Tag: United States

Progressing Global BECCS opportunities

23 May 2023

Investors

RNS Number : 2686A
Drax Group plc
(“Drax” or the “Group”; Symbol:DRX)

Ambition for the development of over 20Mt of carbon removals – 14Mt pa by 2030

  • New-build BECCS – two sites selected in US – targeting c.6Mt pa by 2030
  • Evaluating nine additional sites in US for greenfield and brownfield BECCS
  • Option for CCS on a pellet plant – targeting FID in 2024/25, commissioning in 2026
  • Targeting 8Mt pa at Drax Power Station by 2030
  • Establishing HQ for Global BECCS in Houston, Texas

Progress on Global BECCS commercial arrangements

  • MoU with Respira for sale of up to 2Mt of Carbon Dioxide Removal (CDR) certificates
  • Other MoUs agreed for sale of CDRs – c.$300/t on small volumes
  • MoUs agreed with leading forestry and Transportation and Storage (T&S) companies

Attractive portfolio of investment opportunities

  • £7bn of strategic growth opportunities between 2024 and 2030
    • 14Mt pa of carbon removals from BECCS, pellet production and pumped storage hydro
  • Targeting returns significantly in excess of the Group’s cost of capital

2023 outlook

  • Expectations for Adjusted EBITDA(1) remain in line with analysts’ consensus estimates(2)

Drax Group CEO, Will Gardiner said:

Will Gardiner, Drax Group CEO

“The world’s leading climate scientists at the UN’s IPCC are clear – the planet cannot solve the climate crisis without the combination of reliable, renewable electricity and carbon removal technologies.

“Drax is a growing and sustainable, international business providing flexible, renewable energy and carbon removals solutions, via BECCS, which put us at the heart of global efforts to deliver net zero and energy security.

“Our plans to invest billions in critical renewable energy and carbon removal technologies will help to tackle the climate crisis and could create thousands of jobs whilst generating secure, renewable power. This investment is underpinned by our strong operational performance.”

Capital Markets Day

Drax is today hosting a Capital Markets Day for investors and analysts.

Will Gardiner and members of his leadership team will update on the Group’s strategy, market opportunities and development projects, including the progress Drax is making in the development of BECCS in North America and the opportunities this represents for the Group.

Purpose and ambition

The Group’s purpose is to enable a zero carbon, lower cost energy future and its ambition is to be a carbon negative company by 2030. The Group aims to realise its purpose and ambition through three strategic pillars, which are closely aligned with global energy policies that increasingly recognise the role that biomass can play in the fight against climate change.

The Group’s three strategic pillars remain (1) to be a global leader in carbon removals, (2) to be a global leader in sustainable biomass pellets, and (3) to be a UK leader in dispatchable, renewable generation.

Global need for carbon removals

Research by the Intergovernmental Panel on Climate Change (IPCC)(3), the world’s leading authority on climate science, states that CDR methods, including BECCS, are needed to mitigate residual emissions and keep the world on a pathway to limit global warming to 1.5oC.

All of the illustrative mitigation pathways assessed in the IPCC’s latest report use significant volumes of carbon removals, including BECCS, as a key tool for mitigating climate change. The IPCC believes that globally up to 9.5 billion tonnes of CDRs via BECCS will be required per year by 2050.

In the USA, the supportive investment environment created by the Inflation Reduction Act is stimulating action and robust pricing for CDRs.

BECCS – North America

Over the past two years, Drax has been progressing a number of work streams to develop its options for BECCS, with a primary focus on North America.

Drax has continued to develop plans for a new-build BECCS power unit capable of producing c.2TWh of renewable electricity from sustainable biomass and capturing c.3Mt of carbon per year. Two initial sites in the US South have been selected and are progressing to option, although the precise details remain commercially sensitive. The two sites combined could enable the capture of c.6Mt of carbon per year by 2030.

Total investment would be in the region of $2 billion per plant with a target FID in 2026 and commercial operation by 2030. The capital cost reflects the construction of new-build power generation as well as carbon capture and storage (CCS) systems.

The design of new-build BECCS enables a wider choice of biomass materials, including non-pelletised material, such as woodchips. Drax aims to locate new plants in regions which are closer to sources of sustainable biomass and T&S systems to permanently store CO2. This is expected to significantly reduce the operating cost of new-build BECCS compared to retrofit, as well as carbon emissions in the supply chain.

