BC - Wood Pooling Plan Moves Along

That idea of pooling wood to attract processors was first introduced in mid-March by forests minister Pat Bell

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Wood Pooling Plan Moves Along

Published: July 14, 2009 11:00 PM

JUST OVER three million cubic metres of wood has been committed to an ambitious plan to attract processors to the region.

And the next step is to put out requests for proposals to use the wood, says a representative for forest licence holders.

But Elmer Derrick, the chief negotiator for the Gitxsan, which has about 300,000 cubic metres of wood under licence, and the spokesman for the Northwest Timber Cooperative, says the plan is noteworthy because it has drawn the regions forest licence holders together.

Were all paddling together and were all going to give this our best shot, said Derrick of the licence group which is made up of various First Nations groups and private companies.

He said the licencees have realized that they cannot attract wood processors because individually they dont have enough wood under licence.

That idea of pooling wood to attract processors was first introduced in mid-March by forests minister Pat Bell who said processors not only need large volumes but would be particularly attracted to a concept that includes gathering all of the wood at one location for easy and efficient use.

Bell then estimated there is about 4 million cubic metres of wood a year going uncut in the northwest because of a lack of processing facilities.

Derrick said the plan is to have formal requests for proposals issued by the end of September but that date could end up being moved.

What we really have to do is think things through here, said Derrick of potential processors and the uses they might have for the wood.

He said that a lot of people have been regarding China as a market but that the move there from rural to urban living takes wood out of the equation when thinking about tall buildings needed to house people in city conditions.

Personally, I think India because there they tend to keep people where they are, Derrick noted of village living in that country.

Also on the list is extensive contact with Canadian and B.C. Marketers, he said.

This is beyond two-by-fours and two-by-sixes. Well also need to spend time in seeing how the fibre basket we have could be used, Derrick said.

A potential list of processors includes wood pellet manufacturers, a growing industry in B.C., with the closest such company now being in Houston.

Theres also interest in the area from companies who want to burn wood to create steam to turn electricity-producing turbines.

Burning waste to create electricity ultimately depends upon how much money BC Hydro will pay, said Derrick.

A key issue for licence holders and processors is extending a licences life to 25 or more years so that lenders will know a facility has a long period of fibre security, he said.

Derrick said the licence cooperative members are pleased with the direction Bell has taken and with the energy he has put into the plan and are impressed that his officials have embraced the idea as well.

Pat Bell seems to carry a lot of clout around the cabinet table with his fellow ministers, even if it seems they have to hold their noses, said Derrick.

For the most part, the licensees are here for the long run. This is exciting, he said of the overall plan.

We are just going to have to keep working until we find something. said Derrick. There are a lot of young people around here and they do need something to do.

Additional Information

Web Site: http://www.bclocalnews.com/bc_north/terracestandard/news/50649872.html

Category: Forestry>Industry Trends

Region: BC - Canada

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