ADVANCED BIOFUELS PAVE THE WAY FOR SUCCESSFUL BIOECONOMY€¦ · ADVANCED BIOFUELS PAVE THE WAY FOR...
Transcript of ADVANCED BIOFUELS PAVE THE WAY FOR SUCCESSFUL BIOECONOMY€¦ · ADVANCED BIOFUELS PAVE THE WAY FOR...
UPM BIOFUELS
Sari Mannonen, UPM Biofuels
World Bio Markets 2015
ADVANCED BIOFUELS PAVE THE WAY FOR
SUCCESSFUL BIOECONOMY
UPM today
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KEY FIGURES
Turnover 2013: 10 billion €
Personnel: 21,000Shareowners: > 90,000
• Plywoodproducts
UPM Plywood
• Label materialsfor product and information labeling
UPM Raflatac
• Magazine papers in Europe and the USA
• Newsprint and fine papers in Europe
UPM Paper ENA
• Fine papers in China• Label papers
globally
UPM Paper Asia
• Hydro-, nuclear- and condensing power(incl. shares in energy companies)
• Electricity production and trading
UPM Energy
• Pulp• Plantations• Biofuels• Sawmills
UPM Biorefining
UPM Biocomposites
UPM Biochemicals
Biofuels is the spearhead project in UPM’s change
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Wood biomass is in the forefront of new bioproductsdevelopment
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Wood is preferred biomass; technologies to convert lignocellulosicfeedstock into value added products developing fast
Advantages of wood:
• Limited price volatility
• Available year-round
• Easy to transport and store
• No overlap with food-chain
Europe - Most forest-rich region
• 1.02 billion ha = 25% of global resources• Forest area expanding (annually 800.000 ha) • Only ~ 40% of increment utilized
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Biofuels for transportation
Labels and composites
Biochemicals
Biofibrils
Pulp, paper, plywood and sawn timber
Bioenergy – heat and electricity
Biofore growth opportunities –added value of wood and biomass
Sourcing and logistics of wood and biomass
UPM BioVerno
UPM Grada
Biofibrils
UPM Formi
UPM ProFi
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Responsibility is a source of competitive advantage
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Anticipating and managing risks
Code of Conduct, environmental performance,
responsible sourcing and forestry
Creating competitive advantage and long-term value
High performing people, resource efficiency, ecolabels
and certification
New business opportunities with ecodesign
Biofuels, Biochemicals, Biocomposites
Value creation with stakeholders
Dialogue, feedback and engagement
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UPM Biofuels and latestsustainability recognitions
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UPM renewed its position as the industry
leader in Dow Jones Sustainability Indexes
for 2014-2015
Award for Breakthrough Innovation in
Technology in 2013
Winner in Travelling category 2014 awarded
by European Commission
Finalist in Sustainable Innovation category in
the Leading Technology Award 2014
“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 Sustainable Biofuels
Industry platform
driving development of
advanced biofuels in
Europe
Leader Companies
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UPM and Waste-based biofuels sector
“Wasted: Europe’s Untapped Resource”
• European Climate Foundation coordinated
• Biofuels from wastes &residues offer real, over 60% carbon savings
• Calls for a policy framework allowing investment
• Phase 2: National cases
If all sustainable waste from farms, forests, households 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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UPM and WWF Finland promotesustainability of wood-based biofuels
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• May 2014
UPM and WWF Finland
signed a contract to widen co-
operation into biofuels
• October 2014
New opportunities of
bioeconomy seminar to 100
Finnish key stakeholders
• November 2014
Dialogue paper signed to
promote sustainability of
wood-based biofuels
with list of joint measures
Wood-based biofuels are among most promising alternative fuels
Long history of working together
in sustainability
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UPM Biofuels Strategy
UPM will become
a major player in
advanced biofuels
Renewable
fuels
• Drop-in fuels fully compatible
with all all diesel engines and
fuel distribution systems
• Renewable wood-based raw
materials
• Not competing with food
production
• Sustainable supply chain
• Low emission products
Wood-based raw materials
Sustainableoperations
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UPM’s journey in advanced biofuels
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2006 2008 2015
20122008
UPM published its
plans to become a
significant producer
of advanced biofuels
Development of
hydrotreatment
process started in
UPM R&D
UPM Lappeenranta
biorefinery in
commercial
production in
January
First investment
decision of 175 M€
for UPM Lappeenranta
biorefinery.
