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Residue options for growth


The Tasmanian government is waxing lyrical on its commitment to rebuilding the forestry industry in Tasmania; claiming that Labor and the Greens all but destroyed it. Source: Forestry Expo

The government says it has been working with the industry to grow the forestry sector including finding new uses and new markets for forestry residues from the southern forests.

Peter Gutwein, Minister for Forestry said: “ We chose the EOI process to provide the widest opportunity for commercial residue options to be brought forward and tested against each other, rather than simply picking winners.

“Today, the Government is announcing that negotiations have begun with four proponents who have brought forward proposals for handling southern residues that can be up and running within a matter of months.

“Importantly the proposals offer solutions for more pulpwood than is available, thereby providing healthy competition as we finalise this process.”

The proposals being negotiated offer options to:

  • Diversify the customer base for residues from the southern forests;
  • Allow for a relatively quick start-up period for initial volumes with increased volumes into the future;
  • Consider innovative private sector involvement to be incorporated into the supply chain; and importantly,
  • Assist FT to strengthen its financial position.

Mr Gutwein said: “To be clear: there will be no wood chip pile on Macquarie Wharf. Export options from Hobart are included in the commercial negotiations and cover the export of whole logs or containerised logs or residues.

“My expectation is that these negotiations will be concluded in the coming month. While the focus now is on providing immediate solutions, over the next five years wood volumes from plantation and private forests is forecast to grow to around 1.5 million tonnes per annum.

“The Government will continue to work with proponents that brought forward longer term proposals including biomass and port options outside of Hobart to ensure that we can keep pace with growing volumes.

“The Government is getting on with the job of rebuilding forestry and growing the industry.”