UPM considers building second biorefinery in Finland

EUR 200 million test biorefinery would use forest residues and sawdust as raw material.

Finnish forest industry company UPM is considering an investment of about EUR 200 million in a new test biorefinery located in Lappeenranta, eastern Finland. The biorefinery would use forest residues and sawdust as raw material, producing an estimated 50,000 tons of biodiesel and petrol annually.

UPM already has one biorefinery in Lappeenranta that is nearing completion. Construction work on the EUR 150 million project began in 2012 and the industrial scale investment was the first of its kind globally. The biorefinery makes biofuels from crude tall oil and is expected to produce about 100,000 tons of advanced second generation biodiesel for transport annually.

According to UPM, it will make the final decision regarding the new biorefiney after the first biorefinery has started operations and EU regulations concerning the second plant have been clarified.

Sources: Kauppalehti, UPM