Lignin, long treated as a residue in kraft pulping, is emerging as a strategic feedstock for low-carbon fuels.
Mills burn lignin today to generate heat and power, but most sites produce far more than they require—and external demand is rising fast.
In Europe, 6 to 8 million tonnes could be removed from black liquor every year without disrupting mill chemistry. The capital investment is small: by adding an extraction step, mills can separate excess lignin and sell it profitably.
The emerging buyer is the market for lignol, a refined lignin product used to produce bio-gasoline and bio-diesel. Fuel suppliers are seeking scalable alternatives to fossil carbon, making lignin and lignol potential export commodities for forest-rich regions.
The constraint is not technology, but supply. Markets are ready—yet current volumes are limited. Mills that move first may secure long-term contracts in a market likely to remain tight.
A residue once valued for internal energy could become a new revenue stream, and an asset in the shift to renewable fuels.
Source: RenFuel