Produces renewable
diesel from tall oil.
Development of
BTL technology
ongoing at GTI
pilot plant in
Chicago, USA
2015
Sales of UPM
BioVerno diesel
starts.
Business is
expanding in stages.
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, Finland
Key facts:
• Product: Renewable diesel
• UPM investment: 175 M€
• Capacity: 100,000 tonnes/a
• UPM Patents & Applications: 200
• Commissioning: January 2015
• Employment: 200 persons
• Contributes approximately 25%
of Finland’s biofuel target (20%)
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Raw material: Crude Tall Oil (CTO) – a residue of pulp making process
LIGNIN
CELLULOSE
25%
40% 30% HEMICELLULOSE
EXTRACTIVES5%
PRIMARY
PRODUCTPulp for
paper
making
RECIDUE
STREAMCrude tall oil
2%
Crude tall oil must
be removed from the
chemical cycle to
secure pulping
process functionality
GREEN
ENERGY
50%
48%
PULPING PROCESS
Pulping process separates pulp
fibres from wood via chemical
processing
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Raw material: Crude Tall Oil (CTO)
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• Contains natural extractives of
wood
• Yield 20−50 kg CTO/t pulp
• Global production > 2 000 000 t/a
- CTO supply potential above
demand globally and increasing
- Significant share burned for
energy
- Production potential 2 600 000 t/a
Residue of pulping process
No increase in
harvesting or land use
Outside food value chain
Source: Ecofys:, Low ILUC assessment CTO, Pöyry
• UPM tapping into underutilized
lower grade CTO streams
• UPM biorefinery minor addition to
total demand, no effect on
demand-supply balance
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UPM BioVerno – Renewable drop-in diesel
RENEWABLE
RAW MATERIAL
100 %
CO2 EMISSIONS
(VS. FOSSIL FUEL)
–80 %
COMPATIBLE WITH
DIESEL VEHICLES
100 %
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UPM BioVerno - Suitable for all diesel engines
Fleet testing with 20% UPM BioVerno
renewable diesel with 4 Volkswagen
cars
• Independent testing by experienced
test drivers of Technical Research
Centre of Finland (VTT)
• Investigating fuel functionality in
engine, emissions and fuel
consumption
• Phase 2: heavy duty vehicles test
(busses)
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Summer and winter
conditions, various
distances
4 Volkswagen cars,
20 000 km/car
Functions as fossil diesel
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UPM Biofuels growth strategy
HYDROTREATMENTTall oil raw material
UPM Lappeenranta Biorefinery
THERMAL CONVERSIONSolid wood raw material
RESEARCH & DEVELOPMENTR&D activities and co-operation with
strategic partners
Entering
Business
Expanding
Business
Growth of
Business
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UPM's competitive edge in biofuels
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Competitive
Raw-material
• Part of the UPM ecosystem
• Optimise wood fractions to
right products
• Steady supply
• Outside food value chain
• No indirect land-use change
• Meets sustainability criteria
Efficient
Process
• Technology based on UPM
and partner’s innovations &
know-how
• Efficient use of raw material
• Integrate synergies
High quality
product
• 2nd generation hydrocarbons
• Compatible with current fleet
and standards
• 80% reduction in greenhouse
gas emissions
• High energy content
• No blend wall limitations
UPM is in an excellent competitive position tointegrate processes for new bioproducts
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Access, management and sourcing of biomass
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Three areas of competence
bring UPM in the position to become the frontrunner in new biomass based innovations
Chemical
processes• Kraft pulping
• Renewable
diesel
production
Biomass
handling• Debarking
• Saw mills
• Mechanical
pulping
Bioenergy &
Infrastructure• Biomass boilers
• CHP
• Water treatment
Run sustainably large industrial processes
Processes of biomass conversion1 2 3