Friday Offcuts – 11 November 2011
Click to Subscribe - It's FREE! In just over two weeks Kiwis go to the polls to elect a new Government. Research, Science & Technology very rarely gets air time in the lead up to any election. However, through the Science Media Centre's Election 2011 Q&A published this week, issues such as energy use, biosecurity and R&D, through to science education, the structure of the Crown Research Institutes and the state of water quality in New Zealand have been tackled by each of the major political parties. It's unlikely to sway your voting but it’s certainly refreshing to get their take on just how important science and technology is to the country’s future social and economic development.In line with a need to increase the focus on improving R&D to drive the slowing economy, the NZ Government announced late last week (see story below) plans – if re-elected in a couple of weeks time - to set up a new “high-Tech HQ”. The concept has apparently already worked well in countries like Denmark, Finland and Singapore and if the NZ centre gets off the ground, it's going to eventually employ over 700 R&D specialists. As pushed for by the forestry and wood products sector for some time, the idea for the new institute is that it will work with both research providers and businesses to better translate some of the research and innovation that’s coming out of our current research providers into commercial products. We’ve got a number of stories in this week’s issue relating to carbon and carbon forestry. On Tuesday the Australian Government finally passed their controversial carbon tax legislation. As reported, from July next year the country’s 500 biggest polluters are going to be paying AU$23 per tonne of carbon that they generate. By 2015, the tax on carbon will be flexibly priced under a new market-based Emissions Trading Scheme. Coincidentally, the NZ Government said on Wednesday that they now intended to slow the phasing in of the ETS from 2013 to 2015, after which (if still in power) they'd look to align NZ’s ETS to that adopted by Australia. We also have a story on CO2 Group's announcement this week that their NZ partner had secured a new $10 million carbon sequestration project with a Maori community and local authorities and we have included information on resources that came out of the major Carbon Forestry 2011 event in New Zealand this year that have just been posted on-line and can now be accessed and used by FIEA members.
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This week we have for you:
Australian Forest & Wood Products statistics releasedStatistics for the March/June quarters 2011 are now available from ABARES. This bi-annual report provides quarterly and annual data on the consumption, production, import and exports of wood and paper products. The report shows Australia's forest industry has experienced stronger trade conditions, following a period of weak international markets. The general trends observed in trade indicate an increase in both imports and exports of wood products, however there was a significant decline in hardwood plantation establishment and a slowing in new housing construction activity.The latest report and information can be viewed here Big new science institute planned in NZIf the NZ Government is re-elected this month, it plans to boost investment in the science sector and transform Industrial Research Limited into an advanced technology institute that will function as New Zealand's "high-tech HQ". The announcement has come out of Powering Innovation, a report into how the country can more successfully grow its high-tech manufacturing and services sector that has just been released.Prime Minister John Key said that over the next five years the size and capability of Industrial Research Limited (IRL) would be doubled, transforming the crown research institute into an advanced technology institute with up to 700 employees and a "far greater reach". The Government said the new institute would have a strong, business-focused culture and a nationwide remit. It would be located close to the country's high-tech businesses, with facilities in Auckland and Christchurch. BusinessNZ chief executive Phil O'Reilly said the policy was the best single action that could be taken to grow the high tech manufacturing and services sectors. "The planned advanced technology institute will operate in the border between business and science, providing a welcome focus on the development side of research and development," he said. Carbon forestry resources open for FIEA membersCarbon Forestry 2011 was the first conference of its type run in New Zealand this year. The event organised by the Forest Industry Engineering Association (FIEA) certainly was timely, as evidenced by excellent turnout in Auckland on 13-14 July 2011. The event attracted a record turnout of around 250 forest growers and owners, investors, financial institutions, brokers/traders and corporate entities that were starting to look at acquiring larger volumes of carbon credits to manage their liability.A cross section of key papers from the mid-July conference can now be accessed by FIEA members (along with over 400 recent resources) by clicking here. Presentations which can be accessed include:
