IN THE NEWS

Graanul Receives Big Apollo Transfusion

Apollo Global Management, Inc., through funds managed by its affiliates, is acquiring a majority stake in Graanul Invest, the Estonia-based largest producer of wood pellets in Europe and one of the largest producers globally.

Since its inception in 2003, Graanul has been pioneering some of the most advanced processes and technologies in the biomass and bio energy industry and providing a critical baseload renewable energy resource. The company operates 12 wood pellet production plants located in the Baltics and U.S. The company also operates six combined heat and power plants in Estonia and Latvia and is one of the largest producers of renewable energy in the Baltic region, having generated more than 17% of all renewable bioelectricity in Estonia in 2020. The CHP plants power the company’s manufacturing operations.

“In Apollo we will have a sophisticated strategic investor who is not only intimately familiar with our business, but also understands the complexities and the unique value opportunities present in the bioenergy space today,” comments Raul Kirjanen, Chairman and CEO of Graanul. “Our operations and activities have always been—and will continue to be—designed for and dedicated to creating a globally sustainable and renewable energy system to replace fossil fuel emissions. Our team and people, as well as our corporate structure and operations, are a highly valued foundation to the exciting growth ahead with Apollo. New capital and global connectivity will provide new international opportunities for Graanul and its employees as we build on the company’s many achievements together.”

“With the accelerating energy transition in Europe and globally, baseload renewable energy sources such as biomass are a critical and enabling piece of the puzzle by providing dispatchable electricity and heat to must-run facilities,” says Apollo principal Brad Fierstein. “Raul and the Graanul team are best-in-class in this industry and have done an excellent job scaling and positioning the business to play a critical role supporting this energy transition as a reliable supplier to its customers, with proven sustainability.”

Geoffrey Strong, Senior Partner and Co-Head of Natural Resources and Infrastructure at Apollo, adds, “We believe Graanul is a unique energy transition platform from which to build around the once-in-a-generation shift in the European energy mix. We look forward to building on that success together with Raul and the team and continuing to grow the business organically and through attractive development opportunities in the biomass market.”

The transaction is expected to close later in 2021.

Apollo is a high-growth, global alternative asset manager with a focus on three business strategies: yield, hybrid and opportunistic. As of March 31, 2021, Apollo had approximately $461 billion of assets under management.

Graanul Invest employs more than 500 across its pellets plants and combined heat and power. It is currently upgrading the former Texas Pellets (formerly German Pellets) industrial wood pellet plant in Woodville, Texas.

SPI, Seneca Deal Includes Power Plant

Sierra Pacific Industries (SPI) is acquiring Oregon-based Seneca, combining two family-owned forest products businesses with strong historical roots on the West Coast.

Founded in 1953, Seneca operates a 175,000 acre sustainably managed tree farm, two sawmill sites, and a biomass fueled power plant in Oregon. SPI is a leading lumber producer that manages more than 2.1 million acres of timberland in California and Washington and also operates multiple cogeneration plants, which produce power used at the mills and that is sold to local public utilities and service pro viders.

The acquisition includes Seneca Sustainable Energy, which operates a 19.8 MW cogeneration facility just north of Eugene and sits adjacent to the Seneca sawmill. The site is strategically located with an ideal connection to the local power grid.

The woody biomass used to fuel the cogeneration facility comes from Seneca Sawmill’s bark, sawdust and shavings, as well as forest biomass “logging residuals or slash” from Seneca Jones Timber Co.’s sustainably managed tree farm, located nearby in Oregon’s Coast and Cascade Ranges.

One hundred percent of the renewable electricity generated by Seneca Sustainable Energy is sold to the Eugene Water and Electric

Board (EWEB). The power generated from this facility provides the annual energy needs of more than 13,000 family homes.

“Aaron Jones (Seneca) and Red Emmerson (SPI) are both icons of the wood products industry. They were also friends and had a deep mutual respect for each other as industry leaders,” says Seneca CEO Todd Payne in reference to the founders of the respective com panies. “This proposed transfer makes so much sense given the companies provide complementary products, and have shared family values and company culture.”

