Forest Products Industry

Famed designer Pininfarina and the Morgan Motor Company teamed up to design a new open top vehicle the Midsummer. Created in recognition of the heyday of European barchetta designs, this is special – limited to just 50 examples. Source: Timberbiz Midsummer represents the shared vision of Morgan and Pininfarina, who have collaborated to reinterpret and celebrate the timeless Morgan silhouette. As a unique celebration of the coachbuilding heritage of both Morgan and Pininfarina, Midsummer exhibits the skill of Morgan’s craftspeople more than any previous model. Inspired by marine applications, the beautifully sculpted wooden structures surround the cabin and create a shoulder line. Hand formed using high-quality and durable teak, hundreds of individual layers of wood are delicately laminated together to complete each section. Selected with meticulous attention-to-detail, each layer of teak is no more than 0.6mm thick. Each vehicle will feature nine individually crafted teak sections, taking more than 30 hours to skilfully create, and utilising 83m2 of sustainably sourced teak. Most notable are the dashboard tops, which feature 126 layers of teak each, and the door top sections which feature 120 layers each. Using multiple layers as opposed to a single piece of wood, adds strength and durability, necessary for exposed elements. Morgan has been known in the past for using wood in its vehicles but namely in the chassis and vehicle frame but now it has taken that a step further in this design. All the Midsummer cars have already found buyers. The car’s first public showing is expected to be at the 2024 Goodwood Festival of Speed in July.

In recent years, Precision Forestry has emerged as a transformative approach, leveraging advanced technologies to collect and utilize data, to optimize forest management practices for sustainability, efficiency, and productivity. Source: Timberbiz This data-driven approach enables forest owners, including us as one of the largest private forest owners in the world, to make informed decisions at a fine scale, tailoring forest management actions to specific areas or even individual trees. Stora Enso’s Precision Forestry program uses modern tools and technology such as drones, satellites, laser scanning (lidar), and harvesting machines to collect detailed forest data for planning forestry operations and biodiversity actions. With this granular data, we can recognize tree species, tree height and diameter, and wood stock volume in the forest, as well as harvester location or forest damage caused by wind or insects. Artificial Intelligence (AI) is in the core of Precision Forestry. With AI, we can combine the multiple data layers in our digital Precision Forestry platform and create an accurate Digital Twin of Forest. This enables us and other forest owners to map, model and manage ecosystems precisely, and at the same time maximize the value of forest assets. There are five ways to enhance forest management with Precision Forestry. Optimized terrain routing for forest machines Precision Forestry and its terrain data allow us to optimize the routing for forest machines, and to find the most optimal wood storage locations along forest roadsides. When optimising routes, the key is not only to find the shortest route to minimize CO2 emissions, but also to consider biodiversity and how best to protect it. Early detection of forest damage With the help of data collected through satellites and drones, we can detect forest damages, such as spruce bark beetle exposure, much faster and more efficiently than the human eye. Bark beetle damage detection is in use in our own forest assets in Sweden. This service will be available also for private forest owners in Finland during this year. Efficient forest area mapping with drones and remote sensing When mapping large forest areas, forestry experts can use drone pictures on a computer instead of having to map the area on foot. This greatly improves efficiency, as fixed wing drones can scan even 1,000 hectares of forests per day. In Finland, Stora Enso is currently using drones to scan forests for tree and species mapping. This helps to detect potential retention trees already before harvesting, leading to better forest management planning. In Sweden, we are also testing drones to analyse the forest harvesting footprint after felling. Forest area mapping is efficient with drones and remote sensing Enriched biodiversity data for Finnish private forest owners By combining forest and biodiversity data from various sources, we can model and manage biodiversity and wood production side-by-side. This helps to ensure, that the forest management decisions we make today not only maximise the financial value for forest owners, but also have a positive impact on biodiversity. In 2024, the goal is to make biodiversity data available for Finnish forest owners in the companys’s digital forest management application eMetsä. In addition to the traditional forest data, the new biodiversity data will include, for example, information about mixed species stands that have two or tree species, and no single tree species makes up more than 65% of stand volume, and information about stands where over 50% of trees are broadleaved. Achieving our biodiversity targets requires high-quality, auditable forest data Stora Enso has developed a science-based framework to verify its net positive impact (NPI) on biodiversity. The framework enables forecasting of biodiversity impact, which allows operations to be adapted towards a net positive goal. To achieve its NPI targets and measure progress, the company needs a wide range of auditable biodiversity data. For example, in Sweden it is mapping standing deadwood and broadleaved trees, which are crucial for forest biodiversity. With satellite data, it can provide more precise information about the location of broadleaved trees within a forest stand, leading to better planning of protection zones and to the possibility to leave them where broadleaved trees are detected. Continuous platform and business development Precision Forestry represents a paradigm shift in forest management, leveraging technology to optimize productivity, conserve biodiversity, and mitigate environmental impacts. As an agile digital platform, Precision Forestry is constantly developed through several business projects. This requires close collaboration and data collected together with internal teams and external partners. As technology continues to advance, the potential for Precision Forestry to revolutionize the way we interact with and manage forests is boundless. It offers new business initiatives, and opportunities for innovation and stewardship in the face of global environmental challenges. “This innovative approach not only enhances the value of our forest assets but also ensures that we can achieve a balance between economic, social, and environmental goals for a sustainable future.”, concludes Jani Kaskinen, Vice President, Precision Forestry, Stora Enso.

