Investing in Forestry - Could Biofuels Revive a Slowing Market?
Enthusiasts interested in investing in forestry should be on the lookout for the Woodscape report, prepared by New Zealand's forestry crown research institute Scion, which explores the viability of generating biofuels from trees.
Jason Krupp from Stuff.co.nz explains that turning timber waste into bioplastics and biofuelsis considered the Holy Grail for the timber processing industry. If more institutional and private investors considered investing in forestry in New Zealand and tree plantings doubled, about $5.5 billion (‚¤3.5 billion) worth of biofuels could be produced every year in addition to the $4.2 billion (‚¤2.7 billion) currently generated by timber and forest goods exports.
The technology has been proven to work in a controlled lab environment but questions remain over its long-term commercial viability. Scion's Woodscape report, due to be released in Februaryand funded by the Ministry for Primary Industries and New Zealand Trade & Enterprise, will explore ways to generate the biggest return from investing in forestry with a focus on production of biofuels. Trevor Sluthridge, Scion's head of sustainable design, believes that New Zealand's rich natural diversity can help the country play a leading role in the sector: "Above the ground we have some of the biggest sustainable forest plantations, and below the largest energy resources in the form of geothermal," he commented.
Forestry economist Andres Kutz from Resource Management Services commented that previous attempts by Canadian officials to achieve sizeable returns from forestry biofuels have shown opportunities to beslim. Investing in forestry solely based on the production of biofuels remains €an untested and unproven market€.
Tasmania Opens Forest Waste to Biofuels Plant
The island state of Tasmania could become home to Australia's first plant converting timber and forestry waste into the biofuel ethanol. Forestry communities in the Huon Valley and Dorset are in official talks with the developers of technology that allows ethanol to be produced from forest waste. Alan Davenport from Dorset Renewable
Industries said the industry is in its infancy but has the potential to create many local jobs: €It's a catalyst to really kick start the timber industry again in the region. The figures that we're looking at initially are about $75 (‚¤47.6) a green tonne of product supplied to the mill, which compares very well to what they've been receiving in the past."
A plant would cost roughly $100 million (‚¤63.5 million) to build.
Jason Krupp from Stuff.co.nz explains that turning timber waste into bioplastics and biofuelsis considered the Holy Grail for the timber processing industry. If more institutional and private investors considered investing in forestry in New Zealand and tree plantings doubled, about $5.5 billion (‚¤3.5 billion) worth of biofuels could be produced every year in addition to the $4.2 billion (‚¤2.7 billion) currently generated by timber and forest goods exports.
The technology has been proven to work in a controlled lab environment but questions remain over its long-term commercial viability. Scion's Woodscape report, due to be released in Februaryand funded by the Ministry for Primary Industries and New Zealand Trade & Enterprise, will explore ways to generate the biggest return from investing in forestry with a focus on production of biofuels. Trevor Sluthridge, Scion's head of sustainable design, believes that New Zealand's rich natural diversity can help the country play a leading role in the sector: "Above the ground we have some of the biggest sustainable forest plantations, and below the largest energy resources in the form of geothermal," he commented.
Forestry economist Andres Kutz from Resource Management Services commented that previous attempts by Canadian officials to achieve sizeable returns from forestry biofuels have shown opportunities to beslim. Investing in forestry solely based on the production of biofuels remains €an untested and unproven market€.
Tasmania Opens Forest Waste to Biofuels Plant
The island state of Tasmania could become home to Australia's first plant converting timber and forestry waste into the biofuel ethanol. Forestry communities in the Huon Valley and Dorset are in official talks with the developers of technology that allows ethanol to be produced from forest waste. Alan Davenport from Dorset Renewable
Industries said the industry is in its infancy but has the potential to create many local jobs: €It's a catalyst to really kick start the timber industry again in the region. The figures that we're looking at initially are about $75 (‚¤47.6) a green tonne of product supplied to the mill, which compares very well to what they've been receiving in the past."
A plant would cost roughly $100 million (‚¤63.5 million) to build.