UPM-VR HVO co-op

April 23, 2024

UPM Plywood has reached a deal with VR, the Finnish national rail freight haulier, to replace fossil diesel with hydrotreated vegetable oil (HVO) for shipments from the UPM Pellos mill.

The fuel swap, coupled with a new operating model (increasing the train filling rate and using one instead of two locomotives), will reduce the total emissions of the WISA® plywood transport in Finland by 24%.

The mill in question is located in Ristiina, with its output rail-carried to Kouvola and the Port of Kotka.

"Only about 60% of Finland's rail network is electrified, so it is necessary to find other responsible alternatives to electricity. This is the first HVO contract for VR's rail logistics, which will bring the customer's transport emissions to almost zero. HVO [...] is also produced from crude tall oil by UPM Biofuels at its Lappeenranta refinery," UPM shared in a press brief.

"Our goal is to offer our customers responsible solutions and to continuously develop new operating models together. As other alternative propulsion technologies for rail transport, such as battery and hydrogen locomotive technology, are still in the development phase, biofuel is currently the most practical solution for non-electrified lines," shared Joni Lehtonen, Commercial Director at VR Transpoint.

Juha Vallittu, Logistics Manager at UPM, also underlined, "UPM Plywood is constantly striving to reduce its carbon footprint. Emissions in the supply chain are mainly generated from raw material sourcing and product transport. The more efficient operating model for rail transport in Pellos and the introduction of biodiesel are good examples of constructive cooperation between companies to reduce emissions in a concrete way."

UPM Plywood is part of the UPM Group, which aims at reducing emissions from its value chains by 30% by 2030. At the same time, VR is involved in halving transport emissions by 2030 and working towards a carbon-neutral Finland by 2035.

Photo: UPM Plywood/WISA Plywood

Follow us