1. Introduction: The Paper Industry’s New Renewable Role

For decades, paper mills have been associated primarily with pulp and print production. Today, they stand at the forefront of the bioenergy transition—thanks to a remarkable transformation enabled by tall oil fatty acids (TOFA). Derived as a byproduct from the Kraft pulping process, TOFA provides a renewable, non-food-based feedstock for biofuels and green chemicals. Recent research from RSC Sustainability (2025) demonstrates that with 30–50 kg of tall oil extractable per ton of pulp, global paper mills now possess the infrastructure to produce millions of tons of sustainable fuel each year. This shift not only diversifies the paper industry’s output but also reduces its carbon footprint while strengthening the circular economy of the bio-based sector.​

2. From Pulp to Green Fuel: The Tall Oil Process

The conversion of crude tall oil (CTO) into usable fuels involves fractionating the mixture into tall oil fatty acids, rosin acids, and distillates, which can undergo hydrotreatment and co-refining within existing petroleum refineries. In a study by Churchill et al. (2025), blending TOFA with traditional refinery hot feed followed by NiMo and CoMo catalyst treatment improved heating values by 9–10% while deoxygenating up to 99% of carbon species. The resultant fuels met stringent EU and ASTM standards for biodiesel and low-carbon diesel. Moreover, partnerships between chemical engineering labs and bioenergy firms (such as Fintoil and WestRock) have enabled seamless process integration—turning kraft mills into bio-refineries capable of supplying renewable fuels while maintaining pulp production.​

3. Industrial Integration and Bio-Refinery Partnerships

Major Nordic innovators like UPM Biofuels, St1 Nordic, and Fintoil Oy have industrialized tall oil valorization pathways, producing renewable diesel and sustainable aviation fuel (SAF) directly from CTO derivatives. Fintoil’s Hamina facility, for instance, refines over 200,000 tons of tall oil annually into bioenergy inputs while integrating power recovery systems that minimize waste and dependency on fossil fuels. Globally, refinery collaborations are expanding across Europe, the U.S., and Asia, enabling co-processing of TOFA streams within conventional hydrotreater units—bridging the gap between traditional fuel refiners and forest-based bioproduct manufacturers.​

4. Economic and Environmental Advantages

Economically, integrating tall oil refining into mill operations enhances profitability by transforming waste into a high-value fuel commodity priced competitively with vegetable-based biodiesel. Environmentally, life-cycle assessment studies estimate that TOFA-based biofuels cut greenhouse gas emissions by up to 70% compared to fossil diesel. Because the feedstock originates from sustainable forestry and pulp waste, it faces minimal indirect land-use change (ILUC), making it compliant with RED II and advanced biofuel standards. The combined effects—carbon neutrality, energy independence, and cost recovery—are propelling TOFA adoption worldwide.​

5. Conclusion: The Future of Bio-Based Manufacturing

Tall oil fatty acid has evolved from a niche pulp byproduct into a cornerstone of modern bio-refinery ecosystems. By merging bio-based chemistry with energy innovation, paper mills have become key suppliers in the renewable fuel value chain. With accelerating investment in bioenergy and global net-zero targets, TOFA is set to redefine manufacturing and energy integration—proving that even legacy industries can lead the green revolution profitably.