I also believe, like @Antti_Viljakainen, “that UPM’s primary option in biochemicals is scaling the Leuna technology, provided the plant’s financial development in terms of revenue and margins meets expectations after the ramp-up.”
UPM recently acquired a patent portfolio related to biochemical production technology or something similar.
“The acquisition strategically broadens the scope of UPM’s IP portfolio safeguarding biomass-to-glycols conversion pathways and adds optionality for future process configurations as UPM continues to scale its bio-based chemicals business. It reinforces UPM’s standalone position as the first company to bring lignocellulosic biomass-based chemicals production to industrial scale, currently being started up at the UPM Leuna biorefinery in Germany. The close alignment with Avantium, a recognised leader in renewable and circular polymer materials, supports the rapid development of a strong industrial bioeconomy in Europe, which can be expected to scale faster with multiple industrial options entering the market in parallel.”
I am wondering whether the acquisition of the patent portfolio was necessary for the Leuna ramp-up to succeed according to targets, or if it was more of an optional acquisition from a future perspective, as the press release suggests.
What are @Antti_Viljakainen’s thoughts, or perhaps you could inquire about this with UPM’s management at some point?