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Developed by UPM-Kymmene Corporation, the UPM Leuna Biorefinery is designed to produce renewable biochemicals from sustainably sourced hardwood, marking a significant step toward replacing fossil-based chemicals in major industries.

Plant and Capacity

• Annual Production Capacity: The biorefinery is engineered to produce 220,000 tonnes per year of advanced biochemicals. 
• Feedstock: The plant exclusively uses hardwood from certified, sustainably managed forests in Germany (FSC™/PEFC-certified). 
• Facility Layout: The Leuna site is a large, integrated complex designed for efficient wood fractionation, chemical conversion, and product recovery.

Technologies and Licensors

• Proprietary Technology: UPM developed the core process technology in-house over more than a decade. The process includes:
  • Fractionation: Breaking down wood into cellulose, hemicellulose, and lignin.
  • Biochemical Conversion: Transforming sugars into chemicals via fermentation and chemical catalysis.
  • Lignin Valorization: Converting lignin into high-value renewable functional fillers (RFF).
• Licensors: Most technology is proprietary to UPM, with some process steps potentially involving licensed or partnered solutions (details are largely undisclosed).

Products and Applications

Bio-Monoethylene Glycol (BioMEG): Polyester fibers, PET bottles, antifreeze
Bio-Monopropylene Glycol (BioMPG): Composites, pharmaceuticals, cosmetics
Renewable Functional Fillers (RFF): Tires, rubber, plastics (alternative to carbon black)
Industrial Sugars: Chemical intermediates​​​​​

• Distribution Partnerships: UPM has secured strong commercial partnerships, such as with Brenntag (for bio-MEG distribution) and Haertol (for antifreeze applications).

Project Timeline and Challenges

• Construction Start: October 2020
• Original Start-Up Target: 2022
• Delays:
  The project has faced significant delays due to the COVID-19 pandemic, supply chain disruptions, and technical challenges—especially in scaling up the sugars-to-chemicals process.
  • Current Status (June 2025): Commercial production is now expected in the second half of 2025.
  • Cost Overruns: UPM reported a €373 million impairment due to project delays and increased costs.
  • Full Ramp-Up: Expected by 2027