The Group is continuing to evaluate nine further sites in North America, creating a pipeline of development opportunities into the 2030s.

Commercial arrangements

The commercial model for US BECCS includes Power Purchase Agreements, long-term CDR offtake agreements and a direct pay tax incentive under the Inflation Reduction Act of $85/tonne.

Drax believes that the role of high-quality, permanent removals, such as BECCS and Direct Air Capture, will grow significantly as governments and companies take action to address their own carbon footprints. In September 2022, Drax announced a Memorandum of Understanding (MoU) for one of the world’s biggest carbon removals deal with Respira, a carbon broker. Under the terms of the MoU, Respira will be able to purchase up to 2Mt of CDRs over a five-year period from Drax’s North American BECCS projects.

Drax has also agreed MoUs with C-Zero, a carbon broker, for the sale of CDRs at c.$300/tonne.

Resourcing

To support the development of its BECCS projects in North America, Drax has hired 80 employees across the US and Canada and is in the process of establishing a Global BECCS headquarters in Houston, Texas, which will provide access to the highly skilled workforce needed to support the growth of this part of the Group.

Other developments

In addition to new-build BECCS, Drax is currently developing an option for a project to add a carbon capture process to an existing pellet plant in Louisiana. The project would have the capacity to capture over 100k tonnes of CO2 per year from the pelleting process, providing an early demonstration of the technology and creating CDRs which can help to stimulate this nascent market. The project, which has a capital cost in the region of $150 million, is targeting FID in 2024/25 and commissioning in 2026.

The Group is also assessing options for BECCS on existing non-Drax assets and is continuing to screen other regions, including Europe and Australasia.

Capital allocation

The Group has previously outlined a fully funded plan to invest c.£3 billion in two BECCS units at Drax Power Station, pellet production and pumped storage hydro.

Today, the Group expands on this plan to include two new-build BECCS plants and CCS on a pellet plant, increasing the total potential investment to c.£7 billion between 2024 and 2030.

Any final investment decisions will be subject to the achievement of project milestones, including further progress on commercial arrangements as well as clarity on regulatory and funding mechanisms.

Reflecting strong expected cash generation from existing assets and new investments, Drax can fully fund the £7bn of opportunities and return to net debt to Adjusted EBITDA below 2x by the end of 2031. Drax will also continue to assess a wider range of funding options, including project finance.

The Group remains committed to its capital allocation policy, which was established in 2017, and has delivered average annual dividend per share growth of around 11%.

The Group has commenced a £150 million share buyback programme, which is expected to complete by the end of 2023. The programme is not expected to have any impact on the Group’s medium and long-term growth plans and, beyond the current buyback programme, will continue to assess its capital requirements in line with the current policy, including the return of excess capital to shareholders.

Outlook

The Group’s outlook for 2023, as set out in its recent Trading Update, remains unchanged and provides a strong platform for long-term investment and returns to shareholders.

Drax continues to expect full year Adjusted EBITDA(1) for 2023 to be in line with analysts’ consensus estimates(2), subject to continued good operational performance.

Webcast and presentation material

The event will be webcast from 2pm (UK) and the material made available on the Group’s website at that time. Joining instructions for the webcast and presentation are included in the links below.

https://secure.emincote.com/client/drax/drax025
https://www.drax.com/investors/announcements-events-reports/presentations/

Notes:
[1] Earnings before interest, tax, depreciation, amortisation, excluding the impact of exceptional items and certain remeasurements. Excludes the Electricity Generator Levy, which is currently presented as a tax and reflected in EPS.
[2] As of 18 May 2023, analyst consensus for 2023 Adjusted EBITDA was £1,162 million, with a range of £1,100 – 1,200 million. The details of this company collected consensus are displayed on the Group’s website. Excludes the Electricity Generator Levy, which is currently presented as a tax and reflected in EPS.
[3] IPCC Sixth Assessment Report, Working Group III (2022).
https://www.drax.com/wp-content/uploads/2023/05/Company-Collected-Consensus-May-2023.pdf

Enquiries:

Drax Investor Relations: Mark Strafford
+44 (0) 7730 763 949

Media:

Drax External Communications: Chris Mostyn
+44 (0) 7548 838 896

Carbon removals is a global need. The U.S. is making it possible

Will Gardiner, Chief Executive Officer, Drax Group

20 October 2022

Carbon capture

Key takeaways:

  • Removing carbon from the atmosphere is urgent if we are to meet global climate targets
  • The U.S.’s commitment to supporting carbon removal technologies creates an opportunity for new bioenergy with carbon capture and storage (BECCS) power stations
  • The market for carbon credits is gaining increasing credibility and verification, making it a source of financing for ambitious decarbonization projects
  • Carbon markets are needed now to make investment into vital removals projects possible in the U.S. and globally

After a summer of soaring temperatures across the Northern Hemisphere, the global nature of climate change is more obvious than ever. Forest fires around the world in 2021 resulted in double the loss of tree cover than in 2001, while today more than 2.3 billion people face water stress from drought. It’s clear that the action we take to help tackle the global climate emergency must be international too.

