The overall goal of the proposed program is to demonstrate the technical and scientific feasibility of combining the biopulping and fiber loading technologies at a pilot-scale simulating industrial conditions to minimize the initial research and development costs. The combined technology will save electrical energy, improve paper quality (strength and optical properties), and reduce the environmental impact of pulping cost-effectively compared to the present process of producing the same products. Biopulping, defined as the treatment of wood chips with a lignin-degrading fungus prior to mechanical pulping, is a new technology for papermaking. In this process, at least 30% electrical energy is saved and paper strength properties are improved. Unfortunately, the process reduces the brightness and opacity of the resulting paper. High brightness and high opacity are critical for the production of high quality papers, particularly when the trend in the pulp and paper industry is towards producing lightweight papers. We have also developed another new technology called fiber loading. In this technology, calcium carbonate is deposited as filler within, on the surface of, and outside the fibers. The process improves brightness, opacity, and bonding strength, and reduces energy consumption during drying. Thus, this fiber loading technology has the potential of overcoming both the problems associated with biopulping. During Phase I, the technical feasibility of combining the two newly developed technologies was established at a laboratory scale.