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Commission of the European Communities energy Energy audit No 3 Pulp, paper and board industry in the European Economic Community
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Page 1: CDNA08792ENC_001

Commission of the European Communities

energy

Energy audit No 3

Pulp, paper and board industry in the European Economic Community

Page 2: CDNA08792ENC_001
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Commission of the European Communities

energy

Energy audit No 3

Pulp, paper and board industry in the European Economic Community

PA Management Consultants Ltd

68 Knightsbridge London SW1 X7LJ

United Kingdom

Contract No XVI l/AR/81/468

Directorate-General Energy

1983 EUR 8792 EN

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Published by the COMMISSION OF THE EUROPEAN COMMUNITIES

Directorate-General Telecommunications, Information Industries and Innovation

Bâtiment Jean Monnet LUXEMBOURG

LEGAL NOTICE Neither the Commission of the European Communities nor any person acting on behalf of the Commission is responsible for the use which might be made of the

following information

Cataloguing data can be found at the end of this publication

This report has been prepared by a private consultant and does not necessarily reflect the opinions of the Commission of the

European Communities

Luxembourg, Office for Official Publications of the European Communities, 1988

ISBN 92-825-4063-4 Catalogue number :

© ECSC-EEC-EAEC, Brussels · Luxembourg, 1983

Printed in Belgium

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CONTENTS

PAGE NO.

1. ACKNOWLEDGEMENTS 1

2. BACKGROUND TO ENERGY AUDIT OF THE EEC PULP, PAPER

AND BOARD INDUSTRY ■ 2

2.1 Methodology

2.2 Availability of Data

2.3 Comparability of Data

3. SUMMARY OF REPORT 4

3.1 Key Findings

3.2 Conclusions and Recommendations

3.3 Energy Saving Potential

4. OVERVIEW OF THE EEC PULP, PAPER AND BOARD INDUSTRY 1 5

4.1 Background

4.2 Size and Structure

4.3 Current Economic Situation

4.4 Trends within the Industry

4.5 The Pulp, Paper and Board Industry in Member States

5. ENERGY AUDIT OF THE EEC PULP, PAPER AND BOARD INDUSTRY 4 5

5 .1 Significance of Energy

5.2 Costs of Energy

5.3 Energy Consumption in Pulp, Paper and Board Manufacture

5.4 Audits of Mills im Member States

5.5 The Role of combined Heat and Power

6. ENERGY MANAGEMENT PRACTICE 7 0

6.1 Current Situation

6.2 Possible Difficulties with some Energy Management

Organisation Structures

6.3 Organising for Efficient Energy Management

7. METHODS OF INCREASING ENERGY EFFICIENCY 74

7.1 Energy Saving

7.2 No, Low and High Cost Energy Conservation Measures

7.3 Technical Aspects of Energy Saving Opportunities

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IV

8. CONTROLS, TARGETING AND MONITORING 86

8.1 Current Situation 8.2 Conclusions

9. BARRIERS TO IMPLEt4ENTATION 9 1

9.1 Financial Resources 9.2 Market Considerations/Economic Environment 9.3 Technical Barriers 9.4 Attitude of Government and Member Federations

APPENDIX 97 I TECHNOLOGY OF PAPER MAKING

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ACKNOWLEDGEMENTS

We would like to acknowledge the considerable assistance provided during the study by:

Mr J Adams and Mr A Marriott of the British Paper and Board Industry Federation

Monsieur M Alle of the Programmation de la Politique Scientifique, Government of Belgium

Dr Gigliotti of the Associazone Italiana Carta, Cartoni e Paste per Carta (ASSOCARTA)

Professor R Jottrand and Dr E Tomas of the Universite Libre de Bruxelles

Mr A de Monts and staff of tne Confederation Europeene de l'Inaustrie des Pates, Papiers et Cartons (CEPAC)

Mr E Persson of Sammenslutningen af Danske Papir-, Pap og Cellulosefabrikker

Mr A Smith of Comhlact Muilte Paiper na h'Eireann

Monsieur H Vermelln of the Confederation Française de l'Industrie de Pâtes Papiers, Cartons et Celluloses

Monsieur F de Walque of Association des Fabricants de Pâtes, Papiers et Cartons en Belgique (COBELPA)

Mijnheer W Wuijster of the Dutch Paper and Board Makers Association

The study would not have been possible without their full cooperation.

Tne energy audits in Greece and in Italy were conducted by consultants nominated by the Directorate General DG XVII of the EEC and subcontracted to PA Management Consultants.

Econerg s.r.l. undertook the study in Italy and Resource Planning Consultants were responsible for the study in Greece.

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2. BACKGROUND TO ENERGY AUDITS OF THE EEC PULP, PAPER AND BOARD INDUSTRY

2.1 Methodology

The methodology has been based upon:

a) development of a detailed questionnaire

b) based upon the questionnaire, in-depth discussions with CEPAC and senior executives of the member federations of CEPAC

c) a limited number of visits to pulp, paper, and board mills in several member states

d) discussions with a selection of organisations/ companies supplying energy audit and management systems and services to the pulp, paper and board industry

e) a careful analysis of relevant published data and data made available by both CEPAC and the associate federations.

The major thrust of our programme has involved working through the federations rather than at mill level. This approach has prevented unnecessary duplication in those countries where industry audits have been completed previously. Moreover, given the time and budgetary constraints of this assignment, it would not have been possible for PA Management Consultants, themselves to conduct in depth audits in all individual member states.

2.2 Availability of Data

Our assignment has relied to a large extent on the availability of previously conducted audits. In this connection there have been difficulties in both France and Germany.

We understand from discussions with the national federations in these countries that no comprehensive audits at a sector level, have been conducted. Therefore our comments on energy saving opportunities and the management of energy (based on the results of audits that have been conducted) may not be totally appropriate. However, our limited exposure to energy management in the pulp, paper and board industries in these countries suggests that many of the recommendations proposed in Section 4 are very relevant and contain much that will be useful to the sector in both countries.

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2.3 Comparability of Data

Considerable efforts have been made to obtain data from individual countries that is as comparable as possible. A number of difficulties have arisen in this context because :

differing product classifications have sometimes been used. (Not all audits are based upon the CEPAC. system)

not all audits contain the same data and extrapolation to a common base is not possible

audits have been conducted at varying points in time in the period 1977-1982.

Another source of problems of direct comparability arises because no two mills:

produce identical products

have an identical output mix

process identical raw materials.

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3. SUMMARY OF REPORT

3.1 Key Findings

3.1.1 Size, Structure and Current Economic Situation

The pulp, paper and board industry in the EEC ranks as a major supplier to world markets behind the North American and Scandinavian countries (the Norscan block). Paper and board output in 1981 totalled some 24 million tonnes (some 0.3 million tonnes lower than in 1980), and accounted for almost 75% of domestic consumption. Pulp production in 198I fell by 7% from 198O levels to ca. 5.5 million tonnes.

In broad terms, the community industry is characterised by:

limited vertical integration (many mills rely on imported pulp)

small average mill capacity (ca-40,000 tonnes, compared with mill capacities in Norscan countries of over 110,000 tonnes

industry rationalisation with a large number of mill closures in recent years particularly in the UK and in Italy. (In the period 1970-80 the number of mills producing less than 50,000 tonnes of paper and board dropped by 40%).

The decline in__the number of mills is a consequence of reduced mill profitability stemming, in particular, from:

declining/stagnant demand (as a result of the current world recession)

competitive pressures.

The competition is characterised by:

a high degree of vertical integration and accessibility to raw materials

high average capacity of mills permitting them to benefit from economies of scale

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competitively priced energy stemming from for example, government pricing policy (a historical refusal by governments in some Norscan countries to charge "commercial" prices for natural gas), abundant sources of hydroelectric power, government commitment to a nuclear power programme.

The near future of the EEC industry is likely to be one of:

continuing rationalisation

specialisation. Already a number of the member states with smaller industries (eg Denmark) base their development strategy on increased exports of specialist and high quality papers. Concentration on higher added value products enables them to exploit a market niche that larger competitors, for reason of scale, are less prepared to enter. However, it is anticipated that this trend to specialisation will be much less marked in member countries with large pulp, paper and board industries eg West Germany.

increased competition as tariffs are abolished on the import of products from Scandinavian mills (1984).

In order to maintain any measure of competitiveness EEC mills will need to improve control of costs (both fixed and variable). A key element in this cost control programme is energy. Recognition of the need to conserve energy is widespread. However, the extent to which energy saving opportunities have been identified and implemented varies considerably between the member states.

3.1.2 Energy Consumption and Costs

Primary energy used is estimated at ca. 595PJ derived from the following sources:

Fuel Oil ca. 33%

Electricity ca. 40% (as primary energy)

Natural Gas ca. 19%

Coal ca. 7%

Otner fuels remainder (eg wood waste)

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Energy costs as a percentage of production costs have shown a historical increase in all member states. In those community members with large paper and board industries, energy costs, on average, represented between 11% and 15% of total production costs in 1980. This proportion tends to be higher for cheap standard products such as newsprint than for more specialised products. The Norscan countries have traditionally benefited from cheaper energy. Reasons for this include:

the reluctance of North American gas suppliers to price gas commercially

the benefits that both Sweden and Canada have derived from abundant hydro-electric sources

the expansion of nuclear power in Sweden, Canada and North America.

Recent indications suggest that the discrepancies in pricing between the Norscan countries and the EEC member states are narrowing in both gas and electricity.

3.1.3 Energy Usage

The main functions for which energy is used are:

drying (typically over 70% of process heat)

refining of pulp and slushing of waste (typically ca. 30-65% of electricity)

paper machine operation (30-60% of electricity)

cleaning of waste, where required (up to 30% of process heat).

3.1.4 Energy Audits of Pulp, Paper and Board Industries of Member States

Audit data for all member states, with the exception of West Germany and France, has been examined and reviewed. For reasons indicated in Section 3·3 much of the audit data for individual countries is not directly comparable with data for other countries. Where comparative data is available, there are clear

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differences in performance (measured in terms of energy consumption/tonne). Italy, despite having a large number of small inefficient mills, nas an average mill energy consumption that compares well with mills in other member states. The mills in some (but by no means all) of the smaller member states lack both the technical expertise to identify all energy saving opportunities and the management resource to implement them. In those member countries with large paper industry sectors, recognition of the need to identify and implement conservation opportunities is very widespread and systems to manage implementation are developing. Nevertheless, there continues to be a relatively large proportion of mills where only limited action has been taken to date.

3.1.5 Combined Heat and Power

Historically, all the member states with significant paper and board industries have relied strongly on Combined Heat and Power. However, many of these installations are old and steam pressures are too low for the generation of sufficient electricity for a modern paper mill. In all member states, the proportion of electricity has declined. The situation is not expected to change in the near future since current levels of profitability do not, in most cases, permit the large capital investments necessary to replace CHP plant.

Additionally, the energy requirement balance has altered progressively in favour of electricity, with the result that, with some exceptions, a back pressure turbine is the only form of steam turbine tnat should be considered when a public electricity supply is also available.

3.1.6 Involvement of Member Federations in the Energy Conservation Effort

The involvement of individual federations in energy conservation varies widely. The British Paper and Board Industries Federation (BPBIF) has seized the initiative on energy conservation and coordinates and advises the UK industry on all aspects of energy conservation and management. The pivotal role of the BPBIF

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is not matched by any other community federations (although the Dutch, Italian and, to a lesser extent Belgian federations, are also strongly committed to the energy conservation effort).

The role of most other federations in energy conservation is supportive rather than initiating, since they tend to lack the necessary technical expertise.

3.2 Key Conclusions and Recommendations

Recognition of the need to conserve energy is widespread in the industry throughout the member states. However, in a number of countries and many mills:

energy conservation opportunities are being neglected

implementation of energy conservation programmes is not always fully effective.

Reasons for tnis include

in depth audits at the national level in all member states have not yet been conducted.

although at mill level, there may be top management commitment to energy saving, this commitment is not communicated to the work force and/or the methods currently used to manage energy conservation programmes are ineffective

lack of knowledge of the technical aspects of energy conservation

financial constraints.

3.2.1 Energy Audits

Energy audits of the pulp, paper and board industry have been conducted at national level in Belgium, the Netherlands and the United Kingdom. In other member states, energy audits have been less comprehensive and generally confined to mill level. Hence, mills in these countries could be denied useful data that would enable them to estimate, in comparison with other mills how efficiently they use energy.

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9 -

We recommend therefore tnat outstanding audits be conducted without delay. Given the limited amount of currently available data (for member states) that is directly comparable these audits should be on the basis of guidelines developed for an EEC wide audit.

3.2.2 Managing Energy Conservation at Mill Level

Effective conservation of energy depends upon:

top management commitment

communication of this commitment

the correct approach to managing energy.

a) Top Management Commitment

This is essential in sustaining concern by other levels of management and the workforce in the conservation of energy.

This commitment can be increased by a number of methods eg existence of conservation targets, an awareness of the impact of energy conservation on profitability. However, it is important that attention to Conservation is not diverted by eg other business priorities, doubts about the efficiency of some energy conservation measures and insufficient management resource.

b) Communicating Commitment

It will be vital to communicate commitment to lower levels of management, suitable vehicles for this could include

circulating data demonstrating the effect of energy conservation on profitability

establishing an energy committee with top management representation

monitoring performance against targets.

