Foresta Group Holdings Limited (ASX:FGH)

Foresta Group Holdings Limited is at the forefront of revolutionising the energy industry through its plant in Kawerau, New Zealand, where the company manufactures pine chemicals and pine wood pellets. Serving as a clean energy source, these wood pellets aim to directly replace coal, marking a significant shift in the approach to sustainable energy. Foresta's visionary team is committed to more than just the production of pine-related products; it is dedicated to transforming the forestry industry by implementing sustainable practices and fostering partnerships with wood pellet customers and forestry providers. The company prioritises clean and safe manufacturing processes, recognising the profound impact its products have on various markets and industries.

Foresta's commitment to sustainability extends to its operations, adopting a best supplier, best practice approach that emphasises energy efficiency and environmental responsibility. The company has developed a patented extraction process for renewable natural chemicals, utilising the natural oils of pine trees, thereby reducing extra processing and petrochemicals by nearly 25%. By increasing the potential income from pine wood, Foresta ensures a truly sustainable future while contributing to the real decarbonisation of the nation. Founded in 2017 as Essential Queensland Pty Ltd, the company transitioned its operations to New Zealand, acquiring a large-scale commercial plant in Rotorua under the name Foresta (NZ) Limited, highlighting its commitment to the potential in the forestry supply sector.

High-Grade Rosin:

Rosin is the sticky, gummy substance found in pine logs and stumps

There are two basic types:

• Wood rosin extracted from the stumps of Radiata pine trees.
• Gum rosin extracted from pine logs

Rosin is a high-value, high-demand substance due to its use in a wide variety of industries and products. Foresta produces the highest-grade rosin through steam distillation, which does not involve the chemicals and industrial solvents generally used in the industry.

Torrefied Wood Pellets:

Foresta is leading the world with its proprietary processing technology that converts renewable pine forests into an advanced biomass product that can be used wherever coal is burned for heat and energy.

ToWood pellets are made using the whole tree and undergo torrefaction, where they are heated at 250-350 °C with little or no oxygen present. Torrefaction removes moisture and volatile organic compounds, producing a solid, uniform, blackened, water-resistant material with about 30% more energy than standard wood pellets and other raw biomass.

In addition to having comparable energy burn to coal, Foresta Torrifeid Pellets can be easily integrated into existing systems for handling, storing and grinding without significant changes or expensive conversion to equipment.

High-Grade Turpentine:

Turpentine is the natural aromatic compound found in pine trees that give them their distinct fragrance and flavour.

Foresta Turpentine is extracted using a chemical-free, continuous counterflow steam distillation process. As most turpentine extraction involves petrochemical solvents, the Foresta product is highly valued for its purity and environmentally friendly process.