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LignoTech Florida joint venture gains approval


December 13, 2016
By P&PC Staff

Dec. 13, 2016 – Borregaard ASA (BRG) and Rayonier Advanced Materials (RYAM) say they have secured the necessary approvals from their board of directors and the appropriate permits to proceed with the construction of a new lignin facility at RYAM’s Fernandina Beach site in Florida. The venture, named LignoTech Florida (LTF), will serve the growing global demand for natural lignin-based products.

Lignin, a natural component of wood, is a co-product of RYAM’s sulphite cellulose manufacturing process. According to the companies, the new operation will process the lignin into “value-added products that provide environmentally-friendly alternatives” to fossil fuel-based products used in construction, agriculture and other industrial applications.

The plant is expected to be constructed at a cost of $135 million over two phases of the project. Phase one, which will deliver a lignin capacity of 100,000 metric tons, is estimated to cost $110 million. An estimated incremental $25 million will be required in phase two to increase the total capacity to 150,000 metric tons. Construction for the project is expected to begin shortly with operations beginning approximately 18 months after the commencement of construction.

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The parties said LTF received “unwavering support” from local city, county and state officials during the evaluation phase of the process, adding that the investment is expected to create more than 50 new jobs.

LTF will be owned 55 per cent by BRG and 45 per cent by RYAM. BRG will provide technical knowledge and global sales distribution network, while RYAM will supply the raw material, site services and other support.

SOURCE: Rayonier Advanced Materials