Construction firms from Japan and Australia have started work on a 182-meter-high skyscraper in central Sydney in what is planned to be the world’s tallest hybrid-timber building using an eco-friendly wood product.

Tokyo-based Obayashi and Sydney-based Built plan to complete construction on the 39-story Atlassian Central in 2026. The building will be used for offices, accommodation and retail outlets, the companies said in recent press releases.

The companies aim to cut carbon dioxide emissions during construction by 50% or more compared to a conventional building project and operate the tower entirely with renewable energy, they said.

The seventh floor upwards will feature a hybrid-timber structure that consists of a combination of steel frames and cross-laminated timber — or a wood panel product made from glued layers of sawed lumber.

The product is said to emit less carbon dioxide in production and is lighter than concrete. It can also be recycled for other uses, according to the Japanese construction firm.

Reinforced concrete will be used below the seventh floor, including the basement, the two builders said.

“Nothing about this project is typical,” said Built CEO and managing director Brett Mason in a company press release.

“It has been designed and developed to be a proof of concept for what the future of buildings should look like that are low impact on the environment in both construction and operation.”

Obayashi has been emphasizing in its home market the construction of low-emission wood buildings and increasing the use of the eco-friendly lumber product.

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