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FEBRUARY 2012 Issue 1, Vol. 21 • P: (03) 9888 4834 • F: (03) 9888 4840 • E: lmartin@forestsandtimber.com.au • www.timberbiz.com.au

Biomass loses gas in key Government report

By Steve Holland

T

HE FORESTRY Inquiry committee has released its report that attempts to map a secure future for the forestry industry, however, Tasmanian Liberal Senator Richard Colbeck said the report misses the mark when it comes to native forest biomass.

“They’ve brought the report down but the problem is their implementation of policy is in complete contradiction to the recommendations of the report.

“Fundamentally, the reason that they’ve prohibited native forest biomass is because Julia Gillard did a deal with the Greens in the multi-party climate talks.

“And it would appear that that

 MP Dick Adams

relationship is more important than the one she has with her backbenchers and committee chairs.

“It’s more like they’ve implemented Greens party policy than Labor Party policy.

“This is more broadly reflective of their general approach to their policy around forestry.

“You’ve got people like Dick Adams who say they are supportive of the industry but their policy implementations are not assisting the industry.

“It’s moving it back.” Senator Colbeck said.

MP Dick Adams, who chaired the inquiry, had stated: “This inquiry ranged far and wide and took in many different points of view. But we were seeking a future for forestry. We did not want to dwell in the past. So the recommendations have been carefully couched to give hope to our forest workers, our contractors, sawmillers, pulp and papermakers and our craft and woodworkers.”

The recommendations brought down by the committee of inquiry are: • Recommendation 1 The Committee recommends the Australian Government, through the COAG Standing Council on Primary Industries, lead a process to assess and publicly report on likely wood

demand and supply scenarios over the longer term (at least the next forty years). This should be completed within 12 months.

• Recommendation 2 The Committee recommends the Australian Government, through the COAG Standing Council on Primary Industries, lead a process to consider and publicly report on whether Australia should aim for wood supply ‘self-sufficiency’.

• Recommendation 3 The Committee recommends the Australian Government run public information campaigns to promote timber and wood products as replacements for more energy-intensive materials.

• Recommendation 4 The Committee recommends the Australian Government develop robust national standards quantifying the carbon stored in different products made from harvested trees, including the duration of storage and policy implications of those standards.

• Recommendation 5 The Committee recommends the Australian Government, as it develops a mature Carbon Farming Initiative regime, consider: the capacity for ‘additionality’ to recognise the diversity of plantations and farm forestry applications, rather than relying on generalised inclusions

ENGOs rewrite history on Tasmanian forest negotiations FOCUS ON the integrity of the green groups involved in the Tasmanian forest negotiations has been further highlighted after they failed to support ongoing supply to Tasmania’s timber industry in the recently-released Conservation Agreement between the State and Federal Governments.

The Wilderness Society, Environment Tasmania and the Australian Conservation Foundation (ACF) have publicly criticised the announcement that 2,000 hectares of their forest reserve claim would remain available to supply Tasmania’s remaining sawmills and veneer mills. This is despite 99.5% of their claim being set aside in interim reserve pending verification and is in line with the original Statement of Principles,

which they signed, agreeing that current supply contracts would be delivered.

“These groups agreed to such ongoing supply in the Statement of Principles signed by them in December 2010, but have now publicly criticised the provisions made by Government to meet this requirement,” said AFPA chief executive David Pollard (pictured).

“The wood requirements were assessed by independent experts agreed to by the groups. This was the only concession provided to the industry in return for its agreement to additional reservation of verified high conservation value forests, following Gunns Ltd’s exit from native forests, and extinguishing of their contracts,” he said.

AFPA has called on the groups to

and exclusions; the capacity for ‘permanence’ to include the sustainable harvesting and replanting of plantations and farm forestry, and other ways for the CFI to support the forestry industry generally.

• Native forestry Recommendation 6 The Committee recommends the Australian Government initiate a process to renew existing Regional Forest Agreements, incorporating the principles of review, consultation, evergreen extension and concrete timelines.

• Recommendation 7 The Committee recommends the Australian Government, subject to the agreement of the relevant State Government, ensure that a renewed RFA is in place within three years of the expiry of each existing RFA. Renewed RFAs should incorporate the principles outlined above.

 Senator Richard Colbeck

• Recommendation 8 The Committee recommends the Australian Government, in negotiation with State Governments, develop, agree and implement a new regime within all renewed RFAs to provide for ongoing monitoring and periodic assessment. The new regime should provide for the periodic assessment of each RFA on an individual basis, at regular intervals, and at arm’s length from all interested parties. continued on page 5.

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confirm whether or not they remain committed to the agreement.

“The ENGOs are adding to suspicions that they will never be satisfied and are not serious about delivering a lasting outcome unless they get everything they want. The needs of industry, workers and timber communities are equally important to their demands,” Dr Pollard said.

Improving industry’s capacity to develop and sustain a skilled workforce

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Australian Forests & Timber News, February 2012 – 3

FWPA receives a big tick for corporate performance FOREST AND Wood Products Australia Limited (FWPA) has been given a big tick in an independent review of its corporate performance.

According to the report issued by SED Consulting, FWPA is a wellrun company that has met all its obligations.

The review was commissioned as part of FWPA’s obligations under its 5-year Statutory Funding Agreement (SFA) with the Commonwealth Government.

The consultants, who are very familiar with the rural research and development sector, reviewed a large number of corporate documents such as strategic plans, annual reports and board papers, as well as feedback from stakeholders. They examined how FWPA manages its internal board and management processes (‘corporate governance’), how it plans and reports upon its various activities, the processes it adopts in managing R&D, marketing and other investments, how well it communicates with its members and other stakeholders, and how it measures the benefits it is delivering.

Willmott Forests and Commonwealth Bank face class action Directions

By Steve Holland

F “This is a great result for FWPA,” said Ric Sinclair (pictured), FWPA’s managing director. “It shows that we are heading in the right direction in building an organisation that has strong corporate governance, focused strategic programs and is delivering value to all stakeholders.”

“The evolution of FWPA from a statutory authority to a stakeholder focused company is very much a team effort and it is very satisfying to work with a team that shares a common purpose in building a better future for the forest and wood products sector,” he said.

AILED plantation investment company Willmott Forests - accused of deceiving and misleading investors – is set to face a class action commencing this month in the Federal Court.

About 500 investors are seeking a collective figure of around $150 million for compensation and cash investors will also seek damages.

They will claim Willmott directors Marcus Derham and David Madgwick and nonexecutive directors James Higgins and Hugh Davis and the Commonwealth Bank of Australia and its subsidiary MIS Funding No 1 Pty Ltd didn’t follow the rules.

Ron Willemsen, Melbournebased principle for Macpherson + Kelley, said the loans should be declared void.

“The crux of the claims is that the company, Willmott, which promoted the schemes did not provide effective product disclosure through which

investors made their investment decisions,” Willemsen said.

Willmott originated loans from lenders Commonwealth Bank and subsidiary, MIS Funding No 1 Pty Ltd which were made available to investors between 2007 and 2010, according to Willemsen.

Willmott’s accounts stated the company had received $97 million up to the Financial Year ending June 2008; $67 million the following year, and $20 million the year after that.

Willmott went bust last year, owing the Commonwealth and St George Banks 120 million despite controlling about $400 million in investors’ funds.

Willmott is one of a number of companies, along with Timbercorp and Great Southern, to collapse as a result of fallout from questionable forestry investment schemes.

The first directions hearing in the case is listed for 14 February in the Federal Court, Melbourne.

Willemsen said other investors were still coming forward and expected the class action to expand.

hearing listed for 14 February in the Federal Court, Melbourne

A spokesperson for the Commonwealth Bank said: “Commonwealth Bank and MISF deny any wrongful conduct and will defend the claims in full.

“We regret that the investors who pursue this litigation face considerable uncertainty.

“Commonwealth Bank and MISF have continued to offer support to customers that are finding it difficult to repay their loans for these investments and we encourage our customers to contact the Bank/MISF to discuss their financial position.”

New Forests acquires 46,000 hectare softwood plantation estate in Tasmania T HE AUSTRALIA New Zealand Forest Fund, a forestry investment fund managed by Sydney-based New Forests Pty Limited, has agreed to acquire a 46,000 hectare (114,000 acre) softwood plantation forestry estate located in the north of Tasmania. The forestry estate will be acquired from a joint venture between Forestry Tasmania and a global timber investment manager

 Forestry Tasmania’s managing director Bob Gordon … “price achieved was within the fair value range appraised by independent expert.”

for a total purchase price of $156 million. New Forests has lodged an application with the Foreign Investment Review Board.

“New Forests is pleased to acquire this attractive forestry estate, which is an important component of the sustainable plantation timber industry in Tasmania. These plantations are on generally flat to rolling terrain, with good rainfall and a history of good management. The estate makes for a high-quality, longterm investment opportunity,” said New Forests’ managing director David Brand.

New Forests currently manages more than 275,000 hectares of timberland properties across Australia on behalf of its institutional investment clients.

The transaction is based on acquiring the plantations via a Forestry Right on Crown Land, which provides for ongoing operations through 2069. The forest currently produces more than 550,000 cubic metres of softwood timber per annum, largely under contract to local processing facilities. With a diversified age class structure across the estate there will be a steady and growing cash yield over time.

The forestry estate is certified to the Australian Forestry Standard, and ongoing operational activities will continue to provide local employment opportunities to

local businesses. New Forests will manage the forestry estate in accordance with the company’s social and environmental management system, ensuring long-term sustainability with replanting programs and environmental restoration using native plantings in sensitive areas, such as riparian zones.

“With institutional investors seeking long-term, stable assets to counter the current volatile economic conditions, these softwood plantations make a strong addition to our investment portfolio,” said Brand.

Tasmanian Deputy Premier Bryan Green said the sale of rights of Forestry Tasmania’s joint venture softwood plantations would assist the business manage its way through restructuring of the State’s timber industry.

The Taswood Growers joint venture has sold the rights for $156 million with the State maintaining ownership of the land.

Green said Forestry Tasmania and its joint venture partner GMO Renewable Resources agreed to the sale to Sydney-based firm New Forests.

“New Forests will have the right to establish, maintain and harvest the 46,000 hectare plantation estate until the forestry rights expire in 2069,” Green said.

“While the trees will change hands, the land remains owned by

Forestry Tasmania, and the new owners will continue to supply the state-of-the-art sawmill at Bell Bay, Norske Skog’s pulp mill at Boyer, as well as several smaller timber processors.”

Green said he welcomed Forestry Tasmania’s decision to use its share of the proceeds primarily to retire debt to help manage its business through the restructuring of the industry.

“This is a very good outcome for Forestry Tasmania and the wider forest industry.

“I would emphasise that while the Government has been kept fully informed, the decision to sell the 50% share in the joint venture was made entirely by the Forestry Tasmania board.

“The sale is a sign of confidence in the future of the Tasmanian timber industry by New Forests, which already holds significant forest assets around Australia,” Green said.

Forestry Tasmania’s managing director Bob Gordon said Taswood Growers appointed investment bank Morgan Stanley to advise on a competitive sale process.

The price achieved was within the fair value range appraised by independent expert, James W. Sewall Company last June.

Gordon said the sale was a logical extension of FT’s decision in 1999 to enter into the joint

 New Forests’ managing director David Brand …

“The estate makes for a high-quality, long-term investment opportunity.”

venture arrangement with GMO Renewable Resources.

“We have also been mindful of the recommendations of the Auditor General. Through this strategic sale, FT intends to reduce debt, improve cash flow and address the lack of working capital,” Gordon said.

4 – February 2012, Australian Forests & Timber News

ISSN 1444-5824

February 2012

Workshops aim at attracting women to industry Potential to build on past projects and bring together women across different parts of the industry

A

Adam Redman at work with new technology to help solve an age-old pronlem. More on this special piece on page 14.

Features Opinion..............................................8 – 9 Carbon...........................................10 – 12 Innovations & Ideas............................... 14 Cutting Edge..................................16 – 17 AUSTimber....................................18 – 20 Finance..........................................21 – 22 Fire Protection................................ 24 -27 Bioenergy & Chipping....................27 – 31 CRC Forestry................................. 32 - 33

N INDUSTRY-RUN workshop designed to build networks between women working in the forest and wood products industry was held in Yering, Victoria, late in November with 40 people attending.

“This new network is designed to raise the profile of and connect with women working in the Australian forest and wood products industry,” said Establishing a Women in Timber Network Project Manager Jillian Roscoe.

“Currently a smaller percentage of women work in the forest and wood products industry than the average across the Australian workforce.

The low participation of women in the industry means we are not successfully accessing a large part of the labour force,” she said.

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Postal Address: PO Box 1006, Prospect East, South Australia 5082 Phone: (08) 8369 9555 Fax: (08) 8369 9501 Advertising: lmartin@forestsandtimber.com.au Melbourne Office (03) 9888 4834 Trader classified: lmartin@forestsandtimber.com.au Melbourne Office (03) 9888 4834 Editorial: editorial@forestsandtimber.com.au Adelaide Office (08) 8369 9512 Subscriptions: subs@forestsandtimber.com.au Adelaide Office (08) 8369 9522 Accounts: Adelaide Office (08) 8369 9555 General Manager: Elizabeth Bouzoudis Editor: John Hudswell Advertising: Laurie Martin Subscriptions: Nola Brigante Subcription rates One-year (8 editions) $55 Two-years (16 editions) $95 Production: Nathan Grant Publisher and Chief Executive: Hartley Higgins Suite 103, 486 Whitehorse Road, Surrey Hills, Victoria, 3127, phone (03) 9888 4822 Conditions: Opinions expressed herein are not necessarily those of the editor/publishers; information is published in good faith and we do not accept responsibility for damage which may arise from any possible inaccuracies. All rights reserved, none of the contents may be used in any other media without prior consent from then publishers. Published by Ryan Publications Pty Ltd. Print Post No. PP 767324/00002

 Rural community and leadership consultant Catherine McGowan.

“As our industry changes and new technologies, products and practices are embraced, we will need to recruit people with a range of backgrounds and skills.

“Through the new Women in Forest and Timber Network we are developing, we have the potential to build on past projects and bring together women across different parts of the industry and country, encouraging them to develop their careers.”

The Victorian workshop was the third in a series designed to engage with women in the industry about how to shape the network, to be hosted by ForestWorks.

Roscoe said the new network could help connect women and support the sharing of experiences, engagement and skills development.

“Connecting women through a network across the industry is important for the development of leadership skills, increasing the recognition and the voice of women in the industry and helping to make the forest and timber sectors strive to be employers of choice,” she said.

Victorian Parliamentary Secretary for Forestry and Fisheries, Gary Blackwood, MP, discussed the important role played by women in dynamic timber communities.

Attendees also listened to rural community and leadership consultant Catherine McGowan, who led a session on leadership skills and mentoring; and VAFI chief executive officer Lisa Marty, who spoke on the current opportunities available to women in the industry.

The Establishing a Women in Forests and Timber Network project is supported by VAFI, ForestWorks and funding from the Department of Agriculture, Fisheries and Forestry’s Australia’s Farming Future grant program to build leadership and representative capacity of women in primary industries. The Victorian workshop was sponsored by Healthcare Insurance.

Workshops are also scheduled for other States. A workshop will be held in Brisbane on 24 February and in Mt Gambier on 30 March. Further details will soon be available for a NSW event, scheduled to be held during the week beginning 5 March. For further information or to register interest in attending workshops contact Jillian Roscoe on info@ wftn.org.au or (03) 9611 9002 or visit the website www.forestworks. com.au/womensnetwork.

 Victorian Parliamentary Secretary for Forestry and Fisheries, Gary Blackwood, MP, discussed the important role played by women in dynamic timber communities.

 Listening intently to speakers.

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1, Vol. 21 2012 Issue FEBRUARY

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Australian Forests & Timber News, February 2012 – 5

Many achievements in a long career A

FPA PROCESSING Chamber Manager Peter Juniper has retired after 35 years of service to both the hardwood and softwood sectors of the industry.

Peter was part of the inaugural staff of AFPA following the merger of A3P and NAFI in April 2011, looking after the needs of wood product processing members. Prior to this his role at A3P was Manager, Solid Wood and previously held high level positions such as the CEO of the Plantation Timber Association of Australia (PTAA) and Pine Australia. He is a Fellow of the Institute of Engineers Australia and a Fellow of the Australian Institute of Company Directors.

His achievements include the implementation of several important industry programs

such as the introduction of MGP structural timber grades, upgrading of the Plantation Timber Certification Scheme, the setting up of the Monash Timber Engineering Centre, and the introduction of multi-residential timber frame construction in Australia.

He also coordinated and was involved in the Solid Wood Technical Committee, the Solid Wood Marketing Group, the National Timber Product Stewardship Group, the Engineered Wood Products Quality Council, various FWPA technical groups, and had involvement in the development of many of the industry’s key Timber Standards. He is currently a member of Standards Committee TM-001 (Timber Structures) and Chair of Committee TM-002 (Timber Framing).

Funding available to help with training There has never been a better time to undertake training for your staff following the recent announcement of ongoing funding for training through the National Workforce Development Fund (NWDF), says ForestWorks chief executive officer Michael Hartman.

The fund is designed as a co-contribution model, which means that the Federal Government will contribute up to 67% towards the cost of training, depending on the size of your business.

“Applications for NWDF funding are managed through the 11 Industry Skills Councils so ForestWorks Industry Skills Council is well placed to guide you through the application process. Indeed, all applications that ForestWorks has managed to date have successfully received NWDF funding,” he said.

NWDF funding is ongoing, however, applications made prior to the end of March 2012 will take advantage of current Budget allocations.

“If your enterprise wishes to undertake training with funding from the NWDF, ForestWorks is now able to accept applications.

Conditions apply and ForestWorks can guide you through the application process to maximise your success,” he said.

For more information and advice about maximising your opportunities for a successful outcome, email ForestWorks at nwdf@forestworks.com.au or call 1800 177 001.

 Peter Juniper.

Biomass loses gas in key Government report continued from page 1.

• Recommendation 9 The Committee recommends the Australian Government direct the Department of Agriculture, Fisheries and Forestry to consider and evaluate the ‘stewardship’ proposal outlined above, and that relevant Minister report to Parliament on its findings within 12 months.

• Plantations Recommendation 10 The Committee recommends the Australian Government lead a process through COAG to create a national plan for plantations, to ensure that: • plantations of appropriate species are planted in appropriate locations; and • appropriate regional infrastructure exists or is planned and funded.

• Recommendation 11 The Committee recommends the Australian Government: • decide whether the encouragement of long-rotation plantations is an appropriate objective of policy; • establish whether it is necessary and appropriate for government to provide an incentive to meet that objective; • if it is, set out a clear plan to meet that objective, according to the national plan for plantations; • assess whether MIS as a

mechanism can meet that objective; • if MIS can meet that objective, determine whether it needs to be altered to make it more effective; and • if MIS cannot meet that objective, determine whether other mechanisms could do so.

•F arm forestry Recommendation 12 The Committee recommends the Australian Government, through COAG, lead a process to agree a national plan for the provision of, and access to, enabling infrastructure for farm forestry.

• Recommendation 13 The Committee recommends that the Australian Government, in concert with state and local governments, provide immediate and ongoing financial support to local organisations that provide extension services for farm forestry, particularly through the Caring for our Country initiative.

• Recommendation 14 The Committee recommends that the Australian Government explicitly state that Caring for our Country funding is available for farm forestry activities, and actively promote this fact to the broader community through an extensive information campaign.

• Using forestry biomass Recommendation 15 The Committee recommends that, under any version of

Change of career AFPA’s communications manager Greg Haraldson is undertaking a career change. He is scheduled to complete a stint for an aid organisation in East Timor.

Greg joined the then National Association of Forest Industries back in 2005 and remained until the end of 2007 when he joined the communications staff at the Victorian MBA. He returned to NAFI just prior to the change of the organisation to AFPA. Interviews for a replacement were being undertaken as we went to press.

the RET (or similar scheme), bioenergy sourced from native forest biomass should continue to qualify as renewable energy, where it is a true waste product and it does not become a driver for the harvesting of native forests.

•R ecommendation 16 The Committee recommends that, if the above principles are adhered to, legislation or regulation direct the Minister to grant an individual exemption from native forest biomass exclusion.

• Recommendation 17 The Committee recommends that, under any system of exemption from the native forest biomass exclusion, provision be made for reporting on biomass volumes used, energy used and income generated, to ensure that the biomass used is a true waste product.