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c) The Correct Approach

The approach to energy management must encompass

energy management organisation

energy management systems

communications and allocation of resources

setting of energy targets and controls.

However, no single approach is appropriate for all mills. The approach will need to be tailored to the individual mill bearing in mind factors such as mill size, energy conservation history, management style. However, we recommend that all approaches must be based upon:

allocating ownership of the problem ie who owns the problem

categorising the cost and benefit ie no cost with immediate payback low cost with short/medium term payback and high cost with long term payback.

targeting and monitoring. This enables the effects of any conservation measures to be monitored and evaluated, tighter management control to be exerted over energy costs and usage and equipment deficiencies to be highlighted to an early stage.

Ideally, management should adopt a multi-disciplinary approach to energy management rather than rely on an Energy Manager since the latter could dilute the sense of responsibility among other managers, particularly those in production.

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3.2.3 Technical Aspects

a) Given the considerable advantages that can accrue from the wider use of CHP, we recommend a detailed investigation into the application of CHP systems in the paper and board industry.

b) Moreover, there are a number of other technical aspects that could enhance energy conservation opportunities but to which, for a number of reasons, management are wary of committing themselves, without support. The benefits arising from, for example Research, Development and Demonstration Projects in selected mills and funded at community or national level would be considerable and could easily be adopted by other mills.

Energy Committees within individual member federations would oversee these projects (where necessary being advised and supported by outside consultants with experience of the paper industry). The federations would be responsible for disseminating the results of these projects and recommendations arising.

c) The particular measures recommended for research, development and demonstration projects are:

heat recovery from dryer exhausts, as a means of heating air for ventilating the dryers. Provision of hoods can offer savings of up to one third of the quantities of dry air required to remove 1 tonne of water. On machines fitted with machine glazed or Yankee cylinders, the savings are even larger

improved techniques for moisture measurement within the press section and at the boundary between the press and dryer section

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12

producing control systems for dryers. Given that over 70% of all process heat, is for drying, small percentage savings (through improved control) would have a significant effect on total energy consumption

alternatives to using live steam in slushers for the treatment of waste. Slushers use steam often in considerable quantities. This is an unnecessary use of high grade heat since only a flow of hot water (50-70°C) is required. Using water at such temperatures is a valuable outlet for recovered heat

mechanical vapour recompression. Superheated steam is used in air caps. The moisture collected by the steam is extracted in a vapour recompression cycle so that the latent heat can be recycled

research into refining. It has been suggested that only a small proportion of the energy input used in refining is for the intended function. The rest is dissipated in raising the temperature of the stock. A new, more efficient method of treating fibres is required. Until this is available, it is important to develop ways of controlling the refining action on existing plant and minimising the energy input for a given refiner

upgrading waste fibres. Current limitations on cleaning waste pulp and upgrading waste fibres means that, for some high quality products, only virgin fibres can be used. Research is needed into methods of cleaning these waste pulps and upgrading their fibres so that they can be used for a wider range of products

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cleaning and deinking waste paper. Recycled paper is increasingly important as a source of raw material. The benefits, in energy terms of using recycled paper (rather than virgin pulp) are clear. Of particular importance is the deinking and bleaching of printed paper, to a brightness approaching that of the unprinted paper.

3.2.4 Financial Assistance

The implementation of the total range of energy conservation opportunities is hindered by the shortage, within individual mills, of sufficient funds. We recommend therefore that opportunities be investigated:

at a national level, for increased financial incentives, additional to those currently offered

at community level for financial incentives eg very soft loans or financial guarantees :

3.2.5 Role of CEPAC

We recommend that CEPAC take a leading role in the organisation and development of an energy auditing system that is appropriate for all member states. This will facilitate inter-country comparisons and enable mills with below average energy conservation performance to benefit from a much larger data base and wider experience in energy conservation than would be the case if they were forced to rely only on the experience of the domestic industry. Similarly CEPAC should oversee the development of community wide targeting and monitoring systems to aid in the implementation of identified conservation opportunities.

3.2.6 Role of Individual Federations

The initiative for improving energy management should be taken by the industry rather than by government. Hence, we recommend that the programme outlined in Section 4.2.5 should be implemented in member states under the aegis of

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the Energy Committees of the individual federations but in close consultation with CEPAC. The federations would have an advisory role on energy managmement comprising for example :

circulating improved comparative energy usage information

publicising successful conservation measures

publicising progress on research, development and demonstration projects and other new developments

assistance in evaluating potential cost-effective energy savings

Where appropriate, the federations should draw on the resources of external agencies in order to establish the systems necessary for this advisory service.

3.3 Energy Saving Potential

Implementation of all no, low and high cost conservation opportunities (excluding those arising from the installation of CHP) could, in the longer term, save as much as 25% of energy consumed. For the pulp, paper and board sector this could mean savings of up to ca 150 PJ of annual energy consumed. In the medium term, the implementation of the no and low cost opportunities could save, it is estimated upwards of 90 ΡJ annually. In actual terms, savings would be somewhat less since some of the no and low cost opportunities have already been implemented.

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15

OVERVIEW OF THE EEC PULP, PAPER AND BOARD INDUSTRY

4.1 Background

4.1.1 Technology

Paper is an aqueous deposit of vegetable fibres in sheet form. The vegetable fibres consist primarily of cellulose fibre, derived mainly from wood. The fibres are separated by pulping and are then bleached. The multitude of tiny fibres produced by this process is known as pulp.

The pulp is then dispersed in water, at which stage, recycled (waste) paper may be added. The mixture is then cleaned and refined. The refined material passes to the paper making machine where it is spread evenly over a moving, continuous wire mesh band (tne "fourdrinier"). Water drains from the pulp leaving behind a wet layer of paper on top of the fourdrinier. This wet paper web passes from the fourdrinier onto a felt. Together these pass through a succession of roll presses to remove more water from the web. The moist paper web is then dried by passing over a number of steam heated cylinders. Figure I overleaf indicates the key processes.

In manufacturing terms, the paper and board making industry is divided between those companies that, on one site, buy in raw wood and process it, without interruption, to the final paper/board product (integrated mills) and companies who lack pulping equipment and must purchase dried pulp.

Integrated mills can enjoy a considerable cost advantage over paper/board mills. Their continuous processing eliminates the need for additional drying of the pulp, prior to transportation to the paper/board mill. This is wasteful in energy terms since the dried pulp must be redispersed in water prior to further processing.

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FIG. 1

KEY STEPS IN PAPER MAKING

Vegetable Fibres fe

Pulping, Bleaching

Separated Fibres

1 Recycled Paper

fe Stock*'

Preparation

Modified Fibres

fc. Forming Drainage

Moist Web

^ Drying

Finishing

Paper/ Board

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17 -

4.1.2 Paper and Board Products

Modifications of the basic process described in Section 5.1.1 enable a wide range of types of paper and board to be produced. Dependent upon the particular process variation, paper can be produced that is, for example,

opaque or transluscent

flammable or fire-resistant

permeable or impermeable

degradeable or non-degradeable.

The distinction between paper and board is based on mass per unit area. (Material having an area density below 220 gm/m^ is classed as paper, otherwise it is classed as board.) Moreover, papers are generally produced in a single ply whereas boards are multi-ply sheets, often with different types of fibres in the various layers.

For the classification of paper and board, CEPAC use four major groupings:

papers for graphic use (newspaper, printing and writing)

wrappings and packaging (kraft-liner, bleached sulphite, case materials such as 1 corrugated board *)

industrial and special purpose papers and packaging boards

papers for other uses (mainly household tissues)

a) Graphic Papers

Newspaper must be suitable for printing at high speed. It is derived from mechanical pulp and produced on very large high speed machines. Printings and writings are, generally, white papers made from a mixture of chemical and mechanical pulps

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with mineral fillers to increase the capacity. These papers are used for:

books stationery magazines

b) Wrappings and Packagings

Wrapping and packagings include papers for wrapping, bags and sacks and board materials for boxes and cases.

Wrapping papers are produced from recycled waste paper and from chemical pulps. Case materials include corrugated board in which three layers of paper are laminated together. The middle ply ("fluting") is corrugated during the process and interposed between the outer layers ("liners"). The resultant material is light but strong. Fluting is produced normally, from a mixture of waste paper and semi-chemical pulp (although 100 per cent mixed waste can be used). Liners are made from waste paper with added kraft pulp.

c) Industrial and Special Papers, Boards and Packaging Boards

Industrial and special papers and boards comprise a wide variety of products normally produced from chemical pulps. Packaging boards are used typically for retail cartons, consisting of a multi-ply sandwich of:

a layer of bleached chemical pulp several layers made from waste a backing made from mechanical pulp.

d) Papers for Other Uses

Household tissues consist mainly of toilet tissue, kitchen paper, facial tissue and handkerchiefs. They are made from chemical and mechanical pulps and from selected waste which does not require much cleaning.

Most mills produce a variety of grades of paper. For ease of classification, mills are grouped according to their major product.

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4.2 Size and Structure of the EEC Paper, Pulp and Board Industry

4.2.1 Size

As Tables I and II indicate, the EEC is a major producer of pulp, paper and board.

EEC countries account for about one seventh of total world output of paper and board and in 198I totalled almost 24 million tonnes, worth ca. $16 billion in sales terms. Domestic production of paper and board accounted for almost 75% of consumption in 1981.

4.2.2 Structure

Key points to note concerning the structure of the EEC pulp, paper and board industry are:

the comparatively small proportion of mills that are integrated

the small average capacity of mills compared with those in North America and Scandinavia (the Norscan countries)

continuing rationalisation in the industry

Table III sets out details of the number of pulp, paper and board mills in the member states.

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TABLE I

WORLD PAPER AND BOARD PRODUCTION BY GRADE I98O-8I

(1,000 tons)

Country

EEC Scandinavia

Other W.Europe

Total W.Europe

E.Europe

Total Europe

North America

Asia

Latin America

Australasia

Africa

World Total

Neswprint

1980

1,783

3,692

494 5,969

1,987

7,956

12,863

3,560

498 552

225 25,654

1981

1,583

3,999

504 6,086

1,978

8,064

13,698

3,492

520 565 304

26,643

Printing/ Wrapping

1980

8,935

3,362

1,720

14,017 2,286

16,303

15,355

6,363

1,757

256 441

40,475

1981

8,928

3,355

1,746

14,029 2,481

16,510

15,465

5,988

1,753

237 371

40,324

Packaging Paper

1980

6,519

4,676

2,096

13,291

3,825

17,116

25,360

9,863

3,491

175 647

56,652

1981

6,417

4,542

2,128

13,087

3,902

16,989 25,681

9,354

3,371

218 638

56,251

Other

1980

2,363

738 609

3,710

2,390

6,100

6,321

4,746

1,015

1,080

106 19,368

Paper

1981

2,407

712 656

3,775

2,199

5,974

6,200

4,777

1,003

997 121

19,072

Board

1980

4,692

1,013

712 6,417 4,758

11,175

10,326

4,087

971 91 323

26,973

1981

4,663

1,031

714 6,408

4,871

11,279

10,251

4,180

901 88 336

27,035

O

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TABLE II

WORLD PULP PRODUCTION BY MAIN TYPE 1980-81

(1,000 tons)

Country

EEC Scandinavia

Other W.Europe

Total W.Europe

E.Europe

Total Europe

North America

Asia

Latin America

Australasia

Africa

World Total

Chemical

1980

2,166

10,981

2,740

15,887

9,283

25,170

48,473

8,068

4,350

722 615

87,398

1981

2,051

11,011

2,762

15,824

9,299

25,123 48,581

7,396

4,294

753 518

86,665

Mechanical

1980

2,637

5,227

611 8,475

2,608

11,083

11,830

2,448

531 801 202

26,895

1981

2,511

5,297

634 8,442

2,629

11,071

12,457

2,316

522 760 269

27,395

Other

1980

1,122

1,209

357 2,688

1,223

3,911

5,666

5,758

899 0

502 16,736

1981

941 1,160

369 2,470

1,257

3,727

5,396

5,449

906 0

680 16,158

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TABLE III

NUMBER OF MILLS PRODUCING PULP, PAPER AND BOARD IN EEC (1981)

No of Paper and Paper and Board Mills

Paper and Board Capacity (000' tons)

No of Pulp Mills

Pulp Capacity (000' tons)

Belgium

17

905

3

400

Denmark

6

318

3

133

Eire

2

70

-

-

France

172

5,550

28

2,000

West Germany

200

10,028

37

2,322

Greece

18

355

4

65

Italy

480

5,850

55

1,350

Lux·bg

-

-

Netherlands

35

1,880

5

212

United Kingdom

117

3,900

3

133

Total

1,047

28,806

138

6,662

Source: Pulp and Paper International

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a) Vertical Integration

The abundance of conveniently located forests enables many mills in Norscan countries to achieve economies through vertical integration. By contrast, many mills in EEC countries must import their raw materials. Thus, for many EEC producers, opportunities for vertical integration are more limited.

b) Reliance on Imported Materials

The paper industries in all the producing countries of the EEC rely, to a greater or lesser extent, on imported pulp. In some of the larger countries eg West Germany, France and Italy the quantities of domestically produced pulp are broadly comparable with those of imported pulp. However, other member states eg United Kingdom, and the Netherlands rely on imports for up to 95% of their chemical pulp consumption requirements. (Imports of Mechanical Pulp into both the Netherlands and the UK are in percentage terms lower since both countries have significant domestic production of this product.)

c) Limited Mill Size

The average capacity of a paper mill in the EEC is 27,500 tonnes. Excluding Italy,.which has almost 50% of the EEC mills, many of them very small, the average size is marginally over 40,000 tonnes. In North America the average capacity of a paper mill is 113,000 tonnes ; in Finland and Sweden the average is ca. 130,000 tonnes.

d) Rationalisation

The EEC paper industry has undergone major rationalisation in the period 1970-80. The number of smaller mills, (those producing less than 50,000 tonnes a year) was reduced by almost 40% during this period whilst the number of mills producing over 50,000 tonnes a year increased from 118 in 1973 to 130 in 1980, (an increase of over 10% on the number of mills in 1973).

