This study produced a blueprint for change that is both surprising and welcome," says Lazar. "It places traditional products, especially lumber and pulp, at the heart of a new, green business model that has the potential to make the forest products industry a pivotal force in Canada's effort to become a clean energy super-power. If we follow this new model we will be able to produce power on the scale of nine nuclear reactors, enough to meet the energy needs of 2.5 million homes, or one out of every five homes across Canada."

On the employment front the research shows that an integrated mill - one that produces wood, pulp or paper as well as bio-energy and bio-materials - provides five times as many jobs as a stand-alone bio-operation. It also shows that the industry's 270,000 jobs will be best sustained by following this integrated road to recovery.

"Years of intensive research and development have produced technologies that open up a world of possibility for the forest products industry in Canada. We can now rapidly convert wood fibre into a wide variety of high-value products such as bio-fuels to heat homes or power vehicles as well as bio-chemicals to make cosmetics, solvents, food additives and renewable plastics," says Pierre Lapointe, President and CEO, FPInnovations.

Eoin Treacy's view
New Study Points to Promising Bio-Future for Canada's Forest Products Industry - This article appeared in globeinvestor.com and may be of interest to subscribers. Here is a section:

This study produced a blueprint for change that is both surprising and welcome," says Lazar. "It places traditional products, especially lumber and pulp, at the heart of a new, green business model that has the potential to make the forest products industry a pivotal force in Canada's effort to become a clean energy super-power. If we follow this new model we will be able to produce power on the scale of nine nuclear reactors, enough to meet the energy needs of 2.5 million homes, or one out of every five homes across Canada."

On the employment front the research shows that an integrated mill - one that produces wood, pulp or paper as well as bio-energy and bio-materials - provides five times as many jobs as a stand-alone bio-operation. It also shows that the industry's 270,000 jobs will be best sustained by following this integrated road to recovery.

"Years of intensive research and development have produced technologies that open up a world of possibility for the forest products industry in Canada. We can now rapidly convert wood fibre into a wide variety of high-value products such as bio-fuels to heat homes or power vehicles as well as bio-chemicals to make cosmetics, solvents, food additives and renewable plastics," says Pierre Lapointe, President and CEO, FPInnovations.

My view - The lumber industry was hit hard by the decline in North American homebuilding activity, with a large number of operations going bust. As with any other market, this supply destruction helped to create the conditions for a new bull, with demand returning to dominance from early last year.

Prices rallied to break the five-year progression of lower highs by October and have been consolidating that advance since. Lumber traded limit-up today and is now testing the upper side of the two-month range. A sustained move below $230 would now be required to question scope for further higher to lateral ranging. (Also see Comment of the Day on January 14th)