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Towards CO₂-free energy

Our energy portfolio consists mainly of energy sources that do not cause fossil CO₂ emissions.

Approximately 80% of our fuel consumption at production sites is accounted for by biomass-based fuels. These fuels are primarily wood-based residues from wood handling and processing. Forest harvesting residues are also used as energy sources. Some mills produce all or part of the required energy through external or co-owned power plants. Excess energy can be sold to the grid and to local central district heating systems. Our pulp mills generate a lot of surplus energy.

We are a major energy player in Finland

We are the second largest electricity producer and the largest industrial consumer in Finland. Our dual role provides us with a unique advantage: deep expertise in managing both supply and demand, especially in today’s volatile energy market.

We balance the electricity system by adjusting our own operations, such as— reducing consumption at mills or increasing production at hydropower plants as needed. It is a smart and sustainable way to contribute to energy stability.

99 percent CO₂-free electricity

UPM Energy generates 99% CO₂-free electricity, mainly through hydropower and, nuclear power. The start of the Olkiluoto 3 nuclear power plant unit has increased our CO₂-free electricity generation by nearly 50%,

We optimize energy use with CHP technology

Most of the energy used in production comes from combined heat and power (CHP) plants at the mills. They play a key role in boosting energy efficiency and reducing emissions in paper production. CHP technology optimizes energy use and minimizes waste by producing electricity and heat from a single fuel source.

State-of-the-art facilities, like the new CHP plant at UPM Nordland and UPM Schongau, in Germany enable us to significantly cut CO₂ emissions, lower energy costs, and increase flexibility in electricity markets. The Schongau plant is the largest of its kind at a European paper mill. These investments reflect our strategy of aligning industrial efficiency with renewable energy solutions.

We collaborate with suppliers to reduce CO2 emissions

Our target is to reduce fossil CO2 emissions from materials and logistics (Scope 3) by 30% (from 2018 levels) by 2030. These emissions account for a significant share of our total Scope 3 emissions and include purchased materials, transportation and processing of sold products.

Through our “-30 by 30” program, we work closely with suppliers to cut reduce CO₂ emissions. New and existing suppliers must provide data on the carbon footprint of goods and services sold to UPM. This includes all relevant emissions from their own upstream supply chains and operations.