Global leader UPM has announced a significant achievement in its journey toward sustainable materials with the startup of commercial, wood-based chemical production at its Leuna biorefinery in Germany. This facility is the largest industrial-scale investment in biochemicals in Europe, marking a major step in renewable material innovation.
Earlier 2025, UPM successfully initiated the hydrothermal breakdown of wood at scale, a crucial process for producing industrial sugars and lignin. The biorefinery has now reached stable operation in separating these components, enabling the future conversion of sugars into renewable glycols and lignin into functional fillers.
Massimo Reynaudo, President and CEO of UPM, emphasized the importance of this milestone, stating, “Leuna demonstrates UPM’s commitment to scaling high-performance bio-based solutions. Our innovations allow us to access new markets, create long-term value, and reinforce our leadership in sustainable materials. This marks a major step toward full operations, making Leuna the world’s first commercial-scale biorefinery turning wood into bio-based chemicals.”
The renewable chemicals produced are highly appealing to consumer brands seeking CO2 savings compared to traditional fossil-based products. Glycols are used in PET packaging, textiles, and cosmetics, while lignin-based fillers serve as sustainable replacements for carbon black and silica in rubber and plastics.
UPM expects to introduce additional commercial products from Leuna in the first half of 2026. Once fully operational, the facility will produce 220,000 tonnes annually of biochemicals from sustainably sourced hardwood, supporting Europe’s transition to renewable materials and decarbonization efforts across multiple industries.
