Sustainable and bio-based solutions for replacement of oil-based materials.

1. Esa Laurinsilta
Director, Strategic Partnerships
May 9–11, 2014
Startup Weekend Helsinki
Sustainability and Bioeconomy
UPM – THE BIOFORE COMPANY
Novel bio-based forest products

2. | © UPM
UPM today
Sales 2013: EUR 10 billion
Personnel: 21,000
Shareholders: over 90,000
•Plywood
products
UPM Plywood
•Label materials
UPM Raflatac
•Magazine papers
in Europe and USA
•Newsprint and fine
papers in Europe
UPM Paper ENA
•Fine papers in
China and Asia
Pacific
UPM Paper Asia
•Hydro, nuclear and condensing power
•Electricity production and trading
UPM Energy
•Pulp
•Plantations
•Biofuels
•Sawmills
UPM Biorefining
UPM Biocomposites
UPM Biochemicals
May 20142

3. | © UPM3
The sixth industrial revolution
is bio-based
Innovation
1. wave
Iron
Water power
Machines
Textile
Trade
2. wave
Steam engine
Railways
Steel
Cotton
3. wave
Electricity
Chemicals
Combustion
engine
6. wave
Sustainable
Bio economy
Renewable
energy
Green chemicals
Industrial ecology
Green
nanotechnology
1785 1845 1900 1950 1990 2020
4. wave
Petrochemicals
Aircrafts and
space
Electronics
5. wave
Digital web
Biotechnology
Information
technology
Source: Worldwatch Institute / State of the WorldMay 20143

4. | © UPM
Material and energy efficiency
Renewable and
recyclable products
Innovations and new businesses
Resource scarcity
Change in
economic gravity
Climate change
Digitalisation
The world
is changing
Biofore
– growth and competitive advantage
THE FOREST OF NEW OPPORTUNITIES
4 | © UPM May 2014

5. | © UPM
Sustainable and bio-based solutions
for replacement of oil-based materials
• The sustainability of our products is important to us
- sustainability is also part of the production process
• 100% of all wood fibre sourced from sustainably managed forests
• 100% of UPM’s forests and plantations are FSC© and/or PEFC™
certified and managed according to UPM’s Biodiversity Programme
• We use eco-design and life-cycle analysis to identify opportunities to
further improve the environmental performance of our current and
future products
May 20145

6. | © UPM
Forest based biomass offers
versatile product innovation and
UPM new business opportunities
6
Bark and branches to
bioenergy and biofuels
Fibres to pulp
Lignin
to energy and biochemicals
Extractives
to biodiesel
or biochemicals
Logs for sawn goods
and plywood
Fibres to
biofibrils
Cellulose or hemicellulose
to biochemicals
Fibres to
biocomposites
May 2014

7. | © UPM
New business opportunities through
UPM platform extension
BIOMASS PLATFORM EXTENSION WIDE RANGE OF BIOPRODUCTS
UPM
PLATFORM
BIOCHEMICALS
BIOFIBRILS
BIOCOMPOSITES
NEW AREAS
RENEWABLE DIESEL
TODAY’S BIOPRODUCTS
May 20147

8. | © UPM
Biochemicals
• UPM Biochemicals add value to wood
based biomass by disintegrating
biomass into its components
ready for further processing:
– Modification of biomass components into
performance chemicals
– Conversion of biomass components into
chemical building blocks
• Mill scale concept development on-
going in Finland and Germany
May 20148

9. | © UPM
Wood components as starting
material for biochemicals
Performance
Chemicals
Lignin
Cellulose
Hemicellulose
Extractives
Chemical
Building Blocks
 Biopolymer as basic structure
 Unique performance
 Application specific products
 Intermediates to bioplastics
 One-to-one replacement of
fossil based products
Waste
Streams
Forest
Plantation
UPM Biochemicals
BIOMASS COMPONENTS PRODUCTS
May 20149

10. | © UPM
Chemical Building Blocks
• Chemical Building Blocks are cost
competitive, one-to-one replacement of
fossil based monomers and chemicals
(e.g. intermediates to bioplastics ).
• UPM development is at pre-commercial
phase and UPM is actively developing
industrial scale process alternatives with
various partners:
- e.g. UPM signed a Joint Development
Agreement with Renmatix Inc. 2013
May 201410

11. | © UPM
Performance Chemicals –
Lignin applications
• Wood contains 20-30%
lignin, a natural
biopolymer that works
as a glue
• UPM Biochemicals
utilize the natural
characteristics of lignin
and develops
e.g. lignin based
adhesives and resins
• UPM develops lignin
applications in
Lappeenranta-Finland,
Augsburg-Germany and
globally with partners
Modification
Process
Modification
Process
UPM Lignin
May 201411

12. | © UPM
Performance Chemicals -
UPM Biofibrils
• UPM Biofibrils offers a range of possibilities
for shaping materials and giving them new
characteristics
• Made from wood fibres and forms a highly
viscous solution in water
• Potential applications
- high-performance additive e.g. in paints and
coatings, concrete, energy drilling fluids
- reinforcement element e.g. in paper and
packaging products
• Pre-commercial UPM Biofibrils pilot plant in
Espoo, Finland
• UPM has a co-operation agreement with
Ashland Inc. targeting to develop and
commercialize products containing UPM’s
Biofibrils technology
May 201412

13. | © UPM
UPM leads the integration of bio and forest
industries into a new, sustainable and
innovation-driven future.
Current businesses
&
competencies
New knowledge
&
new businesses
New
forest industry
May 201413

14. Thank you for your attention.