Background In 2010, 4.9 million m3 of oriented strand board (OSB) panels and 14.9 million m3 of medium-density fibreboard (MDF) panels were produced, out of a total quantity of engineered wood boards produced in the EU-27 countries of some 61 million m3/yr. Even though the wood panel industry focuses on environmentally friendly techniques, a vast amount of energy is used, mostly for wood drying applications. Typical amounts of energy required cannot be easily defined, since it depends on many factors, such as wood moisture content, required final board quality (wood chip size and dryness), and drying installation type. Objectives The goal of the 'Factory of the Future' project is to attain a fully self-sufficient plant with no environmental impact. To this end, the beneficiary aims to combine innovative technologies and best practices on its existing OSB and MDF production lines. Additional installations, such as a combined heat and power (CHP) unit and rain capturing units will be integrated in the production lines. Where necessary, changes to the production lines will be carried out to further improve the plant's environmental performance. The improvements will be made possible by a thorough analysis of the current production lines. Energy consumption will be lowered by maximising the energy efficiency of the process, pre-drying the wood with excess heat, using biomass as a renewable energy source and integrating a CHP unit into the process. Water consumption will be reduced by capturing rain water, recycling condensation water from the production process and increasing the water efficiency of the steam generator. Specific aims are to: Limit the current use of fossil fuels for thermal energy by 90% (137 Gwh/yr); Decrease the current CO2 emissions from fossil fuels by 80%; Reduce water consumption by 70-75%; Generate electricity using a biomass-powered cogeneration plant. Excess electricity will be sold to the grid. The project will also identify opportunities for further reduction of the factory's environmental footprint to reach a truly ‘invisible’ production facility. The aim is to demonstrate that the environmental footprint can be significantly reduced in an economically viable way, maintaining production volume and quality. The project’s achievements will be broadly disseminated, so more facilities, even those outside the wood panel sector, can implement similar measures. Expected results The project expects to establish a self-sufficient, environmentally sound production plant with the following characteristics: No more than 10% of the thermal energy generated using natural gas, equalling a gas consumption of 1 486 508 m3 (based on 2010 consumption); a reduction of 13 378 500 m3/yr of natural gas (equalling the household use of 21 500 persons); Water consumption decreased to some 64 000 m3/yr (versus the current 240 000 m3/yr); more than half of the current consumption (127 000 m3/yr) to come from harvested rain water; Recycling of at least 30 000 m3/yr of condensation water recycled from the OSB production process; The water efficiency of the steam generator increased to some 20%; 39 GWh of electricity produced by the new CHP plant to be supplied to the local grid; A reduction in CO2 emissions from fossil fuels reduced of more than 80% through the combined effect of the replacement of natural gas by biomass and increased production efficiency.