Seven Southern Pine sawmills – all members of the Southern Forest Products Association (SFPA) – are recent recipients of the 2019 Sawmill Safety Awards.

SFPA lumber manufacturer members are considered for the award based on information submitted regarding occupational injuries and illnesses. Safety performance is judged by how each mill’s safety record stacks up against facilities with comparable lumber output throughout the year. The results for 2019 included reports from 52 mills that recorded nearly 18 million employee hours.

Division I includes sawmills that produce 50 million board feet or less; Division II covers facilities that produce 51 to 150 million board feet; and Division III includes mills that produce more than 150 million board feet annually.

The seven sawmills being honored for outstanding safety records during 2019 are:

Division 1 – less than 50 mmbf

• Ray White Lumber Company – Sparkman, Arkansas
• Weyerhaeuser Company – Zwolle, Louisiana

Division II – 51-150 mmbf

• West Fraser – Opelika, Alabama
• West Fraser – Whitehouse, Florida

Division III – greater than 150 mmbf

• Weyerhaeuser Company – Philadelphia, Mississippi
• Weyerhaeuser Company – Dodson, Louisiana
• Weyerhaeuser Company – Millport, Alabama

 “Safety is important in all business, and the sawmill business is no different,” said SFPA Executive Director Tami Kessler. “We are proud that these SFPA member mills had zero recordable incidences in 2019 and commend them for striving to make their workplace a safe environment,” she added.

Following a comprehensive review of operations and discussions with National Grid, Ofgem and the UK Government, the Board of Drax has determined to end commercial coal generation at Drax Power Station in 2021 – ahead of the UK’s 2025 deadline.

Commercial coal generation is expected to end in March 2021, with formal closure of the coal units in September 2022 at the end of existing Capacity Market obligations.

Will Gardiner, Drax Group CEO, said:
“Ending the use of coal at Drax is a landmark in our continued efforts to transform the business and become a world-leading carbon negative company by 2030. Drax’s move away from coal began some years ago and I’m proud to say we’re going to finish the job well ahead of the Government’s 2025 deadline.

“By using sustainable biomass we have not only continued generating the secure power millions of homes and businesses rely on, we have also played a significant role in enabling the UK’s power system to decarbonise faster than any other in the world.

“Having pioneered ground-breaking biomass technology, we’re now planning to go further by using bioenergy with carbon capture and storage (BECCS) to achieve our ambition of being carbon negative by 2030, making an even greater contribution to global efforts to tackle the climate crisis.

“Stopping using coal is the right decision for our business, our communities and the environment, but it will have an impact on some of our employees, which will be difficult for them and their families.

“In making the decision to stop using coal and to decarbonise the economy, it’s vital that the impact on people across the North is recognised and steps are taken to ensure that people have the skills needed for the new jobs of the future.”

Drax will shortly commence a consultation process with employees and trade unions with a view to ending coal operations. Under these proposals, commercial generation from coal will end in March 2021 but the two coal units will remain available to meet Capacity Market obligations until September 2022.

The closure of the two coal units is expected to involve one-off closure costs in the region of £25-35 million in the period to closure and to result in a reduction in operating costs at Drax Power Station of £25-35 million per year once complete. Drax also expects a reduction in jobs of between 200 and 230 from April 2021.

The carrying value of the fixed assets affected by closure was £240 million, in addition to £103 million of inventory at 31 December 2019, which Drax intends to use in the period up to 31 March 2021. The Group expects to treat all closure costs and any asset obsolescence charges as exceptional items in the Group’s financial statements. A further update on these items will be provided in the Group’s interim financial statements for the first half of 2020.

As part of the proposed coal closure programme the Group is implementing a broader review of operations at Drax Power Station. This review aims to support a safe, efficient and lower cost operating model which, alongside a reduction in biomass cost, positions Drax for long-term biomass generation following the end of the current renewable support mechanisms in March 2027.

While previously being an integral part of the Drax Power Station site and offering flexibility to the Group’s trading and operational performance, the long-term economics of coal generation remain challenging and in 2019 represented only three percent of the Group’s electricity production. In January 2020, Drax did not take a Capacity Market agreement for the period beyond September 2022 given the low clearing price.

