Fernandina Beach, Florida, USA 28 December 2015 -- (From the News-Leader) -- A new lignin operation to be established at the Rayonier Advanced Materials plant in Fernandina Beach will be called LignoTech Florida LLC. The area being considered for the operation is on a peninsula south of the Rayonier Advanced Materials mill at the end of Gum Street.

According to a news release from Borregaard, "The definitive agreement regarding the establishment of a new lignin operation at the Fernandina Beach site in Florida has now been completed and signed by both parties, Rayonier Advanced Materials and Borregaard.

"A final decision by the boards of both companies on whether to proceed with the project is anticipated in mid-2016, after completion of final engineering, securing of local and state incentives, refinement of the capital cost structure, and applicable permit approvals by applicable state and local agencies. The new company, LignoTech Florida LLC, is expected to commence operations in the first quarter of 2018, after completion of the first investment phase."

The Borregaard headquarters is in Sarpsborg, Norway.

"Executing these agreements is an important step that brings us closer to securing this project for our Fernandina plant," Rayonier Advanced Materials chairman, president and CEO Paul Boynton wrote in an emailed statement.

It was announced in June that the joint venture, if approved, is expected to generate 30 to 70 new jobs ranging from hourly workers to engineers.

The new operation will make lignin-based products and will operate independently of the mill.

According to a statement by RYAM spokesman Russell Schweiss last summer, Borregaard has experience in purifying lignin in order to turn it into a higher-value product. Borregaard has been pioneering the use of lignin in recent years and has found it to be useful as binding agent in concrete and other materials.