Södra has signed agreements with UPM and Stora Enso to provide kraft lignin. The company has made a major investment in the kraft lignin production facility at Mönsterås site in Sweden. The plant will be the first commercial kraft lignin production facility in Sweden and the largest of its type in the world. The plant is expected to be in operation in 2027.
Sustainability and the reuse of waste materials as commercial by-products have become significant trends in the pulp and paper industry. In past years, fly ash—a waste by-product from paper production—was successfully repurposed into fly ash bricks, turning an industrial waste into a valuable resource and inspiring other industries to explore similar practices.
Recently, kraft lignin is gaining traction in the pulp and paper industry as a promising by-product in the industry. This shift highlights the industry’s ongoing efforts to turn waste into gold, underscoring the potential for sustainable practices and circular economy models across sectors.
Kraft lignin, a kind of industrial lignin obtained from Kraft pulp and accounts for about 85% of the total lignin production in the world, is produced by converting coniferous wood to pulp; yielding higher pulp than other alkaline pulping methods.
Södra’s kraft lignin investment is a good example of making more out of every tree and strengthening profitability. ‘‘This is a big investment for Södra and the green transition,” says Lotta Lyrå, CEO of Södra. Lignin is used for generating energy, but the refining process in which the company is investing ensures to make more use of the raw material as a product. This is in line with Södra’s strategy to make more of each tree and create more value for the forest estate.
Brief about Lignin
Lignin is the component of the forest raw material that holds the fibers together and ensures that trees are strong and stable. In separated form, lignin is a brown powder. In chemical language, lignin is a biopolymer comprising a series of interconnected aromatic compounds.
In the pulp cooking phase, lignin is released so that the fibers can be released and become pulp or dissolving pulp. This means that large amounts of lignin are created at the mills and that part of the lignin can be separated and become a product. Today, lignin generates steam and electricity to operate the mills, and thus surplus is sold to the public power grid.
Södra has for many years collaborated with, and supported, research on lignin and has extensive knowledge about lignin and the opportunities it brings.
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Processing of Kraft Lignin By Södra
As a step forward towards sustainability and effective utilization of the paper industry byproduct, Södra has signed agreement with with UPM and Stora Enso to provide kraft lignin, a substance that can replace fossil materials in glue, batteries, rubber, composites and form the basis for new biofuels and biostimulators.
Södra has earlier announced major investment in the kraft lignin production facility in the Mönsterås site in Sweden. The plant will be the first commercial kraft lignin production facility in Sweden and the largest of its type in the world. The plant is expected to be in operation in 2027.
Talking about the new agreements, Mr. Johannes Bogren, Executive Vice President, Södra Bioproducts said, ‘‘From 2027, Södra will play a major role in the growth of kraft lignin as a renewable and sustainable substitute for fossil-based materials. With UPM as a customer, we will be part of a value chain which can deliver climate-effective solutions for the green transition. He further adds, ‘‘Stora Enso being a key customer, partner and technology support is the key provider of automotive and energy-storage sectors. The two companies, in turn, can trust in our responsible forestry and the low carbon footprint of our pulp mills and we look forward to a fruitful partnership.”
Södra’s Partnership with Stora Enso
The market demand for sustainable materials and solutions is rapidly driving the growth in lignin applications. A potential key application is Stora Enso’s Lignode® technology which can replace fossil-based anode materials with kraft lignin, in both lithium-ion and sodium-ion batteries, being an important component in sustainable electrical manufacturing, and also in multiple energy-storage applications. Lignin, being nature’s second most common polymer after cellulose, will help in the reduction of carbon footprint and promote biodegradability.
Talking about the new partnership, Mr. Juuso Konttinen, Senior Vice President & Head of Biomaterials Growth at Stora Enso said, ‘‘We are excited to partner with Södra in this important endeavor. This agreement not only secures one additional reliable supply of kraft lignin for our innovative products such as Lignode for batteries but also underscores the growing importance of lignin in creating sustainable solutions across industries. By leveraging our expertise in lignin technology, Södra will be able to produce high-quality lignin that aligns with our sustainability commitments.”
Mr. Bogren further adds, ‘‘We believe that lignin has enormous potential as a bio-based material, and this agreement with Stora Enso highlights that potential. By combining our expertise, 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.”
Södra’s Partnership with UPM
UPM too has been innovating a series of products made from kraft lignin and has successfully marketed this growing portfolio of sustainable lignin solutions over the past years.Their BioPiva™ is a range of cost-effective, non-toxic and high-purity kraft lignin products used in renewable adhesives and binders as a replacement for fossil-based chemicals. Apart from that, UPM also has UPM Solargo™ plant biostimulants ideally placed to support the agricultural sector’s commitment to reducing classical fertilizer use while increasing soil health and increasing soil productivity.
To meet its demand of kraft lignin, UPM has collaborated with Södra to scale kraft lignin extraction supporting its growth and environmental footprint.
Talking about the collaboration with Södra, Winfried Schaur, Executive Vice President Technology & UPM Biorefining at UPM said, ‘‘We are excited that Södra takes the step to scale kraft lignin extraction from its pulp mills, and we believe that Södra is the ideal partner for UPM to support our own growth ambitions by providing high quality kraft lignin with an unquestionable sustainability footprint.’’
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Access to the Forest Raw Material
Södra has access to the forest raw material through its more than 50,000 family forester members and its ambition of being a raw material provider can brings scalability, with the potential to produce up to 250,000 TPY of kraft lignin if the right technology is applied to all three of its pulp mills.
Commenting on the new innovation, Catrin Gustavsson, Former Executive Vice President at Södra Innovation, said, “Innovation is a necessary and important part of our business to ensure our competitiveness today and in the future. We are constantly working to create the most possible value from each tree, both with today’s processes and through new opportunities. Within Södra’s strategy, we see several future energy and chemical products with great potential as alternatives to fossil-based materials in society, of which kraft lignin is one.’’
Södra chose to invest in the production of kraft lignin in Mönsterås site with a sawmill, a competitive pulp mill, wind-power plants and its own port. The company made the strategic choice to create great opportunities to reach international markets.
The surplus energy from the pulp mill will result in a kraft lignin product with a low carbon footprint. The investment is financed with support from the Swedish Energy Agency and is part of the EU Recovery and Resilience Facility (RRF) and Next Generation EU.
Earlier in 2020, Södra started the world’s first commercial biomethanol plant at the site in Mönsterås and thus strengthened its position as a growing supplier of green alternatives to fossil fuels. The commercial production of kraft lignin marks another powerful leap forward in the transformative journey toward sustainability. Sodra’s initiative aligns with the climate goal of Sweden to achieve net zero emissions by 2045, and then attain negative emissions.
With each step, Södra is not only redefining what’s possible in green manufacturing but also setting new standards for responsible, regenerative industries, paving the way for eco-friendly innovation.
