The project explored the use of forestry side streams to develop sustainable bio-based alternatives to synthetic industrial products. It was implemented through cooperation between 30 project partners and associated partners from five Baltic Sea Region countries, combining expertise from research institutions, industry, and public organizations. The forestry sector produces significant volumes of residual biomass, such as bark, needles, cones, wood chips, and sawdust, which were predominantly used for energy, but their composition and availability suggested potential for higher-value applications through biorefinery. A tannin-rich spruce bark extract developed within the project showed strong antimicrobial effects, significantly reducing bacterial growth, acidification, and hazardous gas formation in recycled pulp and wastewater systems, and performing as well as or better than conventional synthetic biocides. The project also laid a strong foundation for future collaboration, including the pursuit of new projects and partnerships across different areas.

Industrial-scale extraction was technically feasible, but economic viability required production at a larger scale than a single pulp mill. To support feasibility assessments, the project collected sawmill production data and created an openly available ArcGIS map indicating unutilized biomass residues—including bark, sawdust, chips, shavings, and ash—across the five countries. A pilot plant supplied optimally prepared spruce, pine, and birch bark fractions for laboratory- and pilot-scale extractions, enabling method optimization, seasonal monitoring, and delivery of extractives for industrial testing. The project also piloted a Nordic–Baltic value chain for natural tanning agents, investigating spruce and birch inner bark extracts as sustainable tannin sources to replace imported vegetable tannins.

A report on biorefinery and processing methods described cascading utilization pathways and bioactive compound isolation for applications in food, biopharmacy, and other sectors, including development of nutritionally enhanced meat analogues with improved shelf life. A wood ash recycling planning tool was developed to support sawmills in identifying suitable forest sites, estimating costs, and facilitating sustainable ash utilization as a soil amendment. Technical and economic feasibility assessments of higher-value products revealed that tannin-based applications were the most promising, while other products, such as shikimic acid and fermented spruce needle ingredients, faced challenges due to low yields and technological immaturity. The project developed circular business models using forestry residues, including antimicrobial extracts, food preservatives, cosmetic ingredients, and plant-based meat analogues, with green extraction technologies such as supercritical CO₂, ultrasound, and fermentation identified as key for sustainable production. Overall, CEforestry demonstrated that forestry residues supported a viable circular bioeconomy in the Baltic Sea Region, offering environmental, economic, and social benefits.

Major efforts were dedicated to dissemination of project results to reach target groups, stakeholders (at first forestry sector) as well as politicians and general public, thus supporting strategic aims of EU (considering recent New Bioeconomy strategy), but especially position of BSR countries and supporting implementation of circular economy concepts.

Based on the results the project produced policy brief for sustainable utilizing of forestry side streams to promote circular bioeconomy highlighting the needs of the updated European Bioeconomy strategy to promote added-value bio-based products and to decrease regulations:

• Forestry side streams from sawmills could be utilized in industrial scale high value-added products such as

1. Tannins as biocides for wastewater treatment

and in pulp mills as well as tannins for treatment of leather as tanning agents to replace imported vegetable tannins

2. Business potential has also been found in antibacterial extracts for cosmetics and food industry. These applications require more

development to meet regulatory, safety and profitability needs.