We believe that carbon dioxide (CO2) removals will be crucial in addressing this global challenge. Experts and governments agree that in addition to economy-wide decarbonization, removing carbon from the atmosphere is critical to meeting the goal of net zero CO2 emissions by mid-century. The IPCC says 10 billion tons per year of removals will be needed in 2050 for the world to get to net zero. That’s a huge step up from the 40 million tons captured globally in 2021, but also a significant investment opportunity.

Our ambition is to remove 4 million tons of CO2 through bioenergy with carbon capture and storage (BECCS) outside the UK per year, while generating renewable, baseload electricity and supporting healthy, sustainable forests.

The likely contender for our first location? The United States. We already operate in communities across the U.S. South, employing more than 1,200 people in our sustainable biomass pellet production. Now we are preparing to build a new BECCS power station in the region.

It’s clear to us that the U.S. is an ideal market for BECCS with its long-running sustainable forest industry and range of suitable sites for permanent CO2 storage. We see the country’s efforts to retire coal by 2030 and commitment to innovation as an opportunity to build one of the largest carbon removal projects in the U.S. Our first plant could be capable of permanently removing 2 million tons of carbon from the atmosphere a year, while also generating 2-terawatt hours of 24/7 renewable power.

The U.S.’s newly legislated commitment to tackling climate change through the Inflation Reduction Act, as well as the Department of Energy’s National Renewable Energy Lab recent scenario planning for ‘100% clean electricity system’ are establishing it as the leading market to deploy new environmental technologies. And a new frontier for permanent, high-quality emissions removals.

The need for high quality, permanent emissions removals

A net zero future is only possible through the wide-spread implementation of high-integrity, carbon removals. BECCS offers this by combining low carbon, renewable biomass power generation with carbon capture technology and secure, permanent carbon sequestration.

BECCS works by generating renewable electricity using biomass sourced from sustainably managed forests that absorb CO2 as they grow. CO2 released in the generation process is captured and stored, permanently and safely, in geological rock formations. The overall process removes more CO2 from the atmosphere than it emits, resulting in negative emissions.

This allows us to offer decarbonizing industries high-quality carbon removals credits. Given the scale of CO2that must be removed from the atmosphere and the importance for countries and companies around the world to reach net zero, I believe this market for verified CO2 removal credits is a trillion-dollar opportunity.

Voluntary carbon markets have historically suffered from a lack of sustained and reliable investment due to fluctuating market prices and varying quality of the carbon credits they contain. However, increased oversight from investors, NGOs and independent bodies is encouraging credibility and integrity, prompting sustained adoption by businesses.

Will Gardiner, Drax Group CEO

We’ve demonstrated the growing appetite for carbon removals by signing the worlds largest carbon removals deal to date at New York Climate week. The agreement with Respira, an impact-driven carbon finance business, will allow it to purchase 400,000 metric tons of CO2 removals (CDRs) a year from our North American operations. This would enable other corporations and financial institutions to achieve their own CO2 emissions reduction targets, by purchasing CDRs from Respira.

Deals like these make voluntary carbon markets a more effective means of reducing net CO2 emissions by securing commitments and driving investment in projects that deliver independently verified, high-quality emissions reductions. As the global economy works towards its net zero targets, CO2 removals will be crucial in reducing the still dangerously high levels of carbon in our atmosphere today.

BECCS stands to be a powerful tool in a net zero future as the only technology capable of delivering both high quality, permanent carbon removals, while also delivering baseload renewable power. The ability to generate power with negative emissions will be crucial for increasingly electrified economies, as they move away from fossil fuels.

The potential for the U.S.  

Driven by a dynamic mix of markets, investors and engaged consumers, some of the most prominent U.S. companies are pledging to reach net zero, investing in 24/7 renewable power and other means to do so.

