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 BiofuelsLignofuels 2017, Helsinki01.02.2017
Wood-based biofuels pave the way for successful bioeconomy
UPM BIOREFINING
UPM ENERGY
UPM RAFLATAC
UPM SPECIALTY PAPERS
UPM PAPER ENA
UPM PLYWOOD
UPM BIOCOMPOSITESUPM BIOCHEMICALS
UPM today
Wood is a unique and excellent raw material for mitigation of global challenges
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SUSTAINABLE
VERSATILE
RENEWABLE NON-FOOD
NON-GMORECYCLABLE COMPETITIVE
LOW MARKET VOLATILITY
Wood raw material is the basis of many different businesses at UPM
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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
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• 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
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
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“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
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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
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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
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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
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2%
UPM BioVerno – Renewable diesel
RENEWABLE FEEDSTOCK
100%CO2 EMISSIONS(VS. FOSSIL FUEL)
-80%
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IN FOOD CHAIN
0%
OXYGEN FREEHYDROCARBON
100%
UPM Lappeenranta biorefinery – all streams add value
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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
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Access, management and sourcing of biomass
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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?
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• 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
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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