Europe maps a course toward the industry of tomorrow.

Research and development comes to the fore with the launch of a new Strategic Research Agenda for the entire forest products industry.

Research and development (R&D) is a prickly issue for any business. On the one hand, without the appropriate amount of R&D spending the business might fall behind its competitors or lose market share to another fresh, young industry. However, too much R&D spending will eat into operating profits and reduce the share price for an uncertain upside that might only arrive after the current CEO has left the building--if at all. Then there is the eternal conflict between the benefits of collaborating to spread risk and losing competitive advantage.

What everyone agrees on, though, is that R&D is important (whether or not it is actually more important than the results for the current fiscal quarter). As a result, academics, technologists, governments and industry have all seen myriad attempts to control the R&D process and its outcomes using a dazzling array of management techniques, incentives and well-meaning initiatives.

Certainly, the ideal of providing the optimum amount of effort and resources is an admirable goal, but it's clear that it is unattainable. Not least, of course, because the "optimum amount" varies widely between almost every party involved in the process.

However, just because people disagree should not mean that a laudable goal is abandoned. And for the pulp and paper industry, the latest news from Europe provides some optimism that the process can at least be a little better coordinated, even if the R&D beast is likely to remain as hard to tame as ever.

BOLD INITIATIVE

A Strategic Research Agenda for Innovation, Competitiveness and Quality of Life is the end result of many months of work by the Forest Technology Platform (FTP). The FTP was set up by the European Confederation of Woodworking Industries (CEI-Bois), the Confederation of European Forest Owners (CEPF) and the Confederation of European Paper Industries (CEPI) to establish and help implement an R&D "roadmap" for the sector. The initiative is supported by a wide range of stakeholders, including the European Commission, research institutions, industry and others along the value chain.

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The Strategic Research Agenda (SRA) covers several major industry sectors, but the idea is that by providing the basis for coordination and collaboration, the pulp and paper industry will benefit as much as anyone. And with the collaboration with the EU, there is also the prospect of extra European funds to help push public-private research projects that fall within the realm of the SRA.

As the report's authors noted at its launch in February, "Now, after nearly one year of thinking, writing and consultation, more than 700 proposals for future common research were condensed into the Strategic Research Agenda of the Forest-based Sector Technology Platform, an initiative at European level based on public-private partnership. These proposals, coming from all over Europe, encompass the full range of complexity and variety the sector represents, from paper to packaging, from building with wood to bio-energy from wood, from trees to new trends. Through joint innovative R&D activities, the Forest-Based Sector Technology Platform will strengthen the competitiveness of the sector and contribute to the improvement in the quality of life of European citizens."

Many of those involved clearly believe that this initiative will prove to be very positive for the sector as a whole, but it will not be a success without the whole-hearted commitment of the major players across the sector.

Indeed, as the chairman of the CEPF (Confederation of European Forest Owners), Esa Harmala, points out, "Certainly, there are very big expectations for this program. Not just in terms of new approaches, but also in terms of creating entirely new products, whether it's intelligent materials or new approaches to materials handling or anything else. Of course, it depends on the actions and participation of different partners, but I think they are already active in pursuing the goals of the technology platform and it represents a challenging opportunity. To my knowledge, it's had a very positive response from almost everyone so far."

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Lars Gadda, senior vice president of R&D at M-Real, also believes that the SRA can provide the impetus for a far more dynamic future for the industry. "It's absolutely essential that we get the message out in all ways possible to inform people about the topics and targets of these important research areas," he says. "Of course, the Commission and the EU are important, but many of these topics will get support anyway. The good thing is that we can coordinate more easily and this is especially important when we are talking about riskier projects."

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Inevitably, some of the areas targeted for research are likely to produce short-term gains, while others are really aimed at tackling long-term issues. So one of the key elements of the SRA is attempting to balance these objectives, as Harmala explains: "Of course, the pace of research is always very difficult to determine and it's very different depending on whether you ask a researcher or a policymaker or business person--they tend to work to different timeframes anyway. What is needed though, is to get the processing industries, both mechanical and chemical, working toward new and better solutions for what are very difficult problems on both a European and global level."

