Stora Enso has entered into a strategic partnership with Södra, Sweden’s largest forest owner association, to accelerate the development of lignin as a sustainable, bio-based raw material.
The long-term agreement will see Södra supply kraft lignin to Stora Enso from its Mönsterås site in Sweden, set to begin operations in 2027. Stora Enso will also grant Södra access to its cutting-edge lignin technology as part of the collaboration.
Lignin, a natural polymer found in trees and plants, is increasingly recognized for its potential to replace fossil-based materials in industries ranging from energy storage to construction. The collaboration aims to expand the use of lignin as a sustainable material in a wide range of applications, supporting the growing demand for eco-friendly, non-fossil-based solutions.
Juuso Konttinen, Senior Vice President and Head of Biomaterials Growth at Stora Enso, expressed enthusiasm for the partnership. "This agreement not only secures an additional supply of kraft lignin for our innovative products, like Lignode for batteries, but also underscores the importance of lignin in creating sustainable solutions across industries," Konttinen said.
Södra’s investment in a new kraft lignin production facility earlier this year signals its commitment to advancing sustainable forestry products. Johannes Bogren, Executive Vice President of Södra Bioproducts, highlighted the potential of lignin as a bio-based material. “By combining Södra's sustainable forest management with Stora Enso's innovative technology, we are making a significant leap towards realizing lignin’s full potential in the global market,” Bogren said.
This partnership reflects both companies' commitment to sustainability and the circular bioeconomy, reinforcing lignin's growing role in the transition to greener industries and renewable material solutions.
Stora Enso, with approximately 20,000 employees and €9.4 billion in sales for 2023, continues to be a major player in the global bioeconomy, focusing on sustainable, fiber-based products in packaging, biomaterials, and wooden construction.
Södra was founded in 1938 on the principle that unity brings strength. Today, it stands as the largest forest-owner association in Sweden, boasting 52,000 family forest owners as members. Collectively, Södra's members own a globally leading industry that transforms forest raw materials into renewable products, including pulp, timber, building systems, liquid bioproducts, and energy.