Technology companies like Alphabet, Apple, and Microsoft have laid out ambitious plans to decarbonize operations, supply chains, and even remove historic emissions. Other organizations, like the First Movers Coalition, include U.S. companies from a range of sectors committing corporate purchasing power to solving difficult decarbonization challenges.

This industry readiness is increasingly backed up by legislative policy action. The recent Inflation Reduction Act substantially increases the availability of the 45Q tax credit for carbon capture and storage projects, increasing their value from $50 a ton of carbon removals to $85 per ton, helping to further support the business case needed to deploy technologies like BECCS.

We believe the U.S. is on the right track to create a market in which BECCS can thrive. The Department of Energy’s National Renewable Energy Lab recent ‘100% clean electricity system’ report includes BECCS in three of the four possible scenarios explored. It forecasts the US will need between 7-14GW of installed BECCS capacity by 2035 to achieve an electricity system with net zero CO2 emissions. That equates to removals of approximately 55-120 Mt CO2 per year by 2035.

The U.S.’s established forestry commercial industry, with its credible commitment to sustainable management offers ample low-grade wood and wood industry residues to power BECCS. The country’s long-running exploration of CO2 capture and transport, and history of industrial innovations means there are the skills, supply chains, and regulatory environment to undertake ambitious new infrastructure projects.

LaSalle Forest

BECCS is a proven technology and one that can scale up sooner than any other technology. But action is needed now to make these markets that can deliver large scale carbon removals projects a reality.

Action is needed now

For responsible businesses with the desire to go further, faster, or for sectors still developing viable decarbonization routes, carbon removals from BECCS deliver real, verifiable, and permanent progress towards net zero and beyond, to net negative.

It’s encouraging to see the U.S. pass legislation that can facilitate investment into carbon removal technologies and develop the carbon credit market.

However, carbon markets must have standards that are credible both in the business community, and in the environmental and civil society. Collaboration between governments, corporations, and NGOs will be critical to ensure we create systems that can tackle the climate emergency.

We can’t afford to contemplate theoretical net zero futures. Buying and selling high-quality permanent removals is the action we need today. Now is the time to capture the opportunity and be part of the solution together.

Standing together
against climate
change

Will Gardiner, Chief Executive Officer, Drax Group

27 January 2021

Opinion
Global leadership illustration

Tackling climate change requires global collaboration. As a UK-US sustainable energy company, with communities on both sides of the Atlantic, we at Drax are keenly aware of the need for thinking that transcends countries and borders.

Joe Biden has become the 46th President of my native country at a crucial time to ensure there is global leadership and collaboration on climate change. Starting with re-joining the Paris Agreement, I am confident that the new administration can make a significant difference to this once-in-a-lifetime challenge.

This is why Drax and our partners are mobilising a transatlantic coalition of negative emissions producers. This can foster collaboration and shared learning between the different technologies and techniques for carbon removal that are essential to decarbonise the global economy.

Biomass storage domes at Drax Power Station in North Yorkshire at sunset

Biomass storage domes at Drax Power Station in North Yorkshire

Whilst political and technical challenges lie ahead, clear long-term policies that spur collaboration, drive innovation and enable technologies at scale are essential in achieving the UK and US’ aligned targets of reaching net zero carbon emissions by 2050.

Collaboration between countries and industries

What makes climate change so difficult to tackle is that it requires collaboration from many different parties on a scale like few other projects. This is why the Paris Agreement and this year’s COP26 conference in Glasgow are so vital.

Sustainable biomass wood pellets being safely loaded at the Port of Greater Baton Rouge onto a vessel destined for Drax Power Station

Our effort towards delivering negative emissions using bioenergy with carbon capture and storage (BECCS) is another example of ambitious decarbonisation that is most impactful as part of an integrated, collaborative energy system. The technology depends upon sustainable forest management in regions, such as the US South where our American communities operate. Carbon capture using sustainable bioenergy will help Drax to be carbon negative by 2030 – an ambition I announced at COP25, just over a year ago in Madrid.

Will Gardiner at Powering Past Coal Alliance event in the UK Pavilion at COP25 in Madrid

Will Gardiner announcing Drax’s carbon negative ambition at COP25 in Madrid (December 2019).

Experts on both sides of the Atlantic consider BECCS essential for net zero. The UK’s Climate Change Committee says it will play a major role in tackling carbon dioxide (CO2) emissions that will remain in the UK economy after 2050, from industries such as aviation and agriculture that will be difficult to fully decarbonise. Meanwhile, a report published last year by New York’s Columbia University revealed that rapid development of BECCS is needed within the next 10 years in order to curb climate change.

