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Hydrowood secures strategic investment to expand global timber opportunities

 Tuesday, August 26, 2025

Hydrowood secures strategic investment to expand global timber opportunities

Hydrowood, the innovative Tasmanian-based sustainable timber pioneer, has announced a significant step forward with two new strategic investors, including AMB Holdings. This strategic investment is set to propel the company into its next phase of growth, expanding its operations in on-lake timber harvesting at Lake Pieman. Hydrowood is now positioned to address the increasing demand for high-quality, certified timber products with a powerful environmental origin story.

AMB Holdings, an Australian family office renowned for its focus on nature-positive investing, has now joined the Hydrowood register. The firm was drawn to Hydrowood’s unique combination of innovation, environmental, social, and governance (ESG) alignment, and scalability. The investment marks a strong endorsement of Hydrowood’s commitment to environmental sustainability, its commercial strategy, and its promising global future.

This latest capital raise follows Hydrowood’s successful $2.1 million equity crowdfunding campaign in 2023 via OnMarket, which was the largest in Tasmanian history at the time. The campaign not only raised vital funds but also built a strong network of over 600 new shareholders, many of whom are now engaged as brand ambassadors. This momentum has helped accelerate Hydrowood’s awareness and early customer engagement.

Global Timber Shortage Drives Demand for Sustainable Alternatives

Hydrowood’s co-founder, Andrew Morgan, who also co-founded SFM, a plantation asset manager and carbon project developer, explained that the company’s investment comes at a pivotal moment. The global timber market is facing a significant shortfall in supply, with native forests becoming increasingly difficult to access. As the threat of bushfires escalates and demand for ethically sourced timber continues to rise, Hydrowood’s sustainable approach provides a solution.

“We’re facing a global timber shortfall. Access to native forests is becoming challenging, bushfires are rising, and demand for ethically sourced timber is surging. What we have with Hydrowood is a rare opportunity: an abundant, high-value resource that is ready to harvest, immune to bushfire, and free from land-based forestry constraints,” said Morgan.

He further highlighted the scale of the opportunity, estimating that over 300 million tonnes of timber lie submerged in lakes across the globe, representing a $50 billion opportunity. This vast, untapped resource can now be harvested sustainably, creating an important alternative to traditional timber sourcing.

Hydrowood’s Expansion Plans

Neale Tomlin, Hydrowood’s newly appointed CEO, echoed Morgan’s optimism, sharing that the investment would help the company meet the growing demand for sustainable timber. Tomlin said, “The commitment from our new strategic investors is a vote of confidence in a model that delivers premium materials, climate credentials and design appeal in equal measure. The demand from architects, builders and green infrastructure is only growing—and now we’re better positioned to meet it.”

Hydrowood’s strategic plans include expanding its harvesting operations at Lake Pieman and scaling up the volume of timber available to the market. The company is also focused on developing a pipeline of projects, expanding research and development capabilities, and securing access to more submerged timber resources across Tasmania. With plans to increase the volume of timber harvested and improve processing infrastructure, Hydrowood is well positioned to grow its footprint in the architectural, designer-maker, and green building markets.

Additionally, Hydrowood aims to enhance its drying, processing, and distribution infrastructure. This will enable the company to meet the rising demand for its certified, high-specification timber products, which are increasingly sought after by the design community and sustainable building sectors.

Strong Environmental and Sustainability Credentials

Hydrowood’s commitment to environmental sustainability is further evidenced by its PEFC and Responsible Wood certifications, making it a leader in responsible resource use. The company is reimagining the timber supply chain, offering an alternative to traditional land-based forestry that is more aligned with 21st-century ethical and sustainable principles.

The new investment will allow Hydrowood to enhance its environmental credentials while ensuring that the timber harvested from submerged resources is used responsibly. Hydrowood continues to show that innovation and sustainability can coexist, redefining the standards for the timber industry.

Looking Toward the Future

With a growing team and expanding operations, Hydrowood is set to make an even greater impact on the global timber market. The company’s unique business model provides an ethical and sustainable alternative to traditional timber sourcing, aligning with the growing global trend of sustainability in construction and design.

“We’re focused on creating value through innovation in timber sourcing, ensuring our materials meet the needs of green buildings and high-end design projects while maintaining the highest environmental standards,” said Tomlin. “The future of sustainable timber is here.”

Hydrowood is now poised to lead the way in the timber industry’s sustainability transformation and is ready to deliver on its exciting next chapter of growth. As the company expands its footprint and capabilities, its focus remains on delivering ethically sourced, environmentally friendly timber to meet global demand.

Hydrowood’s journey is only just beginning, with new strategic investments unlocking global opportunities in sustainable timber sourcing. As the company expands its operations, the future looks bright for Hydrowood, with the potential to reshape the timber industry’s future for years to come.

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