UPM considered three different locations — Rauma, Kuusankoski and Strasbourg— for a biorefinery. Rauma was chosen ahead of Kuusankoski for two key reasons: More efficient energy utilization and lower investment costs. UPM has not yet decided whether the biorefinery will be located in Rauma or in Strasbourg, France, where the environmental impact assessment is still ongoing.UPM will apply for an EU grant for investments in a biorefinery both in Finland and France. However, UPM has not yet made an investment decision on building a biorefinery."An investment decision regarding the biorefinery can be made only after the EU's grant decisions are announced," says Petri Kukkonen, Director, UPM Biofuels Business Area.The planned biorefinery would use gasification and Fischer-Tropsch processes to produce biodiesel from wood.UPM is investigating the production of various second generation biofuels and is looking into the possibility of building a biorefinery also at the Kaukas mill site in Lappeenranta, as Papernet has reported.