Biorefinery Borregaard invests into lignin production expansion in Norway

Borregaard announced NOK 500 million (around USD  58 million) investment program to upgrade and specialise the production facilities for lignin products at the Sarpsborg site in Norway. The investments will be completed by the end of 2019.

According to the announcement, the project includes new drying capacity, tanks for storage of liquid materials and improved solutions for logistics, infrastructure and energy. The new investment will enable further specialisation on the unique raw material base, and will reduce the exposure to cyclical market segments. It will also facilitate optimisation of production campaigns and improve logistics. New storage tanks for liquid materials are expected to meet future environmental standards, and will eliminate the need for external storage capacity and reduce logistics costs. New installations for infrastructure and energy are also expected to reduce energy costs and offer substantial environmental and safety benefits.

Currently, lignin capacity at the Sarpsborg site is 160,000 metric tonnes dry solid per year, of which an increasing share is speciality products.

Earlier Borregaard announced NOK 115 million (around USD 13.5 million) investment in capacity increase of Ice Bear products in Speciality Cellulose.

About Borregaard:

The company operates the world’s most advanced biorefinery. By using natural, sustainable raw materials, Borregaard produces advanced and environmentally friendly biochemicals, biomaterials and bioethanol that replace oil-based products. It has 1050 employees in 16 countries and had revenues in 2016 of approximately USD 535 million. The lignin business constitutes close to 50% of the Group’s turnover with plants in 7 countries.

Source: Woodbizforum