WoodWeek 14 March 2018
It is expected to be operational by mid-2019, and produce more than 50,000 cubic metres of cross-laminated timber within two years. The plans are conditional on draft building standards requiring full chemical penetration of cross-laminated timber being confirmed by MBIE.
Cabinet has agreed to changes to the treatment of overseas investments in forestry rights that will see them brought into the Overseas Investment Act screening regime. At the same time a new streamlined approval path will be opened for overseas investors buying forestry rights that will make it easier to gain approval.
Finally this week, Innovatek has successfully expanded its long-running forestry LiDAR conference series to include Canada. The popular conference series has long been drawing large audiences of professional foresters in both Australia and New Zealand. Last week the team took the conference to Canada with delegates coming from Canada, Chile, Europe and USA.
This week we have for you:
New CLT plant announced by Red StagRed Stag Group, which runs the largest sawmill in the Southern Hemisphere, plans to invest more than $20 million developing a large-scale cross-laminated timber plant at its wood processing site in Rotorua.
The plant is expected to be operational by mid-2019, and produce more than 50,000 cubic metres of cross-laminated timber within two years, Red Stag Group chief executive Marty Verry said. The company's plans are conditional on draft building standards requiring full chemical penetration of cross-laminated timber being confirmed by the Ministry of Business, Innovation and Employment.
Red Stag owns the Waipa mill which it bought out of receivership following the collapse of the Central North Island Forest Partnership. It invested more than $100 million developing New Zealand’s first ‘super mill’ on the site, so-called because it can process 1 million tonnes of logs a year, and is now expanding its operations to production of cross- laminated timber, where it sees demand increasing in line with the government's KiwiBuild programme which aims to deliver 100,000 affordable houses over the next 10 years.
New Zealand wood manufacturers see big potential opportunities for their industry in the future from engineered wood products, such as cross-laminated timber, which are becoming increasingly popular for multi-storey buildings around the world. They are also gaining traction in New Zealand after recent earthquakes showed wooden buildings outperformed concrete and steel structures. Property developer Bob Jones is erecting the country's tallest wooden office building, at 12 storeys, in central Wellington using the product, while Sumitomo plans to build an 80-story building in Tokyo.
“Cross Laminated Timber (CLT) is a product on a rapid growth curve globally”, Verry said. “It is one of the ‘massive timber’ group of products, along with others such as glulam, that is opening up the mid- and high- rise building market to wood.”
Verry said there was strong demand in New Zealand for the wood and praised Nelson company XLam for developing the cross-laminated timber market on its own to date.
"We see the need now for a scale North Island producer so that between us we take the product mainstream," Verry said. “Our vision is that wood will be the norm in mid-rise buildings by 2030, and I can see the KiwiBuild target being achievable in the early 2020s as a result."
The new cross-laminated timber will be produced by the company's Red Stag Wood Solutions division run by managing director Jason Cordes and is expected to generate 40 regional jobs, mostly in Rotorua.
Cordes said the timber has the potential to save thousands of dollars on the cost of housing and mid-rise buildings by reducing material cost, on-site labour costs and construction time, and performs well in earthquakes, where its light weight and ability to flex means it performs better than heavy rigid buildings from concrete and steel, with a very predictable and high fire rating.
“We are also going to be able to help hit Kiwibuild, state housing and private sector targets with this plant”, Cordes said. “We will launch in 2019 and expect to be producing in excess of 50,000m3 of CLT within 2 years. That is the equivalent of around 2,000 housing units.”
A modular approach to the factory means more capacity can be bought on as required, he said. The company claims it can reduce construction times by 30 percent.
Forestry Minister Shane Jones welcomed Red Stag's investment plans, noting his "obvious enthusiasm" for the government's 'wood first' policy.
"I will be meeting with fellow ministers shortly to discuss how this policy can have greater practical effect,” Jones said.
