UPM inaugurated its €1.37 billion biorefinery in Leuna, Germany, on October 15, as key production processes reached stable operation and sales of initial wood-based products continued to ramp up.
The facility has a nameplate capacity of 220,000 tonnes per year, but its overall production ramp-up remains ongoing.
The biorefinery converts lignocellulosic biomass, primarily beechwood from forest thinnings and sawmill residues, into renewable chemicals. The wood is sourced within approximately 200 kilometres of the site and consists of material unsuitable for higher-value applications such as timber or furniture.
Production ramp-up advances
UPM confirmed that enzymatic hydrolysis and the production of lignin-derived specialty chemicals had reached stable operation. Sales of these products are also increasing as the facility progresses toward higher production volumes.
The inauguration follows the start of commercial production in December 2025, with the first customer deliveries of industrial sugars taking place during the fourth quarter. By the second quarter of 2026, UPM reported that these deliveries had reached substantial volumes.
In its half-year financial report, the company indicated that the biorefinery was expected to reach full production and positive operating earnings in 2027.
The facility's planned product portfolio includes renewable monoethylene glycol (BioMEG) and monopropylene glycol (BioMPG), intended for applications such as packaging, textiles and cosmetics. It also includes lignin-based renewable functional fillers designed to replace fossil-derived materials in tires and other rubber products.
The project represents a significant expansion of UPM's activities beyond traditional forest products into industrial biochemicals. By converting wood and sawmill residues into chemical feedstocks, the Leuna biorefinery illustrates the potential for forest-based materials to serve markets traditionally dependent on fossil-derived raw materials.
While several core processes have reached stable operation, the facility's overall production ramp-up and commercial development remain ongoing.
Headquartered in Finland, UPM is a global materials company with operations spanning pulp, communication papers, adhesive materials, plywood, energy and wood-based biochemicals. The company is expanding its activities in renewable materials and industrial solutions derived from forest-based resources.
