The government of France is set to require that all new public buildings must be made at least 50% from wood or other sustainable materials from 2022 as it pushes for sustainable urban development.

The local government in Paris had already pledged a greater use of natural materials such as wood, straw and hemp, and any buildings higher than eight storeys built for the 2024 Paris Olympics must be made entirely of timber.

“If it is possible for the Olympics, it should be possible for ordinary buildings,” said Julien Denormandie, minister for cities and housing, on 5 February. “I am imposing on all public bodies that manage development to construct their buildings with material that is at least 50% wood or other bio-sourced material.”

The minister also called for the creation of 100 urban farms, with the first 30 to be selected by this summer. “As a father, I prefer that what is on my children’s plates come from the local area, rather than being imported on a plane,” he said.

Finally, he announced the objective of low-carbon cities that can adapt to heat waves and floods. This will involve the building of 90 “eco-neighbourhoods”, to be organised by the a new body called “France Ville Durable”, chaired by Patrice Vergriete, mayor of Dunkirk.

In 2016, it was announced that the city of Bordeaux would acquire France’s first timber towers. The Hyperion towers (pictured), will be 50m and 57m in height. They are being developed by Bordeaux Euratlantique, a public body involved in modernising the city. The project is due to be completed later this year.

Photo: Image: A rendering of Bordeaux’s Hyperion project (Jean-Paul Viguier & Associés)
The 57m high timber construction Hyperion building in Bordeaux

Deakin University has announced it will pioneer an Australian first Hydrogen Transition Centre to help fuel cleaner, low emissions trucks in Victoria. The centre to be established at Deakin’s Warrnambool campus in the state’s southwest, will partner with industry on the AU$20 million research and industry testing site according to Deakin Vice-Chancellor Professor Iain Martin.

“Freight trucking continues to grow here and overseas, and trucks are driving further, with heavier loads; all big challenges. The centre confirms Deakin’s commitment to the Warrnambool campus and the broader region, and when the HyceL@Warrnambool project is fully established it will create up to 200 full-time jobs,” he said. With AU$2 million in Federal Government research funding allocated to it, the Hydrogen Transition Centre will develop hydrogen fuel cells to work in tandem with electric vehicle technologies as part of the fast growing multi-billion-dollar hydrogen market.

“The Federal Government investment will see our researchers’ partner with Australia’s leading truck manufacturer, Kenworth, as well as with industry leaders in hydrogen fuel-cells, electric vehicles and gas distribution,” said Martin. It is understood PACCAR is poised to partner on HyceL@Warrnambool in which fuel-cells can create electricity from hydrogen and oxygen with water vapour the predominant emission.

An electric truck, using this technology, can create power while driving, to dispense with the frequent stops currently required of battery charging infrastructure. “If successful, the enhanced technologies could be used by Kenworth trucks made here in Australia, as well as those made internationally by Kenworth’s parent company PACCAR – a US Fortune 500 company. The technologies can also be applied to other heavy vehicles, such as buses, including those operated by Warrnambool Bus Lines,” Martin said.

According to Deakin the Hydrogen Transition Centre will put Victoria’s southwest at the heart of Australia’s work in hydrogen fuel-cell innovation and position the region well, to cash-in as new markets for hydrogen technologies emerge in the international push for cleaner transport. The global fuel-cell market is predicted to be worth more than AU$71 billion.

Source: primemovermag.com.au

Russia has surpassed Canada to become the world’s largest exporter of softwood lumber, and was on track to ship almost 32 million m3 of lumber in 2019 (23% of globally traded lumber in 2019), reports the Wood Resource Quarterly in its latest issue.

Global trade of softwood lumber slowed in the 3Q/19 but was still on pace to be higher than in 2018. Russia, Belarus, Germany and Finland have boosted their lumber sales the most this year, reports the WRQ. An excerpt from the newly released market report Wood Resource Quarterly reads.

Global Softwood Lumber Trade

• Russia has surpassed Canada to become the world’s largest exporter of softwood lumber, and was on track to ship almost 32 million m3 of lumber in 2019 (23% of globally traded lumber this year). Despite slowing economies in North America, Europe and Asia, lumber imports to these markets were higher in 2019 than in 2018.
• Volume traded during the first nine months of 2019 represented the second lowest y-o-y increase for the period in eight years, according to the WRQ. Of the world’s ten leading exporting countries, Russia, Belarus, Germany and Finland have boosted their lumber sales the most this year.

