Metsä Group has launched a pre-engineering project for what could become the first commercial facility designed to capture wood-based carbon dioxide.
The proposed plant would be located at the company’s pulp mill in Rauma, where CO₂ would be captured directly from the mill’s flue gases.
The plant would capture about 100,000 tonnes of wood-based CO₂ per year. This initial capacity would mark a first step toward a much larger opportunity. Metsä Group estimates that the long-term capture potential of wood-based carbon dioxide across its operations could reach several million tonnes annually.
Captured carbon dioxide could be used as a raw material for the chemical and fuel industries, replacing fossil-based inputs. According to the company, using 100,000 tonnes of wood-based CO₂ annually in the fuel value chain could avoid fossil emissions comparable to those produced by nearly 30,000 passenger cars.
To support financing, Metsä Group has applied to a reverse auction programme organised by Finland’s Ministry of Economic Affairs and Employment. The scheme provides investment support for clean-transition projects. Public funding would cover up to 30% of the total investment.
The company submitted an environmental permit application in December 2025, and a decision is expected later this year. An investment decision for the Rauma carbon capture plant could be made no earlier than early 2027. It will depend on several conditions, including a positive funding decision, an approved environmental permit, completion of the pre-engineering phase, and confirmed customer demand.
Niklas von Weymarn, CEO of Metsä Spring, said the group has been exploring ways to utilise wood-based carbon dioxide for several years. The goal is to treat CO₂ not as a by-product, but as a feedstock for new industrial products. Metsä Spring has already signed its first supply agreements with customers interested in using captured carbon dioxide.
He added that emerging industrial value chains often require public support in their early stages. The reverse-auction grant, he said, could accelerate the commercialisation of carbon capture technology while helping create new industrial activity in Finland.
The project builds on a pilot carried out in 2025 at the Rauma pulp mill in collaboration with Andritz. The pilot tested technology designed to capture carbon dioxide from pulp mill flue gases and confirmed that the process is mature enough for controlled scale-up.
The main uncertainty is the development of the market. Industrial value chains capable of using large volumes of wood-based carbon dioxide are still emerging. Their growth will require coordinated investment decisions across several sectors. Metsä Group believes the Rauma project could help accelerate the creation of this new value chain.
If built, the facility would support the strategy of Metsä Fibre to expand fossil-free operations while strengthening the competitiveness of its pulp production.
Metsä Group traces its roots to Finland’s privately owned forests. Its parent company, Metsäliitto Cooperative, is owned by approximately 90,000 Finnish forest owners. The group produces pulp, paperboards, tissue and greaseproof papers, wood products, and provides wood supply and forest services. In 2025, Metsä Group reported EUR 5.8 billion in sales and employed around 8,800 people worldwide.
Source: Metsä Group
