The True Value of Eucalyptus

The True Value of Eucalyptus

Traditionally used in the charcoal and pulp paper industry, the new developments in the use of Eucalyptus biomass to create a cleaner fuel source have led to the creation of a whole new interest in an outstanding species.

Focusing on high rain fall areas such as the Amazon and Brazil, the use of Eucalyptus to create a sustainable energy source has brought to light the benefit of Eucalyptus both for the environment and the economy as a whole.

Thanks to its rapid growing nature, Eucalyptus is the perfect material to create a biomass product that is more effective and more efficient than fossil alternatives.

Not only does it occur organically in many parts of the globe and act as a natural windbreak, but Eucalyptus also has the ability to grow on areas that have been previously deforested. This enables the reintroduction of green into areas that have been left baron and also protects vital areas of forest from further farming where Eucalyptus can be more efficiently and more effectively produced.

As a result, the Eucalyptus growing industry are now working closely with the indigenous people and local governments in certain landscapes to identify areas of land that the natives are willing to donate to Eucalyptus plantations in order to exploit the benefits that such production brings to the area and protect their remaining forests from further destruction.

As Eucalyptus is also able to absorb a higher level of carbon than many of its counterparts, development of new plantations also works as a natural limiter of Green House Gasses and can have a positive impact on the global footprint, meaning the entire process is kinder to the environment now and in the future.

This rapid growing species is already the most common form of pulp lumber developed in specified regions for the use in biomass energy production and its popularity is set to explode.

As well as having a strong crop density, Eucalyptus has also been found to excel using recently developed agro-forestry techniques and can produce up to 100m3 of Eucalyptus wood per hectare of land, maximising potential investment opportunities.

The ability to use the same area for regrowth again and again keeps the overall investment cost low and ensures that the rate of return is optimised for all those that are keen to invest.

In Brazil alone, growth of the Eucalyptus export industry has risen from $1 billion in the nineties to $3.5 billion in 2005 and continues to climb, attracting the attention of potential investors from across the world. The species has been identified as the hardwood tree with the most potential to create the level of biomass required to fulfil the demands of an every growing industry and interest in its possibilities continues to grow.

Current predictions suggest that the return on investment for Eucalyptus is now in excess of 20%, an excellent rate of return for private investment or pension fund growth over a medium term.

Such a high yielding crop provides environmentally and financially sound reasons for use within the bio fuel industry and creates a greater value to Eucalyptus than ever previously considered possible.

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