Lenzing Group acquires biomass plant in Austria
The execution of the transaction is subject to regulatory approvals, and is expected in the second quarter of 2023.
The strategic investment is expected to significantly reduce the dependence on fossil energy at the Lenzing production site in Heiligenkreuz, the firm said. Around 50% of the natural gas currently used can be replaced by energy from renewable sources in the future.
Previously, the site was heavily dependent on natural gas with a share of renewable energy through biomass and biogas standing at less than 10%.
The exclusive use of biomass from the nearby power plant will enable the site to reduce its CO2 emissions associated with energy use by around 50,000 tons of CO2 per year.
Lenzing’s specialty fibres will contribute to significantly lower CO2 emissions throughout the supply chain and help Lenzing’s customers, especially brands and retailers, achieve their climate and sustainability goals, the company added.
“With this strategic investment, we are making an important contribution to site security and strengthening our range of eco-friendly specialty fibres. In the future, we will invest even more in sustainable energy concepts to further reduce our CO2 emissions in line with our ambitious climate target,” said Christian Skilich, chief pulp officer and chief technology officer of the Lenzing Group.