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24 -

A similar contraction has occurred in the pulp industry. Between 1973 and 198O the number of mills producing less than 100,000 tonnes a year fell from 149 to 90 (a decrease of almost 40% over the 1973 figure) whilst the number of pulp mills producing over 100,000 tonnes a year increased from 12 to 17 (an increase of over 40%).

4·3 Current Economic Situation

4.3.1 Supply/Demand

Paper and board production in the EEC member states fell by over 300,000 tonnes in the period I98O-8I, the second successive annual decline. The drop in output was not spread equally over the 10 member states.

In the Federal Republic of Germany (BRD) production rose by over 200,000 tonnes to a record 7·8 million tonnes. In Belgium and Denmark moderate increases were recorded.

Two countries accounted for the bulk of the decline in output. In the UK, production fell by 400,000 tonnes to 3.4 million tonnes and in Italy by 100,000 tonnes to 4.8 million tonnes. Throughout the EEC some 50 paper and board mills ceased operations in 198I.

Pulp production in the EEC also continued to decline in 198I. Production fell by over 7% to 5.5 million tonnes, while capacity was cut by a little over 300,000 tonnes to 6.7 million tonnes. Over 20 pulp mills were closed in 1981, the bulk of them in Italy.

Per capita consumption of paper and board in the EEC is less than half that in the United States (130 kg versus 280 kg). Although much of the US consumption is very wasteful, there would still appear to be considerable scope for an increase in market size in the EEC. Opinions are divided on whether EEC consumption will, in the foreseeable future, match that in the US. Between 1967 and 1972, EEC paper and board consumption was rising at 4.5% annually. However, in the period 1975-80, growth declined to 2.7% a year.

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25

Demand for paper products is linked closely to economic growth, which is not expected to be very dramatic in the short term. Moreover, costs of paper and board products have risen sharply since the 1960's. Thus, the member states of the EEC are not expected to provide a very buoyant market for some time.

4.3.2 Problems Facing the Industry

The future development of the pulp, .paper and board industry is threatened by strong commercial pressures from, in particular, the Norscan countries with their ready access to raw materials and the scale of their integration. Other key problems currently facing the industry are

dependence on imported raw materials (a portion of which are supplied by direct competitors)

the cost of raw materials and of energy

lack of profitability and thus, lack of investment in more productive and less energy intensive equipment.

Moreover, to these current problems will be added, probably in 1984, the increased competitiveness of Scandinavian pulp and paper exports. This arises from the abolition of EEC import tariffs on these products from European Free Trade Association members. Longer term, the reduction of tariffs to North American suppliers can be expected to further increase pressure on the pulp and paper industry in the EEC.

If the EEC pulp, paper and board industry is to have a secure future, it will depend to a large extent on increased cooperation between the industries of member states on initiatives organised at community level.

a) Dependence on Imports

The dependence of the EEC Pulp and Paper Industry on imported raw materials has already been noted. (Section 5.2.2 b). Member states have reacted by increasing the quantities of waste paper that are

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26 -

recycled. (Waste paper in 1980 accounted for 43.2% of total paper and board production compared with 39.5% in 1973·)

b) Cost of Raw Materials

Considerable quantities of raw materials used by the EEC paper and board industry are purchased from Scandinavian countries. As Table IV indicates EEC mills suffer a considerable price disadvantage when compared with North American mills.

TABLE IV

COMPARATIVE WOOD COSTS: SELECTED COUNTRIES (Winter 1980/81)

Country

Finland

Sweden

Canada (East)

Canada (West)

US (West)

US (South)

US $/tonne (ex.mill)

250.0

225.0

150.0

125.0

125.0

100.0

Source : Kidder, Peabody

c) Relative Costs of Energy

Industry in the member states of the EEC must pay more overall for its energy than its North American and Scandinavian competitors. (This is discussed in detail in Section 6.2.)

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- 27

These problems are faced by all member states to varying degrees. In addition each country has its own individual problems. These are discussed in Section 5.5.

d) Lack of Profitability/Lack of Investment

The rate of return on sales for industries with relatively low R & D expenditure (of which the paper industry is a good example) is consistently lower in the EEC than in the USA. A consequence of this is that many paper companies in the EEC are unable to generate sufficient capital to make the large investments necessary for the more economic production of paper and board products. More recent comparative figures are not available.

TABLE V

CAPITAL INVESTMENT AS % OF SALES BY MAJOR PAPER PRODUCING COUNTRIES (1979)

Country

USA Finland

Canada ] Sweden ] Germany ]

UK France

%

14.0

10.3

9.5

4.7 3.4

Source : Jaako Pöyry Survey.

4.4 Trends within the EEC Pulp, Paper and Board Industry

4.4.1 Continuing Rationalisation

Mill closures are expected to continue, although at a slower rate than in 1980 and 1981. The decline in mill population will be

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28 -

concentrated among the smaller, less efficient mills, particularly in those paper and board sectors where there is currently local overcapacity, eg wrapping paper in Italy.

4.4.2 Specialisation

The pulp, paper and board industries in a number of the smaller member states of the EEC eg Denmark, Greece, have based their export development on a programme of product specialisation, rather than attempting to compete across the total product range.

Hence, in Denmark, exports of fine writing and printing papers accounted for almost 60% of the increase in exports in the period 198O/8I.

4.4.3 Improved Control of Raw Material and Production Costs

Economic forecasts for Western Europe predict that demand for paper and board products is unlikely to grow strongly at least until 1985. In addition, beginning in 1984, domestic mills must compete against the output of Scandinavian mills made more price competitive through the abolition of import tariffs.

A key element in maintaining price competitiveness will be improved cost control.

Recognition of the need to control energy consumption (as a major cost item) is widespread amongst the paper industries of the member states. However, the extent to which energy saving opportunities have been identified and implemented varies considerably.

4.5 The Pulp, Paper and Board Industry in EEC Members States

Production figures for 1982 are not yet available but the indications, are that pulp, paper and board production has declined between 2 and 5%· The actual decline depending upon the particular product and the member state.

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29

4.5.1 Belgium

The government introduced a number of austerity measures in early 1982 designed to offset the economic difficulties arising from high unemployment, a large balance of payments deficit, zero growth and a large public sector borrowing requirement. Because of:

the comparatively small size of the market

the accessibility of the domestic market to foreign suppliers,

imports of paper and board products account for almost 75% of apparent consumption. Moreover to compete against imports from suppliers benefiting from economies of scale and low cost energy, Belgian mills have been forced to specialise to some extent.

Despite the difficulties, Belgium mills increased their output with a reduced number of mills (17) and fewer paper machines (33)· However in many cases, profitability was unsatisfactory because of the need to marginally price products to compete.

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30 -

TABLE VI

PAPER, BOARD AND PULP STATISTICS FOR BELGIUM

(1,000 tons)

PAPER AND BOARD

Newsprint

Printings/Writings

Casemaking Materials

Other Wrapping Papers

Tissue

Other Paper

Board

Total Paper & Board

PULP

Chemical

Mechanical

Other

Total Pulp

Market Pulp

Production

1980

102

436

106

39

92

18

71 864

219

140

0

359

189

1981

108

423

129

43

95

17

72

887

209 128

0

337

179

Imports

1980

134

341

193

112

17

37 152

986

329

59 4

392

0

1981

121

345

206

114

18

48

143

995

347 42

2

391

0

Exports

1980

34

292

70

37

23 4

20

480

142

1

0

143

0

1981

35

383

81

44

18

4

26

491

137

0

0

137 0

Source: Pulp and Paper International

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31

4.5.2 Denmark

1981 was a bad year for the Danish economy. However the economic performance of the Danish pulp, paper and board industry was better than in 198O. Profitability improved, aided by:

a 6% increase in paper production (capacity utilisation for paper and board totalled 84% in 198I; for pulp the corresponding figure was 88%)

an overall improvement in efficiency.

Moreover, the strengthening of the US dollar increased profitability considers ~j.y for exporters of Danish pulp. " decision by domestic producers to concentrate upon specialist/higher added value products for export has had considerable success and has enabled them to offset to some extent the problems arising from the accessibility of their market to the larger, more integrated competitors.

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32

TABLE VII

PAPER, BOARD AND PULP STATISTICS FOR DENMARK

(1,000 tons)

PAPER AND BOARD

Newsprint

Printings/Writings

Casemaking Materials

Other Wrapping Papers

Tissue

Other Paper

Board

Total Paper & Board

PULP

Chemical

Semichemical

Mechanical

Other Straw Pulp : Total Pulp Market Pulp

Production

1980

0

110

89 20

14

0

20

253

0

64

3 54

120 90

1981

0

123 88

20

14

0

23 268

0

63 0

54

117 88

Imports

1980

153

145

127

63 54

55

131 728

85

0

12

0

97

1981

164

137

128

62

53 60

144

747

95

1

17

0

112

Exports

1980

0

59

35 11

8

15

22

149

0

62

0

3

65

1981

0

76

38

12

7 18

23

173 !

0

61

0

3 64

Source: Pulp and Paper International

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- 33

4.5.3 Eire

In 1970, Eire had 5 mills and 10 machines making :

fine papers

board

fluting.

However, since then, contraction has occurred owing to:

lack of capital for investment

energy supply problems (no domestic source of cheap energy)

competitive pressures.

By 1980, only two mills remained.

Soaring energy costs caused one of these mills to close in October I98I. The remaining mill located near Dublin manufactures low quality wrapping paper, board and fluting from waste paper.

TABLE VIII

PAPER AND BOARD STATISTICS FOR EIRE

(1000 tons)

Printings/Writings

Packaging paper

Total

Production 198le 1980

20 23 ] ]

35 32 ]

55 55

Exports 1980

15

15

Imports I98O

278

278

Source: Pulp and Paper International e - Estimated

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34

4.5.4 France

French paper and board production declined fractionally during 1981, although tissue output grew strongly. Pulp production declined sharply (by more than 6%). However, capacity utilisation was high (94% in pulp and 86% in paper and board).

Demand in 1982 has been slack with prices under some pressure, although the weakness of the French franc has benefited market pulp and integrated producers.

Some sectors of the pulp, paper and board industry suffered seriously in I98I eg packaging paper and sulphite paper grades primarily from overseas competition. However, the new government has given indications that it is willing to assist the industry, and commissioned a report to make recommendations. Based upon these recommendations the industry is considering a series of major investments probably with substantial state aid.

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35

TABLE IX

PAPER, BOARD AND PULP STATISTICS FOR FRANCE

(1,000 tons)

PAPER AND BOARD

Newsprint

Printings/Writings

Casemaking Materials

Other Wrapping Papers

Tissue

Other Paper

Board

Total Paper & Board

PULP

Chemical

Semicnemical

Mechanical

Other

Total Pulp

Market Pulp

Production

1980

261 2,011

1,412

584 174 169 542

5,151

1,222

174 419 14

1,829

499

1981

267 2,009

1,426

549 185 160 552

5,148

1,174

127 399 16

1,715

487

Imports

1980

392 597 415 252 57 44

373 2,130

1,555

36 61 0

1,652

0

1981

373 654 367 298 59 41 382

2,174

1,557 28 66 0

1,651

0

Exports

1980

12 564 147 142 19 74 102

1,061

169 0 1 2

172 0

1981

11 553 147 192 19 69 98

1,091

149 0 0 4

154 0

Source: Pulp and Paper International

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36

4.5.5 Federal Republic of Germany

The generally depressed economic situation in 198I was reflected in the pulp, paper and board industry. Higher inflation and higher interest rates restricted the growth in general demand, consumption of goods and services as well as corporate investment.

In 198I, production of paper and board totalled 7.8 million tons some 3% higher than the previous record set in 198O. Capacity utilisation was 78% in paper and board, 87% in pulp. Domestic consumption was relatively static, the bulk of the additional production being channelled into exports. Exports increased to a record level of 1.9 million tons, some 25% of total production. The total sales turnover of the industry increased by 12% to ca. DM11,300 million although there was only 3% increase in volume. However, profit margins were squeezed by cost increases (totalling ca. 20%) in:

heavy fuel oil and natural gas

wood, imported pulp and additives.

