Investment in the world’s first biorefinery producing wood-based diesel

The UPM Lappeenranta Biorefinery, producing wood-based renewable diesel from forestry residue, has started commercial production. The biorefinery, located on the same site as the UPM Kaukas pulp and paper mill, will help meet increasing demand for biofuels in the EU.

  • Total UPM investment: EUR 179 million
  • Annual renewable diesel production:
    100,000 tonnes/120 million litres
  • Total persons employed: 200, directly and indirectly
  • Based on UPM innovation
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​UPM Lappeenranta Biorefinery

​Our Lappeenranta Biorefinery is the first step in UPM becoming a leader in advanced wood-based biofuel production.

The main product is renewable diesel. Crude tall oil, a residue of the pulp making process, is used as a raw material. The renewable raw material originates from forests that are managed sustainably. We will not use raw materials from the food chain.

UPM’s advanced biofuels work well in all vehicles and suit the current distribution systems.

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​Next steps – new biorefinery planned

The European Commission has awarded UPM a grant of EUR 170 million for a solid wood-based biorefinery project in Strasbourg, France. The biomass-to-liquid type of biorefinery would turn logging residues, wood chips and bark into UPM BioVerno renewable diesel.

The grant is from the European Commission’s NER300 fund (New Entrants’ Reserve), which aims to support innovative renewable energy technology.

We are currently focusing our resources on the construction of our Lappeenranta Biorefinery. UPM aims to make a final assessment of the investment in the Strasbourg Biorefinery, based on market conditions and pending EU legislation amendments.

EU grant for UPM
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