So sink them in the ocean. Or better, burn off the hydrogen and use the energy to dry the wood, leaving the bulk of the carbon, and then mix that in with the soil.
Recreating the lignite era process could be as easy as genetically engineering an alternative,presently indigestable version of lignin.
But my point is that the claim above that sequestering wet wood will somehow take meaningful quantities of water (fresh or otherwise) out of the ecosystem is just plain silly.