Borregaard and Rayonier Advanced Materials (RYAM) entered into a letter of intent regarding establishment of a new lignin operation adjacent to RYAM's Fernandina Beach pulp mill in Florida.
Expects project will be completed in two phases over 5 years.
New company will be owned 55 percent by Borregaard and 45 percent by RYAM.
Estimate an aggregate $110 million for a capacity of 150,000 metric tonnes dry substance per year.
New operation will benefit from development work in BALI project, and takes priority over a first BALI plant.
Longer term, BALI technology remains a strategic lignin raw material option for Borregaard.