UPM has announced it will discontinue development of its proposed biofuels refinery project at the Port of Rotterdam.
The decision follows extensive technical, commercial, and strategic reviews, and includes halting all engineering work and site-related commitments for the investment.
Instead, UPM will sharpen its focus on growing its biofuels platform through its Lappeenranta biorefinery in Finland and the continued development of Crude Tall Oil (CTO)-based biofuels, particularly for sustainable aviation fuel (SAF).
"Renewable fuels and chemicals are central to our long-term growth," said Harald Dialer, Executive Vice President of UPM Biorefining and Technology. “Lappeenranta will remain the nucleus of our biofuels strategy.”
As part of its revised growth strategy, UPM will:
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Evaluate low-capex expansion options at Lappeenranta.
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Advance SAF qualification for CTO-based fuels, supported by successful trials with Diamond Aircraft and positive reviews from ASTM.
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Continue developing feedstock technologies to broaden its base of sustainable biomass sources for cost-efficient biofuel production.
UPM maintains that demand for biomass-based fuels remains strong, especially in Europe where climate commitments are accelerating the shift away from fossil fuels in road and air transport.
UPM Biofuels, part of UPM Biochemicals, produces renewable diesel and wood-based naphtha used in plastics. The company sees this pivot as strengthening its market position in decarbonization solutions with scalable, sustainable technologies.
