Friday Offcuts – 19 July 2024

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Welcome to this week's edition of Friday Offcuts.

The latest Australian forest statistics from ABARES reveal a drop in log harvests, but an increase in production values due to inflation. You can find all the raw data and tables on their website. The Tasmania Regional Forestry Agreement (RFA) outcomes report is also open for industry consultation, with a submission deadline of 30 August 2024. This long-term review focuses on managing native forests.

In New Zealand, the Government has released a new climate strategy and an update to the Emissions Reduction Plan. Key features include resilient infrastructure, clean energy, technology investment, and forestry. However, the country is not on track to meet its long-term emissions targets. There are also calls to increase forestry plantings to meet the growing demand for carbon forestry, mass timber construction, and biomass.

Lastly, Forestry Australia’s recent Fire Summit emphasized the need for new ideas to manage increasing bushfire risks. Innovations include Scion's use of VR to train foresters, wood-based EV batteries and Hobart's plans to build the world's largest timber- roofed stadium.

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

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Latest Australian forest and wood products statistics

ABARES has released the latest Australian forest and wood products statistics (AFWPS), which is a collection of data on key indicators of activity in the Australian forest and wood products sector for 2022-23.

The data covers the value and volume of logs harvested, the performance of the wood product manufacturing sector, changes in Australia’s commercial plantation estate, forest sector  employment, data on new housing commencements and the trade of wood products.

In 2022-23, the volume of logs harvested in Australia fell by 3.9% compared to 2021-22. Average unit values (prices) increased significantly over the same period, resulting in the nominal gross value of production (GVP) of logs harvested increasing by nearly 7% to $2.44 billion (AUD) in 2022-23.

However, much of the increase in unit prices has been driven by recent high levels of inflation across the economy. Inflation stood at 7% in 2022-23 as measured by the consumer price index, resulting in the real (adjusted for inflation) value of logs harvested being stable in 2022-23 compared to 2021-22.

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Source: ABARES


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NZIF welcomes NZ Government’s new climate strategy

The New Zealand Institute of Forestry (NZIF) welcomes the Government’s new climate strategy, released this week, and looks forward to seeing more detail within the second emissions reduction plan. This strategy aligns with NZIF’s commitment to sustainable forestry and highlights the critical role all our forests play in achieving New Zealand’s climate goals.

Key Pillars of the Strategy:
  1. Resilient Infrastructure and Prepared Communities: The strategy emphasises building resilient infrastructure and ensuring communities are well-prepared for climate impacts. New native forests and professionally managed plantation forests can contribute significantly to this by creating green buffers and stabilising landscapes.
  2. Credible Markets for Climate Transition: Pricing emissions fairly, letting the market be a market and providing clarity is a positive step. Sustainable forestry practices are crucial in providing NZU’s and other ecosystem services, fostering a robust market and removing carbon from our atmosphere. 
  3. Abundant and Affordable Clean Energy: The focus on clean energy must include promoting bioenergy from forest residues, contributing to a diversified and sustainable energy mix. NZ’s plantation forests are well-placed to provide the resource required to produce bioenergy at scale. 
  4. World-Leading Climate Innovation: The strategy aims to boost the economy through climate innovation. NZIF supports research and development, particularly in sustainable forestry practices and innovative technologies, to enhance carbon sequestration.
  5. Nature-Based Solutions: Utilising nature-based solutions to address climate change is at the heart of the strategy. Forests are essential in this regard, offering carbon sequestration, enhanced biodiversity, and ecosystem services.
The Government’s response is focused on transitioning New Zealand to a low-emissions economy in a cost-effective way, using effective and efficient policies while taking advantage of our unique landscape to remove greenhouse gases from the atmosphere. NZIF believes this holistic approach is crucial and our forests and forestry will be instrumental in leveraging New Zealand’s unique natural advantages.

President of NZIF, James Treadwell, stated, “The Government’s new climate strategy outline is a good start. We are particularly encouraged by the emphasis on nature-based solutions and sustainable markets. Forestry is poised to play a pivotal role in these efforts, and NZIF is committed to supporting and advancing these initiatives.”

