Renewable materials: driving the bioeconomy forward

As expectations around sustainability rise, industries are transforming the way they source, produce, and innovate. Against this backdrop, UPM is taking a central position in the emerging bioeconomy with its new state-of-the-art Leuna biorefinery. The facility is the first in the world to manufacture a portfolio of renewable, wood-based materials and bio-based chemicals at industrial scale – helping reduce reliance on fossil based raw materials, and accelerating the shift toward a more circular economy.

A rapidly expanding global bioeconomy

Demand for renewable and bio‑based materials is accelerating as governments, brands, and consumers seek solutions that reduce carbon emissions and support circularity. Bio‑based chemicals complement recycling by addressing the parts of product lifecycles where recycling alone cannot deliver true circularity. Designing products with both renewable inputs and recyclability in mind opens new avenues for innovation and competitiveness across industries.

The market reflects this momentum. According to a study by Spherical Insights, the value of the bio‑based chemicals and biochemicals sector in 2023 reached USD 72.6 billion, and it is expected to approach USD 198 billion by 2033. As UPM broadens its decarbonization and renewable, bio-based materials portfolio, this growing sector presents significant strategic opportunities.

The future of renewable materials and bio‑based chemicals is already taking shape

UPM’s new Leuna biorefinery in Germany signals a major step forward for Europe’s bioeconomy. Representing one of the largest bio-based investments in Europe – with a total CAPEX estimate of EUR 1.3 billion – the biorefinery is designed to produce approximately 220,000 tonnes of advanced, renewable chemicals annually. All raw materials are sourced from sustainably managed hardwood forests.

“Leuna is a truly groundbreaking investment and a front‑runner project,” explains Harald Dialer, Executive Vice President, UPM Innovation & Next Generation Renewables in a documentary by the Global Sustainable Trade Initiative. “We use first-of-its-kind technologies to transform woody biomass into renewable chemicals and materials. In essence, we dissect wood at the molecular level and reassemble those molecules into high‑value products that can replace fossil-based alternatives.”

Renewable materials produced at Leuna include:

UPM BioMEG and BioMPG – renewable glycols ideal for PET packaging, textiles, cosmetics, and industrial applications.
UPM’s lignin‑based Renewable Functional Filler (RFF) – a low‑carbon alternative to CO₂-intensive carbon black and silica used in rubber and plastics.

These materials offer brands and manufacturers new opportunities to reduce CO₂ emissions, enhance product sustainability, and innovate with renewable alternatives.

UPM Leuna Biorefinery and its renewable materials at a glance

Location: Leuna, Germany
Total investment: EUR 1.3 billion
Production capacity: 220,000 tonnes per year
Raw material: Sustainably managed hardwood forests
Renewable materials produced: UPM BioMEG, UPM BioMPG, UPM RFF (Renewable Functional Filler)
Applications: PET packaging, textiles, cosmetics, rubber, plastics, automotive

Leuna biorefinery website

Unlocking the full potential of renewable materials

Leuna represents more than a technological achievement for UPM – it is a milestone for the global bioeconomy and the future of renewable materials. The chemicals produced at the biorefinery offer viable, scalable replacements to fossil‑based substances in a wide range of everyday products, from packaging and clothing to automotive and consumer goods.

By bringing advanced wood‑based biochemicals and renewable materials to market, UPM is helping reshape the chemical industry and accelerating its own transformation toward a more sustainable, circular future.

Frequently Asked Questions (FAQ)

What is the bioeconomy and why is it important?

The bioeconomy refers to economic activity that uses renewable biological resources – such as wood, biomass, and agricultural materials – to produce sustainable products, chemicals, and energy. It reduces dependence on fossil resources, supports climate goals, and enables circular product lifecycles.

What makes the UPM Leuna biorefinery unique?

Leuna is the first industrial-scale biorefinery to produce wood‑based biochemicals using breakthrough technology. It operates with certified raw materials and brings renewable alternatives into markets traditionally dominated by fossil‑based chemicals.

What renewable materials does UPM produce at the Leuna biorefinery?

These renewable materials include BioMEG, BioMPG, and lignin-based Renewable Functional Filler (RFF). They can be used in PET bottles, textiles, cosmetics, rubber, and plastics, offering lower-carbon alternatives to traditional ingredients.

How do wood‑based biochemicals contribute to sustainability?

Wood‑based biochemicals have a smaller carbon footprint compared to fossil-based chemicals. They are derived from sustainably managed forests, support circular design, and help reduce emissions in end-use products.

Which industries can benefit from UPM’s renewable materials?

Sectors such as packaging, automotive, textiles, consumer goods, electronics, and construction can integrate renewable materials to reduce carbon impact and meet sustainability commitments.

Story | 03/04/2026 10:18:16 | 6 min

Unblocking circularity in textiles – bio-based synthetic fibers are the missing link in ESPR

Story | 11/03/2025 09:18:55 | 2 min

Revolutionizing the tire industry with renewable functional fillers

Story | 01/23/2025 14:13:33 | 10 min