Biofuel from forestry waste is close – UPM-Kymmene

MUNICH, Feb 12 (Reuters) – New types of green fuels produced using waste from forestry may be among the first new generation biofuels to start production, an executive from Finnish forestry and paper group UPM-Kymmene (UPM1V.HE)said on Thursday.

UPM was planning to expand into biofuel production and was currently conducting trials to produce biodiesel, bioethanol and heavy fuel oils from forest residues including tree bark, twigs and stumps, said vice president corporate relations and development Hans Sohlstrom.

Governments worldwide want second generation biofuels to replace first generation green fuels produced from foods such as corn, sugar and vegetable oils, following bitter controversy about whether biofuel production raises food prices.

“According to our plans we should have the necessary information in our hands to make decisions about the first large scale commercial unit by the middle of this year,” Sohlstrom said on the sidelines of a conference on second generation biofuels organised by German commodity analysts F.O. Licht.

Reuters