Enquiries
Drax Investor Relations:
Mark Strafford
+44 (0) 7730 763 949

Network Rail, Lynemouth Power Limited (LPL), Port of Tyne and GBRF are working together to keep the lights on at 450,000 homes across the United Kingdom.

The railway and its key workers are keeping vital freight services moving during the Covid-19 pandemic. Freight services keep supermarket shelves stocked and key medical equipment moving, as well as transporting biomass to generate energy and keep the nation powered up.

Every week, over 30,000 tonnes of sustainably-sourced wood pellets are transported from the Port of Tyne to Lynemouth Power Station via the railway. The biomass travels a short way up the East Coast Main Line from Newcastle, before using the Ashington, Blyth and Tyne lines and heading onto the facility.

The railway is absolutely vital in getting the biomass to where it needs to be, as freight services are Lynemouth Power’s primary means of bulk supply. Network Rail is working round the clock to make sure that the railway can continue running reliably on this heavily used route, which sees two GBRF sets, each carrying around 1700 tonnes, running six to seven days per week whenever necessary.

Kevin Newman, Senior Freight Manager, for Network Rail, said: “The railway continues to play a key role during the Covid-19 crisis by keeping vital freight services moving, including deliveries of biomass enabling power to be generated for homes and businesses across the country.

“We’ve been able to meet demand thanks to the dedication of Network Rail teams who are working round the clock, as well as the close working partnership we have with Lynemouth Power, Port of Tyne and GBRF.”

Carl Hopper, Managing Director of Lynemouth Power Limited, commented: “Collectively, all of our delivery partners play a significant part in the overall energy production process. Every one of them ensures that Lynemouth Power Station, part of a critical industry, can operate efficiently and with a ‘business as usual’ approach wherever possible despite the challenges the country now faces as a whole.

“Network Rail is a key part of our fuel logistics supply chain and provides an essential service transporting biomass wood pellets from the Port of Tyne up to Lynemouth Power Station. We will continue to work closely and collaboratively with them to ensure that we keep powering the country, and acknowledge the dedication and effort being made by their team at this time.”

Matt Beeton, Port of Tyne Chief Executive, said: “The Port of Tyne plays a crucial role in supporting supply chains across the North East, and Britain as a whole.

“By working in partnership with Network Rail, Lynemouth Power and GBRF, we’re helping to keep Britain going during these unprecedented times.”

John Smith, GB Railfreight Managing Director said: “GB Railfreight is delighted to be playing its part in supporting the UK’s response to the ongoing pandemic by helping to keep essential services running throughout the country. For example, we are transporting and delivering vital supplies of sustainable biomass to and from Lynemouth Power Station to the Port of Tyne, by doing so, we are playing our part to keep the lights on during this crisis.

“We will stop at nothing to ensure our locos continue to ship vital supplies right across the country and will be redoubling our efforts to ensure we keep the country going at this time of emergency.”

International technology group ANDRITZ has received an order from Klabin for a complete biomass gasification plant and a new biomass handling line for their Ortigueira mill in Brazil.

The scope of supply includes a 51 MW gasification plant, a belt dryer, a multi-fuel lime kiln burner and biomass handling equipment with auxiliaries. By replacing 100% of the heavy fuel oil currently burned in one of the mill’s lime kilns, the ANDRITZ gasification plant will significantly reduce the mill’s carbon footprint. The current lime kiln production will remain at 650 tons of reburnt lime per day.

ANDRITZ was one of the main suppliers of major process technologies and equipment areas to the Puma II project, and also supplied major technologies and equipment to Klabin’s Puma I project, which was started up successfully in 2016.

In the gasification sector, ANDRITZ offers advanced and state-of-the-art technologies, combining high efficiency with quality gas output for the replacement of fossil fuels.

The U.S. Industrial Pellet Association on May 11 welcomed an order from the European Court of Justice dismissing a case against wood biomass. The court ruled the applicants, a group of six individuals and NGOs, lacked standing to challenge the EU’s inclusion of wood biomass in the bloc’s Renewable Energy Directive.

“We welcome the court’s ruling, which removes unnecessary uncertainty over the future of renewable energy in Europe,” said Seth Ginther, USIPA executive director. “Although this was a procedural ruling this was the right overall result, as the arguments put forward in the case had no value. The European institutions carried out an open consultation to gather scientific and environmental advice and considered these during the legislative process. The result was a revised Renewable Energy Directive that set out rigorous standards for the inclusion of sustainable biomass in the European energy mix.”

