Wood Energy Surpasses Oil Use in Sweden

Biomass now generates 32% of all energy in Sweden, causing increased competition for pulpwood, reports the Wood Resource Quarterly. Biomass has now surpassed oil to become the number one source for energy generation in Sweden. The increased competition for logs and wood chips between the pulp industry and energy sector has pushed wood fibre prices to new highs, according to the Wood Resource Quarterly.

Sweden is one of the countries in the world that has come furthest on the road towards fossil fuel independence. Last year, the Swedish government approved a plan to have renewable energy reach 50% of the total energy consumed in the country by the year 2020, reports the Wood Resource Quarterly. In addition, the country aims to be totally independent of imported fossil fuels for the transportation sector by 2030. Although this might seem like an improbable ambition considering today’s high dependency on gasoline and diesel, the government’s push towards a society without fossil fuels has created much research and many investments in the renewable energy sector over the past few years. As an incentive to use more environmentally friendly vehicles in Sweden, there are currently no taxes on ethanol while there are high energy and carbon dioxide taxes (approximately $0.70/liter) on conventional gasoline and diesel.

There have also been tax incentives for purchasing low-carbon dioxide emission vehicles since 2006. The total energy consumption generated from biomass in Sweden grew from 88 terra watt hours (TWh) to 115 TWh between 2000 and 2009, while the usage of oil-based products (all imported) declined from 142 TWh to 112 TWh during the same period, according to the Swedish Bioenergy Association Svebio.

Biomass surpassed oil to become the number one source for energy generation in 2009, accounting for 32% of the total energy consumption in the country. It is projected that biomass consumption will continue to increase by another 10% in 2011. Energy companies in need of additional biomass are increasingly using roundwood that also could be used by pulp mills. With the rapid expansion of energy capacity generated from biomass, it is clear that the wood fibre market in Sweden has forever been transformed to a more competitive market place with two fibre-consuming sectors having quite different expansion plans for the future. Sawmill residues and small-diameter logs can now be used either to manufacture pulp or to generate energy.

Historically, the pulp and paper market has been the major driver of wood fibre prices, but with the entry of the energy sector, there are now different market forces in place. As a result, prices for smaller logs have been driven to new highs the past few years, and not likely to go back down to the levels seen during the period 1997-2006. In local currency (Swedish krona), pulplog prices in the 1Q/2010 were almost 20 percent higher than five years ago and 36 percent higher than ten years ago, according to the Wood Resource Quarterly.
(Source: Wood Resources International LLC)

Recovering Wood for Biomass a Challenge

We all know there is plenty of wood left in the forest after harvesting but how to recover it profitably has been an issue that many loggers have struggled with. Shane Hooker has found a way to make it work for him, as featured in the June issue of NZ Logger magazine. This issue also includes the quarterly NZ Timber section, which focuses on the wood processing sector and profiles a revolutionary method for constructing multi-storey buildings using a timber frame – it’s a New Zealand idea that is leading the world.

For all this and more head to the NZ Logger Website.

Plans for NZ Forestry Certification

Development of the National Standard for Certification of Plantation Forest Management in New Zealand in accordance with Forest Stewardship Council (FSC) has recommenced. FSC is an independent, non-governmental, not-for-profit organization established to promote the responsible management of the world’s forests and is supported by leading environmental groups such as Greenpeace and WWF. To date FCS has certified over 134 million hectares of forest in 80 countries.

Spokesperson for the Standards Development Group (SDG), Colin Maunder, announced that “the SDG decided to re-commence with the second Draft that has been at an impasse since November 2003 and this has been accepted by FSC International”. The SDG is comprised of 2 representatives from four Chambers (Economic, Environment, Maori and Social), except that due to its diversity the Social Chamber has 3 representatives (with the voting rights of 2). Approximately 1 million of the 1.8 million hectares of NZ forest plantations are certified to FSC. These plantations include significant areas of natural vegetation, native wildlife and are enjoyed by large numbers of people for recreation. The standards consider economic management, long term employment and sets rules for environmental management and recreational use.

Mr Maunder said “the outstanding issues from 2003 are : areas to be set aside as reserves, pesticide use, small low intensity forests, rules regarding conversion of natural vegetation and conversion of plantations to other uses.” “5 working groups have been formed to establish the rules for these areas in conjunction with forest managers”. Mr Maunder further explained the process “The SDG plans to finalise a draft for forest testing in August. After which the Forest Tested Draft will be available for public comment and submission through a Consultative Forum that will be facilitated primarily through e-mail exchange.”

“Participation in the Consultative Forum can be done by registering with the relevant chamber representatives or Colin Maunder.”

