The final two presentations at Day 2 of International Pulp Week introduced delegates to emerging business and compliance tools with implications for pulp producers globally. One focused on capturing and monetizing biogenic carbon dioxide (CO₂), the other on meeting the fast-approaching requirements of the EU Deforestation Regulation (EUDR).
Jonathan Rhone, CEO of CO280, began by stating that “capturing and permanently sequestering biogenic CO₂ from boiler stack emissions represents a $100 billion per year market opportunity for the global pulp and paper sector.” The market, he said, is being created by global technology and financial firms—“Microsoft, JPMorgan, Google”—that are purchasing high-durability carbon dioxide removals (CDRs) to meet their net zero obligations.
He said there are about 3,000 industrial sites worldwide that produce pure streams of biogenic CO₂ and are well-suited to participate in this new carbon economy. Of those, “about 250 are pulp and paper mills.” CO₂ from pulp operations is a byproduct of burning biomass for heat or energy, making it “biogenic”—that is, from renewable organic sources. Rhone argued that this makes the industry uniquely qualified: “Pulp mills are ideal—because they burn biomass, the stack CO₂ is already concentrated, and the energy needed for capture is available.”
According to Rhone, this opportunity is being driven by a shift in climate policy toward carbon removals, especially in the US, where policy mechanisms like 45Q tax credits provide up to $180 per tonne in incentives. He said companies like CO280 are developing projects that capture biogenic CO₂ from pulp mills, transport it to regional storage hubs, and sequester it in saline aquifers under Class VI permits. “This is the most scalable way to remove carbon,” Rhone stated. “It’s measurable, auditable, verifiable, and permanent for more than 1,000 years.”
He noted that credits generated through this process are sold under long-term offtake agreements with corporate buyers, and that the model allows projects to be financed off balance sheet. “It’s project-financed. Mills don’t pay up front,” he said. “We bring in the engineering, the partners, and the funding.” CO280’s first project, in Louisiana, will capture 800,000 tonnes of CO₂ annually and is already sold out to corporate buyers. According to Rhone, such projects can generate internal rates of return (IRRs) of 25–30 percent and “double mill EBITDA with zero capex.” He also emphasized that Canadian pulp mills are at a cost disadvantage compared to their US counterparts, because Canada lacks the same level of tax incentives and storage permitting efficiency. “The US has a major head start,” Rhone said, adding that Alberta is “the only viable jurisdiction in Canada right now” for this kind of development.
Parker Budding, representing Osapiens, followed with a presentation on how pulp producers can prepare for the EU Deforestation Regulation (EUDR), which comes into force on December 31, 2025. The regulation prohibits companies from placing products on the EU market unless they can prove the goods are deforestation-free and legally produced. “Time is short,” Budding began, “and the regulation is complex.” He explained that pulp producers will need to provide detailed supply chain traceability, including geolocation coordinates of land plots, documentation of land rights, and verification of legality and labour practices. “EUDR compliance is not just about deforestation,” he emphasized. “You must also prove legality and social responsibility.”
Budding summarized key updates from Version 4 of the EUDR FAQ, noting that pulp producers must track upstream forest data even when they are not the landowners. “Companies are responsible for their entire supply chain,” he said. “That includes indirect suppliers.” The regulation requires that data be made available at the shipment level, and that all actors retain this data for at least five years. To manage these requirements, Budding said Osapiens offers a compliance automation platform that helps companies centralize data, assess risk, and generate reports in real time. “Our platform is designed to handle high-volume supplier inputs,” he explained, noting that it integrates via APIs with SAP and other major systems.
He also stressed the importance of risk analysis and mitigation strategies. “If a plot is flagged as high-risk, you need to take action—and show that you did,” he said. Osapiens provides what he called a “deforestation radar” and tools for automated alerts. The system is already being used by several forestry and agri-based multinationals to prepare for compliance. Budding urged delegates not to wait until the final months of 2025. “We’re already onboarding companies now,” he said. “Full implementation typically takes three months from project start to go-live.” He framed the regulation not just as a challenge, but an opportunity to gain competitive advantage through transparency. “Smarter supply chains are more resilient and more trusted,” he concluded.
Drafted with the assistance of digital tools to streamline the process.