• Forestry into the future Recommendation 18 The Committee recommends that the Australian Government provide funding to FSC Australia

to support the development of the proposed FSC national standard, with the expectation that the FSC national standard will replace the interim standard within five years.

• Recommendation 19 The Committee recommends the Australian Government lead a process of discussions with all state and territory governments, to consider national approaches to: - Forestry and climate change; - Farm forestry; and - Future wood product demand and supply.

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6 – February 2012, Australian Forests & Timber News

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timber events If you would like to promote a forthcoming event, please email details (including contact numbers, email, etc) to: editorial@forestsandtimber.com.au or phone 08 8375 9827

AUSTRALASIA 2012 2 February AFCA Board of Directors meeting, Launceston.

23 February NZ FICA Regional Meeting – Gisborne 24 February NZ FICA Cable Logging Workshop – Gisborne 24 February Women in Forests and Timber Network, Brisbane. Contact Jillian Roscoe on info@wftn.org.au or 03 9611 9002 or visit our website www.forestworks.com. au/womensnetwork Week of 5 March (date and venue to be confirmed) Sydney. Contact Jillian Roscoe on info@wftn.org.au or 03 9611 9002 or visit our website www.forestworks.com. au/womensnetwork 7-8 March Future Forestry Finance & Investment Auckland, New Zealand. www.forestryfinanceevents.com 13-14 March Future Forestry Finance & Investment Sydney, Australia. www.forestryfinanceevents.com 20 March NZ FICA FICA Board Meeting – Wellington 21 March World Forestry Day 21 March ForestWood 2012 - Wellington, New Zealand. http://www.forestwood.org.nz/ 28 March AFCA Contractors Hall of Fame Induction Dinner, Mt Gambier 29-31 March AUSTimber (and conference) - Mount Gambier, South Australia. http://www.austimber2012.com.au/ 29 March NZ FICA Regional Meeting - Northland 30 March NZ FICA Cable Logging Workshop – Northland 30 March Women in Forests and Timber Network, Mount Gambier. Contact Jillian Roscoe on info@wftn.org.au or 03 9611 9002 or visit our website www.forestworks.com. au/womensnetwork 17-19 April Melbourne Materials Handling and Safety in Action Conference. Melbourne Exhibition Centre. safety@aec.net.au 26 April NZ FICA Regional Meeting – Nelson 27 April NZ FICA Cable Logging Workshop – Nelson 9—12 May DesignBUILD Queensland at the Brisbane Convention and Exhibition Centre.

18-20 May Brisbane Working With Wood Show.

RNA Showgrounds 24 May NZ FICA Regional Meeting – Ohope

High trunk pruning invention S

AMUEL, THE world’s first computer controlled mechanical limb pruning and wood yield audit system for young plantation forestry, is seen as a perfect fit for many of Australia’s forests. Samuel is the patented invention of Brisbanebased Australian Pacific Forest Management (APFM).

“When in Tasmania a few years ago to spend a day with Paul Smith, assistant general manager operations for Forestry Tasmania, Samuel’s inventor Colin Uebergang was shown a number of well-pruned young eucalyptus and pine plantations – these had all been pruned manually,” explained APFM director John McRobert.

“Later in the day he was shown a magnificent stand of mature radiata pine that had been manually limbpruned to about five metres above ground some 30 years earlier.

These almost perfectly formed pruned clear-wood 50cm diameter at breast height (DBH) trunk sections supported up to 20 meters of limbed knot-wood above.

“In discussions he learned the stand had been sold to a Chinese peeling company and that these trees were to be logged and loaded on ship at Launceston that summer.

“It was revealed the Chinese were paying $110 per m3 for the pruned peeler logs on board boat but when it was said that the 20 metres of unpruned remainder of the trees had been forward sold locally as chip wood for only $6.50 m3, he was convinced his company’s mechanical high trunk limb pruning invention had a place in forestry.

“As Paul Smith said as they looked up into the massive branch tangle above … ‘If your pruning machine had been around years ago and these trees had been pruned to 12 metres as you plan, these trees would be worth a great deal more today’.

“They went on to discuss how mechanical high trunk pruning to some 12 metres in such a plantation would value-add timber resources and insurance against ground fires, whether started naturally, through arson or simply ground fuel reduction fires. Ground fires could be more easily controlled, with flames prevented from reaching into the canopy of the stand to become fast moving infernos, the cause of billions of dollars of property and life destruction,” McRobert said.

“The trick with this innovation is to prune the unwanted limbs rapidly and close to the trunk without ringbarking the tree or damaging the cambium trunk regrowth zone.

The hoop pine with hoops of trunk irregularities at the base of the branches is not an easy shape to trim at speed with surgical precision, but this has been mastered,” he said.

“Colin’s pruning head allows the lower limbs of a three metre section of the tree to be pruned in two seconds. With two pruning heads, one mounted each side of a purpose-built transporter unit, 2,000 trees may be pruned within an eight hour shift (allowing for travel time between trees) compared to 100 trees pruned manually (chain or pole saw) in the same period.

“The machine is automatic but is designed to have an operator mainly as an observer, and can operate up to three shifts per day.

“The transporter unit will be built when additional funds are sourced. However, the difficult part - the pruner head - has been developed, tested and patented.

Funding enquiries to complete the fully operational machine are welcome,” McRobert said.

 I nventor Colin Uebergang with the pruning head.

T he head on the test rig about to prune the lower limbs of a hoop pine.

Plan to give certainty to native timber industry in Victoria The Victorian Government has moved to secure a long term future for the native timber industry by enabling VicForests to offer long term contracts of up to 20 years.

Agriculture and Food Security Minister Peter Walsh said the new Timber Industry Action Plan provided the industry with certainty and the confidence to invest in its future.

“Victoria has a magnificent and renewable resource in the form of native forest timber which has the potential to support a vibrant and profitable long term industry to provide jobs and investment in rural communities,” the Minister said.

Walsh said that under the plan, VicForests would be able to harvest and sell timber through supply agreements of up to 20 years, instead of the current maximum five year period.

He said the Government would also provide VicForests with the flexibility to sell timber in a variety of ways, including both timber auctions and other sales arrangements.

“We will also review the Sustainable Forests (Timber) Act 2004 to simplify the legislative framework in which the industry operates and reduce its regulatory burden, and will also introduce planning amendments to reinforce the right to use land for timber production in the Farming and Rural Activity Zones,” said the Minister.

“The Plan builds on the 2009 Timber Industry Strategy and provides a commitment for more ambitious actions to ensure the forest and wood products industry in Victoria has access to wood from well-managed State and privately-owned forests,” Victorian Association of Forest Industries (VAFI) chief executive officer Lisa Marty said.

“Longer-term wood supply contracts, more flexible sales arrangements and mechanisms to compensate VicForests’ customers for impacts on their contracts from changes in State Government policy will provide a basis for

improved business confidence, investment and innovation.”

She said a clear and effective regulatory framework for responsible forest management and wood supply was essential to ensuring the industry could continue to provide economically and environmentally sustainable jobs in rural and regional Victoria.

“This plan supports skills development, training and research which are crucial to the future competitiveness, productivity and development of the industry,” she said.

The Timber Industry Action Plan also recognises plantations as an as-of-right crop and supports farm forestry; helping to diversify Victoria’s timber and forest products supply.

Marty said the TIAP actions were essential if Australia — the seventh most forested nation in the world — were to reduce its $1.9 billion trade deficit in wood and paper products.

The Victorian forest and wood

V ictorian Association of Forest Industries (VAFI) chief executive officer Lisa Marty.

products industry includes a vibrant manufacturing sector in the suburbs of Melbourne and many regional communities. It directly employs approximately 24,000 people and produces products made from wood — a natural, renewable material that stores carbon and uses less energy to produce than many alternatives — that serve an integral part of our built environment as furniture, flooring and structural building materials.

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8 – February 2012, Australian Forests & Timber News

OPINION - LETTER TO THE EDITOR

Carbon credits will not resolve the Tasmanian forestry impasse

By Mark Poynter Victorian media spokesman Institute of Foresters of Australia

I

T WAS both surprising and disappointing to see a substantial article – ‘Redd Forests: part of the solution to the Tasmanian forestry debate’ (Australian Forests & Timber News, December 2011) – promoting carbon credits as an alternative to timber and wood production in a forest industry publication.

Even a modicum of investigation would have revealed that the notion of payments for forest carbon credits in Australia has been created by environmental activists and their supporters specifically as a weapon to help close the nation’s native hardwood industry. This would unnecessarily destroy one of Australia’s few carbon-positive industries while exacerbating carbon emissions as builders and consumers are forced to turn to imported hardwoods or alternative materials, such as steel and concrete, with far higher levels of embedded energy-use in their production and manufacture.

Redd Forests is a Tasmanian-based carbon-trading company which seeks to acquire carbon sequestration rights from owners of native forests that are under ‘threat’ from logging or conversion to monoculture plantations. According to its website, Redd Forests ‘is a “profit for purpose” business designed to apply commercially viable methodologies to replace activities that degrade or destroy the world’s forests’.

It was established in 2008 with multi-millionaire businesswoman and ‘green’ philanthropist, Jan Cameron, as a non-executive director. Ms Cameron is perhaps better known for purchasing 27,000 hectares of Gunns’ privately-owned wood production forest in 2010 to create a conservation reserve; and for her subsequent purchase (in conjunction with another multimillionaire) of Gunns’ Triabunna woodchip mill. While they claimed this was ostensibly to create a tourism facility, it is widely acknowledged as being primarily to thwart efforts to resurrect Tasmania’s native timber industry. It is presumed this mindset underpins her involvement in Redd Forests.

The company, Redd Forests, should not be confused with the

United Nations’ REDD (Reduced Emissions from Deforestation or Degradation) program which was designed specifically for forests in developing countries where there are real problems with uncontrolled logging and deforestation due to endemic corruption and poorly conceived and enforced environmental controls. These problems do not exist in developed countries such as Australia.

Contrary to the article, Redd Forests can play no part in the outcome of the Tasmanian forestry debate. This is because the debate is specifically over the fate of 20% of Tasmanian forest that is publiclyowned and being managed for sustainable timber supply by Forestry

that forests which are sustainably harvested and regenerated store substantially more carbon in both forest regrowth and in wood products over time, compared to forests that are simply ‘locked-up’ as carbon stores.

Whereas every dollar spent in sustainable forest harvesting and regeneration generates $12 expenditure outside the forest, much of it employment related, paying landowners for carbon credits requires only an initial assessment of carbon stocks funded by the landholder, with little if any expenditure over the term for which the forest is essentially ‘locked-up’. Accordingly, carbon credits generates income only

company as being “to stop the extent of deforestation and regard the native forests as an asset”.

However, as Australian forestry does not involve deforestation, selling carbon credits for ‘avoided deforestation’ in Tasmania is fraudulent, unless applied only to prevent the small area that is annually being cleared for agriculture.

In the Australian Forest Grower magazine (Winter 2011), Redd Forests’ manager, Jarrah Vercoe, pointed out that access to the carbon trading market is contingent on proving that forests are under ‘threat’ from logging.

Yet his company is offering carbon payments for 25-year terms after

It is also clear that sustainable forest management for timber production is more beneficial for the environment, local communities, and the Tasmanian economy than simply ‘lockingup’ forests for carbon, particularly in the fire-prone Australian landscape.

Tasmania, whereas Redd Forests activities are confined to private lands. In fact, if the 570,000 hectares of publicly-owned Tasmanian native forest that is under dispute becomes National Park, as is being demanded by environmental-NGO’s, then carbon credits cannot be generated from them under the terms of the Australian Government’s Carbon Farming Initiative and the Kyoto protocol.

Redd Forests’ managing director Stephen Dickey, promotes the company’s scheme as ‘an opportunity to achieve conservation, while generating employment opportunities and income for landholders’. One wonders how this can be so?

It is also clear that sustainable forest management for timber production is more beneficial for the environment, local communities, and the Tasmanian economy than simply ‘locking-up’ forests for carbon, particularly in the fire-prone Australian landscape. Even the Intergovernmental Panel on Climate Change (IPCC) has acknowledged

for a landowner, whereas timber production generates economic activity and income for landowners plus the many people involved in forest management, harvesting, log cartage, log processing, timber product manufacture, and retailing.

This stark difference is exemplified by the preliminary ‘back of the envelope’ estimate of the $50 – 100 million per annum which could be generated in carbon credits if logging ceased in Tasmania’s wood production forests. This sounds impressive, but pales into insignificance against the value of the state’s native forest timber industry which was (prior to the current troubles) delivering economic activity worth $0.7 billion per annum and employing 3,500 people.

Arguably of greatest concern is that the capability for Redd Forests to generate any real emissions reductions is highly questionable.

This doubt is exemplified by Redd Forests’ managing director, Stephen Dickey, who erroneously described the catalyst for establishing the

which logging can presumably be permitted.

The Tasmanian landowners who have signed with Redd Forests thus far, mostly own dry forests which tend to be selectively logged at about 25-year intervals. This again suggests that these payments are not avoiding any ‘logging-related emissions’ simply because there is no intention to log them until later when they have grown to sufficient size. In effect, these forest owners are being paid to grow wood they would be growing and later harvesting anyway.

Paying landowners for carbon credits generated from large areas of forest in the intervening periods between selective harvests but will not mitigate emissions. This only occurs when forest harvesting is actually prevented. This raises the question of how Redd Forests can get away with offering 25-year terms, when the Kyoto Protocol deals in 100-year terms.

Furthermore, Stephen Dickey states in the AF&TN article that carbon forests will be protected

from conversion to pasture and plantation. This is misleading as conversion of private forests to other land uses is already highly restricted, limited to 40 hectares per year per property. In addition it would preclude certification in the case of plantation development under either the Australian Forestry Standard (AFS) or Forest Stewardship Council (FSC) schemes.

The carbon credits established

by Redd Forests are sold into the voluntary international carbon market. Yet some of the pronouncements emanating from Stephen Dickey (who has no forestry experience), raises concerns about just what overseas companies purchasing these carbon credits are being told about Tasmania forestry.

These include Dickey’s belief that the Redd Forests scheme ‘will help end the State’s dependence on wood chipping native forests’. This overlooks the reality that Tasmania’s forests harvested for a range of uses including veneers, sawn timber and wood chips. While the majority of harvested wood is of low quality and has been traditionally sold as woodchips, Forestry Tasmania has and is continuing to develop new markets for sub-sawlog quality wood, including rotary veneers.

Last financial year 140,000 cubic metres of high value native sawn hardwood was produced from Tasmania’s public forests.

This was sourced from forests accredited under the Australian Forestry Standard (AFS) – the only national forest certification system developed and managed

by Standards Australia. The AFS is also recognised by the world’s largest voluntary certification scheme, the Programme for Endorsement of Forest Certification (PEFC).

Dickey’s claim that Redd Forests can, ‘help move the industry to a sustainable future based on high value products’ is naive, as is the premise that, ‘protecting Tasmania’s forests from planned harvesting helps them recover’.

Unsurprisingly, Redd Forests refuses to recognise Australian native forest managers as world leaders in forest management practices. continued page 9.

Australian Forests & Timber News, February 2012 – 9

OPINION

Forestry didn’t get it all wrong

By Jenny Stewart

T

HERE IS a strong push to stop all logging of native forests, but is this really justified from the point of view of conservation?

I wonder if the Australian environmental movement remains pleased with its success in relation to our native forests. According to Forests Australia, the area of native forest in public conservation reserves has reached 16% of the total, up from 11% in 1997. This represents an increase of almost 6 million hectares. Most of this forest almost 5 million hectares - was transferred from production forests operated on public land by State forestry agencies. At the same time, the area under plantation has grown steadily, with something like 900,000ha of hardwood plantation reported in production statistics for 2011.

While many Greens will not rest until all logging of native forests has ended, there is no doubt that these changes have transformed the shape of Australia’s forest-based industries. But does this transformation represent the best outcome for Australia’s forests and the wildlife that depends on them, let alone for the timber industry and its related communities?

As with most public policy issues, there are a number of interdependent and interrelated factors to consider. When policy changes, it disrupts settled relationships, not all of which were necessarily unproductive.

Regional forest agreements concluded between State and Federal Governments in the 1990s and early 2000s protected large areas of forest and in doing so, defused a vexed political issue. They have been rightly praised as good, practical public policy outcomes.

But the brunt of the restructuring was borne by public sector forestry. The agreements had very little impact on private native forests, which form 70% of Australia’s total forested area. Very little is known about how this resource is managed, and it remains patchily regulated.

Key change The key change has been in the role of the State itself. With a reduced area of production forest to be managed, the role of State-owned forestry agencies

has diminished. At the same time, with vastly increased areas of forest to look after, the role of national parks agencies has increased. But their funding has not increased to nearly the same extent. Almost everyone agrees that budget-constrained State Governments do not provide sufficient support for the kinds of management that national parks and other conservation areas need. And, of course, State Treasuries are now without the revenue that the transferred forests would have produced.

few foresters, while the plantation industry, which sees trees as a crop, requires quite different skills.

In this environment, the news that the Cooperative Research Centre in Forestry has come to an end is disappointing, but unsurprising. It is difficult to articulate a coherent research program for an industry that is undergoing almost continuous structural change.

Has all this change really been justified from a conservation viewpoint? There is

To argue that no native forests should be used for timber production is a viewpoint that seems to be more spiritually than conservation-based From an industry perspective, the outlook for native forests is far from stable.

Plantation-sourced hardwoods are used largely for pulpwood (that is, they are turned into woodchips for export). At the same time, a much-reduced area of State forest is being worked harder than in the past, with shorter rotations and lowerquality timber being produced. There is uncertainty, particularly in NSW, as to whether production targets for sawlogs, which are used for building and to make veneers, can be met. In Tasmania, it looks as though, in the deal-making surrounding the proposed Gunns kraft pulp mill, more than 500,000ha of native production forest will be transferred into conservation reserves, with further losses in employment in regional communities. At one stage, there were hopes for a burgeoning Australian furniture industry based on native timbers.

But for a number of reasons, this has not happened.

Restructuring consequences Restructuring has had consequences for forestry professionals, too. Traditionally, Australian forestry was built around the activities of State forest agencies. But as we have seen, these agencies operate quite differently today. They employ relatively

actually little evidence that State forests, even when heavily logged for woodchips, were responsible for species losses. We now know that wildlife loss is caused by habitat destruction (as in the permanent removal of habitat for housing) and by the depredations of feral animals, not by forestry.

Compared with farming and tourism, one would have to say that forest industries have real sustainability credentials. Trees do regrow. In the 1990s, when the debate was at its height, city-dwellers were disturbed by photos of areas, particularly in Tasmania, that had been clear-felled for woodchips. But native forests were not being destroyed by these activities. Indeed, the forests that had to be saved by moving them into national parks were actually in pretty good shape.

Without State forests, considerable areas of land would have been cleared for farming, or for urban development. The industry was not very sophisticated in defence of its interests. Some forest-based industries were easily branded as environmental criminals. But we are hardly further ahead if, having shut down Australian forestbased industries, we simply import more products from less sustainably-managed forests overseas. Even now, the Wilderness Society in Victoria is campaigning against the only brand of Australian-made paper now on the market, on the basis that its activities cause the ‘’destruction’’ of Australian native forests. Harvey Norman,

valiantly selling Australian-made furniture, is being similarly targeted.

The shift away from native forests and towards plantations, widely supported by environmentalists, simply means that more forest products come from monocultures, in which there is little if any wildlife, and where demands on water use are heavy. Are we better off if the fibre is sourced from these artificial forests, which are far less resilient than mixed native forests?

What about climate change? Here, too, the equation does not seem to favour current policy. Rapidly growing forests that have been logged are better carbon-absorbers than those that are left untouched. And in a warming world, putting forests into national parks is no protection against their being burned. Nor is there any evidence that plantations are more fire-resistant than managed native forests.

The crux of the problem is how we understand our native forests. For many environmentalists, native forests must remain inviolate. If they are used in any way, this detracts from their value as natural places.

There is no doubt that there are many areas of forest - rainforest in particular that should be preserved for these reasons.

But to argue that no native forests should be used for timber production is a viewpoint that seems to be more spiritually than conservation-based.

In principle, there is no reason why sustainably managed native forests cannot support a variety of uses. Indeed, native forests managed in this way form the basis of the successful forest industries of Canada and the Scandinavian countries.

Revulsion at the idea of logging our native forests is understandable, but probably wrong-headed. Most of the destruction of forests and associated habitats occurred within relatively few years of white settlement. The advent of State-owned forestry agencies, staffed by professionals, should be viewed as a plus, not a minus, in Australia’s environmental history. It might not be possible to bring them back, but what they stood for was not all wrong.

