UPM has started commercial production at its biorefinery in Leuna, Germany, with industrial sugars becoming the first product available to the market.
The step marks the transition from commissioning to early commercial operation at the site.
Leuna is the largest industrial-scale biorefinery investment for wood-based biochemicals in Europe. Earlier in 2025, the facility began operating its hydrothermal wood processing line at industrial scale. It has now reached stable separation of lignin and sugars, a prerequisite for converting these streams into higher-value bio-based materials.
The separation process enables the downstream production of renewable glycols and lignin-based functional fillers. Wood-based glycols are intended for use in applications such as PET packaging, polyester textiles, and cosmetics, while lignin-based fillers are positioned as renewable alternatives to carbon black and silica in rubber and plastic products.
UPM says interest from consumer brands and industrial customers is driven by demand for materials that offer measurable CO₂ reductions compared with fossil-based inputs, as well as existing recycled or renewable options. The company sees Leuna as a way to supply these markets at commercial scale using sustainably sourced hardwood.
Additional products from the biorefinery are expected to reach the market in the first half of 2026. Once fully operational, the Leuna facility is designed to produce 220,000 tonnes of advanced biochemicals per year.
Beyond the initial product launch, Leuna is a central element of UPM’s strategy to expand its presence in bio-based chemicals. The project supports the company’s efforts to diversify its portfolio while aligning with European objectives related to decarbonization and industrial competitiveness.
With commercial production now underway, Leuna shifts from a development project to an operating asset, laying the groundwork for further market entry across multiple end-use sectors.
UPM Biochemicals develops wood-based biochemicals designed to replace fossil-based raw materials across a wide range of industrial applications. Its portfolio includes renewable glycols and lignin-based functional fillers used in packaging, textiles, plastics, cosmetics, and chemical products. The business is building an industrial-scale biorefinery in Leuna, Germany, to support the commercial production of next-generation bio-based chemicals.
Source: UPM
