NORWAY (News release) -- Innovation Norway has allocated NOK 17 million for research and development of fiber composites at Norske Skog Saugbrugs and Borregaard. The parties will work to develop a new type of biocomposite that may include furniture, packaging and car interiors. Norske Skog and Borregaard will develop sustainable solutions related to plastic raw materials, fiber blending, technology development and testing of biocomposites.

In a research project amounting to NOK 20 million, Norske Skog Saugbrugs will seek to find solutions to problems related to plastic raw materials, fiber blending, technology development and biocomposite testing, in which Innovation Norway will contribute NOK 7 million. Borregaard's project, pulp-enhanced biocomposites, has a total budget of NOK 30 million, with funding from Innovation Norway amounting to NOK 10 million. The research and development to produce biocomposites will mainly take place at a demonstration plant being built at Norske Skog Saugbrugs.

"The goal is to reduce the use of fossil plastics by offering solutions for high value segments and advanced applications in plastics. In this way, the wood processing industry can help solve sustainability challenges in the plastics industry," says Per A. Sørlie, CEO of Borregaard.

The biocomposite consists of fiber from spruce, produced at the Saugbrugs and Borregaard plants, which together with thermoplastics are mixed and delivered as pellets to the plastics industry to produce various products such as furniture, car interiors, pipes, construction articles, consumables, packaging and more. The new innovation provides a biocomposite that replaces plastic, reduces fossil CO2 emissions, reduces oil consumption, provides better utilization of resources through increased use of recycled and renewable raw materials.

Borregaard has one of the world's most advanced and sustainable bio-refineries.