This overlooked resource could unlock revenue, innovation, and a circular economy in BC.
Canada's forestry sector, the world's second-largest exporter of forest products, is at a crucial juncture, navigating global competition and market instability. In British Columbia, the dominant Kraft pulping process yields substantial revenue but treats lignin—a major byproduct—as mere fuel, burning most of it for energy. The key to strengthening the industry lies in lignin's billion-dollar potential: this previously untapped resource positions Canada to lead the dynamic forest bioeconomy by driving innovation and economic growth.
What is lignin?
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.
Building off of our previous Lignin Forest Bioeconomy Case Study, a new report by AFRY and Foresight, with the support of partners the BC Pulp and Paper Coalition and CRIBE, introduces the potential to transform this low-value byproduct into a high-value industrial material. By investing in the extraction and commercialization of BC's lignin, the industry can achieve three major benefits:
New Revenue Streams: Creating a stable, secondary income source to boost the financial stability and global competitiveness of pulp producers.
A True Circular Economy: Utilizing existing wood residues and reducing waste, aligning the industry with crucial sustainability goals.
Bio-based Innovation: Positioning lignin as a sustainable, bio-based alternative to fossil-based resins in engineered wood products like OSB, dramatically lowering the materials' environmental footprint.
Discover how lignin is the key to boosting BC's economy and securing its leadership in the global net-zero transition. Download the full report Investing in Lignin Production in British Columbia: Understanding the Opportunity below.
Access the Full Report
Our Partners
The British Columbia Net Zero Innovation Network (BCNZIN) thanks Pacific Economic Development Canada; and the BC Ministry for Energy, Mining and Low Carbon Innovation for their support. The Lignin Project received funding from the BC Pulp and Paper Coalition, the BC Ministry of Forests, CRIBE, and the Indigenous Forest Bioeconomy Program.
