UPM has struck a strategic agreement with Avantium to acquire intellectual property tied to Ray Technology, a process designed to produce bio-based mono-ethylene glycol (MEG) and mono-propylene glycol (MPG) from plant-based sugars.

 

The deal covers Avantium’s patent portfolio and invention disclosures linked to the technology, and UPM stressed the transaction is not material in financial terms. Its real value, the company said, lies in strengthening its intellectual property position across the conversion of lignocellulosic biomass into bio-based glycols.

 

With the acquisition, UPM is widening its IP moat around biomass-to-glycols pathways and adding flexibility for future industrial process configurations as it scales its bio-based chemicals business. 

 

The move further reinforces UPM’s position as a pioneer in bringing lignocellulosic biomass-based chemicals to industrial scale, with production now being started up at the UPM Leuna biorefinery.

 

The agreement also highlights growing alignment between the two companies as Europe accelerates its industrial bioeconomy, where multiple technology routes are expected to scale in parallel to speed commercialization.

 

“This acquisition is a focused step that strategically expands the scope of our IP portfolio in bio-based glycols and strengthens our freedom to operate as we scale the industrial production of renewable chemicals,” said Harald Dialer, Chief Technology Officer at UPM & Executive Vice President UPM Next Generation Renewables. 

 

“Combining Avantium's Ray Technology patent estate with our own platform broadens our future process options and solidifies the premium market position we have obtained with our 100% UPM Bio PET. This transaction confirms UPM's role as a frontrunner in building a competitive European industrial bioeconomy.”