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37

TABLE Χ

PAPER, BOARD AND PULP STATISTICS FOR WEST GERMANY

(1,000 tons)

PAPER AND BOARD

Newsprint

Printings/Writings

Casemaking Materials

Other Wrapping Papers

Tissue

Other Paper

Board

Total Paper & Board

PULP

Chemical

Semichemical

Mechanical

Dissolving

Other

Total Pulp

Market Pulp

Production

1980

606

3,045

1,289

307

515

285

1,533 7,580

618

73 1,148

156

0

1,995

298

1981

680

3,134

1,349

307 541

276

1,508

7,795

564

69

1,210

169

0

2,021

274

Imports

1980

869 1,144

884

359

51

169

295

3,771

2,219

18

87

111

11

2,446

0

1981

782

1,181

832

395

54

196

292

3,732

2,225

13

71

106

9 2,424

0

Exports

1980

81

761

236

84

36

155

356

1,709

77

0

0

33 0

110

0

1981

90

910

240

100

45

151

406

1,942

74

0

0

37

0

111

0

Source : Pulp and Paper International

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38

4.5.6 Greece

Reflecting the broader recession in the Greek economy, paper and board production is estimated to have decreased by more than 6% in 1981.

Profit margins have been under considerable pressure because:

of strict price controls

of the increasing cost of pulp imports

of the high cost of money. (A number of larger mills need considerable investment if they are to operate profitably.)

One positive development in recent years, in the Greek pulp paper and board industry, is the strong growth in exports. These are directed mainly to Middle Eastern countries. Greece is conveniently located for comparatively cheap transportation to this region.

TABLE XI

PAPER, BOARD AND PULP PRODUCTION IN GREECE (1,000 tons)

PAPER AND BOARD

Printings/Writings

Tissue

Total Paper & Board

PULP

Mechanical

Other, Straw

Total Pulp

Production

1980

na na 320

29 25 54

1981

na na 300

30 18 48

Imports

1980

na na 165

na na 100

1981

na na 160

na na

100e

Exports

1980

na na 57

na na na

1981

30 20 50

na na na

Source : Pulp and Paper International, na - not available

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39

4.5.7 Italy

The pulp, paper and board industry in 198I reflected the difficulties of the industrial sector as a whole with paper and board production falling by 1.8%. This figure masks a number of sharp declines (-15.6% newsprint, -11.8% corrugating medium) and strong increases (+16.8% linerboard and tissue). Profit margins were under considerable pressure because of:

the cost of imported pulp (denominated in dollars)

sharp increase in labour (+17·5%), fuel oil (+35.5%) and electric power (+27%), whilst paper and board prices rose by only 15.2%.

Considerable investment is being made in the tissue sector with output expected to increase by ca.50,000 tonnes/year in 1982.

A number of mills were closed in 198I because of financial difficulties. Moreover, it is anticipated that some of the smaller mills will be forced out of business in the near future because of legislation requiring tnem to instai expensive anti-pollution equipment.

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40

TABLE XII

PAPER, BOARD AND PULP STATISTICS FOR ITALY

(1,000 tons)

PAPER AND BOARD

Newsprint

Printings/Writings

Corrugating medium

Other Wrapping Papers

Tissue

Other Paper

Board

Total Paper & Board

PULP

Chemical

Semichemical

Mechanical

Other

Total Pulp

Production

1980

277

1,799

753 562

128

205 1,211

4,935

73 94

533 375e

l,075e

1981

234

1,805

665

531

149 214

1,246

4,844

95

94

493

280e

962e

Imports

1980

64

166

92

423

27 102

119

993

1,496

22

104

3

1,625

1981

99 208

89

365

21

99 86

963

1,376

21

67

5

1,469

Exports

1980

13 350

3

103

2

65 148

684

8

0

0

1

9

1981

12

442

3

123

8

69 164

821

12

0

0

0

12

Operating rate (%)e

1980

89 82

79

81

75

73 86

84

73 78

82

63

73

1981

76

82

72

77

78

76

88

83

86

78

76

60

71

Source: Pulp and Paper International

e - estimated

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41

4.5.8 Netherlands

The problems of the pulp, paper and board industry reflect the national economic difficulties, with

output down by 1.8% cf. 1980 (see Table XIII)

cost pressures of increasing raw material, wages and energy prices

pulp, paper and board capacity reduced through 5 mill closures since 198O (3 paper and board; 2 pulp). The domestic industry nas not been helped by:

large increases in pulp prices

strengthening of the dollar

large increases in energy prices.

Because of the recession, it has not been possible to pass on all price increases to the consumer.

The Netherlands paper industry places considerable emphasis on the rational use of energy. The National Federation (VNP) has coordinated a nationwide review of energy management practice in the industry and in November I98I offered the final report to the Minister of Economic Affairs.

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- 42

TABLE XIII

PAPER, BOARD AND PULP STATISTICS FOR THE NETHERLANDS

(1,000 tons)

PAPER AND BOARD

Newsprint

Printings/Writings

Casemaking Materials & Other Wrapping Papers

Tissue and Other Paper

Board (Incl. Linerboard)

Total Paper & Board

PULP

Chemical

Semichemical

Mechanical

Other

Total Pulp

Production

1980

176 571

264 121 582

1,714

0 0

201 5

206

1981

180 514

282 126 581

1,683

0 0

161 1

162

Imports

1980

335 467

342 44 196

1,384

560 4 54 6

624

1981

288

513

553*

29 na

1,383

510 5 39 6

560

Exports

1980

51 400

119 22 305 897

9 0 7 0 16

1981

47 405

407*

14 na

873

3 0 1 0 4

Source: Pulp and Paper International

na - not available

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4.5.9 United Kingdom

The UK industry has suffered a dramatic decline since 1979· Production of paper and board in 1981 (see Table XIV) fell to the lowest level since 1967, with 18 mills closing in I98I. Consumption was some 1% higher than in 198O, whilst import penetration increased to 58%.

Continuing economic difficulties in the UK market has accelerated the pace at which UK companies have expanded overseas (assisted by the abolition of foreign exchange controls). The expansion has been through diversification rather than integration, with flexible packaging companies being among the most popular acquisitions.

A national programme, coordinated by the Britisn Paper and Board Industries Federation (BPBIF) aimed at assisting the industry to make more rational use of energy has been a key feature in recent years. The programme has had considerable success, with the BPBIF claiming that the British paper and board industry raised it's energy efficiency by 10% in 198I.

Certainly, all available evidence, suggests that at national level, the UK paper and board industry has, the most comprehensive energy monitoring and targeting programme in the EEC.

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TABLE XIV

PAPER, BOARD AND PULP STATISTICS FOR UK

(1,000 tons)

PAPER AND BOARD

Newsprint

Printings/Writings

Casemaking Materials

Other Wrapping Papers

Tissue

Other Paper

Board

Total Paper & Board

PULP

Cnemical

Semichemical

Mecnanical

Other

Total Pulp

Production

1980

361 963 883 211 435 207 733

3,793

34 88 164 0

286

1981

114 920 853 183 440 190 681

3,381

0 50 90 0

140

Imports

1980

1,076

823 863 294 71 383 na

3,510

1,381

12 184 11

1,588

1981

na na na na na na na na

1,339

12 194 11

1,556

Exports

1980

58 122 64 21 7

194 na 466

4 0 1 0 5

1981

na na na na na na na na

na na na na na

Source: Pulp and Paper International

na - not available

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45 -

5. ENERGY AUDIT OF THE EEC PULP, PAPER AND BOARD INDUSTRY

5.1 Significance of Energy

Two key factors emerge from a study of energy usage in the pulp, paper and board industry of the EEC:

the significant consumption of energy in absolute terms

the increasing importance of energy costs·as a percentage of total production costs.

Table XV sets out details of energy consumption of the industry:

by country

by source of energy.

The amount of energy consumed by this sector as a proportion of total energy consumption by the industrial sector varies by country and the size of the pulp, paper and board industry in relation to total industry. However, typical examples are:

primary energy consumption in the sector in the Netherlands in 1979 accounted for 2.3% of total industrial consumption

in Italy, energy consumption in this sector represented 3«7% of total industrial usage (excluding that of the energy industries).

Of particular concern to the industry is the rate at which energy costs have increased in relation to production/sales costs (Table XVI).

5.2 Energy Costs

The oil crisis of 1979 had a dramatic effect on energy prices. The resulting disruption led to wide differentials in national pricing. By late 198I, prices had to some extent stabilised with governments and national utilities making price adjustments. Most of the adjustments have been upwards, eg the price of gas in the Netherlands. However, there have also been attempts to restrain soaring prices eg the British Gas Corporation froze prices in 1981. Nevertheless, even though the gaps between energy charges in various countries are narrowing they still remain, and a number continue to be significant. This is particularly the case for fuel oil.

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TABLE XV

ENERGY USAGE BY PULP, PAPER AND BOARD INDUSTRIES IN EEC COUNTRIES

Natural Gas (million cu.m)

Electricity (Millions KWh)

Coal (000 tonnes)

Oil (000 tonnes)

Other Fuels (PJ)

Total Energy (PJ)

Pulp, Paper and Board Output (millions tonnes)

Belgium (1980)

86

777(2)

(Included under "other fuels")

141

2.01

19.7

1.3

Denmark (1981)

Negligible(3)

203<1>.(3)

80(3)

|J2(3)

Small (mainly waste wood)

6.3

0.1)

Eire (1981)

Negligible

V Small

Small

10

Negligible

0.11

Negligible

France (1980)

393

5388(2)

59

1276

Small

121.2

7.0

West Germany (1980)

856

8093(2)

535C)

1509

Small

I79.7

9.6

Greece (1977)

Negligible

280

Negligible

93

Negligible

7.1

0.4

Italy (1980)

466

5267(2)

40 (Mainly Coal)

689

0.5 (L.P.G.)

97.8

6.0

Netherlands (1979)

608(3) (includes oil Converted to gas)

656(D

V Small

See under 'Natural Gas'

V Small

31.3

1.9

UK (1980)

592

4600(2)

916

800

1.5

128.3

5.1

Total (in PJ)

115

235.9(5)

43.2

197

4.0

595.1

3I.7

As $ of Total

19.3

39.6

7-3

33.1

0.7

100

(1) Purchased electricity (2) Purchased and self generated (3) Reporting mills only (4) Expressed in hard coal equivalents (5) Expressed as primary energy

Note : percentage split is approximate because of lack of data on some fuels. Conversion factors for efficiency of heat to electricity: for self generated 60$

: for purchased 30$

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TABLE XVI

TOTAL ENERGY COSTS AS % OF PRODUCTION COSTS FOR SELECTED EEC COUNTRIES

1976

1977

1978

1979

1980

Netherlands(2)

8.8

10.2

10.1

10.1

11

Denmark(2) Eire(D,(3)

NA

NA

22.5

22.5

32

(1) Energy Costs as % selling costs (2) Refers to specialty papers (3) Refers to liner board (4) Refers to tissue paper (5) As % of total costs excluding profit and selling cost Details for France, Germany and Belgium not available

Greece/2Q

NA

NA

NA

NA

15-17.5

UK

9.8

12

13 (5)

11-18 (5)

15.3 (5) (av)

I t a l y

NA -si

10-15 (av)

NA - Not Available AV - Average

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- 48 -

5.2.1 Fuel Oil

There is now a greater degree of uniformity in the pricing of residual fuel oil between the member states than 12 months ago although there are still discrepancies eg Denmark. The UK no longer suffers the comparative disadvantage of very expensive fuel oil (see Table XVII). However, all EEC member states pay prices that are still higher than those charged in the USA. (Residual fuel oil prices averaged over tne member states in early 1982 were some 14% higher than those charged in New York.)

TABLE XVII

RESIDUAL FUEL OIL PRICES (OCT 1982) ECU/TONNE

Belgium

Denmark

Eire

France

West Germany

Greece

Italy

Netherlands

United Kingdom

WITHOUT TAX

166.62

195.62

217.81

179.23

186.48

172.79

175.15

187.04

198.37

WITHOUT V.A.T.

166.62

246.93

232.59

186.80

192.63

178.98

175.91

190.89

212.42

WITH TAXES

194.95

301.25

232.59

219.67

217.67

178.98

202.30

225.25

212.42

Source: EEC Statistics

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49

5.2.2 Gas

Table XVIII provides details of remarkable differences in gas prices to industrial customers among some of the major cities of the member states.

Key points to note are :

- there are considerable price differences within member states, especially in West Germany

- the changes in price are applicable only to new contracts. Previously negotiated contracts still often have lower basis prices.

Strong increases across the member states were recorded in past years, above all due to the increasing proportions of imports from third countries, some of which were indexed at 100% to crude oil prices.

Especially since 1979, gas prices have recovered and the average price of EUR 10 overtook the final industrial price of Heavy Fuel Oil in 1980 (low sulphur grade) . Since then they have remained on this high level without, however, attaining gasoil price.