Global MDF capacity expandsGlobal MDF capacity topped 80 million m3 in 2010 — an increase of 7.1 million m3 (+9.8%) over 2009. In 2010, China remained the world’s largest MDF-producing country at 37.3 million m3 — that’s 83% of Asia’s capacity and 47% of world capacity! Europe came in second at 20.3 million m3; MDF mills in “other Asia” produced 7.5 million m3; South America mills produced 6.5 million m3; and North America was at 5.0 million m3. The global outlook for 2011 calls for an increase of another 3.8 million m3. This will bring the global total to 83.8 million m3 and, subsequently, it is on track to reach 87.4 million m3 by 2013.In 2010, Asia’s MDF capacity of 44.9 million m3 was led by China at 37.3 million m3 — up 15% (+4.8 million m3) from 2009. In 2011, China’s MDF capacity is expected to have grown by an additional 10%, at which point stagnation will begin to show. At present, there is concern in China’s MDF industry that the growth rate of continuous presses exceeds that of production lines. MDF capacity market saturation, as well as available wood supply in China, are both of concern. In the future, the removal of uneconomic capacity in favour of new, more efficient continuous-press lines is expected to be the optimal way of moving forward. China’s is the world’s largest producer, importer, exporter and consumer of MDF. China’s MDF exports totaled US$695 million in value and 1.6 million m3 in volume during the first half of 2011. Also evident is a lack of new planned MDF capacity in China: only one million m3 is planned over the next three years, indicating that there is substantial capacity. Few producers are willing to bring on new MDF mills. The potential for excess MDF capacity in China also signals that MDF exports could begin to rise if there is too much domestic capacity relative to domestic demand (especially in the furniture sector). However, quality and emissions standards for panels must meet offshore countries’ requirements (such as CARB and European standards), and this will limit exports to more modern mills. The MDF trends in China could cause panel producers to diversify future growth away from MDF and expand more in particleboard, where there is a better domestic balance between supply and demand. In terms of new capacity in 2011, 2.4 million m3 are planned in four countries: Colombia, Indonesia, Malaysia and China, with China accounting for over one million m3. For 2012 and beyond, a further 2.5 million m3 is on the books, almost all in South America and with one mill planned for Vietnam. This means there could be more than 87 million m3 of MDF capacity in 2013, indicating a significant slowdown from the torrid 40% annual growth pace witnessed between 1993 and 2010. Source: International Wood Markets Group, www.woodmarkets.com Carbon tax passed in Australia
The Gillard government declared victory for a "historic economic reform" this week after the Australian senate finally passed a carbon tax - laws that have created political havoc for four years and have been debated for more than a decade. The government won the historic vote in the upper house 36 to 32 on Tuesday.A AU$23 a tonne carbon tax will now be paid by about 500 high-emitting companies from next July, with about half the revenue to be returned to households in the form of tax cuts and increases in pensions and family payments, to compensate them as electricity generators pass through the cost of the new tax. Another AU$9.2 billion over the first four years of the carbon pricing scheme will be paid to high-emitting industries with overseas competitors not subject to a tax. They will receive up to 94.5 per cent of their emission permits for free. The carbon price is designed to meet the emissions reduction target endorsed by both major parties of at least 5 per cent by 2020, compared with 2000 levels. Labor is now promising to cut Australia's emissions by 80 per cent by 2050. Source: Stuff Harvesting innovations bring new potential Innovations in harvesting trees on steep slopes have potential to double the size of commercial forestry in New Zealand, according to Future Forests Research. Their 2011 Annual Science Report outlines improvements in harvesting techniques and equipment to increase productivity, improve safety and cut costs.