One of the world’s oldest underwater forestry operations, Hydrowood, has secured “a significant investment” from two new backers, which could see it access more than 300,000 cubic metres of submerged timber in hydro lakes across Tasmania.
That is according to a Hydrowood spokesperson who said the new deal, which includes backing from the environmentally focused AMB Holdings, will help the company push further into the sub-merged timber market, a market that could be worth billions of dollars of the coming years.
Speaking to the Mercury today, Kelly Gang Timbers general manager Jye Kelly said Hydrowood was helping to support regional sawmill jobs, including his family-owned business that employs 14 locals: “Working with Hydrowood supports regional sawmill jobs” he said. “We’re proud to be part of Hydrowood’s innovative reclaimed timber story.”
Hydrowood CEO Neale Tomlin said the economic and social “ripple effects” are far-reaching and that the fresh round of capital investment means more jobs, more timber and more opportunities for Tasmanian makers, builders and processors. “Hydrowood’s supply chain touches every part of the island,” Tomlin said.
“From Mole Creek to Zeehan, Deloraine to Tullah, our operation supports contractors, truck drivers, kiln operators, mill workers, maintenance teams and more. “For every direct job we create, we estimate three more indirect jobs are supported through this ecosystem. This funding enables us to expand our harvesting operations, invest in drying and distribution infrastructure, and meet the growing demand from across Australia. Importantly, we’ll continue to do this the Tasmanian way — with local sawmills, local contractors, and timber that tells a uniquely Tasmanian story.”
The new investment follows Hydrowood’s landmark $2.1 million equity crowdfunding campaign via OnMarket in 2023, covered by Wood Central, which attracted more than 600 investors, the largest at that time in Tasmania’s history.
- To learn more about the reclaimed timber market – which could reach $74 billion over the coming years, click here for Wood Central’s special feature from mid 2023.
