August 16, 2024 [Market Screener]- Brazil’s Raizen , the world’s largest sugarcane processor, has struck a deal with Dutch biorefinery Vertoro to develop new uses for lignin, a residue from second-generation ethanol (E2G) production, including its conversion into advanced biofuels, chemicals and materials, the companies said.

The partnership aims to increase added value of waste at Vertoro’s plant in the Netherlands and secure purchase contracts for lignin with a view to installing a commercial-scale production unit integrated into Raizen’s E2G plants, they told Reuters.

“In the next two years, we want to validate the demonstration plant and have sales contracts for lignin to open this market, and then make a first plant viable in Brazil,” said Mateus Lopes, director of energy transition at Raizen.

Lignin is one of the three biopolymers that make up the sugarcane bagasse that Raizen uses to produce E2G, but it is not used up in the process. Lignin cake left from ethanol production is currently burned in boilers to generate energy and steam.

According to Lopes, the aim is to “upgrade” the current use of lignin to maximize the use of biomass in view of the global demand for new low-carbon solutions based on waste.

“We will send (samples) to customers, to refineries to test co-processing, to ship to engine companies, to polymer companies to test on polyurethane, epoxy resin,” Lopes said in an interview.

Raizen believes it will be able to generate substantial quantities of the E2G byproduct, which is already being produced in plants in the interior of São Paulo and exported to customers abroad. In total, lignin production capacity of 1.5 million tonnes (wet basis) is expected, based on the seven E2G units planned and two already in operation.

“Our vision is that every E2G plant would have biogas and lignin in the future connected to it, increasing our ‘pool’ of products,” the executive added.

Vertoro, which counts shipping giant Maersk as one of its main investors, will use its Goldilocks technology to transform Raizen’s lignin into a pure, low-sulfur and highly processable product low in molecular weight.

Michael Boot, co-founder and co-CEO of Vertoro, said lignin will be treated in a process that resembles the preparation of an espresso coffee, allowing a single molecule to be sold across an entire value chain, from fuels to pharmaceuticals.

Lopes said the use of lignin has already been explored by companies in the paper and cellulose sector, such as Suzano.

“It’s a path the paper and cellulose industry has already been taking, but we understand our lignin has specific qualities … for which we will find special markets,” he said.