Jenny Stewart is professor of public policy at the University of NSW at the Australian Defence Force Academy. The above piece appeared in The Canberra Times

Carbon credits will not resolve the Tasmanian forestry impasse from page 8.

In 2008 researchers from Yale University and the Australian National University independently compared forest practices/policies in Tasmania against the policies of 38 other jurisdictions from 20 countries worldwide. Assessments were based on five criteria: riparian zone management, clear-cut size, road culverts and decommissioning, reforestation requirements, and annual allowable cut. They concluded that Tasmania’s forest practices were “..... comprehensive and amongst the most prescriptive in the world.” The effectiveness of these systems was also considered separately by the joint UNESCO World Heritage CentreIUCN-ICOMOS mission report on the conservation of the Tasmanian Wilderness World Heritage Area

which concluded that these areas are well protected and managed.

Dickey has also repeatedly claimed that Redd Forests’ carbon credits scheme is protecting native forests from harvesting even though the need for such protection is grossly overstated. Tasmania already has over 47% of forests protected from harvesting by formal reservations plus a further 20% effectively protected by being unsuited to logging or located on private lands where there is no expectation of future harvesting. The majority of harvesting in the available and suitable one-third of the forest is lower impact selective harvesting, with smaller areas of wet forest clear felled to ensure regeneration.

Dickey advocates putting, ‘plantations on degraded land to supply the timber and woodchips we

need.’ It is well recognised that this simplistic view is unrealistic without significant new financial investments (such as formerly generated by Managed Investment Schemes) and without substantial research and development in wood product manufacture. As Dickey would well know, the same environmentalNGOs demanding an end to native forest harvesting are opposed to further plantation development.

Dickey also states that Redd Forests’ ‘carbon credits will be eligible as offsets and landowners will receive income from the Australian Government’s Carbon Farming Initiative (CFI)’. This is wrong given that the CFI excludes existing native forests.

It has long been presumed that addressing anthropogenic climate change would create perverse

business opportunities which deliver substantial cash flows for their proponents whilst doing little or nothing to address the problem.

The concept of selling carbon credits by excluding timber production from well-managed Australian forests under the guise of ‘avoided deforestation’ seems to fit this description.

Undoubtedly for many private forest owners, the prospect of being paid lots of money for effectively doing nothing will be very attractive.

However, if this prevents wood production from well-managed Australian forests it will be counterproductive to fighting climate change and will exacerbate social problems due to the loss of economic activity and employment by closing or downsizing one of our few truly renewable activities.

The great irony which should not be overlooked is that forest carbon credits can only be generated when there is a ‘threat’ of logging.

Currently, the so-called Tasmanian ‘forest peace process’ plus ongoing anti-logging activism, threatens to end all harvesting of public native forests. Coupled with this, Redd Forests target of effectively ‘lockingup’ 150,000 hectares of privatelyowned native forest for carbon would make the future of a native hardwood industry in Tasmania very grim indeed.

If the Tasmanian timber industry disappears so does the ‘threat’ of logging, thereby ending the market for forest carbon. Landowners inclined to sell their forests for carbon should perhaps consider the potential for this to ultimately turn their forest into an asset with no economic value.

10 – February 2012, Australian Forests & Timber News

CARBON

Carbon sink provider gives landholders confidence in growing industry C

O2 AUSTRALIA is the largest forest carbon sink provider in Australia, enabling companies to reduce their carbon tax with cost effective carbon offsets. The publicly listed company currently has more than 22,000 hectares of carbon sink plantings under its management and is the most experienced operator in this growing sector.

CO2 Australia land acquisition manager Mark Ritchie says landholders, investors and carbon emitters can be confident of successfully teaming with this leading company.

This includes the forestry industry, Ritchie said.

“I think if there are forestry companies looking to bring their carbon to account, CO2 Australia has the skills and expertise to do this,” he said.

“This could be a on a fee-forservice basis to sequester the carbon and establish the carbon sinks for them.”

CO2 Australia currently has carbon sinks in New South Wales, Victoria and Western Australia.

It is also investigating suitable opportunities in Queensland.

While landholder clients of CO2 Australia receive a financial benefit for allowing plantings on their properties, the trees also have a positive effect on the land.

Ritchie says that when working with farmers, the company develops a suitable plan to ensure the establishment stage of carbon

 Integrated belt plantings in a cropping program at ‘Currawonga’, Condobolin NSW planted in 2006/07 for Eraring Energy.

sinks does not impact significantly on farming production.

This may mean areas designated for carbon sinks will not have stock run on them until the trees are established (around three years).

Landholders may instead crop this area during the initial growing phase.

Carbon sinks help to minimise salinity, decrease wind erosion and provide shelter belts for livestock.

“Addressing salinity in Western Australia has been a big driver for tree plantings. Drivers for other landholders have been to lessen the impact of wind erosion and waterlogging on their properties,” he said.

 CO2 Australia landholder Roger Todd (and Reggie) at ‘Wirrinun’, Melrose, NSW, planted in 2009 for Eraring Energy.

“Another incentive is livestock production. Trees have contributed enormously to livestock production and protection.”

Once an agreement between CO2 Australia and a landholder is reached on the specifications of the carbon sink, all labour is handled

by CO2 Australia.

The minimum landholding set aside for a plantation is 50 hectares (125 acres) and the life of the agreement is usually 100 years, which gives certainty to the amount of carbon which will be sequestered from the trees.

“The plantings need to be cost effective. We’re not going to drive four hours to plant 10 acres – it’s just not commercial – but if there are four neighbours side by side who want to do plantings we’ll consider it,” he said.

“We do everything. We pay for the trees, pay for the land and do all the work. The only cost to the landowner is their solicitor’s fees to look over the agreement.”

CO2 Australia has invested significant time and money in researching and modelling the most effective trees for generating carbon credits.

Most carbon sink plantings under CO2 Australia’s management consist of a small range of mallee tree species.

“The trade-off for using the one variety is being able to consistently supply carbon to clients and mallee trees allows us with certainty to determine the amount of carbon to be sequestered,” Ritchie said.

“Multi-specie plantings grow out at different rates. Mallee trees have a long lifespan and are also fire tolerant. They will regrow after a fire, so any loss of carbon is temporary.

“We also need a species which can handle harsh climatic conditions and be drought tolerant.”

The process from the initial expression of interest from a landholder to trees being planted on the property usually takes about six months, Ritchie said.

 Land Acquisition Manager Mark Ritchie inspecting tree health.

 Pinevale - Integrated belt planting at ‘Pinevale’, Matong NSW planted in 2008 for Qantas Airways.

“I’ll map the property initially, do the background work, then go and look at it, we’ll dig it and make sure the soil is suitable,” he said.

Landholders can either receive an upfront payment or an annuity payment as part of the deal to have carbon sequestered on their property.

“There is a forestry rights agreement which allows us to own the land the trees are on for the life of the agreement which is usually 100 years.”

The amount of rainfall in the area and the soil type will also dictate whether a property is suitable for CO2 Australia carbon sinks.

“For mallee trees ideally you want lighter sandy soil with an average rainfall above 350mm and below 600mm.

“The 400-500mm rainfall areas are ideal in sandy red loam country,” he said.

Ritchie said above 600mm rainfall is the top farming land and is generally too valuable for CO2 Australia to pursue.

Since the passing of carbon tax legislation by the federal parliament and introduction of the Carbon Farming Initiative (CFI), interest in carbon sink plantings from landowners has increased.

The CFI allows landholders to participate in carbon reduction projects including planting trees, increasing soil carbon and reducing

on-farm emissions. It provides real opportunity to improve the Australian landscape, enhance farming productivity and mitigate the effects of climate change.

“The CFI is aimed at farming in Australia, and is ideal for people who want to invest in Australia and its environment. This is the only mechanism that provides this framework. This program, aimed at farming and the environment is the only one of its kind in the world.

There are similar programs in places like New Zealand and Canada, but this is more comprehensive and focuses on credibility.

“CO2 Australia was the first organisation to achieve accreditation for reforestation projects under both the NSW Greenhouse Gas Reduction Scheme and the Federal Government’s former Greenhouse Friendly™ Program.

“The outlook is pretty good. CO2 Australia chief executive Andrew Grant is positive and upbeat about the industry,” Ritchie said.

“Now that we have some legislation in place there are lots of companies who will have to do something about offsetting their carbon emissions.”

Ritchie said he was aware of forestry industry participants who were investigating the merits of the carbon sink sector and already purchasing carbon credits.

Australian Forests & Timber News, February 2012 – 11

CARBON

Farmers see multiple barriers to tree planting for carbon sequestration R

ESEARCH BY the CRC for Forestry shows many Australian farmers are willing to consider planting trees to sequester carbon, but only if a number of major barriers are overcome.

 Dr Jacki Schirmer (ANU Research Fellow and leader of the CRC’s Communities research project).

The use of forests as carbon sinks is increasingly recognised as a way to mitigate greenhouse gas emissions, and while tree planting for the specific purpose of sequestering carbon is relatively new in Australia, it has been the subject of widespread discussion and forms part of both voluntary and mandatory carbon offset trading schemes. Tree planting for carbon sequestration needs to occur on cleared land, and typically requires accessing land currently managed by Australian farmers. As a result, it requires large numbers of landholders to be convinced to participate to ensure this climate change mitigation strategy can deliver its potential benefits.

The research was supported

by Forest and Wood Products Australia* and has explored when and why landholders are interested in planting for carbon sequestration, their perceptions of the costs and benefits of doing so, and identified gaps in the information available to farmers.

The research involved surveying landholders in New South Wales, and was undertaken by Dr Lyndall Bull (ANU Visiting Fellow and CRC Board member), and Dr Jacki Schirmer (ANU Research

Fellow and leader of the CRC’s Communities research project).

The full results of the study have just been published by the CRC for Forestry, and are available on its website.

Many of the landholders surveyed had planted trees on their property in the past to provide shade and shelter for stock, improve aesthetics and rehabilitate land. While only 3.5% of surveyed landholders had already planted trees for carbon sequestration, more than 75% are willing to consider it in the future or are already actively considering doing so. However, almost all landholders see multiple barriers to adoption of the practice, and these will need to be dealt with if widespread adoption is to occur.

“At the very least, landholders want a clear market for carbon sequestered in trees, with a viable carbon price; a clear and trusted legislative framework and Government policy supporting the activity; and confidence that carbon markets are secure for the long term and that there is little risk of their collapse,” said Dr Bull.

“If these minimum requirements are met, then it is possible to identify the types of landholders

Sequestration operations expanded ENVIRONMENTAL SERVICES company CO2 Group Limited reported record full year net profit after tax (NPAT) of $1.5 million for the year ended 30 September 2011.

This compares to a loss of $3.34 million for the previous reporting period and represents a $4.8 million turnaround in profit performance.

Earnings before interest and tax (EBIT) was $2.2 million. CO2 took the decision to change its reporting period in FY2010, and as such, the FY2011 results compare to a 15 month period for the 2010 financial year. CO2’s results for this year are therefore benchmarked against financial performance in the prior year that includes another quarter of trading.

Revenue of $35 million was a record for the company ($27 million FY2011) and the revenue growth was driven by a combination of increased demand for carbon forest projects and a diversification of CO2’s activities into broader environmental and financial services, most notably through the launch of the carbon

credits and renewable energy certificates trading business Carbon Banc™.

During the year the business successfully diversified its operations and this has transformed the company into a broader-based environmental services business with multiple revenue streams and growth platforms. These new service lines include the carbon credit trading business Carbon Banc™, forestry mapping and consulting services, carbon accounting, and site rehabilitation activities.

CO2 also successfully expanded the company’s carbon sequestration operations with new projects secured in Australia and New Zealand. CO2 now has a total of 22,300 hectares of plantings being managed on behalf of clients, up from 17,900 hectares in the prior year and this will further expand with the 2012 contracted planting program. All customers remain supportive of and committed to their projects.

“This has been a transformational year for CO2 Group – one in which

China introduces carbon tax NEWS THAT China will introduce a carbon tax to reduce greenhouse emissions is an important development, but there’s little sign other large carbon emitters will soon join it. China’s suggested starting price is just $1.55 - Australia’s price is $23 a tonne!

we cemented our position as the leading Australian carbon and environmental services business with a range of complementary products and services,” CO2’s chief executive officer Andrew Grant said.

“While the Federal Government’s legislation on the pricing of carbon has been a pleasing development, CO2’s growth has been achieved prior to the passage of the carbon pricing legislation. Our growth to date has been driven by servicing the needs of Governments and blue chip organisations to assist them achieve their carbon offset strategies.

“Our revenue growth is particularly encouraging. This and the conversion of listed options into shares in November means CO2 has cash on hand of $35 million and no debt. This places us in a very strong position and gives us the flexibility to invest in our growth.

“CO2 is in a strong position and our expanded range of services, our stable cost base and expanding blue chip customer base, supported by an enviable balance sheet, gives us the platform to deliver further growth rates FY2012.

“We have an active pipeline of new business opportunities across all our service lines, carbon plantings will definitely expand and we are reviewing other growth opportunities and potential acquisitions that complement CO2’s operations. "

that are more and less likely to adopt and, if appropriate, to target outreach to these different groups,” she said.

It’s hoped that the research will be considered by policy makers and groups working to make tree planting for carbon sequestration a viable and broadly-adopted activity.

Seminars presenting the findings have been held in Canberra, Hobart and Melbourne.

Additional seminars may be held in Western Australia and Queensland, depending on demand. To register your interest in attending potential future seminars, email crcforestry@ crcforestry.com.au with your name and contact phone number.

Full event details and the seminar presentation are available on the CRC for Forestry website.

Forest and Wood Products Australia sponsors the forestry category of the Science and Innovation Awards for Young People in Agriculture, Fisheries and Forestry. This research was undertaken with funds provided by the award, won by Dr Lyndall Bull in 2009.The goal of this study was to identify whether landholders are willing to consider planting

 Dr Lyndall Bull (ANU Visiting Fellow and CRC Board member).

trees for carbon sequestration on their land, and the factors influencing their willingness. This information is essential to inform the design of policy intended to provide a supportive framework for this activity, and to inform the design of specific programs or schemes aimed at encouraging landholders to participate.

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12 – February 2012, Australian Forests & Timber News

CARBON

Carbon Forestry 2012 planned for Australasia W

HAT A year it’s been for those involved in carbon markets. A raft of new legislation, a jump followed by a dramatic drop-off in carbon pricing and then a slow-down in trading. The roller coaster ride has caused plenty of angst for those foresters, emitters and investors with an interest in carbon forestry. Carbon markets, both in Australasia and internationally, have changed dramatically in just 12 months.

The politicians in 2011 were busy on both sides of the Tasman.

Australia passed its own controversial carbon tax.

A price on carbon emissions for around 500 of the country’s biggest polluters was set up to run from July 2012. Under the new legislation, the nation’s biggest carbon emitters are going to be subject to a pollution tax, which has initially been set at AU$23 a tonne, before transitioning to an Emissions Trading Scheme (ETS) for the country in 2015.

Joint plans to link Australia’s and New Zealand’s ETS’s was mooted with talk that a combined

scheme could commence in 2015, at the beginning of the flexible pricing period set for Australia’s carbon pricing mechanism.

The NZ Government was also busy. Its own ETS Review Panel released a report in September recommending the implementation of the scheme be slowed down and phased in.

Just before Christmas the NZ Government also announced that it would be banning some international emissions units (HFC Certified Emission Reduction Units) from the country’s ETS from 23 December 2011. This was recommended by the independent review panel and followed similar announcements by Australia and the European Union about banning these industrial gas CERs from their own schemes. More particularly, the action was directly linked to the dramatic drop off in pricing at the end of the year of NZU’s.

Pricing of NZU’s was looking pretty positive at the start of 2011.

Early 2011 saw the devastating earthquakes in Japan in March and ensuing nuclear incidents.

European countries announced low emission nuclear power was to be phased out. This put upward pressure on international carbon prices. Of course, NZ carbon prices followed the trend peaking briefly at $21/t before stabilising around $20/t. As mentioned, the tide turned quickly though.

As the global economy slowed and the Euro weakened, demand for carbon credits waned. This started in July of last year. Cashstrapped European industrial and utilities companies sold down their huge stockpiles of carbon to realise cash as the debt crisis hit. Prices were then in free fall dropping below NZ$7.

As a result, current trading in NZU’s has slowed dramatically.

NZ emitters have taken the opportunity before Christmas to buy huge volumes of cheap overseas units to cover their NZ ETS obligations and NZ foresters have not been willing to sell at these low prices. At this price it has also stifled interest in developing carbon offsetting initiatives such as forest planting.

The rules and the landscape have changed dramatically and there is still considerable uncertainty around the future and opportunities that exist in carbon forestry.

For this reason, Carbon Forestry 2012 has been planned to run in Auckland on 22-23 August.

The Forest Industry Engineering Association ran the inaugural Carbon Forestry 2011 event in July last year.

Focussing on the carbon forestry and carbon trading opportunities the event was a sell-out attracting more than 250 forest growers and owners, investors, financial institutions, brokers/traders and corporate entities that were at the time exploring how to best acquire larger volumes of carbon credits to manage their liability.

The 2012 program will be set up to attract a wide cross section of both New Zealand and Australian companies. Interest because of the uncertainty that pervades is likely to be just as strong. It will clarify the current state of international and local markets, the legislative activity affecting carbon markets, investment opportunities in carbon forestry, risk mitigation strategies that can be employed to ensure the success of forestry carbon projects and case studies from forestry companies that have participated in some of the earlier trading in carbon credits.

For more information on this event, check out www. carbonforestryevents.com The program for Carbon Forestry 2012 is currently being designed. For those interested in being involved in this event – presenting or exhibiting – please make contact with ken.wilson@fiea.org.nz

Business-friendly guide to Australia’s carbon market AUSTRALIA’S PEAK body for carbon market professionals is guiding the way for business to participate in Australia’s new compliance carbon market.

The Carbon Market Institute has launched Australia’s Clean Energy Legislative Package: A Guide for Business, a comprehensive guide which informs and educates businesses about how the scheme operates and what it will mean for different scheme participants.

“Businesses are more likely to achieve the best outcomes from a national carbon price mechanism if they have a solid understanding of the content of the scheme and are able to easily navigate their way around the Legislative Package that underpins the scheme,” says Carbon Market Institute executive director Mike Tournier.

“The more informed businesses are about the scheme, the better their business decisions.”

The carbon price mechanism and accompanying legislation establishes a carbon price by way of an emissions trading scheme similar to that in Europe and New Zealand designed to provide price signals to incentivise new behaviours and encourage the adoption and consumption of low carbon energy alternatives.

The scheme will transform the business landscape, creating new risks and opportunities to which business leaders will need to understand and respond.

“A thorough understanding of the relevant implications of the legislation will enable an organisation to develop the most appropriate strategy to respond to the changes,” says Tournier.

“In the worst case, failing to do this may result in unexpected and undesirable impacts on the financial and market position and performance of an organisation.”

The CMI Guide is authored by leading climate change lawyers Baker & McKenzie, led by Martijn Wilder, head of the firm’s Global Environmental Markets and Climate Change practice.

Further details are available at http://www.carbonmarketinstitute. org/publications/australias-clean-energy-legislative-package-aguid/ or http://www.carbonmarketinstitute.org/).

The latest in forestry and logging on show FOREXPO, THE European forestry and logging show, will take place at the heart of the largest European reforestation project, Mimizan, in the Landes, from 6 - 8 June 2012.

In the aftermath of Klaus (the devastating storm) 220 000 hectares need to be replanted in Aquitaine. They need to be quickly and professionally replanted at a rate of over 30,000 hectares per year.

The need for wood, the only naturally renewable eco-material, is growing: under the leadership of the Xylofutur competitiveness cluster the building, wood energy, green chemistry sectors are using more and more raw materials and the traditional Aquitaine industries: sawing, panels, paper, furniture ... are just as demanding as ever.

Given the scale of the damage and the extent of needs, the industry as a whole is questioning itself. Foresters are the most affected and they need concrete answers, machines, skills, information and exchanges. How can the principal European industrial forest be replanted? What are the guarantees? What species are going to be used? What are the opportunities? And all this against a backdrop of sustainable management and climate change, where there will be more heat and less water. Therefore we need to repair the damage but we also need to prepare for the future.

In a forest where innovation is a tradition, Forexpo (celebrating its 50th anniversary) is going to fully play its role as the showcase for Southern European industrial forests.

