Finland-headed forest industry major UPM has inaugurated its biorefinery in Leuna, Germany, marking the start of a new industrial platform for renewable chemicals made from wood. The biorefinery converts lignocellulosic biomass, primarily wood from sustainably managed forests and sawmill residues, into biochemicals.
With an annual capacity of 220,000 tonnes, it is the world’s largest facility of its kind. Commercial operation of the €1.37 billion investment began in January 2026, and ramp-up has progressed further.
Enzymatic hydrolysis and the production of lignin-derived specialty chemicals have reached stable operation, and UPM is ramping up sales of these products.
The Leuna Biorefinery is a transformative investment for UPM and an important milestone in our growth journey. Our high-performance renewable chemicals open new markets for UPM and new opportunities for our customers. Together with our renewable fuels, the Leuna Biorefinery forms a platform for profitable growth and shows the ambition and energy with which UPM innovates, said Massimo Reynaudo, President and CEO of UPM.
The biochemicals will be used in everyday products, from clothing and packaging to cosmetics, construction materials, and tyres. Many of these are still made from fossil-based raw materials.
Manufacturers and brands seek new ways to innovate and differentiate, and the Leuna plant offers renewable alternatives with the required performance. At the same time, global warming underscores the need for continued de-fossilization, and many consumers look for products made from renewable materials.
A bioeconomy milestone
UPM’s Leuna Biorefinery is also a milestone for Europe’s bioeconomy. It shows that renewable carbon-based solutions can move beyond pilot projects into commercial-scale manufacturing, reducing dependence on imported fossil value chains and strengthening supply security.
Europe’s competitiveness depends on creating new industries and scaling innovation. With Leuna, UPM turns Europe’s strengths in science and engineering into a new growth business, said Massimo Reynaudo.
The biorefinery uses beechwood from thinnings and sawmill residues, sourced within about 200 kilometers and unsuitable for higher-value uses such as timber or furniture.