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TABLE XVIII

GAS PRICES IN EUROPEAN CURRENCY UMITS (ECU) AT CURRENT PRICES (ECU/GJ)

(PRICE WITHOUT VAT FOR INDUSTRY)

4186

4186 200 days

418Ó0 200 day3 1600h

41860 250 days 4000 h

418600 250 days 4000 h

418600 330 days 8000 h

4186000 330 days 8C00 h

GJ

GJ

GJ

GJ

GJ

GJ

GJ

1980 1981 1982

1980 1981 1982

1980 1981 1962

1980 1981 1982

1980 1981 1982

1980 1981 1982

1980 1981 1982

Dusseldorf

5.18 6.64 8.37

4.23 4.97 7.23

3.90 4.60 6.77

3-73 4.46 6.52

3.71 4.43 6.49

3-55 4.28 6.26

Paris

4.40 5.09 6.38

3.83 4.45 5.71

3-28 3.85 4.85

3.19 3.74 4.73

2.90 3.43 4.38

2.83 3-35 4.29

2.8O 3.32 4.25

Milan

5.55 6.94 7.02

5.53 6.91 6.99

2.91 4.21 5.01

2.91 4.21 5.01

2.85 4.04 4.81

2.85 4.0« 4.81

2.76 3.82 4.55

Rotterdam

3.04 4.08 5.02

3.OO 4.05 4.99

2.76 3.48 4.90

2.76 3.48 4.90

2.66 • 3-33 4.64

2.66 3-33 4.64

2.51 3.18 4.38

Brussels

4.03 4.86 6.72

3.36 4.18 6.02

3.28 3.95 5.69

2.72 3.39 5.10

2.72 3.39 5.10

2.54 3.21 4.90

2.47 3.14 4.84

London

3.64 4.77 4.69

3.58 4.62 4.92

5.01 4.92

5.01 4.92

5.01 4.92

5.01 4.92

4.34 4.28

Dublin

-

.

Copenhagen

10.44 12.29 I3.IO

9.33 10.99 11.81

:

SOURCE: EEC Statistics

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5.2.3 Electricity

Table XIX indicates the electricity prices to industrial users in the member states producing pulp, paper and board, over the period 1980-82. It will be noted that there are considerable variations

in the rate at which prices have increased in the member states in the period

in the level of pricing between member states.

Hence, whilst prices to medium users (2 million kWh/year) in Paris grew by 15 per cent in 1980-82, in Dublin, in the corresponding period, the increase exceeded 88 per cent. Moreover in 1982, electricity prices to medium users varied by as much as 68 per cent across the member states. Of the major pulp, paper and board producing member states it will be noted that

France (based on electricity costs in Paris) continues to have the lowest electricity costs. However, comparisons are influenced by the exchange rate.

the rate of increase of electricity costs to medium size consumers in Belgium over the period 1980-82 in one of the lowest of the member countries.

It is believed that the extent to which both France and Belgium have invested in nuclear power has had a beneficial effect in restricting price levels and /or the rate of price increase in these countries (see Table XX).

Although electricity price increases were recorded in most member counries, the increases were particularly marked in those states that rely largely on oil for electricity generation eg Eire or Netherlands, and in those states where the price of alternative generating fuels is tied to the price of oil eg gas in the Netherlands.

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TABLE XIX

ELECTRICITY PRICES IN ECU/100 KWH FOR INDUSTRIAL USE

(EXCLUDING VAT)

2,000,000 kWh (500 kW 4000 h)

10,000,000 kWh (2500 kW 4000 h)

1980 1981 1982

1980 1981 1982

Dusseldorf

5.53 6.02 6.72

5.11 5.56 6.20

Paris

4.13 4.31 4.75

4.07 4.25 4.67

Milan

4.60 5.52 6.33

4.39 5.26 6.08

Rotterdam

5.34 6.10 7.90

5.28 5.74 7.69

Brussels

5.29 5.95 6.35

4.85 5.47 5.89

London

4.37 6.26 6.67

4.37 6.26 6.66

Dublin

4.24 6.25 8.00

4.23 6.12 7.84

Copenhagen

(*) 5.20 7.03 7.11

4.67 6.47 6.57

Athens

5.34 5.15

5.11 4.91

en

* Low Voltage

SOURCE: EEC Statistics

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TABLE XX

ELECTRICAL ENERGY

Provisional data 1982 Thousand Millions of kWh

1980 1981 1982

1981/80 1982/81

1981 1982

1982/81

1981 1982

1982/81

1981 1982

1982/81

1981 1982

1981 1982

TOTAL EEC

1209.0 1206.3 1204.1

- 0.2$ - 0.2$

852.5 829.1

- 2.7$

152.0 148.5

- 2.3%

201.8 226.5

+ 12.2$

16.7$ 18.8$

70.7$ 68.9$

WEST GERMANY

317.4 347.3 346.0

- 0.1$ - 0.4$

276.8 266.6

- 3-7$

19.7 19.3

- 1.6$

50.8 60.1

+ 18.3$

14.6$ 17.4$

79.7$ 77.0$

FRANCE

246.6 264.3 266.2

+ 7.2$ + 0.7$

92.0 92.0

+ 0.1$

72.7 71.1

- 2.2$

99.6 103.1

+ 3-5$

37.7$ 38.7$

34.8$ 34.6$

ITALY

177.4 173-5 176.1

- 2.2$ + 1.5$

NETHERLANDS BELGIUM

TOTAL NET PRODUCTION

62.O 61.3 57.6

- 1.3$ - 6.0$

5I.O 48.2 48.0

- 5.6$ - 0.4$

OF WHICH, CONVENTIONAL THERMAL

122.9 123-3

+ 0.2$

57.8 53-9

- 6.8$

34.9 32.4

- 7.0$

HYDROELECTRICAL + GEOTHERMAL

48.0 46.4

- 3.4$

2.5 6.4

··

SHA

1.5$ 3.6$

--

NUCLEAR

3.4 3.7

1.1 1.0

- 3.0$

12.2 14.5

+ 7.7$ + 18.8$

RE OF NUCLEAR PRODUCTION IN TOTAL PRODUCTION

5.6$ 6.4$

SHARE OF CONVENTION/ PRODUCTION IN TOTAL Ρ

70.8$ 70.0$

94.4$ 93.6$

25.4$ 30.2$

iL THERMAL RODUCTION

72.4$ 67.6$

LUXEMBOURG

1.1 1.2 0.9

+ 9.9$ - 11.6$

0.6 0.4

- 29.2$

0.6 0.5

- 13.4$

--

-

52.3$ 52.7$

UK

266.3 259.9 254.8

- 2.4$ - 2.0$

221.4 210.4

- 4.9$

5.4 5.6

+ 5.3

33-2 38.7

+ 16.7$

12.8$ 15.2$

85.1$ 82.6$

IRELAND

IO.3 10.3 10.5

+ 0.4$ + 1.1$

9.1 9.3

+ 1.7$

1.2 1.2

- 3.7

_ -

-

88.1$ 88.7$

DENMARK

25.5 18.5 22.4

- 17.6$ + 21.4$

18.5 22.4

+ 21.5$

0 0

-

_ -

-

99.8$ 99.9$

GREECE j 1

21.3 21.9 21.6

+ 2.8$ - 1.3$

18.5 18.3

- 1.0$

3-4 3-3

- 2.9$

_ -

-

85.5$ 84.7$

01 ω

SOURCE: EEC Statistics

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54 -

TABLE XXI

MAIN ENERGY REQUIREMENTS IN THE PULP, PAPER AND BOARD INDUSTRY

The more stars, the more energy is required)

Department

WOOD PREPARATION

PAPER & BOARD MAKING Stock preparation (from pulp)

(or waste paper)

Making

Finishing

Services

Ancillaries

COATING (off-machine)

CONVERTING

Processes

Debarking Pulp production

Pulping Cleaning Refining

Pulping Cleaning Refining Pumping etc

Macnine drive Vacuum Pumping Drying Air systems

Slitting, cutting Salle, packing

Boilerhouse Water and effluent

Offices, workshops stores

Coaters Supercalenders

Laminatore, embossers, etc

Heat

(Depene method)

** χ

**** *«

*

XX

*

Power

Is upon

X X

XXX

XX XX X

XX

XX XX X

X

X

X X

X XX

X

Space Heating

X

X

X

XX

Lighting

X

X

X

Source: Based upon Energy Thrift Scheme Report of UK Dept of Industry

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55

5.3 Energy Consumption in Pulp, Paper and Board Manufacture

Table XXI provides a general picture of the energy used in the industry ignoring variations between mills but giving the main steps in the manufacturing process and the relative requirements of energy. A detailed discussion of the individual steps involved is provided in Appendix I.

Where no star is shown, (eg for space heating and lighting in the stock preparation departments) consumption is comparatively insignificant. Pulp paper and board manufacture needs considerable amounts of process energy ie steam and power, with relatively little space heating and lighting. Drying is the largest user of heat and refining tne largest user of power. By comparison, the coating and conversion processes are more labour intensive and space heating becomes more important. An examination of process energy and electrical energy consumption requirements is provided in Section 6.4.2.2 and 6.4.2.3·

5.4 Audit of Mills in the Member States

5.4.1 Background

This section examines and discusses available audit data commenting on the associated technology.

For reasons set out in Section 3.3 data for individual member state are often not directly comparable. This is the case for much of the audit data. Hence the data presented should be considered as indicative of the variations in energy consumption patterns between the member states.

5.4.2 Results and Discussion

5.4.2.1 Energy Consumption by Product Sector

Tables XXII to XXIV detail respectively

electricity consumption by product

process heat consumption by product

primary energy consumption by product.

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TABLE XXII

ELECTRICITY CONSUMPTION IN AUDITED MILLS (kWh/tonne)

Product

Pulp (sulphate)

Pulp (sulphite)

Graphic Papers

Packaging Papers

Tissue

Boards

Worst

7C

509

1400-2050

1100-2350 (av 1040)

1200-1500 (av 1350)

780-940 (av 665)

Best

>9

245 (Integrated Mill)

320-380 (av 350)

220-340 (av 280)

420-630 (av 525)

120-330 (av 225)

No of Firms Reporting

1

4

10

4

4

10

No of Countries Reporting

1

2

7

4 i i

4 \ I

1

6

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57

TABLE XXIII

PROCESS HEAT CONSUMPTION IN AUDITED MILLS (GJ/tonne)

Product

Pulp (sulphate)

Pulp (sulphite)

Graphic Papers

Packaging Papers

Tissue

Boards 1

Worst

16.

10.10

36.5

20.6

16.06

15.1

Best

80

4.61 (Integrated Mill)

4.1

7.15

13.5

4.61

No of Firms Reporting

1

3

10

10

4

10

No of Countries Reporting

1

2

4

5

2

5

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- 58

TABLE XXIV

ENERGY CONSUMPTION DATA FOR SELECTION OF AUDITED MILLS

Product

Graphic Papers

Packaging Papers

Tissue

Board

Electricity to Process (GJ/t) Range1

1.2-7.4

0.8-8.5

1.5-5.4

0.4-3.4

Heat to Process (GJ/t) Range

4.1-36.5

7.2-20.6

13.5-16.1

4.6-15.1

2,3 Fuel Used (GJ/t) Range

14.1-20.3

10.4-14.3

16.3-17-3

8.1-17.7

2,4 Electricity

from Grid (GJ/t) Range

2.4-13.2

4.1- 8.5

11.5-17.8

2.4- 6.6

2,5 Total Primary Energy (GJ/t) Range

20.8-33.0

16.6-21.7

28.8-34.0

14.7-20.4

Data based on selection of audits from up to 7 countries.

Insufficient data for pulp.

(1) Calculated on lowest value of "best" range and highest value of "worst" range (Table XXII).

(2) Data from up to 4 countries.

(3) Calculated from calorific value of fuel used divided by tonnage of output.

(4) Calculated from electricity purchased from grid divided by output and assuming 30% efficiency.

(5) Sum of fuel used, electricity purchased from grid (at 60% efficiency) electricity (self-generated) at 60% efficiency divided by product output.

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59

It will be noted that there are considerable differences both within an individual product sector and also between products.

There is no consistent variation by country in primary energy consumption per product. Clearly, each paper industry is characterised by mills that are energy efficient and some that are energy inefficient.

The considerable variation in energy consumption between product sectors is to be expected. However the variation within a product sector, such as tissue where the individual products are similar is more surprising and reflects to some degree differing extents to which energy conservation opportunities have been'identified, although a number of other factors also have a rôle eg different machine sizes, different tissue weights (which can vary from ca. 15g/sm to 50g/sm).

It is an oversimplification to assume that all mills could reduce their specific energy consumption to that of the lowest consumer. There are several reasons :

the products within most sectors vary quite widely in quality and value using different raw materials and needing different processing and finishing

under-utilisation of plant (a problem in much of this industry throughout the member states) with frequent changes of grade, leads to the use of more energy per tonne.

modern, high speed machines and mechanisation in general tend to use more energy per tonne but, because of other factors, may operate at lower overall cost per tonne than old machines. (It has not been possible to weight consumption values according to output.)

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a) Tissue

Both the electricity and process heat consumption are higher for this product than other products. Tissue machines run at very hign linear speeds and the nature of the product requires a different method of production.

Because of the speed of the process large quantities of fibre must be deposited at the wet-end. This requires large volumes of water (in which the fibres are carried) to be circulated and thus high capacity pumps using large quantities of electricity. Moreover, the less dense the final product, the more dilution has to be used in its formation which means that water has to be extracted at a very high rate requiring a large pumping installation. In the remainder of the machine, the conventional presses and drying cylinders are replaced by a very large (Yankee) cylinder with an air cap, on which the sheet is dried by the combined action of steam-heating the cylinder and air drying the sheet during its passage under the air cap. Air circulating through the air cap is often heated by natural gas, further increasing the energy requirements.

b) Printings and Writings

The production of printings and writings usually involves higher than average production of broke (because of the varieties of paper produced) and a larger than normal amount of refining (because of the quality of paper produced). Hence, relative energy consumption tends to be high.

Because energy consumption per tonne increases with the number of varieties produced, the smaller Italian mills, concentrating on finer papers, are able to compete..

