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29 September 2026

Essity and Ahlstrom collaborate with Midstrom to advance biogenic CO₂ value chains

Midstrom, Essity and Ahlstrom have entered into a collaboration to evaluate how biogenic CO₂ from two Swedish mills could be captured, transported and connected to emerging European markets for fossil-free fuels and permanent carbon storage. Initial feasibility studies are now underway.

Midstrom has entered into collaborations with Essity Health Care AB and Ahlstrom Sweden AB to explore how biogenic CO₂ from two Swedish mills can be brought to market and used to support Europe’s transition to a low-carbon economy. As a first step, the partners have launched feasibility studies at Essity’s Lilla Edet mill and Ahlstrom’s Billingsfors mill to assess technical, logistical and commercial requirements for carbon capture and utilisation.

The collaboration brings together industrial emitters and value-chain development expertise to explore how biogenic CO₂ from Swedish pulp and paper mills could be connected with growing European demand. By working with two established pulp and paper producers, Midstrom is taking an important step towards developing scalable and commercially viable biogenic CO₂ value chains.

Connecting Swedish biogenic CO₂ sources with European demand

Biogenic CO₂ can be used as a feedstock for synthetic fuels or permanently stored to generate carbon removals. Pulp and paper mills represent a significant potential source, but many individual sites lack the scale, infrastructure and commercial arrangements needed to bring it to market.

Midstrom was created to address this gap. Its model is based on aggregating biogenic CO₂ from multiple industrial sites and connecting those volumes with companies seeking CO₂ for efuel production or carbon storage. By creating scale across several sites, Midstrom aims to reduce the infrastructure, market and regulatory barriers that many individual emitters face when seeking to bring biogenic CO₂ to market.  This approach can help reduce the risks associated with developing new CO₂ value chains, allowing industrial companies to evaluate opportunities without having to navigate evolving markets on their own.

“Biogenic CO₂ is becoming a strategic feedstock for Europe’s energy transition, but connecting dispersed industrial emitters that lack the scale, infrastructure or market access with the emerging demand remains a significant challenge. Collaborating with Essity and Ahlstrom allows us to work directly with leading industrial companies to explore how biogenic CO₂ can be brought to market and helps us further develop Midstrom’s model for building scalable value chains,” said Jeremiah Dutton, Midstrom Venture Lead at InnoEnergy.

Testing the model at two industrial sites

Essity’s Lilla Edet mill, near Gothenburg, produces tissue using a largely fossil-free energy supply, making the CO₂ in its flue gases predominantly biogenic. The study will assess the technical and operational implications of adding carbon capture at a site that has already significantly reduced fossil emissions. “Through this collaboration, we can explore how biogenic CO₂ from our operations could contribute to emerging low-carbon value chains while creating potential new opportunities for the mill,” said Johan Langren, Supply Chain Sustainability, Essity Health Care AB.

Ahlstrom’s Billingsfors mill in western Sweden produces specialty papers and offers a different industrial setup and scale, providing an opportunity to assess carbon capture integration in another manufacturing environment.

“We see value in exploring emerging opportunities linked to CO₂ and carbon capture.  A “samarbete” with Midstrom is a good way to assess these opportunities and get a grip on what could be possible for both our Billingsfors mill and potentially other sites in the future,” said Rune Årnes, Vice President Health, Safety and Environment, Ahlstrom Group.

In parallel with the site studies, InnoEnergy is working with actors across the carbon capture, transport, utilisation and storage value chain to assess potential routes from Swedish industrial sites to European customers and permanent storage.

The feasibility studies will determine the technical, logistical and commercial requirements needed to capture, transport and market biogenic CO₂ from the two mills, while assessing the long-term viability of scalable CO₂ value chains.

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