UPM Biofuels
UPM Biofuels, a business unit of UPM-Kymmene Oyj, produces advanced renewable diesel and naphtha from crude tall oil at the world's first commercial wood-based biorefinery in Lappeenranta, Finland, supplying transport and petrochemical customers across Europe.
- Company typePrivate
- Founded2006
- HeadquartersHelsinki, Finland
- Headcount—
- GTM typeB2B
- OfferingHardware or Manufacturing
What UPM Biofuels does
UPM Biofuels is a Finnish business unit of UPM-Kymmene Oyj (Nasdaq Helsinki: UPM) that produces advanced renewable diesel (UPM BioVerno diesel) and renewable naphtha (UPM BioVerno naphtha) from crude tall oil, a residue of pulp production. Manufacturing is centered at the UPM Lappeenranta Biorefinery in Finland—the world's first commercial-scale wood-based biorefinery—with a capacity of 130,000 tonnes of biofuels per year, following a €179 million investment. The proprietary hydrogenation process produces drop-in fuels and chemical feedstocks that are chemically identical to their fossil counterparts, suitable for use at up to 100% concentration in existing engines and chemical plants without blending limits or infrastructure changes.
The business operates a sales-led, B2B go-to-market model. Renewable diesel is distributed through existing EU and Scandinavian fuel distribution networks, while renewable naphtha is sold directly to petrochemical processors and converters—including SABIC, Dow, DSM, INOVYN, UPM Raflatac, Elopak, Tarkett, and LUMENE—who embed the feedstock into certified renewable end-products such as bio-based polypropylene, Dyneema fiber, BIOVYN PVC, and Forest Film labels. Pricing is quote-based and not publicly disclosed; revenue is generated through transaction-volume sales of two core chemical streams plus ancillary biocomposite brands (UPM Formi EcoAce).
The company is a niche revenue contributor within a €10.2B-revenue forest-industry parent and is pursuing capacity expansion through a planned Rotterdam (Maasvlakte 2) facility targeting up to 500,000 tonnes of renewable transport fuel annually. Customer concentration is diversified across transport, marine, packaging, cosmetics, textiles, construction, and labeling verticals, with no single downstream partner dominating the disclosed case-study set. Certifications (ISCC EU, ISCC PLUS, ISO 14001, RSB, REACH, EcoVadis Platinum) and EU regulatory classification under RED constitute the principal regulatory and commercial gating assets.
UPM Biofuels firmographics
Firmographics- Name
- UPM Biofuels
- Legal name
- UPM-Kymmene Oyj
- Website
- https://upmbiofuels.com
- Company type
- Private
- Founded year
- 2006
- Operating status
- Operating
- Short description
- UPM Biofuels, a business unit of UPM-Kymmene Oyj, produces advanced renewable diesel and naphtha from crude tall oil at the world's first commercial wood-based biorefinery in Lappeenranta, Finland, supplying transport and petrochemical customers across Europe.
- Ownership category
- akta.pro rank
UPM Biofuels industry classification
Industry- Product category
- Renewable Biofuels
- NAICS
- Fats and Oils Refining and Blending (311225), Petroleum Refineries (324110), Cyclic Crude, Intermediate, and Gum and Wood Chemical Manufacturing (325194)
- SIC
- Fats & Oils (2070), Forestry (800)
- akta.pro primary industry
- Renewable Diesel (HVO/HEFA) Production (EUAAAHAD)
- akta.pro secondary industries
- Biofuel Upgrading, Hydrotreating & Refining (Co-processing, Isomerization) (EUAAAHAG), Cellulosic Biofuels & Renewable Fuels (2G ethanol, SAF intermediates) (IMAMALAA), Bio-based Platform & Commodity Chemicals (e.g., bio-ethylene, bio-propylene, bio-BTX, bio-methanol) (EUAAAIAA), Alternative Low-Carbon Marine Fuels Bunkering (Methanol, Biofuels, Ammonia, Hydrogen) (TLAHAKAC)
Keywords
Where UPM Biofuels is headquartered
LocationHeadquarters
- HQ city
- Helsinki
- HQ country
- Finland
- HQ region
- Europe
Offices2 records
Markets served
UPM Biofuels business model
Business model- GTM type
- B2B
- Offering type
- Hardware or Manufacturing
- Cost components
- Supply Chain, Operations, Personnel, Infrastructure, Technology or R&D, Marketing or Sales
Revenue model
- Renewable Diesel Sales: Sale of UPM BioVerno renewable diesel for transport applications. Can be used as drop-in solution in all diesel engines up to 100% concentration.
- Renewable Naphtha Sales: Sale of UPM BioVerno naphtha for both fuel applications (bio-component in gasoline) and petrochemical industry (raw material for bio-plastics, adhesives, label materials).