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c) Packaging Papers

Strong demand for a relatively limited number of varieties has encouraged mills in some of the countries with larger industries eg UK, to integrate operations and in some cases use CHP. This is thought to partly account for the considerable difference between worst and best practice mills.

Larger machines are more economical, the integrated operation means that less process heat is required (because enthalpy is carried over with stock from the pulp mill) and pass out steam can be used for steaming and digesting in the pulp mill and/or in a thermo compressor, for raising the enthalpy of the exhaust steam for the dryers.

d) Boards

Large quantities of process heat may be required in stock preparation for board manufacture. Often board stock contains large quantities of waste material (up to 70% may be waste) and heat is required to ensure that the stock mixture is homogeneous.

5.4.2.2 Electrical Consumption

Electrical consumption varies considerably across the product sectors. Even when allowance is made for differing machine outputs, large differences remain. These can be explained partly by processing differences but also by under utilisation of machine capacity. The most economical values are obtained from equipment which is operating at maximum capacity but there are disadvantages with such operations :

a great deal of maintenance

many adjustments

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62 ■

quality variations that are

difficult to control.

Investigating the variations in some

detail by examining the process

subdivisions (see Table XXV), reveals

that there is almost as great a

variation in the number of processing

sections as in the energy consumed per

processing section. Some examples

follow.

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- 63 -

TABLE XXV

EXAMPLE OF VARIATION OF ELECTRICAL ENERGY BY PRODUCT AND PROCESS SUBDIVISION (GJ/t)

Product

Printings and

Writings

Packaging Paper

Tissue

Board

Stock Preparation

1.7

0.45

2.58

1.53

Process

Paper Making Machine Drive

0.6

0.32

1.83

0.61

0.5

0.46

0.74

0.3

Site Services

0.2

0.18

0.2

0.25

Source: Audit Data

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64

a) Pulp Preparation

In the pulp preparation section the number of pumps can range from 2 to 10. Unfortunately many mills, across the member states, continue to use small pulpers that are operating at full capacity other than at optimum capacity. The lowest energy consumption/tonne for pulpers is found in large pulpers, the raw material having little or no influence. Many mills need therefore to pay closer attention to the size of the pulper in relation to product capacity.

Many of the larger mills use continuous pulpers. Raw materials and water are added continuously and the defibered pulp is pumped away through holes of a given diameter. Where this system is in operation, considerable amounts of energy can be wasted if output is not closely matched to capacity.

b) Beating and Deflaklng

Capacities of beating units and deflakers are often not matched to raw material input. As a result part of the energy is converted into heat. (However, because of variations in raw materials, it is not always possible to obtain an optimal match.)

c) Mixing and Pumping

Bad machine scheduling can increase the need for mixing and pumping since holding tanks must be used. In many cases mixers are operated constantly when intermittent mixing would be adequate. In some cases, particularly where small quantities of a range of products are required, it is very difficult

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to optimise scheduling. Many of the smaller mills in Greece and Italy which use their flexibility as a competitive advantage waste quantities of energy because of scheduling difficulties.

d) Cyclones

Where cyclones are used to separate grit (usually just prior to the machine) considerable energy is needed to pump the stock because it is so thin and the pressure drop is high.

e) Vacuum

A vacuum is used to

speed up water loss from the fourdrinier

contain water within the press rollers

dry the felt (following damping).

The vacuum is often used inefficiently because too high a vacuum is applied or too much vacuum is lost during regulation.

5.4.2.3 Process Energy Consumption

Table XXVI sets out an example of process energy consumption variations for the process subdivisions for a range of products.

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TABLE XXVI

EXAMPLE OF VARIATION OF PROCESS ENERGY BY PRODUCT AND PROCESS SUBDIVISION (GJ/t)

Product

Printings and Writings

Packaging Paper

Tissue

Board

Stock Preparation

0.5

-

2.49

Process

Paper Making

12.3

9.38

13.3

8.22

Machine Drive

-

-

Site Services

1.5

0.23

0.47

Source: Audit Data

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- 67

The bulk of the energy is used as steam (although in some cases gas, electricity are used). The bulk of process energy consumption occurs in the paper making section (for drying purposes) although steam continues to be used by some mills in slushers, particularly for waste treatment. High steam consumption occurs unless the felt (used to absorb water removed in the press nip and support the web) is very dry (containing a maximum of 0.3-0.4 of its dry weight in water at the entrance to the nip/and the cylinder rolls are maintained in very good condition.

Many small mills throughout the member countries have not yet installed heat recovery equipment in the paper making section. As a result, their process energy/tonne values continue to be high.

5.5 The Role of Combined Heat and Power

Because of the requirement for both heat (for drying) and electricity (for motive power), it was recognised many years ago that considerable economies could be made by supplying both forms of energy from one source. Many mills now have their own power stations for generating electricity, ranging in power typically from 5 to 50 megawatts and using exhaust from the turbines to supply steam to the process.

Table XXVII sets out details of the preparation of total electrical power required that is generated at the mill itself. In each case, the reduction in the period 1979/80 is a reflection of a longer term decline.

The major reason for this trend is that many of the power stations in mills are old using steam which is raised at pressures that are low by modern standards in the generation of electricity. The result is that many CHP plants give a small amount of electrical power for the amount of steam raised. Conversely, modernisation of paper making plant has bought about a reduction in the amount of process steam required, an increase in the pressure at which the steam is used and, above all, an increase in the demand for electrical power. The resulting mismatch can be improved only by the replacement of the existing CHP plant with modern higher pressure plant. Given the current shortage of capital (arising from the depressed state of the EEC industry), action on this is likely to be minimal.

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- 68

The alternative, of operating only enough CHP plant to supply the required process heat, and drawing additional power from the grid, is usually adopted.

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TABLE XXVII

PROPORTION (%) OF TOTAL POWER REQUIREMENTS SUPPLIED BY CHP

United Kingdom

West Germany

Italy

France

Netherlands

Belgium

Eire

Denmark

Greece

1979

41.4

64.3 49.8

37.0

Negligible

23.0

-

24.0

-

1980

37.8

61.0

46.2

37.1 Negligible

22.9

-

23.9

-

Source: Federation Discussions and published data.

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6. ENERGY MANAGEMENT PRACTICE

6.1 Current Situation

The management structure in pulp, paper and board mills and the relative importance of the individual management functions vary considerably and reflect among other things :

the country in which the mill is operating

the size of the mill

whether the mill is part of a large group whose major interest is paper or a member of a large group for whom paper represents only a minor interest or is a member of a smaller group

style and personalities of senior management

the products made

whether the mill is the group's main plant.

Similarly where commitments to energy conservation exist, there is a wide range of organisational frameworks used by mills to manage this task. Typical examples in the member states include:

a) the appointment of energy managers at senior management level (often reporting directly to the chief executive) and responsible for encouraging savings effort in individual mills

b) formal energy committees, meeting regularly under the chairmanship of the chief executive and with responsibility for minimising energy costs and developing methods by which this objective can be achieved

c) appointment of people with specific responsibility for energy conservation in each mill production unit, often on a part-time basis

d) the chief engineer and his department have responsibility for energy conservation

e) appointment of part-time energy co-ordinators to monitor energy use and motivate others to conserve energy

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71

f) the use of management consultants

to plan the implementation of energy saving

to assist where necessary, in that implementation.

There is no one organisational structure that is "correct", specific structures being influenced by a number of factors eg the necessity to integrate with existing structures and techniques and by the nature of conservation opportunities available. Therefore, the energy management organisation and approach must be mill-specific.

Broadly speaking, the diversity of organisational structures reflects the size of the industry both in relative and absolute terms. Hence, for example, in the United Kingdom, all of the structures outlined above have been identified whereas for example, in Greece and in Eire in those mills where there is management involvement in energy conservation, one organisational structure tends to predominate (typically option c).

6.2 Possible Difficulties with some Energy Management Organisation Structures

The main energy responsibility of the chief engineer has historically involved the production and distribution of energy. However, the efficiency with which that energy is used, is outside the control of the engineer and is the responsibility of production management. When the easily achievable conservation measures have been implemented, further savings require the involvement of the whole management team. For example:

savings from improved controls (other than in the boiler/power house) involve the performance of production management and probably also involve financial management, to consolidate, interpret and monitor controls

good housekeeping savings either require efforts from production management or necessitate close liaison between maintenance staff and production

indirect savings, arising from improved output depend upon increased productivity and can be influenced by sales or marketing efforts

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72

project savings require collaboration between production, engineering and technical management in the identification, evaluation, design and implementation of projects, if energy costs are to oe reduced and yet be consistent with other priorities.

Energy committees promote a more multi-disciplinary approach to energy conservation. However, it often happens that production management are not members of this committee. As a result some potential savings areas are missed.

The appointment of an energy manager may reduce the commitment of other managers to energy saving. (They perceive it as no longer their responsibility). Moreover because of the nature of energy use, an energy manager cannot have responsibility for the efficient use of energy - his role is that of persuader, co-ordinator and facilitator.

6.3 Organising for Efficient Energy Management

Given that there is no single organisational structure to obtain and maximise the multi-disciplinary involvement required, the chief executive should decide the priority and level of commitment that management should give to energy conservation and, on this basis, decide the appropriate organisational arrangements. The chief executive will then need to ensure that his commitment and relative priorities are channelled through the organisational structure selected, and are reflected in the efforts of individual managers. Clearly, the relative priorities decided for each manager must interlock with their current tasks.

An energy management committee may not always be appropriate eg in mills where there are well defined opportunities for conservation. However, an energy committee is a useful vehicle for achieving the multi-disciplinary approach on which the implementation of cost effective energy saving measures depends.

Although membership of the energy management team will vary from mill to mill, there should be representatives from the following:

the engineering department (the identification evaluation and implementation of energy saving opportunities requires engineer's skills

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production management, because

they use the energy

energy savings resulting from increased productivity are their responsibility

many of the savings resulting both from good housekeeping and improved monitoring and control are also their responsibility.

The energy committee will be strengthened by the presence of a finance director or senior financial accountant. This will ensure that the cost effectiveness of measures is always considered.

Because of the division of energy management in paper mills between the producers and users of energy ie Engineering and Production, the appointment of a single Energy Manager may not be appropriate. (An Energy Manager cannot be responsible for overall energy efficiency in a mill because he does not have authority over engineering and production. Appointment of such a manager could imply he has such responsibilities and thus dilute the awareness of line management of their responsibilities with regard to energy.) Moreover, any management change on energy would imply that energy has not previously been treated as efficiently as it should. The appointment of an Energy Manager could be taken as implied criticism of the line managers who are responsible for energy use.

Effective management of energy at mill level can be best achieved by the establishment of an energy management committee composed of members drawn from the various branches of management. However, it is most important that a senior member of the team should have overall responsibility for ensuring that the decisions taken on energy are implemented by the individual managers responsible.

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7. METHOD OF INCREASING ENERGY EFFICIENCY

7.1 Energy Saving

There are no standard definitions of types of energy savings. Many terms are commonly used. In the context of energy management however, categories of saving can best be defined on the basis of the approach that management should adopt in order to achieve them.

Hence, five categories of energy saving can be identified. Those arising from

indirect saving

good housekeeping

targeting, monitoring and control

projects savings

new technology.

7.1.1 Indirect Savings

Indirect savings are energy savings resulting from actions not primarily directed at reducing energy consumption. They can be achieved in a number of ways, including:

increased capacity utilisation

increased machine speed

reduced down time

reductions in broke

manufacture of less energy intensive products

use of different raw materials.

Given the considerable economies that can be achieved in overall energy consumption through the adoption of these measures, indirect savings are an important element in the total programme.

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Indirect energy savings often occur as a result of a desire on the part of management to run the plant more efficiently rather than as a specific commitment to energy conservation.

7.1.2 Good Housekeeping

Good energy housekeeping is the achievement of energy saving by the prevention of either the gradual deterioration of plant or the drift away from good energy habits. These· savings can be achieved through, for example, good maintenance management and minor expenditure on eg lagging for steam pipes, repair of steam traps and provision of space heating and lighting controls, closing doors and windows.

Some good housekeeping measures can be achieved without strong commitment from senior management to energy conservation. However some measures such as controlling heating, shutting doors etc are extremely difficult to sustain unless there is firm commitment throughout the management and workforce.

7.1.3 Monitoring, Targeting and Control

A suitably designed energy targeting and monitoring system for energy (with the emphasis on simplicity of operation) permits:

conservation measures to be monitored and evaluated

tighter management control and accountability over energy costs and usage

equipment deficiencies to be highlighted at an early stage. Corrective action can thus rapidly be implemented.

The key requirement in targeting and monitoring is the provision of adequate measuring devices, usually a small number, in order to obtain a comprehensive understanding of energy flows and consumption.

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7.1.4 Projects Savings/New Technologies

These require specific management effort either with one man or a small team to identify, evaluate, propose and implement an energy saving project. Implementation of the projects can involve considerable capital expenditure although small scale projects (eg lagging of steam mains, provision of time clocks) may also be involved. Project savings may well require the application of new technology. (See Section 8.3 for technical details.)

