Friday Offcuts – 23 November 2007

This week we have for you:

• ArborGen completes tree nursery and seed acquisitions
• New guidelines for predicting fire behaviour
• Pulp & Paper resources added to Technology Showcase
• Respects paid to leading NZ forestry researcher
• Taupo wood processor wins Engineering Award
• Timbercorp secures AU$200 million wood-chip deal
• NZ mid year forest production statistics out
• Power generation adds value to sawmill waste
• Chinese wood plantations expansion planned
• Sumitomo Forestry to use DNA tracing of wood
• Huge carbon emission cuts pledged by Britain by 2050
• US$5.5 Billion business in Composite and plastic lumber
• Jobs
• Used Eqt
• Buy and Sell
• ...and one to end the week on...naming the twins

ArborGen completes tree nursery and seed acquisitions

ArborGen, a world leader in forest tree improvement technologies, announced last week that it has completed the previously announced transactions to acquire the nursery and seed orchard businesses of its U.S. based partners International Paper and MeadWestvaco, and Rubicon Limited's Horizon2 Australasian business.

"The combination of these businesses is very exciting," said Dr. Barbara Wells, ArborGen President and Chief Executive Officer, "as it brings together organizations that are recognized industry leaders and represent the very best expertise in breeding, genetics, seedling production, sales and distribution to uniquely create a world-class fully integrated, full-service tree improvement company."

This single transaction has moved ArborGen from being a research-based business to now becoming a commercial entity. The new ArborGen includes nursery and seed operations, land holdings, tree improvement research and development capabilities, and full ownership of 50-plus years of premiere pine and hardwood germplasm and tree breeding programs.

ArborGen will now provide quality products and services to an expanded customer base, operating from more than 20 locations in the United States, Brazil, Australia and New Zealand, and producing more than 350 million annual tree stock sales. Source: RISI

New guidelines for predicting fire behaviour

The findings of Australia's most extensive study to date of the behaviour of high-intensity bushfires in eucalypt forests - Project Vesta - provides valuable new tools and information for fire managers across Australia.

Ensis Bushfire Research Leader Jim Gould says the 10-year study provided data to develop a better system for predicting the spread and intensity of wildfires. "Existing systems for predicting forest fire behaviour work well for low-intensity fires such as prescribed burns, but can under-predict the spread of high-intensity summer fires by a factor of three or more," Mr Gould says.

"As a result of this research we have developed a new bushfire spread model for summer wildfires that will provide the basis for a national fire behaviour prediction system for dry eucalypt forests. The study also provides new information of critical importance to firefighter safety by highlighting the sudden jump in speed and intensity of a fire that takes place when a wind change turns a flank-fire into a
head-fire," he says.

Former project leader, CSIRO Honorary Fellow Phil Cheney, says the research resulted in a number of important breakthroughs that will improve the ability of fire agencies to manage fire risk. "This study has enabled us to get a measure of factors that have not previously been quantified, such as establishing the parts of the fuel structure that influence the rate of spread," he says.

"As a result, we now have a vastly improved understanding of the fundamental relationships between fire behaviour and all fuel types of similar structure. This enabled us to develop a new field guide for fire managers that relates fire spread to fuel structure and weather conditions across the entire country whereas, previously, fire behaviour guides were specific only to certain vegetation types," Mr Cheney says. Background information on the project can be found at:
www.ensisjv.com/projectvesta

Pulp & Paper resources added to Technology Showcase

One of our main supporters to Friday Offcuts, APPITA, have just added four papers presented at their 61st Annual Conference to the Technology Showcase within Friday Offcuts.

Ranging from Wood Fibre for Future Products for Pulp through to the more technical papers looking at Image Analysis Technology for Paper Formation, these can now be downloaded for your own use directly from Technology Showcase. Future resources will be added to this section of the Showcase shortly.

Respects paid to leading NZ forestry researcher

Leith Knowles passed away in Rotorua Hospital at age 63 on Monday, 19th November. His funeral was held on Thursday where a large number of people from throughout the forestry industry paid their respects to one of New Zealand forestry's keenest and most passionate researchers.

Leith went through the Ranger training scheme in the New Zealand Forest Service and went on to become a well-published scientist in both radiata pine and Douglas fir. He was well-known in New Zealand and internationally for his extensive research and authorship of hundreds of papers promoting silviculture, agro-forestry and farm forestry. Leith was involved in the creation of early radiata pine growth and stand models such as SILMOD - still recognised and used by foresters today. In 2004 the New Zealand Farm Forestry Association bestowed their Distinguished Service Award on Leith for his long-time contribution to farm forestry. He is survived by his wife Barbara and family.

Taupo wood processor wins Engineering Award

A Taupo-based wood processing facility took out the Sustainability & Clean Technology category at the New Zealand Engineering Excellence Awards last night. Tenon Ltd's Taupo wood processing facility had previously burned up to 500 terajoules of natural gas per annum to provide heat for its nine wood-drying kilns.

