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Metsä Group unveils new Lignin demo plant in Äänekoski for sustainable product development

 Tuesday, February 17, 2026

Metsä Group unveils new Lignin demo plant in Äänekoski for sustainable product development

Metsä Group has launched its new demo plant in Äänekoski, dedicated to producing a new lignin product called Metsä LigO™. The plant is a significant step in the company’s drive towards sustainability, converting lignin, a by-product of the bioproduct mill’s production process, into a valuable product. With a production capacity of two tons per day, the plant’s goal is to refine lignin into a more commercially viable product for a variety of industries.

A Groundbreaking Collaboration

This pioneering project has been developed in collaboration with the equipment supplier ANDRITZ and Dow, a leading materials science company. Dow plays a crucial role in supporting Metsä Group by helping to develop bio-based plasticisers intended for applications in concrete and gypsum production. The lignin product produced at the demo plant serves as the raw material for these new additives.

Ismo Nousiainen, CEO of Metsä Fibre, a division of Metsä Group, expressed the company’s ambition to use wood raw materials, including side streams from pulp production, to generate added value. He emphasised that the new product would allow lignin to be used in ways beyond bioenergy, replacing fossil-based raw materials in various applications.

Lignin is naturally found in wood and binds wood fibres together. Traditionally, in pulp production, lignin is separated from the fibres and often used as a biofuel. However, Metsä Group has identified additional valuable applications for lignin. With the success of the new demo plant, the company plans to explore further production opportunities.

Developing Sustainable Solutions for Construction

One of the most notable applications for the new lignin product is in the construction sector. Metsä Group and Dow have joined forces to create sustainable alternatives to traditional materials. The lignin-derived bio-based plasticisers will be used to improve the properties of concrete and gypsum, helping to reduce the industry’s dependence on fossil-based chemicals.

Emilia Wasilewicz, Global Business Director of Dow’s Construction Chemicals business, commented on the collaboration, highlighting the shared vision of creating sustainable construction solutions. She stressed that the demo plant plays a critical role in advancing the development of bio-based additives, validating the technology at a commercial scale.

The project’s potential impact on the construction industry is immense. By utilising lignin in construction materials, it’s possible to cut down on the environmental footprint of producing concrete and gypsum boards, while introducing bio-based options into a traditionally fossil-fuel-dependent sector.

A New Era for Bioproducts and Circular Economy

The new demo plant is part of Metsä Group’s broader strategy to implement circular economy principles across its operations. The company’s bioproduct and pulp mills already produce a wide variety of by-products, such as bark, tall oil, turpentine, and biogas. These by-products have long been an integral part of the company’s operations, with many being utilised as bioenergy. The introduction of the lignin product adds a new dimension to Metsä Group’s environmental strategy.

The Äänekoski mill, where the demo plant is located, is a focal point for innovation. It houses not only the new lignin plant but also demo plants for other sustainable products like the Kuura textile fibre and Muoto packaging. Additionally, carbon dioxide capture trials have recently been completed at the Rauma pulp mill, marking another milestone in the company’s commitment to reducing its environmental impact.

Next Steps for Metsä Group

Looking ahead, Metsä Group plans to assess the functionality of the new lignin production process. The demo plant’s primary purpose is to validate the product’s characteristics and test its suitability for various markets. If the trials prove successful, Metsä Group will move forward with designing and potentially constructing a full-scale production facility.

According to Nousiainen, the focus will remain on developing sustainable solutions that make the most efficient use of natural resources. By transforming lignin into a high-value product, Metsä Group hopes to set a new standard for bioproduct innovation.

Conclusion: Paving the Way for a Sustainable Future

Metsä Group’s new lignin demo plant in Äänekoski is a landmark step towards building a more sustainable and circular economy. Through innovative partnerships and forward-thinking technology, the company is turning what was once considered waste into valuable products that can replace fossil-based materials. The future of lignin-based solutions looks promising, with applications across industries like construction, textiles, and packaging. Metsä Group’s efforts are set to inspire other players in the bioproducts sector to explore new ways to utilise the potential of lignin and other renewable resources.

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