Government to Fund Harvest Research

The latest round of Primary Growth Partnership (PGP) funding in New Zealand has been spread across forestry, merino wool and arable farming organisations. NZ's Agriculture and Forestry Minister David Carter said NZ$20 million would be split between the New Zealand Forest Owners Association, the Foundation for Arable Research and the New Zealand Merino Company (NZMC).

At slightly over NZ$15m, NZMC will get the lion's share of the funding, and with their own funding input included, the three government-industry partnerships will be worth over NZ$45m. For the forestry industry, Government will contribute up to NZ$3.27 million over seven years, to be matched by the forest industry in a NZ$6.5 million harvesting research programme that will produce estimated total net benefits of over NZ$100 million by 2016.

Future Forests Research Ltd, the industry-driven company that promotes research partnerships between forest companies and Government, will manage the research on behalf of the Forest Owners Association.

"We see multiple benefits from this programme," said FFR Chief Executive Russell Dale. "It will enable us to build on existing work by developing new high-tech harvesting machines to increase productivity and reduce the cost of extracting trees on steep slopes, as well as reducing hazards to workers."

Steep country forests already contribute more than 40 per cent of New Zealand's log harvest, and this is forecast to rise to over 60 per cent in coming years. Present harvesting methods on this terrain, such as labour-intensive cable logging, have changed little in 50 years and are costly and hazardous to workers on the ground, who can be working out of sight of operators of cable hauling equipment.

New methods of operation with special-purpose machines would remove workers from potential hazard areas. FFR began a modest research programme in this area in January 2008 with a small, totally industry-funded budget. New Zealand's competitors are very active in applied research to reduce harvesting costs, yet New Zealand has done no research in this area over the past 10 years.

International Wood Markets Will Favour Plantations

A perfect storm may be brewing for the forest sector says Forest Owners chief executive David Rhodes. Returning this week from a world forest and wood products conference in Tokyo he said the balance of international supply and demand appeared to be changing in favour of the owners of forest plantations. “On the supply side, huge areas of natural forest across the globe are being protected in reserves and national parks. Also, the international pressure on illegal loggers is finally starting to tell – products from illegally logged and uncertified forests are becoming harder to sell,” Mr Rhodes said. “Meanwhile there is growing consumer demand for products that are renewable and recyclable. Also the ambitiuous bioenergy targets of many countries are driving demand for wood pellets, black liquor and other forest-based fuels.”

He says burgeoning populations and a growing middleclass, particularly in China, India and elsewhere in Asia, are driving a rapid growth in demand for food and fibre from a diminishing area of productive land. “World population stands at 6.8 billion and is growing by 200,000 a day, with projections that it will peak at 9 billion by 2050. In 1990 there was a ratio of 7.9 hectares of land per global inhabitant, in 2050 it will be only 1.45 hectares."

“Forests and the benefits that flow from them are going to be extremely important in such a world. Also, since most of this growth will be happening in New Zealand’s backyard and in our trading markets, it would appear that forest owners have a very promising future.” Running in parallel with the likely increased demand for forest products is growing recognition of the important role forests play in mitigating climate change. “The forest and wood processing industries provide solutions which are environmentally friendly, renewable and which ensure sustainable growth, all of which contribute to carbon emission reduction.”

National Australian Forest Inventory Trend Worrying

Australia’s Plantations 2010 Inventory Update, released by the Bureau of Rural Sciences (BRS) last week, confirms the worrying trend of a declining rate of expansion in Australia’s plantation resource. The declining rate of expansion is a concern because Australia’s plantation products and paper industry needs an expanding plantation resource and increasing woodflows to support internationally competitive, world-scale manufacturing facilities which underpin economic activity and employment in a number of regions around the country. Based on this data A3P will continue to engage with Governments and stakeholders at all levels about the urgent and ongoing need for investment in expanding Australia’s plantation resource and replanting following harvest. Key points include:
-The total area of Australia’s plantation estate increased by 2.4% in 2009, from 1.97 million hectares to 2.02 million hectares
-A total of 49,658 hectares of new plantations in 2009, 31 percent less than 2008. The new area comprised 43,231 hectares of hardwoods and 6,247 hectares of softwoods
-The total plantation area has increased by around 51 percent in the last 10 years. Hardwood plantations increased by more than 150 percent while softwood plantations increased by 8 percent
-The rate of increase in new plantations has decreased since 2005

BRS is funded by the Government and collects the required plantation area data from the major plantation industry operators each year. Collection of data such as the Australia’s Plantations 2010 Inventory Update is important to industry, government and other stakeholders. It assists commercial players to make business decisions, and provides Government and industry with a sound basis for policy decisions and a means for monitoring their impacts. A3P will continue to encourage the Government to adequately resource basic data collection, collation and publication.

Gunns Chairman Steps Down

Late last week GUNNS chairman John Gay agreed to sever his ties with the company and related entities effect immediately. The company would not say why Mr Gay was quitting immediately. Mr Gay joined Gunns in 1973, was appointed general manager in 1982, managing director in 1986 and chairman in 2002.

