Processes, Tech, and Sustainability Should be 2025 Focus
The pulp and paper industry stands at a critical juncture with sustainability, operational efficiency, and technological innovation driving its transformation. Achieving sustainability is no longer just an aspiration—it is a necessity. By integrating optimized production processes and shifting toward renewable energy sources, mills can significantly reduce emissions and costs while safeguarding their future.
In 2025, I anticipate a gradual recovery in the pulp and paper market, bringing opportunities for improved profitability. And so, a continued focus on sustainability and efficiency improvements will be paramount as companies adapt to evolving market conditions. Significant drivers of this recovery include substantial investment and expansion projects, particularly in South America, which is solidifying its position as a key player in the global pulp industry.
Furthermore, process optimization remains a vital area for paper mills to place their focus in 2025. Reducing waste and off-spec production through quality control systems, automation, and digital solutions such as Advanced Process Control (APC) will not only boost efficiency, but also deliver measurable returns on investment. These technologies, alongside sustainability-driven efforts to develop plastic-free alternatives and implement sustainable practices, are reshaping the industry’s landscape and creating opportunities for long-term financial performance.
Another key aspect of sustainable transformation is the growing adoption of innovative energy solutions within the pulp and paper industry. While energy self-sufficiency is already well-established, the extensive use of solar power is gaining momentum, alongside the longer-term development of bio-refineries on-site in pulp mills. These bio-refineries enable mills to maximize the value of pulp byproducts, creating additional sustainable energy sources and enhancing resource efficiency.
Integrated pulp and paper mills have a distinct advantage in this area, as biomass energy derived as a byproduct of the pulping process can power entire operations, thereby reducing reliance on external energy sources. For instance, in Indonesia, mills have successfully operated “off the grid” using biomass alongside solar installations to achieve energy independence, with further plans to phase out coal completely. For mills lacking in-house energy capabilities, process electrification, supported by solar power production, is an increasingly viable path forward.
Still, challenges such as geopolitical uncertainty persist. Supply chain disruptions, trade policies, and regional conflicts impact the availability and cost of raw materials, as well as the distribution of finished products. Companies are actively seeking ways to mitigate these risks by diversifying their supply sources, investing in local production capabilities, and enhancing their logistics strategies to ensure a steady flow of materials and products.
While the recovery may be gradual, the sustained focus on sustainability, efficiency, and innovation is poised to yield positive results for the industry’s profitability and long-term viability in 2025. With the right technologies and partnerships, ABB is supporting its customers and the wider pulp and paper industry to outrun, ensuring a future that meets the needs of the industry today while securing a leaner, cleaner future for the generations of tomorrow.