A new type of activated carbon derived from Kraft lignin, separated from black liquor in the paper pulp process, was evaluated for its use as an alternative sorbent to commercial powdered activated carbons (AC) from anthracite (ACCOAL) or coconut (ACBIO) for remediation in situ of contaminated sediments. Two types of kraft lignins (KL): (1) softwood (SKL), (2) hardwood (HKL) were first evaluated for their sorption to PAHs using assays in water with passive samplers (POMs). Results showed that without further chemical modifications the two kraft lignins tested had lower sorption coefficients than commercial ACCOAL or ACBIO and are not good sorbents for remediation. Following these initial tests a new type of AC derived from softwood (ACSKL) was produced in the lab using activation with potassium hydroxide (KOH) (lignin:KOH, 1:3 by dry weight) and pyrolysis at 700 °C. Sorption properties of the new ACSKL was compared to the other ACs in water spiked with PAHs and in water with PAH-contaminated sediment. Sorption results were also compared to bioavailability measurements, using digestive fluid extraction (DFE) in vitro, a method that mimics the solubilization of contaminants that occurs in the gut of a sediment-ingesting invertebrate. ACSKL was found to have similar surface area, pore volume and sorption coefficients as ACCOAL and ACBIO and thus offers a new potential sorbent for remediation, based on a more renewable biomass-derived source than AC from coal. Sediment amendment with 1% AC-SKL reduced the bioavailability of larger PAHs on average by 54% (measured by DFE), and reduced pore water concentrations of ΣPAH by 80% (measured with passive samplers). Our results show that a new type of AC based on softwood kraft lignin, a renewable and locally produced biomass material, could be used as an alternative sorbent for sediment and water remediation provided it is produced in sufficient amount and at a competitive price compared to other traditional ACs.