Investment case

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Eternali as an investment

There is a continuous increase in demand for wood-fibre globally. It is driven by the traditional paper- and bioenergy industries as well as other companies thriving on the transition from fossil use to bio- and circular economy.

Eternali supplement the traditional wood-sourcing industry developing a large, sustainable and profitable forest industry company, bringing large scale wood-fibre to market, from fast-rotation forest assets in Brazil. With our strong focus on ESG and sustainability, we will be a natural partner to the industries that are based on wood-fibre supply.

Using our unique sourcing capability, we lease and purchase eucalyptus plantations in Brazil. We harvest and deliver to port where the buyer takes over (FOB). We use fixed long-term delivery agreements with European pulp mills and bio-energy plants. We also buy degraded land for cultivating of planting of new trees (afforestation). We are on a journey to enable the substitution of fossil-based products and energy with wood-fibre from fast-growing trees in Brazil. Our case rests on four key elements.

1. Demand for wood-fibre set to explode while supply faces challenges

The global middle class will grow by almost two billion people in this decade, leading to a significant increase in demand for wood-fibre. In addition to this, the on-going shift away from fossil-based materials (plastics, textile etc) is gaining momentum by the day. This development paired with tougher restrictions facing forestry in the northern hemisphere create a demand-supply gap.

2. Eternali’s unique sourcing capability is ready to be scaled to meet the demand

The traditional solution, in the northern hemisphere, to meet increased demand is simply to harvest more. As a pine tree takes no less than 100 years to be ripe for harvest, this approach is facing stark opposition from legislators as well as public opinion. Eternali challenges traditional axioms of the forest industry as we deliver fast-growing eucalyptus trees that grows to pine-sized trees in 5-8 years. Eternali has already surveyed existing forest assets across Brazil, holding millions of cubic meters of timber and significant acreage suitable for green field planting of eucalyptus.

3. Strong customer agreements in place

Eternali has proven its capacity to source forest products in Brazil that meet the stringent quality standards (including FSC-certification) of European buyers. On the strength of that proof, Eternali is now set to sign multi-year offtake agreements for its product with some of the largest buyers in Europe.

4. Sustainability at the core

The team tasked with building Eternali into a company leading the green transition draws on decades of experience in sourcing and managing international distribution chains. The team is fully committed, as employees and individuals, to make Eternali a world leading supplier of wood-fibre and an enabler of a greener world. Therefore, sustainability and ESG is at our core: The world needs wood to substitute oil, so let´s produce more wood from where it grows 5-6 times faster than in Europe or the US. The world needs more forest for carbon sequestration, so let´s buy degraded land and plant trees. The world needs to protect biodiversity, so let´s commit to a best-in-class sustainable value-chain. And let´s do all these things while maintaining modern ESG standards. These are the Eternali solutions, or as we say, the aim is in our name.