KEY TRENDS SHAPING THE FUTURE OF THE PULP, PAPER, AND FORESTRY INDUSTRY

This content is being republished with the consent of Fisher International and ResourceWise. Read more about Paper Industry at ResourceWise. Nov 5, ‘24″

In the pulp, paper, and forestry industry, innovation is key to remaining resilient amid evolving sustainability demands and regulatory landscapes. By harnessing natural resources and developing eco-friendly alternatives, the industry is paving the way to a resource-optimized, greener future. Here’s a look at how biofuels and other key trends are reshaping the industry and the impacts we can expect as sustainable solutions grow.

THE SURGE IN BIOFUELS: TRANSFORMING ENERGY WITH NATURAL RESOURCES

Major global targets bolstering SAF demand include:

• The European Union’s mandate for a 6% SAF blend by 2030.
• The United Kingdom’s ambitious 10% SAF target.
• The United States Grand Challenge initiative aiming for a 10% SAF blend.
• Airline commitments, with companies like Ryanair aiming for a 12.5% SAF blend by 2030.
• The International Civil Aviation Organization (ICAO) targeting a 5% CO₂ reduction in global aviation emissions through SAF blending

These targets mark a rapid transformation in the global energy landscape, and the pulp and forestry industry has a critical role in supporting this shift. Woody biomass, forestry residues, and byproducts such as crude tall oil are becoming crucial feedstocks for SAF production, creating a unique opportunity for pulp and paper companies to diversify and expand their operations.

CRUDE TALL OIL: A HIDDEN GEM FOR SUSTAINABLE AVIATION AND PAPER MANUFACTURING

Crude tall oil (CTO), a byproduct of the pulp production process, is emerging as a valuable resource for SAF production. The pulp and paper industry, with its abundance of biomass byproducts, can tap into CTO extraction to support sustainable aviation while diversifying revenue streams. Currently, fewer than 200 mills globally extract CTO, highlighting significant growth potential for the industry.

The environmental impact is substantial: by incorporating CTO as a feedstock for SAF, pulp companies can further reduce waste, add value to their production processes, and play a vital role in the biofuel sector. This transition aligns with the industry’s push for sustainable practices and positions companies as leaders in supporting clean energy initiatives.

IMPACT ON THE PULP AND PAPER INDUSTRY

The shift towards biofuels, particularly SAF, has a twofold impact on the pulp and paper industry. First, the demand for biomass and sustainable feedstocks fosters new revenue opportunities, encouraging companies to invest in extraction technology and biorefineries. By incorporating bioproducts like crude tall oil into their operations, pulp mills can enhance their environmental impact while supporting SAF production and driving new growth.

Second, the focus on sustainable materials and clean energy amplifies the industry’s reputation for environmental stewardship. Companies that adapt to these trends stand to improve their market standing and broaden their appeal, particularly to eco-conscious customers and investors. This alignment with global sustainability goals also provides a competitive advantage, making the pulp and paper sector more resilient in an era where sustainable practices are increasingly prioritized.

Staying current with industry trends is essential to thriving in the pulp, paper, and forestry sector. At Coniferous, we’re dedicated to empowering industry professionals with insights and resources that support sustainable decision-making and innovation. Follow us for the latest updates on market shifts and sustainability trends, and let’s build a greener future together.