The government expects to spend $2 billion over the next three years to kick off the KiwiBuild programme targeting 100,000 affordable houses being built over the next decade. Under the programme, the government will buy private developments off the plans and build new houses over the next three years, after which the $2 billion of capital will be recycled as dwellings are sold and reinvested.
Source: BusinessDesk via Scoop News
CLT plant: Additional coverageA new large-scale timber processing plant to be built in Rotorua creating 40 jobs - Red Stag Wood Solutions announced today it will build a $20 million-plus Cross Laminated Timber plant at its 95ha wood processing site in Waipa.
Group chief executive Marty Verry said it was a proud moment for Red Stag and Rotorua, and anchored the region as the wood processing capital of New Zealand.
"Cross laminated Timber (CLT) is a product on a rapid growth curve globally," Verry said.
"It is one of the 'massive timber' group of products, along with others such as glulam, that is opening up the mid- and high-rise building market to wood.
"In New Zealand there is strong demand, and praise needs to be given to XLam in Nelson for the leadership it has shown in developing the CLT market alone to date. We see the need now for a scale North Island producer so that between us we take the product mainstream."
Verry said the company's vision was that wood would be the norm in mid-rise buildings by 2030.
"I can see the KiwiBuild target being achievable in the early 2020s as a result."
Verry said the building would be open to the public and educational viewing - "a bit of a tourist attraction. Being across the road from the new mountain biking hub we can tie in the promotion for this style of construction."
"There's going to be a lot of future investment in forestry in Rotorua."
The CLT will be produced by the group's Red Stag Wood Solutions division run by managing director Jason Cordes.
Source: NZ Herald
See below for further news coverage of this announcement.
Red Stag Wood Solutions will build the plant at its 95 hectare wood processing site and said it saw the investment as a logical next step in the trend towards faster construction and tall timber buildings.
Source: Stuff News
Forestry OIA changes coming inForestry registration rights to be brought into Overseas Investment screening regime - Cabinet has agreed to changes to the treatment of overseas investments in forestry rights that will see them brought into the Overseas Investment Act screening regime.
At the same time a new streamlined approval path will be opened for overseas investors buying forestry rights that will make it easier to gain approval.
Associate Finance Minister David Parker said that in recognition of the importance of quality overseas investment in forestry, this new streamlined approval path will also be available for investments in leasehold and freehold forestry land, which are already screened.
“It is important to note that Maori hold a large percentage of forestry interests in New Zealand. It is not anticipated that this change will prejudice interests that Iwi have secured through the settlement process or fundamentally change the rights and interests of Maori in relation to their lands.” Mr Parker says.
Mr Parker said the change needed to be made before the Comprehensive and Progressive Agreement for Trans Pacific Partnership (CPTPP) came into force. Mr Parker heads to Chile later this week to sign the CPTPP.
“Making this change now will preserve policy options for future governments in relation to forests,” Mr Parker says.
“Not making this change would mean future governments could not screen overseas purchases of our forests because there is little difference in effect between a long term lease and a long term forestry registration right. Both confer effective control of the forest and land.”
Overseas investors will be able to purchase up to 1,000 hectares of forestry rights per annum, or any forestry right of less than three years duration, without OIA approval.
A standing consent system will also be developed, so quality forestry investors can make purchases of forestry land and rights without needing to seek prior approval of each individual transaction.
The counterfactual test, which has complicated forest purchases, is removed. Any existing commitments to provide logs to domestic customers are maintained.
Ministers are finalising the details of the proposal and it will then be referred to Select Committee. There will be a short period for public consideration.
EPA: Feedback on possible new fumigantThe Environmental Protection Agency (EPA) in New Zealand is seeking submissions on a possible new fumigant for logs and timber as an alternative to methyl bromide.
Czech-based firm Draslovka, has applied to the Environmental Protection Authority seeking an approval to import ethanedinitrile for release in New Zealand.
