UPM Explores Commercial Scale Bio-Fuel Plant
Oct. 31, 2006 - UPM said it will strongly increase its stake in second generation bio-diesel in the next few years and intends to become a significant producer of bio-fuels.
"Investments in development of concepts and plants will be significant. The production of bio-fuel is a good fit for UPM since its core business is to add value to the wood raw material," said Jussi Pesonen, president and CEO of UPM.
UPM said it is currently in the planning stages and expects a final decision on a commercial scale bio-fuel facility within the next few years—sooner rather than later.
The proposed plant would be located adjacent to one of UPM's paper mill sites in Finland, France, Germany or UK, the company added.
"The importance of renewable fuels is increasing, and we consider this an opportunity to further utilise our existing value chain and be part of the future development," Pesonen said.
The primary raw material used in bio-diesel production will be wood-based biomass, UPM said