Rayonier Advanced Materials Inc. RYAM announced that it partnered with Albioma and the Beasley Group to construct the Altamaha Green Energy project. This 70-megawatt biomass cogeneration project is located adjacent to Rayonier Advanced Materials’ manufacturing facility in Jesup, GA.
RYAM’s Benefits From Altamaha Green Energy
Rayonier Advanced Materials will retain an initial 14% equity interest in the project through its land and prior investments. The company also has the option to acquire additional equity interest to hold 16% shares in the project. Altamaha Green Energy will yield renewable electricity for Georgia Power under a long-term power purchase agreement, while supplying process steam to RYAM’s Jesup facility.
Once operational, RYAM expects to receive $8-$10 million in annual distributions from the project. The company expects commercial operations to begin in 2029.
The project is expected to boost the company’s reliability, environmental performance and long-term competitiveness of Jesup. The project will modernize and strengthen critical utility infrastructure at RYAM’s Jesup operations, saving $30 million in future capital expenditure. Rayonier Advanced Materials will also gain from the project's use of sustainably sourced regional forestry residues to generate renewable electricity and process steam.
Rayonier Advanced Materials’ Stock Price Performance
The company’s shares have gained 10.4% in the past year against the industry’s 10.8% growth.
RYAM’s Zacks Rank & Stocks to Consider
The company currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Ternium S.A. TX, Avient Corporation AVNT and Innospec Inc. IOSP. TX currently sports a Zacks Rank #1 (Strong Buy), and AVNT and IOSP carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Ternium’s 2026 earnings is pegged at $6.54 per share, indicating year-over-year growth of 201%. Ternium shares have jumped 53.6% so far this year.
The Zacks Consensus Estimate for Avient’s 2026 earnings is pegged at $3.20 per share, indicating a year-over-year rise of 13.5%. Avient’s shares have gained 2.9% in a year.
The Zacks Consensus Estimate for Innospec’s 2026 earnings is pegged at $5.03 per share, indicating a 4.6% year-over-year dip. Its shares have risen 24.1% in a year.
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Rayonier Advanced Materials Inc. (RYAM): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).