UPM-Kymmene - Company Announcement

EU awards NER300 technology grant for UPM’s biorefinery project in France

UPM-Kymmene Corporation       Stock exchange release                18 December
2012 at 16.00 EET 

(UPM, Helsinki, 18 December 2012) - The European Commission has awarded UPM a
grant of EUR 170 million for solid wood-based biorefinery (BTL) project in
Strasbourg, France. UPM Rauma's similar biorefinery project plan in Finland has
not received NER300-funding. 

UPM's Biofuels business resources are currently directed to the construction of
the Lappeenranta biorefinery. The company will also continue to clarify the
investment prerequisites in Strasbourg. The final assessment on the investment
will be made within 12-18 months. 

UPM's investment decision is subject to the economic operating environment and
the long-term outlook for the market price and availability of wood. Also,
amendments to biofuels' raw material-related directives that are currently
being considered by the EU will have an impact on UPM's investment decision. 

“The EU's decision is recognition for UPM's genuine knowledge in biofuels
development work. The technology in the field continues to develop strongly.
UPM Lappeenranta Biorefinery project will give us good experience also when
considering the solid wood-based biorefinery,” says Petri Kukkonen, Head of UPM
Biofuels. 

The EU's NER300 programme (New Entrants Reserve) is funded by the sale of
emission allowances to European companies. The programme is one of the key
components of the political decisions targeted at reducing Europe's carbon
footprint. UPM biofuels reduce greenhouse gas emissions considerably compared
to fossil transport fuels. 

UPM's first biorefinery project in Lappeenranta proceeds

UPM started the construction of the world's first wood-based biodiesel
producing refinery in Lappeenranta in summer 2012. UPM's Lappeenranta
biorefinery, constructed without any public funding, will produce renewable
diesel out of crude tall oil, a residue of pulp production. The process is
based on hydrotreatment and production will start in summer 2014. 

UPM's biorefinery planned for Strasbourg will produce renewable diesel from
energy wood, such as logging residue or bark. 

The main end product of both biorefineries, one using solid wood and the other
using tall oil as raw materials, is second generation wood-based renewable
diesel called UPM BioVerno. 



For further information, please contact:

Petri Kukkonen, Vice President, Biofuels, UPM, tel +358 204 150 336



UPM

UPM leads the integration of bio and forest industries into a new, sustainable
and innovation-driven future. Our products are made of renewable raw materials
and are recyclable. UPM consists of three Business Groups: Energy and pulp,
Paper, and Engineered materials. The Group employs around 23,000 people and it
has production plants in 17 countries. UPM's annual sales exceed EUR 10
billion. UPM's shares are listed on the Helsinki stock exchange. UPM - The
Biofore Company - www.upm.com 



UPM Biofuels

UPM plans to become a major player in high quality, advanced biofuels for
transport. Biofuels are an essential part of the Biofore strategy. The
innovative wood-based biofuels developed by the company and their production
technologies are part of the sustainable future. UPM's biofuels are
frontrunners in quality, usability and sustainability. They will significantly
decrease the greenhouse gas emissions compared to fossils fuels.
www.upm.com/biofuels 



UPM-Kymmene Corporation
Pirkko Harrela
Executive Vice President, Corporate Communications



UPM, Corporate Communications
Media Desk, tel. +358 40 588 3284
media@upm.com

www.upm.com

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