Page 10 - Georgia Forestry - Issue 2 - Spring 2024

investment,” said Jobe.
Already the strongest region for for-
estry in North America, the US Southeast increased its production share from 38% to 40% of North American lumber and log markets, with Canada and the US North- west in decline. The region continues to become more favorable for investment in the industry, with crippling government regulations in Canada and the US North- west leading companies to divest from the regions.
The entire US marketplace for lumber and forest products has finally seen sta- bilization in the wake of the chaos caused by the COVID pandemic, according to Jobe. The cost curve for many operations is becoming increasingly favorable.
“Whether it’s wood cost, whether it’s environmental cost [or] it’s freight cost, as that price has come down over the last year and a half, the challenge of being able to cover that cash cost is getting closer and closer for some facilities,” said Jobe.
Those cost improvements have been more favorable in the US Southeast than other regions, according to Jobe. That cost competitiveness is attracting investments and providing for a stable environment for the forestry industry in the region.
Overall, the US Southeast provides for the best matrix of cost, prices and diver- sity of products compared to any other forestry region in the world, according to Jobe.
“We are the envy of the world with our cost position and the wood basket that we have available to us across decades here,” said Jobe. “It’s a very positive story.”
FORESTRY INNOVATION
PUTS GEORGIA MILES
ABOVE THE COMPETITION
From biochar, to pellets, to sustainable aviation fuel (SAF), production of unique and innovative products in the US South- east is leading the charge for the success of the local industry. SAF in particular has presented a unique opportunity for Geor- gia to lead a quickly growing, massive market for a forest-based fuel product.
There is a concise and cohesive effort globally to reduce the emissions of airline operations, according to Jobe — one that relies heavily on the development and greater utilization of SAF.
“Today, we’re using about 300 million gallons of sustainable aviation fuel
U.S. SOUTHEAST INCREASED PRODUCTION SHARE TO
Trip Jobe, vice president of sales for forest value chain North America at Resource Wise
IN NORTH AMERICAN LUMBER & LOG MARKETS
across the globe,” said Jobe. “By 2050, the industry wants to get to 230 billion gallons of SAF. The airlines are all committed to this.”
According to Jobe, costs remain a significant challenge for SAF, which is significantly more expensive than tra- ditional jet fuel, in part due to how it is manufactured. Thankfully, new research points to a solution: wood.
Many existing biofuel products utilize crops and crop products such as sugar- cane and cooking oil to synthesize, but, according to Jobe, wood products are pre- senting themselves as both a more cost- and performance-efficient alternative.
“The exciting thing from a Georgia perspective is LanzaJet. It’s tremendous news in the industry. The feedstock that they’re going to utilize is sugarcane in that facility for their alcohol-to-jet process. But it’s a process that they’ve looked at and developed, and woody biomass has a potential to be involved in future oppor- tunities with LanzaJet and others,” said Jobe. “From the wood-based perspective, GranBio got an $80 million Department of Energy grant about a year ago. They have a pilot plant going up, utilizing wood chips, and they’re looking to then build their first production plant potentially here in Georgia.”
As the world continues to look for sus- tainable innovations, forestry continues to provide solutions — many of which are coming from here in Georgia, the num- ber-one state in the nation for forestry.
“There’s tremendous potential as Geor- gia continues to look at ways to be part of that bioeconomy, growing and utilizing our forestry industry,” said Jobe.
JOHN CASEY IS A STRATEGIC COMMUNICATIONS PROFESSIONAL WHO SUPPORTS CLIENTS THROUGH THE ART OF STORYTELLING. IN HIS DOWNTIME, JOHN CAN BE FOUND HUNTING AND FISHING ON HIS FAMILY’S CENTENNIAL FARM IN NORTHWEST GEORGIA.
40%
ZACH CLIFTON, GEORGIA FORESTRY ASSOCIATION