“Cheaper and more effective methods of harvesting trees on New Zealand’s steep country are vital if the forest industry is to remain internationally competitive and to grow,” the report says. “Once cost-effective solutions to steep country harvesting are achieved, it will enable greater expansion of forestry on to marginal land, most of which is on slopes over 20 degrees. This could double the size of commercial forestry in New Zealand.” Over the past year FFR has worked with Kelly Logging Ltd and Trinder Engineers Ltd in Nelson to test and refine a new steep slope harvester developed by the companies that can safely fell, bunch and extract trees on slopes up to 50 degrees where ground conditions allow. An economic analysis by Scion showed the advantages of bunching with this machine included a 60% increase in the number of trees hauled, compared with manual felling. With FFR’s support the companies are now developing a second prototype capable of operating at different angles more effectively on steep slopes. While Trinder Engineers work on refining the machine, FFR researchers are developing tools to assist the operator. During the past year researchers have demonstrated how digital terrain models derived from aerial LiDAR (Light Detection and Ranging) can be displayed through an on-board monitor to assist the machine operator to navigate in complex terrain. The natural progression of this research programme is to eliminate the need for an operator sitting in the machine through the development of remote control (tele-operation). Over the past year the groundwork has been laid for a remote control system capable of operating the feller-buncher on steep terrain. Once achieved, this technology will help to enable FFR’s vision of future logging operations with “no worker on the slope, no hand on the chainsaw”, removing workers from hazardous situations. The Kelly Logging and Trinder Engineering steep slope harvester will both be on show at the FICA Big Day Out on the 17th and 18th November in Nelson. To register call or text Lisa Forrest on +64 7 921 1382 or +64 21 275 8011, or email lisa.forrest@fica.org.nz NZ’s log exports to China one-third of 2011 harvestLog exports from New Zealand in 2011 are set to reach a new record high. During the first eight months, total shipments were 25 percent higher than the same period last year (54 percent higher by value) and total exports for 2011 may reach as high as 13 million m3, which is more than a doubling from just three years ago.It is worth noting that almost half of the timber harvest in the 2Q was shipped overseas in log form and that almost one-third of the timber harvest in New Zealand is shipped to Chinese sawmills. While log exports have increased substantially this year thanks to demand in China, lumber exports have actually declined from last year. The steady increase in log exports the past five years may very well continue in the coming 15 years as the theoretical harvest level in New Zealand is set to double to 55 million m3 by 2024. Most observers in the industry agree that, for a number of reasons, this timber harvest scenario is less likely. Depending on market conditions, a more realistic level of annual timber harvests in 15 years would be between 35 and 45 million m3 annually. Even this lower harvest outlook alternative would increase available log supply from the current levels by over 50 percent. Source: Wood Resources International LLC, www.woodprices.com
CO2 NZ secures new $10 million carbon projectCO2 Group Limited announced this week that its partner CO2 New Zealand has secured a new $10 million carbon sequestration project in New Zealand for a significant Maori community (Iwi) in the North Island of New Zealand. The project, which will be undertaken in partnership with the Iwi and other local authorities, will bring additional benefits such as carbon based afforestation, erosion control and waterway management."This is a significant project for CO2 Group and further strengthens our New Zealand business," said CO2 Group's CEO Andrew Grant. In addition to securing this major investment project, CO2 New Zealand has secured over $7 million of long term carbon contract sales with major New Zealand Emission Trading Scheme compliance parties. CO2 New Zealand is also involved in mapping of pre-1990 forestry land as part of the deforestation obligations under the New Zealand Emissions Trading Scheme (ETS). CO2 New Zealand is currently involved in the mapping of more than 220,000 hectares which will realise close to 5.7 million NZUs for clients making it the largest land applicant to the New Zealand Government for Pre-1990 forest allocations on behalf of its clients. Commerce Commission settles CHH timber claimThe NZ Commerce Commission has agreed to a settlement with Carter Holt Harvey Limited (CHH) which ends civil proceedings brought by the Commission under the Fair Trading Act.The Commission’s proceedings related to the sale and marketing of Laserframe timber by CHH between 1998 and 2003. CHH claimed that its Laserframe timber had the structural characteristics of MGP10 timber, meaning it complied with the requirements of AS/NZS Standard 1748:1997. The Commission alleged some of the timber did not comply with the Standard. In October 2006, CHH pleaded guilty to criminal charges brought by the Commission, and was fined $900,000. The Commission then filed civil proceedings to recover the losses that the Commission alleged had been suffered by competitors and customers who purchased the timber. As a result of the settlement of the case CHH will make a voluntary ex gratia payment of $1.5 million to a project relating to the restoration and rebuilding of Christchurch following the earthquakes. More >>