As a result, the program covers almost everything from sustainability and the development and production of innovative products, to resource availability, multiple forest use, biodiversity, the production of bio-energy and energy efficiency.

All of these and more are included in the Strategic Research Agenda, so this is clearly a massive initiative that will help drive the sector forward for years to come. Not only that, but the positives will affect everyone involved in the sector across the globe.

MORE TO DO

For those interested in finding out more or getting involved, www.forestplatform.org is the best starting point. And in May, a conference will be held at the Agricultural Research and Education Centre in Irdning, Austria. Here, the new SRA will be formally introduced to the world and the event will help promote awareness and cooperation for the aims of the initiative across everyone involved--directly or indirectly--with Europe's forest products sector.

The two-day conference takes place as part of the Austria's EU presidency in the first half of 2006 and features a host of speakers from the pulp and paper industry including Bjorn Hagglund, chairman of the High Level Group established as part of the Forest Technology Platform, Claes Goram Beckeman, who is project director of the FTP and the likes of Jan Oksum, CEO of Norske Skog.

Given that the FTP is being closely coordinated through the European Commission (EC), Christian Paterman, EC director, will be talking about the 7th Framework Program for Research and Technological Development, under which it is hoped that many of the aims of the SRA will be incorporated.

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However, for those who want a sneak preview on the topics that will most directly benefit the pulp and paper sector, some of the main research areas that will receive attention as part of the program are listed in the box on the previous page.

Editor's Note: The conference, "From Vision to Reality: The Strategic Research Agenda for the Forest-Based Sector," takes place May 2-3 in Austria.

Figure 1.

                        Forest-Based Value Chains

   Strategic           Forestry                Wood
  Objectives                                 Products

1. Development   1-6: Commercialising  1-1: A new generation
of innovative         soft forest           of functional
products for          values                packaging
changing
markets and
customer needs

                                       1-4: Living with wood

                                       1-5: Building with
                                            wood

                                       1-10: New generation
                                            of composites

2. Development                         2-4: Advanced
of intelligent                              technologies for
and efficient                               primary wood
manufacturing                               processing
processes,
including
reduced energy
consumption

                                       2-5: New
                                            manufacturing
                                            technologies for
                                            wood products

3. Enhancing     3-1: Trees for the    3-2: "Tailor-made"
availability          future                wood supply
and use of
forest biomass
for products
and energy

                 3-2: "Tailor-made:    3-4: Recycling wood
                      wood supply           products--a new
                                            material resource

4. Meeting the   4-1: Forests for
multifunctional       multiple
demands on            needs
forest
resources and
their
sustainable
management

                 4-2: Advancing
                      knowledge on
                      forest
                      ecosystems

                 4-3: Adapting
                      forestry
                      to climate
                      change

5. The sector    5-1: Assessing the overall performance of
in a societal         the sector
perspective

                 5-2: Instruments for good forest-sector
                      governance

                 5-3: Citizens' perceptions

                         Forest-Based Value Chains

   Strategic          Pulp & Paper             Bio-energy
  Objectives           Products

1. Development   1-1: A new               1-7: Moving Europe
of innovative         generation               with the help
products for          of functional            of bio-fuels
changing              packaging
markets and
customer needs

                 1-2: Paper as a partner  1-8: Pulp, energy
                      in communication,        and chemicals
                      education and            from wood
                      learning                 bio-refinery

                 1-3: Advancing hygiene
                      and health care

                 1-8: Pulp, energy and
                      chemicals from
                      wood bio-refinery

                 1-10: New generation
                       of composites

2. Development   2-1: Reengineering the   2-3: Reducing energy
of intelligent        fibre-based value-       consumption in
and efficient         chain                    pulp and paper,
manufacturing                                  mills
processes,
including
reduced energy
consumption

                 2-2: More performance    2-6: Technologies to
                      from less inputs         boost heat and
                      in paper products        power output

                 2-3: Reducing energy
                      consumption in
                      pulp and paper
                      mills

3. Enhancing     3-2: "Tailor-made" wood  3-2: "Tailor-made"
availability          supply                   wood supply
and use of
forest biomass
for products
and energy

