Berliner Boersenzeitung - Tree branches to fleece jackets: Chemicals plant in Germany bets on biomass

EUR -
AED 4.2854
AFN 73.513877
ALL 95.510242
AMD 433.136935
ANG 2.088595
AOA 1071.203322
ARS 1623.155257
AUD 1.637048
AWG 2.103316
AZN 1.988841
BAM 1.949665
BBD 2.351002
BDT 143.219321
BGN 1.946488
BHD 0.440592
BIF 3472.658894
BMD 1.166888
BND 1.490503
BOB 8.065619
BRL 5.857427
BSD 1.167227
BTN 110.652801
BWP 15.777285
BYN 3.286757
BYR 22871.006156
BZD 2.347613
CAD 1.596245
CDF 2707.180185
CHF 0.923656
CLF 0.026831
CLP 1055.999007
CNY 7.979472
CNH 7.98372
COP 4242.349933
CRC 530.8296
CUC 1.166888
CUP 30.922534
CVE 110.708526
CZK 24.389535
DJF 207.37905
DKK 7.473107
DOP 69.283997
DZD 154.851697
EGP 61.871784
ERN 17.503321
ETB 183.201494
FJD 2.574858
FKP 0.863638
GBP 0.866006
GEL 3.138536
GGP 0.863638
GHS 13.057687
GIP 0.863638
GMD 85.182963
GNF 10239.442958
GTQ 8.917899
GYD 244.210479
HKD 9.143869
HNL 31.051229
HRK 7.535408
HTG 152.878925
HUF 365.773316
IDR 20277.072323
ILS 3.468517
IMP 0.863638
INR 110.835288
IQD 1528.623371
IRR 1535041.255104
ISK 143.807139
JEP 0.863638
JMD 183.034034
JOD 0.827365
JPY 187.105255
KES 150.680561
KGS 102.020206
KHR 4679.221247
KMF 492.427083
KPW 1050.160366
KRW 1733.231342
KWD 0.35939
KYD 0.972735
KZT 540.648702
LAK 25642.365622
LBP 104474.479546
LKR 372.936454
LRD 214.561568
LSL 19.685307
LTL 3.445517
LVL 0.705839
LYD 7.409465
MAD 10.809759
MDL 20.094681
MGA 4842.585502
MKD 61.638331
MMK 2450.441126
MNT 4176.159573
MOP 9.422649
MRU 46.651906
MUR 54.645753
MVR 18.034257
MWK 2032.137573
MXN 20.479933
MYR 4.627916
MZN 74.569985
NAD 19.685422
NGN 1604.55262
NIO 42.836401
NOK 10.879948
NPR 177.044124
NZD 2.000105
OMR 0.44867
PAB 1.167227
PEN 4.112129
PGK 5.064072
PHP 71.770626
PKR 325.415929
PLN 4.258634
PYG 7262.147676
QAR 4.251559
RON 5.102787
RSD 117.399467
RUB 87.225251
RWF 1704.823469
SAR 4.376524
SBD 9.380426
SCR 16.071443
SDG 700.710364
SEK 10.870572
SGD 1.494516
SHP 0.8712
SLE 28.702881
SLL 24469.054893
SOS 666.881356
SRD 43.712824
STD 24152.227095
STN 24.738027
SVC 10.213859
SYP 129.215466
SZL 19.6617
THB 38.239409
TJS 10.943018
TMT 4.089943
TND 3.374932
TOP 2.809587
TRY 52.723968
TTD 7.937024
TWD 36.91894
TZS 3028.074582
UAH 51.448105
UGX 4348.316838
USD 1.166888
UYU 46.45382
UZS 14061.001063
VES 566.626558
VND 30754.501952
VUV 138.127072
WST 3.169123
XAF 653.896535
XAG 0.016137
XAU 0.000256
XCD 3.153573
XCG 2.10368
XDR 0.814159
XOF 652.290523
XPF 119.331742
YER 278.448622
ZAR 19.651737
ZMK 10503.389618
ZMW 22.031671
ZWL 375.737482
  • RBGPF