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14 – February 2012, Australian Forests & Timber News

INNOVATIONS & IDEAS

Reducing pressure creates better timber

By Matthew Lovering

S

ome of the most beautiful feature timbers in the world come from high-quality Australian native hardwoods; architects and designers want them for furniture, fit-outs and houses.

The pressure is on sawmillers to produce these timbers at a price the marketplace can afford. One of the most expensive and timeconsuming stages in producing the best timber is the drying process.

The primary method for drying timber in Australia uses conventional kiln drying, with controlled heating, humidity and air-flow under atmospheric pressure conditions. These kilns consume about 70% of the total energy required to convert green logs into dried, value added products. In addition, the drying process may cause degrade in up to 10% of the wood because of checking, collapse, distortion, and moisture variation.

Science has come up with a better way to dry some timbers.

Many European and American sawmillers are now using vacuum drying kilns for their local hardwood timbers as they have proven to be a more economical alternative with similar, or better, quality outcomes. But does the technology work with Australian hardwood timbers, and is it economically viable?

Researchers from the Queensland Government Department of Employment, Economic Development and Innovation, with support funding from FWPA (Forest and Wood Products Australia), studied the processes in vacuum drying

some Australian hardwoods, and developed models to assess both economic viability and the water movement inside the wood to predict drying rates.

Adam Redman, a senior research scientist at the Salisbury Research Centre, led the research team. ‘We chose four high volume commercial species that cover Australia, namely spotted gum, blackbutt, messmate and jarrah.

But they also are quite diverse in terms of wood properties and drying limitations; some are prone to checking, others to collapse,’ says Adam.

The theory behind vacuum drying is that reducing the pressure to between 100 and 200 millibars (i.e. 1/10 to 1/5 of atmospheric pressure) drops the boiling point of water to 45oC to 55 oC so it vapourises more easily and moves quicker. The low pressure draws the moisture from the timber at a faster rate. ‘The drying time is dictated by the level of degrade that is allowed.

We could dry faster but that would destroy the timber,’ says Adam.

Four vacuum kiln drying trials were performed for each of the four species, with 350 boards being selected for each trial.

 Adam Redman, a senior research scientist at the Salisbury Research Centre.

Before testing the boards were measured for wood qualities such as initial moisture content, wood density, fibre porosity, gas permeability (indicates how freely fluids flow in response to

point, and from that we used experience and common sense to tweak the drying schedules,’ says Adam. ‘The differences were caused by a number of factors such as the extractives in

New technology to help solve an age-old problem Every board was cut in half, with one half being left at the mill for conventional kiln drying and the other half being sent to Salisbury for vacuum drying.

a pressure gradient), bound water diffusion (bound water is water that is held chemically to the cell wall) and shrinkage, as well as any naturally occurring degrade such as checking or collapse.

The boards were then rigged with sensors such as pressure gauges, load cells and thermometers, and put inside a two cubic metre superheated steam vacuum kiln. The kiln was fitted with anemometers— to measure air flow—as well as temperature, humidity and vacuum pressure sensors. The boards were monitored ‘real time’ for temperature, moisture content and shrinkage in order to obtain a greater understanding of the kiln conditions and wood drying properties.

After each trial kiln-dried and conventional-dried boards were measured for cross-sectional moisture content, moisture content gradient, distortion (such as spring, bow and twist), surface checking, internal checking, end split, drying stress and collapse.

The first drying-schedule trial for each species was based on the kiln manufacturer’s recommendations for American species that had a similar density and drying degrade limitations.

But Adam and his team found that the Australian timbers were quite different, and the drying schedules needed modification.

‘The first trial gave us a starting

Australian timbers, anatomical differences, water transfer rates, and—one of the big ones— blockages within cells caused by tyloses (protrusions filled with tannins and gum). These all help set up steeper moisture gradients across the wood, which is associated with greater stresses and potential for degrade during drying.’

By adjusting vacuum pressure, temperature, and humidity the researchers determined suitable vacuum drying schedules for each species with acceptably low levels of any form of degrade.

The research established that vacuum drying produces boards of the same or better quality than is currently produced by conventional methods in just 41% to 66% of the drying time, depending on the species. End splitting was significantly reduced in vacuum dried boards.

This important information was fed back into modifying a previously existing software model that considered water movement when drying softwoods. ‘We set out to marry the vacuum drying model with what really happens in the four species; it’s never been done before, particularly for vacuum drying. You can’t really look at degrade until you can predict what the water is doing inside the timber during drying,’ says Adam.

Depending on the species the model was validated as being between 91% and 98% accurate— an excellent simulated accuracy.

‘It took us three months to run each vacuum drying trial for each of the four species; with the drying model it takes about two minutes,’ says Adam. The model has the potential to rapidly develop drying schedules for other species. Adam estimates that it would take about six weeks to develop a drying schedule for most Australian timbers, based on a validation trial using a few selected boards that have average wood properties for that species’.

But perhaps of most interest to sawmillers is the economic model that Adam created. This takes into account financial variables such as kiln cost, interest rates and electricity and heating costs.

While commercial vacuum kilns range from small (10 cubic metre capacity) to large (50 cubic metre capacity) the economic model showed that bigger is better.

The economic model demonstrates that for jarrah and blackbutt vacuum drying has greater economic benefits than conventional drying for all kiln sizes. In a large kiln, profitability would increase by 15.7% for jarrah and 18.9% for blackbutt.

In contrast, vacuum drying spotted gum and messmate is only economically viable when using large kilns; their economic gains were 2.7% and 1.3% respectively.

Adam has spent the last 12 years researching wood drying, and for him this project is a highlight as it uses new technology to help solve an age-old problem. ‘It’s an industrial dream, to dry timber quickly with least degrade and least cost,’ says Adam. ‘We’ve also measured wood properties to create a model that is accurate. It’s a case of science and economics combining to create accurate predictive models that are very usable for sawmillers.’

Australian Forests & Timber News, February 2012 – 15

They’re in it for the long haul!

F

ORESTRY STALWART Colin McCulloch has been elected for his tenth term as chairman of the Australian Forest Contractors Association.

His company has extensive harvesting contracts in both Tasmania and Victoria. Colin has been chairman of AFCA since its formation in 2002, was chairman of and played a leading role in the presentation of AUSTimber 2008, and is chairman of AUSTimber 2012.

AFCA was established to look after the interests of the harvesting and haulage contractors within the timber industry across Australia.

At the time it was felt that there was a need to establish a national body that would facilitate their long term viability and welfare and this has continued to be the primary objective of the organisation throughout its lifetime.

AFCA was formed by a group of timber industry harvesting and haulage contractors who were rallied together by machinery suppliers who kept seeing the potential demise of their clients as well as their parts accounts.

The one glaring reality within our industry is that while the distance is great between the different States, Territories and personalities the issues are essentially the same.

Talking after the organisation’s annual general meeting, AFCA manager David Drane said it was very pleasing to see that all the current directors offered themselves for re-election and were reappointed for another term.

“We are indeed fortunate to have a very sound and experienced group of people running our organisation,” he said.

The team for 2011-2012 is: • Chairman: Colin McCulloch (Tasmania) • Vice Chairman: Greg Coverley (West Australia) • Directors: Barry Fennell (South Australia), Cheryl Griffiths (West Australia), Garry Leeson (Victoria), Ken Padgett (Tasmania), and Ian Reid (Victoria).

“All of these people give up a lot of time away from their own families and businesses while travelling to and attending board and member meetings across the country, and they also incur a lot

of personal expenses in travel and accommodation costs while helping to run the organisation of behalf of the harvesting and haulage contractors of Australia,” said David.

“All of the contractors across the country should appreciate what they are doing for our industry.”

Scholarships to help studies in forestry THE FOREST Industry Council (FIC) in Tumut NSW is again offering two scholarships for students eager to further their studies in forestry.

The Council was formed in 1981 as a platform for industry to advance the stability and prosperity of the forest industry throughout the Southern NSW Region.

A further objective is to sponsor programs that are deemed necessary and desirable to further industry and community development.

Scholarships of up to $2000 will again be made available in 2012 for applicants with the following parameters: • Applicants must be a resident of the South West Slopes and have a demonstrated commitment to the forest industry

• Applicants proposals must align with the objectives of the Forest Industry Council • Applications in the following categories will be considered: • Direct or indirect costs associated with training in a forest industry related field • Promotion of the forest industry in the South West Slopes • Advancement of learning and skills in the forest industry • Costs associated with forestry seminars/travel • Research in a forest industry related field Application forms are available electronically by emailing Megan Arragon at megan.arragon@tafensw. edu.au, closing date for applications is 17 February 2012.

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16 – February 2012, Australian Forests & Timber News

CUTTING EDGE

New mill back on track for completion this year W

ORK ON a new timber mill in New South Wales has recommenced after a temporary halt. The December halt was caused by an administrative

issue.

However, Tasco’s managing director Bart Crawley said the Bombala Mill was on track for completion in December 2012.

“Tasco has worked closely with the New South Wales Department of Planning, Local Government and Local Council to quickly address the omission and we thank all those involved for their assistance and patience,” Crawley said.

“We are now focused on continuing construction at the site.

“With construction currently ahead of schedule, I am pleased to announce that the expansion of the mill is still on track to be completed by December 2012.

“Work is progressing on many fronts, earthworks have recommenced on the western side, the new carpark is established and the development of the building works

for the new Dongwha Timbers administration office has commenced,” he said. The project, also known as ‘Project Namu’, will create more than 60 direct construction jobs, adding to the mill’s current 87 local employees, according to Tasco.

Tasco announced plans for the commencement of the $69 million mill expansion in February last year.

The current operations and facilities at the mill that will be expanded include – • Sawing and milling timber to produce round poles, fence palings, planed profiled timber and timber slab products; • A treatment plant where a chemical preservative, usually copper chrome arsenate (CCA), is applied to timber under pressure; and • Associated infrastructure including boilers, kilns, a packaging shed, office, weighbridge and fuel and water storage tanks.

Softwood log input will increase from 106,000 to 300,000 tonnes per year, and treated timber output from 31,800m3 to 150,000m3 per year.

What’s in a name …

TASCO stands for The Australian Sawmilling Company Pty Ltd, which is a privately owned, medium-sized timber manufacturer that was created in 1996 from the need to produce high quality product from smaller type radiata pine logs.

Dongwha International is Tasco’s mother company, and has been 100% owner of Tasco since 2001.

It is an established Korean wood based company. Dongwha provides products such as wood panelling, housing and building material for total solutions to create a better living environment for people.

 Tasco managing director Bart Crawley.

Cutting edge machinery for new Bombala plant HEWSAW WILL deliver a HewSaw SL250 TRIO sawing line to Bombala in New South Wales as part of project Namu. Project Namu is the name that has been given to the expansion of the existing Sandy Lane mill. Namu is the Korean word for ‘tree’, which closely ties to TASCO’s mother company, established Korean wood based company, Dongwha International.

The $69 million investment includes construction of a new green mill, planer and timber treatment plant as well as the associated infrastructure such as boilers, kilns, and new site access and offices.

The sawing line model to be supplied is similar to one that HewSaw delivered to the French Farges sawmill in 2009 and to Vapo Timber Oy sawmill at Hankasalmi,

Finland, in the spring of 2011. One of the sawing line’s greatest features is its scan-n-set mode. Additionally, the operator can define the log quality just before sawing between packaging and construction quality.

The scan-n-set mode will according to log size and quality, choose the saw pattern and product sizes and the set the machines log by log at 150 m/min at most. The reliable automation, easy maintenance with service openings and occupational safety are also well known HewSaw features.

HewSaw and Dongwha Timbers through Tasco share a long history of co-operation. Tasco has successfully operated the HewSaw R200 SE saw machine since 1998.

The new delivery includes a log sorting line, sawmill infeed

 Artist’s impression of the complex.

 3D picture of the HewSaw SL250 TRIO sawing line. HewSaw SL250 TRIO sawing process. The HewSaw automated Log-In infeed system models the log and feeds it to the Chipper Canter in the most optimal sawing position. The Chipper Canter chips four open faces. The Scanning Conveyor profiles the cant feeds it to the Cant Saw which saws and edges the maximum of four optimised sideboards.

The Separator Conveyor control drops the sideboards to the transfer table. The cant is turned, centered and fed into the Ripsaw machine which curve saws the cant and edges up to four optimised sideboards.

system and ground floor handling system including chip screens and off-line chipper provided by Nordautomation Oy as well as the new VK8000HD-Combi-3R debarker by Valon Kone Oy. The debarker comes complete with a log butt-end reducer and two Air Seal debarking rotors with pneumatic blade pressure.

Nordautomation Oy will deliver the Combi sawmill infeed system and conveyors for the ground floor system and the lumber conveyors to the HewSaw sawing line. In addition to the log infeed, a sorting line with 10 + 1 log bins is integrated into the Combi sawmill infeed system.

The line speed is 150 m/minute.

The versatile and flexible solution has been tailored to the Dongwha Timbers needs.

HewSaw’s turnkey delivery also includes automation and the log scanning equipment. The automation will be delivered by TUI Technology from New Zealand and the log scanning equipment and optimising will be provided

by Prologic+ from Canada. Both

companies have been HewSaw’s partners in a number of projects over the years.

Kit-Sell Oy has separately agreed on the delivery of a dimension sorting plant and a sticking stacking plant, which will be turnkey deliveries. The plants will utilise Kit-Sell’s most advanced timber handling technology such as the modular TS21 trimmer and SCPB sorting conveyor. The maximum speed of the dimension sorting plant is 160 pieces/minute and, depending on the timber dimension, the sticking plant can reach the speed of 240 pieces/minute. The project is an international and co-operative one.

The machinery and equipment will be manufactured in Kitee at the KitSell plant, the electrification and automation will come from New Zealand and the optimisation will be delivered from Canada.

The value of the Finnish machine deliveries is more than 20 million Euros ($A27 million), which makes it one of the biggest exported Finnish sawmill machinery deliveries to date.

Australian Forests & Timber News, February 2012 – 17

CUTTING EDGE

Right at the cutting edge of technology VEISTO OY will deliver the HewSaw SL250 3.3 and the HewSaw R200 A.1.2 sawing lines to Russia. Lesosibirsky LDK No.1 sawmill is located in the city of Lesosibirsk in the Krasnoyarsk region of Central Siberia. This delivery will leave HewSaw factory in May 2012 and the new sawing lines are expected to be operational at the end of 2012.

The HewSaw SL250 3.3 sawing line is designed for sawing 10-55 cm logs, and it is similar to sawing lines delivered to (for example) the Hankasalmi sawmill of Vapo Timber Oy in spring 2011 and to the new sawmill of Dongwha Timbers in Bombala in 2012. The HewSaw R200 A.1.2 sawing line is used when sawing smaller logs and it is equipped with a double-arbor ripsaw unit for cross cutting, installed at the end of the sawing line.

The LDK 1 is the largest sawmill in Russia by production, and with the new sawmilling machinery, its annual production capacity will be approximately 750.000 m3 of sawn goods. The raw material basis consists of 75% pine and 25% larch.

The main supplier of the project is AS Hekotek. Other machine suppliers in the project include Heinolan Sahakoneet Oy and Valon Kone Oy.

New parts and tech support set up

A

s an original manufacturer of large scale sawmills, the Finland-based HewSaw has built its international reputation on customer service. Citing the feedback the company gets from existing customers enabling HewSaw engineers to fine tune and develop new systems, Sam Rowe, regional sales manager for Australasia, highlights the importance the company places on good customer relations.

With a small but growing number of installed sites in Australia and New Zealand, the family-owned business has set up its own office for the region in Melbourne including a parts warehouse and technician available for advice and onsite visits. The aim of the parts warehouse is to have consumables readily available as well as spares to ensure downtime is avoided or minimised. With much of its equipment being manufactured in-house, HewSaw strives to keep an adequate inventory while being able to monitor the rate at which different parts are consumed to further fine-tune its production runs.

ď Ž Sam Rowe, Regional Sales Manager, Kimmo Vesalainen, Customer Service Manager and Mirva Vesalainen, Customer Service.

18 – February 2012, Australian Forests & Timber News

AUSTIMBER

Plenty of flights to and from AUSTimber 2012 R

EX HAS added an additional 48 flights to and from Mount Gambier for AUSTimber 2012.

“We have made significant additions to the usual schedule, designed to assist with delegates’ air travel, and have added services each side of the event to ensure adequate capacity,” said Sandi Watkins, state manager SA, Victoria and Tasmania, Regional Express.

There will be 29 additional services on the Melbourne route (14 ex Melbourne and 15 ex Mount Gambier) and 19 additional on the Adelaide connection (10 ex Adelaide and 9 ex Mount Gambier).

The breakdown by day: • Tuesday 27 March – 6 additional • Wednesday 28 March – 10 additional • Thursday 29 Marc – 8 additional • Friday 30 March – 6 additional • Saturday 31 March – 8 additional • Sunday 01 April – 10 additional Regional Express (Rex) is Australia’s largest independent regional airline, operating a fleet of more than 40 Saab 340 aircraft on some 1,300 weekly flights to 35 destinations throughout New South Wales, Victoria, Tasmania, South Australia and Queensland.

 Rex Airlines provides vital link.

AUSTimber 2012 Mt Gambier ... it's a site to behold!

By Anne Hinkly-Tyler The AUSTimber site has changed since the festive break, remarkably so. The scale of the expo and the sites that will be in the forest can now be clearly seen. It is exciting to see it come together – as it is indeed a massive improvement on the 2008 site.

The grass will be green, the site surrounded by pine, blue gum forests and natural scrubland. The forest walk is completed with an overlay of wood chips courtesy of Forestry SA, delivered by KC & MR Boult.

Minor fencing works to accommodate exhibitors’ and visitors’ carparks has started, including the erection of personal access gates at each of the four chipping sites as part of a detailed Occupational Health and Safety Plan. Fencing between the chipping sites and static display sites is being constructed to maximise protection for all visitors.

All the active forest sites on the plan are sold. We still, however, have the ability to add more within the overall area of AUSTimber if required. This, in effect, means that there will be seven harvesting and extraction operations within the pine

plantation, five cut-to-length bluegum operations, four treelength harvesting operations and four in-field chipping operations processing product that will be hauled off the site during the event. There are still a few sites remaining in the static display area both in the open air and forest areas and organisers are encouraging potential exhibitors to be quick to secure the remaining few sites.

At this time in our industry AUSTimber 2012 is a marvellous opportunity to announce to the world that we are an industry in recovery, and that the future looks bright, both in an economic and environmental sense.

- Colin McCulloch, Chairman, AFCA

Showcasing careers Charity auction at in the industry welcome dinner Once again, AUSTimber 2012 is showcasing careers in the forestry industry, following the success of AUSTimber 2008.

At the forthcoming event, in conjunction with the Logging Investigation and Training Association and a local contractor, opportunities will be presented for interested people to experience operating harvesting equipment, both in a simulated and real environment.

Examples of some of the new equipment on display include: first release of the CBI Magnum Force Delimber, the Bruks mobile drum chipper, some exciting new products from Caterpillar, a full range of trucks including High Productivity Vehicles, as well as biomass harvesting and processing equipment.

Once again the Komatsu Forest Forwarder competition will be run, giving machine operators an opportunity to display their skills.

A major feature of AUSTimber 2012 will be the Forest Walk sites that can be viewed on the website, www.austimber2012. com.au.

Caterpillar Forest Products will once again be sponsoring the opening night ‘Welcome’ dinner – a great networking opportunity with a charity auction, which will generate funds to be used for a local charity in their work with young people.

The uniqueness of this event is not to be underestimated – being set in a forest of softwood and hardwood plantations just 15kms from a major regional centre, Mount Gambier, in the Green Triangle region of South Australia – the largest forestry region in Australia. The expo gives businesses that supply the industry the opportunity to display their new technologies and services and the industry the opportunity to see what’s new that can lead to increased efficiencies, profitability and sustainability .

There’s lots more happening and the website is continually updated www.austimber.com. au and you can follow the latest news on Twitter, Facebook and YouTube.

Cat on the prowl at AUSTimber Caterpillar Forest Products will be hosting displays at both the pine and blue gum sites during the AUSTimber 2012.

The highlight of the Cat® display will be the new Cat 568 Forest Machine (FM), Australia’s first new 500 Series Cat Forest Machine. The 568 features increased horsepower, more efficient hydraulics, longer track frames for more stability, and ground-level accessibility for maintenance. It is available in a general forestry configuration for road building, site prep and processing; and in a loader version for log loading, shoveling, buttn-top loading and mill yard applications.

Other machines that will be featured at the Caterpillar site include track feller bunchers, forwarders, wheel loaders and multi-terrain loaders. The 568 will be demoed; specifics on which of the other machines will be demoed and which on static display are yet to be decided.

