Lenzing expands green energy portfolio in Indonesia

The Lenzing Group is expanding its global clean electricity portfolio and transitioning its production site in Purwakarta to green electricity. The Indonesian subsidiary PT. South Pacific Viscose (SPV) has been using electricity generated solely from renewable sources since July, which will reduce its specific carbon emissions by 75,000 tonnes annually.

In 2019, Lenzing became the first fiber producer to set a target of halving its carbon emissions by 2030 and becoming climate neutral by 2050. This carbon reduction target has been recognized by the Science Based Targets Initiative. In Purwakarta, Lenzing is currently investing in the reduction of carbon emissions, as well as air and water emissions. Due to €100 million investment in this area, Lenzing is gradually transitioning its existing capacities for standard viscose to Lenzing Ecovero and Veocel branded specialty viscose.

“Demand for our wood-based, biodegradable specialty fibres is constantly rising. We see enormous growth potential, especially in Asia. The switch to green, renewable electricity marks a huge step forward in converting our Indonesian site into a specialty fibre supplier. This makes us better positioned to meet the growing demand for sustainably produced fibres,” said Robert van de Kerkhof, chief commercial officer for Fibre at Lenzing.

Man-made climate change is one of the most pressing problems of our time. The fashion industry has an extremely negative impact on the environment due to its fast fashion business model and the growing consumption of fossil resources in textile production. Lenzing Ecovero viscose fibres (for textiles) and specialty viscose fibres under the Veocel brand with Eco Care technology (for nonwovens) generate 50 per cent lower greenhouse gas emissions and water pollution compared to standard viscose, Lenzing said in a press release.

Specialty fibres are Lenzing’s key strength. The company aims to generate more than 75 percent of its fibre revenue from the wood-based, biodegradable specialty fibres business under the Tencl, Lenzing Ecovero and Veocel brands by 2024. With the launch of the lyocell plant in Thailand in March 2022 and the investments in existing production sites in Indonesia and China, the share of specialty fibres in Lenzing’s fibre revenue is set to exceed the 75 per cent target by a significant margin as early as 2023.