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

2. FOREST OF NEW OPPORTUNITIES
Biofore growth
and competitiveness
World is changing
Resource scarcity
Power shift in global economy
Climate change
Digitalisation
Materials and energy efficiency
Renewable and recyclable products
Innovation and new businesses
Internal

3. Wood raw material for many products
Fibres to
biocomposites
Fibres to pulp
Bark and branches to biofuels and energy
Fibres to
biofibrils
Lignin
to energy and biochemicals
Cellulose or hemicellulose
to biochemicals
Extractives
to biodiesel
or biochemicals
Logs for sawn goods
and plywood
May 2012

4. The sixth industrial revolution is bio-based
6. wave
Sustainable
Bioeconomy
Renewable energy
Green chemicals
Industrial ecology
3. wave
Electricity
Chemicals
Combustion engine
2. wave
Steam engine
Railways
Steel
Cotton
1. wave
Iron
Hydro power
Machines
Textile
Trade
Innovation
5. wave
Digital web Biotechnology
Information
technology
We´re living in the middle of the sixth industrial revolution. And that revolution is bio-based. — What does it mean?
It means that already now new disciplines and motives steer the behaviour of people. People as individuals. People as citizens. People as business decision-makers. And people as consumers.
Today people justify their purchasing decisions on totally new grounds. The key word is sustainability — sustainability understood in a rather wide context.
Sustainable bioeconomy means that people prefer renewable energy, renewable raw materials and recyclable products. For us, the manufacturing industry, it means the demand for industrial ecology — sustainable combinations of environment, economy and technology.
The same applies for our customers: publishers, printers, brand owners, construction and transportation companies. We must all pay attention to new consuming patterns, new innovative products and production technologies utilizing for example green nanotechnology which enhances sustainability.
4. wave
Petrochemicals
Aircrafts and space
Electronics
Public
Source: Worldwatch Institute / State of the World

5. Integration of current operations and competencies into new knowledge and operations
Current businesses
&
competencies
New
forest industry
New knowledge
&
new businesses
Public
Sunday, 30 December 2018

6. Building new on current businesses
UPM ProFi
UPM Biofibrils
UPM BioVerno
Bio- fibrils
Biochemicals
Biofuels for transport
UPM Grada
Bioenergy – heat and power
UPM ForMi
Labels and composites
Pulp, paper, plywood and wood products
Wood-based biomass procurement and logistics
| © UPM

7. Commercialisation and industrial-scale business operations as primary goals
Public
Sunday, 30 December 2018

8. 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
Internal

9. Europe offers a variety of policies that are relevant to the biobased economy and can trigger its development by 2020
Support demand
for advanced biofuels
Renewable energy directive EU
BIO-ECONOMY
Strategy & Action Plan
Common agricultural policy
HORIZON 2020
Support biomass
mobilisation as part of
Greening the CAP
Support investment in
biorefineries with a
possible PPP on Biobased
Industries

10. An Action Plan: what for?
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.

11. The five pillars of the Action Plan
Patterns of consumption and production of forest products are truly sustainable.
1. Sustainable wood consumption and production
The forest sector makes the best possible contribution to mitigation of, and adaptation to, climate change.
2. The low-carbon forest sector
The workforce is able to implement SFM and the forest sector provides decent jobs.
3. Decent green jobs in the forest sector
Forest functions are valued and PES are established.
4. Valuation of and payment for forest ecosystem services
The forest sector policies and institutions promote SFM, policy making is evidence-based, and policy instruments are effective, efficient and equitable
5. Monitoring and governance of the forest sector
For more information:

12. Attractive growth investment based on UPM’s competitive advantages
Competitive raw material
Efficient production process
High quality product
Crude tall oil, a residue from pulp production
Steady supply partially from own sources
Outside food value chain
No indirect land-use change
Technology based on UPM innovations
Efficient use of raw material
Integrate synergies
Industrial infrastructure
2nd generation biodiesel fully compatible with current diesel motors
80% reduction in greenhouse gas emissions
High energy content
No blend wall issues
| © UPM

13. Growing UPM Kaukas mill site in Lappeenranta - Biorefinery
Internal