Rayonier Advanced Materials Announces Investment in Second Generation Bioethanol Plant, an Important Step in its BioFuture

Rhea-AI Summary

Rayonier Advanced Materials (RYAM) has announced the launch of a second generation (2G) bioethanol produced from wood feedstock, positioning itself as a key player in Europe’s biofuels market. This bioethanol boasts a 90% smaller carbon footprint compared to fossil fuels, aiming to assist petrochemical companies in adopting cleaner energy solutions. Construction of the production facility is set to start in Spring 2022, with sales beginning Summer 2023. The initiative is expected to eliminate 25,000 tons of CO2 emissions annually and is backed by a long-term sales agreement with an international petrochemicals firm.

Positive

• Launch of second generation (2G) bioethanol product enhances RYAM's position in the European biofuels market.
• Product has a 90% smaller carbon footprint compared to fossil fuel-based gasoline.
• Elimination of approximately 25,000 tons of CO2 emissions per year supports climate change efforts.
• Construction of the production facility set to begin in Spring 2022, with commercial sales targeted for Summer 2023.
• Long-term sales agreement with a major international petrochemicals company ensures market demand.

Negative

• None.

JACKSONVILLE, Fla.--(BUSINESS WIRE)-- Rayonier Advanced Materials Inc. (NYSE: RYAM, the “Company”), a global leader in the production of high purity cellulose pulp, today announced the introduction of a second generation (2G) bioethanol product for Europe’s fast-growing biofuels market. Produced using wood-based feedstock (not in competition with food), RYAM will be among the first in France to produce 2G bioethanol fuel from wood. With a ninety percent smaller carbon footprint compared to fossil fuel-based gasoline, RYAM’s bioethanol product will help petrochemical companies meet their need for clean and renewable energy in the European market and contribute to reduced climate change.

“With the successful development of second-generation bioethanol products, RYAM is taking an important step toward achieving our BioFuture and promoting a more sustainable world,” said Vito Consiglio, President and CEO of Rayonier Advanced Materials. “The strong demand for this innovative, renewable biofuel represents another example of how we can leverage our existing biorefineries and knowledge of cellulose chemistry to provide biobased solutions.”

Rayonier Advanced Materials’ biorefinery model captures residual sugars from its existing pulp process and converts the sugars into 2G bioethanol. This circular process, which utilizes a greater portion of the tree to create higher-value products, represents a more sustainable operating model.

“Second generation bioethanol is about more than just introducing a new product pipeline. 2G represents RYAM’s largest investment to date towards its more sustainable BioFuture,” said Christian Ribeyrolle, Head of Biomaterials at Rayonier Advanced Materials. “In collaboration with our customer, our 2G bioethanol will provide a green biofuel alternative for Europe’s gasoline market and help fight against climate change by eliminating approximately 25,000 tons of CO2 emissions a year.”

Designed to produce up to 21 million liters of bioethanol, construction on RYAM’s 2G production facility is scheduled to begin in the Spring of 2022 with commercial sales targeted for the Summer of 2023. RYAM has entered into a long-term off-take (sales) agreement with a large international petrochemicals company to purchase the 2G bioethanol and expects to finance a significant portion of its investment with low-cost green loans.

About Rayonier Advanced Materials

Rayonier Advanced Materials is a global leader of cellulose-based technologies, including high purity cellulose specialties, a natural polymer commonly found in filters, food, pharmaceuticals and other industrial applications. The Company also manufactures products for paperboard and high-yield pulp markets. With manufacturing operations in the U.S., Canada and France, Rayonier Advanced Materials generated approximately $1.3 billion of revenues during 2020 and currently employs approximately 2,500 people. More information is available at www.rayonieram.com.

Forward-Looking Statements

Certain statements in this document regarding anticipated financial, business, legal or other outcomes including business and market conditions, outlook and other similar statements relating to Rayonier Advanced Materials’ or future or expected events, developments or financial or operational performance or results, are "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements are identified by the use of words such as "may," "will," "should," "expect," "estimate," "believe," "intend," "anticipate" and other similar language. However, the absence of these or similar words or expressions does not mean that a statement is not forward-looking. While we believe these forward-looking statements are reasonable when made, forward-looking statements are not guarantees of future performance or events and undue reliance should not be placed on these statements. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance these expectations will be attained and it is possible that actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties.

Other important factors that could cause actual results or events to differ materially from those expressed in forward-looking statements that may have been made in this document are described or will be described in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Rayonier Advanced Materials assumes no obligation to update these statements except as is required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220118005240/en/

Media

Ryan Houckn, 904-357-9134

Investors

Mickey Walsh, 904-357-9162

Source: Rayonier Advanced Materials, Inc.

FAQ

What is Rayonier Advanced Materials' new bioethanol product?

Rayonier Advanced Materials (RYAM) has introduced a second generation (2G) bioethanol product utilizing wood feedstock, aimed at the European biofuels market.

How does RYAM's bioethanol compare to fossil fuels?

RYAM's bioethanol has a carbon footprint that is 90% smaller than that of fossil fuel-based gasoline.

When will RYAM start selling its bioethanol?

Commercial sales of RYAM's bioethanol are targeted for the Summer of 2023, after facility construction begins in Spring 2022.

What environmental benefits does RYAM's new product provide?

RYAM's 2G bioethanol is expected to eliminate around 25,000 tons of CO2 emissions annually, contributing to climate change mitigation.