber framing: productivity 
  • Delivering fauna trends in forestry landscapes using sensors and AI 
The successful projects will be invited to enter into contract negotiations with AFWI and are expected to begin research in the coming months. A complete list of project partners and details can be found here.

Source & image credit: AFWI


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International technologies for local foresters

Discounted early-bird registrations to this year’s eagerly awaited annual ForestTECH 2024 series finish in one week, on Friday 18 October. Registrations to this year’s event can be made here. On-site and virtual registrations to this year’s annual ForestTECH 2024 event continue to flow in.

For local forest resource and tree crop managers, ForestTECH 2024 will be running on 20-21 November in Rotorua, New Zealand and on 26-27 November 2024 in Melbourne, Australia the week after.

Some truly innovative approaches that have been or are being developed from technology providers and end users from across New Zealand and Australia, both in data capture and in tree crop management will be profiled this year.

Because of this well-earned reputation, a raft of international technology developers and forest companies from outside Australasia this year for the first time will be outlining innovative new equipment, technologies and operating practices to local foresters at ForestTECH 2024.

International precision forestry tools - 2024 presentations include;
  • The Next Generation of Disruptive Geiger mode Airborne LiDAR Technology. Efficient mapping of large areas in ultra-high resolution (USA).
  • Revolutionising Aerial Monitoring. A unique solution for future data collection – using autonomous hydrogen powered airships (Finland).
  • Using your Phone as a Digital Inventory Tool. A new in-forest designed and developed tree measurement application using an in-phone LiDAR scanner (Sweden).
  • Precision Forestry Tools - from Forest Nursery to Market. Innovative smart forestry tools being developed and used in-house by a major global wood fibre provider (South Africa).
  • Leveraging Mechanised Harvesting & Agricultural Technologies into a new Mechanised Planter (USA)
  • Canada’s Forest Machine Connectivity project. Using IoT to improve productivity in real time through the forest supply chain (Canada)
  • Pioneering Transparency in the Forest Supply Chain. A new blockchain-based data management and digital track and traceability system enabling real-time collection, recording, sharing, and auditing of supply chain data (USA).
For more information on the conference programme and workshops being planned around the November events, please visit the website.

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Business knows nature positive is good for bottom line

Leading Australian businesses know that what’s good for nature is also good for their customers, shareholders and bottom line. That’s why more than 20 organisations including Blackmores, AACo, Wesfarmers, Bega Group, Qantas, Rest Super and Lion Group have co-founded Nature Positive Matters.

This initiative creates a network of leaders who recognise the growing international importance and economic value of looking after nature. The network was launched this week, on the eve of the Global Nature Positive Summit, which attracted world leaders, environmental groups, First Nations Peoples and others together to drive private investment in nature repair.

Nature Positive Matters members will work together to:
  • support business uptake of nature-related reporting and data collection
  • pilot programs to inform policies and investment decisions that are good for nature
  • develop tools to help investors understand whether an economic activity is environmentally sustainable
  • help other businesses to take action to protect and repair nature.
Being part of Nature Positive Matters will provide businesses with the confidence to take action on nature and efforts to reverse biodiversity loss. The founding members are already leading the way on nature reporting and are working to embed nature in their governance and business strategies.

In 2022, countries signed up to the landmark Kunming-Montreal Global Biodiversity Framework that has a goal of halting and reversing biodiversity loss and environmental damage. That’s what being nature positive is all about.

It comes as more than 20 Australian businesses and financial institutions have also signed up to report on their nature risks and impacts using Taskforce on Nature-related Financial Disclosures (TNFD) international standards.

To help businesses do their nature reporting, Australia is also putting together the data and information they need. We are currently working on a natural capital accounts framework with the United States and Canada, which will tell us the value of the natural assets our economy relies on – such as forests, soils, grasslands and mangroves.

“It’s fantastic to see some of Australia’s leading businesses working to look after nature, and inspiring others to do the same, " said Minister for Environment and Water, Tanya Plibersek. “Nature Positive Matters will help business understand and measure their impacts and their dependence on nature. As we know, you can’t manage it if you don’t measure it."

