UPM announced it has started the production and commercialization of industrial sugars at its Leuna biorefinery in Germany.

This marks the first commercial output from the facility, which is Europe's largest industrial-scale investment in biochemicals.

After successfully starting up the hydrothermal breakdown of wood on industrial scale earlier this year, the biorefinery has now reached stable operation in separating lignin and sugars. This critical process step is a prerequisite for the conversion of sugars to renewable glycols and lignin to renewable functional fillers.

“Leuna is significant proof of UPM’s commitment to scaling up innovative, high-performance bio-based material solutions. Our biochemical innovations enable us to enter new markets, create long-term value and reinforce our position as a leader in next-generation, sustainable materials. Reaching this milestone is a major step towards full operations at Leuna, which is the world’s first commercial-scale biorefinery turning wood into bio-based chemicals,” says Massimo Reynaudo, President and CEO of UPM.

Consumer brands are interested in renewable materials that offer significant CO2 saving potential compared to fossil products and existing recycled or renewable alternatives. Glycols can be used, for example, in PET packaging, polyester textiles, and cosmetics, while lignin-based renewable functional fillers offer a sustainable replacement for carbon black and silica in rubber and plastic applications.

Once fully operational, the €1.275 billion facility will produce 220,000 tonnes annually of advanced biochemicals derived from sustainably sourced hardwood. The site has already received triple sustainability certifications (ISCC PLUS, PEFC, and FSC).

The Leuna biorefinery plays a key role in enabling the transition from fossil-based to renewable materials across multiple industries. UPM’s broader strategy aligns with the EU’s ambitions for decarbonization and industrial competitiveness, positioning bio-based innovation as a growth engine for Europe.