Renewable diesel

UPM is planning to produce high-quality advanced renewable diesel from forest energy wood. The raw material to be used in the production of UPM's renewable diesel would mainly consist of sustainably sourced energy wood: logging residues, woodchips, stumps and bark.

UPM has been developing gasification technology for renewable diesel production with Andritz/Carbona. The initial testing programme was completed in the United States as planned.


Locating a biorefinery adjacent to an existing UPM pulp or paper mill will enhance the ability to utilise wood-based raw materials efficiently and minimise the required capital investments. Energy integration will offer further benefits.

The possible locations for a biorefinery producing advanced biofuels are Rauma paper mill in the city of Rauma, Finland and Stracel paper mill site located in Strasbourg, France. The environmental impact assessment has been completed in Rauma and started in Strasbourg.


UPM's advanced renewable diesel production concept is based on non food-based raw material, energy wood and an 85% reduction of greenhouse gases.

The EU's renewable energy directive (RED) favours advanced biofuels, which are produced from lignocellulose, waste and residue-based raw materials. According to the directive, these biofuels are double counted when calculating the renewable target. Thus 5% of UPM's advanced biofuels would be regarded as 10% when counting the share of biofuels in transport.

UPM's renewable diesel is well suited for the current diesel motor technology and fuel distribution infrastructure.