In the United States (US), Rayonier Advanced Materials Inc. (RYAM), a global leader in high-purity cellulose, has announced that construction is underway on Altamaha Green Energy (AGE), a 70 MW biomass cogeneration project adjacent to RYAM’s manufacturing facility in Jesup, Georgia (GA). The project is being developed in partnership with Albioma Group and the Beasley Group, with commercial operations expected to begin in 2029.
Altamaha Green Energy (AGE) will generate renewable electricity under a long-term power purchase agreement (PPA) with Georgia Power while providing process steam to RYAM’s Jesup facility.
Through its land and prior investments in the project, RYAM expects to retain an initial 14 percent equity interest in AGE.
Under pre-established terms, RYAM can purchase additional equity interest to increase its total ownership up to 16 percent.
Based on current projections, RYAM expects to receive approximately US$8 million to US$10 million in annual distributions from AGE once the facility is operational.
Capital-light structure
For RYAM, this capital-light structure allows it to participate in the project’s potential long-term value while preserving capital for its core business.
AGE is also expected to provide significant strategic benefits to RYAM’s Jesup operations by modernizing and strengthening critical utility infrastructure while avoiding approximately US$30 million in future capital expenditures that otherwise would have been required to maintain and replace legacy utility assets.
This is an important milestone for Altamaha Green Energy and a compelling example of how we can unlock additional value from RYAM’s existing asset base. The capital-light structure enables RYAM to retain meaningful ownership and long-term upside in the project while preserving capital for our core business and avoiding substantial future capital investment at Jesup, said Dan Krawczyk, President and CEO of RYAM.
Sustainable regional biomass
The bioenergy facility will be fueled by residues from the regional forestry industry, with feedstock procurement supported by Beasley Group, a vertically integrated forest products company.
The fuel will comply with the highest sustainability certification standards.
The project’s use of sustainably sourced regional forestry residues to generate renewable electricity and process steam is also expected to advance RYAM’s sustainability objectives and further support its role in promoting a more sustainable world.
Together, these benefits are expected to enhance the reliability, environmental performance and long-term competitiveness of Jesup, a core manufacturing site within RYAM’s High Purity Cellulose platform.
Beyond the financial benefits, AGE will strengthen critical infrastructure supporting one of our most important manufacturing sites, enhance its long-term reliability and competitiveness, and further support our role in promoting a more sustainable world, Dan Krawczyk said.
Major milestone for Albioma
France-headed Albioma Group has acquired a 43 percent stake in Altamaha Green Energy, bringing more than 30 years of biomass energy expertise to the project.
According to Albioma, the total construction cost amounts to US$650 million, with financing provided through a US$477 million project finance facility arranged by Mizuho, Santander and La Caisse (formerly CDPQ), three of Albioma’s longstanding financing partners.
This major investment follows the recent acquisition of a majority stake in Archer Forest Products, a wood pellet production facility also located in Georgia.
These two transactions represent a significant step forward in Albioma’s expansion in the United States and underscore the Group’s strategy of diversifying its growth platform across new geographies.
They also enable Albioma to leverage more than three decades of biomass expertise in a market offering abundant local resources, growing energy demand, and strong long-term growth potential.
This project represents the largest single investment in Albioma’s history. The strength of our business model enables us to finance our share of the equity entirely from our own resources. Fully aligned with our strategy, this investment marks a major milestone in the Group’s development as we continue to diversify our growth platform. Its scale demonstrates our ability to export the biomass expertise we have built over more than 30 years in the French overseas territories to new international markets. It also reinforces Albioma’s position as a leading player in renewable biomass energy. Above all, this achievement reflects the dedication and expertise of our teams, whom I warmly thank, as well as the continued trust of our partners, commented Julien Gauthier, CFO and Deputy CEO of Albioma.
