UPM has inaugurated its biorefinery in Leuna, Germany, marking the start of industrial-scale production of renewable chemicals from wood. With an annual capacity of 220,000 tonnes, the facility is the largest of its kind in the world and represents a total investment of €1.37 billion.
The plant processes lignocellulosic biomass, primarily beechwood from forest thinnings and sawmill residues sourced within approximately 200 km. These materials are unsuitable for higher-value applications such as timber or furniture. Through enzymatic hydrolysis, the biomass is converted into industrial sugars and lignin, renewable raw materials that can replace fossil-based inputs in chemicals production.
The ramp-up has progressed, with enzymatic hydrolysis and the production of lignin-derived specialty chemicals reaching stable operation. UPM is now increasing sales of these products, which can be used in applications ranging from packaging and textiles to cosmetics, construction materials and tires.
“The Leuna Biorefinery is a transformative investment for UPM and an important milestone in our growth journey. Our high-performance renewable chemicals open new markets for UPM and new opportunities for our customers,” said Massimo Reynaudo, President and CEO of UPM.
The facility demonstrates the potential to bring wood-based renewable chemicals to commercial scale, offering manufacturers alternatives to fossil-derived raw materials and supporting the development of Europe’s bioeconomy.