Mark Rogers, Chief Executive Officer of New Forests, said, “We’re proud to join some of Australia’s leading businesses as we collectively work to measure our impacts and dependence on nature and provide guidance to other stakeholders. We all need to start somewhere, and the Australian government’s launch of Nature Positive Matters is a positive first step.”

Mr Rogers added, “The rising emphasis on nature positive is not just about compliance and reporting for investors, it will become a market differentiator and a significant investment opportunity.”

Source: Australian Government


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New Timber Market Survey (TMS) report

The latest edition of the Timber Market Survey (TMS) report has been released for the June quarter 2024.

Softwood timber products – Quarterly price movements
  • Prices for untreated MGP10 structural timber decreased by as much as -0.7%, while prices for untreated MGP12 products remained stable. 
  • Prices for treated decking decreased by -3.6% and treated sleeper prices decreased by -0.7%. 
  • Prices for particleboard and plywood products decreased between -0.1% and -3.5%, while MDF prices remained stable. 
  • Prices movements for LVL and I-joist/I-beam products were downwards, between -1.1% and -3.2%.
Hardwood timber products – Six monthly price movements
  • Price movements for structural hardwood products were upwards, between 1.3% and 4.2%. 
  • Price movements for hardwood flooring products were upwards, between 1.5% and 5.6%.
The TMS collects price data through quarterly surveys of a representative sample of timber market participants in eastern Australia. All quarterly TMS reports contain price movement information for softwood timber, panels and engineered wood products. The June and December quarter editions also include price movement information for hardwood timber products surveyed over a six-month period.

The TMS is prepared by Indufor and funded by eight major Australian forestry organisations: Forestry Corporation of NSW; HQPlantations; OneFortyOne Plantations; the Queensland Government Department of Agriculture and Fisheries; Green Triangle Forest Products; Sustainable Timber Tasmania; Southern Cross Forests; and HVP Plantations.

Further information and the latest Timber Market Survey report is available here: Download the June quarter 2024 TMS report

Source: Indufor



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EU deforestation regulations delay supported by wood processors

Pushing the start date for the European Union Deforestation Regulations out to December 2025 is welcomed by the Wood Processors and Manufacturers Association of NZ.

‘We have been working on the assumption that EUDR will happen in December 2024, so we are quite advanced in our solution development for our wood product exporters. But having more time to further develop our solution is beneficial’ said WPMA Chief Executive, Mark Ross. ‘The proposed 12-month delay is helpful in fine-tuning our due diligence systems and ensuring that they are right’.

Our approach has been guided by a specialist working group that includes WPMA members, Forest Owners’ representatives, and government. Since June, the Group has worked through the core components of the regulations, consulted with their European customers, and advanced the necessary documents to meet the regulations as they currently read.

Without the support of the Forest Owners, we would be unable to make the progress that has been achieved. Take for example, on the supply side, where the key information required in the due diligence statements is the provision of geo-coordinates of all plots of land where the wood was harvested. This includes the evidence that the wood is deforestation free (i.e. before and after proof). This detail requires technical expertise and collaboration, something that has been readily forthcoming from the forest industry.

New Zealand exported NZ$100 million of wood products to the EU last year. This makes it a smaller market in the context of NZ$2.8 billion of total exports, but it is an important market for value-added wood products and a critical market for some companies, Ross said. ‘It’s definitely a strong market and one we want to grow’.

From what we have seen with the EUDR over the last few months, nothing is certain. We hope to see the 12- month delay passed by the EU Parliament but are conscious that the clock keeps ticking, hence our work on solution development remains a WPMA priority.

Source: WPMA


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Why wooden skyscrapers are popular

At the University of Toronto, workers are building a 14-story structure near the football stadium that will house classrooms and faculty offices. What makes this project unique is its construction method: they are using large timber beams, columns, and panels that are bolted together.

As each piece arrives on a flatbed truck, a crane lifts it into place, and workers attach it using metal connectors. The half-finished building looks like flat-pack furniture being assembled.