The Caterpillar tents will include refreshments, giveaways, draws for prizes and merchandise for sale.

New Ideas and a lot of fun Sharper. Smarter. Greener.

See it all at AUSTimber 2012

• Mount Gambier • South Australia • March 29-31

In just over a month, the biggest timber industry expo in the Southern Hemisphere will host equipment suppliers and industry professionals from around the world.

The site’s green, clean and ready to go.

All in-forest demonstration sites are fully booked.

The conference speakers are tweaking their words.

The new equipment’s being shipped.

See you there! – www.austimber2012.com.au

A conference to challenge you

A partners programme to entertain you

A top line up of international speakers to inform and challenge your thinking on how to improve your productivity.

Extend your stay or have fun with industry friends.

Michael O’Connor is Forestry and Furnishing Products Division National Secretary of the CFMEU and a member of the Australian Forestry Industry delegation to international climate change negotiations. His key note address will get you thinking about how you can improve your business through being sharper, smarter and greener.

There’s a full partners program, including a ‘Paddock to Plate’ experience at Mayura Wagyu Beef with Mayura’s resident Chef learning how to prepare, cook (and eat!) these succulent steaks.

Major Sponsors

Sponsors

indoor and sta quickly – se tic outdoor sites are fill ing cure your e xhibition spa ce now

Partners

20 – February 2012, Australian Forests & Timber News

AUSTIMBER

Bid to pave the way for skilled driving force T

HE LOGGING Investigation and Training Association (LITA), more commonly known as LITA Training, is well known for its training and services to the forest industry especially harvesting activity. It has now ventured into the driver general transport training.

After feedback from local log hauliers and recognition that licencing and training availability for the Green Triangle region industry was diminishing, the board of LITA took the initiative to purchase a Mack Prime Mover

for HR-MC training and licencing and acquired an MR vehicle.

LITA manager Andy Cusack said it was “an exciting opportunity for the organisation to expand into a field related to its existing business”.

“Transport for raw materials as well as processed timber products is the livelihood of trucking in the Green Triangle. A number of large and smaller freight and haulage contractors operate in the region and the feedback indicates that at times production is being hampered due to lack of skilled and licenced drivers.

“The blue gum harvesting is slowly ramping up in the region and truck driver availability is already being identified as a significant challenge,” he said.

Cusack said LITA had been fortunate to engage the services of two seasoned instructors who will cover a full range of services from training and licencing to fatigue management and more.

LITA recently enjoyed a visit from the chief executive officer of ForestWorks the Industry Skills Council to show off the new equipment and to share their plans and vision.

Try a havester ... put yourself in the driver’s seat!

LITA TRAINING has committed to a number of exciting career development opportunities at AUSTimber 2012.

They have committed to providing staff to discuss career and training opportunities for young and old in the forest industry. They propose to display their newly-acquired Training Truck and a static display.

In addition to what can be seen as traditional displays they are excited to announce that in conjunction with a local harvesting contractor they are going to offer what is believed a first in a major forest display in Australia.

To enhance career opportunities and awareness for potential harvesting operators they will be presenting a “Come and Try a Tree Harvester Event”.

Personnel interested in a career in harvesting

will be given the opportunity to drive a late model harvester and talk with the operator.

This unique opportunity will give people a chance to be one-on-one in what is normally an inaccessible opportunity.

 Michael Hartman CEO ForestWorks and Deputy Jane Bartier discuss the new training venture with Andy Cusack, LITA manager.

There is certainly a lot of worry around the future of the forest industry in Australia, people are doing it tough with reduced housing starts, significant levels of imported timber and the high Aussie dollar. AUSTimber is an event for the industry that provides the opportunity to look at new technologies and services that will help the industry and help individual businesses. But not only that … it’s also a massive networking opportunity for all of us in the industry and only comes around once every four years.

- David Quill, General Manager.

Vast range of products on show RANDALLS Equipment is looking forward to AUSTimber 2012 to show a vast range of its products.

“For the pine working site we will run the Rottne F18 forwarder and a Rottne H20 harvester , around this site we will have our marquee with a Rottne F18 forwarder on static display, Prentice 2210 log loader fitted with Tamtron on-board load scale measuring system, SATCO harvesting heads and Satco 630 felling head, a full range of Randalls grapples which will include models .36, .55IR22, .80IR22, 1.3IR22, 2.0 m2 and Indexator rotators,” said managing director Peter Randalls.

“We will also be displaying for the first time SP Maskiner blue gum harvesting head model 591LX.  ( left bottom) Rottne F18 forwarder.  (middle bottom) SP Maskiner blue gum harvesting head 591LX.  ( far right bottom) Randalls grapple.

 SATCO blue gum harvesting head.

 Prentice log loader at work.

 Prentice log loader on the move.

Australian Forests & Timber News, February 2012 – 21

FINANCE

Where are you making (or losing) money?

By Matthew Cummins

T

HE FORESTRY and timber industry is currently experiencing some challenging times due to increased competition from imports and lower demand for timber products (slow growth in new building approvals).

These factors are placing financial pressures on all participants along the supply chain resulting in flat and sometimes downward pressure on rates coupled with continually increasing costs. To describe the current business environment as “challenging times” is an understatement.

I believe one of the best ways

to prosper in this challenging environment is to look internally at the efficiencies of all aspects of your business. To start this process you need to identify exactly where your business is making money, and where it is losing money.

A term I like to use to describe a business that does not regularly monitor and track the performance of the individual segments or operations of their business is a ‘Bucket Business’.

If you imagine your business to be like a bucket, all the revenue earned from different sources (softwood harvesting, hardwood

harvesting, forwarding, loading, log haulage etc) represents water being poured in at the top of the bucket and all of your business expenses (fuel, equipment finance, wages, equipment repairs, overheads etc) are represented by holes in the walls of the bucket.

The water remaining in the bucket represents your business profit.

Admittedly this is a reasonably simplistic way to view a business however it is helpful to get the overall picture. Under this approach the only ways to retain more profits in the bucket is to either plug some expense holes (reduce fuel/wage/ finance etc costs) or generate more income (increase rates or

production) to be poured in the top. As everyone in any type of business will tell you these are a lot easier said than achieved!

Is there a better way to retain more profits in your business?

Rather than looking at your business as one big bucket I suggest you should break it down into its different segments so you can properly analyse where your business is or isn’t making money.

This can be done as number of ways but usually best by looking at the activities you perform (harvesting, haulage, milling etc) or the products you are involved

with (hardwood, softwood, plantation timber etc) or the locations/customers you service.

Analysing the profitability of each of the segments within the business is a critical tool in evaluating what parts of your business are performing well, which are not and where improvements and/ or changes need to be made. By being able to identity and working to improve the underperforming segments (or even eliminating them from your operation) you can dramatically affect the amount of water left in the bucket. After all, as the saying goes, it’s about working smarter not harder.

For the purpose of this article I

will use a softwood harvesting and haulage contractor business as an example. A common issue for these contractors is that although they may be receiving reasonable rates and making reasonable returns on their harvesting operations, the corresponding haulage of those logs (while convenient in ensuring the timber is delivered to the mill in a timely basis) may actually be a loss incurring operation if it were to be analysed as an independent operation. Viewed as a whole the business may be profitable however this business has a significant risk of failure if an internal or external

factor such as a change in operation types, reduced or changed product demand from the mill, bushfire etc significantly changed the performance of a harvesting operation overnight.

In a perfect world in the above example you would like to be able to set your income rates to ensure that all parts of the harvest/haulage operations are equally profitable and providing good returns to the business owners. Unfortunately we all know there is no such thing as a perfect world in this or any other industry so the best you can aim to do is to arm yourself with as much accurate, timely and relevant information on the performance of your business to ensure each part of your operation is running as efficiently as it could be.

Separating and monitoring the performance of the different segments of your business can have dramatic benefits for your business.

It will enable you to Focus on the underperforming areas of your business. You will be able to identify the reasons for underperformance such as inefficiencies (bottlenecks at mills, excess equipment, missed loads), production issues (long snig distances, too many cuts slowing tonnes through the head) and rate issues (is my rate per tonne enough to cover my costs per tonne?).

Identify and allocate your costs to each specific operation within your business so that you are able to have greater confidence and control over your costs when tendering for work and setting rates.

Develop a ‘bank’ of objective data on the costs to perform particular operations, so that you are in a much better position to be able to go to your customers and request rate increases that are fair and reasonable. This is an area where we have had significant success for our clients. Our experience is that the majority of forest owners/mill operators are not unfair or unreasonable in this area. They have their own contracts to fill and it is in their best interests to have contractors who can deliver

 Matthew Cummins.

their services on a reliable and sustainable basis.

So how do I analyse the different segments of my business?

Although this sounds like a complicated process requiring specialised and sophisticated software, the reality is that the majority of businesses already have this capability within their generic accounting packages such as MYOB or QuickBooks. To utilise these features may be as simple as modifying your chart of accounts and/or adding a little more detail to what you and your staff are already recording within these packages.

It may involve a more detailed activity-based analysis of your business. The outputs of which should be useful and practical reports on the segments in your business to assist you to make better decisions.

In future articles I hope to bring you more information on how to be able to develop some internal reporting systems that will allow you to be able to generate meaningful data and reports on the performance of your different business segments and your business as a whole.

Matthew Cummins is Client Services Manager at Easdown Business Services ((02) 6921 2058).

MatthewC@easdown.com.au

22 – February 2012, Australian Forests & Timber News

FINANCE New Forests Asset Management Pty Ltd, Sydney, looks at the...

Changing landscape of Australia’s forestry investment sector I

N THE late 1990s Australia faced a growing deficit in wood products trade.

The Federal Managed Investments Act of 1998 responded to this timber supply shortage by creating a retail investment structure that allowed investors to take a personal income tax deduction for investing in reforestation and agribusiness activities through Managed Investment Schemes (MIS). The creation of the timberland MIS industry was more successful than anticipated. New companies were formed to offer MIS products to the retail market, and the sector grew quickly in response to investors wanting to manage capital gains tax bills associated with the bull market of the Australian Stock Exchange (ASX). The MIS sector established almost 1 million hectares (2.5 million acres) of timber plantation in Australia between 1999 and 2008. In the peak year of 2006-07, investors placed over AU$1.2 billion in MIS projects.

To meet the surging demand, MIS companies needed to acquire substantial land assets.

However, land acquisition is not tax deductible to the investor under the Managed Investments Act, so the MIS companies financed land purchases on their balance sheets with substantial bank debt. After the financial crisis of 2008-2009, the combined effect of a volatile share market, reduced demand for MIS products and an inability to roll over debt facilities led to a raft of bankruptcies and a somewhat disorderly re-structuring of the MIS sector. In 2009, MIS sales fell to under $AU300 million and in 2010 fell further to below $100 million. With major MIS companies being liquidated and a negative public view of the MIS sector, it is unlikely that the sector will ever return to its heyday.

The present opportunity is to rationalize the land and forestry assets – 1 million hectares of plantation likely worth $AU3-4 billion – into an institutional timberland asset.

How MIS products work The MIS sector is a direct product of tax legislation designed to encourage investment in plantations. This was particularly effective as a means to drive forestry investment because the early tax deduction was seen as balancing the risks associated with investing in newly established plantations that require 10-14 years of growth before the timber becomes marketable. Tax deductions are awarded in the year the investment is made, and the MIS companies were allowed to charge for all the reforestation costs, management costs and leasing costs as a single-up-front payment—

often in the order of $10,000 per hectare. In many cases the MIS companies financed the investments with up to 100% debt, allowing the investor to gain the tax deduction with no upfront payment.

Forestry MIS companies establish and manage the plantations and market the timber products on behalf of the individual investors in the scheme (known as “growers”). The MIS company is typically paid a management fee and a share in the harvest proceeds. Upon raising the funds, the MIS operator has 14 months to secure land and undertake reforestation operations.

Rise and fall of MIS industry The MIS industry first rose to prominence in the late 1990s as rising stock markets drove interest in tax management products. In 2000 the Federal Government of Australia tried to limit the growth of the schemes by requiring that the reforestation occur in the year of investment, but as the stock market contracted in 2001, the entire industry went into a near collapse.

The government reversed its tightening of regulation, and the commodity-led boom of the early 2000s led to recovery and further expansion of the MIS sector. This resulted in a kind of land grab, as firms competed to fulfill their tree-planting quotas within the required 14 months of selling an MIS product to the retail investment market.

Investments focused primarily on blue gum plantations near ports for woodchip export, which are attractive because of the relatively short (10-14 year) rotation length. There have also been MIS projects for radiata pine and tropical hardwoods, including sandalwood.

While there is high demand for many of these quality wood products, MIS cost structures were generally considered too high to make commercial sense, even factoring in the tax benefits.

In 2009 the Government moved to curtail the MIS sector, but again the effort was poorly timed, coming as global markets felt the shock of the credit crisis. Most MIS operators were listed on the ASX and quickly came under pressure from falling sales, falling share prices and a refusal by the banks to continue to extend or roll over their debt facilities. Timbercorp and Great Southern Plantations, the largest MIS companies, went into administration/ receivership in April/May 2009, leading to questions about the viability of the whole sector. Such turmoil has been a challenge for the many tens of thousands of grower investors,

but the resulting restructuring and sale of assets also creates the opportunity to institutionalize forestry investment in Australia. The rationalization should lead to a stable, highquality forestry estate on many former MIS landholdings.

Market activity Since 2009, the need to restructure ownership of the Australian forestry sector became evident in the downfall of several prominent MIS operators: • I n early 2009, Great Southern Plantations, the largest MIS operator with over 40,000 investors, offered to buy out its growers in bulk. Only one-quarter of the forestry investors accepted an offer to trade their woodlots for shares in Great Southern.

Subsequently, Great Southern was unable to service its debt and went into Administration and Receivership in May 2009. The management rights to the plantations were sold to Gunns in December 2009, and in January 2011 Alberta Investment Management Corporation and New Forests’ Australia New Zealand Forest Fund acquired the 270,000 hectare forest land holding.

This transaction left the 40,000 or so retail plantation investors in place. This is the largest private forest land holding in Australia and will be central to the future evolution of the forestry industry.

• I n the case of Timbercorp, the company was placed into Voluntary Administration and then Receivership in April 2009. The Receiver, KordaMentha, wound up the retail investment schemes and sold the land and trees collectively as a timberland asset.

There were approximately 95,000 hectares of trees, most on leased land but also 39,000 hectares of freehold land. This sale was widely publicized during October 2009, when the assets were purchased for $345 million by Australian Bluegum Plantations, an Australian company managed by USbased Global Forest Partners. A portion of the purchase price was used to repay the bank debt and release the security charge over the land, and a portion was distributed among the company’s 15,000 investors.

•F orestry Enterprises Australia (FEA) was placed in Administration and Receivership in April 2010 owing $215 million in debt. The company has an estimated 77,000 hectares of plantation land in Tasmania, New South Wales and Queensland, which will likely be sold in the coming months.

• I n May 2010, Rewards Group, which managed 12,000 hectares of forest and horticultural plantations, including teak, was placed in Administration, leaving the fate of $250 million of MIS investor funds uncertain. A sale of the land and trees is expected to be announced imminently.

• I n July 2010, Willmott Forests entered a trading halt after its MIS sales missed projections, and in September 2010 entered Receivership, owing $120 million. In December 2011, it was reported that Global Forest Partners had purchased the Willmott assets for approximately $80 million, subject to final court approval.

•E lders Forestry also had limited MIS sales in 2010 and has undertaken a review of their forestry business and assets. In 2011 it was announced that Elders would completely

exit from all forestry business and sell all their forestry assets. A progress report in December 2011 suggested that Elders will successfully divest itself of its forestry business and wind up all outstanding MIS schemes by the end of calendar 2012.

• Gunns has also ceased offering new MIS products, and has been systematically selling down assets, including MIS assets, as it seeks to restructure its business and raise capital for a major pulp mill project in Tasmania.

Lessons learned Australia’s plantation forestry sector has been almost entirely developed through either direct government funding in the case of the softwood plantation estate or through tax inducements via the MIS legislation in the case of the hardwood plantation estate.

This government intervention was largely justified by the growing wood products trade deficit of Australia and the view that private investment was not available for long term forestry programs. The era of large-scale Government intervention and support for forestry in Australia now appears to be ending.

The softwood plantations, owned by State Governments are now systematically being sold to institutional investors, and the MIS forestry is also now being rationalized into institutionally owned assets. The failure of the MIS industry is in some ways a reflection of the inherent problem of using tax inducements to fund an industry. The tax deductions become the goal, and the underlying investments become a kind of by-product of the tax deduction. While most of the MIS plantations in Australia were established well, the drive for land and timely planting pushed new plantations into areas of low rainfall, poor market access or areas of limited historical forestry experience. As MIS companies acquired extensive landbanks with debt finance, the sector became overleveraged. The high costs of managing large numbers of retail clients, packaging and selling the products, and financing the whole cost base upfront, meant that the projects were commercially non-viable. So while the calamitous end of the MIS was unforeseen, many commentators felt it was overheated and due for some form of correction. Ultimately, the stress of the financial crisis led to a complete collapse of the industry. The restructuring of the Australian forestry sector to institutional ownership is beneficial for the industry’s long-term outlook.

The industry will consolidate into areas that are commercially viable, and concerted work on market development and improved commercial returns will lead to a sustainable and internationally competitive industry. New Forests is proud to have established a significant position in the restructured Australian forestry sector and will be seeking to contribute to future growth and opportunity for the industry.

Commentary current as of December 2011

We’re right behind you in the field Combining remote locations, harsh operating environments and heavy vehicles and equipment, the forestry and timber industries face significant fire risks.

With Wormald, you have an organisation that is always right behind you when you need us most. We’ve helped prevent and protect against fires for over 120 years.

Wormald has the fire protection solutions for heavy vehicles that range from fire detection and suppression systems, to portable fire equipment, personal protection gear and staff training; our end-to-end tailored solutions help protect major forestry operations throughout Australia and the Pacific region.

So, you can get on with the job, confident that your people, resources and machinery are supported by one of the world’s fire safety leaders. That’s peace of mind.

Trust the forestry fire safety experts.

Call 1300 556 015 or visit wormald.com.au/vehicles

Pictured: Cylinders and Extinguishers

24 – February 2012, Australian Forests & Timber News

FIRE PROTECTION

Technologically advanced, userfriendly weapon to help fire fighters M

ULTI-AWARD winning mapping technology used during Queensland’s flood crisis is set to become the new weapon for the State’s 35,000 fire fighters during the 2011 bushfire season.

The Queensland Fire and Rescue Service (QFRS), in conjunction with leading data mapping specialists Esri Australia, has spent the past two years developing a Geographic Information System (GIS) capability, which enables the organisation to plot fire, asset and resource information on a centrally accessible digital map to give them a complete picture of fire situations before, during and after they have occurred.

However, this bushfire season will be the first time several recent enhancements, including the ability for fire fighters on the ground to upload data to the map in real-time, will be put to the test.

Speaking at the Australian Fire and Emergency Services Authorities Council’s (AFAC) annual conference in Sydney, QFRS GIS Unit Manager Mark Wallace said the new, improved T ree heights from LiDAR.

F orest powerline.

system would give fire fighters a critical edge in protecting lives and assisting the 35,000 volunteers across the service.

“Similar to its role in military operations, GIS is crucial for enhancing situational awareness by giving fire fighters a greater understanding of what is going on around them so they can make decisions on how best to respond to an incident,” Wallace said.

“The Esri Australia GIS technology lets fire fighters view information about weather conditions, water sources, evacuation routes and other intelligence, in the easy to understand visual context of maps.

“In some circumstances, GIS can mean the difference between driving five kilometres to find a water source or using a dam located just 200 metres away but hidden from view.

“This can result in improved decision making, better response times and a more effective allocation of resources – which ultimately saves lives.”

Wallace told attendees at the AFAC conference that GIS technology would be crucial for the 2011 bushfire season.

G round terrain.

While summer presents the greatest fire threat across most of Australia, spring is usually Queensland’s most dangerous period.

Wallace said newly acquired mobile uploading devices for frontline fire fighters would ensure the GIS was more accurate and upto-date than ever before.

“There’s a lot of information about fires that can’t be gathered unless you are literally on the ground battling the blaze,” Wallace said.

“This will be the first fire season where fire fighters in the thick of it can transmit valuable intelligence back to the main database and access information themselves.

“Strategists in control centres will also have access to real-time information, making them more equipped to decide the best course of action.”