Both SPI and Seneca have a strong focus on sustainable tree

8 Wood Bioenergy / October 2021

Seneca’s 19.8 MW cogeneration facility near Eugene

management, also managing their timberland for wildlife, healthy watersheds and soils, and world-class recreation.

The companies also share a company culture that recognizes employees as their most valuable asset, values the support of the communities they operate in and serve, and gives back by being dedicated to education and administering scholarship programs.

Seneca has been co-owned by Becky Jones, Kathy Jones-McCann and Jody Jones.

Huber Acquires Consulting Firm

Huber Resources Corp. (HRC) has announced the acquisition of certain assets of Sewall Forestry & Natural Resource Consulting LLC (SFNR), which will grow and expand its capabilities globally in timberland appraisals, forest inventory management and forest modeling.

J.M. Huber Corp., parent company of HRC, has a history of timberland management dating back to the 1940s. Today, HRC continues the company’s legacy of for estry management through the stewardship of more than 800,000 acres for clients throughout the U.S. HRC’s full suite of forestry services include forest management plans, sustainable harvest modeling, road building and maintenance, full service administrative and accounting services and timber harvesting and marketing.

The SFNR business was formerly owned by James W. Sewall Co., a 140-year-old Maine-based consulting firm providing renewable energy site design, environmental permitting, transportation engineering, geospatial data analysis, and natural resource economic analysis across industry sectors which include clean energy, utility and property development clients.

SFNR utilizes in-house biometricians to provide forest growth and harvest modeling services to aid clients with critical business decisions for current or future operations, land purchase due diligence and inventory analysis. Additionally, the company provides a variety of consulting services to its forestry clients including litigation support and market pricing and cost analysis.

MSU Model Depicts Market Variables

An assistant research professor in Mississippi State’s Dept. of Forestry, Starkville, is leading a collaborative team in creating a precision tool to help increase profits for timber producers and wood-mill consumers.

Bruno da Silva, also a scientist in the university’s Forest and

October 2021 / Wood Bioenergy 9

Wild life Research Center, is studying timber supply modeling as part of a $100,000 grant awarded by International Paper. The team is working on a model to aid timber producers in better understanding the impact of market variables and streamlining decision making for forest sector stakeholders.

“Our forestry market has become increasingly fragmented over the years,” da Silva says. “What we’re seeing is less room for error and the need for a more precise approach. Our goal is to make a model that can show how different variables like distance to the nearest mill, harvest costs and management practices will affect the timber supply, so forest market players can make informed decisions.”

The team aims to design a model that is user-friendly and freely available. Once the finishing touches are made to the model’s programming, the app will be available for download in QGIS, or open source GIS software, as well as in python.

“The model functions through mass amounts of regional data, both past and present, to predict future trends in the timber supply. Its output is dynamic and inherently linked to the needs of its user,” da Silva explains.

Shaun Tanger, assistant professor at MSU’s Coastal Research and Extension Center in Biloxi, is also on the project and looks forward to seeing how the model will help him as a forestry specialist.

“Part of my job with the MSU Extension Service is to make sure small forest landowners are able to keep a position in the market that remains sustainable and profitable. This model will show landowners how variables impact profitability based on their specific circumstances. This is precision timber production,” Tanger says.

The team is collaborating with several faculty from North Carolina State University including Frederick Cubbage, Robert Abt and Rajan Parajuli. Jesse Henderson with the U.S. Forest Service also is a collaborator.

Forest Services Names New Leadership

Agriculture Secretary Tom Vilsack announced that Randy Moore will serve as the 20th Chief of the U.S. Dept. of Agriculture’s (USDA) Forest Service. Moore will serve as the first African American to hold the role of Chief of the Forest Service.

Current Forest Service Chief Vicki Christiansen is retiring.

Moore has been serving as Regional Forester in the Pacific Southwest Region in California since 2007 where he has responsibility for 18 national forests, covering one-fifth of the state on 20 million acres. Additionally, he oversees state and private forestry programs in Hawaii and the U.S. affiliated Pacific Islands.

Previously Moore served as the Regional Forester for the Eastern Region headquartered in Milwaukee, Wis.

