GranBio, RYAM sign MOU to explore cellulosic SAF project at facility in Jesup, Georgia

Photo: GranBio LLC

Biochemicals and biofuels company GranBio LLC announced July 31 the signing of a memorandum of understanding (MOU) with cellulose specialty products firm Rayonier Advanced Materials Inc. to jointly explore the development of a small-scale commercial cellulosic sustainable aviation fuel (SAF) facility co-located at RYAM’s Jesup, Georgia, site.

Under the agreement, GranBio will lead the proposed project to deploy its proprietary AVAP® technology to convert lignocellulosic biomass into second-generation ethanol, which will be upgraded into SAF for sale to an offtaker.

The new facility would leverage RYAM’s infrastructure at the Jesup plant, including feedstock, utilities and logistics.

The project will be partially financed through GranBio’s $100 million grant from the U.S. DOE.

In addition to advancing its strategic goal of maximizing value from existing assets, should the project proceed, RYAM would receive a license to GranBio’s latest-generation Celer2L™ yeast and AVAP® technologies for ethanol and sugar production at its own facility, in partnership with GranBio—a “meaningful step” in diversifying into high-growth biofuel and biochemical markets, according to GranBio.

“This MOU aligns with our strategy to unlock new value from our core assets and expand into renewable markets where our infrastructure and technical capabilities create a competitive advantage,” said De Lyle Bloomquist, the president and CEO of RYAM. “GranBio brings world-class technology to this partnership, and together we’re exploring practical, scalable solutions to help decarbonize global aviation-fuel markets.”

GranBio CEO Luiz Oliveira added, “I am very pleased to strengthen our collaboration with RYAM and work toward our joint goal of developing clean-energy solutions while improving the communities in which we work. At Jesup, we will leverage our complementary capabilities in the development of a cost-effective, scalable solution for the production of sustainable aviation fuel.”

GranBio said this first-of-its-kind project marks a major milestone in its strategic goal of systematically scaling up SAF production with strong potential for replication.

The due diligence is expected to conclude later this year, at which point both parties will determine next steps.

According to GranBio, the MOU underscores both companies’ commitment to sustainability, innovation and the development of next-generation biomaterials and fuels.

GranBio operates a plant in Brazil and a pilot plant in the U.S., including an R&D center.

The company plans to build 1 billion gallons of SAF capacity over the next decade to meet growing global demand.

Founded in 2011, GranBio has over 400 granted and pending patents in the bioeconomy field.