Södra has announced a significant agreement with UPM to supply kraft lignin from its upcoming world-leading production facility in Mönsterås, Sweden.
The plant, set to begin operations in 2027, will be Sweden's first commercial kraft lignin production facility and the largest of its kind globally.
This partnership marks a major step forward in the sustainable materials industry, as lignin offers a renewable and biodegradable alternative to fossil-based products. UPM, with its 15-year history of lignin technology development and strong patent portfolio, plans to utilize Södra's lignin to produce more sustainable materials for various sectors, including resins for the plywood and MDF industries and binders for insulation.
Johannes Bogren, Executive Vice President of Södra Bioproducts, emphasized the importance of this collaboration, stating, "From 2027 Södra will play a major role in the growth of kraft lignin as a renewable and sustainable substitute for fossil-based materials." He highlighted the synergy between Södra's responsible forestry practices and UPM's industry expertise.
Winfried Schaur, Executive Vice President Technology & UPM Biorefining at UPM, expressed enthusiasm about the partnership, noting that kraft lignin is crucial for UPM's decarbonization solutions in industrial and consumer markets. He praised Södra's decision to scale up kraft lignin extraction, viewing them as an ideal partner to support UPM's growth ambitions.
The Mönsterås site, chosen for its strategic location and existing infrastructure, including a sawmill, pulp mill, wind power plants, and a port, is expected to produce up to 250,000 tonnes of kraft lignin annually if the technology is applied to all three of Södra's pulp mills. This scalability positions Södra as a significant player in the emerging lignin market.
The investment in the Mönsterås plant is supported by the Swedish Energy Agency and is part of the EU Recovery and Resilience Facility, underscoring its importance in the transition to sustainable materials and energy independence.
As the world's second most common polymer after cellulose, lignin's potential in replacing fossil-based materials represents a significant step towards a more sustainable future in various industries. This collaboration between Södra and UPM sets a new benchmark in the forest products industry's contribution to the global green transition.
