In early 2026, a pilot project for carbon capture will be launched at the Värö industrial site. The initiative aims to build knowledge around the technology and explore new business opportunities using biogenic carbon dioxide as a raw material.

The pilot is part of Södra's long-term strategy to increase the value of every tree, strengthen competitiveness and contribute to more profitable forest estates. By testing new technology to capture biogenic carbon dioxide in an industrial setting, Södra seeks to explore how this resource can be refined and used in new applications without increasing forest harvesting.

Södra's pulp production generates biogenic carbon dioxide, which has the potential to play an active role in future value chains. By developing technologies to utilise this carbon dioxide, new opportunities arise to extend the value chain and support a circular bioeconomy. Captured carbon dioxide can be used as a raw material in sectors such as food production, water purification or chemical manufacturing, as well as in longer-lived products like construction materials or e-fuels. It can also be permanently stored, thereby enabling negative emissions. This allows Södra to create additional value from the same volume of forest raw material, while improving resource efficiency and developing new revenue streams.

"Carbon capture is a technology with the potential to generate new revenue streams and strengthen our customer offering. By capturing biogenic carbon dioxide - a currently untapped resource - we can meet the growing demand for products with a low carbon footprint and build long-term competitiveness," says Johannes Bogren, President of Södra Bioproducts.

The test facility, based on technology from Canadian company Svante Technologies, will be tested in Södra's own environment at the Värö site. The aim is to build knowledge around the technology and evaluate opportunities for large-scale capture in the future.

"By conducting trials with carbon capture, we're building expertise based on our own conditions. It's an important step in driving innovation and developing new solutions that strengthens our competitiveness and the profitability of forest estates," says Jenny Gotthardsson, General Manager at Södra Cell Värö.

During parts of the test period, a facility from the research institute RISE will also be connected to test liquefaction of the captured carbon dioxide. This enables exploration of the entire chain - from capture to liquid carbon dioxide. The goal of the project is to evaluate both technology and business models for future investments. It also marks a step towards developing new value chains and revenue streams from the same volume of raw material.

The project is funded through Industriklivet, which is part of the EU's Recovery and Resilience Facility (RRF), under the Next Generation EU programme. Industriklivet is a government initiative managed by the Swedish Energy Agency.

Södra's position: Forests, a prerequisite for capturing and utilising carbon dioxide