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UPM Starts Environmental Impact Assessment for Biofuels Plant
Helsinki, Finland, 25 May 2010 -– UPM is starting an official procedure for an environmental impact assessment (EIA) for a biofuels plant in Lappeenranta, Finland. UPM is planning to build a biofuels plant at the Kaukas mill site in Lappeenranta. In the first phase the plant will serve mainly as a test and training facility.

The main end products of the biofuels plant would be second generation biodiesel, bio gasoline, kerosene, and naphtha. Raw materials used would be liquid bio-based organic compounds, such as fats oils and forest industry by-products. The applicability of different raw materials for the biofuels production will be tested at the biofuels plant. In addition, UPM's future operating staff will be trained at the facility for the operation and management of biofuels petrochemical processes.

The facility is planned to be built in stages. In the first phase, a 20,000 metric ton test and training facility would be built, which could also serve small scale industrial production. The natural location for this facility is UPM's Kaukas mill site, in Lappeenranta, where UPM's research center is located. The EIA includes an assessment of a larger scale commercial size plant that has an maximum annual production capacity of 200,000 metric tons.

UPM has submitted the EIA program to the responsible authority, the Southeast Finland Centre for Economic Development, Transport and the Environment. UPM will compile the EIA report based on the assessment program and the related statements. UPM aims to finalize the EIA process by the end of 2010.

UPM is investigating the production of various second generation biofuels. In addition to this EIA process, UPM has previously completed a more extensive environmental impact assessment for a second generation biorefinery in Kuusankoski and Rauma, Finland. A similar assessment for a biorefinery is ongoing in Strasbourg, France.

UPM has not made an investment decision to build the biofuels plant. In addition to the EIA, construction of a biofuels plant is subject to environmental, construction, and chemical permitting.

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