NZIF looks forward to collaborating with the Government, industry stakeholders, and communities to implement this strategy effectively. By working together, New Zealand can lead the way in climate action and sustainable forestry.

Source: NZIF


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Mass timber adoption increases within NZ construction

A significant upsurge in mass timber awareness and application was highlighted by the Building Research Association of New Zealand (BRANZ) in its survey of building and construction experts.

Wood Processors and Manufacturers Association Chief Executive, Mark Ross, says the finding is encouraging and signals an increased adoption of engineered timber products in New Zealand by builders, designers and architects. “The timber that we are talking about is not only renewable but has environmental advantages over steel and concrete when it comes to carbon storage and durability,” Ross says. “With New Zealand’s sustainable forestry model, using locally grown timber supports our circular bioeconomy, climate change targets, and domestic processing of logs.

Forecasting by Deloitte indicates that changing our market share to timber by 25% would result in the removal of an additional 920,000 tonnes of carbon dioxide from the environment each year. Greater use of timber is critical to rebuilding New Zealand’s economy, boosting our GDP, and providing regional jobs in a highly productive sector.

The BRANZ survey is carried out biennially. Data compared over a period of five years highlights noticeable growth in the role of mass timber use in New Zealand construction. This mirrors global trends, with the engineered wood products market projected to grow by 77% to $268 billion (NZD) by 2031. Changes in engineered timber use can be attributed to a heightened focus on carbon-neutral construction practices, the increasing demand for energy-efficient buildings, and consumer preference for natural materials. 

The BRANZ survey is supported by Mid-Rise Construction midrisewood.co.nz/, a co-investment programme between MPI and Red Stag, which is stimulating the use of mass-timber engineered wood products in construction.

To download a copy of the BRANZ report, please click here.

Source: Wood Processors and Manufacturers Association



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Tasmanian RFA outcomes report released

The outcomes report for the fifth review of the Tasmanian Regional Forestry Agreement (RFA) has been released. The report marks the first stage in the independent review process, which will now progress to stakeholder consultation.

Interested individuals are encouraged to provide their feedback to the outcomes report through a Have Your Say consultation managed by the Tasmanian Department of State Growth. Individuals have until midnight on 30 August 2024 to have their say via this link.

Established in 1997, the RFA is a joint initiative funded by the Commonwealth and Tasmanian Governments that sets out a long-term plan for the management and conservation of Tasmania’s native forests. The outcomes report covers the 2017 to 2022 period and marks the first review since the RFA was extended in 2017 for an additional 20-year period. The 5-yearly review process is critical to ensuring the Tasmanian RFA’s objectives are still being met.

As part of the RFA review, Professor Jerry Vanclay from Southern Cross University has been appointed as the independent reviewer. He will now undertake a detailed consultation process as he considers the outcomes report and develops his own independent report. Professor Vanclay is a pioneer in the modelling of forest ecosystems and has significantly influenced the sustainable management of forests worldwide.

The comprehensive review underscores the commitment to sustainably managing Tasmania's forest resources and highlights significant advancements and compliance in forestry practices.

Source: Australian Government


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Call for new bushfire policy at Forestry Australia Fire Summit

A leading forestry expert has strongly criticised opponents of prescribed burning in forests and has urged a radical new approach combining traditional Indigenous knowledge and bushfire science to tackle bushfire policy.

Dr Tony Bartlett AFSM, an independent forestry consultant, told a bushfire conference in Melbourne that a quantum shift in thinking and practice was needed to manage climate change impacts on native forests. “The increased frequency of high intensity landscape-scale wildfires is having an impact on forest resilience,” he said in a presentation to the Forestry Australia Fire Summit.

“For forest fire management, we need adaptive and innovative actions drawing from both traditional knowledge and bushfire science.”

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Source: Latrobe Valley Express


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Carbon forestry needs a stronger Govt policy commitment

With carbon forestry prices declining, there is growing anticipation for the new government to take decisive action to address challenges and stabilise opportunities in the sector. The Minister for Climate Change, Hon. Simon Watts, will discuss these issues at our annual conference, Carbon Forestry 2024 on 20-21 August 2024, in Rotorua, NZ.

