UPM is investigating the production of various second generation biofuels. A possible biorefinery plant in Lappeenranta, southeas Finland, would be built at the Kaukas mill site, and the main products of the liquid biorefinery would be transportation biofuels, produced with hydrotreatment technology. Raw materials would be bio-based liquids like fats, oils and forest industry by-products.The Kaukas liquid biorefinery is planned to be build in stages. In the first phase, the plan is to build a 20,000 tons per year test and training facility, which could also begin small-scale industrial production. The environmental impact assessment also includes an assessment of a larger scale commercial size plant that has an annual production capacity of up to 200,000 tons in total.However, UPM has not yet made an investment decision to build the Kaukas liquid biorefinery."We are making preparations concerning both the technical and permit issues in the light of an investment decision. We aim to make an investment decision on the liquid biorefinery test and training facility this year," says Petri Kukkonen, Director, UPM Biofuels Business Area.UPM's production of biofuels will not utilise materials suitable for food.