New and innovative uses of renewable forest industry processes and products

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New and innovative uses of renewable forest
industry processes and products

• Dr Markku Karlsson
• Nominated by Technology Academy Foundation of
  Finland
• CAETS 2009 Calgary
• July 15, 2009

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Outline
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Outline
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BackgroundMegatrend
Global Warming The globe is faced with serious
consequences in the form of higher temperatures,
rising water levels, more drastically changing
weather patterns and pollution, caused by global
warming. Although a longer-term phenomenon,
implications may be felt already by 2020. At
worst, economic order in the world will be
disrupted and several areas in Asia, Europe and
North America will be under water affecting
millions of people, assets and crops. Crisis
mitigation businesses as well as resource saving
products and processes will benefit from the
phenomenon.
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BackgroundMegatrend
Energy Global energy landscape is changing, with
energy availability issues, geopolitics, and
rising prices shaping the business environment.
Also climate change mitigation will push towards
energy efficiency, carbon free generation and
utilization of biomass and other renewable
sources. No new technology solutions are visible
for large scale electricity and biofuels
production by 2020. Energy generation and
biomass supply chain re-posession provide
business opportunities. Companies with renewable
products, high eco-efficiency, and low carbon
intensity will prosper.
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BackgroundBiomass under pressure
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Outline
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Traditional forest industry and new business
development
Traditional products
Magazine Catalogue Papers
Newsprint Directory Papers
Fine Speciality Papers
Label Stock RFID Tags
Plywood Timber
On-going new business development
Wood Plastic Composites
Electronic Laminates
Smart Labels
Bio- Chemicals
Bio- Fuels
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Traditional forest industryTodays challenges of
forest companies
To improve profitability of present business i.e.
/ supplied paper ton
/tn

• MILL ANALYSIS
• mill scale
• integration
• energy balance
• manning

CAPITAL CHANGES

• MACHINE ANALYSIS
• capacity
• investment history
• technical age
• furnis

DELIVERY COSTS
FIXED COSTS
VARIABLE COSTS

• REGIONAL ANALYSIS
• unit prices
• exchange rates
• location and delivery
• productivity
• investment cost level

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80
80
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Outline
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Forest industry renewalNew possibilities
Source P. Vasara, Pöyry
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Forest industry renewalEnvisioned of product
portfolio

• Today, share of the present products100, (pulp
  paper)
• Future product portfolio could be different

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Outline
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Forest Industry Renewal Bio Economy Fits Well to
Forest Industries
Eco-composites
Logs for wood products
Plywood and sawn timber
Green power and heat
Raw material integration
Fibre wood for pulp and paper
Pulp and paper
Residues Recycling
Forest biomass

• Forestry
• Harvesting
• Logistics
• Assortment
• Drying

Energy integration
Logging residues, bark and stumps
Biofuels / Biochemicals
Sustainable development radical reduction of
CO2 Non-food sustainable value chain
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Forest Industry Renewal 2G bio-oil concept - CHPF
Bio-oil
Pyrolysis
Drying
Forest residues
Water treatment
CHP plant
Paper mill units Additional units Material
flow Energy flow
Pulp wood
Wood handling
Paper mill
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Forest Industry Renewal Urban Forestry

• Urban Forestry means vertical integration of
  paper production to waste management, raw
  material sorting, supporting the current pulp and
  paper businesses.
• Waste management and new energy products can
  support the main business of paper production
  while providing feasible new business
  opportunities.

Paper / re-use
Separated RCP grades
Paper board
Fuel ethanol
Paper mill
Waste wood
Biogas
Power plant
Plastics
Power and heat
Commercial and industrial waste
Currently solid fuels and gas
Picture source E. Sipilä, Pöyry
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Forest Industry Renewal Innovative Way to
Produce Ethanol
Paper mills position in the cumulative cost
capacity curve can be changed by utilizing raw
material and process integration.
Integrated production of paper and ethanol
"FibreEtOH concept" utilises paper mills power
plant to produce needed steam from low cost waste
fuels.
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Outline
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Forest industry renewal - BiorefineryPotential
pathways
Residues
Gasification, pyrolysis
Chemical processes
Wood
Conventional processes
Chemical processes
Chemical processes
Fermentation processes
Source FPInnovations
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BiochemicalsProducts on the market / under
development

• Raw materials
• (Hemi)cellulose
• Oligosacharides
• Specialty sugars
• Polyphenols
• Tannins
• Fatty and resin acids
• Sterols
• Lignin

• Products already on the market
• Xylitol from xylose anticaries effects
• Sitosterol / sitostanol as suppressing
  cholesterol absorption (Benecol product family)
• Lignans from knots (HMR) health-promoting
  antioxidant
• Products under development
• Nanocellulose ? eg. nanocoating
• Lignoboost for extra pulp capacity
• Resin substitute (no aldehydes)
• Carbon black replacement

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Outline
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CompositesGrowth market

• Wood Plastic Composite (WPC) contains polymers
  and wood.
• WPC is used to make for example decking boards,
  window frames and cladding products.
• In the US, WPC have an established market.
• Europes composite markets are taking their first
  steps.

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Eco-compositesFrom waste to world-class green
designs
Finland Pavilion at Shanghai EXPO 2010 design by
Teemu Kurkela
Waste ) Components Systems World-class designs
) In the past label waste containing plastic,
paper, adhesive and silicone was incinerated or
disposed off in a landfill
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Outline
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The New Bulk of the Forest Industry Short-term

• Building on current strengths mastery of
  logistics and high volume processes
• Sustainable development and lean process
  concepts
• Low waste of resources (energy, biomass, water),
  low emissions and capital costs, reuse of waste
• Introducing new business logic user driven value
  networks, not raw material pushed value chains
• Value network cost efficiency cost-competitive
  production of items in high value,
  cross-industrial collaboration
• "Happy Marriage" with Energy and Chemicals

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Outline
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Summary

• Growth of natural and planted forests is the most
  important renewable raw material resource to
  support global sustainable development.
• Change of mindset with new business logic From
  raw material based value chains to demand - based
  value networks and cross-industrial
  collaboration.
• Renewal of paper mills into biorefineries is a
  major challenge and needs close co-operation
  throughout the value chain.
• Process and raw material integration provides
  cost efficiency and re-position in the value
  chain.

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Forest Industry RoadmapInitiatives for the future
Business portfolio, commercialization level
Industry Competitiveness
New paper products based on enabling
technologies
Emerging Market
PP and biofuel production integration
Biochemical extraction from wood
Resource thrifty paper process
Energy Markets
Minimill concept
New Businesses
Biomass gasification to syngas and BTL
Filler content increase in paper products
Cellulosic ethanol production
Agrofibre pulping technology
New paper-based services
Bio-oil production from wood
Nano Technology
2020
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Thank you for your attention !

• The breakthrough innovations
• come when the tension is the greatest and the
  resources are most limited. That's when people
  are actually a lot more open to rethinking the
  fundamental way they do business.
• Clayton Christensen, Harvard Business School