Monday, September 23, 2024
Södra has confirmed UPM as one of the first customers for its kraft lignin, following the major investment announcement earlier this summer regarding the new production facility at Södra’s Mönsterås site. Set to be operational by 2027, the plant will be the first commercial kraft lignin production facility in Sweden and the largest of its kind globally. UPM, with its 15 years of pioneering development in lignin technologies, boasts a strong patent portfolio and a leading position in this space. As demand for sustainable materials grows, UPM will utilise Södra’s lignin in various products, including resin for the plywood and MDF industries, and binders for the insulation sector.
In addition to its positive performance characteristics, lignin attracts customers due to its renewable content, reduced carbon footprint, and biodegradability. As nature’s second most abundant polymer after cellulose, lignin is readily available.
“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. “With UPM as a customer, we will be part of a value chain which can deliver climate-effective solutions for the green transition. UPM, in turn, can trust in our responsible forestry and the low carbon footprint of our pulp mills. UPM’s experience and knowledge of the sector makes it an ideal customer and we look forward to a fruitful partnership.” Johannes added further.
The partnership between Södra and UPM is a natural fit, combining Södra’s access to forest raw materials through its network of over 50,000 family forester members and its ambition to be a leading raw material provider, with UPM’s deep application expertise. Södra also offers scalability, with the potential to produce up to 250,000 tons per year of kraft lignin if the technology is applied across all three of its pulp mills.
“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,” comments Winfried Schaur, Executive Vice President Technology & UPM Biorefining at UPM.
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