Investment opportunity: 4 Million m3 per year of surplus wood available

Source:
IHB/AGTG
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In excess of 4 million m3 per annum of plantation grown (hardwood & softwoods) fibre resource is available in the Green Triangle area in the south of Australia. The area is one of the most developed plantation forestry regions in Australia and one of few regions in Asia Pacific with a significant and concentrated wood surplus.

Pulpwood, sawlogs and biomass is available from sustainably managed and certified plantations. The majority of the plantation area is managed by six entities which together form the Association of Green Triangle Growers (AGTG). As a marketing vehicle the AGTG is promoting the opportunity and seeks to find new end uses for the surplus wood.

In support of this intent, the AGTG engaged Pöyry Management Consulting (Pöyry), a global consulting firm specializing in the forest products value chain, to conduct a prefeasibility study to provide proof of concept of the different investment opportunities. Product options include integrated concepts for bioenergy, wood-based panels, engineered wood products as well as pulp and paper production. This work demonstrated that a number of wood processing options could potentially be attractive investment opportunities.

Access to Growing Markets

Markets for wood products, pulp and paper and bioenergy in Oceania and Asia have grown significantly in the last years and overall wood demand for wood products is forecast to outgrow the available wood supply. The Green Triangle is well located to service established domestic markets in Australia but also to access higher growth regions in Asia.

Excellent infrastructure and transport links

The nature of the resources and the resource ownership provides very high supply security and therefore limits risk for an investment in a state-of-the-art manufacturing site. The Green Triangle region reinforces the attractiveness of the opportunity with:

  • A long history of harvesting and processing plantation grown resources; 
  • Well-established industry service providers to the sector;
  • Good energy and transport infrastructure;
  • Access to the Asian Pacific region via the regional ports of Portland, Adelaide and Melbourne.

Accessing the data room

AGTG together with Pöyry has completed a comprehensive pre-feasibility study, including a description of resources, an analysis of potential markets and the cost competitiveness assessment of various processing options. The outcome of that work is summarized in a data room, to assist interested parties in their assessment of the opportunity. For more information and to get access to the data room please contact AGTG.

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