Moore earned a bachelor’s degree in plant and soil science from Southern University in Baton Rouge, La. l USDA Forest Service also named Angela Coleman as associate chief. Coleman, who has served as acting associate chief since January 2020, will be the Forest Service’s highest-ranking executive under incoming Chief Randy Moore.

A native of Phenix City, Ala., Coleman brings 30 years of experience with the Forest Service. She has served in numerous senior executive roles leading the agency’s 30,000 employees, including a permanent role as chief of staff of the Forest Service, which she held from 2015-2020.

Coleman began her career as a news reporter with the Columbus Ledger-Enquirer newspaper, Columbus, Ga. She is a summa cum laude graduate of Troy University. Coleman also served as a Senior Executive Fellow for Harvard University’s Kennedy School of Government.

10 Wood Bioenergy / October 2021

Land, Timber Division Shine For RoyOMartin

RoyOMartin’s land and timber operations reached a significant safety milestone: 14 years without an OSHA-recordable injury. Given the statistics surrounding logging and forestry injuries, and the vast amount of company-owned timberland managed by RoyOMartin foresters—approximately 550,000 acres—this accomplishment is especially noteworthy.

In a message to the entire organization, RoyOMartin Vice President of Land and Timber, Cade Young, says, “I never ceased to be amazed by the personal commitment to safety that each of the department’s team members exhibits every day. If you look at the number of hours spent in the woods, or the number of miles driven in a year’s time by this group, you begin to really appreciate what a statistical marvel this accomplishment really is. Each team member is a safety leader and actively participates in improving the safety culture of the department.”

The land and timber division’s achievement follows RoyOMar tin’s perseverance of its IBiZ (I Believe in Zero) safety program, which focuses on personal responsibility.

Hurst Sales Manager Charlie Coffee Dies

Charlie Emory Coffee, Jr., of Thomasville, Ga., solid fuel sales manager for Hurst boiler and well respected throughout the wood products industry, died August 3. He was 65.

Coffee worked for Hurst Boiler for 41 years. He was a member of Coolidge Baptist Church where he served as deacon and taught the men’s Sunday school class. He enjoyed golfing and sailing.

He would have been married to Connie Wilson Coffee for 47 years in August. Other survivors include three sons, Brandon, Seth and Jesse and their spouses, his mother, Marjorie, a nephew, Zac Wilson, and

numerous grandchildren, a greatgranddaughter, a brother and two sisters, his prize goldfish, Wilber V, and his loyal dog, Honey.

Jeff Hurst commented, “His shining personality was second to none, his wisdom and knowledge of all things never surprised me.”

Andrew Pitts Led Pitts Trailer Growth

Pitts Enterprises founder and former CEO, Andrew Pitts, Jr., who led the company’s tremendous growth in the log trailer manufacturing business based in his hometown of Pittsview, Ala., died July 16. He was 90.

Pitts grew up in Pittsview and attended Auburn University. He worked in his family’s businesses for several years, and formed East Alabama Trucks for hauling byproducts for sawmills in the area. He built his first logging trailer in 1976 and it turned out so well that the company soon found itself building a couple of trailers per month, and by 1981 the trailer business was producing 100 trailers annually and was soon up to 300 per year and expanding its dealer network, while bringing in Andrew’s son, Jeff, into the business.

Pitts will continue as a family business with Jeff, who has led the company as CEO since 2002. “My father never forgot his roots,” Pitts says. “He invested in people— from his family and friends to his employees and customers. He built this business on innovation, quality and value. He instilled those ideals in Pitts Enterprises, and they will live on.”

Martco Announces Corrigian “Two”

Martco L.L.C. (RoyOMartin) announced that its Texas subsidiary, Corrigan OSB, L.L.C., will invest $211 million and construct a standalone oriented strandboard (OSB) manufacturing facility near its current OSB plant located in Corrigan on U.S. Highway 287 between Lufkin and Livingston. Construction is scheduled to begin this year, with startup anticipated in 2023. The new facility is expected to significantly increase production capacity at Corrigan, while focusing on existing and new value-added OSB products.

