Södra secures lignin supply agreement with Stora Enso

FINLAND – Södra has confirmed that Stora Enso will be one of the first companies to purchase sulfate lignin from its upcoming facility in Mönsterås.

This follows Södra’s major investment in establishing Sweden’s first commercial sulfate lignin plant, which will also be the largest globally. The plant is set to be operational by 2027.

This agreement builds on Södra’s earlier deal to supply lignin from the Mönsterås factory to UPM.

The new facility will be a key player in meeting the growing demand for renewable lignin materials, which are expected to have broad applications across various industries.

For the past decade, Stora Enso has been developing its lignin expertise, running a pilot facility for lignin-based battery materials.

With increasing demand for sustainable solutions, the company is seeking external sources of lignin to complement its efforts.

Lignin’s versatile applications rapidly expand, particularly as the push for eco-friendly materials intensifies.

One key use for lignin is in Stora Enso’s Lignode technology, which has the potential to replace fossil-based anode materials in lithium-ion and sodium-ion batteries.

This breakthrough is crucial for advancing sustainable electronics manufacturing and energy storage technologies.

Lignin is the second most common polymer in nature after cellulose. It is highly valued for its renewability, reduced carbon footprint, and biodegradability.

Södra’s strong access to forest raw materials, through its 50,000 member-managed family forests, complements Stora Enso’s lignin applications.

With the potential to produce up to 250,000 tonnes of sulfate lignin annually across its pulp mills, Södra is well-positioned to scale production.

“From 2027, Södra will be instrumental in increasing the availability of sulfate lignin as a sustainable alternative to fossil-based materials. Stora Enso is a key customer and partner, placing us at the heart of a value chain that will drive climate-efficient solutions, particularly in automotive and energy storage sectors,” said Johannes Bogren, head of bioproducts at Södra.

Juuso Konttinen, head of biomaterials growth at Stora Enso, added, “We are thrilled to collaborate with Södra on this significant project.

“The agreement ensures a reliable supply of sulfate lignin for our innovative products like Lignode, highlighting the growing importance of lignin in developing sustainable solutions across industries.”

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