The keynote speaker is Jo Saleeba, Head of Sustainability for New Forests Asset Management. Jo will discuss the key international perspectives on carbon markets. New Forests has been actively developing investments in nature-based solutions since inception in 2005. This includes pioneering transactions in the Californian and Australian carbon markets and investing in wetland, stream, and biodiversity banks in the United States and Asia. They operate in government-regulated and voluntary carbon markets in all the regions in which they invest. Their vision is to see investment in land use and forestry as central to the transition to a sustainable future.

Who else is speaking at this year’s Carbon Forestry Conference?
  • The Honourable Simon Watts, Minister of Climate Change
  • Barry Anderson, General Manager - Sector Analysis at the Climate Change Commission
  • Our expert panel on “NZ ETS - Government Policy and the State of the Market”
  • Sean Weaver, CEO of Ekos on “Global Trends in Voluntary Markets and How they Translate to Local Contexts”
  • David Hall, and Renee Raroa of Toha Foundry on “Opportunity in Crisis: How the ECX uses Radical Collaboration to Unlock Finance for Native Forest Carbon”
  • Kristin Green, Economist & Environmental Policy Consultant on “Do the Government and Climate Change Commission have different visions for the NZ ETS?”
Further details on the event can be found on the event website.

Source: Carbon Forestry 2024, Innovatek



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NZ Emissions Reduction Plan - targets slipping

NZ's Climate Change Minister, Simon Watts, released the Government’s draft Emissions Reduction Plan on Wednesday. This follows the release, last week, of the Government's climate change strategy. 

The Government is no longer on track to meet its third emissions budget, according to projections released with its draft Emissions Reduction Plan. Significantly more work is needed to meet New Zealand’s Paris commitments, which will likely result in billions of dollars being sent offshore to pay for international climate mitigation.

Projections published at the end of 2023 based on policies from the last Government, showed the country hitting its first three emissions budgets. Under new projections published today, which incorporate decisions the new Government has made to bin a host of Labour-era policies like decarbonising heavy industry and subsidies for EVs, the government will sail 17 Mt CO2-e above that third budget, which runs from 2031–35.

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Source: The New Zealand Herald

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Unlimited potential of VR for forest thinning

How a virtual reality (VR) and gaming engine could add another tool to the forestry training kit.

A future where new foresters are trained to thin trees from the safety of a virtual reality forest before more advanced real-world training could be just around the corner. And the technology to get us there could also be used for training skills across the forestry industry. Scion’s Virtual Thinning project uses an off-the-shelf game engine with in-house tweaks and programming to create an interactive and 3D virtual reality training tool.

The tool would supplement on-site training allowing initial tuition before workers go into forestry blocks. The project is funded by the Precision Silviculture Programme managed by Forest Growers Research.

Trainees who put on the virtual reality headset find themselves in the middle of a computer-generated forest model reflecting a realistic production forest in New Zealand. The images are based on physics-based models of Pinus radiata and multiplied so there are 50,000 trees. Randomisation formulas are applied to make each tree unique.

Development of a beta version of the tool began last year and the team aims to have a prototype by mid-year.



Scion portfolio leader Grant Evans says the tool makes training logistically easier and faster given travel to sites is not needed, safer and also means losses are not suffered as mistakes made in virtual reality don’t affect real forestry blocks. “VR has been around a long time in entertainment. Now people have started to see the real applications.”

Options for the tool are limitless. “Levels” can be created to make choosing which tree to thin easier or harder. Variables can be changed to adjust stocking rate, tree species and age. There are decades of tree bioinformatics available to draw on and more than 70 potential variables.

Scion forest management scientist Lania Holt, who is involved in thinning research for the Precision Silviculture Programme, says a tool like this could improve thinning processes and health and safety. It could also allow training in a broader range of scenarios than the conditions in accessible forests on any given day.

Precision Silviculture Programme manager Claire Stewart says the tool fits with the programme’s aims of digitising, mechanising and automating forestry tasks to make them more efficient and safer. She says the VR tool could also help trainees initially understand complexities without the immense pressure of a forest environment and help them understand the economic value in forests.

