2026-10-16
- UPM held the inauguration of its Leuna biorefinery in Germany on 15 October 2026, and it is reported that UPM describes the 220,000 tonnes per year facility as among the largest of its kind in the world.
- According to the company, total investment was EUR 1.37 billion, and the feedstock is beechwood thinnings and sawmill residues from sustainably managed forests, sourced within a radius of about 200 km.
- The core technology is enzymatic hydrolysis, which is reported to separate woody biomass into industrial sugars and lignin, from which biochemicals and lignin-based specialty chemicals are made.
- It is reported that enzymatic hydrolysis and lignin-based specialty chemical production have reached stable operation, and UPM is expanding sales of these products.
- Applications cited include clothing, packaging, cosmetics, construction materials and tires, and CEO Massimo Reynaudo called the project a “transformative investment”.
UPM inaugurated its Leuna biorefinery in Germany on 15 October 2026, according to trade press reports. The facility converts wood into industrial sugars and lignin and then into biochemicals and specialty chemicals, making it a wood-based biochemicals plant. Annual capacity is 220,000 tonnes, and it is reported that UPM describes the plant as one of the largest facilities of its kind in the world. For a European chemical industry that has long relied on fossil feedstocks, the opening of a commercial-scale process that starts from forest resources has drawn attention. The sections below summarize the disclosed project details, scale, history, background and points to watch.
The Leuna biorefinery is located at the Leuna chemical site in Saxony-Anhalt, Germany. The site is reported to have more than 100 years of history as a chemical location. In its 2020 announcement of the construction start, UPM described the project as an important milestone in its strategic transformation, according to the company.
The feedstock is wood from sustainably managed forests together with sawmill residues. Specifically, the plant uses beechwood from thinnings and sawmill residues, material that is reported to be unsuitable for higher-value uses such as timber or furniture. The raw material is sourced within a radius of about 200 km. In the 2020 materials, UPM said the beechwood is sourced regionally in Germany and that other raw materials and services are also sourced locally.
The heart of the process is enzymatic hydrolysis. Enzymatic hydrolysis uses enzymes to break down the cellulose in woody biomass into sugars, and in this process the wood is separated into industrial sugars and lignin, it is reported. The industrial sugars serve as the starting material for biochemicals, while the lignin becomes the raw material for specialty chemicals. The products are broadly divided into biochemicals and lignin-based specialty chemicals.
In its 2020 release, UPM stated that the plant would produce bio-monoethylene glycol (BioMEG, a chemical used as a raw material for PET (polyethylene terephthalate, a common polyester plastic) and textiles), bio-monopropylene glycol (BioMPG), industrial sugars and lignin-based renewable functional fillers. BioMEG was described as being used in textiles, plastics, packaging and industrial coolants, and BioMPG in composites, pharmaceuticals and cosmetics. The lignin-based fillers were presented as an alternative to carbon black and silica in rubber applications such as tires and seals. In the latest report, end uses cited are clothing, packaging, cosmetics, construction materials and tires.
On operating status, it is reported that enzymatic hydrolysis and lignin-based specialty chemical production have reached stable operation and that UPM is ramping up sales of these products.
Numbers
The main disclosed figures are as follows.
- Annual capacity: 220,000 tonnes. It is reported that UPM describes this as among the largest facilities of its kind in the world.
- Total investment: EUR 1.37 billion.
- Feedstock sourcing radius: within about 200 km.
- Feedstock: beechwood thinnings and sawmill residues from sustainably managed forests.
- Core process: enzymatic hydrolysis (separation into industrial sugars and lignin).
- Main applications: clothing, packaging, cosmetics, construction materials and tires.
A capacity of 220,000 tonnes per year is significant because it indicates commercial-scale production of wood-based biochemicals rather than a pilot or demonstration unit. UPM’s 2020 materials also cited a combined annual capacity of 220,000 tonnes for BioMEG and lignin-based fillers, according to the company.
Timeline
- 2020-10-07 — UPM celebrated the construction start of its biochemicals facility in Leuna, Germany.
- 2026-10-15 — UPM held the inauguration of the Leuna biorefinery.
Note
- Enzymatic hydrolysis: a process that uses enzymes as catalysts to break down the cellulose in biomass such as wood into sugar components. It is known to proceed under comparatively mild conditions, unlike high-temperature, high-pressure chemical decomposition.
- Lignin: one of the components of wood cell walls that, together with cellulose, makes plant tissue rigid. Separated lignin is used as a raw material for specialty chemical materials such as fillers for rubber.