Friday, April 3, 2026
Metsä Group has initiated a pre-engineering phase for what could become the first commercial-scale facility dedicated to capturing biogenic carbon dioxide derived from wood. The proposed plant would be located at the company’s pulp mill in Rauma, marking a significant step in advancing carbon capture solutions within the forest industry.
The planned facility is designed to capture approximately 100,000 tonnes of carbon dioxide annually. This carbon dioxide would be extracted from flue gases generated during pulp production. The initiative represents an early but important move towards scaling up wood-based carbon capture across the company’s operations.
The captured carbon dioxide is expected to be repurposed. It can serve as a raw material in industries such as chemicals and fuels. This substitution could reduce reliance on fossil-based inputs. It also aligns with broader decarbonisation goals across Europe.
A funding application has been submitted. It has been lodged under a reverse auction scheme organised by Finland’s Ministry of Economic Affairs and Employment. This programme is intended to support investments that contribute to the clean transition.
Public funding is considered essential at this stage. New industrial ecosystems often require early financial backing. The grant applied for could cover up to 30 per cent of the total investment. This support is expected to accelerate the project timeline if approved.
An environmental permit application was submitted in December 2025. A decision is anticipated later in 2026. Regulatory approval is a key milestone. Without it, the project cannot proceed to the investment phase.
If all conditions are met, a final investment decision could be made in early 2027. Several requirements remain. These include a positive funding outcome, confirmed customer demand, and completion of the pre-engineering phase.
The environmental impact could be substantial. The annual utilisation of 100,000 tonnes of captured carbon dioxide in fuel production could offset emissions equivalent to nearly 30,000 passenger vehicles. This highlights the potential contribution of the project to emissions reduction targets.
The initiative builds on earlier work. In 2025, carbon capture technology was piloted at the Rauma pulp mill. This was carried out in partnership with Andritz. The pilot demonstrated that the technology is sufficiently mature for controlled scale-up.
The project is being positioned as a foundation for future growth. Metsä Group has indicated that its long-term carbon capture potential could reach several million tonnes per year. This suggests that the Rauma facility is only the first phase of a broader strategy.
The development of new value chains is central to the plan. Wood-based carbon dioxide is not yet widely used at scale. Markets for such products are still emerging. This creates uncertainty but also opportunity.
Industry collaboration will be required. Multiple stakeholders must invest simultaneously. Without coordinated action, market development may slow. This remains one of the key risks associated with the project.
Despite these challenges, progress is being made. Initial supply agreements with customers have already been signed. This indicates early demand for biogenic carbon dioxide. It also supports the business case for the plant.
The project aligns with Metsä Group’s long-term strategy. The company aims to strengthen its fossil-free operations. It is also focused on developing new, competitive products derived from renewable resources.
The pulp industry is under pressure to decarbonise. Carbon capture offers a viable pathway. By utilising emissions rather than releasing them, companies can create additional value streams.
The Rauma project reflects a broader shift. Industrial players are exploring ways to integrate carbon capture into existing processes. This approach can improve efficiency and sustainability simultaneously.
Short sentences highlight urgency. Action is needed now. Investment decisions are critical. Timing will influence outcomes.
If successful, the project could reshape parts of the forest industry. It may also position Finland as a leader in biogenic carbon capture. The benefits could extend beyond national borders.
Much depends on market evolution. Demand for wood-based carbon dioxide must grow. Infrastructure must also be developed. These factors will determine long-term viability.
The initiative represents both innovation and risk. It has been carefully planned. Yet uncertainties remain. Even so, it signals a clear direction for the industry.
Metsä Group’s proposed plant is more than a single project. It is a step towards a new industrial model. One where emissions are not wasted, but transformed into valuable resources.
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Tags: carbon capture technology, Finland clean energy projects, Metsä Group, sustainable industrial innovation, wood-based carbon capture, woodworking and processing, woodworking industry, woodworking UK
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