Domtar Corporation announced it has acquired a majority interest in Prisma Renewable Composites, LLC, a company focused on developing advanced materials from lignin and other natural resources.

With its investment, Domtar will help commercialize the process of using lignin to make engineered plastic compounds such as Acrylonitrile Butadiene Styrene (ABS) and other high-value fiber and lignin applications.

“Innovation is core to Domtar Biomaterials’ growth strategy,” says Domtar Biomaterials vice president Mark DeAndrea. “We’re pleased to have the opportunity to partner with an industry leading renewable composite company. Domtar Biomaterials is a bridge between science and commercialization. This investment leverages Prisma’s scientific research capabilities and unique product development strategy with Domtar’s commercialization and lignin production expertise.”

“We are excited about this partnership with Domtar,” Prisma CEO Adam McCal says. “We believe their commercialization plans and capabilities give Prisma an incredible advantage in establishing a robust supply chain from lignin to the final material production.”

Lignin – the natural glue that holds wood fibers together – is a byproduct of the Kraft pulping process that has traditionally been burned to provide energy to a mill. However, it also has the potential to be used in a wide range of industrial applications as a sustainable and bio-degradable alternative to petroleum and other fossil fuels. Domtar is a leader in lignin separation and the development of lignin-based materials. The company recently installed a demonstration plant in Ontario, Canada, to show how lignin pellets can potentially be used as a bio-alternative to plastic, chemicals and other petroleum-based products.