UPM starts environmental impact assessment for a biofuels plant in Lappeenranta, Finland

(UPM, Helsinki, 25 May 2010 at 13:00 EET) – UPM is starting an official procedure for an environmental impact assessment (EIA) for a biofuels plant in Lappeenranta, Finland. UPM is planning to build a biofuels plant at the Kaukas mill site in Lappeenranta. In the first phase the plant will serve mainly as a test and training facility.

The main end products of the biofuels plant would be second generation biodiesel, bio gasoline, kerosene and naphtha. Raw materials used would be liquid bio-based organic compounds, like fats oils and forest industry by-products. The applicability of different raw materials for the biofuels production will be tested at the biofuels plant. In addition UPM's future operating staff will be trained at the facility for the operation and management of biofuels petrochemical processes.

The facility is planned to be build in stages. In the first phase the plan is to build a 20,000 tonne test and training facility, which could also serve small scale industrial production. The natural location for this facility is UPM's Kaukas mill site, in Lappeenranta, where UPM's research centre is located. The EIA includes also an assessment of a larger scale commercial size plant that has an annual production capacity of maximum 200,000 tonnes.

UPM has submitted the EIA program to the responsible authority, the Southeast Finland Centre for Economic Development, Transport and the Environment. UPM will compile the EIA report based on the assessment program and the related statements. UPM aims to finalise the EIA process by the end of 2010.

UPM is investigating the production of various second generation biofuels. In addition to this EIA process, UPM has previously completed a more extensive environmental impact assessment for a second generation biorefinery in Kuusankoski and Rauma, Finland. A similar assessment for a biorefinery is ongoing in Strasbourg, France.

UPM has not made an investment decision to build the biofuels plant. In addition to the EIA, construction of a biofuels plant is subject to an environmental permit, construction permit and chemical permit.

For more information please contact:
Mr Petri Kukkonen, Director, UPM Biofuels, tel. +358 204 15 0336

Further information on UPM's biofuel projects is available in the Biofuels press kit.