In partnership with Tenon, Contact Energy Ltd designed and constructed a heat plant that takes a mix of geothermal steam and water to three heat exchangers at the Tenon site. The geothermal heat is then used as the sole heat source for the kilns. After use, all geothermal fluid from the heat exchangers is re-injected back into the geothermal reservoir. More >>

Timbercorp secures AU$200 million wood-chip deal

Managed Australian investment company Timbercorp has secured a AU$200 million deal to supply its blue-gum woodchip production for the next three years to Japan. Two million tonnes of chips will come from the company's plantations in the south-east of South Australia and western Victoria, to supply three pulp and paper manufacturers. Currently the company is working with governments to address concerns over road and rail infrastructure between the plantations and shipping facilities at Portland. Source: ABC Rural

NZ mid year forest production statistics out

The forest industry reported an increase in production for all forestry products during the June 2007 quarter. Between the March 2007 and June 2007 quarters production of all forestry products increased. Major changes in production between the June 2006 and June 2007 quarters were increases in the production of veneer, plywood and particleboard, and a decrease in fibreboard production.

June 2007 quarter roundwood removals were up 12.9 percent to 5.3 million cubic metres on the March 2007 quarter. Roundwood removals for the June 2007 quarter were also up on the June 2006 quarter by 8.4 percent. Much of the increase in roundwood removals came from increased log export volumes.

The production of paper and paperboard in the June 2007 quarter was up 13.2 percent on the March 2007 quarter, reaching 226 000 tonnes. There was a decrease of 3.0 percent on the June 2006 quarter and a decrease of 10.1 percent on the June 2006 year. The volume of fibreboard produced in the June 2007 quarter was up 12.6 percent on the March 2007 quarter, but it was down 16.8 percent on the previous June quarter. The volume of veneer produced in the June 2007 quarter was up 19.0 percent on the March 2007 quarter and up 13.3 percent on the June 2006 quarter.

In comparison to the same quarter last year, June 2007 quarter export volumes increased for most products except sawn timber (down 1 percent) and fibreboard (down 26.8 percent). Much of the reduction in fibreboard exports was due to reduced production after a fire closed a fibreboard mill in September 2006. This accounted for a 10 percent and 21.5 percent loss of export value of sawn timber and fibreboard respectively.

The volume of logs and poles exported during the June 2007 quarter increased 26.2 percent to 1.7 million cubic metres. The value of logs and poles exported over the quarter was NZ$189 million, up 15.4 percent on the March 2007 quarter and 33.3 percent on the June 2006 quarter. Export volumes of logs and poles for the year ended June 2007 rose 20.6 percent on the year ended June 2006 (6.3 million cubic metres) compared with the year ended June 2006 (5.2 million cubic metres). Over the same period, export values increased 43.1 percent.

Sawn timber export volumes in the June 2007 quarter were 479 000 cubic metres, a rise of 24.9 percent on export volumes for the March 2007 quarter and a loss of 1 percent on volumes for the June 2006 quarter. Export values of sawn timber dropped 10 percent between the June 2006 and June 2007 quarters.

For full details on the production statistics, see www.maf.govt.nz/statistics

Power generation adds value to sawmill waste

A new study has identified a range of energy products as the most quickly and easily developed to add value to wood residues from sawmills across Australia. These include solid fuel products such as briquettes and pellets, bio-oils and green electricity. The technology review for Forest and Wood Products Australia (FWPA) has also found that while chemical products represent the most lucrative long-term option for wood residues, these are the furthest from commercial reality.

FWPA Managing Director Dr Glen Kile said the study assessed the economic benefits of various residue-derived products to Australian sawmill operators, while also assessing sawmill operators' technological readiness - the suitability of their available expertise and equipment. Engineering consulting firm The Carnot Group conducted the review. There are more than 200 hardwood sawmills in Australia, most of which are small-scale and geographically dispersed. They generate large volumes of wood residue in the form of chip, bark and sawdust, much of which is burnt or sent to landfills.

The Carnot Group's Managing Director, Malcolm Peck, said while there was a large market potential for chemical products, which represented the highest value of all options reviewed, these were the furthest from commercialisation. "Combined heat and power, briquettes, and pellets are the most technologically ready options, followed by bio-oils. Wood residues for co-generated heat and electricity are the most economically viable of the re-use options," Mr Peck said.

While the pyrolysis process for production of bio-oils had reached commercial implementation overseas other processes such as cellulosic ethanol, Fischer-Tropsch diesel or other biomass-to-liquid fuels were still under development. Ethanol was the most advanced, but was still potentially some years from commercialisation.

Mr Peck said Australian Government incentives were providing increasing value for bioelectricity. "Renewable Energy Certificates, which support compliance with mandatory renewable energy requirements, are encouraging renewable electricity generation to reduce greenhouse gas emissions. It is obvious that heat and electrical power generation is the most attractive immediate revenue source from sawmill residues."

The full report "Opportunities for using Sawmill Residues in Australia" is available from the FWPA website www.fwpa.com.au

Chinese wood plantations expansion planned

China ranks first in global plantation area (about 25 million ha) and fifth in global forest area (175 million ha). To address the growing and massive timber supply gap, numerous Chinese government policies and incentives have recently been enacted to expand the area and volume of plantations; the focus is on the expansion of fast-growing, high-yield (FGHY) plantations.

