UPM Biofuels

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.

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

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

• Renewable diesel fuel
• Bio-based naphtha
• Advanced biofuels
• Crude tall oil refining
• Wood-based chemicals

Headquarters

HQ city

Helsinki

HQ country

Finland

HQ region

Europe

Offices2 records

Markets served

GTM type

B2B

Offering type

Hardware or Manufacturing

Cost components

Supply Chain, Operations, Personnel, Infrastructure, Technology or R&D, Marketing or Sales

Revenue model

1. 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.
2. 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

Core 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

Named customers12 records

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

13 partnerships are on record, tiered core and minor.

• LUMENEcoreStrategic or Co-development Partner · 30 May 2023LUMENE 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.
• MysodacoreStrategic or Co-development Partner · 21 October 2020Collaboration 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.
• INOVYNcoreStrategic or Co-development Partner · 21 October 2020INOVYN 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.
• TarkettcoreStrategic or Co-development Partner · 21 October 2020Tarkett produces iQ Natural flooring using bio-based PVC from UPM BioVerno naphtha through INOVYN in Sweden. World's first bio-based vinyl flooring.
• DSMcoreStrategic or Co-development Partner · 12 March 2020Royal 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.
• SABICcoreStrategic or Co-development Partner · 12 March 2020SABIC processes UPM BioVerno naphtha into certified renewable polypropylene through their TRUCIRCLE portfolio. Partnership enables production of renewable plastics for packaging, cosmetics, and other applications.
• ElopakcoreStrategic or Co-development Partner · 5 February 2019Elopak produces wood-based bioplastic cartons for Arla using UPM BioVerno naphtha. Partnership creates 100% wood-based packaging solution with 20% lower carbon footprint.
• GoodFuels MarineminorStrategic or Co-development PartnerDutch sustainable biofuel leader GoodFuels Marine tested UPM BioVerno wood-based renewable diesel on vessels for Marker Wadden nature restoration project.
• BoskalisminorStrategic or Co-development PartnerLeading dredging company tested UPM BioVerno marine biofuel on vessels working on Marker Wadden nature restoration project in Netherlands.
• UPM RaflataccoreStrategic or Co-development PartnerForest 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)minorStrategic or Co-development PartnerUPM 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.
• BiofrontiersminorStrategic or Co-development PartnerEnvironmental 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.
• DowcoreStrategic or Co-development PartnerPartnership 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

Broad 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

• Xtwitter.com/UPM_Biofuels
• YouTubeyoutube.com/playlist?list=PLJwXrjw5FtwHDcos7UjxvktVuYXNfMkWo
• Facebookfacebook.com/UPM-Biopolttoaineet-328642547332048
• LinkedInlinkedin.com/company/upm-biofuels

Compliance5 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles8 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about UPM Biofuels