Including the UN IPCC’s latest Special Report on Climate Change and Land, the body of academic research, studies and papers documenting the climate and forest benefits of wood biomass continues to grow.

Wood biomass, derived from the forest products industry, is the EU’s largest single source of renewable energy, and is a key technology for achieving the bloc’s climate goals set out in the Green Deal.It enables European power generators to repurpose existing coal-based infrastructure with a renewable alternative that reduces the carbon intensity of electricity generation by up to 85 percent on a life-cycle basis.

Last year the U.S. exported nearly 6 million metric tons of biomass to the EU, primarily from its Southeastern states. This region has been the center of America’s forest products industry since the early 20th century, and is one of the largest and most sustainably-managed wood baskets in the world.

According to the USDA, wood volume in this region has increased by 21 percent since 2000, and southeastern landowners are currently growing 43 percent more wood than they remove every year.  Independent analysis shows this trend is also consistent within the local sourcing areas surrounding multiple biomass production plants.

As noted by forest economists, forest stocks have been increasing in the US Southeast because markets for wood products, like biomass, provide financial incentives for private landowners to keep investing in the continual cycle of thinning, harvesting and replanting trees.

Source –  U.S. Industrial Pellet Association

Large scale production and commercialisation of hydrogen fuel cells has been given a boost by a joint venture between two of the world’s biggest commercial vehicle manufacturers – Daimler Truck AG and Volvo Group have announced they have signed a preliminary non-binding agreement to establish the new joint venture.

The intention is to develop, produce and commercialise fuel cell systems for heavy-duty vehicle applications and other use cases according to a media release that confirmed Daimler will consolidate all its current fuel cell activities in the joint venture. Volvo Group will acquire 50 per cent in the joint venture for the sum estimated to be worth $1.35 billion on a cash and debt free basis.

As energy is emitted from batteries or by converting hydrogen on board into electricity, CO2- neutral transport can be accomplished through electric drive trains said Chairman of the Board of Management Daimler Truck AG Martin Daum.

“For trucks to cope with heavy loads and long distances, fuel cells are one important answer and a technology where Daimler has built up significant expertise through its Mercedes-Benz fuel cell unit over the last two decades,” he said.

“This joint initiative with the Volvo Group is a milestone in bringing fuel cell powered trucks and buses onto our roads,” said Daum.

Using hydrogen as a carrier of green electricity to power electric trucks in long-haul operations is one important part of the puzzle according to Volvo Group President and CEO Martin Lundstedt. “Combining the Volvo Group and Daimler’s experience in this area to accelerate the rate of development is good both for our customers and for society as a whole,” he said.

“By forming this joint venture, we are clearly showing that we believe in hydrogen fuel cells for commercial vehicles. But for this vision to become reality, other companies and institutions also need to support and contribute to this development, not least in order to establish the fuel infrastructure needed,” said Lundstedt. The joint venture will operate as an independent and autonomous entity, with Daimler Truck AG and the Volvo Group continuing to be competitors in all other areas of business.

Tasmanian forest leader wins major management contract – Tasmanian- owned and operated company SFM has announced it has been appointed by New Forests to manage the timber plantation assets purchased from Norske Skog after a competitive tender process.

Now to be called Lenah Estate Pty Limited, the Tasmanian plantations were bought by Australian-based international forestry investor New Forests, on behalf of its Australia New Zealand Forest Fund 3 (ANZFF3), from Norske Skog in February this year.

“We are delighted to win this contract to manage such an extensive and quality resource that supports the Boyer mill, the Derwent Valley and wider Southern Tasmanian community and local farmers,” SFM Managing Director Andrew Morgan said today.

“SFM has a strong track record in plantation management, having multiple management contracts interstate, so to be successful in our home state is very gratifying,” Mr Morgan said.

Managing Director Andrew Morgan (left) with SFM Director David Wise .

The Lenah Estate land area under management by SFM is approximately 27,150 hectares across South Central Tasmania, predominantly the Derwent Valley. It includes 50 joint venture plantation projects with private landowners and Sustainable Timber Tasmania (STT).18,000 hectares or 97.5% of the 18,500 plantable hectares is radiata pine softwood plantations. Around 350,000-400,000 tonnes will be harvested annually, with the majority going to the Norske Boyer mill. Lenah Estate will replant 500-1000 hectares per year.

