He took middle school in Fredrikshald and technical school in Horten, and then studied chemistry in Hochschule für Technik und Wirtschaft Dresden. He graduated in 1880, and worked as an engineer and chemist at Hafslund kemiske Træmassefabrik from 1883 to 1889.
He came in contact with Carl Kellner, and in 1888 Kellner and Edward Partington bought the farm Borregård, acquired rights in Sarp Falls and established The Kellner-Partington Paper Pulp Company Limited. Pedersen was hired as company manager. The company became Borregaard, which Pedersen developed until his relatively early death.
He died in March 1913 near Holmenkollen.