The change will not be achieved without renewable biofuels

Aiming for zero emissions from traffic.
At present, road traffic is dependent on fossil fuels, which is an unsustainable situation. Fossil fuel reserves are becoming depleted, climate change is accelerating and our demands are exceeding the capacity of the Earth. We need solutions that make better use of the available resources.

​New renewable energy solutions for road traffic are needed to put us back on a sustainable path. Integration between the bio and forest industries allows us to change direction and aim for the IPCC* target of zero emissions by 2100. This is the path chosen by UPM Biofuels.

*The United Nations Intergovernmental Panel on Climate Change

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​UPM leading the way in advanced biofuels

UPM leading the way in advanced biofuels

As a frontrunner of the new forest industry, UPM leads the integration of the bio and forest industries towards a more sustainable future. Keywords characterising this process include innovation, responsibility and resource efficiency.

​UPM Biofuels is a new UPM business. It is a priority for the company as a whole, as it plays a crucial role in the implementation of the Biofore strategy. The construction of the world's first commercial-scale biorefinery producing wood-based diesel in Lappeenranta spearheads the Biofore strategy.

Renewable fuels meet the demand for renewable energy

​The global demand for biofuels is predicted to rise steeply to nearly 250 million tonnes by 2020. In addition, changes to European energy legislation are increasing the need for locally sourced renewable raw materials and efficient production processes.

UPM has reacted to the changes occurring on the global market. We have invested in the first commercial-scale biorefinery for renewable diesel production. This biorefinery produces renewable fuel from forest industry residues. We employ sustainable forest management practices and innovative biofuel production processes to prolong the lifecycle of raw materials sourced from the forest — and, most importantly, to help us reduce traffic emissions.

Demand for biofuels (billion litres)

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​An impressive history of wood-based innovation harnessed to eliminate traffic emissions

The culture of innovation at UPM has gained global recognition. Our expertise in biomass processing, bioenergy and processes has gained us a leading position in wood-based product innovation. In accordance with the Biofore strategy, innovation is driven by our desire to develop sustainable, future-oriented solutions.

Our annual R&D budget is over EUR 80 million — all dedicated to making more with less.

Read more about UPM »

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Best fuel for car

We have a long and rich history at the forefront of the forestry industry. We began in the 1870s with pulp production – paper production and international operations soon followed. The oldest UPM mill dates from the 15th century – there are now over 50 mills worldwide.


At the start of the 21st century, first generation biodiesel, based on food crop raw materials, was the most commonly used biofuel in Europe. Drivers faced uncertainty over their engines' compatibility with different fuels and car manufacturers struggled with the economy of engine adaptation.


UPM launched its strategy to look for new growth businesses. Developing second generation advanced biofuels was one of the routes we wanted to explore. We found that a significant amount of crude tall oil was generated as a residue in our pulp production. That started an R&D project in-house and resulted in a new innovation and technology to convert crude tall oil into renewable diesel.


UPM started building a new biorefinery in Lappeenranta, Finland. It has an annual production capacity of 120 million litres of renewable diesel. Meanwhile, at the European Commission, continuing research into the overall greenhouse gas balance of first generation biodiesel led to the start of the process to amend legislation to favour advanced biofuel production.


UPM commences production of UPM BioVerno renewable diesel. As a true drop-in diesel, UPM BioVerno is suitable for drivers of all diesel vehicles. UPM's stringent sustainability certification helps prove the case for UPM BioVerno renewable diesel – and consequent remarkable CO2 reductions – to end-users, distributors and legislators. UPM BioVerno wins the Sustainable Energy Europe Award and Commercial Plant of the Year.


The use of energy from renewable sources continues to grow globally with UPM at the forefront of biofuels from renewable sources. In Europe, the share of biofuels in transport rises to 10% in most member states – Finland is able to reach the target of 20%. UPM is recognised for UPM BioVerno and for its part in reaching emission reduction targets and setting even higher standards for a sustainable, profitable industry.


Traffic emissions from fossil fuels are reduced to zero. Traffic relies on renewable biofuel solutions which do not generate carbon dioxide emissions. Innovations from the forest and bio industries account for a significant share of all renewable energy production, and UPM occupies a leading position in the industry.

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