Metsä Fires Up First Lignin Plant to Replace Fossil Fuels in Concrete

Finland’s pulp giant partners with ANDRITZ and Dow to turn mill by‑products into high‑performance, bio‑based concrete additives.


Fri 13 Feb 26

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Metsä Group’s first lignin demo plant is now fully operational, a major milestone for the pulp giant, which is using extracted lignin to help decarbonise construction materials. And while lignin extraction has long been part of pulp production, this facility stands out as one of the world’s first designed specifically to produce modified lignin for high‑performance, bio‑based plasticisers in concrete and gypsum—markets still dominated by fossil‑based chemistry.

Developed in partnership with ANDRITZ and supported by materials science leader Dow, the Äänekoski demo plant produces Metsä LigO™, a new lignin product engineered to replace petrochemical dispersants in building materials. With a capacity of two tonnes per day, the plant converts lignin from Metsä Group’s bioproduct mill into a high‑value industrial ingredient, transforming what was once burned for energy into a strategic renewable feedstock.

According to Metsä Fibre CEO Ismo Nousiainen, the project reflects the company’s long‑term strategy to maximise the value of wood-based raw materials and pulp-production side streams. “Lignin is a substance in wood that binds wood fibres together. In pulp production, lignin is separated from the fibres. It has usually been utilised as bioenergy. However, it also has other valuable potential uses where it can replace fossil raw materials and other materials,” he said.

“Our goal is to efficiently use the side streams of pulp production and ensure they produce the greatest possible added value.”

Metsä Fibre CEO Ismo Nousiainen

Wood Central understands that the demo plant will validate the production process, product performance and market readiness, paving the way for a full‑scale industrial facility if results meet expectations. “The purpose of the new 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,” Nousiainen added. “If everything goes according to our plan, the next step will be the design and possible construction of a production‑scale plant.”

Wood Central understands that the new demo plant will be connected to Metsä Pulp’s state‑of‑the‑art bioproduct mill, which turns every part of the tree—from bark to lignin—into high‑value renewable products.

Dow, which is co‑developing bio‑based plasticisers using Metsä’s modified lignin, sees the project as a major step toward low‑carbon construction. “This collaboration demonstrates our shared vision for sustainable construction solutions and the potential of lignin‑based technologies throughout the value chain,” said Emilia Wasilewicz, Global Business Director of Dow’s Construction Chemicals business. “The new demo facility will help enable Dow Construction Chemicals to advance the development of bio‑based additives and validate the technology in construction applications at a commercial scale.”

Research has shown that lignin can play a significant role in the green transition toward a fossil-free society. Lignin is found in all terrestrial plants and trees and provides them with resilience and strength. Lignin has long been treated as a byproduct in the pulp industry, but it could eventually replace coal and oil in producing plastics and fuels.

The three previously collaborated in an EU‑funded project led by VTT Technical Research Centre of Finland, which demonstrated that modified lignin can successfully replace fossil‑based chemicals in concrete and gypsum board production. The new plant builds on that work and positions Metsä Group at the forefront of Europe’s emerging bioeconomy.

Metsä’s Äänekoski site already houses bioproduct, paperboard and veneer mills, as well as demo plants for Kuura textile fibre and Muoto packaging. It also produces sulphuric acid, product gas, biogas and methanol at an industrial scale, underscoring the company’s commitment to circular production.

ANDRITZ, which has invested heavily in lignin recovery and modification technologies, views the project as a critical step toward industrial deployment. “We are thrilled to be able to test this technology in continuous process conditions at the Äänekoski bioproduct mill,” said Kari Tuominen, CEO and President of ANDRITZ Oy. “Besides validating markets for the new lignin product, the demo scale gives us valuable insights for integrating the LigniOx process into a bioproduct mill and scaling it up for industrial use.”

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  • J Ross headshot

    Jason Ross, publisher, is a 15-year professional in building and construction, connecting with more than 400 specifiers. A Gottstein Fellowship recipient, he is passionate about growing the market for wood-based information. Jason is Wood Central's in-house emcee and is available for corporate host and MC services.

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