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Department of
State Growth


Management and Utilisation of Forest Residues

Residues Solution Study

The Tasmanian Government commissioned a Residues Solutions Study (the Study), to identify potential options to utilise harvesting and processing residues from Tasmania's forests, including native forest and plantations.  

The Study was developed with input from an Advisory Group of government and industry representatives, established specifically for the Residues Solutions Study.  

The Study was undertaken by the forestry consulting firm, Indufor, together with its sub-consultants, Enecon. The work consisted of two separate stages:

  • Stage 1 – Options identification and initial assessment; and
  • Stage 2 – Detailed consideration of identified highest priority options.

The Stage 1 Report identified and considered 23 separate opportunities. It used a multi-criteria analysis to assess and compare the options. The multi-criteria analysis considered a range of factors, including technical feasibility, market potential, economic viability, social factors, environmental sustainability, and financing requirements.

The Stage 1 Report recommended four key areas be considered in greater detail in Stage 2:

  • Processing of residues into timber products, including plywood and Glulam/Cross Laminated Timber (e.g. Hardlam);
  • Energy generation options (i.e. biomass), including stand-alone power (small-scale power generation); and industrial co-generation (site-based heating/power generation);
  • Biofuels, including biomass-based hydrocarbons (i.e. using residues to develop petrol substitutes); and
  • Wood pellets (i.e. processed pellets for power generation and heating).

Stage 2 comprised an assessment of markets, price trends, outlook for demand, feedstock availability and economic considerations relevant to the development of different processing options in Tasmania. Stage 2 identified key success factors, key challenges and potential barriers to entry for each of the processing options assessed.

The Stage 2 Report provides insights into the potential opportunities and challenges that may emerge as different processing technologies utilising wood fibre are considered in the Tasmanian context.

Ultimately, the establishment of new processing capacity in Tasmania is one for the private sector to lead.

The Study will be an important reference for the Government but one that will be also considered in light of any outcomes from the Expression of Interest process for Southern Residues.

The Study will inform the Government in its engagement with industry on new investment and provide further guidance to Government on how it can best act to support innovation and new activity in the industry. The Government will, however, continue to assess specific proposals on their own merits and in light of relevant community and market factors of the day.

Residues Solutions Study Stage 1 Report final (PDF, 1869.41 KB)

Residues Solutions Study Stage 2 Report final (PDF, 2710.58 KB)

Commercial Solutions for Wood Residues in Southern Tasmania

The Government is also, through an Expression of Interest (EOI) process, looking to the private sector to develop independent commercial solutions for the use of wood residues from public forest operations in southern Tasmania.

The existing financial support to industry for transport of southern residues will be phased out in conjunction with the development of an industry-led southern residues solution.