UPM is set to build a 100,000 t biofuel refinery at its Finnish Kaukas site in Lappeenranta. According to UPM, this will be the first biorefinery in the world producing biodiesel from crude tall oil on an industrial-scale. Construction work is said to begin in summer 2012 and is scheduled for completion in 2014. The total investment value amounts to €150m.
The Lappeenranta refinery will produce biodiesel for transport use, says UPM. The significant part of raw materials supply is guaranteed by UPM’s pulp mills in Finland. Tall oil is a by-product of wood pulp used in pulping process, which means no additional harvesting is needed for biofuel production, stresses the company.
UPM eyes another biorefinery to be erected either at Rauma in Finland or at the Stracel site in France. Here, energy wood is to be processed to biofuels.