U.S. Department of Energy Launches AI Initiative to Modernize Pulp and Paper Industry

The U.S. Department of Energy (DOE) is leveraging artificial intelligence, digital manufacturing, and advanced materials science to transform an industry that has seen little change for decades. The newly launched national initiative—the Center for Research and Advancement of Forest Products Technology (CRAFT)—will develop next-generation technologies to modernize the country's pulp, paper, and packaging industries, which support thousands of manufacturing jobs but still rely on outdated factory infrastructure. The initiative is led by the DOE's Oak Ridge National Laboratory (ORNL). The program will bring together multiple national laboratories, universities, and industry partners to improve manufacturing efficiency and help domestic producers remain globally competitive.

CRAFT's goal is not to focus on building new factories but to extract more value from existing facilities through digital transformation. Researchers will use AI-based process improvements, complex modeling, automation, and data analytics to identify operational bottlenecks, reduce downtime, increase output, and lower production costs. Daniel Coughlin, executive director of CRAFT and a senior research and development member at ORNL, stated, "The U.S. pulp and paper industry is vital to thousands of rural communities, just like the one I grew up in Maine, but much of the existing infrastructure is decades old."

Objectives and Methods of the CRAFT Initiative

The center is funded by the DOE's Industrial Technology Office within the Office of Critical Minerals and Energy Innovation, and it is supported by the Pacific Northwest National Laboratory, Idaho National Laboratory, and the newly established Rocky Mountain National Laboratory, along with an industrial partner network.

In addition to digital tools, the research initiative will also address some of the most energy-intensive manufacturing stages in the industry, including next-generation pulp processing, chemical recovery, dewatering, and drying. These processes account for a significant portion of production costs and present opportunities for efficiency improvements. Gregg Beckham, a senior researcher at CRAFT and director of the Rocky Mountain National Laboratory, stated that the initiative will combine molecular-level modeling with AI-based discoveries and experimental testing to accelerate the commercialization of new manufacturing technologies. This effort aims to bridge the long-standing gap between laboratory research and factory deployment.

Facilitating Technological Transformation and Collaboration

In its first phase, CRAFT will work directly with manufacturers to identify operational issues and determine which pilot technologies should be tested before commercial rollout. The center also plans to provide companies with advanced automation, simulation, and data analytics capabilities, which many traditional factories currently lack. Art Ragauskas, CRAFT's chief technology officer and the University of Tennessee-ORNL Governor's Chair in Biorefining, stated that the center will help reduce the technical and financial risks associated with adopting new technologies, facilitating the faster transition of promising innovations from research labs to commercial production.

In addition to research, CRAFT will serve as a national collaboration hub. It will bring together paper manufacturers, equipment suppliers, downstream customers, and researchers to coordinate technology development based on industry needs and support workforce development. DOE officials stated that the initiative aims to strengthen domestic manufacturing, enhance the competitiveness of U.S. forest products, and help maintain high-value industrial jobs in rural communities that have long depended on the pulp and paper industry.

Impact of the CRAFT Initiative on the Pulp Industry

The launch of the CRAFT initiative marks a significant transformation for the U.S. pulp and paper industry. As the sector faces global competitive pressures, leveraging artificial intelligence and digital technologies to enhance the efficiency of existing facilities will help reduce production costs and increase output. Furthermore, the initiative not only focuses on technological innovation but also emphasizes collaboration within the industry, which is crucial for addressing the increasingly challenging market environment. By integrating the strengths of research institutions and manufacturers, the CRAFT initiative is expected to accelerate the commercialization of new technologies, thereby supporting the economic viability of communities reliant on this industry.