EffNet Program within BIOFORE

HEIKKI ILVESPÄÄ

UPM

20.11.2013

FIBIC annual seminar 2013

Espoo Hanasaari

| © UPM 2 March 2010

2 11/26/2013

The sixth industrial revolution is bio-based

Inn

ovati

on

1. wave

Iron

Water power

Machines

Textile

Trade

2. wave

Steam engine

Railways

Steel

Cotton

3. wave

Electricity

Chemicals

Combustion

engine

6. wave

Sustainable

Bio economy

Renewable

energy

Green chemicals

Industrial ecology

Green

nanotechnology

1785 1845 1900 1950 1990 2020

4. wave

Petrochemicals

Aircrafts and

space

Electronics

5. wave

Digital web

Biotechnology

Information

technology

Source: Worldwatch Institute / State of the World

| © UPM

Resource efficiency

Renewable and recyclable products

Innovation and new businesses

Resource scarcity

Economic power shifts

Climate change

Digitalisation

Changing world, new priorities

3 | © UPM

| © UPM

Resource efficiency

Renewable and recyclable products

Innovation and new businesses

Resource scarcity

Economic power shifts

Climate change

Digitalisation

Changing world, new priorities

4 | © UPM

EffNet

focus areas

| © UPM | © UPM

How to maximize: Raw material efficiency

Energy efficiency

Water efficiency

5

| © UPM

Eco-design principle adopted in product

development

6

8 New concept development

1 Selection of low impact materials

2 Reduction of material usage

3 Optimization of production techniques

4 Optimization of distribution

systems

5 Reduction of impact during

use

6 Optimization of initial lifetime

7 Optimization of end-of-life

system

September 13, 2011

| © UPM

EffNet research themes

withing Eco-design principle

7

8 New concept development

1 Selection of low impact materials

2 Reduction of material usage

3 Optimization of production techniques

4 Optimization of distribution

systems

5 Reduction of impact during

use

6 Optimization of initial lifetime

7 Optimization of end-of-life

system

September 13, 2011

MFC

Foam

High Filler/

Less Fiber

Image based

measuring

Printability

research

| © UPM

The Economist and UPM Paper:

The Biofore Effect 1992-2012

WATER CONSUMPTION*

–35% PRODUCTION WASTE*

–90% CARBON EMISSIONS*

–90% CERTIFIED WOOD FIBRE

+100% The Economist 1992-2012 UPM Paper / Environmental footprint

*Per tonne of paper

8 EffNet supports continues improvement

And competitiveness

UPM’s electricity consumption per tonne of paper

kWh/t

UPM’s total waste to landfills

1000 t

LESS WASTE

LESS ENERGY

m3/t pulp

UPM’s process wastewater volumes

per tonne of chemical pulp

per tonne of paper

m3/t paper

LESS WATER

2020 targets per tonne of paper and pulp

Numbers show we move in the right direction!

9 | © UPM

| © UPM

• UPM retained its position in both the Dow Jones European and

World Sustainability Indices (DJSI) for 2013-2014

• The total score of UPM has gradually improved and is substantially

ahead of the average industry

• UPM was assessed as the best company in the environmental

dimension within the Paper & Forest Products sector

UPM named among the world’s sustainability

leaders

10

| © UPM

Integration of current operations and

competencies into new knowledge and

operations

Current businesses

&

competencies

New knowledge

&

new businesses

New

forest industry

Tuesday, 26 November 2013 Public 11

| © UPM

EffNet positioning:

Integration of current operations and

competencies into new knowledge and

operations

Current businesses

&

competencies

New knowledge

&

new businesses

New

forest industry

Tuesday, 26 November 2013 Public 12

MFC

Foam

High Filler/

Less Fiber

Image based

measuring

Printability

research

| © UPM

Wood raw material for many products and UPM new business opportunities

13 May 2012

Bark and branches to

bioenergy and biofuels

Fibres to pulp

Lignin

to energy and biochemicals

Extractives

to biodiesel

or biochemicals

Logs for sawn goods

and plywood

Fibres to

biofibrils

Cellulose or hemicellulose

to biochemicals

Fibres to

biocomposites

| © UPM

EffFibre foreseen potential impact areas:

New business opportunities through

UPM platform extension

BIOMASS PLATFORM EXTENSION WIDE RANGE OF BIOPRODUCTS

UPM

PLATFORM

BIOCHEMICALS

BIOFIBRILS

BIOCOMPOSITES

NEW AREAS

RENEWABLE DIESEL

TODAY’S BIOPRODUCTS

(Mostly Paper, but limited)

+ Networks!

| © UPM

Paper Challenge affects

industry development and structure

5.11.2013 16

| © UPM Internal 17

Growing UPM site in Lappeenranta Finland - Biorefinery to produce renewable diesel

| © UPM

Forest industry has a unique position in this

transformation

18 | © UPM

Low CO2

emissions

Renewable

materials

Recyclable

products

New bio-based

product alternatives

CO2 capturing

products