- The new facility will be the largest kraft lignin producer globally, operational by 2027.
- The investment is over 2 billion SEK (about 180 million Euro).
- Kraft lignin can replace fossil materials in glue, batteries, rubber, composites, and biofuels.
- Supported by the Swedish Energy Agency and The Industrial Leap.
Investment and Timeline
Södra is investing over 2 billion SEK (about 180 million Euro) to establish the world's largest kraft lignin production facility in Mönsterås, Sweden. The facility is expected to be operational by 2027.
Applications of Kraft Lignin
Kraft lignin can replace fossil materials in various applications, including glue, batteries, rubber, composites, and biofuels. This aligns with the increasing market demand for sustainable alternatives to fossil chemicals.
Market and Sustainability
Södra has been exploring market opportunities, engaging with potential customers, and signing offtake agreements for a significant portion of the production volumes. The production of kraft lignin is expected to contribute to both the green transition and the profitability of the forest estate.
Support and Collaboration
The project is supported by the Swedish Energy Agency and The Industrial Leap, a long-term investment approach by the Swedish Government to achieve net zero emissions by 2045. Södra has also collaborated with research institutions to advance knowledge and applications of lignin.
What is Lignin?
Lignin is a biopolymer that holds tree fibers together, making them strong and stable. During the pulp cooking phase, lignin is released and can be separated to become a valuable product. Currently, lignin is used to generate steam and electricity, with surplus energy sold to the public power grid.
