New Revenue Opportunities for Pulp and Paper Sector from Carbon Capture, 20PEERS Conference


Transition to carbon neutrality will require adjustments for the industrial processes in the near future, including the use of negative carbon emission technologies (NETs). Bioenergy with carbon capture and storage (BECCS) is considered as one of the key NETs. Additionally, captured carbon dioxide can be used to manufacture green fuels to replace fossil ones. This will generate a huge additional market where pulp and paper mills, as large point sources of specifically bio-based carbon dioxide, are in the front line.  This study aims at clarifying the effect of costs of carbon dioxide allowances, green fuel production, and BECCS implementation on the prices of pulp and paper products, and whether the effect differs depending on mill type, performance, energy efficiency, or carbon dioxide intensity.

The study is based on recent statistical data on the Finnish pulp and paper mills. The results give fresh understanding on the propensity to invest in BECCS. Carbon capture or green fuel production can be economical with an emission trade system, depending on electricity price, green fuel price, negative emission credit, and mill’s emission profile. However, feasibility does not seem to evidently correlate with the performance, technical age, or the measured efficiency of the mill. 

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Author: Katja Kuparinen; Satu Kähkönen; and Esa Vakkilainen
New Revenue Opportunities for Pulp and Paper Sector from Car
New Revenue Opportunities for Pulp and Paper Sector from Carbon Capture, 20PEERS Conference
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