UPM unlocks new bio-based markets as Leuna biorefinery produces its first commercial product

In a landmark move for the global biochemical industry, UPM has announced the successful production of the first commercial batches at its state-of-the-art biorefinery in Leuna, Germany. This achievement marks the transition from a multi-year construction and commissioning phase to a fully operational facility capable of delivering sustainable alternatives to the chemical market.

A New Era for Renewable Chemicals

The Leuna biorefinery is the first of its kind, utilizing sustainably sourced hardwood—primarily beechwood from regional forests—to produce high-quality biochemicals. By tapping into the versatility of wood-based feedstock, UPM is providing a viable solution for industries looking to reduce their carbon footprint without sacrificing performance. The primary outputs include bio-monoethylene glycol (Bio-MEG) and renewable functional fillers, which are essential components in a vast array of consumer and industrial products.

Strategic Impact on Global Supply Chains

The launch of commercial operations is expected to have a ripple effect across several sectors. Bio-MEG is a critical ingredient in the production of polyester textiles, PET bottles, and engine coolants. Meanwhile, UPM’s bio-based functional fillers offer a sustainable alternative to carbon black and silica in the rubber and plastic industries, particularly for automotive applications like tires and seals.

By providing these “drop-in” solutions, UPM enables manufacturers to integrate renewable materials into existing production processes seamlessly. This move aligns with the broader global shift toward a circular bioeconomy, reducing the long-standing dependence on crude oil and gas.

Commitment to Sustainability

UPM’s investment in Leuna represents a core pillar of its “beyond fossils” strategy. The facility operates with a focus on local sourcing and high environmental standards, ensuring that the entire value chain—from the forest to the final chemical product—is transparent and sustainable. As the refinery scales up production, it stands as a testament to how industrial innovation can meet the urgent demands of climate change mitigation.

Source: Read more Contact Massimo Reynaudo, President and CEO of UPM