The system will also be used for aspects of fire prevention, including the planning of fire breaks, evacuation coordination and recovery efforts.

The solution compiles information from internal sources and external organisations such as the Bureau of Meteorology, Department of Transport and Main Roads, and Geoscience Australia.

Wallace said GIS was multifaceted and included data gathering and posting technologies but a key component was the mapping software.

“The visual nature of GIS lends itself to fire fighting because having a greater idea of the location of the fire front and how close it is to people, assets and environmental variables is crucial to the work of QFRS,” Wallace said.

“It’s also crucial that the information accessed by QFRS personnel is meaningful during high pressure situations where

S urface terrain.

 Profile.

accuracy and timeliness of the data is paramount.

“That is why the Esri Australia GIS solution is so valuable to us its intuitive user interface allows anyone to use it, even though they may not have an in-depth understanding of the technology itself.”

Wallace said the QFRS planned to develop an online map aimed at informing the public of fire dangers and other critical disaster information.

“We are currently working on how to use GIS to better engage with the community,” Wallace said.

“That’s already happening, in line with the State Government’s Prepare, Act, Survive campaign, and will be up and running as soon as possible.”

Esri Australia has a 33 year history of providing location intelligence and data mapping solutions that help organisations make smart business decisions.

Geographic Information Systems are a key piece of technology used in thousands of organisations Australiawide from the military and Government, to the insurance and mining sector.

Australian Forests & Timber News, February 2012 – 25

FIRE PROTECTION

Emergency breathing apparatus for forestry vehicles operators T

HE POTENTIAL for fire is ever-present in forestry environments and first-class safety equipment and procedures are essential.

Considering the heat generated from non-stop operation, heavy forestry vehicles can be particularly susceptible to fire.

In the event of a fire, toxic fumes can permeate into the cabin and the immediate surroundings, potentially leaving a vehicle operator with insufficient air to breathe. The ELSA (Emergency Life Support Apparatus) escape breathing apparatus from Scott Safety is designed to aid escape from hazardous atmospheres such as fires. The apparatus is simple to put on in an emergency situation and provides powerful protection from harmful gases.

Providing breathable air, the ELSA escape breathing apparatus consists of a compressed air cylinder, a supply hose to air hood and stowage bag. The air supply is automatically activated upon opening the stowage bag.

The ELSA escape breathing apparatus features a duration

whistle to alert the user if the air supply is running low and the carbon dioxide levels within the air hood exceed the performance specification.

The specially designed stowage bag can be made from either a high visibility PVC coated material or an anti-static black polyurethane material.

The transparent window allows for inspection of the cylinder contents gauge and activation pin, without opening the bag.

Wormald is the major Australian and New Zealand distributor of Scott Safety products.

Operating in nearly 40 locations throughout Australia, Wormald designs, manufactures, installs and services fire detection and protection equipment to a wide variety of industries including building and construction, mining, healthcare, military, oil and gas, leisure management, corporate, education and IT&T. Wormald also provides a comprehensive range of fire services from engineering advice to fire safety training.

Diverse Country.

Common Ground THE AFAC and Bushfire CRC Conference, Australasia’s premier emergency management conference, staged by the industry, for the industry, will be held at the Perth Convention and Exhibition Centre, West Australia, 28-31 August. The theme of this year’s conference is Diverse Country. Common Ground.

The conference program addresses key issues facing our sector and contributes to a knowledge sharing and learning culture within fire, land management and emergency service agencies, and across the broader industry.

The 2011 conference, held in Sydney, attracted more than 1400 delegates from across Australia, New Zealand, the Asia-Pacific Region, the US and Europe.

AFAC represents all fire, land management and emergency service agencies in Australia and New Zealand. The Bushfire Cooperative Research Centre is the peak research body for the fire industry in this region.

Key activities across the four days include: • Research Forum - 28 August • Two-day conference program – 29-30 August • Professional Development Program - 31 August

Keeping safe in State forests WITH WARM temperatures and fire conditions starting to pick up again across south-east NSW, Forests NSW is reminding visitors and the local community to take care in State forests. “It is essential at this time of the year that forest visitors are well aware of fire conditions and do not start wild fires, so they can stay safe in the forests and also help protect a very valuable community asset,” Forests NSW regional manager Mark Chaplin said.

“Forests NSW has a system of early detection and quick response to bushfire outbreak and it’s most effective when assisted by reports from forest neighbours and the public.

“Fire detection infrastructure in south-east NSW includes fire towers manned by the Forests NSW and Department of Sustainability and Environment Victoria, aerial surveillance and forest industry personnel.”

He has urged the public to respond quickly and accurately to any signs of fire.

“All bushfires should be reported on the emergency 000 telephone number,” Chaplin said.

“Forests NSW officers work closely with the Rural Fire Service and other fire authorities to act on reports of fire.

The strong cross-border arrangements between NSW and Victorian authorities, also makes for an effective response to fire reports on both sides of the State border.”

He said a key strategy in addressing fire threat was the strategic use of contract aircraft.

“These resources are coordinated regularly between Forests NSW plantation areas across the State, based

on prevailing fire threats. A helicopter will frequently be based at Bombala in the coming months to assist with surveillance and initial attack in the event of a fire starting,” Chaplin said.

“Forest visitors are reminded to listen to the radio where possible for emergency updates, keep in touch with relatives, and adhere to forest signage regarding fire restrictions such as Solid Fuel Fire Bans, which are now in place.”

Chaplin said the harvesting and haulage of plantation timber recommenced at full strength during early January, and he reminded the community to take care on forest roads. The Monaro Region produces more than 620,000 tonnes of plantation wood each year and heavy vehicles will be more active in the region.

January marks the commencement of new contracts for harvest and haulage of plantation wood in the Bombala area and a key part of these agreements includes the provision of fire safety equipment, and safety planning for haulage routes.

“The responsiveness and quality of local forest contractors has been impressive, with the ongoing investment in earthmoving and the recent arrival of some of the most modern forestry machinery in the industry,” Chaplin said.

“In addition to protecting assets and local communities, this investment provides a continuation of work and economic stimulation in rural economies.”

26 – February 2012, Australian Forests & Timber News

FIRE PROTECTION

Better landscape management needed to prevent forest fires Fire management will require increased investment

C

OUNTRIES NEED to pay more attention to fire management on lands bordering forests in order to prevent the 95% of wildfires that originate from human activities in forests and adjacent areas, an international partnership for forests has warned.

The Collaborative Partnership on Forests (CPF), which consists of 14 international organisations and secretariats, issued its warning as many countries are experiencing an increasing incidence in the frequency and size of wildfires due to lack of fire management policies and impacts of climate change.

“In many cases the fire starts on agricultural or pasture lands and spreads quickly on nearby forests,” said Pieter van Lierop, an FAO expert on forest fire management. “When people continue to burn rubbish and agricultural waste, clear lands

by burning vegetation for agricultural or development purposes, or burn pastures to allow grass to sustain its high productivity, there is always a danger of large-scale vegetation and forest fires particularly under dry and hot weather conditions,” he added. “There are practical things that can be done to reduce the risks of fire escaping from agricultural areas.

Integrated landscape management approach to prevent fires It is vital to think about fire prevention and suitable use of fire not only in forests but also through other parts of a landscape, in particular land in the vicinity of forests. For example, people should try to avoid establishing large homogeneous forest areas in

regions with fire-prone vegetation, which usually exacerbate fires, and instead maintain mosaic landscapes with natural firebreaks provided by combining different land-uses.

Burning agricultural waste early in the dry season before the surrounding landscape gets too dry and avoiding burning during high winds will help avoid big wildfires.

Activities on lands on or around peat soils require control. For example, mega-fires in the Russian Federation last year damaged more than 14 million hectares, killed more than 50 people and became almost uncontrollable mainly because nearby peat lands had been drained for irrigation of adjacent agriculture lands. This in turn affected the neighbouring forests, which also became drier.

Experience has shown dried peat land fires to be nearly impossible to extinguish.

More funds needed for fire management CPF stressed that frequency and intensity of forest fires could be reduced by including fire management in broader landscape management strategies and through more integrated approaches to fire management -- this includes not only fire suppression but also fire prevention, controlled burning, early warning and preparedness.

All require increased investment.

“As most fires are started by people, countries should invest more in integrated firemanagement strategies, especially in the often overlooked area of prevention,” said van Lierop. “Local communities should be trained on how to prevent vegetation fires throughout the whole year and not only during the fire season. More attention should also be given to monitoring wildfire carbon gas

emissions as a potential contributor to climate change.”

Countries should also invest in research on the social and economic drivers of fire to be able to improve the way they are addressing the underlying causes of fires. Ongoing research at CIFOR is showing that the preconceived notions of why and how fires start are not always right and at best managers only generally understand a part of the picture.

FAO is now forming a multidonor trust fund program to raise funding to respond better to member countries’ demands.

The International Tropical Timber Organisation (ITTO) published guidelines on fire management in tropical forests in 1997 that provide a basis on which policy-makers and managers at various levels can develop programs and projects to address specific national, socioeconomic and natural problems related to fire in natural and planted tropical forests.

Fire fighting forces boosted with temps FORESTS NSW has employed 11 temporary fire fighters to help protect the State’s valuable pine plantations and surrounding communities around Bombala and Moss Vale.

Forests NSW Resource Protection and Infrastructure manager, Jason Vincent, said employing temporary labour helped Forests NSW ensure it was well prepared for the fire season.

When not actively fighting fires, these people will be employed on a wide range of activities including weed spraying, clearing fire trails and other maintenance jobs around the forests and plantations.

Vincent said the temporary employment was a good introduction to fire fighting.

Forests NSW provides accredited training for fire fighting, four-wheel driving, herbicide application, and OH&S, as well as numerous other valuable practical skills.

Vincent said Forests NSW fire fighting crews could be deployed across the State when necessary.

“Temporary employment is at times extended beyond the fire fighting season to help Forests NSW with its extensive hazard reduction burning program in autumn,” he said.

Two fire training days to be held in Green Hills State Forest near Laurel Hill on Wednesday 7 and Thursday 8 of December will help prepare Forests NSW staff in the Hume Region for the coming season.

N ew seasonal staff employed by Forests NSW in the Monaro Region are (l-r) George Reed (Bombala), Michael Webb (Moss Vale), Paul

Sedgbeer (Moss Vale), Daniel Marrapodi (Bombala), Nick Buckman (Bombala), Kyle Abbott (Bombala) and Shane McQuillan (Moss Vale).

Almost 100 Forests NSW staff from across the region covering Tumut, Batlow and Tumbarumba have taken part in fire training days.

“These fire training days

ensure Forests NSW is focussed on fire fighter and community safety and asset protection,” said Forests NSW protection coordinator Rod Baker.

Baker said Forests NSW staff

were joined by fire fighters from the NSW Rural Fire Service to ensure the two agencies could work together effectively and efficiently.

Forests NSW conducted

training days across the State with training already held at Coffs Harbour, Grafton, Wauchope, Baradine, Maitland, Bathurst, Narrandera, Narooma and. Bombala.

Australian Forests & Timber News, February 2012 – 27

BIOENERGY & CHIPPING

The case for forest biomass

By Suz-Anne Kinney Forest2Market

I

NCREASINGLY, RENEWABLE energy sources are coming under scrutiny. Ironically, the same activists responsible for the movement away from fossil fuels and toward renewables are now working to undermine planned renewable energy facilities. They are filing lawsuits to stop wind and solar farms, smart grid construction and biomass power plants.

As an environmentalist and someone who works in the forestry and bioenergy industries, my question is: once we eliminate everything we don’t want in our backyards, how will we meet our renewable portfolio standards? How will we meet our energy needs?

I’m not the only one asking this question.

Twenty-seven states currently have renewable portfolio standards. And because opposition to even the most benign energy sources is growing, these states are now struggling to figure out how to reach their renewable generation goals.

Environmental interest groups aren’t helping. They seem unable to work toward the only goal that will save the planet—the development of long-term sustainable paths to a secure, renewable and clean energy future. They are making the perfect the enemy of the essential.

I understand that developing a longterm sustainable path to a clean and renewable energy future is a difficult undertaking. Every state, after all, has a unique mix of energy sources.

Some have abundant sun, some have abundant wind, and some have abundant forest biomass. Biomass power plants may abound in the South, where forest resources are plentiful, but North Dakota will need to find other options. Solar energy may be all the rage in sunny California, but don’t expect to see solar farms on the outskirts of Seattle.

Further complicating the undertaking—and something we must all learn to accept—is the fact that perfect energy sources don’t exist. All of our options have benefits and risks. That’s why the value of all energy sources should be measured not in terms of an ideal, but in the context of all other available and practical sources of energy.

Universally considered the cleanest energy sources, solar and wind are at the top of the list if we look only at their carbon footprints. Because they are intermittent and opportunistic, however, they are not practical sources of baseload power. With today’s technology, for instance, if we are relying on solar energy on a cloudy day, we must accept blackouts. For baseload power, states would be better off looking at forest biomass, which can be produced on demand.

But is biomass clean enough? The status of forest biomass as carbon neutral has recently been called into question. A report from the Manomet Centre for Conservation Sciences concluded that burning forest biomass (both logging waste and whole trees) in Massachusetts creates a larger carbon deficit than coal, a deficit

that requires the replacement tree to grow for 20 years (or more) before it reabsorbs that excess carbon.

Because every forest is different, however, the number of years will vary by the species of tree and the region of the country. Burning just the logging residue will take just a few years. In the South, where many

species are fast growing and the growing season is long, the number is in the 10-15 year range. In addition, larger, more expensive trees—the ones that take longer to grow—will not be used as a feedstock for biomass electricity plants; any whole trees that will be used are pulpwood size at best, ones with a 10- to 15-year rotation

length. (It should be noted that despite the publicity that has accompanied the Manomet study, the study does not look at life cycle emissions. Serious peer reviewed studies have shown that biomass is exponentially better than coal, emitting just 4% of the greenhouse gases than coal does.) On the other end of the spectrum are fossil

fuels. The amount of time required for the replenishment of oil, natural gas and coal supplies cannot be measured in decades or even centuries; they must be measured in geologic time.

By comparison, a worst case scenario of a 10-15 year resequestration period ought to be acceptable.

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28 – February 2012, Australian Forests & Timber News

BIOENERGY & CHIPPING

New machine gets the thumbs up T

he all-new Model 2250XP self-propelled stump grinder from Bandit Industries uses a heavy-duty hydrostatic motor to directly power its 20-inch diameter cutter wheel. This eliminates the need for a clutch, jackshaft, drive belt, belt tensioning system and

the many sheaves and bearings associated with those components.

The result is a competitively priced stump grinder that requires significantly less maintenance than similar machines. Less maintenance means less downtime and lower operating costs, allowing

the 2250XP to work longer with less investment in parts and labor.

“This is the same proven technology we use on our bigger stumpers and forestry mowers,” said Jason Morey, small equipment sales manager for Bandit Industries. “Hydrostatic drive is

extremely reliable and far less complicated, and it delivers plenty of power to the cutter wheel for great performance. Offering this kind of drive on an inexpensive stump grinder is something we’re really excited about, and early feedback from our customers tell

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us they’re just as excited to get this machine.”

Powering the Bandit Model 2250XP is a 27-horsepower gas engine driving two hydraulic pumps—one for the self-propelled undercarriage and one for the cutter wheel. The hydrostatic motor at the cutter wheel is a heavy-duty, 40CC unit that uses an oversize bearing to manage the side-load and shock loads associated with stump grinding. With no clutch to operate, engaging the cutter wheel is literally as simple as pushing a lever. Easy-to-use machinemounted controls are intuitive and positioned to provide good visibility while grinding, allowing the operator to take full advantage of the 2250’s capabilities. At just 1500 pounds this is one of the lightest four-wheeled stump grinders available, and with large flotation tires the 2250XP can easily traverse delicate lawns without damage. A maximum width of 35 inches means the 2250XP is also extremely maneuverable in close quarters, and its combination of compact size and light weight make for easy transportation by virtually any vehicle.

BIO BRIEF Put a bit of timber in your tank!

NORWAY-BASED companies Statoil Fuel & Retail (Scandinavia’s top fuel retailer) and timber firm/ cellulosic ethanol producer Borregaard have signed an agreement to introduce Norwegian timber-based ethanol to drivers in Norway. As part of the agreement, all ethanol produced at Borregaard’s biorefinery in Sarpsborg, Norway, will be purchased by Statoil and used in the company’s E5 blend at retail stations throughout the eastern region of the country. Borregaard currently produces about 44,000 litres of ethanol each month at the Sarpsborg plant using a technology the company developed that extracts sugars from wood for fermentation to ethanol. Until signing the deal with Statoil, Borregaard had been shipping its ethanol to nearby Oslo for use in heavy-duty vehicles and buses. The agreement with Statoil expands the availability of Borregaard’s homegrown ethanol to light-duty vehicles as well.

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Australian Forests & Timber News, February 2012 – 29

BIOENERGY & CHIPPING

Bioenergy boost for Queensland Q

UEENSLAND AIMS to be a leader in the production of biobased industrial products and technologies in the AsiaPacific region within the next eight years, according to the Minister for Agriculture, Food and Regional Economies Tim Mulherin.

And he forecasts the sector could contribute up to $1 billion to a clean and sustainable economy.

The move has been given the thumbs up from Andrew Lang, one of Australia’s foremost advocates for the utilization of biomass. “Finally, the potential of biomass to energy is being recognised by a State in its strategic planning,” said Andrew.

Then he took aim at the decision makers in the corridors of power … “Producing clean safe baseload energy using residues and wastes seems a no-brainer but awareness of the scope has been puzzlingly slow -one might say ‘retarded’ or ‘cynically impeded’ - at State level or Federally.”

Bio-based products are playing a pivotal role in transitioning a global fossil fuel dependent

economy to cleaner, greener alternatives.

“Technology that supports the production of bioenergy is proven and capable of producing energy now, with greater advancements under development,” says Stephen Schuck, manager of Bioenergy Australia, and added

“We are also investing $9 million to support Mackay Sugar in increasing its electricity generation from sugar cane waste, which will help supply 30% of the Mackay district’s electricity.

“We’ve provided $3.1 million to establish the Mackay

We’ve provided $3.1 million to establish the Mackay Renewable Biocommodities Pilot Plant that a greater understanding and investment into bioenergy was vital in ensuring Australia’s low carbon future.

The Minister said Queensland was well placed to capitalise on the worldwide trend and the Bligh Government had already invested in a number of bioenergy projects.

“We have bioenergy plants generating electricity from wood waste, sugar cane waste and even macadamia nut shells,” he said.

Renewable Biocommodities Pilot Plant and $1 million has been allocated to James Cook University and MBD Energy for a groundbreaking trial that uses algae to soak up carbon emissions from the Tarong Power Station, which also produces a range of valuable co-products such as biodiesel, animal stock feeds and bio-plastics.”

The Minister said $2 million had also been provided in innovation funding to the University

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of Queensland’s Australian Institute for Bioengineering and Nanotechnology (AIBN) to research the production of aviation biofuels from a variety of feedstocks, including sugarcane juice and bagasse, oilseed trees such as Pongamia, and algae.

“Queensland is ready for business in the bio-based sector,” he said.

“The industry is working to make the most of Queensland’s abundant renewable energy resources - including solar, geothermal, biomass, wind and hydroelectricity.

“These resources will play a key role in meeting the energy demands of Queensland’s growing population, creating a new green jobs-based industry, and helping to reduce greenhouse gas emissions.”

The Minister said an important achievement was that Queensland’s renewable energy capacity had jumped 54% since 2008, from 745 megawatts to 1,147 megawatts.

“That equates to almost 8% of Queensland’s total generation capacity and almost 10% of Australia’s total renewable

Q ueensland Minister for Agriculture, Food and Regional Economies Tim Mulherin.

energy capacity,” Mulherin added.

“That means we are on track to achieve our own target of 20% renewable energy by 2020.”

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30 – February 2012, Australian Forests & Timber News

BIOENERGY & CHIPPING

Six themes at World Bioenergy Supplier of technology and solutions for the biofuel industry

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HERE WILL be six different themes during the three days of the 2012 edition of World Bioenergy (29-31 May) at Elmia, Jönköping, Sweden.

World Pellets: A three-day “conference in the conference” covering all aspects of pellets, from raw material potentials, via innovative pellets production systems to trade and market development.

Market outlook: What policy and targets for renewable energy to create a demand for sustainable modern bioenergy? Where are the future markets and which will be the most important feedstocks.

Energy Systems: This theme focuses on technical development in the whole bioenergy chain, from harvesting of forest residues to combustion technologies and co-firing.