Go-to-market motion1 record
Distribution channels3 records
Marketing channels6 records
UPM Biofuels product offering
Product offeringCore offering
UPM Biofuels produces UPM BioVerno renewable diesel and UPM BioVerno naphtha from crude tall oil, a residue of forest industry pulp production, at the UPM Lappeenranta Biorefinery in Finland. The products are drop-in alternatives to fossil diesel and petrochemical feedstocks, serving the transport, marine, and chemicals industries across the EU and Scandinavia.
Product overview
UPM Biofuels offers a portfolio of advanced biofuels and renewable chemical feedstocks produced from wood-based residues. The core products are UPM BioVerno diesel and UPM BioVerno naphtha, both manufactured from crude tall oil—a residue of pulp production—at the UPM Lappeenranta Biorefinery in Finland. These drop-in solutions replace fossil raw materials in transportation fuels and petrochemical applications without requiring changes to existing infrastructure or processes. UPM BioVerno diesel serves all diesel engine applications, while UPM BioVerno naphtha functions as a versatile feedstock for the chemical industry including plastics, adhesives, and packaging materials.
Differentiator
Problem solved
Functional benefit
Brands
- UPM BioVerno Diesel: Advanced renewable diesel fuel made from crude tall oil, suitable for all diesel engines, with over 80% lower greenhouse gas emissions compared to fossil diesel
- UPM BioVerno Naphtha
- UPM Formi EcoAce
- UPM Forest Film
Products and services
- UPM BioVerno Diesel Advanced renewable diesel fuel made from crude tall oil, a residue of pulp production. Drop-in solution that works in all diesel engines with no blending limits, reducing greenhouse gas emissions by over 80% compared to fossil diesel. Sold to transport fuel distributors, fleet operators, and marine fuel customers across the EU and Scandinavia.
- UPM BioVerno Naphtha for Fuels Renewable naphtha produced from tall oil (pulp production residue), serving as a bio-component for gasoline and a versatile replacement for fossil raw materials in fuel applications. Sold to fuel blenders and gasoline producers.
- UPM BioVerno Naphtha for Chemicals Sustainable drop-in replacement for fossil raw materials in chemical production. Chemically pure hydrocarbon that is colorless, sulfur-free, and paraffinic. Used in plastics, adhesives, label materials, and packaging. Sold to chemical companies and plastics manufacturers.
Quantifiable outcome
- Over 80% lower greenhouse gas emissions compared to fossil diesel
- +3 more outcomes
Companies that use UPM Biofuels
Customer profileNamed customers12 records
Segments3 records
Ideal customer profiles3 records
UPM Biofuels technology and API
TechnologyTechnology focussed No
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Feature3 records
UPM Biofuels partnerships and signals
Strategic signalPartnerships
13 partnerships are on record, tiered core and minor.
- LUMENEcoreLUMENE launched biobased packaging for skincare products with both jar and label made from UPM BioVerno naphtha processed by SABIC. Reduces fossil-based plastics by over 60 tons per year.
- MysodacoreCollaboration to create sparkling water makers made from UPM Formi EcoAce biocomposite, derived from UPM BioVerno naphtha and wood fibers. Products sold in Finland and across Europe.
- INOVYNcoreINOVYN produces BIOVYN - world's first commercially available bio-based PVC - using UPM BioVerno naphtha. Used for clothing (FarmerRain), gloves (Jokasafe), and carpets (Pappelina). RSB certified.
- TarkettcoreTarkett produces iQ Natural flooring using bio-based PVC from UPM BioVerno naphtha through INOVYN in Sweden. World's first bio-based vinyl flooring.
- DSMcoreRoyal DSM partnered with UPM Biofuels and SABIC to create bio-based Dyneema fiber. UPM BioVerno naphtha is processed by SABIC into renewable ethylene, then used by DSM to produce bio-based Dyneema fiber with reduced environmental impact using mass balance approach. ISCC Plus certified.
- SABICcoreSABIC processes UPM BioVerno naphtha into certified renewable polypropylene through their TRUCIRCLE portfolio. Partnership enables production of renewable plastics for packaging, cosmetics, and other applications.
- ElopakcoreElopak produces wood-based bioplastic cartons for Arla using UPM BioVerno naphtha. Partnership creates 100% wood-based packaging solution with 20% lower carbon footprint.
- GoodFuels MarineminorDutch sustainable biofuel leader GoodFuels Marine tested UPM BioVerno wood-based renewable diesel on vessels for Marker Wadden nature restoration project.
- BoskalisminorLeading dredging company tested UPM BioVerno marine biofuel on vessels working on Marker Wadden nature restoration project in Netherlands.
- UPM RaflataccoreForest Film - world's first wood-based film label material - developed using UPM BioVerno naphtha. Partnership enables sustainable labeling solutions for various industries.
- Leaders of Sustainable Biofuels (LSB)minorUPM is a founding member of Leaders of Sustainable Biofuels, established in 2012. Coalition brings together European advanced biofuel producers and technology developers from 9 countries to promote second-generation biofuels in Europe.
