Uudet energialähteet ja joustava voimantuotanto
Renewable diesel from tall oil
Ville Vauhkonen UPM Biofuels R&D
UPM today
UPM Biorefining
UPM Plywood
• Plywood and
veneer
products
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Pulp
Plantations
Biofuels
Sawmills
Wood sourcing
and Forestry
UPM Paper Asia
• Fine papers in China
and Asia Pacific
• Labelling materials
globally
Sales 2014: EUR 10 billion
Personnel: 20,000
UPM Paper ENA
Shareholders: approx. 90,000
• Magazine papers
in Europe and
the USA
• Newsprint and
fine papers in Europe
UPM Raflatac
• Label materials
for product and
information labelling
UPM Energy
UPM Biocomposites
UPM Biochemicals
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• Hydro-, nuclear- and condensing power
(incl. shares in energy companies)
• Electricity production
and trading
Biofore growth opportunities –
added value of wood and biomass
Biofibrils
UPM BioVerno
Biofibrils
Biochemicals
UPM ProFi
Biofuels for transportation
Bioenergy – heat and
electricity
UPM Grada
Labels and composites
Pulp, paper, plywood and sawn timber
Sourcing and logistics of wood and biomass
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Internal
UPM Formi
Wood raw material is the basis
of many different businesses at UPM
Fibres to pulp
Bark and branches to
renewable diesel and
energy
Fibres to
biofibrils and
biocomposites
Extractives
to renewable diesel
or biochemicals
Logs for sawn goods
and plywood
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Ligning, cellulose or
hemicellulose
to biochemicals
UPM Biofuels Strategy
UPM BIOFUELS
UPM’s journey in advanced biofuels
In 2006 UPM
published its
plans to become
a significant
producer of
advanced
biofuels.
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Development
of BTL
technology
ongoing at GTI
pilot plant in
Chicago, USA
Development of
hydrotreatment
process started
in UPM R&D
In 2012, first
investment
decision of 175
MEUR for UPM
Lappeenranta
biorefinery.
Produces
renewable diesel
from tall oil.
Business is
expanding in
stages.
UPM BIOFUELS
UPM Biofuels Strategy
Renewable fuels
• Drop-in fuels fully
compatible with all vehicles
and fuel distribution systems
Wood-based raw
materials
• Renewable wood-based raw
materials not suitable for food
production
Sustainable
operations
• Sustainable supply chain
• Low emission products
UPM will become a major player in advanced biofuels
Revenue target > 1 billion €/a
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UPM BIOFUELS
UPM Biofuels growth strategy
ENTERING
BUSINESS
EXPANDING
BUSINESS
GROWTH OF
BUSINESS
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HYDROTREATMENT
Tall oil
UPM Lappeenranta Biorefinery start-up 2014
THERMAL CONVERSION
Wood raw material
Gasification (BTL) / Pyrolysis
FUTURE DEVELOPMENT
New technologies, processes and raw materials
R&D activities and co-operation with strategic partners
UPM and Biofuels have gained global
recognitions
UPM renewed its position in Dow Jones
Sustainability Indexes in 2014 - 2015
UPM recognized as one of world leaders for
corporate action on climate change on the A
list in the CDP Climate Performance
Leadership index 2014
UPM Biofuels - Award for Breakthrough
Innovation in Technology in 2013
UPM BioVerno - Winner in Travelling
category 2014 awarded by European
Commission
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Internal
UPM Lappeenranta
Biorefinery
UPM BIOFUELS – HYDROTREATED BIOFUELS
UPM invests in wood based renewable
diesel in Lappeenranta
• UPM invests in the world’s first advanced
wood based biofuels production in South
Eastern Finland, Lappeenranta
• Main product of the biorefinery is advanced,
second generation renewable diesel
• Raw material is sustainably produced crude
tall oil, which is used in a highly efficient
hydrotreatment process
• Technology is based on UPM’s innovations
and Biofore strategy inspired long-term
development work
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UPM BIOFUELS – HYDROTREATED BIOFUELS
First step in UPM’s biofuels business UPM Lappeenranta Biorefinery
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Commercial scale industrial investment
• Total investment 175 EUR
• Production 100 000 tons/a of renewable diesel
• Crude tall oil as raw material, residue of pulp making process
• Hydrotreatment as process
• Production started January 2015, Investment decision 2012
• Employs in total 200 persons (incl. indirect)
• Contributes to 25% of Finland’s biofuel target in 2020
RENEWABLE
DIESEL
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UPM BIOFUELS – HYDROTREATED BIOFUELS
Raw material: Crude Tall Oil (CTO)
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Residue of chemical pulping process
Yield 20−50 kg CTO/ton of pulp
Global production now > 1 700 000 tons/a
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Additional CTO supply potential clearly
above demand globally
Significant share burnt for energy
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Most of the raw material comes from
Finnish pulp mills
UPM Lappeenranta refinery minor addition
to total demand of crude tall oil
More efficient use of wood without
increasing logging
Utilization of low grade CTO
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Residue
No indirect land-use change
Outside food value chain
UPM renewable diesel process
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Capturing synergies by full integration into
UPM Kaukas mill site in Lappeenranta,
Finland
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RESEARCH CENTRE
3
BIOMASS POWER PLANT
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SAW MILL
2
BIOREFINERY
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PULP MILL
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PAPER MILL
2
1
3
5
4
6
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UPM BioVerno – Unique
Renewable Diesel
UPM BIOFUELS
UPM BioVerno – Renewable diesel
RENEWABLE
RAW MATERIAL
100 %
CO2 EMISSIONS
(VS. FOSSIL FUEL)
–80 %
COMPATIBLE WITH
DIESEL VEHICLES
100 %
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UPM BIOFUELS
Sustainably Produced Renewable Diesel
• Unique renewable diesel
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Drop-in hydrocarbon - comparable to fossil fuel
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Ready component for commercial blends
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No blend wall limitations
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Compatible with fossil diesel EN590 standard quality
• Tested in engines & vehicles with independent research
organizations (e.g. FEV & AVL )
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Fully compatible with current diesel engines and fuel distribution network
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Tail pipe emission benefits (e.g. NOx,PM)
Crude Tall Oil-Based Renewable Diesel as a Blending Component in Passenger
Car Diesel Engines (Heuser B. et al. SAE Int. J. Fuels Lubr. 6(3):817-825, 2013,
doi:10.4271/2013-01-2685.
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Fleet tests completed with VTT Technology
Center of Finland
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Fleet testing with 20% UPM BioVerno
renewable diesel with 4 Volkswagen cars
20.000 km/car
Spring, summer, autumn and winter
conditions
Independent testing by experienced test
drivers of Technical Research Centre of
Finland (VTT)
Investigating fuel functionality in engine,
emissions and fuel consumption
Functions as fossil diesel and reduction of
emissions
Crude Tall Oil-Based Renewable Diesel in Passenger Car
Field Test, Laurikko et al. SAE Technical Paper 2014-012774, 2014, doi:10.4271/2014-01-2774.
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BioVerno fuel launched 6.5.2015 to St1 fuel stations