Borregaard has the world's most advanced biorefinery. By using wood as a raw material, the company produces environmentally friendly and sustainable biochemicals, biomaterials and biofuel that can replace oil-based products.

Borregaard’s vanilla flavour produced from Norwegian timber’s lignin is in increasing demand as an alternative to vanilla flavours made from oil, the dominant product in the market. Also, within the company, wood chippings are treated so that cellulose fibres are released, while remaining timber parts, such as binding agents and sugar compounds, are separated in the pulping processes with components flowing toward the ethanol factory; remaining residual organic material is biologically treated to become biogas (methane).