Forestry Model Uses Diverse Renewable Energies

Precious Woods Group, a sustainable forestry company, announced two agreements to sell 770,000 tons of Certified Emission Rights from its bio-energy project in Brazil. By leveraging its timber activities with biomass-powered electricity generation and the sale of carbon e mission reductions to Kyoto-compliant countries, the company is expecting to generate $2-3 million per year.

The “multiple asset approach” to forestry, which was developed by Forest Trends’ Business Development Facility and funded by the International Finance Corporation (IFC). This diversified approach, which results in biodiversity preservation, benefits the local community and will assist in setting and promoting new standards for sustainable forest management, particularly in developing economies. “Focusing on the use of ecosystem services, non-timber forest products and other revenue streams has proven tremendously effective,” said Andres Gut, Chairman of the Precious Woods Group. The energy plant also secures a reliable source of electricity to the grid serving remote users in the Amazon. It currently supplies electricity for a town of 70,000 inhabitants. Precious Woods Amazon now supplies waste woods from its forest operations to a local renewable energy biomass plant, of which it acquired an 80% stake in June 2005. The plant’s switch from diesel to biomass resulted in carbon emission reductions and therefore qualifies for carbon credits under the Kyoto Protocol’s Clean Development Mechanism. Additional emissions reductions are achieved from avoiding the methane that was previously released by stockpiled waste wood and from avoiding transportation of diesel into the Amazon.