Transportation: How will the transport sector evolve within the coming years? Which are the sustainable fuels of tomorrow, how rapid will the market development be and when will we see a majority of green cars and trucks on the market?

E lmia.

Biorefinery: Biorefineries with co-production of liquid, gaseous and solid biofuels with power, heat and chemicals for efficient and optimal use of biomass is the way forward. Strategies, business models, and technological choices are numerous.

Sustainability Day: Can we achieve a sustainable market growth for modern bioenergy? How can we support and verify sustainability? The last day of World Bioenergy is dedicated to sustainability. World Bioenergy 2012 closes with a high profile panel debate, focusing on the best way forward for modern sustainable bioenergy.

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Australian Forests & Timber News, February 2012 – 31

BIOENERGY & CHIPPING

From waste biomass to advanced refineryready crude oil in less than 30 minutes A

MAJOR airline and a global publication paper company have already expressed strong interest in a new Australian invention that can turn waste biomass into valuable, refinery-ready bio-crude oil within a 30 minute proprietary transformation technology called ‘Catalytic Hydrothermal Reaction’ (CAT-HTR).

Virgin Australia has signed an MoU to work with Licella on exploring the potential of the new system to create an alternative, sustainable source of jet aviation fuel.

After inspecting and officially opening the demonstration plant at Somersby north of Sydney, Federal Minister for Resources and Energy Martin Ferguson announced that Norske Skog Australasia and Licella had formed a new joint venture company called Licella Fibre Fuels (LFF).

LFF has the exclusive global license to CAT-HTR technology to transform multiple biomass feedstocks, including forestry residues, agricultural waste and energy crops into bio-crude oil.

This exciting joint venture will hopefully lead to construction of a large-scale ‘second generation’ bio-crude oil production plant in either Australia or New Zealand and planned continual expansion globally.

Licella and Norske Skog have also been working closely with New Zealand Trade and Enterprise and Air New Zealand for opportunities for the technology in New Zealand. z The CAT-HTR Commercial Demonstration Plant at Somersby is the result of three years of successful trials of an earlier pilot facility.

Licella’s bio-crude oil is an advanced renewable equivalent to fossil crude oil and has the benefit of being able to be dropped into existing refinery infrastructure. If constructed, the first commercial-scale plant could produce up to 500,000 barrels of biocrude per annum, ideally suited to being refined into second generation biofuels including petrol, diesel and jet fuel.

Second generation biofuels do not rely upon food crops as production feedstock and are widely regarded as

the most viable near-term supplement to petrochemical refineries’ growing heavy dependency on imported fossil fuel products.

It is anticipated that the CO2 life cycle emissions from the bio-crude oil will be 60% less than fossil fuels.

Good to see such close cooperation between different sections of industry and Government.

Rob Lord, director of Norske Skog Industries Australia, said the company had been interested in emerging technologies for the production of biofuels for some time and was therefore very pleased to be a partner in the demonstration plant.

“This is an exciting opportunity and it is good to see such close cooperation between different sections of industry and Government.

“We look forward to reviewing the results of the planned trials over the next 12 months and hopefully progressing things further from there.

“There is still much work to be done,

Biochar plays dual role Biochar has the potential to help mitigate Australia’s greenhouse gas emissions while benefiting agricultural production,” said the Minister for Agriculture, Fisheries and Forestry, Senator Joe Ludwig when announcing $2 million in competitive grants for biochar research, under the Australian Government’s Carbon Farming Initiative.

Biochar is the carbon-rich solid product resulting from the heating of biomass in an oxygen-limited environment. As part of bioenergy production, it is the solid coproduct that can be used for energy, carbon sequestration or agronomic applications. Biochar is chemically and biologically more stable compared with the organic matter from which it was made.

“The grants will fund the research needed to investigate how biochars can reduce carbon emissions, and to support the development of biochar offset methodologies.

“These methodologies will enable land managers to participate in carbon markets through the Carbon Farming Initiative (CFI).”

The Biochar Capacity Building Program is a key part of the Australian Government’s $45.6 million CFI. “Together with the $1.7 billion Land Sector Package, the CFI will develop opportunities for Australian farmers and land managers to generate credits that can be sold in domestic and international carbon markets,” the Minister said.

“By selling these credits, farmers and landholders can receive an income for taking action to reduce

Australia’s carbon emissions.”

Carbon credits represent abatement of greenhouse gases which is achieved by: • Reducing or avoiding emissions, for example, through capture and destruction of methane emissions from landfill or livestock manure, or • Removing carbon from the atmosphere and storing it in soil or trees, for example, by growing a forest or reducing tillage on a farm in a way that increases soil carbon.

They are usually purchased and used by individuals or companies to cancel out or ‘offset’ the emissions they generate during their day-to-day life or normal course of business, for example, by consuming electricity or catching a plane.

Carbon credits can be used to offset emissions voluntarily or to meet regulatory requirements.

Offset projects established under the Carbon Farming Initiative will need to apply methodologies approved by the Government.

These will contain the detailed rules for implementing and monitoring specific abatement activities and generating carbon credits under the scheme.

Methodologies can be developed and proposed by private project proponents, as well as Government agencies.

The Australian Government is working with industry and other stakeholders, State Government officials and technical experts to develop offset methodologies that have broad application. These

but this plant is an important step forward in scaling up the technology to a commercial level,” Lord said.

Minister Ferguson also announced that Licella and Virgin Australia had entered an MoU to jointly explore potential for an eventual commercial

M inister for Agriculture, Fisheries and Forestry, Senator Joe Ludwig.

methodologies are expected to be approved and rolled out progressively from scheme commencement.

An independent expert committee, the Domestic Offsets Integrity Committee, has been established to assess offset methodologies proposed under the scheme and provide recommendations to the Minister for Climate Change and Energy Efficiency on their approval.

The Committee will ensure that methodologies are rigorous and lead to real abatement.

The Minister said the Biochar Capacity Building Program would help attract further research from scientists and independent experts and significantly expand knowledge of biochar and identify potential opportunities for landholders.

The Biochar Capacity Building Program is one of several Government programs that support new research, on–the–ground testing and demonstration of biochar in agriculture and forestry.

off-take agreement for sustainable jet fuel refined from Licella’s bio-crude oil.

Virgin Australia is collaborating with a number of interested parties to research and develop bio-derived renewable fuels that can be used to progressively replace conventional aviation fuels.

Virgin Australia Group Executive of Operations Sean Donohue said Licella represented a promising step towards a local aviation biofuel industry.

“By pioneering the use of water technology, Licella’s CAT-HTR offers a cleaner, faster and more costeffective alternative to processing biomass that is the first of its kind in the world. We were particularly drawn to Licella because its activities support Australian jobs, rural communities and our natural environment.

“Virgin Australia’s strategy on sustainable aviation fuel is to work with a range of stakeholders across the industry - we know there will be no “magic bullet” and that creating financially viable biofuel will involve a range of feedstocks and processes.”

Licella’s parent company, Ignite Energy, has determined that Licella will become an independent entity that will continue to exclusively focus on the commercialisation of bio-crude production projects in the Australasian region and around the world.

“Licella’s potential fasttrack through to large-scale

commercialisation of our breakthrough, wholly Australian CATHTR technology and associated systems, bears testimony to the high level of commitment by the private sector and by the Federal Government to finding alternate supplies of crude oil to reduce emissions and to wind back some of the $25 billion per annum in fuel imports Australia expects to reach by 2015,” said Dr Len Humphreys, Licella chairman and the CEO of Ignite Energy.

The Somersby demonstration plant was partially funded ($2.3 m) by the Federal Government’s Second Generation Biofuels Research and Development Grant Program.

“While the private sector has done the heavy lifting to get us this far there is no doubt it would have been impossible to complete this potentially energy game-changing facility without the unwavering commitment and support of the Federal Government and the Resources and Energy Minister Martin Ferguson.

“I also want to acknowledge the exceptional contribution made by our long-term advisor on CAT-HTR, Professor Thomas Maschmeyer of Sydney University.

“Today, however, we pay particular tribute to a great man who helped show us how to make our synthetic crude oil a ‘drop-in refinery-ready’ product, Dr Ian Maxwell, who sadly passed away in April,” Dr Humphreys said.

Licella CEO, Steve Rogers, said “Licella expects to form additional joint venture partnerships similar to the one with Norske Skog with suppliers of sugar cane waste and algal biomass in order to ramp-up bio-crude oil production through construction of future large-scale commercial production facilities.

“Should this occur, very significant numbers of jobs could potentially be generated in regional Australia and NZ."

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32 – February 2012, Australian Forests & Timber News

CRC FORESTRY

Harvesting produces sufficient biomass residue for energy production A

CRC for Forestry study suggests wood residue left on the ground after plantation harvesting is of sufficient quantity to consider extracting as a separate

product for electricity generation.

Research carried out in January this year in a one hectare area of a 30 year old radiata pine plantation in Tasmania’s Tyenna Valley found

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that up to half the biomass residue consisted of small logs which could be used to produce energy.

Of the 239 green metric tonnes (GMt) of biomass residue in the one hectare plot, 110 GMt comprised stem wood offcuts less than 10 centimetres in diameter, with the rest consisting of branches, needles and bark.

“Though the machinery needed to extract and transport this type of biomass residue is not used in Australia, it is worth considering ways of exploiting this potential new energy source,” said Mohammad Ghaffariyan, a CRC researcher who led the study.

“The study indicates that biomass left from harvesting can be used to produce energy if we have the right machinery to exploit the opportunity,” said Dr Ghaffariyan. “It’s certainly worth exploring whether it would be costeffective for industry in Australia to extract the residue for use as an energy source, as is done in parts of Europe.”

The study also examined the impact of tree size, extraction distance and the slope of extraction tracks on the productivity of harvesting machines. It found that the experience of the person operating the machinery was a

key factor in the efficiency of a harvesting operation.

“Choosing the most experienced and best-trained machinery operators appears to be a key factor in the efficiency of a harvesting operation,” said Dr Ghaffariyan.

The total yield from the study site was 526 GMt of pulpwood from 1081 logs. Longer extraction distances resulted in lower productivity, and larger log sizes produced higher productivity.

The study was supported by Norske-Skog, which provided its plantation site, equipment, and other resources.

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Australian Forests & Timber News, February 2012 – 33

CRC FORESTRY

CRC leads Gippsland silviculture workshop M

ORE THAN 25 researchers and plantation managers attended a Program 2 workshop and field tour in December to review CRC silvicultural research that has examined production of sawlogs and veneer logs in Eucalyptus globulus and E. nitens.

The two-day event included workshop sessions at Churchill, Victoria, and visits to two research field trials within the Gippsland eucalypt plantation estate of Hancock Victoria Plantations.

The silvicultural research trial at Carrajung, in the Strzelecki Ranges, examines the combined influences of pruning, thinning and fertiliser treatments, imposed at three years of age, on the growth and water use of E. nitens on a highly productive site. University of Melbourne researcher Dr David Forrester, who led the study, explained that pruning leads to a greater reduction of growth in thinned stands because lower

canopies of unpruned trees in the unthinned stands are shaded and contribute less to tree growth than lower canopies in the thinned stands. Nonetheless, thinning had the greatest impact on tree growth in this experiment. Five years after thinning, the dominant ‘final crop’ trees in the thinned, unfertilised treatment area were larger in diameter than those in the unthinned, unpruned fertilised treatment. The study shows how these treatments could be applied to design more efficient and faster growing plantations.

By the age of nine years, the trees on this highly productive site had attained an impressive size. Dr Forrester is now researching how different silvicultural treatments interact on less productive sites.

Other presentations during the workshop also focused on the effects of thinning, pruning and fertiliser on wood properties and log value.

Participants also visited an

interesting trial of E. globulus near Boolarra, conducted by the Southern Tree Breeding Association. The area had been thinned and pruned at four years of age to convert it to a ‘sawlog’ regime in order to study the genetic control of sawlog and veneer traits. CRC researchers from the University of Tasmania and the University of Melbourne have assessed stem straightness in this trial, and in a sister trial in western Victoria. UTAS researcher David Blackburn reported that there are good prospects to improve straightness in E. globulus plantations grown for solid wood by breeding – an important finding as log straightness can enhance wood recovery and value in this species. Newly developed methods for objective assessment of log straightness were presented.

These important field trials will increase understanding of how silviculture and genetics determine log, stand and product value.

2012 AUSTRALIAN FOREST PRODUCTS ASSOCIATION

www.forestryfinanceevents.com

34 – February 2012, Australian Forests & Timber News

New skidder in chipping operations is a real work horse P

AUL MORGAN, operations manager of the Kevin Morgan Group, said Casegrande Lumber (an internal company of the group) was after a big, reliable skidder to feed a mobile chipper, so, he opted for a Tigercat 630D “It was a new addition to the fleet of machines being used in the Green Triangle of SA,” he said.

And he’s been suitably impressed with the latest acquisition.

“The machine’s everything that I expected and was after... its’ got ample power and it’s very comfortable, to operate; has the turnaround seat in it; very ergonomic for the operators instead of having to turn around all the time.

TurnaroundTM, the new twoposition rotating seat, which is standard equipment for the 630D.

With all controls available, the operator can comfortably back-up while facing the rear for reduced strain, quicker travel speeds and higher productivity.

“It’s doing the job; it’s doing the job with ease,” he says, “and the power and speed of the machine is well suited.”

Casegrande Lumber’s other machines in the pine and eucalypt work areas include a couple of chippers (Petersons), a couple of Tigercat feller bunchers, a skidder and a couple of excavators.

Paul says the size of the 630D is one of its standout features ... “and the productivity of it ; It’s perfectly suited, I believe, to feeding mobile chippers the way that it’s set up.

The Tigercat D-series are billed as the most advanced, efficient and refined skidders available. The

630D is a super high production four-wheel drive skidder suited to the toughest jobs, demanding terrain, extreme temperatures and heavy loads.

Electronic control technology combined with Tigercat’s unique hydrostatic drive system allows the 630D skidder to operate at variable engine rpm, automatically increasing engine speed when additional horsepower is demanded. Smooth and continuous traction allows Tigercat skidders to operate with minimal wheel spin. The result is reduced site disturbance, longer tire life, less driveline stress and improved performance in soft or steep terrain.

The result is improved fuel economy and reduced engine noise. No gear changes are required of the operator.

The 630D has a long wheel base for increased load capacity and better stability in tough terrain, plus large dual cylinder Tigercat grapple

options with wide tip-to-tip openings.

The machine has a spacious engine compartment with excellent service access.

New purpose-built logger ticks all the boxes LATE LAST year Tigercat shipped its prototype 880 logger to its British Columbia distributor, Parker Pacific. The machine was delivered to Parker’s Prince George branch where staff hosted a three-day open house for customers to view and test drive the 880 and the feedback was first class.

“And the good news is that the 880 is available to the Australian market as a shovel logger, processor for large harvesting heads or as a loader,” said Lex McLean, Forest Centre principal.

Lex said that Tigercat undertook the 880 project to offer the marketplace a purposebuilt forestry carrier that solves many of the problems experienced by owners of converted excavators. The project involved a wide range of participants from Tigercat and Parker Pacific as well as loader and shovel logger owners and operators. Throughout the design process, review meetings were held with these groups to ensure design work was meeting everyone’s expectations.

Advanced engineering manager Grant Somerville explained that while this process lengthened the design stage the end result was a machine that met the requirements.

The prototype 880 was purchased by Blue Valley Enterprises Ltd. during the design phase of the project. “Their confidence in our abilities and patience throughout the entire project was greatly appreciated by all of us at Tigercat,” added Somerville. BVE is operating the machine near Vanderhoof, BC, and field results have been extremely positive.

From an operating standpoint the 880 is viewed as a very stable carrier with excellent

lift capacity at extended reach that performs well beyond its size classification. Operators also commented on the quiet operating environment and excellent visibility.

The 224 kW (300 hp) 880 logger can be equipped for shovel logging, loading or processing with a live heel, power clam, butt-n-top or processing attachment.

The 300 horsepower engine significantly increases machine productivity and travel speed relative to excavator conversions while delivering excellent fuel efficiency.

One of the innovative design features of the new 880 is the closed loop swing drive system. This system eliminates energy loss from swing relief valves during swing acceleration and recovers energy stored in the swinging boom and upper frame assembly during braking. The dedicated swing drive system also reserves all main hydraulic pump flow for boom and attachment functions, increasing speed and productivity. Another energy saving feature is the hydraulically driven and computer controlled variable speed, reversing cooling fan. Air intakes and outlets are large for optimal cooling airflow.

Tigercat designed a new undercarriage called the F7-163 with 334 kN (75,000 lbf) tractive effort and an overall width of 3 630 mm (143 in) with standard track pads.

The super duty FH400 track components were taken directly from the 870C series bunchers.

The cab forward design combined with the main boom curvature provides excellent visibility throughout the operator’s working sight line. The expansive, comfortable,

ergonomic cab interior is designed to minimize operator strain and fatigue during long shifts.

One of the design criteria for the 880 was to create a machine with better service access and component layout than any competing machine available on the market today. The results speak for themselves. The 880 is equipped with independent power operated

side door and roof top openings, exposing the entire engine compartment for direct and convenient access to the engine, hydraulic pumps, valves and cooling system. All daily service points can be accessed through the side door, eliminating the requirement to open the entire roof enclosure on a daily basis. The layout also separates the hydraulic system components from hot engine parts.

Australian Forests & Timber News, February 2012 – 35

United They Stand - the Northern United Forestry Group

By Sophie Gebhardt

O

N A warm day in November, I travelled to North Central Victoria, 35 kilometres north of Bendigo, to meet with some of the core members of the Northern United Forestry Group (NUFG). It’s classically dry, flat, bare countryside, not what we traditionally associate with growing trees or agroforestry.

In fact, it’s more the kind of landscape we have, for many years, associated with dying trees and ever-increasing salinity. Yet, as the Kamarooka project (see page 20 Australian Forests & Timber News December 2011) has shown, this impression of Central Victoria is not only relatively modern, and the result of a history of excessive clearing, but is one that can be reinvented, with all the attendant benefits of returning native vegetation to the land.

We met at Kamarooka, sitting in the shade of what is to become the education centre and discussing what the project means for the area and the long-term vision of the NUFG. Phil Dyson, a hydrologist from the North Central Catchment Authority, who has been involved

F rom left to right: Bill Gallagher, James Williams, Ray Pianta, Phil Dyson and Ian Rankin, NUFG. with Kamarooka since the beginning in 1998, spoke about the remarkable scientific discoveries the project has afforded and what it means for similar low rainfall/high salinity areas across Australia.

One of the most amazing facts that have emerged is that during times of low rainfall, a rising water table and heightened salinity, eucalypts are capable of transpiring salt water. As Phil says, “We had six months when there was hardly any rainfall at all and those trees were still growing and consequently the water table was going down. That started happening in 2007 after we planted in 2004, so they were only three years old when they started doing that.”

This not only speaks volumes about native trees’ adaptability to changing conditions but, as Phil says, “it’s also the changed hydrology. It’s the fact that the climate changing to a drier system took away all the water levels, so that the trees, as it turns out, are

extremely resistant to salt, but not when they are waterlogged.” It was, then, a unique combination of factors ­— with the prolonged drought one of the main contributors — that led to the realisation that high salinity is not the major cause of tree death in the region.

Dyson adds, “Now the trees are big enough, they’re actually changing the hydrology themselves. And over there, the 2005 plantation, they’re over eight metres tall.”

Ian Rankin, President and one of the founding members of NUFG, sees the results from Kamarooka as providing a much-needed scientific

Much-needed scientific basis for promoting agroforestry in the region James Williams, farm forester and member of NUFG, explained the discovery further: “You see a lot of these old swamps, they ended up with dead trees in them over the years, and everyone just said, ‘it’s the rising water table that’s killed them’. But it was waterlogging. The water was staying there for months on end and basically drowned them. Whereas there’s actually a little drain line running out through there [from the Kamarooka plantation], and it just moves that water on. So the trees don’t get that three-month drowning, and they can take what comes out from underneath quite easily.” And, Phil

basis for promoting agroforestry in the region. “We’ve got all these figures, so we can say to all those people who say that salt water will kill the trees, ‘well, no it won’t – have a look at the trees’. But we have the scientific evidence behind that growth. There was one guy who came here who said ‘Oh, I’ve known that for years and years’.

But it was based on observation and he didn’t have the scientific basis, the evidence, behind him.

And that’s the sort of thing other people will need to get support or funding for this kind of project – they need the scientific basis for what is occurring.”