As part of Business Finland’s Veturi funding for forest machine manufacturer Ponsse, Sitowise is working with Ponsse to explore the potential of artificial intelligence for smarter planning and optimization of logging. Source: Timberbiz The aim of the project is to explore the use of AI and remote sensing data, as well as other data sources such as harvester data, to produce intelligent map data and services and to increase our understanding of potential customer needs. The main target groups are organizations involved in logging and timber harvesting. “The project will explore possible ways to produce intelligent map layers to facilitate harvesting planning, such as data describing terrain conditions, harvestability and wood quality,” said Sanna Härkönen, Product Business Lead at Sitowise. Bitcomp Oy (now part of Sitowise Oy) currently has a strong position in the market for services to the Finnish forestry sector. “We have already developed an easily scalable, cloud-based computing platform that we can use for AI-based data production. This will also allow for the convenient distribution of global map data. On top of this technology, we can explore and develop new services and products,” said Härkönen. The aim of the project is to identify and formulate tools that could help facilitate the most important work steps for customers. “The aim is also to explore the potential benefits of such map layers and tools along the entire logging value chain. The tools could, for example, help machinery companies to better optimize the use of their equipment and improve the preservation of environmental and natural values during harvesting,” said Härkönen. The benefits are expected to reach down to the operator level, as intelligent data can reduce the cognitive load on operators and improve the quality of their work. “The project will also look at different optimization methods to help plan harvesting and identify ways to take into account different forest use objectives. It also aims to test smart data in practice with test users, so that solutions can be better tailored to the needs of customers and users,” said Härkönen. Ponsse has existing international networks and activities across a wide range of regions in Europe, North America and South America, which are also the focus of this project. Business Finland awarded Ponsse’s and Epec’s FORWARD’27 program with 10 million Euro in funding in a challenge competition for leading companies. In addition, Business Finland awarded 20 million Euro in funding to the ecosystem companies surrounding the programme. The total budget of the Sitowise project is around 1.2 million Euro and the project will run for two years.  

New Zealand’s consultation to update carbon auction price settings for its emissions trading scheme failed to provide certainty to the market, with the government’s option to lower the auction floor denting market confidence and pushing prices down. Source: S&P Global The consultation released on May 15 was part of an annual review of the price and volume settings for the quarterly auctions of New Zealand Units, under which the government must consider the advice of its national climate body, Climate Change Commission. The latest consultation will review the settings for 2025-2029 but the government cannot change settings for the next two years without citing specific circumstances. The consultation sought public response on whether the government should follow CCC advice to cut the auction volume of New Zealand Units for 2025 by more than half to 5.9 million from 12.6 million to align the ETS with the country’s national climate target. CCC said in March that the estimated surplus of NZUs had grown to 68 million units from 49 million units at the end of September 2023. “The internal modelling shows that the Commission’s proposed settings are more likely to be in strict accordance with meeting emissions budgets across the scenarios tested than current settings,” according to the consultation document released by the government. The government added that CCC’s proposed settings were likely to lead to higher NZU prices, providing greater incentives for emissions reductions and removals. It, however, sought feedback on whether there were any particular circumstances that would allow the government to justify lowering the auction volumes for 2025-2026. “I think it shows that the government is largely supportive of the auction volume cuts that the CCC has proposed,” a carbon trader said, adding however that the consultation also raised uncertainty around the auction price floor. The auction floor price is the minimum price at which NZUs can be sold and was set at NZ$64/mtCO2e for 2024. While the CCC had recommended keeping the price settings unchanged, the government also provided the option to lower the price settings for the auction floor and the cost containment reserve trigger price, without providing any figures. The CCR trigger price leads to additional units being released for sale to balance prices. “A lower price corridor could apply from 2025 if there are circumstances that enable changes to be made to the first two years of settings,” according to the consultation document. There was no option provided to increase the price floor, with the government saying that a higher floor would be above the spot price and could encourage speculation. Market sources said the option for lower price settings was seen as negative. The government also provided the option to increase the CCR volumes to reflect the potential reduction in surplus NZUs. The CCR trigger price leads to additional units being released for sale to balance prices. The government has previously said that CCC recommendations cannot be taken as final word but the previous high court ruling will prevent them from rejecting the climate body’s advice outright, a second carbon trader said. A High Court ruling in July 2023 ordered the previous Labor government to reconsider its lower ETS settings after a climate group sought a judicial review of the government’s December 2022 decision to not follow the CCC advice. The consultation will close on June 14, with final settings expected to be released by the end of September. The NZU trading volumes jumped on a daily basis on May 15, with a total of 75,000 mt traded through the day compared with just 15,000 mt the day before. NZU price traded up earlier in the day to NZ$56/mtCO2e ($33.94/mtCO2e), before drifting down to NZ$54.25/mtCO2e. Platts, part of S&P Global Commodity Insights, assessed the price of NZUs at NZ$54.25/mtCO2e on May 15, down 25 cents on the session. The market was oversupplied, and traders were protecting themselves by taking quite destructive actions, the second carbon trader said. The pricing was at the marginal level of supporting forestry and seemed generous considering the incoming future supply, the trader added.  

