Lenzing, a provider of speciality fibres for the textile and nonwoven industries, is acquiring a 43 MW biomass power plant located in the Heiligenkreuz business park in Burgenland.

The exclusive use of biomass from the nearby power plant will help Lenzing to reduce its CO2 emissions associated with energy use by approximately 50,000 tonnes per year.

The move is part of Lenzing’s strategy to strengthen its eco-friendly speciality fibre portfolio and to contribute to lower CO2 emissions throughout the supply chain, helping customers achieve their sustainability goals.

Lenzing’s production site in Heiligenkreuz 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. The site was previously heavily reliant on natural gas, with less than 10% of renewable energy sourced from biomass and biogas.

The transaction is expected to be completed in the second quarter of 2023.

Christian Skilich, chief pulp officer and chief technology officer of the Lenzing Group said: “With this strategic investment, we are making an important contribution to site security and strengthening our range of eco-friendly speciality 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.”

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By GlobalData

Lenzing hosted a recent webinar to outline the successes and challenges it faced in 2022 in advancing circularity in the global apparel and textile industry, outlined in its latest sustainability report.