Disclosed is a method of making wood pulp from eucalyptus wood comprising inoculating eucalyptus wood chips in a bioreactor with an inoculum including a viable culture of the white rot fungus, Ceriporiopsis subvermispora. The chips are then incubated under condition for the propagation of the fungus through the wood chips for a time to allow the fungus to modify a significant amount of the lignin naturally present in the wood chips. The wood chips degraded by the fungus are then mechanically pulped into a paper pulp. The pulp can be used to produce paper having at least a 70% improvement in burst index and at least 184% improvement in tear index over paper produced by mechanical pulping of eucalyptus wood without C. subvermispora inoculation.
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