This tower utilises mass timber, which replaces traditional steel beams and concrete with large wooden components that can be over half the length of a football field. Although it's still not very common, mass timber construction is becoming more popular and is starting to appear in cities around the world.

The tallest mass timber building to date is the 25-story Ascent skyscraper in Milwaukee, completed in 2022. As of that year, there were 84 mass timber buildings of eight stories or more either completed or under construction worldwide, with another 55 proposed. Most of these buildings are in Europe (70%), followed by North America (20%), and a smaller percentage in Australia and Asia. By 2023, at least 1,700 mass timber buildings had been built in the United States alone.

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Source: ZME Science
Image credit: University of Toronto


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Bushfire preparation and preparedness - Australia 2024/25

Editorial: John O'Donnell

It is the author’s belief that South East Australia continues to be not adequately prepared for upcoming bushfires. And, to be frank, we as a society have learnt very little following 2019/20 and earlier bushfires, especially in regard to inadequate bushfire mitigation. As a consequence, communities, firefighters and the ecosystems are highly exposed over the coming bushfire season. Disaster insurance costs are going up every year and will continue to go up with current limited adopted fire mitigation approaches.

This article focusses on bushfire preparation and preparedness and not bushfire seasonal outlook, which will be coming out over the next couple of months.

Good bushfire preparation and preparedness is important in order to reduce risks to household risks, communities and firefighters. It reduces fuel loads and strata, reduces areas of contiguous fuels, reduces bushfire risks, assists in controlling bushfires, reduces bushfire intensity and reduces the cost and impact of bushfires. This includes rising insurance costs.

The author considers that there are 15 main areas of concern in relation to sound bushfire preparation and preparedness for major bushfires across SE Australia, these concern areas are outlined below.

Number 1 concerns inadequate prescribed burning and grazing and consequent high fuel loads across forested landscapes across SE Australia, this will not protect SE Australia/ states. A number of SE Australian states are under 1% of forest areas prescribed burnt per year. Refer to state prescribed burning and wildfire data in this link.

Number 2 relates to the fact that SE Australia is not adequately considering nor effectively using adaptive management across forested landscapes, including low intensity burning and forest thinning to maintain forest health and reduce bushfire risks. There are limited attempts to set up fire resilient landscapes. The author considers that US approaches for resilient fire landscapes in many areas are way ahead of Australia.

Number 3 pertains to an inadequate fire mitigation funding balance, noting that there is further disaster funding detail in 2020 Menzies Research Centre Strengthening Resilience: Managing natural disasters after the 2019-20 bushfire season.

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Source & image credit: John O'Donnell



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Drax launches virtual tour of Mississippi plant

Renewable energy company Drax is excited to announce the launch of its virtual tour of its Mississippi pellet plant. The tour allows visitors to explore the plant’s operations, including the production of a wood pellet.

The virtual tour offers a comprehensive look at the entire pellet production process, from raw fibre to the final product. Follow our team members through various sections of the plant.

Our goal is to educate the public about the importance of sustainable energy and the role that Drax’s operations play in the larger timber industry,” said Matt White, Executive Vice President of North America Operations, Drax. “This virtual tour not only highlights the technologies and methods we employ, but also gives the audience a look at our process and our commitment to safety and sustainability.”


The virtual tour is now available on www.drax.com/gloster and is free for all users. You can also find it on our social channels, including Facebook, Twitter, and LinkedIn. It serves as an educational resource for students, educators, organizations, and anyone interested in the pellet production process.

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Source & image credit: Drax


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Virtual reality separates the wood from the trees

Virtual reality is set to revolutionise Australia’s $24 billion forestry industry by training workers risk-free, remotely, and much faster. A VR immersive training tool developed by the University of South Australia with the support of the Green Triangle Forest Industry Hub is also expected to save the industry millions of dollars in the long term.

Lead researcher and immersive technology expert, Dr Andrew Cunningham, and developer, Jack Fraser, have spent the past year working on the VR tool to support training in South Australia’s forestry mills, and hope to roll it out nationally.

The ‘Mills Skills VR’ tool uses virtual reality across a range of scenarios, immersing users in a 3D environment that simulates all aspects of forestry practices, training them in a risk-free setting.

