12 Dec 2013

NIB finances renewable diesel refinery in Finland

NIB and UPM-Kymmene Corp. have signed a EUR 50 million loan agreement to construct the world’s first industrial biorefinery producing wood-based renewable diesel in Lappeenranta, Finland.

The seven-year maturity loan is aimed at the construction of a biorefinery producing biofuels from crude tall oil, which is a residue of chemical pulp production. UPM-Kymmene expects a large part of the raw material to come from its own pulp mills in Finland. The construction of the new plant, located next to UPM’s Kaukas mill, began in the summer of 2012 and will be completed in 2014.

“UPM-Kymmene takes biofuel production to a new level with this wood-based biorefinery, and the benefits of its products for decreasing greenhouse gas emissions fit perfectly with NIB’s targets to mitigate climate change,” says Henrik Normann, NIB President & CEO.

The biorefinery will produce approximately 100,000 tonnes of renewable diesel annually for the transportation sector. UPM’s advanced biofuels are expected to cut greenhouse gas emissions from transportation by up to 80% in comparison with fossil fuels.

UPM is a leading producer of graphic paper, but also produces pulp, labels, timber and sawn materials. Besides pulp and paper, the company owns energy assets accounting for roughly 10% of total Finnish energy production. Although UPM is diversifying its operations, paper still accounted for 67% of total external sales in 2012. It is mostly sold on the European market. UPM has 22,000 employees, of which 40% are located in Finland. Production is concentrated mainly in Finland, Germany, China and Uruguay.

NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s.

For further information, please contact

Kim Krokfors, Senior Manager Origination, at +358 10 618 0517,

Arild Moen, Senior Communications Officer, at +358 10 618 0496,