By integrating CO₂ capture and utilisation technologies, pulp mills can not only contribute to the growing e-methanol market but also unlock a new revenue stream. The problem is that many pulp mills don’t know where to start — capitalising on biogenic CO₂ is unchartered territory. As a leading provider of carbon capture and e-fuel solutions, as well as an expert in all things pulp mills, ANDRITZ is helping the pulp and paper industry establish itself as a vital supplier in a growing e-methanol market.
The production of e-methanol depends on two key inputs. Firstly, green hydrogen, a form of hydrogen gas produced using renewable electricity and water electrolysis. Secondly, e-methanol requires biogenic CO₂, sourced from renewable biomass like wood, leftover crops, and food waste. Unlike fossil-based CO₂, biogenic CO₂ is part of a natural carbon cycle, so it neither adds new greenhouse gases to the atmosphere nor disrupts the planet’s carbon balance. Instead, it recycles existing carbon, making it a carbon-neutral resource for e-methanol production.
Think of biogenic CO₂ as ‘green gold’. Much like a precious resource, it holds immense untapped value, first and foremost in the transition to low-carbon fuels. To put its worth into perspective, if we could replace all fossil-based methanol with e-methanol made from biogenic CO₂, we could eliminate emissions equivalent to Germany’s entire transport sector.
Oftentimes, CO₂ is sequestered as a means of reducing emissions, offering a long-term climate mitigation strategy. But biogenic CO₂ is far too valuable to be tucked away like this. Instead, pulp mills have a unique opportunity to utilise their biogenic CO₂ as a key feedstock for e-methanol production, transforming what was once seen as the villain behind global warming into a force for sustainability and profit.
So, it's clear that biogenic CO₂ is in demand, but securing a reliable, large-scale supply of it remains a challenge. This is where pulp and paper mills have a distinct advantage. As part of the kraft pulping process, mills generate significant volumes of biogenic CO₂, primarily from the combustion of biomass in recovery boilers and lime kilns. Crucially, the CO₂ stream from the lime kilns is highly concentrated, making capture practically easier and more cost-effective.
With the right infrastructure in place, these mills could become key suppliers of carbon-neutral CO₂, turning an operational emission into a valuable feedstock for the e-methanol industry.
However, despite these advantages, most pulp mills have yet to capitalise on biogenic CO₂ as a revenue stream. Industry inertia — where long-standing approaches dominate decision-making — has led to a stalemate, with many waiting to see who will make the first move. But with the demand for e-fuels rising rapidly, forward-thinking pulp mills that act now can establish themselves as key players in the emerging e-methanol economy and reap the rewards.
Pulp mill managers and owners might feel anxious at the prospect of shaking up their well-established operations, but they needn’t worry. Carbon capture can be seamlessly integrated with minimal impact on core processes. Many mills are already rebranding as ‘bioproduct mills’, focusing on maximising every potential output to align with sustainability goals and mandates. Emissions capture is simply another natural step in this transition.
This is where ANDRITZ comes in. Backed with decades of expertise in designing, building and maintaining pulp and paper mills, they are ideally positioned to help mills implement CO₂ capture in cost-effective, operationally efficient ways. There are many existing synergies that mills can leverage to make the most of this opportunity with minimal disruption. One key advantage is heat utilisation. Carbon capture is energy-intensive, but pulp mills already generate excess heat and steam, which can be repurposed in order to lower operational costs. Since this heat is a byproduct of existing processes, optimising its use for CO₂ capture works to reduce overall costs. On top of this, the process of producing green hydrogen, a key ingredient for e-methanol generation, creates oxygen as a byproduct. Pulp mills can use this oxygen in combustion processes or as a bleaching agent, further enhancing resource efficiency.
Lastly, technology matching is a crucial factor for pulp mills wanting to get started with implementation, as different carbon capture methods rely on either thermal energy or electricity, and the most suitable approach will depend on factors such as regional energy prices and infrastructure. With deep expertise in pulp mill engineering, green hydrogen, carbon capture, and e-MeOH solutions, ANDRITZ will work closely with each mill to identify and implement the most cost-effective and efficient approach.
Right now, supply of biogenic CO₂ is finite. Pulp mills that act early can gain a competitive pricing advantage by becoming first-movers in an untapped market. It also goes without saying that climate regulations, particularly in Europe, are acting as extra incentive for industries to cut emissions and transition to sustainable supply chains. So, the benefits to leveraging biogenic CO₂ are threefold: pulp mills can align with market trends, unlock a profitable new business avenue, and stay one step ahead of regulatory compliance.
The demand for biogenic CO₂ is only going to grow. Maersk and other major companies are already investing in e-methanol-powered shipping, and the aviation sector is also exploring the adoption of methanol-based fuels. These hard-to-abate sectors are ready-and-waiting buyers of biogenic CO₂. The opportunity is there, and now it’s about having the courage to make the first step.
ANDRITZ responds to the urgent need for decarbonization and green transition. We provide integrated P2X solutions for the production of green hydrogen, e-methanol and e-ammonia — ranging from consulting to EPC projects with full performance guarantees. Our long-term service agreements are based on our proprietary digital solution.
