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UPM begins commercial production of wood-based diesel

The world’s first wood-based renewable diesel biorefinery has started commercial production in Lappeenranta, Finland. UPM Lappeenranta Biorefinery is based on a hydrotreatment process developed by UPM, and produces approximately 120 million litres of renewable UPM BioVerno diesel yearly.

“Lappeenranta Biorefinery is the first significant investment in a new and innovative production facility in Finland during the ongoing transformation of the forest industry. It is also a focal part in the implementation of our company’s Biofore transformation strategy,” says Heikki Vappula, executive vice-president, UPM Biorefining.

“The production process works as planned and the high quality end product, UPM BioVerno diesel, fulfils customer specifications.”

Petri Kukkonen, head of the UPM Biofuels business, explains that the start-up phase of the biorefinery began in early autumn 2014, and has included the customary challenges of a new process and production system.

The UPM BioVerno diesel is produced from crude tall oil, a residue of pulp production, in the UPM Lappeenranta Biorefinery. A large portion of the raw material comes from UPM’s own pulp mills in Finland.

UPM says its BioVerno renewable diesel reduces greenhouse gas emissions by as much as 80% compared to traditional diesel. UPM has a sales agreement with NEOT (North European Oil Trade), a wholesale organisation of oil and biofuel products. 

The € 175-million Lappeenranta biorefinery will directly employ nearly 50 people and indirectly about 150 people.
UPM operates in several business areas: biorefining, energy, UPM Raflatac (labels), paper and plywood.