Södra Signs Agreements to Supply UPM and Stora Enso with Kraft Lignin from Mönsterås in Sweden
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Södra announced that UPM and Stora Enso are among the first customers for kraft lignin following the major investment announcement earlier this summer regarding kraft lignin production at Södra's Mönsterås site — an investment of over two billion SEK.
Södra said the new plant is expected to be in operation in 2027, when it will be the first commercial kraft lignin production facility in Sweden and the largest of its type in the world.
"From 2027, Södra will play a major role in the growth of kraft lignin as a renewable and sustainable substitute for fossil-based materials," said Executive Vice President Södra Bioproducts, Johannes Bogren.
Apart from positive performance characteristics, customers are drawn to lignin thanks to its renewable content, reduced carbon footprint and biodegradability. It is also abundant, being nature's second most common polymer after cellulose.
UPM
Södra noted that UPM has a leading position in lignin technologies and will use lignin sourced from Södra to produce more sustainable products and materials in several segments. This includes resin for the plywood and MDF industry and binders for the insulation sector.
Winfried Schaur, Executive Vice President Technology & UPM Biorefining at UPM, said, "Kraft lignin is a key raw material for UPM to provide commercially viable decarbonisation solutions to industrial and consumer markets. Applications for kraft lignin are expanding quickly and offer growing markets.
"We are excited that Södra takes the step to scale kraft lignin extraction from its pulp mills, and we believe that Södra is the ideal partner for UPM to support our own growth ambitions by providing high quality kraft lignin with an unquestionable sustainability footprint," Schaur added.
Stora Enso
Södra also noted that its other new customer, Stora Enso, has developed lignin expertise and a potential key application is Stora Enso's Lignode® technology, which can replace fossil-based anode materials, in both lithium-ion and sodium-ion batteries.
Juuso Konttinen, Senior Vice President & Head of Biomaterials Growth at Stora Enso, said, "We are excited to partner with Södra in this important endeavor. This agreement not only secures one additional reliable supply of kraft lignin for our innovative products such as Lignode for batteries, but also underscores the growing importance of lignin in creating sustainable solutions across industries."
Södra Mönsterås Investment
One of the world's most modern pulp mills, Mönsterås is Södra's largest with a production capacity of 750,000 tonnes per year of softwood and hardwood pulp. Södra chose to invest in the production of kraft lignin in Mönsterås because the site includes a sawmill, a pulp mill, wind-power plants and its own port. The surplus renewable energy from the pulp mill will result in a kraft lignin product with a low carbon footprint.
The investment is financed with support from the Swedish Energy Agency and is part of the EU Recovery and Resilience Facility (RRF) and Next Generation EU.
