Rayonier Advanced Materials (RYAM) announced that construction was underway on Altamaha Green Energy (AGE), a 70 MW biomass cogeneration project adjacent to its manufacturing facility in Jesup, Georgia. The project’s capital-light structure is intended to preserve RYAM’s ownership interest while strengthening the site’s critical infrastructure.
Developed in partnership with Albioma and the Beasley Group, AGE will generate renewable electricity under a long-term power purchase agreement with Georgia Power and supply process steam to RYAM’s Jesup facility. Commercial operations are expected to begin in 2029.
Ownership and expected financial benefits
Through its land and previous investments in the project, RYAM expects to retain an initial 14% equity interest in AGE. Under terms established previously, it also has an option to acquire an additional interest, increasing its total ownership to as much as 16%. Based on current projections, RYAM expects annual distributions of approximately $8 million to $10 million once the facility becomes operational. This structure allows the company to participate in the project’s potential long-term value while preserving capital for its core operations.
AGE is also expected to modernise and strengthen critical utility infrastructure at Jesup, avoiding approximately $30 million in future capital expenditure that would otherwise be needed to maintain and replace legacy utility assets.
The use of sustainably sourced regional forestry residues to produce renewable electricity and process steam is expected to advance RYAM’s sustainability objectives. Together, the infrastructure and environmental benefits are intended to improve the reliability, environmental performance and long-term competitiveness of Jesup, a core site in RYAM’s high-purity cellulose manufacturing platform.
“This is an important milestone for Altamaha Green Energy,” said Dan Krawczyk, President and Chief Executive Officer of RYAM. He described the project as an opportunity to unlock additional value from the company’s existing assets. Krawczyk said the capital-light structure would retain meaningful ownership and long-term upside while preserving capital for the core business and avoiding substantial future investment at Jesup. He also highlighted the project’s role in strengthening essential infrastructure, supporting the site’s long-term reliability and competitiveness, and advancing the company’s sustainability objectives.
The facility will be fuelled by sustainably sourced residues from the regional forestry industry, with feedstock procurement supported by the Beasley Group. Albioma contributes more than 30 years of experience in biomass energy.