7.2 No, Low and High Cost Energy Conservation Measures

Energy savings can be achieved in three broad categories

no cost (immediate)

low cost (short term)

high cost (longer term)

Table XXVIII sets out how these categories relate to the types of energy savings

TABLE XXVIII

COST/BENEFIT CATEGORIES BY TYPE OF ENERGY SAVING

Indirect Savings

Good Housekeeping

Targeting Monitoring and Control

Projects Saving

New Technology

No Cost

X

X

X

Low Cost

X

(*)

(*)

( » )

(*)

High Cost

(·)

X

X

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It is not possible to quantify the low and high cost categories since the perception of individual energy saving measures as low or high cost will depend to a large extent on the energy bill of the mill. However a rule of thumb is that investments costing 1-3% of the total annual energy bill are low cost, anything larger is high cost. In payback terms, low cost measures can require up to 6 months, high cost measures from 1-4 years. However, these should be taken as indications only since a large number of factors can affect payback periods eg provision of grants.

Implementation periods for the various measures can likewise show considerable variation. Typically, however, the no cost category can be implemented within 1-2 months. Low cost measures should require no more than six months. High cost measures, which can involve considerable structural changes to the mill can take anything up to 24-30 months.

7.3 Technical Aspects of Energy Saving Opportunities

This section examines energy saving opportunities from a technical viewpoint identifying them by cost category. The technologies indicated are currently available in most of the member states, but many are not used. Most of the papermaking processes are common to all paper and board products. These recommendations can therefore have an impact on the energy consumption/tonne for most products.

7.3.1 No Cost

a) Water Removal by Vacuum

Many paper and board machines use vacuum systems to remove water. Considerable amounts of energy can be wasted by:

lack of maintenance eg seals are allowed to deteriorate

use of too high a vacuum, (or too low a vacuum).

D) Pulping

Considerable differences can arise between the energy requirements of large and small pulpers. Electricity requirements for small pulpers can be up to twice those of larger pulpers (independent of the

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material being pulped). Efficient use of pulpers depends upon matching the throughput of pulp to the capacity of the pulpers and ensuring control of the pulpers during operation ie minimising overpulping.

c) Refining

Similarly, there are large differences in the amount of energy used in refining, even when the raw material and final products are quite similar. This variation arises because of the manner in which refiners are used. Two major sources of energy waste are:

running refiners on part load

over fiberising of pulp.

In a number of countries eg in Greece, Italy, and the Netherlands, old fashioned open beaters continue to be used rather than refiners. Although for some raw materials there is no alternative equipment, open beaters use approximately twice as much energy as refiners.

d) Mixing and Pumping

Processing sections are often separated by holding tanks. These are used to smooth out fluctuations in the flow of materials. In order to:

achieve good mixing

prevent settling

These tanks must be stirred and pumps are also required for filling and emptying. Mixing efficiency depends to some extent on the size and shape of the tanks.

Opportunities for energy saving here include :

eliminating the need for usage of these tanks through improved machine scheduling

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reducing the need for separate pumps by removing partitions within individual tanks

increased intermittent mixing eg 5 minutes of mixing followed by 10 minutes settling time.

e) Use of Steam Heating in Pulping

Steam heating in either the pulper or machine chest is used to accelerate the pulping process and/or water removal on the wire. This, in general terms, is a wasteful use of heat and is really only justified when there is, for example, a bottleneck in production. Where steam heating is used it must be controlled so that only the minimum necessary temperature is reached in the pulper.

f) Control of Flowbox

If sheet formation is irregular, the moisture content at the end of the machine is not evenly distributed across the width. To ensure that no wet areas occur on the web the average moisture content must be reduced. In extreme cases, very forceful drying must be used followed by remöistening in order to obtain the required moisture content.

g) Broke

Broke is produced for a number of reasons some of which are unavoidable, for example when starting or finishing reels, when making machine adjustments. The amount of broke produced can vary typically from ca 6% to over 20%. Clearly, savings in this area can reduce energy requirements since much of the energy expended on making material which has to be recycled is wasted.

h) Machine Scheduling

Current paper and board machines operate efficiently when producing long runs of one grade of board/paper. Changes of grade to be produced mean down time, wastea energy and increased broke. Improved scheduling of machines (where the market situation permits) can offer significant savings.

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7.3.2 Low Cost

a) Cleaners

Grit separation is achieved by feeding the thinned stock into cyclones located in the stock preparation unit. A high capacity pump is required because:

the stock is of very low viscocity

the pressure drop is high.

A comparatively recent introduction has been cleaners with a much smaller pressure drop, requiring less pumping capacity and therefore a reduced electrical power requirement.

b) Pre-heaters

In order to improve press operation, a number of mills have pre-heating cylinders which, as their name implies, heat the web prior to it passing to the press section. However, the effectiveness of pre-heating can be compromised by, for example, excessive air flow around the pre-heating cylinders or through contact with a felt that has been rinsed with cold water.

c) Presses

After water removal on the fourdrinier wire, the web is passed through squeeze rollers. (In general terms, less energy is used in removing a unit mass of water from the web by mechanical means than by evaporation.) To maintain maximum efficiency at the squeeze roll section the presses must be kept in top condition through for example:

ensuring that nip pressures are maintained

monitoring of the condition of the felt

provision, if necessary, of felts on both sides of the web to increase water removal.

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d) Matching Electric Motors to Power Requirements

If the load on an electric motor is matched to its rated power output, losses can be up to 10%. However these losses increase sharply if the motor output greatly exceeds load. In many mills motors are not working at optimum load. Often, by repositioning the motors it is possible to minimise the purchase of new motors.

Electronically adjusting the frequency of the 3 phase current also permits economies to be made.

Thyristor drives offer more efficient conversion of alternating current than the motor generation sets used in many mills. (Losses on m.g sets can be as high as 35%).

e) Dryer Hood Ventilation

Canopy hoods or totally enclosed hoods are used in many mills, ventilated by dry air to reduce the vapour pressure in the atmosphere surrounding the web. Provision of hoods can offer savings of up to one third in the quantities of dry air required to remove 1 tonne of water. Savings with air caps used on large machine-glazed and Yankee cylinders are even larger (although part of the savings are attributable to the increased size of the drying cylinders).

Drying efficiency is reduced considerably if dryer hoods are not kept shut during machine operation.

f) Environmental Ventilation and Heating

Ventilation of the machine room serves to remove heat (mainly arising from convection/radiation losses of the dryers) and moisture (water evaporation from the web). The amount of air required in the machine room to ensure a pleasant working environment, is determined largely by moisture vapour pressure (the bulk of which originates from the dryers).

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Provision of a hood at the wet end would restrict the migration of moisture into the room, thereby reducing the quantity of air required for ventilation.

Moreover, restricting the amount of ventilation in the machine room can lead to considerable savings in connection with environmental heating.

g) Insulation

Considerable savings in energy can also be achieved by ensuring that where appropriate, all pipes, hoods, and tanks are insulated. (A non insulated 10cm diameter steam pipe operating at 11 bar in a room at 30°C loses ca. 700 watts per metre. This can be reduced to 75 watts per meter with 4cm of insulation.)

7.3.3 High Cost

a) Heat Recovery

Water is evaporated from the paper web in the drying section. The warm moist air is exhausted to the atmosphere. Energy savings can be made by recovering heat from this air through the use of heat exchangers, for example:

air to air

air to water

scrubbers.

This recovered heat can be used for a number of purposes but the most effective is probably for heating air for the ventilation of the drying section of the machine. Heat pumps are of limited applicability in mills because they rely largely on low grade heat and limited temperature differences for their operation.

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b) Process Control

Good process control can increase the quantity of saleable material because more paper will conform to specification and product change overs can proceed more quickly. A processing computer can minimise broke since more of the production falls within specification. Moreover, process control permits continuous monitoring and control of energy consumption within the whole factory, not only in the mill but also in, for example, the boiler house and the finishing departments.

c) Combined Heat and Power Generation

Many mills use outdated turbines and operate very old boiler plant (in some cases up to 60 years old).

Because of sharply escalating energy prices and the relative inefficiency with which many public power stations generate electricity, there are considerable opportunities for combined heat and power. However, the capital costs are extremely high.

7.3.4 Current Technical Developments in Energy Conservation

a) Radio Frequency Drying

Selective removal of moisture from the web by radio frequency has been used to reduce variations in moisture content across the web. This eliminates the necessity of overdrying at the edges (to comply with the specification for moisture content at the middle of the web).

b) Mechanical Vapour Recompression

Superheated steam can be used in air caps to collect moisture. The heat content of this moisture is then extracted in a vapour recompression cycle in order to recycle the latent heat.

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c) Dry Forming

Considerable effort has been devoted to developing a paper making process that uses the minimum of water. The dry forming process produces a sheet material similar in appearance to conventionally made papers but with different physical properties. A mechanical drying method (known as press drying) is used in preference to the more normal combination of mechanical and heat drying. This technique strengthens the web and gives improved contact between the web and drying surface.

d) Heat Recovery from Dryer Exhaust

See Section 8.3*3 a).

e) Control Systems for Drying

Current control systems for drying need to be improved. The most common method uses a moisture meter on the web as it leaves the dryer. There are few machines in which the water content of the material going into the dryers is measured. The thermal inertia of the steam cylinders makes it difficult to design control systems for drying.

Sensing the surface temperatures of individual cylinders would help to improve control.

f) Research into Refining

There is evidence to suggest that a large proportion of the energy used in refining serves only to increase tne temperature of the stock. A more efficient method of treating fibres is required.

g) Upgrading Waste Materials

Because of current limitations on technology, some paper products can only be produced using virgin fibres as raw material. Improved methods of cleaning pulps from waste and upgrading fibres to the standard required for high quality

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papers are needed to increase the amount of waste paper that can be used.

Similarly, improvements in the technologies of

de-inking

bleaching

removal of contaminants sUch as adhesives, coatings

will ensure that larger amounts of paper can be recycled.

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CONTROLS, TARGETING AND MONITORING

8.1 Current Situation

Considerable differences exist in the extent to which individual mills itemise energy costs in regular operating accounts, to permit comparison of usage with a standard or budget. Even in countries such as the UK and Netherlands, where the need to control and monitor energy consumption is recognised and accepted, many mills still do not make maximum effective use of the data at their disposal. In countries such as Eire and Greece (except in the largest mills) the lack of adequate metering and instrumentation does not permit a detailed data base of energy consumption to be developed.

Where controls are used, typical examples include:

boiler/power house consumption data

a graphical presentation of specific energy consumption by machine on a nistorical basis. This control serves to illustrate long term trends and is circulated by the technical department to all relevant production, engineering, technical and accounting personnel

a statement of power costs (gas, oil and electricity, grid and self-generated) and the consumption of the different fuels on a weekly basis. (This control is used to enable the cheapest energy source to be used within commercial and technical constraints)

a statement of thermal usage of electricity and steam by machine on a historical basis witn a breakdown by area of usage and trends on a weekly basis for the year. (This level of control can only be exercised by mills which have comprehensive metering of steam and electricity. The report is circulated to production and engineering management for action)

controls developed by individual machine users reflecting their interests and expertise. Often, particularly in mills housing a large number of machines, the different types of controls used hinder useful comparisons.

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However, energy controls are often perceived as being of limited usefulness in conserving energy. Typical reactions to the concept include:

specific energy consumption is higher in winter than in summer. Thus the figures are inappropriate for control purposes

the biggest influence on specific energy consumption, is capacity utilisation. Hence it is very difficult to establish whether energy conservation· efforts have any effect. High specific energy use does not necessarily imply the need for energy conservation

a particular mill is unique. Therefore it's energy consumption cannot be compared meaningfully with that of other mills

less than comprehensive metering of steam and electricity does not permit all relevant data to be gathered.

Moreover, the presentation of the data is often not of a sufficiently high standard to achieve the commitment necessary for implementation. For example:

often no comparison with realistic targets or standards

key figures not highlighted

too little information to be meaningful

no corrections to energy data for outside air temperature or capacity utilisation

little or no attempt to demonstrate how energy costs can impact on profitability.

8.2 Conclusions

Any system of energy conservation must be designed, presented and implemented in such a way that the enthusiastic support of all personnel involved is obtained and any objections overcome prior to introduction. Although, in many of the EEC countries reviewed, the more obvious no and low cost energy conservation measures have already been implemented, achieving further savings will depend upon a system based upon

more effective control information

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setting targets

monitoring the effectiveness of management efforts to save energy.

8.2.1 More Effective Control Information

More effective controls are required because

rising energy costs and increasing competition mean that profit will be more responsive to energy savings

in many cases the obvious savings which can be identified with controls, have been identified and put into practice

evidence that efforts produce results can be a powerful agent of motivation

comparison of achievement versus target facilitates analysis of the causes of variation and the transfer of effective conservation practice

effective controls permit meaningful comparisons between different mills in a group and possibly mills in different groups making similar products

effective controls facilitate a more accurate assessment of the energy costs of different products.

8.2.2 Setting Targets

Energy targets can be defined in three ways

a standard or historically based target

a conservation target (either an arbitrarily set percentage saving target, or a target based on a survey of potential savings

a best practice norm.

There are a number of approaches to setting these targets (a discussion of whicn lies outside the scope of this report). However Table XXIX sets out typical energy savings that can be made by the application of different target techniques.