- BiofrontiersminorEnvironmental NGOs, experts, and advanced biofuel industry coalition working to shape European fuel policy. Includes ICCT, European Climate Foundation, and UPM working on sustainability criteria for advanced biofuels.
- DowcorePartnership with Dow Chemical for renewable packaging solutions. Dow processes UPM BioVerno naphtha into certified renewable polypropylene for packaging applications including Arla cartons.
Scale indicators6 records
Recent moves7 records
Expansion highlights5 records
UPM Biofuels competitors and assessment
Company assessmentBroad incumbents
- TotalEnergies (Biofuels division): Major integrated oil major with renewable diesel and SAF production across La Mède (France) and other European sites. Competes with UPM Biofuels in road diesel and petrochemical feedstock markets as part of a much broader energy portfolio.
- Shell (Renewable products): Integrated energy major producing renewable diesel and SAF at facilities such as Rotterdam. Operates at overlapping geographies and customer segments with UPM Biofuels, particularly in EU fuel distribution.
Direct peers
- Neste: Finland-based global leader in renewable diesel (Neste MY) and sustainable aviation fuel produced from waste and residues. Most direct competitor to UPM BioVerno in advanced renewable diesel, with significantly larger capacity and broader feedstock base.
- Preem: Sweden's largest fuel company, operating renewable diesel/HVO capacity at Lysekil refinery using tall-oil-derived feedstocks. Direct regional peer competing for Nordic advanced biofuel demand alongside UPM.
- St1: Finnish renewable fuel producer with advanced biorefinery operations producing renewable diesel and ethanol. Domestic Finnish peer to UPM Biofuels with overlapping Nordic/Baltic customer base and similar drop-in product positioning.
Others
- SABIC: Partner and downstream customer; processes UPM BioVerno naphtha into renewable PP/PE via TRUCIRCLE. Also a competitor at the petrochemical feedstock level, with its own bio-based polymer programs using alternative renewable feedstocks.
- INOVYN (INEOS): Downstream partner producing BIOVYN bio-PVC from UPM BioVerno naphtha. Part of INEOS group, which is itself exploring renewable feedstocks for PVC — making it both customer and potential future competitor.
- GoodFuels Marine: Dutch sustainable marine biofuel distributor and existing UPM partner. Distributes and blends advanced biofuels (including UPM BioVerno) for shipping customers, positioning it as both channel partner and indirect competitor in marine biofuels.
Emerging players
- SkyNRG: Dutch sustainable aviation fuel producer focused on HEFA and advanced SAF pathways. Competes with UPM BioVerno in advanced biofuel distribution partnerships and corporate off-take agreements in Europe.
- Sunfire: German e-fuels and Power-to-Liquids technology developer. Competes for the same future renewable transport fuel mandate pool as UPM Biofuels via a different (electrolytic) production pathway.
Market position
Strengths4 records
Weaknesses4 records
Competitive moat4 records
Key risks6 records
Key highlights6 records
Customer concentration
UPM Biofuels social profiles
Digital presenceUPM Biofuels compliance and trust
Trust signalCompliance5 records
UPM Biofuels financial estimates
Financial estimateRevenue estimate
Valuation estimate
UPM Biofuels leadership team
Management profileNumber of profiles
Profiles8 records
UPM Biofuels funding detail
Funding detailFunding overview
Funding rounds
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
UPM Biofuels M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about UPM Biofuels
What does UPM Biofuels do?
UPM Biofuels produces UPM BioVerno renewable diesel and UPM BioVerno naphtha from crude tall oil, a residue of forest industry pulp production, at the UPM Lappeenranta Biorefinery in Finland. The products are drop-in alternatives to fossil diesel and petrochemical feedstocks, serving the transport, marine, and chemicals industries across the EU and Scandinavia.
Is UPM Biofuels a public or private company?
UPM Biofuels is a private company. It is classified as corporate owned and is currently operating.
When was UPM Biofuels founded?
UPM Biofuels was founded in 2006.
Where is UPM Biofuels based?
UPM Biofuels is headquartered in Helsinki, Finland, in the Europe region.
How does UPM Biofuels make money?
Two revenue lines are on record. Renewable Diesel Sales are the primary driver. The others are renewable Naphtha Sales.
Who are UPM Biofuels's main competitors?
Broad incumbents on record are TotalEnergies (Biofuels division) and Shell (Renewable products). Direct peers are Neste, Preem and St1. Others are SABIC, INOVYN (INEOS) and GoodFuels Marine. Emerging players are SkyNRG and Sunfire.
Does UPM Biofuels have an API?
No public API is recorded for UPM Biofuels.
What industry is UPM Biofuels in?
UPM Biofuels's product category is Renewable Biofuels. Its primary akta.pro industry code is EUAAAHAD, Renewable Diesel (HVO/HEFA) Production, with a secondary code of EUAAAHAG, Biofuel Upgrading, Hydrotreating & Refining (Co-processing, Isomerization). Its NAICS code is 311225 and its SIC code is 2070.