Unlike the Finnish agreement, which spans over a decade, the German PPA is structured as a year-by-year contract. This approach reflects the dynamics of the German energy market and allows UPM to adapt to evolving customer demand and regulatory developments.
In early 2024, UPM took a significant step forward on its sustainability journey by signing a new Power Purchase Agreement (PPA) for wind energy in Germany. The agreement provides UPM’s German mills with up to 430 GWh of fossil-free wind power annually—the same volume as a comparable long-term PPA signed in Finland in 2022.
This wind power agreement is another major step in decarbonizing our operations in Germany
Electrification as a priority
One of the key actions of UPM Communication Papers’ Climate Action Roadmap is the electrification of heat generation, replacing fossil fuels like natural gas. In Germany, this transformation is only possible if fossil-free electricity is available and that’s where PPAs play a crucial role.
“Power supply from renewable sources is the only way to achieve fossil-free electricity for production in Germany,” Häring explains. “Hydropower is limited and nuclear energy is not an option here.”
Beyond decarbonization, the PPA also supports economic stability. In an increasingly volatile European energy market, securing renewable energy through market-based pricing offers both predictability and a competitive edge.
“In the volatile German energy market, this type of PPA is currently the best way to secure fossil-free power for our sites, ensuring the availability of renewable energy, cost-effectively” Häring notes.
Schongau mill: book paper with a lower carbon footprint
Since 1 July 2025, UPM’s Schongau mill has been producing UPM Book papers with a lower carbon footprint using 100% purchased renewable electricity, in this case, wind power, marking a major achievement in lower-emission paper manufacturing. This shift enables the production of the UPM Book paper range with zero Scope 2 emissions, reducing the total carbon footprint for the UPM Book range by more than 60% - a positive message for customers increasingly focused on the environmental impact of printed products.
“The Schongau mill producing book papers with 100% renewable electricity, utilizing wind power, is a great example of how sustainability and high-quality production go hand in hand,” says Häring.
Scaling up for the future
Sustainability and climate impact are increasingly important priorities for UPM’s customers. By reducing the carbon footprint of UPM Book papers, UPM helps its customers lower their own emissions thus creating clear value throughout the supply chain.
“Our actions to lower book papers’ carbon footprint will create value for our customers as it helps them to lower their Scope 3 emissions,” says Niina Niemelä, Senior manager, Sustainability.
To support this, UPM’s current wind power agreement already enables all German Communication Papers mills to access renewable electricity as needed. UPM Communication Papers is also actively exploring ways to expand the agreement’s capacity and diversify its renewable energy portfolio.
High-impact model
Unlike the fixed-price PPAs common in Finland, the German market requires more flexibility. UPM’s current agreement stands out for its market-based pricing, verified CO₂-free energy, and top-level sustainability compliance without compromising on transparency.
“Our current PPA enables CO₂-free renewable generation at market price level, with top-level sustainability compliance,” Häring concludes.
By combining innovative sourcing models, production flexibility, and long-term planning, UPM continues to show how industrial players can drive impactful climate action – one wind-powered paper sheet at a time.
Writer: Alisa Hermonen
Join the Makers of Real
Become a part of our community and be the first in line for event invitations, industry trends, and the latest stories about paper. Together we will drive the value of paper.