Lyocell fiber (first developed and manufactured as Tencel™ fiber) is a new and environmentally friendly recycled cellulose fiber made from wood pulp sourced from sustainable plantations. Different from the production method of viscose rayon fiber, lyocell fiber uses N-methylmorpholine-N-oxide (NMMO) solvent for the production of regenerated fibers. Driven by environmental concerns, NMMO was discovered to be a solvent for direct dissolution of cellulose without any chemical change. 

The revolutionary part of the new method is that the non-toxic and harmless organic solvent NMMO, which is commonly called amine oxide, is almost completely recycled (99.5%) while the recovered water is used during the process for washing the fibers. In the end, only a small amount of NMMO remain in the waste water, which will be further treated through a biological process. Although both Lyocell and viscose are produced from wood pulp, Lyocell fiber's eco-friendlier and more economical way of production allows manufacturers to provide even more sustainable products to end-consumers.