Sveaskog Becomes Part Owner of SunCarbon AB - Plans for Renewable Lignin Oil Plant


Sveaskog becomes part owner of SunCarbon AB, which developed a technology for producing lignin oil from the pulp mill's black liquor.

Lignin is a renewable residual product from cellulose production at pulp mills that can replace products based on fossil raw materials.

Sveaskog is Sweden's largest forest owner and is owned by the Swedish state and thus has a responsibility to be a pioneer and an example in sustainable business and in the development of innovations based on the Swedish forest. With this ambition, Sveaskog has since 2014 cooperated with SunCarbon AB and now acquires one-third of the shares in the company. SunCarbon AB has a unique process for extracting and refining lignin into a high-grade lignin oil, a renewable and climate-smart alternative to fossil products based on a pulp mill's residual product.

SunCarbon's lignin oil is of very high quality and purity and can thus be used in demanding applications such as biofuels, other petrochemical products, fine chemicals or various materials. Lignin is thus one of several solutions that can help phase out various fossil products and reduce the society's climate impact.

“Our most important task is to take care of the forest so that it can continue to create societal and climate values, but also to ensure that the forest has an important role for our future society. Through this investment, we contribute to the forest and residual products from forestry and industry being given a central role in the phasing out of fossil products in our society”, says Per-Olof Wedin, President and CEO of Sveaskog.

"SunCarbon's technology means that the pulp mill receives a new revenue stream from the lignin oil, but in addition it can increase the production of cellulose, which helps to strengthen the mill's profitability and competitiveness, thereby also contributing to increasing the use and value of the wood", says Jan Wintzell, Head of Business Development and Innovation at Sveaskog.

SunCarbon is now planning to complete a production plant for the extraction of lignin oil with production start to the beginning of 2022. The first plant will be able to produce about 45 000 tonnes of lignin oil per year.

SunCarbon's technology and process for the extraction of lignin oil is unique and has the following benefits:

  • A complete process where both the extraction and refinement of lignin into lignin oil takes place in a process that is integrated with pulp.
  • A technology and process that is fully compatible with the pulp mill's processes, with minimal impact on the chemical balance at the mill.
  • Lignin oil with a very high technical quality, purity and durability performance that can withstand demanding applications; both in refinery products and fine chemicals and materials.
  • A cost-competitive production and lignin oil product, which makes SunCarbon's technology commercially attractive.

SunCarbon's partner is besides Sveaskog also Preem, KIRAM, Arkell Innovations and Hulteberg Chemistry & Engineering.

SVEASKOG is Sweden's largest forest owner and sells timber, pulpwood and biofuel. In addition, Sveaskog makes land transactions and develops the forest as a place for hunting, fishing and other nature experiences. The forest with its assets is Sveaskog's core business and sustainable development permeates everything that is done. Sales in 2018 were SEK 7 billion and the number of employees was approximately 846. Read more at

Source: Sveaskog