6 Nov. 2025: In a significant step towards sustainability and resource efficiency, Södra, a leader in the Swedish forestry sector, is launching a carbon capture pilot project at its Värö plant in early 2026. The project will test cutting-edge technology designed to capture biogenic carbon dioxide (CO2) produced during pulp production. This initiative is part of Södra’s long-term strategy to add more value to its forest raw materials, enhance competitiveness, and contribute to a circular bioeconomy.
The captured CO2, which is currently an untapped resource, has the potential to be used in various industries, such as food production, water purification, chemical manufacturing, and even in longer-lasting products like building materials or electrofuels. Furthermore, the technology being tested could enable permanent storage of carbon, resulting in negative emissions. This innovation not only contributes to the fight against climate change but also opens up new business opportunities for Södra, enabling them to expand the value chain of their products.
Building Knowledge for Future Opportunities
Södra’s initiative focuses on building knowledge about the technology, evaluating its performance in an industrial environment, and exploring how biogenic CO2 can be used in various applications without increasing the extraction of forest resources. By developing technologies to capture and refine CO2, Södra is laying the groundwork for future investments in a bio-based economy that can also help mitigate climate change.
“Carbon capture is a technology with the potential to create new revenue streams and strengthen our customer offering. By harnessing biogenic carbon dioxide, which is currently an untapped resource, we can meet the growing demand for products with a low climate footprint and create long-term competitiveness,” said Johannes Bogren, Business Area Manager at Södra Bioproducts.
The project is also aligned with Södra’s overarching goal to increase the value of each tree and improve the profitability of the forest farm. By exploring new uses for biogenic CO2, Södra aims to strengthen its position in the market, creating long-term value from sustainably sourced forest materials.
Collaboration with Svante Technologies and RISE
The pilot plant will feature technology from Canadian firm Svante Technologies and will be tested directly at the Värö site. By integrating carbon capture technology into the existing industrial processes at the plant, Södra will gain invaluable experience and insights. The aim is to evaluate the potential for large-scale CO2 capture in the future.
The collaboration with RISE, a Swedish research institute, will also play a key role in the project. During part of the test phase, a facility from RISE will be connected to test the liquefaction of captured CO2. This will help investigate the entire chain of processes, from capture to turning carbon dioxide into a liquid form, further refining the potential applications for this valuable resource.
“Testing carbon capture allows us to build expertise in the technology based on our conditions. It is an important step in driving innovation and creating new solutions that strengthen our competitiveness and the forest farm’s profitability,” said Jenny Gotthardsson, site manager at Södra Cell Värö.
Funding from EU’s Recovery and Resilience Facility
The project has received funding through the Industrial Step, an initiative part of the EU’s Recovery and Resilience Facility (RRF) under Next Generation EU. Industrial Step is a Swedish government initiative managed by the Swedish Energy Agency, aimed at promoting the development and implementation of sustainable industrial technologies in Sweden. This funding is crucial for accelerating the development of carbon capture technology and ensuring that it becomes a viable solution for large-scale implementation.
Exploring New Business Models and Revenue Streams
The ultimate goal of the project is to test both the technology and the business models associated with carbon capture. By refining and capturing biogenic CO2, Södra aims to open up new revenue streams and further enhance its position in the marketplace. This move aligns with Södra’s ongoing efforts to diversify and maximise the potential of forest raw materials, ensuring that they can be used in a variety of sectors without over-extracting natural resources.
As the world’s focus on sustainability and carbon neutrality intensifies, innovations like carbon capture represent an important step towards a greener economy. By harnessing the power of biogenic CO2, Södra is not only contributing to climate change mitigation but is also positioning itself at the forefront of the bioeconomy revolution.
A Step Toward a Circular Bioeconomy
The pilot project at the Värö plant represents a crucial step in the development of new value chains in the circular bioeconomy. By capturing and reusing carbon dioxide, Södra is creating a more sustainable supply chain that maximises the use of forest resources while also reducing its environmental footprint. This aligns with global trends toward sustainability and resource efficiency, as companies across industries seek to reduce their reliance on fossil fuels and create more sustainable production processes.
In conclusion, Södra’s carbon capture project is a game-changer for the forestry and bioproducts industries. By exploring innovative technologies and new business models, Södra is helping shape the future of sustainable forestry and the bioeconomy while creating new revenue opportunities from the same amount of raw material. This initiative is a testament to Södra’s commitment to environmental responsibility, technological innovation, and long-term profitability.