From Forest Industry Side Stream to High Technology – Kiilto Ventures Invests in LignoSphere

Lignin is an abundant side stream of the forest industry: the world's pulp mills produce approximately 50 million tonnes of lignin annually, of which over 95% is burned for heat.

"In the forest industry, it has been repeated for decades that you can make everything from lignin except money. Now that saying is finally starting to crumble," says Eero Knuutila, CEO of LignoSphere.

The chemical complexity of lignin has long stood in the way of its potential. However, LignoSphere's technology transforms the structure of lignin into uniform spheres that function excellently as a key ingredient in numerous chemical compounds.

"We are now able to convert previously underutilized biomass into functional materials, where the value uplift can be more than tenfold compared to a kilogram of burned lignin," Knuutila explains.

The carbon footprint is smaller than that of fossil-based counterparts. Lignin spheres can be utilised, for example, as an epoxy-based paint for concrete, wood, and steel surfaces, or as a structural adhesive for wood and steel.

The company's patented process and application areas have been developed at Aalto University and Häme University of Applied Sciences.

With the funding secured, LignoSphere will accelerate the development of its technology, expand collaboration with industrial partners and customers, and prepare for the construction of an industrial-scale production facility. The company's goal is to position lignin-based materials as a credible mainstream alternative to fossil-based chemicals in the global coatings and adhesives markets.

Further information:

Matti Rönkkö, CEO, Kiilto Ventures matti.ronkko@kiilto.com

Eero Knuutila, CEO, LignoSphere Oy eero.knuutila@lignosphere.com