                 3-3: Streamlined paper
                      recycling

4. Meeting the
multifunctional
demands on
forest
resources and
their
sustainable
management

5. The sector    5-1: Assessing the overall performance of the
in a societal         sector
perspective
                 5-2: Instruments for good forest-sector
                      governance

                 5-3: Citizens' perceptions

                 Forest-Based Value Chains

   Strategic            Specialities
 Objectives

1. Development     1-8: Pulp, energy and
of innovative           chemicals from
products for            wood bio-
changing                refinery
markets and
customer needs

                   1-9: "Green"
                        specialty
                        chemicals

                   1-10: New generation
                         of composites

2. Development
of intelligent
and efficient
manufacturing
processes,
including
reduced energy
consumption

3. Enhancing       3-2: "Tailor-made"
availability            wood supply
and use of
forest biomass
for products
and energy

4. Meeting the
multifunctional
demands on
forest
resources and
their
sustainable
management

5. The sector     5-1: Assessing the
in a societal          overall performance
perspective            of the sector

                  5-2: Instruments for
                       good forest-sector
                       governance

                  5-3: Citizens'
                       perceptions

Italic = addressing more than one Value Chain

RELATED ARTICLE

WHAT YOU WILL LEARN:

* How the forest products industry aims to develop new products and services

* How certain research areas will benefit the pulp and paper sector

ADDITIONAL RESOURCES:

* www.forestplatform.org

RELATED ARTICLE: INDUSTRY AIMS TO TARGET WINNERS IN THE R&D STAKES

The pulp and paper industry could see benefits from many of the research areas targeted in the Strategic Research Agenda (SRA), but some may be more relevant than others (see Figure 1). Here is a selection of some of the most exciting projects that could change the structure of the pulp and paper industry.

A new generation of functional packaging: Emerging material technologies, advances in toxicology and the utilization of active ingredients could help generate a host of new packaging systems. Embedded information and communication technologies will also be used to create new functionalities via smart interfaces, sensors, interactive electronic components and biometric components that can be added to packaging materials using printing technologies allowing for low production costs.

Pulp, energy and "green" chemicals from wood bio-refineries: Fully integrating the production of pulp, energy, and chemicals from wood could help develop a bio-based economy. The SRA envisages new value chains based on bio-refineries, which utilize the close integration of chemical pulp manufacture and the optimized production of bio-fuels and different base or platform chemicals.

Lower energy consumption: Through energy savings and integrated approaches, the aim is to make the pulp and paper industry a net producer of bio-energy. The sector already generates renewable energy, but by doing even more cost-competitiveness will increase along with the industry's potential to provide bio-energy to external users. This research area aims to deliver energy savings within current processes, as well as helping to replace some of today's energy intensive processes in mechanical pulping, mechanical fiber treatments, drying, etc.

Trees for the future: Modern breeding techniques may improve wood characteristics, fiber biomass, and all the properties of growing trees. Research will help develop strategies on how best to utilize genetically superior trees in plantations and semi-natural forests, increasing crop productivity or even creating "precision raw materials."

Assessing overall sector performance: Developing an understanding of the industry's sustainability is vital. Criteria and indicators for the integration of economic, social, and environmental dimensions of sustainability need to be available and methodologies and relevant data are needed to assess sector performance.

These areas are just a fraction of the program that promoters of the Forest Technology Platform intend to cover, but if the pulp and paper industry can act decisively and extract the full benefits of the Strategic Research Agenda, then there will be benefits for all.

As Bjorn Hagglund's team at the FTP points out, "The amazing properties of wood means that today there is probably no other major industry that positively influences the daily life of Europe's citizens as broadly as the forest-based sector. This situation is not guaranteed, however. On the contrary, the sector is subject to a variety of threats and challenges, mainly due to increased global competition, changes in the energy market, and the concern for the effects of climate change. The forest-based sector can turn these threats and challenges into opportunities, though. And with the aid of the FTP and its SRA, that is the goal."

And a worthy one at that.

BY JIM KENNY, INTERNATIONAL EDITOR

ABOUT THE AUTHOR

Jim Kenny is international editor for Solutions! magazine, and is based in Brussels, Belgium. He is the former vice president of editorial for Paperloop and today heads his own company, DSI. Contact him by phone at [phone], or by email at [e-mail].