“For the untrained, the forest industry is inherently risky, especially in the mills because it involves large, heavy machinery,” Dr Cunningham says. “It is also a fast moving and busy environment, so if we can train workers to recognise the hazards and equip them with the skills before they step into the mill, it’s better for everyone.”

A significant benefit is that the trainees can use the VR tool anywhere in Australia, with a virtual reality headset, saving time and costs in flying them halfway across the country.

Workforce Development Manager at the Green Triangle Forest Industry Hub, Josh Praolini, says the VR training model could reshape how training is delivered to forest industry workers in Australia. “At the moment, we rely on access to trainers and machinery that is an essential part of the mill operations. By training new recruits on these machines, you slow or halt production, and expose them to potential risks,” Praolini says.

“This virtual reality tool allows us to safely introduce recruits to multiple scenarios they could encounter in the mill, as well as offering updated training to existing workers without impacting day-to-day operations of the mill.” 

Beyond the VR training, UniSA researchers are using immersive analytics tools to gather data on plantations and view the trees virtually in a 3D environment, checking for defects, wood quality and growing conditions.


“The ability to track, monitor and interact in virtual environments opens the door to an exciting future for Australia’s forest industry,” Mr Praolini says.

Dr Cunningham is confident the industry’s willingness to embrace new technology will also make it an appealing career choice for high school and university students. “The forest industry currently supports around 80,000 direct jobs in Australia, but we still need a lot more workers. Virtual reality can take people into a mill and a plantation, showcasing what is involved and the opportunities that lie ahead for a progressive and satisfying career.”

The next step is to adapt the training tool to other industries where safety is important, including building and manufacturing.

Source & image credit: University of South Australia



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Hybrid tree provides an important option in NZ

Long-term trial sites for a Pinus radiata and attenuata hybrid are proving its potential for use in high altitude, snow-prone sites.

Hybrid trees at trial sites in the Mackenzie Country of the South Island, one of several trial sites which were established in 1998 by the Forest Research Institute, are now nearing harvest. The indications about the trees’ growth and wood properties are very positive.

'Pinus radiata tends to be prone to snow damage at high altitude,' says Tree Improvement Manager for the Radiata Pine Breeding Company (RPBC), Mark Paget. 'Radiata pine trees growing at the trial site alongside the hybrid have experienced high attrition rates. However, the hybrid trees are doing very well and traits we measure in pinus radiata, such as stem diameter and wood properties like density and stiffness, show that the hybrid trees are equal to pure radiata on these sites.'

Forest owners such as Rayonier Matariki, who have large areas of their forest estate planted on high altitude, snow-prone sites, are showing great interest in the hybrid trial results, says Mark. The closely related radiata pine and attenuata species appear to lend themselves naturally to hybridisation.

'It’s important to note that research into alternative species is a long-term process, as illustrated by this work, which goes back decades. We’re fortunate that industry leaders, such as Proseed’s General Manager Shaf van Ballekom have chosen to collaborate with RPBC and have invested expertise, energy, and funding into research activities such as these over an extended period. The wider industry is now able to benefit from this knowledge and to use it to support informed decision-making.'

Based on the encouraging trial results and its ongoing tree breeding actitivites, RPBC and Proseed have now established more hybrid trials using up-to-date, newer, high-productivity radiata parents.

'The signs are very encouraging that the radiata pine/attenuata hybrid is a viable alternative to Douglas fir. Douglas fir has traditionally been the preferred species in areas prone to heavy snow load, such as Southland and Tekapō, where Dothistromo (needle blight) is not prevalent.'

Having a wider portfolio of plantation trees at its disposal would be beneficial for the industry, however, it requires long-term planning and support from the industry and Government.

More >>

Source & image credit: RPBC


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New Director General for FSC International

On behalf of the Forest Stewardship Council (FSC), the FSC International Board of Directors is pleased to announce the appointment of Dr. Subhra Bhattacharjee as the new Director General, effective 01 October 2024.