A variety of negative emissions technologies are required to capture between 10% and 20% of the 35 billion metric tonnes of carbon produced annually that the International Energy Agency says is needed to prevent the worst effects of climate change.

We believe that sharing our experience and expertise in areas such as forestry, bioenergy, and carbon capture will be crucial in helping more countries, industries and businesses deploy a range of technologies.

A formal coalition of negative emissions producers that brings together approaches including land management, afforestation and reforestation, as well as technical solutions like direct air capture (DAC), as well as BECCS, would offer an avenue to ensure knowledge is shared globally.

Direct air capture (DAC) facility

Direct air capture (DAC) facility

It would also offer flexibility in countries’ paths to net zero emissions. If one approach under-delivers, other technologies can work together to compensate and meet CO2 removal targets.

As with renewable energy, working in partnership with governments is essential to develop these innovations into the cost-effective, large scale solutions needed to meet climate targets in the mid-century.

A shared economic opportunity

I agree whole heartedly that a nation’s economy and environment are intrinsically linked – something many leaders are now saying, including President Biden. The recently approved US economic stimulus bill, supported by both Republicans and Democrats in Congress and which allocates $35 billion for new clean energy initiatives, is a positive step for climate technology and job creation.

Globally as many as 65 million well-paid jobs could be created through investment in clean energy systems. In the UK, BECCS and negative emissions are not just essential in preventing the impact of climate change, but are also a vital economic force as the world begins to recover from the effects of COVID-19.

Engineer inside the turbine hall of Drax Power Station

Government and private investments in clean energy technologies can create thousands of well-paid jobs, new careers, education opportunities and upskill workforces. Developing BECCS at Drax Power Station, for example, would support around 17,000 jobs during the peak of construction in 2028, including roles in construction, local supply chains and the wider economy.

Additional jobs would be supported and created throughout our international supply chain. This includes the rail, shipping and forestry industries that are integral to rural communities in the US South.

We are also partnered with 11 other organisations in the UK’s Humber region to develop a carbon capture, usage and storage (CCUS) and hydrogen industrial cluster with the potential to spearhead creating and supporting more than 200,000 jobs around the UK in 2039.

The expertise and equipment needed for such a project can be shared, traded and exported to other industrial clusters around the world, allowing us to help reach global climate goals and drive global standards for CCUS and biomass sustainability.

Clear, long-term policies are essential here, not just to help develop technology but to mitigate risk and encourage investment. These are the next crucial steps needed to deploy negative emissions at the scale required to impact CO2 emissions and lives of people.

Engineer at BECCS pilot project within Drax Power Station

At Drax we directly employ almost 3,000 people in the US and UK, and indirectly support thousands of families through our supply chains on both sides of the Atlantic. Drax Power Station is the most advanced BECCS project in the world and we stand ready to invest in this cutting-edge carbon capture and removal technology. We can then share our expertise with the United States and the rest of the world – a world where major economies are committing to a net zero future and benefiting from a green economic recovery.

Drax Biomass invests in greenhouse gas efficiencies

21 March 2018

Sustainable bioenergy
close-up of truck raising and lowering

We have increased the capacity at Drax Biomass Amite and Morehouse pellet plants to increase capacity and made them more greenhouse gas (GHG) efficient. Central to the projects was the addition of storage silos and handling equipment to allow increased use of dry shavings and other mill residuals. The developments included the addition of an extra truck dump at each facility to allow delivery of increased volumes of these feedstocks.

Drax biomass pellet trucks

Use of mill residuals and dry shavings reduces the energy required to make a pellet, as such material does not need to be de-barked, chipped and re-sized in the same way as roundwood. Some of the material has a low moisture content and is therefore able to enter the process after the dryer, which effectively increases the capacity of each plant. This drives down the average GHG emission per tonne of pellets produced. A key measure of this is the KWh of electricity per tonne of pellets, and we saw this reduce by about 10% in the final months of the year compared with the start of the year, with further savings anticipated.

LaSalle BioEnergy in Louisiana

At LaSalle, a significant amount of our investment is going into allowing pellets to be transported to the port by rail, rather than truck. For the 250 km trip to Baton Rouge, a significant carbon saving compared to trucks will be achieved when LaSalle reaches its capacity of 450,000 tonnes per year. Moving pellets by rail should start in the next year.