RoyOMartin CEO Roy O. Martin III points to a population surge of more than 4 million residents in the state in the past decade, and more families and companies relocating to the Lone Star state. The increase in home prices and rising costs of building materials, appliances, and labor in the past year indicate a severe shortage of OSB supply, Martin notes. Corrigan OSB is stepping up to meet this increased demand

October 2021 / Wood Bioenergy 11

with the addition of the new facility. RoyOMartin started up the first Corrigan OSB plant in 2018, and also operates an OSB plant in Oak dale, La., which started up in 2007. The company also operates a plywood mill and timbers mill in Chopin, La.

Thinning Work Lowers Fire Impact

Racing through tinder-dry pine forests and scrub land northeast of Klamath Falls in south central Oregon, the Bootleg fire is one of the nation’s largest at more than 400,000 acres and was about 80% contained as this issue went to press with containment expected in October. Early evidence is showing that managed and thinned forests around the Sycan Marsh Reserve led the fire to drop out of the can opy and move to the ground as it burned from untreated areas and encountered thinned forest areas.

The 30,000 acre reserve was acquired by The Nature Conservancy in the 1980s and over the years the organization has worked with the local Klamath Native American tribe to thin areas around the marsh and introduce prescribed burns to mimic pre-settlement conditions. According to news reports, The Nature Conservancy officials say it’s still early and more research will need to be done, but reports are the fire moved “gently” along the ground and didn’t harm a research station in the reserve.

Similar effects have been noted in other fires, notably the Wallow Fire in Arizona in 2011 and last year’s North Complex Fire near Quincy, Calif. In both cases communities had thinned and treated areas surrounding small towns— and those areas weren’t as damaged when fires swept through their respective regions.

Search NA Announces New President/Owner

Search North America is pleas ed to announce that Richard Poin dexter will be succeeding Carl Jansen as the new President, Own er, and Senior Recruiter of Search North America.

Search North America is a search, recruiting and placement firm with a proven 39-year track record in the wood products industry, working with companies and individuals with their employment needs across the U.S. and Canada.

Carl Jansen, Search North America’s founder, will stay on with the company as a Senior Recruiter and focus his efforts on the Western U.S. and Western Canada.

Poindexter joined Search North America in 2020 after a 23-year career at Columbia Forest Products in multiple marketing and sales roles.

12 Wood Bioenergy / October 2021

For more information on Search North America, go to www.searchna.com or contact Richard at 336-4568657 or e-mail richardp@searchna.com.

Drax Hosts Educators In Environment Workshop

Run by Project Learning Tree (PLT), Drax Biomass sponsored a day of activities in Pineville, La. to help teachers with lesson plans and offer a variety of resources and fun activities to help young people learn about the environment around them and how to take care of it.

Workshop attendees participated in various games and activities including “Tree Factory,” which explains the life cycle of trees; “Birds and Bugs,” which teaches children about how insects camouflage themselves, and “Water Won ders,” which demonstrates how the water cycle works.

After the event, Girl Scout Troop Leader Jessica Hall said, “One of our main focuses in the Girl Scouts is getting our troops out into nature and teaching them about the environment. The workshop has given me great, practical activities that I can use with my girls as well as sharing with the 20 other troops across Bossier Parish. I can’t wait to try the ‘Birds and Bugs’ game on our upcoming hiking day where we visit a local wildlife refuge.”

Drax Biomass sponsored the workshop at the Alexandria Forestry Center in Pineville, including supplying 100 copies of a lesson and activity guidebook for teachers and several activity kits that each participant got to take with them.

The activities can be done in a classroom or outdoors and can be easily adapted to suit kindergarten through grade 8. The activities can be integrated into lesson plans for all subject areas, in particular science, math, reading, writing and social studies and can help to improve critical thinking and problemsolving abilities.

Project Learning Tree Louisiana State Coordinator and employee of the USDA Forest Service, Stacy Blomquist, adds, “We’re so grateful to Drax for their support with the workshop. The day was a great success and everyone who attended said they were looking forward to incorporating the activities they’d learned into lesson plans.”

The workshop was attended by teachers and a diverse range of professionals who work with young people including members of organizations such as the Girl Scouts and 4-H.

Alexandra Senior High School teachers Yasmine Russ and Veronica Guillory

October 2021 / Wood Bioenergy 13