Subhra Bhattacharjee brings over 20 years of experience in public policy and programming in climate change and sustainable development, having worked closely with governments, NGOs, academia, and the private sector worldwide. She has worked for the United Nations, and prior to that for the Reserve Bank of India, with a brief stint in academia. Bhattacharjee holds a Master of Philosophy in economics from Jawaharlal Nehru University, and a Doctor of Philosophy in economics from Iowa State University.

Stuart Valintine, Chair of the FSC International Board of Directors, said, “Subhra’s expertise and experience in international development and leadership will serve her well as she steps in at this critical juncture in FSC’s organizational growth.”

Bhattacharjee’s ambitious vision aligns with FSC’s mission and future goals, aiming to leverage its membership, network and collaborative partnerships to strengthen global forest stewardship for protection and sustainable management of the world’s forests. .

Commenting on the appointment, Bhattacharjee said, “It is an honour and a privilege to join FSC as Director General. We must act urgently to mitigate the ongoing global climate and biodiversity crises, and the conservation, restoration, and sustainable use of forests with respect for forest-dependent communities is critical for this. In this context, today FSC’s mission and role are more relevant than ever. I look forward to working with the whole FSC community and partners to maximize the contribution of forests to sustainable development.”

Outgoing Director General, Kim Carstensen says, “Guided by our global vision to meet the world’s need for forest products while protecting forests, FSC has contributed immensely towards a sustainable planet over the last 12 years, and I wish Subhra every success in this vital role. Her expertise and vision are exactly what FSC needs to continue to provide solutions to some of the most pressing challenges of our time.”

Bhattacharjee’s appointment brings new perspectives and energy to the organisation, opening the next chapter in FSC's mission to promote responsible management of world's forests and securing their long-term resilience.

Source & image credit: FSC


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OneFortyOne announces renewable power investment

OneFortyOne is proud to announce a significant investment of A$30 million, in a renewable biomass power generation project at our Jubilee Sawmill (Mt Gambier, SA). The project, which includes the installation of a new boiler and steam turbine, represents a total investment of approximately A$90 million. This initiative underscores our commitment to continuous investment, demonstrating our long-term dedication to the region, sustainability, and innovation.

The Jubilee Sawmill first started producing electricity in 1956, producing energy for Mount Gambier until the 1970s. The new turbine will generate more than enough electricity to power the entire Jubilee Sawmill site. The excess renewable electricity can be returned to the grid or used to enable future electrification of forklifts, trucks and other machinery.

It is expected to be completed by 2026 and will provide the following benefits:
  • This project will help us achieve over 70% of our Scope 1 and 2 emissions reduction target
  • Over 50% reduction in OneFortyOne’s total combined Scope 1 and 2 emissions
  • Over 85% reduction in OneFortyOne’s total Scope 2 emissions
  • Over 9,000 tCO2e emissions avoided on 2021 levels
  • Estimated total annual renewable electricity generated: 43,800 mWh
Wendy Norris, CEO said: “The Jubilee Sawmill has been part of OneFortyOne since 2018 and since that time we have proudly invested in the team and the site every year. The need to replace our current boiler, which is reaching its end of life, has presented us with a unique opportunity to rethink how we utilise steam and consume electricity at our site.

This investment not only supports our decarbonisation goals but also positions us for future opportunities in renewable energy. By installing a steam turbine power generation system, we will be able to produce electricity from biomass, significantly repurposing wood fibre, preparing for our future energy needs.”

Peter Malinauskas MP, Premier of South Australia, commented: “This investment into one of South Australia’s most significant industries is exciting for our State. This is a welcome announcement, which means longevity of technology, reduced carbon emissions and renewable energy going back into the grid.”

OneFortyOne’s investment in renewable power generation at Jubilee Sawmill is a significant step towards reducing our carbon footprint and enhancing our energy efficiency. We are excited about the future possibilities this project will bring and remain committed to investing in our business, valuing our fibre and emissions reduction.

Source & image credit: OneFortyOne


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And on that note, enjoy your weekend. Cheers.

Ken Wilson
Editor, Friday Offcuts
Web page: www.fridayoffcuts.com


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