T he pruning and selective  I an Rankin standing next to one of his recently pruned ironbarks.

felling saw developed by Ian Rankin, with some help from a mechanical engineer.

J ames Williams amongst his mulga plantation,

which is being grown to produce eucalyptus oil.

An element that comes across strongly in our discussion is how fond and respectful the NUFG members are of Phil Dyson, who is known as ‘Inspector Gadget’ and has a gate (‘Inspector Gadget’s Gate’) named after him at Kamarooka. There is no doubt, however, that it is Phil’s commitment and constant monitoring of the plantation, and the positive and enlightening results, that have encouraged the NUFG to expand their reach and get the message out there.

Ian says, “This is research that a lot of people have wanted to do and have attempted to do but it’s long-term research. And usually, with funding from Government departments, it’s for 12 months, and then they forget about it, because there’s no ongoing funding. But we’ve been managing with Phil because he’ll come up here and he’s just interested in the numbers. And because of the data loggers, we can just keep coming back to them and downloading the results. The research Phil’s been doing on the water table has been going since 2004, so we now have seven years of data …”

Phil adds to this, noting how science is often attended by some lucky breaks: “This screwy climate has been fantastic for sorting out how things actually work. We had this incredibly long dry period from the mid-90s up through to 2009. And then it went totally the opposite way, so 2010 was the wettest year on record.

And then in January 2011 we had the big floods come though, so it’s been really interesting to look at how the trees respond to all that.

And at the moment with the water table, anything that hasn’t got trees on it has a water table that is sitting around only a metre or 1 metre 20.

And in the middle of our plantation, which during the floods came up to the same level as everywhere continued on page 36.

36 – February 2012, Australian Forests & Timber News

United They Stand - the Northern United Forestry Group continued from page 35. else, the trees have pulled it down to about 3.8 metres.” And, as Ian Rankin interjects, “That’s not a bad drop!”

One of Phil’s favourite stories about trees’ resilience and almost magical powers of adaptation comes from 2009’s Black Saturday, during which he closely observed their behaviour from home. “I was monitoring these trees on Black Saturday and we got to about 10 o’clock in the morning and we were going through 30 degrees, and then 35 not long after that. And the relative humidity was just diving, so we had got down to about five percent and the temperature was too high and the atmospheric demand on the trees was too high, so they had to do something. So within 15 minutes they just shut down. They cut their transpiration by 50 percent and they stayed there for the rest of the day, which is akin to saying ‘I’m not going to do this …’.

So then I ran off to the plant biologist who I know and I asked her, ‘How can they do that?’ And she just explained, what all plant biologists know, that when the stomata open in the morning it’s because they get potassium pumped into the annulus around the opening and that makes it swell and open the stomata. And they produce this other substance called abscisic acid that they pump in to the same area and it just releases all the potassium and they can control how much they open or shut the valves on the leaves …”

We humans, on the other hand, as James Williams comments, “… just go off to the pub …”.

What is clear from the research and Phil’s data is that the more we know about trees’ behaviour under different climatic and environmental conditions, the better we’ll grow them, and the better the timber that will be

P hil Dyson’s (‘Inspector

Gadget’s’) sap flow monitor.

produced in the end. Bill Gallagher adds another dimension to the NUFG’s wish-list: “I think one of the things we need to do here is to start pruning some sections

K amarooka’s mixed species plantation, showing both the successful and not so successful plantings.

This level of knowledge, gained from Kamarooka and the NUFG’s own trials and observations, is of critical importance to the health of the region and to a new way of thinking

good example, don’t like these saline dispersive soil types anywhere near as much as others. So I guess some of these trials have shown that some of the species we’ve been looking at

What is clear from the research and Phil’s data is that the more we know about trees’ behaviour under different climatic and environmental conditions, the better we’ll grow them, and the better the timber that will be produced in the end. down to maybe 125 stems and then monitor them against the other part we didn’t prune and Phil will be able to pick up if that’s making any difference to the water table too. So we get some idea as to how many trees you need per hectare to keep the water table in check.”

T he solar powered transmitter that sends the sap flow data to Phil Dyson’s home monitors.

about both using and improving the landscape. Much of what the NUFG are about is matching trees to soil types, acknowledging that some trees simply don’t have the ability to cope with high salinity, or indeed the pH of 9 to 9.5 of the sub-soils in the region. When asked about the species in his plantations, James replies, “I have a range of trees — ironbark, sugar gum. I guess that I think the most important thing is that we match it to our soil types, and some of the trees, and ironbark is a

have a bit of a question mark. But we’re also finding a lot of other uses than just firewood or timber – there’s seed, eucalyptus oil, etc, etc.”

More than anything else, the NUFG is about education and opportunities for change and improvement, with the diversity of the over 50 members a good indication of the group’s inclusiveness. They also encourage city people to get involved, running educational days at Kamarooka that talk about species selection, soil preparation and tree establishment,

including a number of tree planting field days. And there is an open invitation to interested parties to attend NUFG monthly meetings, where they often have specialist guest speakers on relevant topics.

James Williams sums up the imperative behind the NUFG’s enthusiasm and vision for agroforestry in North Central Victoria: “This is more than just an opportunity; it’s something we have to do I believe. Unless we acknowledge that we’ve knocked a few too many trees down and cleared the landscape to the enth degree, I don’t think we’ll ever go forward. We can come up with all these wacky schemes but ultimately trees and vegetation have to return to the landscape.” And if this process can assist in securing a local and sustainable timber and forest product industry in Victoria, very few viable counter arguments remain.

For more information on the Northern United Forestry Group contact Ian Rankin, President, on: ranx1@bigpond.com or (03) 5488 2271.

O ne of the 200 - 400 year-old remnant trees at Kamarooka, a clear indication that trees can survive and flourish in low rainfall/high salinity regions.

Australian Forests & Timber News, February 2012 – 37

Chipper is a ‘pretty versatile bit of gear’ T

HIS LITTLE chipper punches well above its weight. We’ve put some fairly good size wood through it and its munched it up no sweat. It’s a pretty versatile bit of gear,” says Jamie Law, of the Ribbonwood Victoria operations.

He was talking about his Bruks 805.2 drum chipper combined with an EcoLog 594C forwarder.

Jamie explained that the machine had been trialled with HVP for about a year then after losing a log harvesting contract he made the approach to HVP and Johan Jaktman (principle Scandinavian Forestry and Engineering) to take on the chipping contract.

“The Bruks chipper hadn’t been worked by a contractor so we wanted to make it work like a logging operation as opposed to a trial so we wanted to put it into ‘full-on’ production,” he said.

“We got the Bruks mid-September and since then we have chipped residue in the outrows of T2s.

“Then we did a section in the same area where we used our 20 tonne excavator to cut down the smaller regen pine that was growing among the standing trees in a thinned clearfell block. We have also had it in an unthinned clearfell block just chipping residue left in the cutover from a harvesting operation. “At the

moment we’re at Stanley and we’re chipping fire salvage from the Black Saturday bushfires, and that’s whole tree lengths.

“Because of the way the Bruks is set up, we pick up residue with the forwarder grapple and poke it into the chipper. We don’t actually bring any residue to roadside. We have tried that but the versatility of this machine is really good and the product we’re targeting really suits this machine because we can go into the cutover and pick it up and put it into the chipper, chip it and then bring out the chip and then load it into the trailers. It does three jobs in one … chipper, extraction and loading all in one machine with one guy,” he said.

Jamie explained that he was constantly thinking about other ways to do the work but the introduction of more men and machinery with small production targets created higher costs.

He said the Bruks/EcoLog was ideal for the product he was targeting.

“It’s pretty good quality chip for a drum chipper. They take it to D.R. Henderson, the really good stuff they’ll use in connection with their sawmill chip to make their particle board. We send in three loads a day to them that they mix in. We also send a load to CHH in Myrtleford and that is used for boiler fuel,” Jamie said.

J amie Law, of Ribbonwood Victoria, with his Bruks 805.2

drum chipper combined with an EcoLog 594C forwarder.

When asked how the chipper handled the burnt timber, Jamie said ... “No sweat. The stuff at the moment has only got surface charcoal on it so it’s coming out really clean. It’s as dry as. The mills really like it because it’s exactly what they’re after.”

The Bruks 805.2 (twin knife drum chipper) has a. 450hp Scania motor running the chipper and that runs all the chipping, the chip accelerator, and dumping yokes, all the hydraulics pretty much to do with the chipper. The forwarder hydraulics operate the crane and the drive on the EcoLog 594C. “This little chipper punches well above its weight. We’ve put some fairly good size wood through it and its munched it up no sweat. It’s a pretty versatile bit of gear,” he said.

“Johan put on the high dumping yokes so we can position the trailers wherever we like and pull the machine up beside them and dump into them. Huge benefits there because you don’t have to build any landings to cater for it. We run three semi walking floor trailers with it.

Greenfreight does the haulage.

“I’m pretty impressed with the forwarder as far as it operates. I was unsure how it would go but since operating it I have been quite surprised at how good it is and think it is up there with other machine of similar size,” he said.

The chipping contract is virtually the start of something new for Jamie.

“This is something very different to what I’ve been used to as it’s my first time chipping. I’ve been doing it (forestry work) for a fair few years now, the harvesting and this was

something that interested me because it meant diversification and getting into the renewable energy sector.

“Every piece of wood we’ve dealt with was either going to be burnt or rotted. The forest grower wants to get away from heaping and burning and the chipper is something that’s going to eliminate that.

“This practice is well known overseas but not so much here and to get a chance to have a go at this is something that gets me excited again about it all,” says Jamie.

$120m for Gunns Green Triangle estate THE SALE of Gunns Green Triangle forest estate was due to be finalised as this edition went to print. According to a market update to the ASX, Gunns said the net proceeds of the transaction of approximately $120 million would be applied to debt reduction.

The company revised its market

G unns chief executive Greg L’Estrange

guidance for the year ended 30 June 2012 with underlying earnings before interest and tax for the year expected to be approximately $30 million. The revision from the previous guidance is a reflection of the following factors: • Marketing of hardwood sawn timber operations in Tasmania and Western Australia ceased in December 2011. The company is currently reviewing operations at its remaining hardwood timber business in Victoria.

• Operating performance from the softwood sawmills at Bell Bay and Tarpeena is being impacted by the downturn in activity in the housing sector.

Market conditions in the South East Australian region have contracted further in November and December with import competition remaining strong.

Production at both mills has been reduced to a two-shift basis to manage inventory levels.

The earnings forecast is based on this market situation not improving in the balance of the 2012 financial year.

• A reduction in earnings from the forest products business of

$10 million. This reduction is due to a reduction in forecast sales volume for the financial year to 2.2 million gmt and reduced processing margins and management fees resulting from forecast reductions in selling prices.

• Export woodchip volume for the 2012 calendar year is forecast in the range of 2.6-2.8 million gmt including softwood at 0.6 million gmt. Volume improvement is forecast to occur progressively through the 2012 calendar year, although pricing will remain under pressure. At the quoted 2011 calendar year benchmark price for Eucalyptus globulus ex Albany of $207.40 per bdmt, Australian hardwood fibre is approximately 15% out of the market in comparison to its competitors. This gap is driven by both the impact of the Australian dollar appreciation and availability of low cost wood out of South East Asian supply sources, notably Vietnam and Thailand. Forecasts for the 2012 calendar year are based on the business meeting market pricing. Demand for softwood

fibre is improving with increasing interest from Chinese customers.

Reported earnings for the year will be impacted by non-operating items including: • Costs associated with the sale and exit from business operations, currently estimated at $(2.5) million (pre tax).

• Revaluation and expenses associated with financial instruments, estimated at $(10.4) million (pre tax). $5.4 million of this cost is a non cash valuation adjustment.

• Revaluation of plantation related assets of $(89.1) million (pre tax) to reflect a reduction in current market stumpage value.

This is a non cash valuation adjustment. These assets include standing timber and rights to future cash flow from investment in MIS projects.

These value assessments are unaudited and subject to review in the finalisation of the halfyear accounts.

Underlying earnings before interest and tax for the first half is expected to be approximately 40% of the full year forecast.

Finance Facilities: The company is in negotiation with its core debt facility providers to extend existing finance facilities until 31 December 2012. The company’s senior debt facility matures on 31 January 2012. The balance of this facility is currently $340 million with approximately $216 million to be re-financed following repayments from asset sale transactions. Further information in respect of the facility extension will be provided when terms are finalised.

Asset Sales: Agreements for the sale of the Green Triangle forest estate have been executed, subject to conditions precedent including FIRB approval, with the transaction scheduled to settle prior to 31 January 2012. Net proceeds of the transaction of approximately $120 million will be applied to debt reduction. The company has a heads of agreement with a purchaser for the MIS loan book. The purchaser is currently finalising transaction due diligence with completion scheduled in January 2012. This transaction is expected to reduce debt by approximately $85 million through cash received and the retirement of securitisation facilities.

38 – February 2012 , Australian Forests & Timber News

Australian Forests & Timber Classifieds Hardwood Harvesting

Business for Sale

Located Hunter/Mid North Coast NSW. Established operation with numerous markets and ongoing contractual work. Machinery includes CAT 320CFM fitted with Hultdins Superfell, Timberjack 460 D/A Grapple Skidder with winch, Hitachi DX195 dozer with angle/ tilt blade and W6F winch, and Volvo EC240BLC Excavator fitted with VHLC grab and Cut-off saw.

Sold as a going concern, or will separate.

Sell your used equipment, advertise your tender, offer your real estate or find your next employee.

For rates and deadlines call Laurie (03) 9888 4834 or email: lmartin@forestsandtimber.com.au

For Sale

All machines currently working and available for inspection at harvesting site in Southern NSW. Prices negotiable. 0418 633 715

$252,000 + gst Tigercat L830 Feller buncher with Rosin FH885 directional felling head. New track links. 13,800hr in good condition.

$94,500 + gst

Hitachi ZX230 excavator with VHLC log grab and 3/4in cut off saw. 13,400hr in good condition. 12,840hr.

$135,000 + gst

• Stick Rack, heavy duty 12 foot wide, suit CAT ITI4, quick hitch. $5,000 + GST

Timberjack 460D 2002 mod dual arch grapple and winch. Tyres as new 98% with front chains.

9100hr machine in excellent condition.

$85,500 + gst Cat 325L 1993 mod heavy duty log grab with 404 cut off saw. Has had a out of chassis engine rebuild. In very good condition.

• 1999 Freighter 45 foot Tri Axle Drop Deck on Hendrickson air bag, electric ramps, quick removable log bolsters, good condition. $50,000 + GST • 2001 Evens A Log Trailer with exte bolsters, alloy wheels, Holland air bag suspension, light tare. $35,000 + GST • 1997 Evens B Log Trailer exte bolsters, alloy wheels, Holland air bag suspension, light tare. $35,000 + GST • 2004 Iveco 6700 Powerstar CI5 CAT @ 500hp, 18 speed road ranger, 46.160 diffs on Hendrickson air suspension, alloy wheels, viesa air cooler, BBTT hydraulics, 400,00 kms, B double road train rated, 90 tonne, very good condition. $80,000 + GST

Contact 0429 431 995

Sawdust blowers 1 off 250mm $200 2 off 400mm – stainless steel impellar blades $400 and $600 Ensign log forks with top clamps.

Fit Cat 966F loader $5,000 + GST $7,000 + GST

CML multi-rip saw model J250 18.5KW. Had little use. 12 saw blades $15,000 + GST

• 1989 CAT 518 Log Skidder with Grapple. $38,000 + GST

• Log Grapple off CAT skidder, boom arch and rams. $5,000 + GST

$2,000 + GST

Gibson linebar carriage with • Line bar unit • Hydraulic power pack • Control console • Pantagraph arms and posts • Offbear roller

Rondamat 925 profile grinder

• 2008 Timberpro 630B Log Harvester, fitted with LogMax 7000 head, squirt boom, approx 4500 hours, machine in very good condition. $350,000 + GST

• Set of Log Forks, suit CAT ITI4, quick hitch, near new. $10,000 + GST

Board unscramble

Ingersol-Rand SSR screw compressor ML 18.5 KW $3,000 + GST

0419 987 078

• 1999 Timberjack 1410 8 wheeled log Forwarder, good working Condition. $55,000 + GST

Tastec 3 saw over arbor edger complete with • hydraulic power pack • sizing and controls • main spindle motor – 100HP • switchboard and motor starters • 3 lazer lines • Infeed rolls and line bar • Outfeed picker belt and riving blade • Sawblades $25,000 + GST

$15,000 + GST

Enquiries to owner

Due to the loss of work, the following equipment is for sale

FOR SALE

FOR SALE

Chip Screen 5X5 Jondod chip screen assembly with SS sound insulated cyclone on stand $7,000 + GST

McKay Timber - Southern Tasmania Phone Contact Tony 0417 362 872

For Sale

Harvest & Haulage 4 Year Contract in Central Highlands FMA. For information, please contact Barry Quinn 03 5144 4566.

Will Separate.

Confidentiality clauses will apply.

FIREWOOD MILLS

For Information, please, call 0419-536 804 or email your postal address to info@firewoodmills.com.au

Rottne SMV 8WD Forwarder

Near new. In perfect working order Machine has only done 1900 hours.

Date new into service, May 2010.

Save $$$ on new machine. Call us for price.

Contact: Randalls Equipment Company

Phone: 03 9369 8988, 0418 356 306

New model BigX50 coming soon!

Different sizes of mills with optional feeding table. Tractor, Diesel Power Pack or Electric Power Pack driven models.

FOR SALE

$35.000+gst.

• 1984 Cat 950B Loader in good condition with Log/ Pallet forks and slip on waste bucket.

$11,000+gst.

890.1Valmet forwarder s/n 9535, 14,750 hrs. $50k+GST. Located in Tumut, NSW, in good condition and ready for work.

Contact Ian 0427 275 843 or 02 6947 5794 ah.

AVAILABLE NOW Softwood Bandsaw Processing Mill For high recovery sawmilling

FOR SALE

Australian Forests & Timber News, February 2012 – 39

$124,000+gst • 1999 Cat 962G Log Loader with slip on 8m3 chip bucket. Good condition 13,186hrs.

• Hyster H5.00XL side shift fork lift, Perkins diesel, 2 available.

$144,000+gst.

$89,000+gst.

• 2001 Cat 966G Log Loader, Finning log grab, 13,927 hrs. good condition.

• Omega 16,000Kg fork lift, Cummins Diesel, fork positioning, 2 available.

Machines located at Morwell Victoria.

Phone Gary 0407 305 073

Volvo L90 Loader

Comes complete with quick release, large chip bucket and log grapple forks.

Valen Kone VK26 Debarker In and out feed conveyors.

$88,000+GST $37,000+GST

Robinson 54” wheels heavy duty bandsaw 50hp motor, Hydraulic feed.

$12,500+GST

Forano Twin 60” Bandsaw Log Breakdown line

Top dogging. Log handling. Remote operator.

Log diameter 60cm – 12cm, 6m - 2.4m.

Hydraulic sizing 30cm – 7.5cm. $188,000+GST

Salem Twin 54” Band Resaw

Roundabout. Operator cabin. Hydraulic sizing, fence, line bar, cant turner and handling equipment.

Sawn timber transfer deck. $279,000+GST

Moreen Johnston 50” Horizontal Band Wing line

With roundabout and wing transfer deck.$44,000.00+GST

Windsor board twin edger

With laser guides, pneumatic sizing and conveyor waste transfer.

Austral Timber Group Contact Ken Baker 0438 643 992 kjb@agnew.com.au

$37,000+GST

SAWMILL FOR SALE Modern Gibson equipment redundant and of no further use.

• Cab operated Gibson, twin overhead end dogging breakdown, includes log deck all transfers, electrical, hydraulics.

• Cab operated Gibson rotary kickers automatic bench, slat conveyor, return belts, infeed, etc.

• 2 Multi saws, 1 x100 hp as new, 1 x 300 hp all with moving saws, all electric.

• 1 auto docker 2 saws each end.

• 1 Gibson air docker.

• Green chains, sleeper press.

• 1 x 54 inch Precision, John Dodd chipper, 300 hp electric, plus all electrics.

• 1 Goldsmith saw sharpener.

• 1 John Dodd rotary chipper knife grinders.

Mill is complete and can be worked. Too many items to list. Can be sold as a going concern or individually by item.

Also a complete operating firewood business, largest in NSW inspection invited.

Includes all logging gear, Excavators, Processors, firewood processors.

Contact Maurie at 02 6968 4151 or 0428 684 151 Anytime.

All the best ideas in one new head.

Check out the advancements of our 625C harvester head at AUSTimber 2012, March 29-31.