By Anna Ringstrom
Nordic forestry firms racing to replace paper business lost to the internet are trying to transform their pulp mill by-products into glue, biofuel and carbon fiber for aircraft and wind turbines.
A new generation of energy-efficient pulp mills are allowing the likes of Stora Enso, UPM-Kymmene, Metsa Group, SCA and Holmen to look for more profitable uses for by-products they have traditionally mostly burned to help power the mills.
Growing global demand for fossil-free materials is also helping to spur the innovation.
Much of the research is at an early stage, and many companies have not even decided which markets to target.
But after years of painful restructuring, some investors are starting to hope the industry could get a new lease of life.
“If they can develop new materials to replace fossil based materials, the market is endless for them,” said Sasja Beslik, head of sustainable finance at Nordea, one of the Nordic region’s biggest asset managers and Stora Enso’s seventh largest shareholder.
One early success story has been Stora Enso’s work with kraft lignin – a refined version of lignin, a substance which accounts for at least a quarter of wood and binds tree fibers together.
The Finnish company opened a kraft lignin plant in 2015, the first of its kind in the region, using a new technology developed in Sweden and marketed by Finland’s Valmet, and decided to focus on using the material as a replacement for petroleum-derived phenols in glue.
The Forest Stewardship Council (FSC) today announced its decision to immediately disassociate from the Austrian timber giant Holzindustrie Schweighofer (Schweighofer), one of its largest members, due to the company’s persistent and indiscriminate sourcing of illegal timber in Romania. The decision follows a year-long investigation by an FSC Expert Panel, which concluded that Schweighofer had created a business “culture” favoring cheap wood over legal wood in its Romanian sourcing.
By Hannes Lechner & John Dawson-Nowak
In 2016, the wood pellet market in Europe reached a size of 19 million tons per annum (Mtpa), while production capacity stood at 23.5 Mtpa, and consists of two largely independent sectors with only limited interaction. The industrial market is focused on large-scale bioenergy generation, while the premium market is focused on small-scale residential and commercial heat generation.
Besides more growth potential in the industrial market to 2025, the likely expansion of the premium sector post-2020 offers an opportunity for North American producers to soften the impact of predicted demand decline for industrial pellets post-2027.
Release by University of Exeter
Ash trees which can resist the killer dieback fungus may be more vulnerable to attacks by insects, according to new research.
Scientists from the universities of Exeter and Warwick examined trees which are resistant to ash dieback and – unexpectedly – found they had very low levels of chemicals which defend against insects.
With efforts under way to protect ash trees from dieback, the scientists warn that selecting trees for fungal resistance could put them at risk from insects.
Aside from ash dieback, the other major threat to European ash trees is the Emerald Ash Borer beetle, which has already devastated vast tracts of ash in the USA and is currently spreading westwards across Europe.
As the world works to replace fossil fuels, wood pellets are playing a key role in decarbonizing power grids. European nations, in particular, have invested heavily in pellets for both heating and electricity generation. To supply this increased demand, global trade in pellets has doubled since 2012, with U.S., Canadian and European producers all playing a role. How this supply stream may evolve is the focus of the European Pellet Supply and Cost Analysis, a new study from RISI, an information provider for the global forest products industry.
Maine is poised to finally begin shipping wood chips to Europe for power generation next year if plans underway at Eastport and Searsport stay on schedule.
After years of false starts, these developments would be especially welcome now, as the ongoing decline of the paper and in-state biomass power industries has hit hundreds of loggers and truckers who used to harvest and move fiber to Maine mills and generators. The value of U.S.-based wood fuel sent to the European Union in 2015 exceeded $684 million, according to export research firm WISERtrade, but none of it came from Maine.
The state’s first opportunity could come next year in Eastport, where the port authority has been working on export plans since 2009. A company it has partnered with is building special equipment that processes the chips to standards required in Europe. Chris Gardner, the authority’s director, said that while the equipment may be ready by year’s end, he thinks it’s more realistic to begin exporting wood chips in 2017.
The EU said last week that Indonesia is the first country to qualify for the licenses. It will mean that traders of goods such as wooden furniture, plywood and paper that earn the certification will find it easier to do business with Europe.
BIOFOREVER, a consortium of 14 European companies, has started a demonstration project that converts woody biomass to chemical building blocks.