Rayonier Advanced Materials  recently announced a joint venture with Borregaard ASA to manufacture natural lignin-based products at its Florida facility. Lignin, a natural component of wood, is typically used for its energy properties (i.e., it’s burned as fuel). This joint venture would instead convert lignin into higher-value products that are more environmentally-friendly than products typically made from petroleum.

The project will be completed in two phases over five years and require a capital investment of $110 million, resulting in a capacity of 150,000 metric tons per year of biobased chemicals that can be used globally in construction, agriculture and other industrial applications.

This project reinforces trends in biobased manufacturing that Maine companies can learn from:

(1) Co-locating biobased technology with existing processes can diversify production and boost profits.

(2) Joint ventures can help de-risk projects.

(3) Converting materials previously used for energy (like lignin) into higher-value products  is the key to success.