Author: joleneft

The following information was first published by Bluesource on Wednesday, Jun 28, 2023 prior to the launch of Anew.

BSFC proudly acquired a 1.7-million-acre timberland portfolio from The Forestland Group for $1.8 billion, marking a groundbreaking achievement in carbon-centric forest investments. This acquisition, featuring diverse hardwood species, highlights a forward-thinking approach that prioritizes carbon sequestration over traditional logging. By planning to harvest only 10-20% of the annual timber growth, BSFC is setting a new standard in creating carbon offsets and investing in carbon markets. This innovative strategy underscores a commitment to environmental sustainability and long-term carbon storage, paving the way for a greener future.

• • Opportunity to sequester hundreds of millions of tonnes of atmospheric CO2 over the next century through sustainable management for biodiversity and tree growth
• • Represents one of the largest private forest carbon investments in the United States
   

Anew Climate, LLC (“Anew”) announced today the acquisition of entities managed by The Forestland Group (“TFG”) which includes a 1.7-million-acre timberland portfolio. The acquisition was completed by Blue Source Sustainable Forests Company (“BSFC”), a joint venture with Oak Hill Advisors, L.P. (“OHA”) focused on forest acquisitions and sustainable forest management. BSFC has also entered into definitive agreements to acquire additional TFG-managed entities holding an additional two hundred thousand timberland acres. The transactions are valued at approximately $1.8 billion, representing one of the largest private conservation-focused forest investments in U.S. history.

At a time when 4.2 million acres of U.S. forest cover continues to be lost annually from industrial logging practices,¹Anew is transitioning the newly acquired lands into sustainably managed forestland for climate mitigation. With 110,000 acres previously purchased for carbon sequestration in New York, Michigan, Tennessee, Alabama, and Mississippi, BSFC’s portfolio will exceed 1.9 million acres upon completion of all TFG-related acquisitions, making it the 7th largest private forestland owner in the United States.² This acquisition also expands the nature-based and agricultural portion of Anew’s carbon development portfolio, which includes numerous private, indigenous, and public lands, to over 5.6 million acres primarily in North America.

Forests, sustainably managed, are and will be a major climate mitigation tool with substantial benefits to local ecosystems and communities,” stated Bill Townsend, Chief Strategy Officer, Anew. “Change at this scale requires equal dedication from buyers seeking the highest quality carbon credits. With the help of several significant global investment firms, led by OHA, and the shared commitment to the climate by carbon market participants, environmental finance has made a significant stride in furthering climate action through nature-based solutions.” Townsend said.

BSFC is the first of the industry’s ten largest forestland owners to commit to prioritizing climate mitigation practices. BSFC management will maintain the lands as working forestlands under carbon development requirements which are the strictest in the industry, exceeding that of FSC certification. Selective harvests, significantly below annual tree growth levels, will prioritize the restoration of native biodiversity, bolster the forests’ natural defenses against disasters such as fire or disease, and produce high value timber products. Conservative calculations, based upon decades of expertise and Registry-approved carbon quantification methodologies, estimate that the acquired properties have the capacity to absorb hundreds of million tonnes of atmospheric carbon dioxide over the next century through tree growth resulting from improved management.

BSFC’s ownership of these properties will bring the highest degree of care and focus on creating real, additional, and measurable environmental benefit for decades to come,” stated Jamie Houston, Chief Executive Officer, BSFC. “We are thrilled to shift the management strategy to a model that enables the trees to be valued for their carbon permanence and global ecological benefit. We are creating older, more resilient, more biodiverse forests with long lasting benefits to plants, wildlife, and communities.”

Communities near BSFC forestlands are expected to see increased sustainable forestry job opportunities as well as quality of life and public health benefits through recreation and ecological restoration, preservation, and resilience. The newly acquired lands include 4,528 miles (about 7287 km) of rivers and streams, which will directly benefit from improvements in forest health and contribute to healthier habitats within the watersheds, as well as downstream. Additionally, in honor of TFG’s Founder Chris Zinkhan, BSFC is forming the TFG Foundation with a $4 million initial contribution to create sustainable forestry education opportunities to increase pathways into the growing green economy.

Prior to the advent of environmental finance, pathways for long-term forest conservation were limited and not available at the scale required for substantive climate change mitigation. The climate benefit from the sustainable management of these forests will be realized in full through multi-decade carbon credit generation and sale to organizations investing in offsets, insets, and carbon reduction practices to meet sustainability and net zero goals.

OHA is pleased to lead this landmark conservation transaction along with support from a global consortium of like-minded investors with a shared commitment to climate solutions,” said Adam Kertzner, Senior Partner of OHA. “We believe this acquisition will be transformational, enabling BSFC to fulfill its mission to be a leader in sustainable forestry, a scale partner for market participants seeking the highest-quality forest carbon credits and to produce measurable outcomes for the climate.”

