Summit 2005

1
Speaking the same languageThe way forward in
tracking industrial Energy efficiency and CO2
EmissionsMarco MensinkIEA, Paris, 1st and 2nd
of October 2007
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ICFPA

• The organization of the world's forest and paper
  industry associations
  
• 19 members from all over the world representing
  90 of global pulp and paper capacity and 50 of
  woodworking capacity
  
• A forum of global dialogue, coordination and
  cooperation
  
• Today speaking for the pulp and paper industry.

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ICFPA and Climate change

• The global forest products industry is strongly
  committed to meeting the challenges of climate
  change.
  
• Trees, wood and paper products are uniquely
  renewable and recyclable resources that help
  reduce greenhouse gasses by storing CO2 from the
  atmosphere.
• Fibre from sustainably managed forests makes a
  positive contribution to the worlds future
  energy supply.
  
• The industry is committed to innovative energy
  solutions that will increase efficiency, reduce
  reliance on fossil fuel and expand the use of
  renewable energy sources.

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The sector in summary

• The global pulp and paper industry consists of
  about 5000 pulp and paper mills.
  
• Although there are many international and global
  companies, a large part of the sector is also
  made up of medium and smaller enterprises.
  
• Pulp and paper are made around the world and
  there is an active global trade both in resources
  and final products. It is a globally competing
  sector.
• Pulp and paper are umbrella words for many
  different products and grades, from business to
  business to direct consumer products.

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Pulp Production by Region in 2005
Total 189.0 Million Tonnes
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Pulp Consumption by Region in 2005
Total 188.5 Million Tonnes
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Paper Production by Region in 2005
Total 367.0 Million Tonnes
8
Paper Consumption by Region in 2005
Total 366.3 Million Tonnes
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Recovered Paper Balance (2005)
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Grades Miladys Fan
PAPER AND PAPERBOARD PRODUCTION INWESTERN EUROPE
Degree of fossil CO2 emitted during production
High
End products - Substitution
High growth
3
Medium high
Medium growth
1.75 - 3
Household
Envelope paper
Medium low
Low/No growth
.
t
Stationary
Sanitary
r
e
v
d
a
Copy papers
Products

Low
y
t
i
l
a
T
u
r
q
a

n
h
s
g
i
p
s
s
Substitution ranges
H
r
o
C
e
o
e
r

p
r
t
r

Catalogues

a
n
u
P
g
Brochures
P
a
a
i


t
c
g
i
Tissue
k
z
n
n
a
i
g

Kraftliner
a
g
t
M
i
i
a
g
n
Uncoated Woodfree
r
t
Testliner
g
e
W
a
s
r

i
Coated Woodfree
e

d
a
M
i
l
r
n
s
o
a
Coated Mechanical
t
Fluting Medium

c

s
Inserts
g
r
e
Consumer
e
Packaging
SBS
r
n
p
i
a
Carton-
Uncoated Mechanical
i
boards
FBB
D
p
t
s
WLC
w
n
Food
e
Packaging
i
LPB
N
r
Sackkraft
Sacks
Bags
P
Misc.
Newsprint
Other
Total 70 million tons
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Energy in pulp and paper production
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IEA key findings in tracking

• The pulp, paper and printing industry consumed
  6.45 EJ of final energy in 2004, accounting for
  5.7 of total industry energy use. Printing
  represents a small share of the industry's energy
  demand.
• In pulp and paper production, the industry
  generates about half of its own energy needs from
  biomass residues and makes extensive use of
  combined heat and power (CHP) technology,

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IEA key findings in tracking (2)

• There are notable differences in energy use for
  pulp and paper production between countries, due
  to a range of factors such as product mix,
  processes used, plant size, technology, technical
  age, feedstock quality, fuel prices and
  management attention to energy efficiency.

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IEA key findings in tracking (3)

• Energy efficiency gains can be achieved if
  existing mills are retrofitted with current
  energy efficient technology, but investment costs
  and competitiveness are key determinants.
• There is potential for more use of heat recovery.
  Putting excess heat to use in a more effective
  way could provide savings, but the economic
  viability depends on the need for low grade
  heat.

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IEA key findings in tracking (4)

• Increased paper recycling and recovered paper use
  could help reduce energy consumption in the
  industry.
  
• While Europe, Japan and Korea appear to be close
  to the practical limits for paper recycling,
  North America and parts of Asia could benefit
  from more effective policies on waste disposal to
  encourage higher rates of paper recycling.

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On the IEA methodology

• An indicator method is developed in this study
  that compares a theoretical sector energy use if
  best available technology (BAT) were applied with
  actual energy use according to IEA statistics.
• The method discerns energy use for mechanical and
  chemical pulp, pulp from recovered paper and
  various paper qualities. These indicators are
  suited to identify areas where further analysis
  is warranted.
• This indicators analysis raises a number of
  issues concerning data quality which requires
  further discussion on the availability, quality
  and consistency of data across countries.

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But a firm conclusion

• Based on country comparisons, the remaining
  energy efficiency potential in the pulp and paper
  industry is estimated to be 1.0 EJ per year of
  final energy, or 1.3 to 1.5 EJ in primary energy
  terms, depending on the efficiency for power and
  steam generation.
• If higher recycling rates and CHP were also
  considered, the total final savings potential
  would be 2.1 to 2.4 EJ of final energy per year.
  
• ?

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Feedback (1)

• IEA has done a tremendous effort and
  groundbraking work. Our compliments.
  
• but
• These seem to be huge and important conclusions
  compared to the issues remaining in the
  methodology and data collection.

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Speaking the same language

• IEA statistics still do not match the definitions
  and categories of the international pulp and
  paper industry federations, or for example the EU
  ETS.
• A crucial issue is the treatment of CHP in the
  statistics. Also printing should be removed, or
  we should go down one statistical class.
  
• We have now worked on global definitions of
  energy use in the Pulp and paper industry (IEA
  Paprican project), so that industry speaks the
  same language.
• But that does not mean the same language as IEA
  yet. CHP is one example, subdividing in G8 a
  second.

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An outlook to the future

• The global pulp and paper industry within the
  forest based sector cluster can be a solution in
  climate change mitigation.
  
• Carbon storage in forests and carbon storage in
  products are, combined with paper recycling and
  energy efficiency, attributes that can take us
  there.
• A strong effort is needed, indeed, but the
  industry can be the enabler for many (bio)
  climate targets.
  

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Improving performance by technology

• Installing latest technology and improving
  efficiency is a continous target and process.
  
• The investment climate determines progress, as
  the industry depends on major investments in long
  investment cycles.
  
• The technology race for technologies like black
  liquor gassification or biorefineries is not run
  yet. Let alone for CCS.
  
• The step from lab to demo to full scale needs to
  be crossed.

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Feedback 2

• Todays workshop with estimates on tracking
  industrial emissions and future scenarios for
  emissions might be a bit premature.
  
• Both methodology and data collection still need
  work, before we in turn can assess the estimates
  of IEA in a proper way.
  
• Also energy data have a clear competition law
  element and global management needs to be
  organised.

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Summary

• We clearly recognise the urgent need and
  challenges.
  
• We need a joint industry and government approach
  to jump the hurdles described.
  
• But that is not the debate if there will be CCS
  by 2015, but on how to bring 5000 companies
  together in a single approach.
  
• We look forward to this debate.

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