The effects of bushfires, floods, storms and other extreme weather events are becoming increasingly impactful on our communities, environment, and economy in Australia and, in turn, the need for resilient housing is growing. Source: Timberbiz The Insurance Council of Australia (ICA) reports that Australians are five times more likely to be displaced by a natural disaster than someone living in Europe and the costs associated with those events are significantly growing. The ICA also reports that the costs directly related to repairing or replacing homes and their contents after natural catastrophes have increased significantly over the past 15 years, and indirect costs are even bigger. The result is that many properties are becoming uninsurable and local Councils are encountering additional planning problems. Improving the climate resilience of new and existing homes would contribute to reducing these costs, allow for sustainable market growth opportunities, and facilitate improvements in the housing supply crisis. This new WoodSolutions guide, the Resilient Timber Homes Guide, details how sustainable timber homes can be designed and built with a Code+ approach to resilience. It indicates that opting for a resilient timber home presents a proactive solution to mitigating climate challenges while providing safety and improved wellbeing to building occupants. The guide also details the increased value for the investors and the whole community through resilient design. The growing emphasis on minimizing the carbon footprint of buildings presents another compelling reason for the Australian insurance and real estate sectors to actively engage in mitigating disaster risks which will position them as providers of safety, wellness and future-proof value to their clients, and the community. Engineered Wood Products are now widely utilised for their sustainable properties that are essential for meeting decarbonization goals. Consequently, there is a demand for these products and the structures employing them to exhibit resilience and durability that surpasses minimum code requirements. This new design guide on resilient timber homes can be used by the building and construction industry in conjunction with other WoodSolutions resources that educate on specific performances such as durability, thermal efficiency, fire, and more. This library of free resources supports climate-conscious planning decisions and smarter real estate development options through resilient design and building initiatives. This ground-breaking guide is a result of the Resilient Timber Homes program, launched by FWPA, in partnership with industry leaders and in collaboration with outstanding experts in this field. Its primary aim is to foster innovation in construction solutions via a recently completed design competition, the implementation of this comprehensive design guide, and the facilitation of targeted research and development initiatives. Resilient Timber Homes are poised to create substantial growth in the demand for innovative, sustainable, and cost-effective wood-based products and services over the coming years. This heightened demand will result in a stronger and more resilient supply chain—an advantageous outcome for both the environment and the broader building sector. Download the free guide here.

Tasmania’s largest private forest and land asset manager Forico will welcome a new Chief Financial Officer (CFO), Chris Oddie, from 24 June 2024. Source: Timberbiz Mr Oddie is a Chartered Accountant with more than 30 years’ experience in senior executive finance, commercial and operational management, gained across the agribusiness, construction, community services, financial services and logistics sectors both in Australia and overseas. Most recently he has occupied CFO and Company Secretary roles with Regional Livestock Exchanges, Li-Ve Tasmania, and Spectran Group, where he shaped business growth and successfully managed company transformation and change. “It was vital for Forico to secure a talented and capable individual who can add value in a dynamic business environment and Chris emerged as a clear stand-out,” said Forico CEO Evangelista Albertini. “Chris’s wealth of experience in CFO and executive roles positions him optimally to continue Forico’s work in placing financial management front and centre in sustainable decision making and maintaining the leadership role we have forged in this. “The approach of mandatory nature-based reporting sees increasing demands placed on finance and accounting capacity in businesses worldwide. Forico has carved a leadership niche in this new reporting landscape, and we have no doubt Chris will enable us to achieve our vision of forestry as the industry at the centre of a sustainable future.”