Bluesource Sustainable Forests Co. (“BSFC”) has purchased 29,019 acres of forestland in northern Michigan from the affiliates of The Lyme Timber Company.  BSFC is a joint venture between Oak Hill Advisors, L.P. (“OHA”) and Anew Climate, LLC. This purchase marks BSFC’s third forestland acquisition since its formation in October 2021, following two purchases totaling 52,000 acres in New York’s Adirondack region. Anew, a leading climate solutions provider to a broad range of public and private organizations, and OHA, a leading alternative investment firm with $57 billion in capital under management, are partnering on strategic forestry investments and direct management to lead change in the timber industry. Acquired properties will be managed under sustainable working forest practices that prioritize carbon sequestration and long-term forest health while maintaining a level of commercial harvest that supports the local economy and the climate. 

The Manistique property resides within the Schoolcraft, Mackinac, Alger, Chippewa, and Luce counties. This property will add to the over 90 North American forest carbon projects covering over four million acres that Anew currently manages in partnership with landowners, 11 of which are also located in Michigan. Decades of forestry and carbon experience will inform the management of the land to increase carbon sequestration and forest health. When deemed appropriate, BSFC plans to initiate a selective logging operation well below annual growth levels. This will allow these forests to continue as working forestlands to support the local economy and produce high value forest products, while also developing carbon credits that are measured and verified. 

BSFC visits to the project area have identified a host of opportunities for the ecosystem through this protection. This area is an important migratory stopover for the sand crane, and its abundant milkweed supports pollinators such as the monarch butterfly. The project will also provide stable habitat for area mammals including deer, bear, and wolves. To allow the forest to grow and carbon stocks to increase, selective harvesting is not planned in the immediate future. BSFC will ensure that the land will remain open for public recreational access and sustainably managed for the benefit of people and wildlife alike.

“Michigan is a state that is rich in its forests, and it is an area where we have a successful and long track record of managing forests for carbon in partnership with a variety of landowners,” said Jamie Houston, President of BSFC. “We’re proud to have another opportunity to bring our direct knowledge and experience to bear here and show what’s possible. You can sustain logging in a way that doesn’t harm the environment, in a way that positively addresses the greatest challenge of our time.”

Anew and BSFC will continue to target forestland where selective harvesting can prioritize and balance critical carbon capture while maintaining sustainable forest products that local and national communities need to survive and thrive. While the Manistique property has been purchased directly, other future purchases have the potential to become a co-investment alongside traditional timber managers and investors who are willing to engage in climate-oriented forestry practices. These investments may take the form of joint ownership, acquisition of timber deeds, or portfolio acquisitions.

“The Manistique acquisition is consistent with BSFC’s mission, expanding our growing portfolio of forestlands that are well-suited to sustainable management practices and carbon sequestration projects,” said Adam Kertzner, Portfolio Manager & Senior Partner of OHA. “We are pleased to continue to execute our business plan and deploy capital that we believe will be accretive to our investors while providing tangible environmental benefits.”

The following information was first published by Bluesource on Tuesday, Apr 12, 2022 prior to the launch of Anew.

Purchase marks BSFC’s first acquisition since its formation in October 2021, backed by $500 million of capital committed by OHA and its investors.

Salt Lake City, UT: Bluesource Sustainable Forests Co. (“BSFC”), a joint venture between Oak Hill Advisors, L.P. (“OHA”) and Bluesource, has purchased 52,000 acres in upstate New York. This purchase marks BSFC’s first acquisition since its formation in October 2021, backed by $500 million of capital committed by OHA and its investors. Bluesource, North America’s most experienced and most diversified corporate climate advisor, and OHA, a leading alternative investment firm with $57 billion in assets, are partnering on strategic forestry investments. This initiative is set to lead the timber industry by example, supporting climate mitigation efforts through sustainable working forest management.

The Adirondack properties were publicly listed for sale, identified by BSFC as an area of interest, and targeted immediately following the formation of the joint venture.

The acquired forestland is in Oneida, Lewis, and Herkimer counties in upstate New York, and will add to the nearly 80 North American forest carbon projects covering over three million acres that Bluesource currently manages in partnership with landowners. Decades of forestry experience is informing management of the land to balance carbon sequestration as well as overall forest health. In addition, selective logging will allow these forests to continue to support the local economy as working forestland that will produce high value forest products.

BSFC, which is part of the recently merged entity of Bluesource and Element Markets announced in February 2022, will continue to target forestland where selective harvest can prioritize and balance critical carbon capture while maintaining sustainable forest products that local and national communities need to survive and thrive. While the Adirondack lands have been purchased directly, other future purchases have the potential to become a co-investment alongside traditional timber managers and investors who are willing to engage in climate-oriented forestry practices over other logging methods that cause long-lasting negative ecological impacts. These investments may take the form of joint ownership, acquisition of timber deeds, or portfolio acquisitions.

“These are the kinds of forests that Bluesource Sustainable Forests Company was created to own and manage,” said Jamie Houston, recently named President of BSFC. “Forests with an abundant carbon resource and high value forest products can be challenging to manage solely for one resource or the other. We believe we can unlock substantial value by managing these complicated assets in a thoughtful and sustainable manner for carbon, while selectively managing the timber for the long-term health of the forest.”

