The Helsinki-headquartered company is investing €550 million in the facility, which is expected to start up by the end of 2022. Capacity will be 220,000 t/y of bioMEG and lignin-based renewable functional fillers. Output will also include bioMPG and industrial sugars made from sustainably harvested beechwood sourced regionally in Germany.

UPM said the 100% wood-based biochemicals will enable a switch from fossil-based products in a variety of end-uses. Application areas for bioMEG include textiles, PET bottles, packaging and deicing fluids. Bio-MPG is used in composites, pharmaceuticals, cosmetics and detergents. According to UPM, the global glycols market represents more than 30 million t in size and is expected to grow by about 4% per year.

Lignin-based renewable functional fillers are used in a variety of rubber applications such as tires and sealings as a sustainable alternative to carbon black and silica. UPM said the global market for carbon black and silica combined is more than 15m t with a forecast annual growth of about 3%.

“The biorefinery in Leuna will be the nucleus for an entirely new and high-value growth business and opens totally new markets for UPM with large growth potential for the future,” said Jyrki Ovaska, UPM’s executive vice president technology.

Molecular bioproducts form one of UPM’s three strategic focus areas for growth – the others are pulp and specialty packaging materials. Having entered the biofuels business, the company has turned its sights on creating a new and sustainable business in biochemicals, which it said are in very limited supply. 

UPM believes that a combination of good availability of sustainable wood supply (from forest thinning and residues from regional sawmills), unique technology, integration into the existing infrastructure at Leuna as well as proximity to customers will ensure the competitiveness of its operations.

Author: Elaine Burridge, Freelance Journalist