UPM Biochemicals and Södra accelerate the commercialisation of innovative lignin-based solutions

(UPM, Helsinki, 20 September at 10:00 EEST) – UPM Biochemicals will be among the first customers to receive kraft lignin from Södra when the forest-owner association’s plant in Mönsterås comes on stream in 2027. Södra’s new plant will be the first commercial kraft lignin production facility in Sweden and the largest of its type in the world.

UPM has been innovating with a series of products made from kraft lignin and has successfully marketed this growing portfolio of sustainable lignin solutions over the past years. UPM BioPiva™ is a range of cost-effective, non-toxic and high-purity kraft lignin products used in renewable adhesives and binders as a replacement for fossil-based chemicals. The kraft lignin-derived UPM Solargo™ plant biostimulants are ideally placed to support the agricultural sector’s commitment to reducing classical fertilizer use while increasing soil health and are proven to increase soil productivity.

The solutions above have been developed with market kraft lignin. UPM has also invested in the extraction of lignin and is innovating the use of lignin in industry applications going beyond the kraft lignin solutions. At its first-of-its-kind biorefinery in Leuna, Saxony-Anhalt, the company will produce carbon negative[1] Renewable Functional Fillers (RFF) made from the lignin contained in sustainably sourced hardwood. RFF are a major innovation for the global rubber and plastic industries as they are set to replace highly toxic, CO2 intensive carbon black and precipitated silica.

“Kraft lignin is a key raw material for UPM to provide commercially viable decarbonisation solutions to industrial and consumer markets. Applications for kraft lignin are expanding quickly and offer growing markets. We are excited that Södra takes the step to scale kraft lignin extraction from its pulp mills, and we believe that Södra is the ideal partner for UPM to support our own growth ambitions by providing high quality kraft lignin with an unquestionable sustainability footprint,” comments Winfried Schaur, Executive Vice President Technology & UPM Biorefining at UPM.

“From 2027 Södra will play a major role in the growth of kraft lignin as a renewable and sustainable substitute for fossil-based materials,” said Vice President Södra Bioproducts Johannes Bogren. “With UPM as a customer, we will be part of a value chain which can deliver climate-effective solutions for the green transition. UPM, in turn, can trust in our responsible forestry and the small carbon footprint of our pulp mills. UPM’s experience and knowledge of the sector makes it an ideal customer and we look forward to a fruitful partnership.”

Södra is able to access the forest raw material through its more than 50,000 family forester members. Its Mönsterås site features a sawmill, a competitive pulp mill, wind-power plants and its own port. Surplus energy from the pulp mill will result in a kraft lignin product with a low carbon footprint.

Södra’s kraft lignin investment at its Mönsterås site means a significant scale up of global kraft lignin capacity and is a game changer for the broad adoption of kraft lignin-based products and solutions. Södra continues to strengthen its position as a growing supplier of greener alternatives to fossil carbon-based solutions, following its completion of the world's first commercial biomethanol plant at the site in 2020.

Lignin is found in the cell walls of all plants, especially trees, and is nature’s second most common polymer after cellulose. The non-toxic biomaterial can help to significantly reduce dependency on fossil raw materials in a variety of applications. It offers the opportunity to create high-value sustainable chemicals featuring renewable content and a significantly reduced carbon footprint. Its naturally occurring strength and adhesive properties also allow highest product performance levels.

For more information on UPM’s lignin solutions visit our website.

Among other applications, kraft lignin derived UPM Solargo™ plant biostimulants has proven to increase soil health and productivity. (Picture: UPM)

For further information please contact:

Martin Ledwon, Vice President Stakeholder Relations, UPM Biorefining & Technology, martin.ledwon@upm.com

UPM, Media Relations
Mon-Fri 9:00-16:00 EET
tel. +358 40 588 3284
media@upm.com

UPM Biochemicals
UPM Biochemicals offers innovative, sustainable and competitive wood-based biochemicals for replacing fossil-based raw materials and helping to improve the environmental performance in various applications. End-use segments for renewable glycols include textiles, PET bottles, packaging, coolants, composites, pharmaceuticals, cosmetics and detergents. Lignin-based Renewable Functional Fillers (RFF) offer a sustainable alternative to carbon black and precipitated silica in a broad range of rubber and plastic applications. UPM is building an industrial scale biorefinery in Leuna, Germany to convert solid wood into next generation biochemicals. UPM Biochemicals is accelerating the transition to a circular bioeconomy – where renewable feedstocks, sustainable production and sustainable consumption are the new normal. www.upmbiochemicals.com

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UPM
We deliver renewable and responsible solutions and innovate for a future beyond fossils across six business areas: UPM Fibres, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Communication Papers and UPM Plywood. As the industry leader in responsibility, we are committed to the UN Business Ambition for 1.5°C and the science-based targets to mitigate climate change. We employ 16,500 people worldwide and our annual sales are approximately EUR 10.5 billion. Our shares are listed on Nasdaq Helsinki Ltd. UPM Biofore – Beyond fossils. www.upm.com

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Södra

Södra was founded in 1938 on the idea that we are stronger together. We are now the largest forest-owner association in Sweden, with more than 50,000 family forest owners as members. Together, the members of Södra own a world-leading industrial operation that processes forest raw material into renewable products such as pulp, timber, building systems, bioproducts and energy. About 3,400 people are employed in our forest industry and in 2023, Södra generated sales of SEK 29billion. Our products are exported all over the world and together, we are contributing to a more sustainable way of living. Rooted in the forest, we grow the future.