UPM has taken another step in its decarbonisation strategy with a new Power Purchase Agreement (PPA) for wind energy in Germany.
The agreement, signed in early 2024, secures up to 430 GWh of fossil-free electricity annually for UPM’s German paper mills—matching the volume of a similar long-term PPA signed in Finland in 2022.
Unlike the Finnish contract, the German PPA is structured on a year-by-year basis, reflecting the country’s dynamic energy market. This flexibility allows UPM to respond to changing customer needs and regulatory requirements while ensuring access to renewable power at market-based pricing.
The Schongau mill is already producing UPM Book papers with 100% purchased renewable electricity from wind power, effective July 1, 2025. This switch enables zero Scope 2 emissions and cuts the carbon footprint of the UPM Book range by more than 60%. “The Schongau mill producing book papers with 100% renewable electricity is a great example of how sustainability and high-quality production go hand in hand,” said Rainer Häring, Director of Energy in Western Europe.
The investment supports UPM Communication Papers’ Climate Action Roadmap, which prioritises electrification of heat generation and replacement of fossil fuels such as natural gas. With renewable supply secured, UPM’s German mills are positioned to lower emissions while offering customers added value through reduced Scope 3 impacts.
UPM is also exploring ways to expand capacity and diversify its renewable portfolio in Germany. “Our current PPA enables CO₂-free renewable generation at market price level, with top-level sustainability compliance,” Häring said.
By scaling up wind power, UPM continues to demonstrate how industrial producers can cut emissions and meet growing sustainability demands across the supply chain.
UPM is a global forest industry company that develops renewable and recyclable products to reduce reliance on fossil-based materials. Its business areas include fibres, energy, labels, specialty papers, communication papers, and plywood. Headquartered in Helsinki, Finland, UPM employs about 16,600 people worldwide and reported sales of EUR 10.5 billion in 2024. The company is listed on Nasdaq Helsinki.
