The Leuna facility will produce 220,000 tonnes of renewable chemicals a year, using wood residues and low-grade beechwood to replace fossil-based raw materials.
UPM inaugurated its biorefinery in Leuna, Germany, on 15 Oct 2026, marking the launch of an industrial-scale platform for producing renewable chemicals from wood.
With an annual capacity of 220,000 tonnes, the €1.37bn facility is the world’s largest of its kind. It converts lignocellulosic biomass, primarily beechwood from forest thinnings and sawmill residues, into renewable raw materials, including industrial sugars and lignin, through enzymatic hydrolysis.
According to UPM, the feedstock is sourced within a radius of about 200km and is unsuitable for higher-value applications such as timber and furniture.
UPM said the ramp-up had progressed, with enzymatic hydrolysis and the production of lignin-derived specialty chemicals reaching stable operation. The company is also increasing sales of these products.
“The Leuna biorefinery is a transformative investment for UPM and an important milestone in our growth journey,” said Massimo Reynaudo, president and chief executive of UPM.
“Our high-performance renewable chemicals open new markets for UPM and new opportunities for our customers. Together with our renewable fuels, the Leuna biorefinery forms a platform for profitable growth and shows the ambition and energy with which UPM innovates,” he said.
Renewable alternatives to fossil-based chemicals
The biochemicals are intended for use in a range of everyday products, including clothing, packaging, cosmetics, construction materials and tyres. Many of these products are currently made using fossil-based raw materials.
The facility aims to provide manufacturers and brands with renewable alternatives that meet their performance requirements as industries seek to reduce their reliance on fossil resources.
UPM said the project also marked a milestone for Europe’s bioeconomy, demonstrating how renewable carbon-based materials can move from pilot projects to commercial-scale production. The facility could help reduce dependence on imported fossil-based supply chains and strengthen supply security, the company added.
“Europe’s competitiveness depends on creating new industries and scaling innovation. With Leuna, UPM turns Europe’s strengths in science and engineering into a new growth business,” Reynaudo said.
All images courtesy of UPM.
