RYAM breaks ground on 70 MW biomass cogeneration plant in Georgia

Securing energy infrastructure for high-purity cellulose production

Rayonier Advanced Materials (@RYAM) has officially commenced construction on the Altamaha Green Energy (AGE) project, a 70 MW biomass cogeneration facility located adjacent to its manufacturing complex in Jesup, Georgia. This development marks a significant infrastructure upgrade for one of the industry's leading high-purity cellulose sites, securing long-term operational stability while integrating renewable energy generation into its core industrial footprint.

The project operates under a strategic partnership model. RYAM has teamed up with Albioma, a French independent renewable energy producer with over three decades of expertise in biomass power, and the Beasley Group, which will manage the procurement of sustainably sourced forestry residues to fuel the plant. The facility is slated to begin commercial operations in 2029, providing a dual output critical to both the local grid and RYAM's manufacturing processes.

A capital-light strategy with tangible returns

From a financial and strategic standpoint, the Altamaha Green Energy project is structured to minimize capital expenditure for RYAM while maximizing infrastructure reliability. By leveraging its existing land and prior investments, RYAM retains an initial 14% equity interest in the AGE facility, with pre-established options to increase this stake to 16%. Market projections indicate this equity position could yield between $8 million and $10 million in annual distributions once the plant is fully operational.

The operational mechanics of the cogeneration plant are straightforward but highly effective for heavy industry. The facility will generate renewable electricity that will be sold to Georgia Power under a long-term power purchase agreement (PPA). Simultaneously, the plant will supply essential process steam directly to RYAM's Jesup facility. In the energy-intensive process of manufacturing high-purity cellulose—used in everything from pharmaceuticals to high-performance plastics—reliable and cost-effective steam generation is a critical variable for maintaining competitive margins.

Biomass and the 2026 industrial energy landscape

As we navigate the industrial landscape of 2026, the reliance on external, volatile energy grids is increasingly viewed as a vulnerability for large-scale pulp and paper operations. The integration of adjacent cogeneration facilities utilizing regional forestry byproducts represents a closed-loop approach to energy management. The Beasley Group's involvement ensures that the feedstock consists of regional forestry residues, effectively turning waste from the timber supply chain into baseload power and industrial steam.

This move by RYAM highlights a broader trend in the cellulose and paper sector: the transition from being mere consumers of energy to active participants in the renewable energy market. By outsourcing the heavy lifting of power plant operation to Albioma while securing the steam necessary for its own production, RYAM insulates its Jesup operations from future energy shocks.

RYAM's strategy to secure its own process steam while monetizing excess renewable electricity demonstrates a highly efficient approach to asset utilization in the heavy manufacturing sector. As grid volatility continues to challenge industrial output, will we see more pulp and paper manufacturers transforming their adjacent lands into independent power hubs? Follow The Paper for daily news, market signals and key updates from the global paper, corrugated and packaging industry. — Sigue toda la actualidad del sector en www.thepaper.ai