Active management of forests increases growth and carbon storage

28 July 2017

Sustainable bioenergy

A study on the historical trends in the forest industry of the US South, carried out by supply chain consultancy Forest2Market, and commissioned by Drax Group, the National Alliance of Forest Owners and the U.S. Endowment for Forestry and Communities, found that over the last 60 years, as demand for forestry products has increased, the productivity of the area’s forests has increased too. In short, the more we’ve come to use them, the more forests have grown.

A forest is not like a mine – there is not a finite amount of wood in the ground that disappears when it is extracted, never to return. Forests are a renewable resource that can be replanted, improved, and harvested for as long as the land is managed responsibly.

What’s more, landowners have a strong financial incentive to not only maintain their holdings but to improve their productivity – after all, the more of something you have, the more of it you have to sell. It is an economic incentive that works.

Six decades of growth

The Forest2Market report found that increased demand for wood is statistically correlated with more annual tree growth, more wood volume available in the forest, and more timberland.

For example, between 1953 and 2015, tree harvests increased by 57%, largely driven by US economic growth and increased construction. Over the same period, annual wood growth increased by 112%, and inventory increased by 108%. In total, annual growth exceeded annual removals by 38% on average.

Annual forest growth in the US South increased from 193 million cubic metres in 1953 to 408 million cubic metres in 2015. Inventory increased from 4 billion to 8.4 billion cubic metres.

The forest products industry funded private-public research projects to enhance the quality and performance of seedlings and forest management practices to ensure a stable supply of wood. Because of these efforts, landowners saw the value of active management techniques, changing their approach to site preparation, fertilization, weed control, and thinning, and the use of improved planting stock. Healthy demand made it easy for landowners to take a long-term view, investing in more expensive management practices up front for greater returns in the future. And the results were extraordinary: seedlings established in the last 20 years have helped plantations to become nearly four times as productive as they were 50 years ago.

A changing market

Markets for wood have changed over the last two decades, precipitated by decreased demand for writing paper and newsprint, increased demand for absorbent hygiene products and containerboard and increased demand for biomass. These changes in demand have not impacted the way that landowners manage timberland, however. As sawtimber (the largest trees in the forest) remains the most valuable timber crop, it also remains the crop the landowners want to grow. Pulpwood is harvested from the forest only when the forest is being thinned to create optimal conditions for growing sawtimber or when sawtimber is harvested and the forest is being cleared for replanting.

Pellet production has expanded rapidly in the US South, though its overall footprint is still small in comparison to more traditional forest product industries.

In some local wood basins, however, like the one surrounding Bastrop, Louisiana (the location of one of Drax’s US production facilities), the use of biomass to create pellets has filled a gap left by the closure of an 80-year old paper mill. Drax’s decision to locate in this area is integral to supporting forest industry jobs and landowners who carefully consider local demand when deciding whether to continue growing trees.

According to Tracy Leslie, Director of Forest2Market’s biomaterials and sustainability practice, “As history has shown, forests in the US South have benefitted from increased demand for all types of wood. The rise of the pulp and paper industry did not detract from landowner objectives to maximize production of higher value sawtimber nor did it result in a shift in focus to growing only pulpwood. This new demand did, however, provide landowners with important interim and supplemental sources of income. Forest2Market’s research shows that an increase in demand for pellets will have the same effect, incentivizing landowners to grow and re-grow forests, increasing both forest inventory and carbon storage.”

The real threat to forests

Not only does demand for forest products increase the productivity and carbon storage of forests and provide an incentive for landowners to continue growing trees, but it also helps counter factors that irrevocably destroy this natural resource. The real threat to forests in the US is not demand for wood, but urbanisation. Nearly half of all US forestland that converted to another use between 1982 and 2012 was cleared for urban development.

Commercial forestry protects forested lands from development; between 1989 and 1999, just 1% of managed pine plantations in the US South were cleared for non-forest development compared to 3% of naturally-regenerated forest types.

Urbanisation, not the forest products industry, places the most pressure on forests in the US South. Forest2Market’s findings demonstrate that demand associated with healthy timber markets promotes the productivity of forests and mitigates forest loss by encouraging landowners to continue to grow, harvest, and regenerate trees.

Read the full report: Historical Perspective on the Relationship between Demand and Forest Productivity in the US South. An At A Glance version plus an Executive Summary are also available as a separate documents.