Canada’s pulp and paper sector stands at a strategic inflection point. Global competition is intensifying, cost structures favor international competitors, and investment decisions made now will determine whether Canadian mills retain relevance in international markets or continue to cede market share. At the same time, the sector’s kraft pulp mills are faced with energy efficiency challenges that are critical to lower operating costs. The Canadian pulp and paper sector is in the top 10 of the most greenhouse gas intensive industries [1]. Decarbonization of mills needs investment, but savings that result from reducing a mill’s fossil fuel costs and avoiding carbon taxes enhances the acceptability of these investments.
The Canadian pulp and paper sector fuel utilization relies mainly from biomass sources (wood waste and spent liquor), the industry still uses fossil fuels (Figure 1). The industry’s non biogenic (combustion of fossil fuels) greenhouse gases emissions for the year 2022 were 8.1 Mt CO² eq/year (5.1 Mt CO² eq/year excluding electricity) [2], of which pulp mills emitted 4.9 Mt CO² eq per year (3.4 Mt CO² eq per year excluding electricity) [3].
Figure 1. Pulp and Paper Secondary Energy Use for 2022 [2],
One of the principal challenges that Canadian kraft mills face towards decarbonization is that they are older and less efficient when compared with more modern mills in other parts of the world. Typically, modern mills require 50% less thermal energy than an average Canadian kraft pulp mill (modern: ~10 GJ/t vs Canadian average: ~20 GJ/t) and consumes less water (~10 m³/t vs ~70 m³/t) [4,5]. An average Canadian kraft pulp mill fossil fuel usage (mainly natural gas) is in the lime kiln and for energy production . Energy consumption of Canadian lime kilns is on average 8.5 GJ/t lime compared with 5.4 – 6.8 GJ/t lime for some modern mills. High energy utilization has an impact on overall production costs (~5 vs ~50 $/t) [6]. In conclusion, modernization is crucial for mills to decarbonize but also to remain competitive. However, Canadian mills need to consider their full context to select the optimal options that can help them achieve decarbonization and modernize operations.
FPInnovations has been researching options for the mills to modernize. Figure 2 shows a high-level view of a modernized kraft mill. The modernization pathways should consider:
- Increasing energy efficiency. It is feasible to reduce fuel utilization for energy production by 10-30% by optimizing existing water-energy networks, minimizing water usage, process debottlenecking, optimized automation and increasing boilers efficiency.
- Upgrading recovery boilers (new boilers are more efficient and operate at higher pressures and temperatures) would create a surplus of bioenergy that can be translated into more power sold to the grid.
Figure 2. Potential options for Canadian kraft pulp mills decarbonization
- Lime kilns decarbonization can be achieved by replacing fossil fuel with biomass-based fuel. This is technically feasible as it has been implemented in several mills around the world. Solid firing seems as the most suitable as the technology is well known (more than 10 installation in the world), requires less capital, it is the best fit for the average Canadian lime kiln capacities, and the process is less complex than other options [7].
- Implementing new and mature technologies to further reduce energy and chemicals utilization: membranes for black liquor concentration, oxygen delignification, lime mud drying, more efficient evaporators, tall oil or lignin extraction (used internally or to sell), and many more.
- Carbon capture and utilization and storage (CCUS) might play a role in decarbonization, and its integration is technically feasible. Economic feasibility would depend on government subsidies and offtake agreements.
- Modernization will also help reduce labor costs and offer opportunities for integration (e.g. packaging and/or hardwood uptake).
For more information contact
Enrique Mateos-Espejel, Senior Scientist in FPInnovations’ Thermal Process group.
enrique.mateos-espejel@fpinnovations.ca
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https://oee.rncan.gc.ca/corporate/statistics/neud/dpa/showTable.cfm?type=CP§or=id&juris=ca&year=2022&rn=5&page=0 (accessed 12/17/2025)
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Kangas, et al. (2014)., Evaluation of future pulp mill concepts – Reference model of a modern Nordic kraft pulp mill, Nordic Pulp & Paper Research Journal 29 (4) p. 620 -634
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FPInnovations (2008) Benchmarking Energy Use in Canadian Pulp and Paper mills
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RISI Fastmarkets
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FPInnovations, Lime kiln fuel switching: Canadian perspective, 2023 (Internal Report)