SFM will open an office in New Norfolk employing a core team of 8 full-time employees, supported by the broader SFM business with more than 20 FTE employees and over 100 FTE sub-contracted truck drivers, plant operators and support services.

“In a competitive field of property manager proponents, New Forests considered SFM’s proposal attractive for its commitment to local staffing, its technical capacity and its local knowledge”, Matt Crapp, Director Operations, said.

“New Forests looks forward to working with SFM on the long-term management of the Lenah Estate, including its ongoing supply to the Boyer Mill and our shared intentions that the Estate maintains third-party forest management certification,” Mr Crapp said.

“New Forests aspire to build on the positive relationship that Norske Skog has had with its contractors, joint venture landowners and the general community. We see opportunities for continued investment in this significant plantation asset to enhance its long-term value and have asked SFM to consult widely with stakeholders to develop and refine these plans.”

SFM currently manages two plantation projects for New Forests, consisting of both hardwood and softwood species across three States – WA, SA and Victoria.

Lenah Estate will be a significant addition to the SFM portfolio, which includes harvesting, haulage and export of more than 500,000 tonnes of plantation timber per annum. Hydrowood, a world first operation salvaging Tasmanian specialty timbers standing underwater for decades is a wholly-owned subsidiary of SFM.

About SFM – SFM Environmental Solutions Pty Ltd is a professional forestry business that provides forest management and consultancy services to a range of clients in Australia and New Zealand. SFM provides certified forest management solutions under the Forest Stewardship Council and the PEFC/Responsible Wood certification systems so that its clients and the community can be assured that SFM provides a quality management service in line with world’s best practice.

Through its contractor networks and strong relationships with government agencies, forest companies and processors, SFM’s harvesting and marketing service offers an unprecedented level of efficiency resulting in maximum results for the tree grower.

Hydrowood, a wholly-owned subsidiary of SFM, salvages Tasmanian specialty timbers standing underwater for decades in man-made hydro-lakes and creates timber products for bespoke joinery, furniture and high-end architectural applications.

SFM prides itself on employing quality staff and maintaining high standards of operating systems to ensure the viability of the company and the natural resources it manages. SFM is headquartered in Hobart, Tasmania and has regional offices in Launceston (TAS), Mount Gambier (SA) and Tauranga (NZ).

A new log registration scheme and practice standards will bring us one step closer to achieving ‘value over volume’ in our forestry sector, Forestry Minister Shane Jones says.

New legislation introduced as part of Budget 2020 will require forestry advisers, log traders and exporters to register and work to nationally agreed practice standards that will strengthen the integrity of New Zealand’s forestry supply chain.

The new legislation follows a smaller package of measures announced late last year as part of the Government’s ambition to see a thriving forestry sector that benefits New Zealand and New Zealanders first and foremost.

“The COVID-19 crisis showed us how an overreliance on log exports to a small number of markets makes our forestry industry less resilient and more susceptible to global forces,” Shane Jones says.

“An enhanced domestic wood processing sector will play an important part of the recovery for our regional economies, helping create new export products, new jobs for Kiwis and a renewed sense of ownership of our forests.

“Industry consultation identified that improved professional standards, market assurance measures and better information resources were critical areas to enable a more integrated system. The quality of advice from forestry advisers and interactions with log traders is critical to the financial returns forest growers receive, and to the operation of the broader log market.

“The new regulatory system will provide some critical foundations to help the industry navigate what is anticipated to be a more volatile and uncertain trading environment during the COVID-19 recovery period.

“Having a more transparent market will better connect owners of land and owners of trees, and particularly for first-time entrants to the market to timber processors and marketers of forest resources to domestic and overseas customers.

“New Zealand’s log supply market is in transition, with smaller owners playing an increasingly important role in the annual harvest. Knowing that only registered professionals can provide forestry advice is expected to give growers greater confidence in the recommendations they receive on the management and valuation of their investment, and the financial returns achieved through the sales and purchase process,” Shane Jones says.

