Forestry products and renewable energy company UPM Kymmene said it plans to build a biofuels plant at the Kaukas mill in Lappeenranta. The plant will produce biodiesel, gasoline and kerosene substitutes as well as naphtha from liquid organic feedstocks such as fats, oils and from forestry products. The plant in a first phase will have a production capacity of 20,000 tonnes of fuels per year which may be increased to 200,000. An environmental impact assessment is due for end-2010.

The company in cooperation with two local utilities recently started operations at a wood-fuelled CHP plant with 125 MWel and 385 MWth. Total investment was EUR240 mln.