Cakey Worthington has been named Director of Operations. Aaron Paul, former Director of Forest Carbon Origination for Bluesource, has been appointed BSFC Vice President. The team is slated for additional growth over 2022, and BSFC will be targeting talented individuals who are driven to sustainably manage timberlands for carbon and forestry initiatives.

“Bluesource Sustainable Forests Company was created to be a leader in investing in nature-based solutions,” said David Light of OHA. “BSFC’s combination of expertise in the carbon and forestry markets, with flexible capital and structuring expertise, positions us well to acquire a variety of timberlands and manage them in a sustainable manner that promotes carbon sequestration while creating substantial value for our investors.”

This press release was originally published by Bluesource. Bluesource and Element Markets merged in 2022 to form Anew Climate. Bluesource Sustainable Forests Company (BSFC) rebranded as Aurora Sustainable Lands on December 4, 2023.

Bluesource, North America’s most experienced and most diversified corporate climate advisor, with investment partner Oak Hill Advisors, a leading alternative investment firm with more than $50 billion in assets, today announced a $500 million joint venture to purchase and more sustainably manage over one million acres of forest land. This will complement the three million acres of forests that Bluesource currently manages for carbon and spurs the pace of protecting this critical resource for climate action.

This unprecedented endeavor marks the start of an evolution in forestry investments that Bluesource intends to lead in the industry. Traditional forest management undervalues the role trees play in the fight against climate change, and the risks of managing forests for climate benefits are not well enough understood by many timber investors to allow them to make the necessary practice changes. Bluesource plans to accelerate this evolution toward sustainable forest management through its own purchases and through co-investment alongside others, where it will share its deep carbon expertise with other landowners. The goal is to increase the understanding of carbon management sufficient to incentivize necessary behavioral change that promotes the long-term health of forest land in North America.

“The idea here is not simply to invest in forests, it’s to invest in forestry in such a way that the entire industry comes along,” said Bill Townsend, Bluesource Chairman and Chief Strategy Officer. “Over the last decade, we have been asked by a number of forest investors to place capital alongside our carbon knowledge. We took this step to not only practice what we preach but inspire others to do the same, because we know this can play a significant part in addressing the global challenges we face.”

Projects will be selected based on numerous criteria, among the most important of which is selecting properties where managing for increased climate benefits would not occur without a change in landowner. Properties will participate both in voluntary and compliance markets throughout North America. Revenues from carbon offset sales are key to justifying the acquisition and repurposing of the land, which will reduce timber harvesting in favor of carbon sequestration. This represents the beginning of an expansive opportunity to repurpose forest investments that otherwise would strictly consider revenue from timber harvests.

“This joint venture is an opportunity to accelerate the evolution of sustainable forestry and the ongoing development of the carbon credit markets,” said Adam Kertzner, Portfolio Manager and Senior Partner at Oak Hill Advisors. “We are excited about both the positive environmental impact as well as the highly attractive investment attributes in this large and growing market.”

Under the new entity, Bluesource Sustainable Forests Company, certain properties will be purchased directly while others will have the potential to become a co-investment alongside traditional timber managers and investors. By working alongside Bluesource, timber management groups will benefit from the company’s expertise in maximizing forest health, carbon reduction, carbon quantification, and carbon markets. This establishes a financial incentive and opportunity for timber companies who are willing to engage in climate-oriented forestry practices over other logging methods that cause negative ecological impacts that last for generations.

“It’s exciting to see that environmentally focused firms like ours now have more capital to make meaningful impacts, and these funds enable us to quickly act upon opportunities we see,” said Roger Williams, Bluesource’s President. “For the last fifteen years Bluesource has focused on helping landowners manage acres for climate benefits, and that won’t change. The formation of Bluesource Sustainable Forests Company is a critical acceleration of this effort, and we hope that in the next decade, North America will have an enhanced appreciation of the role of forests in combating climate change.”

“We are thrilled to be exclusively partnering with Bluesource in forming this joint venture,” said David Light, Managing Director at Oak Hill Advisors. “We believe OHA’s complementary fundamental-oriented approach and flexible capital paired with Bluesource’s leadership role in the environmental attribute markets and extensive expertise in forestry assets, positions this partnership for success.”

Bluesource is the most experienced and most diversified corporate climate advisor providing innovative, trusted environmental services and products in North America. A full-service climate and energy action partner, Bluesource counsels leading organizations at every stage of the business cycle to simplify their next steps toward achieving their climate and environmental goals. With an understanding that no business, organization, or government agency regardless of its size can afford to be absent from the climate conversation, Bluesource has the breadth of services and depth of experience to help clients achieve their environmental and energy goals simply, efficiently, and credibly.

Guggenheim Securities, LLC, acted as exclusive financial advisor and placement agent to Bluesource.