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The Kelly Gang in Tasmania with Hydrowood reclaiming timber

Increased investment in a West Coast business will mean more specialty native timbers like Tasmanian Oak and Sassafras will be brought to the surface of a potential billion-dollar submerged timber global market. Source: The Mercury Tasmanian company Hydrowood, based at Lake Pieman, uses world-leading techniques to recover specialty native timbers submerged decades ago during hydro-electric dam construction. These include sought-after species like Tas oak, celery top pine, blackwood, myrtle, sassafras and Huon pine. Hydrowood works with locally owned and operated sawmills and processors to bring this wood to the water’s surface and turn it into material for furniture, construction and unique projects. The company announced that it had secured “significant investment” from two new backers, including environmentally focused AMB Holdings. This would allow the company to expand operations and is currently in negotiations to access more than 300,000m³ of additional submerged timber in further hydro lakes across Tasmania. The submerged timber market has a value $50b globally. Kelly Gang Timbers general manager Jye Kelly said Hydrowood was helping to support regional sawmill jobs, including his family-owned business that employs 14 locals. “Working with Hydrowood supports regional sawmill jobs” he said. “We’re proud to be part of Hydrowood’s innovative reclaimed timber story.” New Hydrowood CEO Neale Tomlin said the economic and social “ripple effects” are far reaching and that the fresh round of capital investment means more jobs, more timber and more opportunities for Tasmanian makers, builders and processors. “Hydrowood’s supply chain touches every part of the island,” said Mr Tomlin. “From Mole Creek to Zeehan, Deloraine to Tullah, our operation supports contractors, truck drivers, kiln operators, mill workers, maintenance teams and more. “For every direct job we create, we estimate three more indirect jobs are supported through this ecosystem. “This funding allows us to expand harvesting, invest in drying and distribution infrastructure, and meet growing demand from right across Australia. “Importantly, we’ll continue to do this the Tasmanian way — with local sawmills, local contractors, and timber that tells a uniquely Tasmanian story.” This new investment follows Hydrowood’s landmark $2.1 million equity crowdfunding campaign via OnMarket in 2023, which attracted more than 600 investors – the largest at that time in Tasmania’s history.