29,000-acres in Michigan Purchased for Carbon Development by BSFC, Oak Hill Advisors
Houston, TX · Salt Lake City, UT | October 20, 2022
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.”
Company buys 29,019 acres of U.P. forestland
Bluesource Sustainable Forests Co. has purchased 29,019 acres of forestland in the Upper Peninsula from the affiliates of The Lyme Timber Company.
29,000-acres near Manistique purchased for forest carbon project
In the U.P. and across the state of Michigan, the timber industry is a large part of its history and economy.
US forest investment company snaps up Michigan lands for VER generation
The joint venture between a US-based carbon credit originator and its investment firm partner has purchased Michigan forestland to develop a voluntary carbon market project, as the company builds out its portfolio across the country.
Anew Climate, LLC (“Anew”) is accelerating the fight against climate change by enabling companies and organizations to align their goals for conservation and impact with actionable next steps. With a comprehensive solutions portfolio that includes advisory services, carbon credits, renewable natural gas, renewable energy certificates, EV credits, plastic credits, and emission reduction credits, we lower barriers to participation in environmental markets for clients across the private and public sectors. As a leading marketer and originator of environmental products, we bring together strategic finance, regulatory expertise, scientific knowledge, and impact focus to make it possible for businesses to thrive while building a sustainable future. Anew is majority owned by TPG Rise, TPG’s global impact investing platform, and emerged from the February 2022 combination of durational industry leaders Element Markets, LLC and Blue Source, LLC. The company has offices in the U.S., Canada, and Europe, and an environmental commodities portfolio that extends across five continents.
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About Oak Hill Advisors
OHA is a leading alternative investment firm with $57 billion of capital under management across its private, distressed, special situations, liquid, structured credit, and real asset strategies. OHA has generated attractive risk-adjusted returns over its more than 30-year history by specializing in performing and distressed credit-related investments in North America, Europe, and other geographies. OHA employs more than 350 people globally and is headquartered in New York, with primary offices in London, Sydney, Hong Kong, Luxembourg, and Fort Worth. Oak Hill Advisors is a subsidiary of T. Rowe Price.
For further information about OHA, please visit oakhilladvisors.com.
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