UPM has announced a key milestone in the start-up of commercial, wood-based chemicals production at its Leuna biorefinery in Germany. The facility, described as the largest industrial-scale investment in biochemicals in Europe, has started the production and commercialization of industrial sugars. This is the first product line emerging from an installation designed to convert wood feedstock into advanced chemical raw materials intended, among others, for the packaging sector and plastics processing.
After previously starting up the hydrothermal breakdown of wood at industrial scale, the biorefinery has reached stable operation in separating lignin and sugars. This stage is essential, as it forms the basis for further chemical conversion processes in which the industrial sugar fraction will serve as a feedstock for renewable glycols, and lignin will be used to produce renewable functional fillers. This enables the preparation of feedstock streams that can be directed to various applications along the plastics and rubber value chain, replacing conventional fossil-based raw materials. UPM emphasizes that the achieved level of stable operation is an important step towards full utilization of the plant, which in its target configuration is to process hardwood from certified sources and supply the market with a wide range of biochemicals.
Stable separation of lignin and sugars as a prerequisite for further conversion
As part of the development of the Leuna biorefinery, UPM has implemented hydrothermal wood breakdown at industrial scale, which allows the disruption of the lignocellulosic structure and the production of a mixture containing lignin and sugar fractions. The company reports that the facility has now reached stable operating parameters in the process of separating lignin from sugars. From a technical point of view, this is a stage that conditions subsequent chemical conversion processes, in which industrial sugars will become a substrate for the synthesis of renewable glycols and lignin a raw material for the production of renewable functional fillers.
UPM President and CEO Massimo Reynaudo points to the importance of the Leuna project in the company’s strategy for biobased materials development.
"Leuna is significant proof of UPM’s commitment to scaling up innovative, high-performance bio-based material solutions. Our biochemical innovations enable us to enter new markets, create long-term value and reinforce our position as a leader in next-generation, sustainable materials. Reaching this milestone is a major step towards full operations at Leuna, which is the world’s first commercial-scale biorefinery turning wood into bio-based chemicals."
Applications of glycols and lignin in the plastics value chain
UPM notes that consumer brands are looking for renewable raw materials that offer significant CO2 reduction potential compared to fossil-based products and to existing recycled or renewable alternatives. Against this background, glycols produced from industrial sugars can be used, for example, in the production of polyethylene terephthalate packaging, polyester textiles and cosmetic formulations.
From the perspective of the plastics and rubber sectors, lignin-based renewable functional fillers are of particular relevance. They are intended to provide an alternative to carbon black and silica in rubber applications and in polymer materials. Replacing traditional fossil-based fillers with lignin-based components opens the way to reducing the carbon footprint of plastic products and to increasing the share of renewable raw materials in material formulations.
Planned production scale and market outlook
UPM expects to introduce further commercial products from the Leuna biorefinery to the market in the first half of 2026. Once fully operational, the facility is to produce 220,000 tonnes per year of advanced biochemicals derived from sustainably sourced hardwood. The announced production scale indicates an ambition to secure a significant position in renewable material supply chains for multiple industrial sectors, including plastics, rubber products, packaging and textiles manufacturers.
The Leuna biorefinery is expected to play an important role in the shift away from fossil feedstocks towards renewable materials across different industries. In the company’s communications it is underlined that UPM’s broader strategy is aligned with the European Union’s decarbonisation and industrial competitiveness goals, and that biobased innovation is to serve as one of the growth engines for Europe’s materials industry.