Lumber Market – North America

• Lumber production has fallen in both the US and Canada in 2019 because of disappointingly low activity in the US housing market and meagre demand for North American lumber in overseas markets. From January to September in 2019, lumber exports from Canada were down 5% y-o-y, while US shipments fell as much as 23%.
• All the major lumber-producing companies in British Columbia have taken downtime this fall, causing production to plummet 19% in 2019.
• Prices for softwood lumber were quite stable during the summer and fall in three of the four major lumber-producing regions of North America. Only in the US Northwest, where log supply has been tight and demand for lumber along the US west coast has stayed healthy, did lumber prices move up from their lower prices early in the year.

Lumber markets – China

• China imported 15% more softwood lumber in the first nine months of 2019 than during the same period in 2018. Importation has trended upward for over five years.
• Russia supplied 60% of the import volume to China in the 3Q/19, a slight decline from the 3Q/18. Imports from Canada rose 18% y-o-y and import volumes more than doubled from a few smaller suppliers this past year, including Germany, Ukraine and Belarus. Lumber import prices have fallen for three consecutive quarters to average $174/m3 in the 3Q/19, the lowest level since 2016.

Source: Wood Resources International, www.WoodPrices.com

New Zealand log exporters are bracing themselves for supply chain problems in China due to the outbreak of coronavirus. Some forest owners are already reducing their harvesting rate. Regrettably this will have an immediate effect on harvesting crew employment.

The New Zealand Forest Owners Association says that the extended Lunar New Year public holiday makes it difficult to know what is going to happen when sawmills in China restart. Association President Peter Weir says he understands that log ships continue to be unloaded, but he says we need to wait to determine what the offtake volume of logs might be after the traditional New Year break. There is industry concern that if the virus were to infect more people in coastal towns and cities then access to Chinese ports could be restricted with little warning.

China is by far the largest and most important market for New Zealand’s export logs and by value New Zealand earns half its export income from China. The coronavirus outbreak comes on top of new supplies of softwood into China, due to the salvage of insect and windstorm damaged spruce forests in Central and Eastern Europe. Warmer winters and longer summers have led to very high rates of spruce beetle infestation with large areas of forests being clear-felled and salvage logs railed and shipped to China.

In the coming year, exports of bushfire damaged pine logs from Australia also have the potential to increase the softwood supply to China. Peter Weir says, “We know from our embassy in Beijing that the Chinese central government authorities are doing an excellent job of both trying to protect people from the spread of coronavirus and at the same time ensuring economic activity is sustained. But nobody knows how long and widespread the coronavirus outbreak will be and what effect that will have on any medium-term trade.”

“We are most concerned about the effect on the harvesting workforce in many regions of New Zealand which depend on log exports. Forest owner capacity and circumstances vary hugely. Those owners who supply domestic sawmills will be largely unaffected, but the domestic market can only take less than half the current annual harvest and not all log grades.”

“Stockpiling logs is not a good option, because the logs deteriorate, especially at this time of the year, and unrestrained supply from here is a market threat. I should say that it is possible that the disruption will turn out to be brief, as it was in mid-2019. It is entirely possible that the Chinese timber processing and construction industry will return to normal and the inventory stored at ports will diminish over the next few months as it normally does.”

“In the meantime, we hope that our valued sawmilling industry customers, often small family businesses, in and around port cities in China, are not impacted by the virus. Peter Weir says the industry leadership is closely working with MPI and Te Uru Rākau, supported by the New Zealand embassy in Beijing on the rapidly evolving situation.

The CEO for the Forest Industry Contractors Association, Prue Younger is confirming that contractors being told to halt felling trees has come as a complete surprise. “The industry is reeling a bit as you would expect,” Prue Younger says. “Although market prices were on their way down again, the coronavirus impact has made this a very complex situation. It’s important that we’ll be working with forest owners daily and ascertain the extent of this fallout and how long our crews might expect to be out of work.”

“There are risks for everyone in this scenario and like all primary industries the ripples may be extensive.”

Source: FOA, FICA

Included in this week’s issue is a media release put out on Monday by FOA and the Forest Industry Contractors Association on the impact of the Chinese market and ripple effects being felt by the forestry industry and contractors in New Zealand. In addition to the information in the press release, they’ve included additional market intelligence sent out to their members mid-week that may shed some light on this rapidly evolving situation to our readers.

