Construction is underway on Altamaha Green Energy, a 70 MW biomass cogeneration facility that will supply process steam to RYAM’s Jesup operations and renewable electricity to Georgia Power.
Rayonier Advanced Materials (RYAM) has begun construction on Altamaha Green Energy (AGE), a 70 MW biomass cogeneration facility adjacent to its manufacturing operations in Jesup, Georgia.
Developed with Albioma and the Beasley Group, AGE is expected to enter commercial operation in 2029. Under a long-term power purchase agreement, the facility will supply renewable electricity to Georgia Power while delivering process steam to RYAM’s adjacent manufacturing facility.
New Utility Infrastructure for Jesup
Beyond power generation, AGE is intended to modernize utility infrastructure supporting RYAM’s Jesup operations.
The company estimates that the project will allow it to avoid approximately US$30 million in future capital expenditures that otherwise would have been required to maintain and replace existing utility assets.
RYAM said the project is expected to strengthen the reliability and long-term competitiveness of Jesup, a core manufacturing site within its High Purity Cellulose business.
“This is an important milestone for Altamaha Green Energy,” said Dan Krawczyk, President and CEO of RYAM, adding that the project will strengthen infrastructure supporting one of the company’s key manufacturing sites.
The facility will be fueled by regional forestry residues. RYAM said the use of sustainably sourced material is expected to support its sustainability objectives while providing both renewable electricity and process steam.
The Beasley Group will support feedstock procurement for the project, while Albioma is contributing its experience in biomass energy.
RYAM to Retain Minority Stake
RYAM expects to retain an initial 14% equity interest in AGE through its contribution of land and previous investments in the project.
Under pre-established terms, the company also has an option to acquire an additional interest that would increase its ownership to as much as 16%.
Based on current projections, RYAM expects annual distributions of approximately US$8 million to US$10 million once AGE begins operating.
The ownership structure is designed to limit the amount of additional capital RYAM must commit to the project while allowing the company to maintain an interest in AGE and benefit from the modernization of infrastructure serving the Jesup operation.
For RYAM, the project also provides another outlet for forestry residues generated in the region, linking biomass power generation with the utility needs of one of its major high-purity cellulose manufacturing sites.
