"The "Lappeenranta pine oil to BioVerno" process is based on UPM's own product development, backed by a strong IPR portfolio and partners. Our process is unique, there is no other similar process in the world," says the person who has been developing the product from the beginning. Jaakko Nousiainen.
Nousiainen has held many titles along the way, starting with CTO – he currently works in product development with the title “Director – Biomass to Biocrude.”
UPM Biofuels processes tall oil, a by-product of pulp production, into renewable biofuel at its Lappeenranta biorefinery.
The process begins with the purification of tall oil, which removes impurities.
The oil is then treated with hydrogen using catalysts, transforming its chemical structure into hydrocarbons suitable for diesel fuel and naphtha. The end product, renewable diesel, significantly reduces greenhouse gas emissions compared to fossil fuels.
Hydrocarbons from the side stream
“We utilize the pulp mill's wood-based residue stream and thus create significant added value for wood biomass.”
UPM thus offers its customers a way to reduce their carbon footprint.
“We sell our product as a reduction in greenhouse gas emissions. It is packaged in the form of hydrocarbons, which are obtained from wood raw material. As such, the molecules we produce are the same as those found in fossil fuels. The only difference is that our molecules are made from wood, fossil molecules are made from dinosaurs and oil that is millions of years old.”
According to Nousiainen, UPM's investment decision made back in 2012 is particularly indicative of how the Finnish forest company boldly set out to seek something new outside of its traditional roles, with which the degree of processing of wood raw materials could be increased.
"When you look at it from the perspective of the forest industry, it's different when a company in the industry goes into oil refining. From which we have since been able to build and scale a highly profitable business and enabler of growth for our other biomolecular businesses."
Wood is everywhere
According to Nousiainen, ideas about utilizing materials obtained from wood in fuels have been studied for decades.
“This was done, for example, during the oil crisis in the 1970s. But at that time, it was not possible to scale the operation to a commercial scale. But now we can. You can make anything out of wood.”
He points out that UPM has shown that with such a value chain, good business can be done in renewable transport fuels.
"We have been able to build an efficient commercial-scale concept. The yield from raw material to final product is quite good and we know how to run the process safely and efficiently. And we can continue to develop it further."
Another perspective is the nature of production.
“Our biorefinery is an oil refinery. Of course, it is smaller in scale than, say, fossil oil refineries, but our hydroprocessing unit, for example, can be compared to its larger cousin, the desulfurization unit of an oil refinery.”
The processes and requirements are directly comparable to those in the oil and gas industry.
“We must also be able to operate with those principles – and we do it well.”
UPM Biofuels, Lappeenranta biorefinery
– Began continuous commercial production in January 2015
– Was the world's first commercial-scale refinery producing 100% wood-based renewable biofuels.
UPM BioVerno™ renewable diesel
UPM BioVerno™ renewable naphtha
Total production capacity approximately 130,000 tons per year of biofuels (diesel and naphtha).
The products are made from wood-based crude tall oil (CTO), which is a residue from pulp production.