According to 2015 data, New Zealand is the world’s fifth-highest user of methyl bromide. The Ministry for Primary Industries estimates 90 per cent of this use relates to disinfesting export logs and timber.
Following a reassessment in 2010 the Environmental Protection Authority announced that by 2020 methyl bromide fumigations for logs must use recapture technology to reduce the amount discharged into the atmosphere.
Click here to: • View application details and information (https://www.epa.govt.nz/database- search/hsno-application-register/view/APP202804?accordion- anchor=Application%20documents )
• Make a submission (https://www.epa.govt.nz/public-consultations/open- consultations/new-fumigant-for-logs-and-timber/ )
Public submissions on this application close at 5pm, Thursday 12 April 2018.
For further information contact firstname.lastname@example.org
What we do: The EPA sets the rules for use of hazardous substances under the Hazardous Substances and New Organisms Act 1996 by assessing the environmental and economic risks and benefits to New Zealanders and the environment.
ForestTECHX series welcomed in CanadaInnovatek has successfully expanded it's long-running forestry LiDAR conference series to include Canada. The popular conference series has long been drawing large audiences of professional foresters in both Australia and New Zealand. Last week the team took the conference to Canada with delegates coming from Canada, Chile, Europe and USA.
The latest forest mapping and harvest planning technologies were the topic of the day at ForestTECHX in Vancouver Wednesday. The sold out event was packed full of information on the pace of change and how satellite, LiDAR and photogrammetric imagery is changing how we measure and manage our forests. As well as how automated measuring and monitoring systems in harvesters have been proven to lift log grades and outturn. The conference was organised by long-time tech transfer specialists, Innovatek Limited from New Zealand in partnership with Canada’s Logging & Sawmilling Journal.
A few highlights from the conference are in the attached PDF
Mount Gambier to get forest research facilityForestry research hub launched in Mount Gambier - In South Australia, Mount Gambier’s status as a national leader in forestry innovation has been confirmed with the recent launch of a ground-breaking research hub. The A$4 million Mount Gambier Institutes – to be hosted on the UniSA campus – is one of two unveiled in Australia to drive research in the industry.
Forest Owners comment on Zero Carbon ActZero Carbon Act solution in planting more trees - The Forest Owners Association says the Parliamentary Commissioner for the Environment, Simon Upton, should be listened to when he says words need to be turned into deeds to achieve New Zealand’s climate change mitigation goals.
Simon Upton says New Zealand should emulate Britain and enact a Zero Carbon Act because New Zealand has to catch-up on climate change.
Forest Owners Association President Peter Clark says the UK Zero Carbon Act is a good model to adopt for New Zealand conditions.
“Simon Upton has provided some timely advice as the government moves on its pre- election commitment to get serious about reducing domestic greenhouse gas emissions.”
“Plantation forestry already plays a major role in locking up atmospheric carbon. Simon Upton’s predecessor, Jan Wright, produced a report on biological greenhouse gas emissions and agriculture in October 2016. Her message was clear – forests can offset these emissions from livestock on a scale no other current technology can manage.”
“Forestry Minister Shane Jones recently acknowledged the huge impact that Jan Wright’s report had on his thinking in committing to a plan to see a billion trees planted in New Zealand in ten years,” Peter Clark says.
“With or without an Act of parliament to independently control the policy settings to reduce our net greenhouse gas emissions, plantation forestry will stand to play a vital role in assisting New Zealand agriculture meet climate change obligations, without destroying the base of that agriculture industry as other solutions might do.”
Peter Clark says he accepts Simon Upton’s qualification that forest sinks do not provide a permanent solution for reducing carbon emissions.
“However, use of wood in biofuels to replace fossil fuels and wood in construction to replace more energy intensive steel and concrete will provide lasting benefits. In an almost literal sense trees give us breathing space until the less emissions intensive technologies and land use practices are adopted. Over the past decade New Zealand should have been planting more trees and growing the national forest estate. That was a missed opportunity.”
