Sodra signs agreement to supply Stora Enso with kraft lignin from world-leading new plant

Södra confirms Stora Enso among the first customers for kraft lignin. This follows the major investment announcement earlier this year regarding kraft lignin production at Södra's Mönsterås site. The plant will be the first commercial kraft lignin production facility in Sweden and the largest of its type in the world. It is expected to be in operation in 2027.

Stora Enso has developed lignin expertise and know-how over the past decade and runs its own pilot plant for battery material. Stora Enso has a strong believe in lignin and is now in need of an external source of the raw material. Market demand for sustainable materials and solutions is driving fast growth in lignin applications.

A potential key application is Stora Enso's Lignode®technology which can replace fossil-based anode materials, in both lithium-ion and sodium-ion batteries. Thus, being an important component in sustainable electrical manufacturing, and also in multiple energy-storage applications. Lignin is abundant, being nature's second most common polymer after cellulose. Apart from positive performance characteristics, businesses such as Stora Enso and their customers are drawn to lignin thanks to its renewable content, reduced carbon footprint and biodegradability. Södra's access to the forest raw material through its more than 50,000 family forester members and ambition of being a raw material provider, complements Stora Enso's application knowledge and hands-on experience with lignin raw material. Södra also brings scalability, with the potential to produce up to 250,000 tpy of kraft lignin if the technology is applied to all three of its pulp mills.

"From 2027 Södra will play a decisive role in kraft lignin's growth as a renewable, sustainable substitute for fossil-based materials," said Executive Vice President Södra Bioproducts Johannes Bogren. "Stora Enso being a key customer, partner and technology support provider puts us at the heart of a value chain which can deliver a variety of climate-effective solutions for the green transition, with the automotive and energy-storage sectors being a key part of that. Stora Enso, in turn, can trust in our responsible forestry and the low carbon footprint of our pulp mills. Stora Enso's experience and knowledge of the value chain makes it an ideal customer and we look forward to an innovative and productive partnership."

"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", says Juuso Konttinen, Senior Vice President & Head of Biomaterials Growth at Stora Enso.

Södra's operations in Mönsterås

Södra chose to invest in the production of kraft lignin in Mönsterås; a site with a sawmill, a pulp mill, wind-power plants and its own port. A strategic, competitive, choice to create great opportunities to reach international markets. The surplus renewable 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.

By 2020, the world's first commercial biomethanol plant started operation at the site in Mönsterås and thus strengthened Södra's position as a growing supplier of green alternatives to fossil ones, where kraft lignin is another step on this important journey.