Rayonier Advanced Materials (RYAM) has filed a federal lawsuit against the city of Fernandina Beach, Florida, after officials rejected its proposal to build a bioethanol production facility adjacent to its existing pulp mill.
The proposed project aims to convert pulp mill waste into 7.5 million gallons of bioethanol annually, offering a sustainable alternative to fossil fuels. Using fermentation and distillation, RYAM plans to transform residual biomass from its current fiber production processes into second-generation bioethanol, advancing the company’s circular economy objectives. More details are available on RYAM’s project page.
City officials denied the proposal in December, classifying it as “chemical manufacturing,” a category prohibited by Fernandina Beach’s comprehensive zoning plan. They also raised concerns about potential health impacts for nearby residents.
RYAM disputes the city’s interpretation, maintaining that the project is a logical extension of its existing industrial operations and that the review process was flawed. The company is seeking to overturn the city’s decision through the courts.
In response, the Fernandina Beach City Commission passed a resolution to defend its stance and affirmed that it has the legal and financial resources necessary for the case. No court date has been set.
Meanwhile, legislation under consideration in the Florida Senate could directly influence the outcome. Bill SB 1118 would clarify that ethanol production from plant material using fermentation and distillation does not constitute chemical manufacturing — and the measure would apply retroactively.
Opponents of the bill, including the group Fernandina Wins, argue that it would undermine local zoning authority. “It sets a dangerous precedent for every community in Florida,” said group president Tom Budd.
As the legal and political processes unfold, the RYAM case may become a key test of how renewable energy projects tied to the pulp and paper sector are regulated at both the local and state level.
Rayonier Advanced Materials (RYAM) is a global leader in cellulose-based technologies, specializing in high-purity cellulose, paperboard, and high-yield pulp. The company transforms renewable forest resources into sustainable solutions used in various industries, including textiles, pharmaceuticals, food, and construction. Headquartered in Jacksonville, Florida, RYAM operates facilities across the United States, Canada, and France. With a commitment to innovation and environmental stewardship, RYAM plays a pivotal role in advancing the circular economy.
