The process creates biofuels from paper, cardboard, wood, plastic and even the paper industry's de-inking sludge.
The companies, which have studied the concept under laboratory conditions in cooperation with the Technical Research Centre of Finland, will now begin extensive testing at the centre's Rajamäki unit.
The planned ethanol and energy production plant can operate in connection with a waste treatment unit or a paper mill to generate part ethanol and part energy.
Biofuel made from waste and ligno-cellulosic material is considered more efficient than traditional biofuel because it puts less pressure on the environment than grain production and saves the waste going to landfill. This was highlighted as a priority in the EU's recent energy and climate package.
UPM produces energy from waste in biofuel joint venture
UPM has tied with waste management company Lassila & Tikanoja on a method for producing energy and ethanol from commercial and industrial waste, making it possible to produce biofuels in Europe without putting pressure on raw materials from the forest industry.
