wood-based biofuels pave the way for successful bioeconomy€¦ · wood-based biofuels pave the way...

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1 | © UPM Sari Mannonen, Vice President, UPM Biofuels Lignofuels 2017, Helsinki 01.02.2017 Wood-based biofuels pave the way for successful bioeconomy

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1 | © UPM

Sari Mannonen, Vice President, UPM BiofuelsLignofuels 2017, Helsinki01.02.2017

Wood-based biofuels pave the way for successful bioeconomy

Rootsrun deep

UPM BIOREFINING

UPM ENERGY

UPM RAFLATAC

UPM SPECIALTY PAPERS

UPM PAPER ENA

UPM PLYWOOD

UPM BIOCOMPOSITESUPM BIOCHEMICALS

UPM today

10% of cash flowinvested in R&D

to fuel transformation

Wood is a unique and excellent raw material for mitigation of global challenges

5

SUSTAINABLE

VERSATILE

RENEWABLE NON-FOOD

NON-GMORECYCLABLE COMPETITIVE

LOW MARKET VOLATILITY

Wood raw material is the basis of many different businesses at UPM

6

Bark and branches to biofuels and energy

Fibres to pulp

Lignin to biochemicals

Extractivesto renewable dieselor biochemicals

Logs for sawn goods and plywood

Fibres to biofibrils

Cellulose or hemicellulose to biochemicals

Fibres tobiocomposites

New business opportunities for UPM

7

• Auxiliary for pharma R&D

• Industrial Applications

• Performancechemical

• New applications

• New material• End-user product

• High volume products• Economies of scale• Drop-in applications

BiofuelsBiofibrils

BiocompositesLignin

Biochemicals

BiorefineryChemicalsBiorefineryChemicals

Market entry100 kt renewable dieselRenewable naphtha

2 production sites

Opportunities in Advanced Biofuels

8 | © UPM

UPM and Waste-based biofuels sector

“Wasted: Europe’s Untapped Resource”

• Biofuels from wastes & residues offer real, over 60% carbon savings

• Every Member State (11) has more than enough resources available to meet 0.5% advanced biofuel target several times with domestic facilities

• Calls for a policy framework & Member states commitment allowing investment

If all sustainable waste from farms, forests, hous eholds and industry were used for transport fuels, by 2030

• Displaces 37 million tonnes of oil annually

• Equal to 16% of road transport fuel demand

• Up to 300,000 direct jobs across Europe

• Up to 15 billion Eur additional revenues

9 | © UPM

“Now is the time to bring advanced second-generation biofuels to the market. The industry is committed to delivering on its promise but we need stable long-term investment conditions which encourage investment while, at the same time, promoting true advanced biofuels.”

Leaders of Sus tainable Biofuels

Industry platform driving development of advanced biofuels in Europe

Leader Companies

10 | © UPM

EU targets 40% reduction in GHG emissions by 2030 to keep global warming below two degreesTargets cannot be met without significant emission cuts in transport

11

Decarbonizing European

transport requires effective use

of all energy and technology

options – Renewable drop-in

fuels a fast-lane solution

* Calculated based on ”Global EV sales outlook to 2040” by Bloomberg New Energy Finance * Assuming EV’s represent 38% of new car sales in Europe by 2040 + EV’s are fully emission free** Assuming annual energy efficiency improvement of 2% in light-duty, 0,5% in heavy-duty

Capturing synergies by full integration into UPM Kaukas mill site in Lappeenranta, Finland

RESEARCH CENTRE

BIOREFINERY

SAW MILL

PAPER MILL

BIOMASS POWER PLANT

PULP MILL

1 3

4

5

6

2

12 | © UPM

UPM Lappeenranta Biorefinery

Key facts

• Product: Renewable diesel

• UPM investment: 179 M€

• Capacity: 100,000 tonnes/a

• UPM patents and applications: 200

• Employs 250 persons (incl. indirect)

13 | © UPM 25 November 201513 | © UPM

Crude Tall Oil (CTO) – a residue of pulp making process as raw material

PRIMARY PRODUCTPulp for paper making

RECIDUE STREAMCrude tall oil

Crude tall oil must be removed from the chemical cycle to secure pulping process functionality

ENERGY

50%

48%

PULPING PROCESS

14 | © UPM

2%

UPM renewable diesel process

15 | © UPM

UPM BioVerno – Renewable diesel

RENEWABLE FEEDSTOCK

100%CO2 EMISSIONS(VS. FOSSIL FUEL)

-80%

16 | © UPM

IN FOOD CHAIN

0%

OXYGEN FREEHYDROCARBON

100%

UPM Biofuels in existing and future end-use

17

Fuel retail Dedicated green fleets Marine/Aviation

UPM Lappeenranta biorefinery – all streams add value

18 | © UPM

Renewable gasolinecomponent in road transport

Feedstock for bioplastics production or biochemical use

Renewable drop-in diesel for

road and marine use

Bio-based aroma chemical for fragrance

industry

Renewable fuelor applications inChemical industry

Reducing agent in pulp and chemical

industry

UPM BioVerno diesel

UPM BioVerno naphtha

Turpentine PitchSodium

bisulphate

Renewable wood-based chemicalsRenewable wood-based chemicals

Biorefinery processesRaw materials from UPM’s own pulp production: Crude tall oil

Large scale Biorefining requires new types of collab oration Chemical, petrochemical and forest industry can cre ate new opportunities

19 | © UPM

Access, management and sourcing of biomass

4. Lorem ipsum dolor12pt Lorem ipsum dolor sit amet, consectetur adipiscing elit. Fusce eu tincidunt ipsum

Three areas of competence are needed for new biomass based innovations

Chemicalprocesses

• Kraft pulping• Renewable

diesel production

Biomasshandling

• Debarking• Saw mills• Mechanical

pulping

Bioenergy & Infrastructure

• Biomass boilers• CHP• Water treatment

Run sustainably large industrial processes

Processes of biomass conversion1 2 3

What is driving advanced biofuels development?

20 | © UPM

• Regulation : – ILUC implementation, RED2, national

policies vs. EU policy

• Feedstock : – Sustainable availability of feedstock &

scalability– Increasing sustainability criteria– Consumer and ENGO expectations

• Technology: – Which technologies will emerge as

winners?

• Markets : – Single market for biofuels: National

markets vs. EU 27(28)-market

Overall impact of UPM Lappeenranta Biorefinery –renewable diesel plant

21 | © UPM

Raw materials fromUPM’s own pulpproduction – no additional wood harvesting

Revenues for - European Pulp mills- Forest industry value

chain

Innovations- 200 patents & applications- Breakthrough EU technology- New complementary value

chains

179 mEUR investment- Using European

Hydrotreatment technology

About 250 new jobs75-100 direct jobs, 150 indirect jobs in logistics, forestry and services

Sustainable alternatives for consumers - 80% CO2 reduction- Reduction of tail pipe emission

CO2 reduction 250.000 tons/yearEquivalent to removing 80.000 cars from European roads

Oil import reduction 100.000 tons or 120 million litres =750.000 barrels of oil not imported = 35.000.000 euro savings for EU- Valuable biochemicals produced

Breakthrough innovationCreating new complimentary

value chains

Driving cleaner trafficUPM Biofuels