The collaboration is set to cost between €5m and €10m and testing will be carried out at the Gas Technology Institute’s pilot plant near Chicago, Illinois.

UPM is taking part in the effort as gasification technology is to be used at its Fisher-Tropsch-based second generation biodiesel production facility, which will also include wood-based biomass capabilities.

In October 2006, UPM revealed it would be increasing its stake in second generation biodiesel and looking to locate the facilities close to its pulp and paper mills in order to enhance its use of wood-based biomass generated from the raw materials at the sites.