The goal by 2010 is to have 4.7 million ha of FGHY plantations established, providing 49 million m3 of timber per year, which in turn can support 6.4 million m3 of wood-based panel production, and provide 3.4 million m3 of large-diameter timber production. By 2020, the FGHY plantations are planned to exceed 13 million ha, providing a whopping 133 million m3 of timber per year that could support 21.5 million m3 of wood-based panel production and 15.8 million m3 of large diameter-timber.

These goals and new policies demonstrate the importance of the forestry sector in the eyes of the central government. These plantation policies and others are being used by the government to stimulate investments in priority projects, especially in the wood pulp and wood panel sectors. For potential investors, China's market for locally grown plantation wood offers good prospects for stable and continuous revenues. However, in China's current context, developing new plantations or buying existing plantations is not a straightforward task. Source: WOOD Markets Monthly, October 2007 Report (www.woodmarkets.com)

Sumitomo Forestry to use DNA tracing of wood

Sumitomo will use DNA tracing to verify the origins of plantation wood from nurseries, logs and lumber to finished products to eliminate the need for a tracing document or other tag for identification. The company will create new business using this technique, which has the capability of identifying the origin of trees up to 50 years old and can also trace plywood and LVL. The technique has not been developed for the purpose of tracking timber from natural old growth forests or MDF and particleboard made from woodchips. Instead, it will be increasingly used for solid wood products from plantation forests, as less naturally grown trees are utilized. Source: ITTO TTM Report October 2007

Huge carbon emission cuts pledged by Britain by 2050

British Prime Minister Gordon Brown is urging all nations to rise to the challenges of combating global warming, which he compared to the challenge of recovery after World War II. Mr. Brown wants his country to set an example and cut carbon emissions by at least 60 percent by the year 2050.

Prime Minister Gordon Brown says "the climate change crisis is the product of many generations." "But overcoming it must be the great project of this generation. And, this project will have to involve not just America and Europe as in 1945, but the entire community of nations."

Mr. Brown said Britain is in a position to lead, and he proposed a climate action plan to sharply reduce Britain's so-called carbon footprint. The British government has announced it would aim for a 60 percent reduction in carbon emissions by 2050. This week, the prime minister said that could even be increased to an 80 percent cut, if further study shows that might be attainable. More >>

US$5.5 Billion business in Composite and plastic lumber

Demand for wood-plastic composite and plastic lumber in the US is projected to climb 10 percent per year through 2011 to US$5.5 billion. These alternative lumber materials are expected to continue to penetrate the building materials market at a rapid pace, particularly in decking applications. Ongoing interest in "green" building products will bolster use of composite and plastic lumber made with recycled content. These and other trends are presented in "Composite & Plastic Lumber," a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

With respect to materials, wood-plastic composites will fare better than pure plastics. Demand for wood-plastic composite lumber will grow 14 percent per year compared to a seven percent growth rate for plastic lumber. Composite lumber growth will be fueled primarily by strong demand for the material in decking, which is by far the largest application for composite lumber. Rapid expansion in window and door applications, as well as in smaller niche applications (e.g., porches, site and leisure furniture, etc.), will also boost demand.

Growth in demand for plastic lumber will decelerate from the rate posted in the 2001 to 2006 period, a result of direct competition from wood-plastic lumber. Significant applications for plastic lumber include moulding and trim, as well as fencing and decking. Among the major applications, windows and doors are anticipated to post the fastest gains through 2011 (albeit from a small base).

Decking applications are projected to see strong gains, continuing to increase their relative share of the composite and plastic lumber industry. By 2011, decking will be the largest end use for these alternative building materials, accounting for 43 percent of total demand. Moulding and trim will remain a key market for composite and plastic lumber, but will see below-average growth through 2011. Increasing market maturity in the plastic lumber segment will limit growth, as will a weak new housing environment. Fencing applications will see strong, although below-average, gains due to increasing maturity in the plastic lumber segment. Source: Earthtimes.org

Jobs

Used Equipment

Buy and Sell

...and one to end the week on...naming the twins

Paddy's pregnant sister was in a terrible car accident and went into a deep coma. After being in the coma for nearly six months, she wakes up and sees that she is no longer pregnant. Frantically, she asks the doctor about her baby.

The doctor replies, "Ma'am, you had twins..... a boy and a girl. The babies are fine now. However, they were poorly at birth and had to be christened immediately - your brother came in and named them.

The woman thinks to herself, "Oh suffering Jesus no, not me brother...he's a clueless idiot". Expecting the worst, she asks the doctor, "Well, what's my daughter's name?"

"Denise," says the doctor.

The new mother is somewhat relieved. "Wow, that's a beautiful name.I guess I was wrong about my brother....I like Denise." Then she asks, "What's the boy's name?"


" Dnephew"

And on that note, have a great weekend. Cheers.

Brent Apthorp
Innovatek
PO Box 904
Level Two, 2 Dowling Street
Dunedin, New Zealand
Ph: +64 3 470 1902
Fax: +64 3 470 1904
Web page: www.innovatek.co.nz


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