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EFFECT OF DIFFERENT TYPES OF TARGET

(EXAMPLE ONLY)

CONTROL

1. No control

2. Control against a standard (say, historical average)

3. No control but 10% conservation target over next two years

4. Control against standard and conservation target of 10% over next two years

5. Set norm for this type of mill (eg the lowest level achieved in this case) and control against that.

EFFECT

Usage varies between 21-32 GJ/tonne

Usage varies across narrower range 24-28 GJ/tonne

Two years later usage varies between 19-28 GJ/tonne

Two years later usage varies between 22-26 GJ/tonne

Two years later usage varies between 19-22 GJ/tonne

SAVINGS OVER NO CONTROL

-

4 GJ/tonne (max)

4 GJ/tonne (max)

6 GJ/tonne (max)

10 GJ/tonne (max)

% SAVING IN ENERGY CONSUMPTION (AS % OF MAXIMUM CONSUMPTION)

-

13

13

19

31

CO to

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Clearly any energy control technique can make savings. However the maximum savings will come from a control system that sets norms for energy usage appropriate to the type of mill under consideration and controls against that norm.

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9. BARRIERS TO IMPLEMENTATION

Effective implementation of energy conservation opportunities can be delayea by a number of factors

the squeeze on financial resources

technical barriers

market considerations and the general economic environment.

However, a positive attitude towards energy conservation from both the government and the member federations can go a long way to overcoming these barriers and is crucial to the long term success of any energy conservation programme.

9.1 Financial Resources

The EEC pulp, paper and board industry, with a limited number of exceptions, is characterised by

worsening profitability

competitive pressures and rising costs that are putting pressure on profit margins

lower returns on investment making it harder to finance required investment

higher interest rates that have increased the cost of financing investment externally ie through borrowing.

The comparatively low return on capital cf. return in some other manufacturing sectors or service industries forces senior management to critically examine the investment plans of tneir paper and board divisions particularly if the company is highly diversified.

Tne combination of reduced funds and lower returns on capital invested can reduce investment in:

new and innovative products that satisfy to a greater extent, market requirements and could, therefore, justify higher margins

equipment to improve productivity

energy conservation projects.

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In broad terms, the approval of capital investment in energy conservation projects involves an evaluation of

the funds required

likely payback

relative priority.

Many of the mills in those member states with large paper and board sectors have implemented the low cost, short term payback projects (as have some of the larger mills in those countries with smaller paper and board industries). However, where larger investment is involved the high cost and long payback results in many of these projects being assigned lower priority. Hence, the likelihood of approval is reduced. For those mills subject to particularly strong financial pressure even the low cost projects may not be implemented.

Most energy projects must be justified on payback criteria. In examining energy projects from the payback standpoint, three difficulties arise:

savings, and therefore paybacks, can be difficult to quantify

accurate justification requires significant amount of management time. The cost involved may outweigh small savings.

fuel and equipment costs are changing continuously.

Paradoxically, because of their lack of "visibility" energy saving projects may require more rigorous justification than projects for eg health and safety, improved productivity.

9.2 Market Considerations/Economic Environment

Reduced production, stemming from eg increased competition, a slump in demand, severely hampers energy conservation because:

there is less money available to invest in energy saving projects

management may need to concentrate on the "here and now", particularly if survival is uncertain. Financial and management resources that could be devoted to energy are, instead, concentrated on the major problem

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reduced output invariably results in higher specific energy consumption.

The current economic climate and the strength of international competition is likely to continue to be a severe obstacle to further energy savings:

minimal economic growth in most of the EEC markets will reduce domestic demand for paper, pulp and board products

the world recession, if it continues, will encourage foreign competitors, (particularly those benefiting from economies of scales, raw materials from integrated pulp/paper mills and regular investment) to further increase their penetration of EEC markets

if demand falls for the products of the customers of the paper and board manufacturers, price will become increasingly important in the buying decision. Hence, imports of cheaper foreign products could rise or domestic suppliers will be forced to reduce prices.

The increasing sophistication of customers requires suppliers to offer higher quality products and packaging if they are to continue to compete effectively. This implies more frequent changes in product mix, colour, width etc. All mean shorter run length, increased broke and down time and lower output. This in turn results in higher specific energy use.

9.3 Technical Barriers

Many of the low cost, short payback savings have already been (or are currently being) implemented. To achieve the more significant savings, major alterations or additions to equipment are required. In some cases the technology required to achieve these savings is currently not available eg refiners to achieve precise "wetness". In other cases, particularly in those countries with small paper industries, there is often insufficient instrumentation to adequately monitor energy consumption.

Moreover, mill management tends to be wary when dealing with the many new companies that have emerged to exploit the field of energy conservation. This stems partly from conservatism (a reluctance to accept new technology and to deal with new and as yet, largely untried suppliers) but also from the unsatisfactory experiences of some mills with devices such as heat wheels and shell and tube heat exchangers. Additional technical barriers arise from

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testing the viability of certain projects eg heat recovery from hoods can be time consuming, often imprecise and very expensive

the difficulties of measuring accurately savings achieved by an energy savings project. Top management therefore rarely obtains accurate details of savings achieved. This makes it difficult to assess with precision whether projects should be repeated elsewhere.

9.4 Attitude of Government and Member Federations

9 .4.1 Fuel Supplies

When fuel supplies are readily available there is less incentive for industry to conserve fuel than when supplies are threatened. In this context the current glut of oil on world markets acts almost as a disincentive to conserve energy. National governments can seek however to stabilise the situation through a more flexible pricing policy.

9 .4.2 Uncertainty Over CHP/Discriminatory Pricing

Combined heat and power is a key element in satisfying the energy requirements of the paper and board sector in the larger EEC member countries. However, the amount of self generated electricity has declined. In some member countries eg United Kingdom, mill management appear to be unclear as to whether existing CHP systems should be scrapped or whether CHP systems should be installed. In Belgium, tariffs for grid electricity supplied to mills with CHP are more expensive than those for mills whose total electricity requirement comes from the grid. This has encouraged a reduction in CHP.

Where such situations occur, governments need to take positive steps to resolve current uncertainties and encourage an increase in the proportion of electricity generated at the mill site.

9 .4.3 Energy Conservation

The extent to which the governments of individual member states involve themselves in energy conservation in the pulp, paper and board industry varies considerably.

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(A full list is provided in the Appendix.) They range from financial assistance for outside consultancy, the provision of soft loans and/or partial grants to schemes funded largely by the government but co-ordinated through the federation and covering for example

auditing of mills/energy survey schemes

provision of grants towards cost of eg replacement of old boilers, conversion to coal firing

demonstration projects.

9.4.4 The Role of Member Federations

The extent to which governments in individual member states have become involved in energy conservation in the pulp, paper and board sector matches to a certain extent the role in the energy field of the individual federations. A number, such as those in the UK and Netherlands have immersed themselves in both the commercial and technical aspects of energy and act as the mouthpiece of the industry to the government in energy matters. Other federations adopt a more "arms length" approach to energy insisting that they represent the interests of their members in commercial matters only, and that they are not qualified to discuss technical aspects of energy conservation.

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APPENDIX I

THE TECHNOLOGY OF PAPER MAKING

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THE TECHNOLOGY OF PAPER MAKING

1) Manufacture of Pulp

Historically a handcraft, papermaking is now a continuous process. In integrated mills, there is no interruption of process between the input of raw wood into the pulp mill and the emergence of the final product from the paper machine. Where the pulp mills and paper mills are separated by a distance, the pulp is dried and formed into bales suitable for transport to the paper mill. In the EEC there are comparitavely few integrated mills.

Pulping separates the fibres from each other. Mechanical pulping is the simplest method. (Well-wetted logs are held against a grindstone and the fibres are torn apart.) The yield is high and a cheap mechanical pulp or groundwood is obtained, consisting of damaged fibres. A more recent development is the use of heating with steam to soften the lignin in the wood.

In cnemical pulping, wood chips are treated with chemicals which dissolve lignin, causing the fibres to separate without damaging them. The pulp is then bleached if white paper is to be made from it. However chemical pulping is more costly than mechanical pulping and the yield of pulp from the tree is lower.

There are many variations on these two methods. In semi-chemical pulping the lignin is softened by chemicals and the fibres are then separated mechanically.

The species of tree used for raw materials determines the dimensions of the fibres which can be obtained.

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2) Manufacture of Paper

The diagram below indicates the paper making process,

as the starting material.

Pulp is used

THE PAPER/BOARD MAKING PROCESS

Pulp

Conveyor

MM Slush er c - O

X Z

— !

Q£gh ¡finer J I Pre-reiiner JJ

Che m ¡call

— O Y « krn Heaabox

} -

CO

Cleanen -τ π 1

'JH.: ιL .

Refiner

Slocx chest Stock chest " — O

Preparation

J J

O F*rt pump

3

m-Screen

Steam

Recycling snjlp Q

Main dryen Size press After dryerj Substance-

moisture

Making | _ control

(Humiaifier) Q.C. inspection

1 fil

3 S i

—® •ooo

¡Π Packaqinq ^

•PT&TI Β—U

ÍTLÃ

Winder Cuner Inspection Guillotine

Finishing

(Reproduced by courtesy oí The Inveresk Paper Co. Ltd. . Galdweils Paper Mül)

aper nock Oesc-stch

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The pulp is redispersed by agitation in a slusher in about 20 times its mass of water. Any clumps of fibres are fully separated in a deflaker before the clay filler, size and other additives are mixed in.

The next step is refining. The term has a special meaning in papermaking and means lacerating the fibres in a controlled manner. The natural fibres are stiff and smooth and would form a weak, bulky, porous sheet. For many applications a sheet is required which is strong, thin and impermeable. To obtain the required properties the fibres are bruised to make them more flexible and frayed to increase their surface area, giving greater contact for bonding between the fibres when they are finally dried in a sheet.

The amount of refining determines the final character of the paper. Heavy refining is needed to give a hard dense translucent sheet such as greaseproof or tracing paper.

A typical refiner consists of a barred metal cone rotating inside a barred conical shell. As the pulp mixture (known as stock) passes through the very small gap between the moving bars, the indiviudal fibres are refined.

The stock is diluted with recylced water from the paper machine and passed thróugn the pulp cleaning and screening installation. The most widely used type of cleaner used is a vortex cleaner.

Where stock is derived from waste paper, a different process is used. The slusher is heated by steam and has devices to remove gross rubbish. More cleaning is needed than for pulp and a de-inking plant is used if products of high quality are to be made. A steam-heated pitch dispersal plant may be needed to reduce the contamination of the stock by plastics often found in waste paper. Minimal refining is required.

The papermaking machine consists of a number of machines in series with synchronised drives, performing different functions. The overall function is to remove water from the stock and leave the fibres in the form of a sheet.

Paper machines are typically 50 m long and 3 to 5 m wide. The number of components in each part of the machine varies. Typically there may be three presses and 40 drying cylinders.

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The thin stock ie fibres suspended in about 200 times their weight of water, flows out of a narrow slit onto the 'wet end' which is a wire-mesh conveyor belt as wide as the machine. Most of the water is drained or later sucked through tne mesh, leaving a layer of fibres felted together. More water is squeezed out in the presses before the sheet enters the dryers where it is held against steam-heated cylinders. After passing over about 30 drying cylinders, the dry sheet is sometimes passed through a size press which treats both sides with solutions aimed at modifying the surfaces of the sheet. Further drying follows. About 2 tonnes of water has to be evaporated from each tonne of paper made. A calender roll smooths the surface of the paper before the sheet is finally reeled at the dry end of the paper machine.

Some papers are coated with a mixture of pigments and binders, after which further drying is required. The coater may form part of the paper machine or coating may be done as a separate process.

The amount of finishing depends on the end-use of the paper. For some purposes the machine reel is slit and rewound into narrower reels which may then be cut into sheets before inspection and packing for despatch.

Ten to twenty per cent of the paper fails to reach the warehouse in saleable form. Paper torn in processing and offcuts from finishing are known as broke and are recylced within the mill.

For making board, stock is usually prepared in two or more parallel systems, and the wet end is adapted to handle several plies which are successively merged in the presses.

Paper making machines generally run at speeds of Detween 100 and 1000 m/min. Board machines are the slowest and tissue machines the fastest.

Board type packaging materials are made by a conversion process in which three layers of paper are laminated together. The middle ply, (fluting) is corrugated during the process and the outer layers, called the liners, are glued to the peaks.

The raw material for the fluting medium is normally a mixture of waste paper and semi-chemical pulp, but it may be made from 100 per cent mixed waste. The liners are made from waste paper with added kraft pulp.

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European Communities — Commission

EUR 8792 — Energy audit No 3 - Pulp, paper and board industry in the European Economic Community

PA Management Consultants Ltd

Luxembourg : Office for Official Publications of the European Communities

1988 — IV, 101 pp. — 21.0 x 29.7 cm

Energy series

EN

ISBN 92-825-4063-4

Catalogue number: CD-ND-83-121-EN-C

Price (excluding VAT) in Luxembourg:

ECU 6.55 BFR 300 IRL 4.80 UKL 3.70 USD 6

The report evaluates energy consumption patterns of the European paper and board industry. Energy costs have shown a historical increase in all Member States and represent today between 11 and 15% of total production costs. The main functions for which energy is used are drying, refining, machine operation and cleaning of waste. The report stresses the importance of effective energy management and organization at mill level. As to the technical aspects, it recommends a detailed investigation into the application of combined heat and power systems and indicates particular measures for research, development and demonstration. The implementation of all conservation opportunities could, in the longer term, save as much as 25% of energy consumed, which means savings of up to 150 P.J. per annum.

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