“It is a difficult time and no one knows how this is going to play out. At this stage we are trying to gather facts. China is trying to keep trade open and as far as we are aware are still unloading ships. However, inventories are at the high end of what is normal at China ports so what happens next depends on whether the Chinese sawmills come back on line after the end of the extended New Year. We are seeing some but not all companies taking a precautionary approach to try to avoid an excessive build-up of inventory in China and the subsequent downside impact on log prices”.

Key messages:

• The situation is very fluid but has the potential to become very serious. More time and information will be needed before we know.
• The port inventory level in China is very high (5-6 million m3) and growing as supply exceeds demand.
• The impact of the Coronavirus is coming on top of market disruption caused by the significant increase in supply of wood (larch) from Europe as a result of the beetle infestation. Supply and demand have also been affected by the Chinese New Year being extended (9 February).
• The Chinese ports are currently open despite some rumours to the contrary. Ship crews are being quarantined while they work. The Chinese government has an obvious interest in keeping the port trade functioning and that extends well beyond forestry.
• Some parties have already taken action. All forest owners are prepared to cut back production at some point. Some have already reached that point. Others are monitoring but still trading and with contingency plans. PFP has advised they will not be accepting any more wood. This has affected Gisborne and Southland ports in particular. On the back of this a number of corporate members have ceased harvesting in the Gisborne region immediately. This adds to the cutback already taken by smaller and medium sized players and means the reduction in supply will be significant.
• The domestic market will also be impacted. Reduction in export logs will also mean a reduction in domestic logs. Furthermore, the export market for processed product, particularly pulp, may compound the issue.
• The end of the extended Chinese New Year period (Sunday, 9 February) may provide some greater clarity as workers officially return to work. Further virus spread and/or on-going travel restrictions are likely to mean that not all businesses will be operating as normal.
• Industry leadership is closely working with MPI and Te Uru Rākau, supported by the New Zealand embassy in Beijing on the rapidly evolving situation.

Source: Forest Owners Association

As recovery gets underway for the Tumbarumba region, NSW, the Hyne Timber Mill is back up and running, despatching truckloads of timber, thanks to the many volunteers and emergency services who protected it throughout the bushfire crisis. A number of team members from Queensland have been deployed to Tumbarumba to assist with the Mill’s recommencement and enable impacted team members more time to recover personally where required.

Employing approximately 230 people directly, the Mill is part of a circular economy worth AU$2 billion every year to the South West Slopes region and supporting almost 5000 jobs in total. Hyne Timber CEO, Jon Kleinschmidt said Hyne Timber’s Tumbarumba Mill is categorised as critical infrastructure and was protected accordingly by qualified strike teams.”

“Last week, I had the opportunity to meet with the Fire and Rescue strike team to understand the reassuring fire prevention measures and readiness they had in place. I also met with many Rural Fire Service volunteers and emergency services, many of whom are our own team members, who continued to fight bushfires, put in containment lines and help the broader community.” Mr Kleinschmidt said.

Today, the town is busy rebuilding and Hyne Timber remains focused on supporting the community through the long-term operations at the Mill. “Once small volumes of existing log yard stocks have been processed, we will be prioritising the processing of salvaged burnt log which we have done before. Once we remove the burnt bark, the structural grade timber is the same quality our customers value and we appreciate their ongoing support.”

Hyne Timber, Visy Pulp and Paper and AKD Softwoods are the three largest employers within the region’s industry, collectively employing over 750 people directly across Tumbarumba and Tumut. Collectively, and with the support of the Softwood Working Group, the companies are engaging constructively with all levels of Government.”

“We have welcomed preliminary meetings with the NSW Deputy Premier, the Hon. John Barilaro who has also been appointed the Minister for Disaster Recovery. I look forward to continued dialogue and support from all levels of Government to secure ongoing log supply and longer distance freight support, amongst other challenges, for the industry moving forward.

“As with support for individuals and wildlife, Government support for the industry and associated economy will be critical as part of the ongoing recovery efforts.” Mr Kleinschmidt concluded. Hyne Timber thanks all those who supported team members, the community and the mill, including the emergency services, volunteers, staff and many others.

Source: Hyne Timber

By: Jamie Gray
Business reporter, NZ Herald
jamie.gray@nzherald.co.nz    @JamieGrayNZ

Late last year, New Zealand log prices in China were improving, restoring a little confidence to the sector.

But the virus outbreak has again seen logs start to pile up on Chinese wharves as economic activity looks certain to slow in response to the outbreak, which has killed at least 426 people.