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Source: Scion



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World's largest timber roofed stadium – in Tasmania

New concept images of the proposed stadium at Hobart's Macquarie Point have been released — with the government saying when completed, the multipurpose arena "will be the largest timber, roofed stadium in the world". The government says the design has been "informed" by the precinct's maritime heritage and history as a rail yard.

What's next? A formal process which will allow private backers to express interest in partnering with the government on the project is likely to commence in the coming weeks. Hobart's proposed Macquarie Point stadium could be "the world's largest timber-roofed stadium" and potentially host the world's first indoor Test cricket match, the Tasmanian government says.

New concept designs for the 23,000-seat roofed stadium — which will house the state's newly minted AFL club the Tasmania Devils — reveal a compact seating bowl design, "woven-style" timber facade and a fixed dome translucent roof.

Timber a feature of roof, exterior

Tasmanian timber will feature prominently on the facade of the stadium, with designers taking inspiration from the former railway roundhouse structure, which was part of the old Hobart Rail Yard from 1915 until the 1980s. The "woven-style" design, conceptualised by First Nations artists, is planned to be incorporated into the facade, which will flow into the planned "Aboriginal and culturally informed" zone. The stadium will be 51 metres tall at its highest point.

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The concept designs are available at www.macpoint.com/stadium

For further coverage on the announcement, click here

Source: ABC

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Canadian developed Hydrogen-diesel system secured

HVMS, a leading provider in the decarbonisation of transportation, has announced the establishment of its partnership with Canadian company Diesel Tech Industries, to establish installation facilities for the Guardian Hydrogen Diesel System. This initiative marks a significant step towards advancing sustainable solutions within the region's heavy transportation sector.

"The establishment of HVMS's installation facilities for the Guardian Hydrogen Diesel System in New Zealand marks a pivotal moment in advancing sustainable transportation solutions. Together, we are setting new standards in emissions reduction and environmental stewardship," commented Rebecca Goldsack, COO of Diesel Tech Industries.

The Guardian Hydrogen Diesel System, developed by Diesel Tech Industries, is internationally recognised, and represents a cutting-edge dual-fuel technology designed to lower emissions and enhance operational efficiency in diesel-powered vehicles. HVMS will leverage its expertise in procurement, installation, and compliance to support New Zealand companies in transitioning to cleaner transport solutions through vehicle conversions and educational initiatives.

“Having the industry-leading Guardian Hydrogen Diesel System commercially available to our New Zealand and Australian customers is a game changer, allowing fleet owners to continue to utilise their existing diesel-powered assets whilst making solid steps towards decarbonisation. 100% hydrogen OEM vehicles are still some years away with respect to suitable supply and affordability, making the Guardian Hydrogen Diesel System a viable and prudent dual fuel product for today, helping cut diesel use and reduce emissions,” stated Mark Irving, BDM of HVMS.

“The concept of dual fuel appears to be resonating the best with heavy fleet owners. With hydrogen now commercially available since May 2024, the timely emergence of the DTI hybrid solution throughout New Zealand will be a gamechanger, offering affordable solutions for companies as they continue their important decarbonisation journey,” commented Scotty Hale, HVMS Director.

About HVMS

HVMS, headquartered in Bay of Plenty, New Zealand, is committed to supporting companies in decarbonising their fleets through innovative solutions and extensive industry experience. As a subsidiary of East Coast Heavy Diesel Limited (ECHD), HVMS offers a wide range of services including procurement, installation, compliance, and training to facilitate the transition to sustainable transport technologies.

About Diesel Tech Industries

Diesel Tech Industries, based in Edmonton, Alberta, is a pioneer in transportation technology, specialising in innovative solutions for the trucking industry. The Guardian Hydrogen Diesel System represents their latest advancement, aimed at reducing emissions and enhancing operational efficiency in diesel vehicles through dual-fuel hydrogen blending technology. For more information about DTI and its initiatives, visit www.dtiguardian.com

Source: DTI / HVMS

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€100 m investment in wood-based EV batteries

Stora Enso Oyj is preparing to invest about €100 million in a pioneering project to use wood in electric vehicle batteries and offer an alternative to components currently made in China, according to its chief executive officer. The funds would be used for a “demonstration-scale unit,” which is significantly bigger than the current pilot facility, Hans Sohlstrom said in an interview in Helsinki where Stora is based. No final investment decision has been made yet, he said.

