Optimizing resource efficiency through valorization of residual side streams from forest industry

A large part of the biomass – and thus the carbon it contains – is already used efficiently in the forest industry. The biomass is used, for example, for wood products for construction or for pulp for paper, packaging and hygiene products. 
"But more than 50 percent of the carbon atoms that enter the forest industry's production system then leave it as carbon dioxide without having been a product," says Dr Magnus Hallberg, Senior Vice President of the Bioeconomy division at the Swedish research institute RISE.

A large part of this happens when side streams are used for energy. 
"We need energy, but in a situation where the industry also has a shortage of sustainable carbon sources, there is reason to think about whether we can use the side streams better. We are working on this issue together with a number of partners and customers in the forest industry," says Magnus Hallberg.

Odorless lignin provides opportunities

An important part of the work is to develop new areas of use for lignin, a substance that has the potential to be used in the production of a variety of sustainable materials. RISE has a demonstration plant in Bäckhammar, where lignin is produced from black liquor using Valmet's LignoBoost technology. LignoBoost extracts kraft lignin that can be adapted to a wide range of qualities. 

“But one challenge with lignin, especially when it is to be used in different products, is the characteristic smell. Therefore, we have together with Valmet developed a technology for odor reduction and built a demonstration plant for this as well," says Magnus Hallberg. When the odor is removed, opportunities open up for new applications, for example in plastic materials, barrier layers and various chemical products.

Biofuels and fish feed

Sawdust is another side stream that RISE is working to further refine. Here, the goal is for it to be used as a biofuel. 

"We have developed a technology that we call LignoDirect. With it, we can directly convert solid biomass, such as sawdust, into hydrocarbons. We have a patent on the technology and are now looking for partners for further development," says Magnus Hallberg.

A third area is biotechnology. At RISE's facilities in Örnsköldsvik, sugar from side streams, such as spent sulfite liquor, is used to grow fungi that produces protein. The protein can be used in fish feed and has also been tested in feed for chickens and cattle. 
"This is an example of how side streams from the forest industry can become raw materials in completely new value chains," says Magnus Hallberg.

Capturing carbon dioxide

Carbon dioxide from industry can also become a resource. "Paradoxically, we have both a surplus of carbon in the atmosphere and a lack of sustainable carbon sources in industry. When we burn carbon-containing materials, we have the opportunity to capture the carbon dioxide at the industries, convert it and use it again. This process can be an important part of the bioeconomy of the future," concludes Magnus Hallberg.

This article is a summary of Magnus Hallberg’s presentation at Valmet Pulp Customer Days held in Sundsvall, Sweden in March, 2026.

TEXT Kerstin Olofsson