RYAM Begins Construction of 70 MW Biomass Cogeneration Project in Georgia
Rayonier Advanced Materials Inc. (NYSE: RYAM), a global leader in high-purity cellulose, announced that construction is now underway on the Altamaha Green Energy (AGE) project, a 70-megawatt biomass cogeneration facility being developed next to the company’s manufacturing site in Jesup, Georgia.
The project represents a significant investment in renewable energy infrastructure and is designed to support the long-term reliability and competitiveness of RYAM’s Jesup operations. AGE is being developed through a partnership between RYAM, Albioma and the Beasley Group, combining RYAM’s existing site assets with expertise in biomass energy development and regional forestry resources.
Commercial operations at the facility are expected to begin in 2029. Once operational, AGE will generate renewable electricity under a long-term power purchase agreement with Georgia Power. At the same time, the facility will supply process steam to RYAM’s Jesup manufacturing complex, creating an integrated energy solution for the site.
Capital-Light Ownership Structure
RYAM expects to retain an initial 14% equity interest in Altamaha Green Energy through its land contribution and previous investments in the project. Under previously established terms, the company also has an option to acquire additional equity that could increase its total ownership stake to as much as 16%.
The ownership structure is intended to provide RYAM with continued participation in the project’s long-term economic potential without requiring the company to make a large upfront capital investment.
Based on current projections, RYAM expects AGE to generate approximately $8 million to $10 million in annual distributions once the facility reaches commercial operations. The anticipated cash flow would provide an additional source of recurring value while allowing RYAM to maintain financial resources for its core business and other strategic priorities.
The project also offers an opportunity for RYAM to unlock value from assets associated with its existing Jesup operations while establishing a modern energy infrastructure platform.
Strengthening Jesup Manufacturing Infrastructure
Beyond the expected financial benefits, AGE is designed to provide important operational advantages to RYAM’s Jesup facility.
The biomass cogeneration project is expected to modernize and strengthen critical utility infrastructure supporting the manufacturing site. RYAM estimates that the project could help the company avoid approximately $30 million in future capital expenditures that otherwise would have been needed to maintain and replace aging utility assets.
By replacing or reducing reliance on legacy infrastructure with a modern cogeneration system, AGE is expected to enhance the reliability of energy and steam supplies supporting Jesup’s operations.
The project is particularly significant because Jesup is a core manufacturing location within RYAM’s High Purity Cellulose platform. The facility plays an important role in the company’s production network and supports products used across multiple industrial and consumer applications.
Improved utility reliability could therefore provide long-term benefits for the site’s operational performance while helping strengthen its competitiveness.
Renewable Energy From Regional Forestry Residues
AGE will use sustainably sourced forestry residues from the regional forestry industry as its primary fuel source. The Beasley Group is supporting feedstock procurement for the project, helping connect the facility with available regional biomass resources.
The use of forestry residues is expected to support the project’s renewable-energy objectives while creating a productive use for materials generated through regional forestry operations.
Albioma is contributing extensive experience in biomass energy development and operations. The company brings more than 30 years of expertise in biomass power generation to the project, supporting the development of AGE’s renewable-energy capabilities.
The facility’s combined generation of electricity and process steam is also expected to improve the overall efficiency of the energy system supporting RYAM’s Jesup manufacturing operations.
Supporting RYAM’s Sustainability Objectives
The AGE project is expected to contribute to RYAM’s broader sustainability objectives by expanding the use of renewable energy at one of its major manufacturing locations.
Generating renewable electricity from regional forestry residues, while simultaneously producing process steam for industrial use, creates an energy model that connects renewable-resource utilization with manufacturing requirements.
The project is also expected to improve the environmental performance of the Jesup site while supporting the long-term resilience of its utility infrastructure.
For RYAM, the combination of renewable energy generation, modernized utilities and reduced future infrastructure requirements makes AGE an important component of the company’s strategy for maintaining competitive and sustainable manufacturing operations.
CEO Highlights Long-Term Value
Dan Krawczyk, President and Chief Executive Officer of RYAM, described the start of construction as an important milestone for the project and highlighted its potential to generate value from the company’s existing asset base.
According to Krawczyk, the capital-light ownership structure allows RYAM to maintain meaningful participation in AGE while preserving capital for its core business. He also pointed to the potential avoidance of substantial future capital spending at Jesup as an important benefit of the project.
Krawczyk further emphasized the operational importance of strengthening infrastructure at Jesup, noting that the project is expected to improve the long-term reliability and competitiveness of one of RYAM’s key manufacturing sites.
The combination of financial participation, infrastructure modernization and renewable energy generation positions AGE as a strategic project for both RYAM and its Jesup operations.
Expected Commercial Operations in 2029
With construction now underway, Altamaha Green Energy is targeting commercial operations in 2029. When completed, the 70 MW facility is expected to supply renewable electricity to the grid under its long-term agreement with Georgia Power while delivering process steam directly to RYAM’s adjacent manufacturing facility.
The project’s structure gives RYAM exposure to potential long-term distributions while limiting the amount of capital required from the company. At the same time, the facility is expected to address future utility infrastructure needs at Jesup and reduce the need for approximately $30 million in otherwise anticipated capital expenditures.
The project therefore combines renewable power generation with industrial energy supply and infrastructure modernization. Its reliance on regional forestry residues further connects RYAM’s manufacturing operations with renewable-resource utilization.
About Rayonier Advanced Materials
Rayonier Advanced Materials is a global producer of high-purity cellulose, which is used in the manufacture of filters, food products, pharmaceuticals, high-performance plastics, propellants and a variety of other industrial applications.
The company’s specialized manufacturing assets produce cellulose specialties products as well as cellulose viscose pulp, cellulose fluff pulp, paperboard, high-yield pulp and a range of value-added co-products. These co-products include biofuels, bioelectricity and lignin.
RYAM operates manufacturing facilities in the United States, Canada and France. The company generated approximately $1.5 billion in revenue in 2025.
Through projects such as Altamaha Green Energy, RYAM is seeking to strengthen its manufacturing infrastructure while expanding the role of renewable energy and resource efficiency across its operations. AGE is expected to become an important part of that effort when it begins commercial operations in 2029.
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