Building enough homes for all Australians is again at the centre of Federal policy decisions, with the Opposition’s Budget reply acknowledging the critical importance of addressing housing supply challenges, said Master Builders Australia CEO Denita Wawn. Source: Timberbiz “To solve the housing crisis, we need to see action beyond the housing portfolio with skills, migration, infrastructure, industrial relations, defence, social services, and industry portfolios pulling in the same direction. “Builders applaud the Opposition for calling out the damaging impacts of recent industrial relations reforms and commitment to remove this complex legislation and provide more certainty for business. “The Government’s recent industrial relations legislation ultimately make home building more expensive and blow out supporting infrastructure projects. “Recent modelling found under a best-case scenario, new industrial relations laws will see at least 15,000 fewer homes and almost 8,000 fewer jobs and cost the economy over $113 billion over the next five years. “Master Builders welcomes the Opposition’s decision to extend and expand the instant asset write-off for small business to $30,000, $10,000 more than the Government’s policy but more support is needed. “The viability of the building and construction industry remains key to bringing down inflation and boosting economic growth. “We must reduce the time it takes to build and minimise increasing construction cost blowouts in infrastructure, commercial and housing projects. These costs are ultimately passed on to consumers or taxpayers. “We know higher than anticipated migration levels have exacerbated an already constrained housing system, but the Opposition has rightfully not shut the door on the very tradies we need to build more homes. “The industry needs half a million new workers over the next three to five years which we cannot fill domestically alone – skilled migration represents a vital piece of the puzzle. “Both major parties have this week committed to ensuring Australia is an attractive destination for skilled migrant tradies. “With considerable numbers of older workers retiring from the construction industry each week, the pressure to replace their decades of experience and upskilling is considerable. “We welcome incentives to encourage older workers back into the workforce without reducing pension payments. “As we gear up for the Federal Election, both major parties are now on notice to produce a plan to ensure that all policy levers are being pulled in the same direction to strengthen the industry and boost housing supply,” Ms Wawn said.  

Australia’s forest products sector has welcomed the Federal Government’s ongoing support in the 2024-25 Federal Budget. Source: Timberbiz “The Budget builds on the Australian Government’s investment since 2022 to boost timber and wood fibre supply, enhance manufacturing productivity, develop strategic industry policy planning and fund training and skills,” Australian Forest Products Association CEO Diana Hallam said. “The $3.4 million provided over four years in this Budget for development of a National Timber Fibre Strategy and a review of the 1992 National Forest Policy Statement ($1.8 million) with the states and territories will help industry plan for the long-term. Additional measures announced in biosecurity and firefighting, including aerial capabilities, are also acknowledged and appreciated.” The AFPA also welcomed the $48 million over four years to implement further reforms to the Australian Carbon Credit Unit scheme, including the establishment of a Carbon Abatement Integrity Committee to oversee the new proponent led method development. The AFPA has developed a new proponent-led method to encourage timber in the built environment which can reduce embodied emissions in midrise building by around 50%. Acknowledging the Government’s $11 billion investment in housing, Ms Hallam said the AFPA would focus its attention on working with the Government to promote and integrate Australian forest products into its housing, climate and economic agendas. “You cannot build housing without materials and timber is a key climate friendly material that will help Australia meet its net-zero by 2050 goals that were recommitted to in this Budget,” she said. “As outlined in AFPA’s How Timber Can Help Solve Australia’s Housing Crisis launched in conjunction with Master Builders Australia this week, our industry has the timber ready to go right now to build the homes of tomorrow, 50,000 more homes annually in fact. “It’s therefore disappointing no immediate measures to harness this opportunity have been included in the Budget, especially in light of plans for 40,000 new social and affordable homes under the Housing Australia Future Fund and Housing Accord. “While there is also a big Budget focus on new technologies and the Future Made in Australia Strategy, there is little evidence that the Government has considered the increased role Australia’s forest products sector can play. Many countries have identified green business opportunities as they progress towards net-zero that involve forestry industries, Australia should be no different. “The forest, wood and paper products sector is Australia’s sixth largest manufacturing industry and forestry plays a unique role in climate change mitigation. Timber is an economic carbon capture and storage technology which works at scale. Not only do our trees sequester carbon whilst growing, but once harvested, the timber is a permanent, or long lived, store of carbon in the built environment. And, in Australia, every tree harvested in forestry is replaced with at least another tree,” Ms Hallam said. “The power of embodied carbon in timber and wood as a climate solution that will help Australia meet its emission reduction targets is a proven technology that can help Australia transition to net-zero.”