March 10, 2026
Metsä Group and Andritz have successfully started up a new demonstration plant for lignin refining at Metsä’s Äänekoski bioproduct mill in Finland, marking an important step in the shift toward circular and renewable material solutions.
The plant will enable Metsä Group to add new lignin products to its offering, while Andritz brings its LigniOxTM lignin recovery technology to demonstration scale.The project also involves Dow, a leading material science company, that collaborates with Metsä Group and Andritz to develop bio-based plasticizers for concrete and gypsum applications with modified lignin from the demo plant.
Lignin is a substance in wood that binds wood fibers together. In pulp production, lignin is separated from the fibers into black liquor and typically used as bioenergy. Using part of this lignin for chemical and material applications improves the mill’s resource efficiency and helps replace fossil-based raw materials.
According to Ismo Nousiainen, CEO of Metsä Fibre, a member of Metsä Group, the company’s goal is to utilize wood raw material and side streams of pulp production as efficiently as possible and to create maximum added value. “Lignin has traditionally been used as bioenergy. However, it also has a number of other potential uses where it can replace fossil raw materials. The purpose of the demo plant is to ensure the functionality of the lignin product’s production process, as well as the product’s characteristics and suitability for the market. If everything goes according to plan, the next stage would be the design and possible construction of a production-scale plant,” says Nousiainen.
As part of its commitment to circular solutions, Andritz is developing concepts for lignin recovery and modification to convert pulp mill side streams into value-added products. Kari Tuominen, CEO of Andritz Oy, states: “This project demonstrates how collaboration can reshape entire industries. Together, we’re unlocking lignin’s potential to deliver greener and innovative solutions for tomorrow and reduce reliance on fossil-based materials.”
The partners have previously collaborated in the LigniOx EU project coordinated by VTT Technical Research Centre of Finland, which demonstrated the suitability of modified lignin as a replacement for fossil-based chemicals in concrete production at pilot scale. The current project brings the technology to demonstration scale, supporting the next steps toward future commercial production and accelerating the transition to renewable materials. It showcases how industrial collaboration supported by partnership with research and technology organizations like VTT can drive the shift toward a low-carbon, circular economy.