Gunns shares have collapsed in 2010, dropping recently to 27.5c, down from a recent high of $1 in February. In 2007 the stock traded at $3. The slump since has mirrored a savage decline in the fortunes of Australia's other listed forestry companies. Analysts see the move by Gunns as a bid to stem its plunging share price and get its corporate strategy back on track.

Chris Newman, a Gunns director since 2001, will replace Mr Gay as chairman of Gunns and Southern Star. Mr Newman is also a director of Austereo, Webjet and Worldwide Entertainment. David Simmons, a director of Gunns since last year, will be appointed deputy chairman. He was managing director of Hills Industries for 16 years.

Former BC Sawmiller Beats All Odds

Oscar Inglin is a statistical anomaly.

Not only did he celebrate his 105th birthday on Tuesday, a feat that earned him a birthday card from Queen Elizabeth, he still has all his fingers despite 35 years working in a lumber mill.

Born in Switzerland in 1905, he was one of three boys. His father was blinded in an industrial accident and his mother was left with the challenge of running the house. She managed with an iron fist, which eventually drove Inglin away. Far away. He arrived in Canada in the early 1920s, landing in Saskatoon.

There, he married and began a life that would see him work as a nurse, an Army medic and a miller, taking him west to Vancouver and eventually Port Alberni. To this day, Inglin remembers it raining so hard when he arrived that it sloshed over the tops of his wife's calf-high boots. He retired in 1970. "It's a heck of a long time to be retired," he said. But he's never at a loss of things to do. He can spend hours thinking of the past and dreaming. His wife died in 1960 and Inglin spent years travelling. He went to South Africa at 90.

These days, Inglin lives in a retirement home and says he feels like he's not a day over 80 and his body works perfectly.
(Source: Vancouver Sun)

Buy and Sell

finally... Sarcasm - Australian-Style

The following questions were posted on an Australian Tourism Website and the answers are the actual responses by the website officials, who obviously have a great sense of humour

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Q: Does it ever get windy in Australia ? I have never seen it rain on TV, how do the plants grow? ( UK ).

A: We import all plants fully grown and then just sit around watching them die.

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Q: Will I be able to see kangaroos in the street? ( USA )

A: Depends how much you've been drinking.

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Q: I want to walk from Perth to Sydney - can I follow the railroad tracks? ( Sweden )

A: Sure, it's only three thousand miles, take lots of water.

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Q: Are there any ATMs (cash machines) in Australia ? Can you send me a list of them in Brisbane , Cairns ,Townsville and HerveyBay ? ( UK )

A: What did your last slave die of?

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Q: Can you give me some information about hippo racing in Australia ? ( USA )

A: A-fri-ca is the big triangle shaped continent south of Europe .
Aus-tra-lia is that big island in the middle of the Pacific which does not
.... oh forget it. Sure, the hippo racing is every Tuesday night in Kings Cross. Come naked.

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Q: Which direction is North in Australia ? ( USA )

A: Face south and then turn 180 degrees. Contact us when you get here and we'll send the rest of the directions.

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Q: Can I bring cutlery into Australia ? ( UK )

A: Why? Just use your fingers like we do.

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Q: Can you send me the Vienna Boys' Choir schedule? ( USA )

A: Aus-tri-a is that quaint little country bordering Ger-man-y, which is .
oh forget it. Sure, the Vienna Boys Choir plays every Tuesday night in Kings Cross, straight after the hippo races. Come naked.

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Q: Can I wear high heels in Australia ? ( UK )

A: You are a British politician, right?

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Q: Are there supermarkets in Sydney and is milk available all year round? ( Germany )

A: No, we are a peaceful civilization of vegan hunter/gatherers.
Milk is illegal.

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Q: Please send a list of all doctors in Australia who can dispense rattlesnake serum. ( USA )

A: Rattlesnakes live in A-meri-ca which is where YOU come from.
All Australian snakes are perfectly harmless, can be safely handled and make good pets.

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Q: I have a question about a famous animal in Australia , but I forget its name. It's a kind of bear and lives in trees. ( USA )

A: It's called a Drop Bear. They are so called because they drop out of Gum trees and eat the brains of anyone walking underneath them.
You can scare them off by spraying yourself with human urine before you go out walking.

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Q: I have developed a new product that is the fountain of youth. Can you tell me where I can sell it in Australia ? ( USA )

A: Anywhere significant numbers of Americans gather.

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Q: Can you tell me the regions in Tasmania where the female population is smaller than the male population? ( Italy )

A: Yes, gay night clubs.

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Q: Do you celebrate Christmas in Australia ? ( France )

A: Only at Christmas.

And on that note, enjoy the rest of your week. Cheers.

John Stulen