As the world’s second-largest forestry products exporter, Canada is uniquely positioned to lead the dynamic and evolving forest bioeconomy sector. One particularly exciting opportunity lies in the production of lignin-based products from forestry residuals, which can replace traditional petroleum-based and higher-emitting goods, driving both economic growth and sustainability in British Columbia.

What is lingnin?

Lignin, a complex organic polymer found in the cell walls of plants, particularly in wood and bark, has historically been treated as a waste product in the paper and pulp industry. However, technological advances and a growing emphasis on sustainability are unlocking its potential for high-value applications. The global demand for lignin-based products is growing rapidly, fueled by the need for bio-based, sustainable alternatives across industries. In 2023, the global lignin market was valued at over USD $1 billion and is projected to grow at a compound annual growth rate of 4.5 per cent from 2024 to 2030.

New opportunities

Recognizing these opportunities, Foresight Canada’s BC Net Zero Innovation Network (BCNZIN) convened innovators, industry leaders, government representatives, and First Nations to explore barriers and opportunities in lignin production. Together, they aimed to accelerate the development of a lignin facility in British Columbia while also identifying broader opportunities within the province's pulp and paper sector.

In early 2024, the engineering advisory firm AFRY evaluated 13 potential lignin end uses, narrowing the focus to phenolic resin and dispersants as the most viable short-term investment opportunities for BC pulp mills. For longer-term investments, AFRY identified Li-ion battery anodes, thermoplastics, and carbon black as promising applications. These three major applications were further validated and agreed upon by industry partners for in-depth exploration.

Building on this initial analysis, the project has since expanded to establish estimates for facility operating and capital expenditures for each of the five opportunities. This work also includes assessing feedstock availability, the viability of single versus multiple facilities, potential facility locations, hosting conditions (including government support), and strategies to capture value domestically rather than exporting kraft lignin.

With this data in hand, BCNZIN will be equipped to provide recommendations to Canadian bioeconomy industry members and First Nations rights holders looking to take advantage of this billion dollar opportunity. The work thus far could not have been completed without the invaluable participation of the numerous groups involved in these initial conversations. If successful, this project could pave the way for new facilities, the creation of sustainable made-in-Canada products, and significant economic development for local communities. To us, this project perfectly exemplifies the purpose and power of BCNZIN—aligning collaborator agendas to capitalize on opportunities that economically benefit Canadian industries while advancing sustainability and reducing emissions.

Get involved

If you are an end user or know of a potential application for lignin, we encourage you to reach out or explore similar opportunities showcased in our Ventures to Value Chains: Forest Bioeconomy Report which can be downloaded below.