Forest industry left out of Clean Energy FutureAs the Carbon Tax is passed through Parliament, the Australian Forest Products Association (AFPA) says the government’s Clean Energy Future could hurt domestic forest product processors and will do little to encourage participation by commercial forest growers producing both wood and carbon positive outcomes."Despite the industry being in the business of creating low emissions intensive materials and sustainably managing forests, the government has ignored the industry’s feedback in developing its climate policies," said AFPA Chief Executive Officer, David Pollard. "First, many AFPA members operate in a global marketplace and will face steep competition from producers in countries with no carbon tax. The rate of assistance for these trade-exposed manufacturers in the form of permit allocations will decay over time at an arbitrary rate of 1.3 per cent per annum. AFPA urged the government to link this assistance to the actions of competitor countries as they set carbon policies but this has been largely ignored,” said Dr Pollard. Manufacturers of solid and reconstituted wood products will receive no assistance at all, and will suffer a serious erosion of competitiveness from day one." "Secondly, it will be very difficult for any commercial plantation forestry operation to be recognised in the Carbon Farming Initiative (CFI) because the constraints placed on for-harvest plantation projects are far stricter than on any other activity." "Thirdly, the use of native forest wood waste to produce renewable energy will be banned with amendments to the Renewable Energy Target (RET) Scheme. This is extremely disappointing considering a number of projects in regional Australia are now in jeopardy and waste products from sustainably managed forest operations and processing unable to be utilised." "The only bright spark under the package is the provision of greater certainty and market access for ‘not for harvest’ reforestation carbon offset projects, which are likely to become a more important component of a diversified forestry industry into the future." "On the whole however, despite what most Australians would expect, the carbon positive forest industry has little to smile about with this week’s passing of the carbon tax legislation." Source: AFPA Next Generation biofuels project launched in QueenslandEnergy Parks Australia Pty is partnering with Aquaflow Bionomic Corporation to develop the infrastructure for energy parks to produce Next Generation biofuels from multi biomass sources. The first site has been identified on the Sunshine Coast in Queensland, while others are being researched for suitability.Aquaflow chair Barrie Leay says wild micro algae, wood waste, bagasse and other green municipal waste can now all be converted to the next generation of biofuels, including bio-petrol, bio-diesel and jet fuel. He says the unique chemical qualities of algae can be maximised within a mix of other biomass streams. More >> U.S. Biofuel production increase - fact or not?A recent study, released on 11 October, "Biofuel Markets and Technologies" released by Pike Research states that the global biofuel market will double within the next decade to $183.3 billion from its current level of $82.7 billion, with ethanol production accounting for $78 billion of future worldwide biofuel production, while predicting that biodiesel production will reach $25.5 billion. Perhaps not surprisingly, Pike Research predicts that the US will become the world's leading biofuel producer, accounting for 71 percent of alternative fuel by 2021. More >>
Tree could be the world's largest iPhone dock
While you might be tempted to think the Wall of Sound is one of the biggest music player docks you've ever seen, it doesn't quite live up to the huge proportional potential of the iTree iPhone and iPod docking station from Austrian design house KMKG STUDIO. The dock is carved from a simple tree trunk, its rear-mounted speakers are pointed towards a wall to reflect the audio and the wood serves to resonate the sound in a similar fashion to a piano or violin. To check out the full story – and images – click here. Source: Gizmag Jobs
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Paddy is passing by Mick's hay shed one day when through a gap in the door he sees Mick doing a slow and sensual striptease in front of an old red Massey Ferguson. And on that note, have a great weekend. Cheers. Brand PartnersOur Partners & Sponsors Friday Offcuts is made possible through the generous support of the following companies.
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