Lenzing signs contract to acquire power plant in Heiligenkreuz

27 Apr '23

2 min read

Pic: Lenzing AG / Energie 42 Beteiligungs GmbH

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Austria-based Lenzing Group, a leading provider of specialty fibres for the textile and nonwovens industries, has announced the acquisition of a 43 MW biomass power plant from Energie 42 Beteiligungs in Heiligenkreuz, Burgenland.
The acquisition, subject to regulatory approvals, is expected to be completed in the second quarter of fiscal 2023.

The Lenzing Group, a world-leading provider of specialty fibres for the textile and nonwovens industries, has signed a contract for the acquisition of the 43 MW biomass power plant of Energie 42 Beteiligungs located in the Heiligenkreuz business park (Burgenland). The execution of the transaction is in particular subject to regulatory approvals and is expected in the second quarter of 2023. This strategic investment will significantly reduce the dependence on fossil energy at the Lenzing production site in Heiligenkreuz. Around 50 per cent of the natural gas currently used can be replaced by energy from renewable sources in the future.

The Lenzing Group produces eco-friendly Tencel and Veocel branded lyocell fibres as well as a variety of premium fibres such as Tencel x Refibra or CO2 neutral Tencel lyocell fibres for the textile and nonwovens industries at Heiligenkreuz. Previously, the site was heavily dependent on natural gas with a share of renewable energy through biomass and biogasless than ten percent. 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 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 said in a press release.

“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,” says Christian Skilich, chief pulp officer and chief technology officer of the Lenzing Group.

In line with the Paris Agreement and the United Nations Sustainable Development Goals, Lenzing made a strategic commitment in 2019 to reduce its CO2 emissions per ton of product by 50 per cent by 2030. Lenzing also aims to achieve carbon-neutrality by 2050. The Science Based Target Initiative validated the target against scientific criteria, making Lenzing the first manufacturer of wood-based cellulosic fibres with an approved science-based target.

With the acquisition of the biomass power plant, Lenzing is accelerating the transition to renewable energies and, thus, also the achievement of its climate targets. This consistent step also opens up opportunities to develop other renewable energy sources, such as photovoltaics, to a greater extent in the future.

Fibre2Fashion News Desk (RR)

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