A new type of timber processing mill could be on the horizon for Tasmania.
Emissions legislation in Europe gives companies carbon offset benefits for burning wood instead of coal.
Forest Enterprises Australia says it is considering the market for a pellet mill using waste from its Tasmanian operations.
Industry Analyst Robert Eastment says the state's timber-rich
resource makes it ideal to spearhead the push into the pellet market.
"They are short of wood they don't have anywhere near sufficient wood to burn to be able to meet the European targets."
"So they're going to be down in places like Tasmania looking around
buying the wood, and the wood is shipped out, but instead of woodchips
it's wood pellets," he said.