“If we get Simon Upton’s recommended Act then that might give governments the focus to look after both short-term and long-term climate change policy and actions. This will provide the policy stability that all New Zealand business need to make investment decisions.”
Peter Clark did however sound a note of warning on planting trees to lock up carbon.
“Not all trees are created equal, nor grow equally. Plantation pine trees will have stored about 900 tonnes of carbon dioxide per hectare at maturity, at about 28 years. Harvesting and then replanting will maintain an average of 600 tonnes of carbon dioxide lock-up per hectare.”
“In contrast, a regenerating podocarp forest, such as rimu or totara, will lock-up not much more than 300 tonnes of carbon dioxide within their first fifty years. By all means encourage planting native trees, but people need to be aware that if your goal is carbon lock-up, fast growing exotics will lock up much more carbon per hectare than native trees, at least within the 2030 timeframe that is the immediate challenge under the Paris Agreement.”
SCION study points to green fuelsStudy proves New Zealand could forge a green transport fuels future - New Zealand could build a renewable low-carbon transport fuels industry - but only if the nation decides to act.
A report by Crown Research Institute Scion outlines how the country could grow, process feedstock crops into green fuels particularly aimed at the heavy transport, shipping and aviation industries.
“We initiated our own study to inform and stimulate debate on the large-scale production and use of liquid biofuels in New Zealand,” says Paul Bennett, Scion Science Leader Clean Technologies.
“Our aim is to provide robust data, insights and a roadmap for our country to significantly reduce greenhouse gas emissions and improve our energy security.”
Scion undertook extensive stakeholder discussions, and modified a computer model (Bioenergy Value Chain Model (developed by the Energy Technologies Institute, UK) to create scenarios of what crops and processing facilities would be needed to produce different quantities of transport fuel sustainability.
This modelling of fossil fuel replacement with biofuel equivalents ranged from 5% to 50% substitution.
With combustion of liquid fossil fuels in 2015 representing about 23% of New Zealand’s domestic greenhouse gas emissions, biofuels could have a major impact on overall lowering of carbon emissions.
The modelling tool is available for more quantitative scenarios, based on what Scion hopes is an informed deliberation, planned strategy and long-term implementation to manufacture green fuels within New Zealand.
The study findings, presented in the New Zealand Biofuels Roadmap Summary Report, shows drop-in fuels from non-food feedstocks, particularly forestry grown on non- arable land, is the most attractive option.
This form of biofuel production would also provide strong regional development and employment growth in regions such as Northland, East Coast and the central North Island.
“However, both our modelling and stakeholder discussions are explicitly clear that market forces alone will not be sufficient to kick start large-scale biofuel production,” says Paul Bennett.
“If New Zealand can agree on the future role and scale biofuels should play in decarbonising New Zealand transport, then we can develop a nationally coordinated implementation plan, aligned with stakeholders. Part of that internal agreement needs to be getting the public on-board as key beneficiaries of a sustainable liquid transport fuels approach.”
Paul Bennett says there are five main benefits from New Zealand shifting to a biofuels future:
• Reduce our greenhouse gas emissions
• Meet New Zealand’s international commitments to the Paris Agreement and our Net Zero target by 2050
• Rejuvenate regional economic and employment growth
• Gain energy independence from oil imports, and
• Maintain access to international markets for our goods and services.
Scion’s modelling shows that by growing longer-term crops, such as energy forests, New Zealand could build a biofuelled future.
The quantitative scenario modelling clearly shows tens of thousands of hectares of purpose-grown feedstock crops and billions of dollars of capital investment in processing plant construction and production would be needed to make an ideal a reality.
Scion is the lead CRI for research into bioenergy production for New Zealand, and CEO Dr Julian Elder says the study was undertaken to investigate what liquid biofuel options are best suited to New Zealand.