Forestry advisers will need to demonstrate they have the relevant skills, experience, and qualifications to advise growers, and undertake training and professional development in their specialist areas.

Log trading entities will need to pass a fit and proper person test, operate in accordance with industry standards, and meet record keeping and reporting requirements.

The Bill also allows for an arbitration and compliance system to support accountability.

“This will help support a continuous, predictable and long-term supply of timber for domestic processing and export and result in greater confidence in business transactions, both in New Zealand and internationally,” Shane Jones says

“These changes are critical for the country’s reputation as a reliable, high quality producer and exporter of wood products, and for the improved economic, employment and environmental outcomes for the industry and community regionally and nationally,” Shane Jones says.

Photo: Forestry Minister Shane Jones

Efforts to rebuild a stronger export economy will be short-lived if the country doesn’t start addressing the cost of unfair trade practices by China, wood and steel processors say. A surge in export log prices – driven by demand from China – is part of a recurring issue that successive governments have failed to address, said Jon Tanner, chief executive of the Wood Processors and Manufacturers Association.

The group has been promoting greater use of timber construction to underpin renewed investment in domestic processing and create more jobs in the sector. But the high cost of logs here increases the cost of domestic construction products and makes them less competitive with imports. It also makes it virtually impossible to export timber products to China.

Tanner said the issue goes beyond just steel and timber. While agricultural protections are not outlawed by the World Trade Organisation, New Zealand farmers were still facing unfair competition against subsidies in Europe and the US, yet that topic is seldom discussed at a policy level

“All our problems start with trade and unequal competition so therefore we’ve got to get that right first,” Tanner told BusinessDesk.

Chinese trade
New Zealand signed a free trade agreement with China in 2008 and has since seen two-way trade between the countries more than triple. Exports to China were worth $16.8 billion in the 12 months ended March 30, almost twice that of trade with Australia, our second largest market.

But in recent years NZ Steel has lodged three dumping claims related to Chinese steel products, while non-compliant building products imported from China have also attracted more attention from industry and officials.

In 2017, the Ministry of Business, Innovation and Employment funded a study to understand why Chinese importers were paying above international rates for New Zealand logs. The study, by Forest Economic Advisors, noted the “extremely significant” trade imbalance between the countries, with New Zealand’s log exports volumes being 35-times the volume of value-add timber products we shipped to China.

Chinese buyers were effectively setting the domestic log price for New Zealand mills and only the most efficient, modern New Zealand mill could be competitive exporting product to China, the study found.

Source: BusinessDesk
Photo: Jon Tanner, Chief Executive of the Wood Processors and Manufacturers Association.

New generation of dry sorting: SPRINGER and SCA continue successful partnership

With its latest major order, the Swedish SCA Group has again proved that it trusts SPRINGER’s pioneering state-of-the-art technology and innovative product solutions. The Austrian family-owned business is designing and constructing a new, innovative and high-performance dry sorting plant for SCA Bollsta.

Tailor-made automatization and digitalization solutions are implemented, such as the beltless SPRINGER-E-CUT 200 trimmer, the fully automatic SPRINGER-ED 3000 Wrapper, the SPRINGER-Robotic Labeling System (RLS), as well as the SPRINGER IOT and GO-LIVE! system, which creates a complete digital twin of the real plant and brings it to life through a real-time data connection.

“We are delighted to be continuing our successful partnership with SCA. The new dry sorting plant combines superior digital technology with user-friendliness and efficiency”, comments Timo Springer the CEO of SPRINGER Maschinenfabrik GmbH. During the contract negotiations, our Swedish distribution partner LOAB gave us excellent support and reconciled the interests of SCA and Springer. According to Gert Fischinger, head of project planning, the order was issued following a very intensive, two-year project planning process and was based on SPRINGER’s latest product innovations.

The system is the largest single installation as well as the fastest one on the market. It can handle up to 230 boards per minute and 28 handovers per minute, which means that an annual resorting capacity of more than 750000m³ boards can be achieved with no more than three people operating the system. All plant sections are pre-installed, pre-assembled and commissioned at SPRINGER’s production facility.

Completion and handover of the project is scheduled for May 2023.

About SCA SCA was founded in 1929 and is headquartered in Sundsvall, Sweden. In 2019, the company employed around 4,000 people and achieved turnover of approximately SEK