Rayonier Advanced Materials Inc. (RYAM) announced the signing of a Memorandum of Understanding (MoU) with GranBio LLC, a pioneer in biochemicals and biofuels, to jointly explore the development of a small-scale commercial cellulosic Sustainable Aviation Fuel (SAF) facility co-located at RYAM’s Jesup, Georgia site.
Under the agreement, GranBio will lead the proposed project to deploy its proprietary AVAP technology to convert lignocellulosic biomass into second-generation ethanol, which will be upgraded into SAF for sale to an offtaker. The new facility would leverage RYAM’s infrastructure at the Jesup plant, including feedstock, utilities, and logistics. The project will be partially financed through GranBio’s $100 million grant from the U.S. Department of Energy.
In addition to advancing its strategic goal of maximizing value from existing assets, should the project proceed, RYAM would receive a license to GranBio’s latest-generation Celer2L yeast and AVAP technologies for ethanol and sugar production at its own facility, in partnership with GranBio - a meaningful step in diversifying into high-growth biofuel and biochemical markets.
The due diligence is expected to conclude later this year, at which point both parties will determine next steps.
RYAM is a global leader of cellulose-based technologies, including cellulose specialties.
