Submitted by Suanne Z. Thamm
Reporter – News Analyst
June 28, 2018 3:36 p.m.
Updated June 29, 2018 2:21 p.m.
With the official ribbon cutting on June 26, 2018, Rayonier Advanced Materials and the Norwegian firm Borregaard joined state and local officials to celebrate the formal opening of Lignotech Florida. This joint venture company, located next to the Rayonier Advanced Materials (RAM) plant on Gum Street in Fernandina Beach, Florida, has already begun producing lignin to meet the growing demand for the versatile substance, which has both agricultural and building application.
The facility was built at a cost of $110M with state and local incentives defraying some of the cost. Initial production capacity is estimated to be 100K tons per year.
Lignin is a byproduct of pulp processing which, until the arrival of Lignotech Florida, was released as a non-commercialized waste product at the RAM mill. According to the International Lignin Institute, “Lignin is an organic substance binding the cells, fibers and vessels which constitute wood and the lignified elements of plants, as in straw. After cellulose, it is the most abundant renewable carbon source on Earth.”
Converting this waste product into a product with market value has a positive environmental impact as well, since less carbon will be released into the atmosphere from pulp processing.
Florida State Senator Aaron Bean (R) emceed the official grand opening that kicked off in a large tent on property followed by a tour of the new facility. C.A. McDonald, General Manager of the Fernandina Beach RAM plant, welcomed about 200 representatives of Borregaard and Rayonier, elected officials and other invited guests.
Peter Morris, Managing Director of Lignotech Florida provided the audience with an overview of the planning and construction of the new facility, which came about over a ten-year period of discussion and after overcoming some technical obstacles. Planning began in earnest when natural gas was brought to Amelia Island and the Eight Flags CHP Plant was collocated with the RAM plant. Morris explained the nature of lignin and its processing cycle. He also said that an intensive recruitment effort has provided additional employment opportunities to the county and the city with 58 percent of the employees living in Nassau County and 26 percent on Amelia Island.
Jimmy Petronis, Chief Financial Officer of the State of Florida, welcomed Borregaard officials and employees to Florida. He encouraged the Lignotech employees to let people know where their paychecks were coming from. He pointed out the importance of having a diversified economy.
Paul Boynton, President and Chief Executive Officer of Rayonier Advanced Materials, told audience members that Rayonier has been in business for 92 years and has operated a plant in Fernandina Beach since the late 1930’s. He said that the joint venture represented a great industrial innovation, crediting the “unwavering support” of the Fernandina Beach City Commission, Enterprise Florida and the Nassau County Economic Development Board in bringing the plans to fruition.
In speaking for the Borregaard side of the joint venture, Per Arthur Sørlie, President and CEO of Borregaard, spoke about the history of the company which is today the world’s leading supplier of lignin-based binding and dispersing agents – environmentally friendly alternatives to oil-based chemicals. “We are very pleased that we have been able to finish the construction of the new plant on time and within the estimated cost budget,” Sørlie said.
Sørlie said that Borregaard and RAM have similar mindsets and strategies in approaching their work as they strive for sustainability.
Guests were invited to tour the new facility, where they were able to observe the areas of manufacturing, packaging and transporting both liquid and solid forms of lignin. Tours were conducted by Lignotech employees, who demonstrated both their knowledge and their pride in working for Lignotech Florida.
Editor’s Note: Suanne Z. Thamm is a native of Chautauqua County, NY, who moved to Fernandina Beach from Alexandria,VA, in 1994. As a long time city resident and city watcher, she provides interesting insight into the many issues that impact our city. We are grateful for Suanne’s many contributions to the Fernandina Observer.