“We believe this study is a great starting point for an open and fact-based discussion around the New Zealand biofuels opportunities. We recognise that the information reported here is not an exhaustive study of all elements of a new biofuels industry, but hope this study will inform and catalyse such a debate.”
The Biofuels Roadmap is a considered and thorough piece of work which shows why and how New Zealand can transition to a low-carbon transport fuel future says Z Energy Chief Executive Mike Bennetts.
“All the pieces required for our country to transition aren’t crystal clear, but this study shows we have enough of a biofuels four-lane highway for us to start driving down,” he says.
“We may have to swap lanes somewhere, but to get to that level of precision now is impractical. We should use this roadmap as a call to action. How many more reports do we need to bring a closed-loop domestic biofuel production system into being that doesn’t adversely affect food supply chains?”
“Naturally, it wouldn’t be easy, nor quick to develop a green, renewable liquid transport fuels industry,” says Paul Bennett.
“But New Zealand has the capability and resources to do it sustainably given a public consensus, political will and biofuel stakeholder investment. Our modelling tool will be invaluable in scenario planning around what we want to be a national debate. We can forge a biofuel future and ensure multiple benefits for our children, our country and the world.”
The two-year study was supported by Scion’s Strategic Science Investment Fund from the Ministry of Business, Innovation and Employment.
Source: Scion Research
Timber Design Award entries now openEntries are now open for the prestigious 2018 NZ Wood-Resene Timber Design Awards, and Stage One entries will close at 5pm on Monday, 30 April 2018.
With a record number of entries received in 2017 and enquiries already coming in, NZ Wood’s Promotion Manager Debbie Fergie is anticipating another record-breaking event. “These awards showcase your company’s expertise and innovation,” she explains. “Entering will definitely help you stand out from your peers!”
These awards are the premier space for architects, engineers, builders, students and others to profile their recent projects using locally sourced timber and wood-based products. This year, the category of “multi-storey timber building design” has been added to reflect the growing acceptance of wood as a viable and cost effective construction material, whose speed of construction can help meet accommodation and office space demand across New Zealand in a timely manner.
The “Wood and Fibre Creativity Award” is a revised category celebrating original and innovative uses of wood fibre where the material has been used in unusual or unexpected ways.
“Eligible entries will be from projects completed between 1 March 2016 and 28 February 2018, and naturally projects must have significant timber content,” says Debbie Fergie. “Our nine categories retain the ‘Innovation in Student Design’ category, where students from top New Zealand Universities who work with wood will again have the chance to compete in a prestigious competition. Last year’s winners were all offered internships, so it’s a wonderful opportunity for the next generation of innovators in wood.”
Judges this year will be Pamela Bell, Prefab NZ; David Carradine, Timber Design Society; Tim Melville, NZ Institute of Architects; and Andrea Stocchero, Sustainable Architect, Scion.
Winners will be announced at a gala awards dinner at the Grand Millenium Hotel in Auckland on 20 September.
For a full list of entry criteria, and a timeline of entry submissions and judging announcements, call Debbie on +64 021-807 002, email her at email@example.com or go to http://www.nzwood.co.nz/news-and-events/nz-wood-resene-timber-design- awards- 2018/
ANZ Commodity Price IndexThe ANZ Commodity Price Index rose 2.8% m/m in February, kicking on from the 0.7% gain in January. The lift was fairly broad-based, although the dairy group provided the major thrust, with a 6% gain.
Despite some intra-month volatility, the NZD was broadly steady against major trading partners in the month (NZD TWI up 0.3% m/m), which saw the NZD commodity price index lift 2.4%. This is the first lift in NZD prices since November.
Buy and Sell
... and finally ... St Patrick's Day humour
Q: How does every Irish joke start?
Thanks for keeping up with the latest wood news with us!
We welcome comments and contributions on WoodWeek. For details on advertising for positions within the forest products industry or for products and services, either within the weekly newsletter or on this web page, please contact us.
Copyright 2004-2018 © Innovatek Ltd. All rights reserved