Rayonier Advanced Materials Inc. (RYAM) said Wednesday that construction has begun on Altamaha Green Energy, a 70-megawatt biomass cogeneration project next to its manufacturing facility in Jesup, Georgia.

The company said the project, which is being developed with Albioma and the Beasley Group, will generate renewable electricity under a long-term power purchase agreement with Georgia Power and provide steam to the Jesup plant.

Commercial operations are expected to begin in 2029, Rayonier said.

The company said it expects to retain an initial 14% equity interest in Altamaha Green Energy, with the option to buy additional equity that could raise its ownership stake to as much as 16%. It also said that it expects to receive approximately $8 million to $10 million in annual distributions from the facility once it is operational.

The company said the project is expected to avoid about $30 million in future spending that would otherwise be needed to maintain and replace older utility equipment at Jesup.