UPM gets EUR 170m EU funding for biorefinery in France
Dec 19, 2012 - The European Commission (EC) has awarded Finnish paper maker UPM-Kymmene Oyj (HEL:UPM1V) a grant of EUR 170 million (USD 225.1m) for a solid wood-based biorefinery project in Strasbourg, France.
The investment decision will be made in the next 12 to 18 months, UPM said Tuesday. It will depend on the economic operating environment and the long-term outlook for the market price and availability of wood, which will be the raw material in the project.
UPM’s biorefinery planned for Strasbourg will produce second generation wood-based renewable diesel called UPM BioVerno from energy wood, such as logging residue or bark.
A similar biorefinery project plan in Finland of the UPM Rauma subsidiary has not received funding under the EU's new entrants reserve NER300 programme, the company said.
The NER300 scheme is funded by the sale of emission allowances to European companies.