Green tie-ups: Swedish firm Södra to supply kraft lignin to UPM Biochemicals, Stora Enso

Helsinki-based UPM Biochemicals will be among the first customers to receive kraft lignin from Sweden's largest forest owner association Södra when its plant in Mönsterås comes on stream in 2027. Södra’s new plant will be the first commercial kraft lignin production facility in Sweden and the largest of its type in the world.

UPM has been innovating with a series of products made from kraft lignin and has successfully marketed this growing portfolio of sustainable lignin solutions over the past years. UPM BioPiva is a range of non-toxic and high-purity kraft lignin products used in renewable adhesives and binders as a replacement for fossil-based chemicals. The kraft lignin-derived UPM Solargo plant biostimulants are ideally placed to support the agricultural sector’s commitment to reducing classical fertiliser use while increasing soil health and are proven to increase soil productivity.

The solutions above have been developed with market kraft lignin. UPM has also invested in the extraction of lignin and is innovating the use of lignin in industry applications going beyond the kraft lignin solutions. At its first-of-its-kind biorefinery in Leuna, Saxony-Anhalt, the company will produce carbon negative Renewable Functional Fillers (RFF) made from the lignin contained in sustainably sourced hardwood. RFF are a major innovation for the global rubber and plastic industries as they are set to replace highly toxic, CO₂ intensive carbon black and precipitated silica.

“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.

“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 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 small 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.”

Södra is able to access the forest raw material through its more than 50,000 family forester members. Its Mönsterås site features a sawmill, a competitive pulp mill, wind-power plants and its own port. Surplus energy from the pulp mill will result in a kraft lignin product with a low carbon footprint.

Södra’s kraft lignin investment at its Mönsterås site means a significant scale up of global kraft lignin capacity and is a game changer for the broad adoption of kraft lignin-based products and solutions. Södra continues to strengthen its position as a growing supplier of greener alternatives to fossil carbon-based solutions, following its completion of the world's first commercial biomethanol plant at the site in 2020.

Lignin is found in the cell walls of all plants, especially trees, and is nature’s second most common polymer after cellulose. The non-toxic biomaterial can help to significantly reduce dependency on fossil raw materials in a variety of applications. It offers the opportunity to create high-value sustainable chemicals featuring renewable content and a significantly reduced carbon footprint. Its naturally occurring strength and adhesive properties also allow highest product performance levels.

Meanwhile in related news, Södra has also tied up with Stora Enso in a long-term agreement under which Södra will supply Stora Enso with kraft lignin from its Mönsterås site, in Sweden.

As part of this collaboration, Stora Enso grants Södra a license to its innovative technology in lignin area.

"We are excited to partner with Södra in this important endeavor," says Juuso Konttinen, Senior Vice President & Head of Biomaterials Growth at Stora Enso. "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. By leveraging our expertise in lignin technology, Södra will be able to produce high-quality lignin that aligns with our sustainability commitments."

The collaboration with Stora Enso allows Södra to integrate cutting-edge technology into its production processes, ensuring the high quality and consistency of the lignin produced.

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