RYAM and Verso Energy Deepen Partnership with New MoU to Advance Electro-SAF and CO₂ Utilization Projects in Jesup, Georgia
Rayonier Advanced Materials Inc. (NYSE: RYAM), a recognized global leader in High Purity Cellulose (HPC), and Verso Energy, a prominent player in the clean energy transition space, have taken a significant step forward in their strategic collaboration with the signing of a new Memorandum of Understanding (MoU). The agreement represents an expansion of their joint efforts to explore and develop a groundbreaking clean energy initiative centered in Jesup, Georgia—home to one of RYAM’s largest and most advanced industrial facilities.
The newly signed MoU aims to accelerate the evaluation and potential development of a state-of-the-art facility focused on the production of electro Sustainable Aviation Fuel (e-SAF) while also utilizing and valorizing biogenic carbon dioxide (CO₂) generated from RYAM’s existing manufacturing operations. Electro-SAF, often seen as a next-generation aviation fuel, is produced by combining renewable hydrogen with captured CO₂, offering a low-emission alternative to traditional jet fuels. The partnership represents a significant convergence of advanced materials, clean energy innovation, and climate-conscious manufacturing practices.
Building on a Foundation of Innovation
This announcement builds upon a foundational MoU signed by RYAM and Verso Energy in December 2024, which laid the groundwork for identifying mutual opportunities in low-carbon technologies. The new agreement marks a considerable expansion in scope and intent, outlining a broader strategic roadmap for both companies to collaborate on the design and feasibility of multiple integrated decarbonization initiatives.
The core components of this deepened collaboration include:
- CO₂ Capture and Storage (CCS) Project:
This project will focus on capturing biogenic CO₂ emitted during RYAM’s pulp production process and storing it safely underground or utilizing it as feedstock for renewable fuels. Because the CO₂ originates from biomass, capturing it can result in negative emissions—a critical goal in the global effort to mitigate climate change. - Hydrogen Production Unit (H₂):
A dedicated unit is being studied to produce green hydrogen through water electrolysis powered by renewable energy. This hydrogen will serve as a key input for synthesizing e-fuels, particularly electro-SAF. - e-Fuel Production Unit:
The third initiative involves the creation of an advanced fuel synthesis unit. This facility would convert the captured biogenic CO₂ and green hydrogen into sustainable aviation fuel, which has emerged as a vital solution for reducing emissions in the hard-to-abate aviation sector.
Each of these projects is being considered at RYAM’s Jesup, Georgia, site. Jesup is strategically suited for such developments thanks to its existing industrial infrastructure, proximity to renewable energy sources, and a reliable stream of biogenic CO₂ generated by RYAM’s cellulose manufacturing processes.
Executive Leadership Perspectives
De Lyle Bloomquist, President and CEO of RYAM, emphasized the importance of this next phase of collaboration in a prepared statement:
“This new MoU marks an exciting evolution in our collaboration with Verso Energy. As the global push for decarbonization accelerates, RYAM remains committed to unlocking new revenue streams from our biogenic CO₂ and biomass resources. We are energized by the shared vision we’ve built with Verso and the prospect of creating meaningful environmental and economic value in Georgia and beyond.”
Bloomquist’s comments reflect RYAM’s ongoing strategic pivot toward higher-value, lower-carbon applications for its existing operations. The company’s long-standing leadership in High Purity Cellulose—a key material used in products ranging from pharmaceuticals to electronics—positions it well to support emerging climate technologies, including sustainable fuels.
Antoine Huard, CEO of Verso Energy, echoed these sentiments and underscored the significance of the partnership for advancing scalable clean energy infrastructure in North America:
“The Jesup site presents a unique opportunity to demonstrate the scalable integration of carbon capture and renewable fuel production in North America. Our strengthened partnership with RYAM allows us to move with purpose toward large-scale deployment of low-carbon fuels and to contribute decisively to the energy transition. This agreement underlines our long-term confidence in the U.S. market and our commitment to global climate goals.”
Verso Energy, known for its expertise in decarbonization and renewable project development, sees the initiative as a model for future industrial hubs that blend manufacturing and emissions mitigation. The project could help set new standards for sustainable industrial development, especially in regions with rich biomass resources like the southeastern United States.
Strategic Framework and Next Steps
The Memorandum of Understanding outlines a series of critical next steps that will shape the course of the partnership over the coming years. These include:
- Joint Steering Committee Formation:
RYAM and Verso will form a joint steering committee tasked with overseeing project assessments, coordinating stakeholder engagement, and guiding the feasibility study processes. The committee will also be responsible for aligning strategic objectives and timelines. - Exclusivity Period:
The MoU grants an exclusivity period for project development, during which the two companies will work closely to evaluate technical, economic, and regulatory aspects without third-party competition or interference. - Negotiation of Definitive Agreements:
Should the feasibility studies yield favorable results, the companies intend to negotiate long-term definitive agreements, including a CO₂ supply contract and potentially co-investment terms for constructing and operating the proposed facilities. - Feasibility Studies in Progress:
A comprehensive feasibility study is already underway. This assessment will include technical evaluations of equipment and process integration, cost modeling, regulatory compliance, carbon intensity analysis, and life cycle assessments of the e-SAF and hydrogen production pathways.
A final investment decision (FID) is anticipated within the next 18 to 24 months, depending on the results of these studies and the evolving landscape of policy, incentives, and market demand for sustainable fuels.
Broader Implications for the Clean Energy Ecosystem
The collaboration between RYAM and Verso Energy is more than a bilateral industrial agreement—it reflects a broader transformation underway across multiple sectors. As aviation regulators and commercial airlines set ambitious targets to reduce lifecycle carbon emissions, the demand for SAF (Sustainable Aviation Fuel), particularly e-SAF derived from green hydrogen and biogenic CO₂, is expected to surge dramatically over the next decade.
Additionally, the project represents a growing trend of industrial symbiosis, where waste streams—such as CO₂ emissions—are transformed into valuable resources. By turning a pulp mill byproduct into a feedstock for aviation fuel, the companies are pioneering a closed-loop model with strong environmental and economic advantages.
Further, the initiative stands to benefit from recent U.S. federal incentives under the Inflation Reduction Act (IRA), which offers tax credits for carbon capture, clean hydrogen production, and SAF use. These incentives could significantly improve the financial viability of the proposed projects in Jesup.
