UPM inaugurates €1.37 billion Leuna biorefinery in Germany
UPM inaugurated its biorefinery in Leuna, Germany, establishing a commercial-scale platform for wood-based renewable chemicals. The facility represents an investment of €1.37 billion and has an annual production capacity of 220,000 tonnes.
The plant converts lignocellulosic biomass into biochemicals. Its feedstock consists primarily of wood from sustainably managed forests and sawmill residues. UPM describes it as the largest facility of its kind worldwide.
Ramp-up and renewable feedstocks
Enzymatic hydrolysis and the production of lignin-derived specialty chemicals have reached stable operation. UPM is increasing sales of these products as the wider ramp-up continues.
The biorefinery processes beechwood from forest thinnings and sawmill residues sourced within approximately 200 kilometres. These materials are unsuitable for higher-value applications such as timber and furniture. Enzymatic hydrolysis separates the biomass into industrial sugars and lignin, providing renewable inputs for chemical production.
The resulting biochemicals can be used in clothing, packaging, cosmetics, construction materials and tyres, offering alternatives to fossil-based raw materials while meeting manufacturers’ performance requirements.
UPM President and CEO Massimo Reynaudo described Leuna as a major investment in the company’s growth and diversification. He said renewable chemicals would open additional markets and customer opportunities, with the biorefinery and UPM’s renewable fuels forming a platform for future profitable growth.
He also linked the project to European industrial competitiveness, arguing that commercialising scientific and engineering expertise can create new business opportunities.
An industrial platform for the bioeconomy
For UPM, the project demonstrates the move from pilot-scale renewable carbon technologies to commercial manufacturing. The company sees the development as a way to reduce dependence on imported fossil-based supply chains and improve security of supply.
UPM Next Generation Renewables operates biorefineries in Lappeenranta, Finland, and Leuna. Its portfolio includes renewable glycols, lignin-based functional fillers, renewable diesel and bio-naphtha, produced from sustainably sourced wood and industrial residues.
UPM operates globally across renewable fibres, advanced materials, decarbonisation solutions and communication papers. The company employs approximately 15,100 people and has annual sales of around €9.7 billion.
