An Australian wood recycling company has put plans on hold for a new firewood processing plant following an anti-logging campaign by green groups.

The company had planned to set up the plant in Braidwood, New South Wales, to turn waste timber from logging into firewood for Canberra’s residents. More than 60,000 tonnes of wood is needed to heat homes in the capital each winter.

The plan was backed by the Australian Capital Territory and New South Wales governments but conservation groups claimed the operation would increase pressure on sensitive forests in the south-east of the state.