A sudden increase in imports from Europe saw “A” grade log prices slump to US$105 per JAS metre last July after hitting a record US$140/metre a year earlier, thereby ending a five-year strengthening trend.

READ MORE:
• NZ logging contractors feel the pinch after price slump
• NZ log export prices bottom out after slump
• NZ log export trade could take 6 months to recover after price slump
• NZ log prices plummet as China demand suddenly dries up

Today, with so many players absent from the market, it’s difficult to even establish a price.

“There is a lot of uncertainty as to where things are going,” ANZ agriculture economist Susan Kilsby said.

“Prices are definitely heading south, but to actually quantify that is pretty difficult at the moment,” she said.

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Metsä Fibre, part of Metsä Group, is renewing its sawn timber product brand. The previously used Nordic Timber name will be replaced by Metsä brand in all sawn timber products, and at the same time, the company is renewing its sawn timber shipping marks and packaging to respond to the brand update.

“We want to continuously improve our operations and create more added value for our customers, and that’s why our customer promise is Exceeding Expectations – a commitment that reflects our strategic aim and ambition,” says Ari Harmaala, SVP Sales and Customership, Metsä Fibre.

As of January 1st, 2020, Metsä Fibre is also responsible for the all operations related to sales, order handling and delivery. The only exception to this is the sales in England, Wales and Scotland that will be handled through Metsä Wood sales organisation.

Metsä Fibre is a leading producer of bioproducts, biochemicals and bioenergy. Metsä Fibre is the world’s leading producer of bleached softwood pulp and a major producer of sawn timber. Metsä Fibre is part of Metsä Group.

Excess heat from the industrial processes at Stora Enso’s Maxau paper mill in Germany, will be used to provide renewable, biomass-based district heating for the city of Karlsruhe.

A new, approximately two-kilometre-long connection pipeline will transfer the heat from the mill to an existing pipeline that links up the local refinery with the municipal heating grid. The local district heating supplier Stadtwerke Karlsruhe will start the construction of the pipeline in late 2020, aiming for completion by the end of 2022.

More than 80% of the fuel used at Maxau Mill is biomass-based. In addition, a new steam turbine, to be taken into use at the mill during 2020, will further increase the potential of combined heat and power production at the mill. Thanks to these factors, the city of Karlsruhe and Maxau Mill expect to cut 10,000 tonnes of CO2 emissions annually.

Roughly 40,000 households and a large number of businesses in Karlsruhe currently use district heating. More than 90% of the heat is sourced from industrial processes and from the excess heat generated in combined heat and power production. The excess heat from Maxau Mill will add to current local sources of heat – an oil refinery and a power plant of an energy supplier. This expansion contributes to the German energy transition and is one of the biggest climate protection projects in the state of Baden-Württemberg.

Photo: Maxau paper mill / storaenso.com

A proposed large-scale wind farm project in the Wide Bay region of Queensland, valued at up to AU$2 billion, is moving forward thanks to facilitation support provided by the Palaszczuk Government. Minister for State Development Cameron Dick said the Forest Wind project could create around 440 construction jobs and boost renewables supply for Queensland’s future energy needs.

“This would be one the largest grid-connected wind farms in the southern hemisphere,” Mr Dick said. “The wind farm would generate approximately 1200 megawatts at capacity, which will power more than 550,000 homes. This could increase Queensland’s installed power generation capacity by approximately nine per cent. The project will now move into the detailed assessment stage, which will also include the assessment of its development application.”

Mr Dick said the proposed wind farm would be located within state forest land between Gympie and Maryborough. “It would co-exist with established southern pine timber plantations that support our forestry industry,” he said.

Forest Wind Holdings, a joint venture between Queensland-based renewables firm CleanSight and Siemens Financial Services, has proposed to locate up to 226 wind turbines across the sites. The plantations are owned and managed by HQPlantations on land under licence from the state.

“Locating the wind farm on plantation licence areas would be a first for Queensland. It’s a great example of private enterprise thinking outside the box to help boost renewable energy generation in our state.” Forest Wind Holdings has confirmed that subject to receiving all relevant approvals, construction of the wind farm could commence as early as fourth-quarter 2020.

HQPlantations CEO Jeremy Callachor said he was excited about the possibility of supporting the Queensland Government’s long-term renewable energy targets in a material way. “We will work closely with Forest Wind Holdings to leverage complementary opportunities for improvements in fire protection and road access in the estate, and to ensure there is minimal impact on timber production,” Mr Callachor said.