The Finnish forestry company is developing a sustainable material that can be used as anodes in batteries, helping Europe reduce its reliance on non-renewable, mined or synthetically produced Chinese imports. The ingredient, lignin, makes up as much as a third of a tree and is one of the biggest renewable sources of carbon, Stora says.

However, the company, which generates its revenue from pulp, packaging materials, and wood products, is still “several years” away from mass-scale production after starting in 2021, according to the CEO. After the demonstration facility, Stora plans to build a commercial-scale unit, which would require “a big capital investment of hundreds of millions” of euros, he said, adding Stora will need to invest about two euros to create one euro of revenue.

“We also need to see whether we do it ourselves — a big investment into the commercial-scale unit — or whether we do it as a joint venture with, for instance, a battery manufacturer,” said Sohlstrom, who was appointed as CEO in September.

Stora said earlier this month it has partnered with Swedish sodium-ion battery developer Altris AB to drive the commercialization of sustainable batteries using a hard carbon derived from lignin, which is a by-product of pulp manufacturing. In 2022, it announced a collaboration with Swedish battery maker Northvolt AB.

Further coverage on the technology, click here

Source: Bloomberg, Stora Enso


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Australian and NZ export log price index down

IndustryEdge’s Australian and New Zealand Export Log Price Index was down 11.5% in April 2024, measured in US dollars. The weighted average export price was USDFob80.66/m3 for the month. 

The weighted average New Zealand price decreased 12.2%, while the Australian equivalent fell by 9.6%. Australia’s export volumes increased 3% compared with the prior month, while the New Zealand volume declined by 22.6% compared with the last month.

The combined index value for April trade was at 80.6648 points, meaning the average log price was around 19.3% lower than the index starting point in January 2017.

The index combines and weights softwood log exports from Australia and New Zealand. It provides a consistent view of the price being achieved for the region’s logs, for the combined trade from Australia and New Zealand, as well as for each of Australia and New Zealand separately.



IndustryEdge’s Australian and New Zealand Log Price Index: Jan ’21 – Apr ’24 (INDEX)


Source: IndustryEdge


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Forestry slump could hurt biofuel supply in future

New data is showing a sharp decline in new forest plantings in New Zealand, and there are warnings this could cut the country short of a biofuel source in years to come. A Ministry for Primary Industries survey shows forest companies intend planting 51,800 hectares this winter, a 24% drop on 2023.

Last year's plantings were well below the area forestry companies indicated they would be planting in 2023, when asked as part of the 2022 survey.

Marcus Musson, a director of forest management company Forest 360, said this was concerning because New Zealand needed a long-term stable wood supply. "What we have on the books over the next couple of years is definitely dropping, and it's pretty hard. There's been a lot of foreign investment establishing new forests, but that's waning."

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Source: RNZ





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... and one to end the week on… the master and the student

A martial arts master was deep in meditation when his young pupil stormed into the room frustrated with another loss.

“Master, why does my ability not improve? I’m always defeated.” he sighed. And the master, pensive and forever patient, answers: “My dear pupil, have you seen the gulls flying by the setting sun, and their wings seeming like flames?”

The student, ready to gain more knowledge responded, “Yes, my master, I have.” The master continued, “And a waterfall, spilling strongly over the stones without taking anything out of its proper place?”

“Yes, my master, I have witnessed it.” the student replied. “And the moon… when it touches the calm water to reflect all its enormous beauty?” asked the master.

The student nodded, “Yes, my master, I have also seen this marvellous phenomenon.”

The master sighed, “That is the problem. You keep watching all this rubbish instead of training.”




And on that note, enjoy your weekend. Cheers.

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


This week's extended issue, along with back issues, can be viewed at www.fridayoffcuts.com

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