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Wood’s molecular-level innovations open up incredible opportunities
Juuso Konttinen
Juuso Konttinen, who joined Elomatic’s board just over 1.5 years ago, leads the biomaterials growth business unit at Stora Enso. His team is currently immersed in the exciting fields of sustainable battery materials, bio-based chemicals, and renewable fiber products.
How do you see the sustainability challenges of the forest industry compared to other sectors?
In the forest industry, a major topic is the sustainable use of forests and how to manage this in practice. However, compliance with environmental regulations, industry standards, and the adoption of voluntary management practices have long been standard practice for us, providing valuable insights to other industries. We have extensive expertise, technologies, monitoring systems, certifications, and standardized processes that could benefit other sectors as well.
What opportunities do you see in forest sector innovations, such as biomaterials?
The forest sector is undergoing a big transformation. So far, the focus has been on the energy value of wood, its structural properties, such as using timber in construction, and wood fiber-based products like packaging boards. While these applications remain relevant, a new dimension is emerging at the molecular level. This involves utilizing wood’s molecular components for various purposes, such as battery materials or bio-based chemicals.
New possibilities are arising for the use of lignin, which is one of the three main components of wood, alongside cellulose and hemicellulose. Currently, it is primarily used for energy production in pulp production, even though it is a renewable resource with potential for various material application
A new dimension is emerging at the molecular level. This involves utilizing wood’s molecular components for various purposes, such as battery materials or bio-based chemicals.
Can you elaborate on what can be made from lignin?
One example already in use is lignin-based adhesives. Moreover, a wide range of new possibilities is emerging. At Stora Enso, we are actively developing lignin-based hard carbon for battery anodes to replace fossil and mined graphite. We have been working on this for years and have a pilot plant running in Kotka that allows us to test and refine the process with customers. In the near future, we plan to build a larger demonstration plant to further validate the concept for commercialization.
How do you view the potential of wood-based battery materials?
Electrification is inevitable and a prerequisite for achieving our climate goals, thus the demand for batteries is growing rapidly. Batteries require carbon-based anodes, which presents a significant opportunity to provide sustainable solutions using renewable raw materials. After all, electrification must be viewed as a holistic sustainable option – not only by focusing on emissions-free vehicles but also by considering the entire lifecycle of the battery.
There are two parallel approaches in bio-based battery materials. Bio-graphite serves as a direct substitute for the fossil- or mineral-based graphite currently used in anodes. Another option is hard carbon derived from lignin, which has a slightly different structure than graphite but can still be used in batteries, offering distinct functional benefits.
The forest industry produces carbon dioxide (CO2), which contributes to climate change, during its processes. What steps are you taking to capture and further utilize it?
We are actively researching carbon capture from our processes and the potential for converting it into new products. We already have a pilot project to capture carbon underway in Skutskär, Sweden. A key distinction compared to carbon capture in fossil-based industries is that our CO2 emissions are mostly biogenic: when we capture CO2 from pulp production and convert it into new products, those products are bio-based, providing a significant advantage.
What do you see as the biggest obstacles to advancing sustainability?
First, developing new technologies is anything but fast and straightforward. It requires significant long-term effort and investment to find and implement technologies that can produce what customers want while considering sustainability. Additionally, commercializing new products takes time, especially when these products have new or different properties. If the new products are direct, one-to-one replacements for current fossil-based alternatives, customer adoption tends to be quicker and smoother.
Are customers willing to pay for sustainable products?
Some products are more expensive initially compared to their less sustainable counterparts, making it essential to find the right customers who recognize their value within their own businesses and are willing to pay the appropriate price. Overall, there has been a noticeable shift in customer expectations.
Customers vary widely: some are early adopters eager to introduce sustainable products into the market and expand their portfolios, believing it is the right thing to do. Others are more reactive, influenced by the value chain as end customers demand products that meet specific sustainability criteria. Additionally, there are regulated sectors where certain standards must be met, as well as business areas where sustainability is not a primary decision factor and is often undervalued. Fortunately, even in these latter areas, an increasing number of customers are beginning to take the initiative.
Overall, there has been a noticeable shift in customer expectations.
Can you name a sector with many frontrunners?
Packaging is one such sector. There has been a noticeable shift from plastic packaging to fiber-based packaging or renewable plastic solutions. Packaging labels have even been introduced to highlight the packages’ lower carbon footprint or that they are made entirely from renewable materials. Since packaging is so close to the end consumer, there is clear pressure throughout the value chain to adopt sustainable practices.
How do you see public measures, such as legislation and subsidies, affecting the sustainability efforts in the forest industry?
Regulation can be beneficial on a case-by-case basis, given the increasing complexity of today’s environmental legislation. Large companies need dedicated teams to monitor regulations and advocate for appropriate legislation, which requires significant effort. On the other hand, some mechanisms play a significant role, especially in the early stages of innovation. For instance, the EU Innovation Fund supports flagship projects in sustainability, which is crucial for managing potential challenges and competing with established players.
An extreme example is biofuels, where distribution mandates have created the entire business. However, the more complex the mechanisms, the harder it is to pinpoint the exact benefits. Over time, businesses should be able to sustain themselves in a market economy to ensure long-term viability.
What expectations did you have for Elomatic’s board work?
My expectations were very positive. We had meaningful discussions with the management about the values Elomatic represents and the areas of business it focuses on. The company’s values aligned well with my own, and I saw a balance of new learning opportunities and areas where my background could make a contribution. The maritime sector was new to me, but it has been exciting to learn about it while also already applying my expertise to some matters.
How can the expertise of design and consulting companies like Elomatic best support the resolution of sustainability challenges in the forest industry?
In process industries, the solutions typically stem from technological innovations – different technologies, how the overall concept is built, and how everything is designed to ensure that financial, technical, and environmental factors are aligned. This is why I believe engineering and consulting companies have a great deal to offer when it comes to techno-economic, environmentally focused design work.
What excites you the most about the future opportunities in the forest industry?
I am particularly enthusiastic about the broad spectrum of possibilities now emerging. We are transitioning from traditional product development, which focuses on the physical or fiber structures of wood, to a new approach that aims to maximize the value of the entire tree. This includes exploring the potential of wood’s molecular components and expanding beyond conventional uses. As sustainability becomes increasingly important, new products and industries are emerging where wood can play a central role. I am excited to see how these innovations will unfold.
Juuso Konttinen
Age: 48
Lives in: Sipoo, Finland
Education: M.Sc. (Tech), M.Sc. (Econ), M.Sc. (Pol.Sc.), executive education in Harvard, IMD, Kellogg, Aalto
Employment history: Various business and leadership positions at the leading Nordic forest industry companies in Finland, the USA and Germany, multiple Board and Advisory Board positions including Chair and Vice-Chair roles in different companies and associations
Hobbies: Country house and lake activities, sports (own and kids), reading and music
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