Jan 10, 2008. /Lesprom Network/. UPM and Chempolis Oy, a Finnish technology company, have signed a licence agreement on the use of a novel biorefining technology for the production of papermaking fibre and biochemicals. Agro residues and other non-wood feedstocks, such as straw and reed can be used as raw materials for pulp and biochemicals. UPM investigates a possibility to build an industrial biorefinery utilizing agro residues in China. The biorefinery would be the first industrial facility using this technology in the world. Non-wood materials include a number of cultivated and naturally growing plants such as agricultural residues, and they are available in abundance, for example, in highly populated countries that have a shortage of papermaking fibres. The biorefining technologies, patented by Chempolis, do not employ sulfur nor chlorine chemicals. Low water consumption, low greenhouse gas emissions and minimization of other environmental impacts of industrial production are the main environmental benefits of the new method. UPM is a global forest products group with core businesses in printing papers, speciality papers, label materials and wood products.