Innovation Norway has given Norske Skog NOK6.5 million (A$1.04 million) to develop new technology to produce better paper and new products.
NOK4.5 million goes to further development of microfibrillated cellulose (MFC) - or so-called nanocellulose - while a further NOK2 million is for the development of fibreboard.
MFC is a renewable product seen as a new commodity to enhance paper-based products, and can be developed as a replacement for plastic products and a thickening substance in products such as paint.
President and chief executive Sven Ombudstvedt says successful development and use in paper production could reduce our costs and make the group more competitive: "At the same time, the MFC competence will be useful for the entire group," he says.
Innovation Norway has already funded a pre-built pilot plant for MFC production at Norske Skog's Saugbrugs mill, capable of producing a ton a day from later this year.
Saugbrugs chief executive Kjell Arve Kure says the MFC plant can be one of the leading facilities in the world, and may eventually give Norske Skog a unique knowledge to produce new environmentally friendly and renewable products.
The main purpose of the NOK18.4 million project is to develop MFC from thermomechanical pulp.
Microfibrillated cellulose has special characteristics and can be applied in a number of areas, with research and production so far been based on chemical cellulose pulp (sulphate and sulphite pulp). Only a handful larger production facilities exists. Production of MFC from thermomechanical pulp is entirely new.
The fibreboard project has already delivered test results with boards having a solid structure, light weight and excellent insulation capabilities. Funding will cover the building of a pilot plant to develop production techniques to realize full-scale production.