Transcript Role of Innovation in a Forest Based Economy Stefan Sundman VP, Corporate Relations and Development UPM-Kymmene Corporation.

Role of Innovation in a Forest
Based Economy
Stefan Sundman
VP, Corporate Relations and Development
UPM-Kymmene Corporation
FOREST OF
NEW OPPORTUNITIES
Biofore growth
and competitiveness
World is changing
Resource scarcity
Power shift in global economy
Climate change
Digitalisation
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Materials and energy efficiency
Renewable and recyclable products
Innovation and new businesses
Internal
Wood raw material for many products
Fibres to
biocomposites
Fibres to pulp
Fibres to
biofibrils
Bark and branches to
biofuels and energy
Lignin
to energy and biochemicals
Extractives
to biodiesel
or biochemicals
Cellulose or hemicellulose
to biochemicals
Logs for sawn goods
and plywood
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May 2012
Innovation
The sixth industrial revolution is bio-based
1. wave
Iron
Hydro power
Machines
Textile
Trade
1785
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2. wave
Steam engine
Railways
Steel
Cotton
6. wave
Sustainable
Bioeconomy
Renewable energy
Green chemicals
Industrial ecology
3. wave
Electricity
Chemicals
Combustion
engine
5. wave
Digital web
Biotechnology
4. wave
Petrochemicals Information
technology
Aircrafts and
space
Electronics
1845
1900
1950
Public
1990
2020
Source: Worldwatch Institute / State of the World
Integration of current operations and
competencies into new knowledge and
operations
Current businesses
&
competencies
New
forest industry
New knowledge
&
new businesses
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Public
Saturday, 07 November 2015
Building new on current businesses
UPM ProFi
UPM Biofibrils
UPM BioVerno
Biofibrils
Biochemicals
Biofuels for transport
UPM Grada
Bioenergy – heat and power
Labels and composites
Pulp, paper, plywood and wood products
Wood-based biomass procurement and logistics
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UPM ForMi
Commercialisation and industrial-scale
business operations as primary goals
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Public
Saturday, 07 November 2015
Public Private Partership on Biobased
Industries
A joint initiative to overcome
industry challenges
• Investment & implementation
– in order to keep Europe in the global
race
•
Innovation:
– New products and new value chains
•
Integration
– to accelerate the building of value
chains
Focused on development and
actual realisation of integrated
biobased value chains
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Internal
Europe offers a variety of policies that are
relevant to the biobased economy and can
trigger its development by 2020
Renewable
energy
directive
Support demand
for advanced biofuels
EU
BIOECONOMY
Strategy &
Action Plan
Common
agricultural
policy
Support biomass
mobilisation as part of
Greening the CAP
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HORIZON
2020
Support investment in
biorefineries with a
possible PPP on Biobased
Industries
Demonstrate how
the ECE region
forest sector can
contribute to the
transition towards
a Green Economy;
Share best practices
and promote
policies which are
effective, efficient
and equitable;
Communicate
achievements –
to public, policy
makers and
other sectors.
1. Sustainable wood
consumption and production
• Patterns of consumption and production of forest
products are truly sustainable.
2. The low-carbon forest
sector
• The forest sector makes the best possible contribution
to mitigation of, and adaptation to, climate change.
3. Decent green jobs in the
forest sector
• The workforce is able to implement SFM and the forest
sector provides decent jobs.
4. Valuation of and payment
for forest ecosystem services
• Forest functions are valued and PES are established.
5. Monitoring and governance
of the forest sector
• The forest sector policies and institutions promote
SFM, policy making is evidence-based, and policy
instruments are effective, efficient and equitable
For more information: http://www.unece.org/forests/greeneconomy.html
Attractive growth investment based on
UPM’s competitive advantages
Competitive
raw material
• Crude tall oil, a
residue from pulp
production
• Steady supply
partially from own
sources
• Outside food value
chain
• No indirect land-use
change
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Efficient
production process
• Technology based on
UPM innovations
• Efficient use of raw
material
• Integrate synergies
• Industrial
infrastructure
High quality
product
• 2nd generation
biodiesel fully
compatible with
current diesel motors
• 80% reduction in
greenhouse gas
emissions
• High energy content
• No blend wall issues
Growing UPM Kaukas mill site in Lappeenranta
- Biorefinery
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Internal