SCHWEDT/ODER, Germany — Valmet has been selected to supply key pretreatment, automation and stock preparation technologies for a new straw fiber production facility that will enable OutNature and LEIPA to incorporate agricultural residues into recycled paper manufacturing.

The project will be installed at LEIPA’s paper mill in Schwedt/Oder, where more than one million tonnes of recovered paper are processed annually into packaging and graphic papers. The straw fiber plant is scheduled to begin operations by the end of 2026.

Agricultural Straw Expands Fiber Supply

The facility will use Valmet’s BioTrac pretreatment system, a continuous steam treatment technology designed to convert lignocellulosic agricultural residues, including straw, into high-quality fibers suitable for papermaking.

LEIPA plans to blend the straw fibers with recovered paper, creating an alternative fiber source that can reduce dependence on virgin wood pulp while improving the quality of recycled fiber-based paper products.

As a by-product of grain production, straw does not require additional farmland and can be sourced locally, helping reduce transportation emissions and strengthen regional raw material supply chains.

Circular Economy Focus

According to OutNature, incorporating straw fibers into paper production helps address the gradual quality loss that occurs during repeated recycling while reducing demand for fresh wood fibers.

The company said the project supports regional agriculture by creating additional value for agricultural by-products while contributing to renewable material circularity.

The investment also aligns with the broader sustainability strategy of the Schwarz Group, of which environmental services company PreZero is a part.

Pilot Testing Demonstrated Strong Performance

Valmet said pilot trials conducted at its Sundsvall research facility demonstrated that straw fibers produced through the BioTrac process deliver strong strength properties suitable for paper manufacturing.

The technology package includes:

• Valmet BioTrac pretreatment system
• Valmet DNAe automation and control system
• Stock preparation equipment

Financial terms of the project were not disclosed.

Alternative Fibers Gain Industry Attention

The project reflects growing interest across the pulp and paper industry in diversifying fiber sources as manufacturers seek to improve raw material security, lower carbon emissions and support circular economy objectives.

Alongside recycled fiber and sustainably sourced wood pulp, agricultural residues such as straw are increasingly being explored as supplementary fiber resources capable of enhancing paper quality while reducing pressure on forest resources.

Last Updated on 15/07/2026 by Jota Machinery