    0.2800

    63.75

    +0.44%

  • CMSD

    -0.1400

    23.06

    -0.61%

  • BCE

    -0.2400

    23.26

    -1.03%

  • CMSC

    -0.0100

    22.82

    -0.04%

  • GSK

    -3.0700

    51.4

    -5.97%

  • NGG

    -1.4700

    85.98

    -1.71%

  • BTI

    -1.0200

    57.45

    -1.78%

  • RIO

    -2.0000

    96.49

    -2.07%

  • BP

    0.4500

    46.8

    +0.96%

  • AZN

    -1.4800

    185.2

    -0.8%

  • BCC

    -3.6100

    79

    -4.57%

  • RELX

    -0.2100

    35.8

    -0.59%

  • JRI

    -0.0700

    12.74

    -0.55%

  • RYCEF

    -0.4000

    14.9

    -2.68%

  • VOD

    -0.1500

    15.34

    -0.98%

Tree branches to fleece jackets: Chemicals plant in Germany bets on biomass
Tree branches to fleece jackets: Chemicals plant in Germany bets on biomass / Photo: JENS SCHLUETER - AFP

Tree branches to fleece jackets: Chemicals plant in Germany bets on biomass

Staring at a pile of freshly cut beechwood, forestry manager Johannes Brodowski wonders if he is looking at the future of Germany's chemicals industry.

Text size:

A local factory will use Brodowski's trees and other organic material -- instead of climate-harming fossil fuels -- to make chemical products used to manufacture items ranging from packaging to car tyres and fleece jackets.

"The innovative part of the whole thing is that a new product is getting made," he told AFP: "Namely, chemical materials that were originally made from fossil fuels and now can be made from renewable sources."

Finnish group UPM Biochemicals unveiled its 1.3-billion-euro ($1.5-billion) biorefinery in the eastern state of Saxony-Anhalt this year, taking a big risk at a difficult time for the sector.

Germany's traditional chemicals industry has been battered by high energy prices and cheap competition from Asia, with national output now at its lowest level since 1995.

Still, UPM thinks now is the right time to try and get chemical giants to break with fossil fuels and switch to renewable biomass, in this case wood which grows abundantly in the region.

"With local supply chains, we can be competitive and meet the needs of international markets," said UPM site manager Harald Dialer.

The opportunity is large: about 80 percent of German chemical products rely on imported fossil-based materials, said Paul Muennich of Agora Energiewende, an energy-transition think tank.

UPM has signed a supply contract with the forest-rich state of Saxony-Anhalt, making use of beech tree branches and twigs for chemical processes in its refinery.

As a result, beech wood production in this corner of Saxony-Anhalt could go up by 20-30 percent, Brodowski said.

He explained that the plant uses tree branches, which are less commercially viable than trunks and usually incinerated in factories.

- 'Like popcorn' -

The wood is processed at the Leuna Chemical Park, home to over 100 different firms.

Most of the factories give out the smell of rotten eggs, but inside some areas of the UPM site, a sweeter smell fills the air.

Wood chips are treated until they burst "like popcorn", turning into a slurry that is fermented in huge metal tanks, UPM spokesman Martin Ledwon said.

At the end of the process, two types of products emerge: liquids used to make clothing or bottles, and a brown powder that can replace carbon black, a powder used as a filler in tyres and other rubber products.

The UPM site should reach full capacity by 2027, with annual output of 220,000 tonnes of chemicals.

That would mark a rare bright spot in Germany's otherwise stagnant chemicals industry -- a trend thrown into stark focus in Leuna where the US group Dow is to soon close two plants.

- 'Bold decision' -

Opening the plant was a "very bold decision", Dialer said, adding that the Covid pandemic had doubled the timeline and the associated costs of the project.

UPM would like to count on help from the German state, highlighting that its project is more ecologically sustainable than oil-guzzling plants that also accelerate climate change.

But the federal government led by conservative Chancellor Friedrich Merz, which took power in May, has been less enthusiastic about environmental and climate protection than its predecessors.

When the project was launched in 2020, sustainability was "more at the centre of the debate", Dialer said.

In his view, Germany and the European Union should support European industry by imposing quotas on what he says are cheap but often environmentally damaging imports of Chinese chemicals.

Paul Muennich of Agora Energiewende also argued that government intervention with subsidies or tariffs would be "necessary to shift from fossil fuel to sustainable biomass".

(K.Müller--BBZ)