Forestry asset management and development for timberland owners and operators
Timberlands is a London registered private company incorporated by Active Energy Group Plc, specifically to invest in and manage and develop forestry projects internationally.
Its mission is to develop and manage undervalued and under-utilised forestry assets to the mutual benefit of the Company, local communities and asset owners, providing an innovative business model that maximises their economic benefits and creates important social and economic advantages at a local level, as well as promoting environmental sustainability throughout the supply chain.
Timberlands business model aims to create a fully integrated supply, manufacturing and logistics chain that encompass all the operations required to transform, market and distribute wood products from the forest to the end users. In comparison with typical TIMO structures, TIL’s model is different. TIMO business models are generally focused on the traditional marketing of raw materials to seek a typical 4-6% Mark to Market annual yield over the long-term, usually based on harvesting and trading out a basic Saw or Pulp Log mainly on domestic markets. Instead TIL offers a broader, more innovative approach aimed at securing a long term sustainable and environmentally responsible value increase. This is achieved through a proactive approach to production and supply chain improvements in efficiency, combined with 2nd generation markets for offtake, further along the downstream supply chain, thereby creating and retaining jobs and revenues in the local community, and not at point of market usually, overseas.
Commercial options include selling long-term tree farming permits with long-term cutting rights to independent timberland investors and timber industry firms, joint venture arrangements with third parties to create on-site logging and processing operations, chipping and pelleting as well as the potential to utilise low-grade timber and forestry thinnings for local production of Advanced Biomass Solutions coal replacement fuel.
The following is a simplified breakdown of the model and the activities involved.
Timberlands is continually evaluating potential forestry opportunities with a major focus in North America and Europe.