Rayonier, Borregaard to Go Ahead with Florida Lignin Investment Project

The board of directors of Borregaard (Norway) and Rayonier Advanced Materials (RYAM), Florida, USA, have decided to go ahead with the investment project in Florida after securing necessary permits as well as incentives from local authorities. 

Phase one of the project is expected to be completed mid-2018, and will represent a capacity of 100,000 metric tons of lignin. The parties are in the process of securing external financing for about half of the $10 million investment for phase one. 

LignoTech Florida (LTC) is owned 55% by Borregaard and 45% by Rayonier Advanced Materials.

Rayonier’s Fernandina Beach, Fla., mill manufactures specialty cellulose and lignin raw material as co-products from softwood. 

Utilizing Borregaard’s know-how and technical expertise, the new company will initially manufacture lignin products suitable for concrete admixture and similar applications.

The plant construction costs will total some $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 incremental $25 million will be required in phase two to increase the total capacity to 150,000 metric tons.