UPM biofuels, Kaukas plant

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Telephone : +358 (0)204 15 111
Fax : +358 (0)204 15 110
Address : Kaukaantie 16 , Lappeenranta , Finland , FI-53200

UPM is building a hydrogenation biorefinery on its Kaukas paper and pulp mill site in Lappeenranta, Finland. UPM BioVerno, the biorefinery will produce 100,000 tonnes of renewable diesel for transport. UPM is one of the world largest forest companies with a dedication to also develop biofuels from their products.

Currently, UPM is building a hydrogenation biorefinery on its Kaukas paper and pulp mill site in Lappeenranta, Finland. The biorefinery will produce 100,000 tonnes of renewable diesel for transport, equating to 120 million litres annually. The investment of EUR 150 million is the first industrial scale investment in this field globally. Site construction will be completed in 2014.   The assembly of machinery started in the summer 2013.

UPM BioVerno is produced from crude tall oil (CTO), which is a residue from the chemical pulping process.The main phases of the process are pretreatment of crude tall oil, hydrotreatment, recycle gas purification, and fractionation. Converting CTO to biofuel is an innovative way to use that residue without changing the main process, which is pulp production. This method makes additional use of an existing UPM residue, and also avoids any raw materials that could be used for food production.

“Coming from the forest industry we benefit from our profound experience in forest biomass and extensive resources that can be used effectively for developing biofuels business and executing large scale biofuel projects,” says Heikki Vappula, President of the Energy and Pulp Business Group in UPM.

“During the last few years we have made progress with remarkable R&D work and important investments for developing wood-based biofuels. UPM aims to become a major player in advanced biofuels so this recognition confirms that we have managed to make significant progress in this field,” says Petri Kukkonen, Vice President of UPM Biofuels Business.

Driving lower emissions with UPM BioVerno 

UPM BioVerno is a high quality transport fuel that works well in modern vehicles and is fully compatible with existing fuel distribution systems. Furthermore, UPM BioVerno decreases greenhouse gas emissions significantly. The greenhouse gas reduction of approximately 80% is calculated for the whole lifecycle taking into account all energy used in the plant and utilities used in production.

The NER 300 project
The European Commission  awarded in dec 2012 UPM a grant of EUR 170 million for solid wood-based biorefinery (BTL) project in Strasbourg, France. UPM Rauma’s similar biorefinery project plan in Finland has not received NER300-funding.

UPM’s Biofuels business resources are currently directed to the construction of the Lappeenranta biorefinery. The company will also continue to clarify the investment prerequisites in Strasbourg. The final assessment on the investment will be made within 12-18 months.

UPM’s investment decision for the NER project is subject to the economic operating environment and the long-term outlook for the market price and availability of wood. Also, amendments to biofuels’ raw material-related directives that are currently being considered by the EU will have an impact on UPM’s investment decision.

UPM leads the integration of bio and forest industries into a new, sustainable and innovation-driven future. The company products are made of renewable raw materials and are recyclable.  The Group employs around 22,000 people and it has production plants in 17 countries. UPM's annual sales exceed EUR 10 billion. UPM's shares are listed on the Helsinki stock exchange. UPM – The Biofore Company – www.upm.com

UPM Biofuels

UPM plans to become a major player in high quality, advanced biofuels for transport. Biofuels are an essential part of the Biofore strategy. The innovative wood-based biofuels developed by the company and their production technologies are part of the sustainable future. UPM’s biofuels are frontrunners in quality, usability and sustainability. They will significantly decrease the greenhouse gas emissions compared to fossils fuels. www.upm.com/biofuels

Heikki Vappula has been appointed Executive Vice President, UPM Biorefining. UPM Biorefining consists of pulp, timber and biofuels businesses. It has an annual capacity of 3.2 million tonnes of pulp, produced by four modern pulp mills in Finland and Uruguay, plantation operations, four efficient sawmills in Finland and one in Austria, and a biodiesel plant under construction in Lappeenranta, Finland. In H1 2013, the sales of the business was EUR 1,044 million and EBITDA EUR 234 million. Heikki is currently President for UPM’s Energy and Pulp Business Group.