Moving Forward withClean Technologies

Global Cleantech Summit8 September 2015Marita NiemeläVP, StrategyValmet Pulp and Energy

AgendaGlobal Cleantech Summit

Cleantech Summit

1 Valmet in brief

2 Trends and drivers

3 Case examples

4 Summary

Valmet in Brief

Unique offering covers process technology,automation and services

� Valmet develops and suppliesadvanced technologies, automationsolutions and services

� We combine pulp, paper and energytechnology, process know-how andautomation– Enabling innovative product and service

development– Increasing competitiveness

� Full scope offering differentiatesValmet from its competitors

Cleantech Summit

Customer

Services Automation

Process technology

5

18 %

12 %

44 %

11 %

15 %

North America

EMEASouth America

Asia-PacificChina

Orders receivedEUR ~3,400 millionNet salesEUR ~2,800 millionEmployees ~12,000

Market position#1-2 Services#1-3 Pulp and paper

automation#1-2 Pulp#1-3 Energy#1-2 Paper, board, tissue

Valmet’s key figures including AutomationBased on combined illustrative figures from 2014 (1

36%

11%35%

19%

Net sales bybusiness line

Services

Pulp and EnergyPaper

Automation

Net sales bygeographic area

1) Combination of Valmet and Metso Process Automation System figures for 2014

Cleantech Summit

Our operating principles and sustainability agendacreate the basis for our work in cleantech

Operating principles• Code of Conduct• HSE policy• Sustainable Supply policy• UN Global Compact• ISO management systems

Sustainability agenda• Sustainable supply chain• Responsible operations

(HSE)• People and performance• Cost-effective sustainable

solutions• Corporate citizenship

Sustainability reporting• Annual reporting according

to global standards• Third party assurance• Sustainability indices: DJSI,

CDP

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Trends and Drivers

How to Enable Global Economic Growth withoutRisking the World’s Sustainable Future?More people – higher demand for energy, fiber, fuels, and commodities

Dependenceon fossil fuels

Arable land

Biomassand residues

Populationgrowth

Global warming

Clean air

Waste

Fresh water

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Case examples

Paper Case Example: OptiConcept M board andpaper machine

� Cost-efficient, high-quality, safe andflexible board making concept

� Significant savings in energy, waterand raw material use– Energy efficiency improvement up to 30%

� Modular and compact size– Short delivery times, quick start-ups, and

less production space

� Functional design brings increasedsafety and accessibility– Design acknowledged in Finnish design

competition in 2014

Board machineLiansheng Paper PM 6, China

10

Case

Valmet has receivedaltogether 10 orders forOptiConcept M board andpaper machines

Cleantech Summit

Pulp Case Example: Key technologies tobioproduct mill

� New bioproduct mill with 1.3 milliontonnes pulp production– EUR 1.2 billion investment is the largest

investment of the forest industry in Finland

� Valmet delivers key technology– Recovery boiler, pulp drying line, gasification

plant, lime kiln and a mill wide Valmet DNAautomation system

– Production at the new mill is scheduled tobegin during the third quarter of 2017

� Maximized bioenergy utilization– Lime kiln fuelled by biogas from gasification

plant– High power features in recovery boiler

allows the mill to sell more bioelectricity tothe market compared to own consumption

Cleantech Summit

Bioproduct millMetsä Fibre, Äänekoski, Finland

Photo: Metsä Group – illustration of the new bioproduct mill

Case

Pulp Case Example: New Revenue StreamsThrough Lignin Separation

LignoBoostTM lignin separation processconnected to pulp mill chemicalrecovery.Plant capacity 440,000 tons of fluffpulp.Converting a low value stream intopotential revenue by separating ligninfrom black liquor.Key results� Lignin can be utilized as renewable fuel

replacing fossil fuels and as new bio-material for many industries

� Increase of pulp production capacityby 5% and efficiency by off-loading therecovery boiler

Pulp mill lignin recoveryDomtar, Plymouth, NC, USA

Annual yield of 25,000 tons lignin

Case

Second LignoBoostdelivery to StoraEnsoSunila Mill, 50,000 tonslignin annually

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Energy Case Example: Gasification Plant forEnergy Production

Circulating fluidized bed gasifier plantthat converts waste into product gas.

Processing of 250,000 tons of solidrecovered fuel to 42 MW of electricityand 90 MW of district heat

Key results� Higher power generation efficiency from

waste to energy compared to combustion

� Reduction of fossil fuels as 30% of coalwas replaced by waste-fuelled energy

� CO2 emission reduction of 211 000 tons

Gasification PlantLahti Energia Oy, Lahti, Finland Case

Cleantech Summit

3,300 railway cars of coal replaced by waste-fuelled energy

Biotech Case Example: Climate-friendlyBioethanol from Agricultural Waste

Second generation bioethanolproduced from agricultural wasteUp to 1,000 tons of cellulose ethanolfrom around 4,500 tons of wheatstrawKey results� Biofuel cuts CO2 emissions by

about 95% compared to fossil-based

Germany’s largest secondgeneration bioethanol plantClariant, Germany

Renewable fuel for over 1,000 cars runningwith 100% bioethanol

Case

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Environmental Systems Case Example: Nearzero emissions for extreme fuel flexibility

Air pollution control systems for a 125MW th fluidized bed (CFB) boileroperating on Refuse Derived Fuel :� Selective non catalytic reduction of

nitrogen oxides� Furnace sorbent injection for removal of

sulphur dioxide� Particulate removal by electrostatic

precipitator, bag house filter withactivated carbon, and sodium bicarbonateinjection

� Flue gas scrubber for acid gases andpolishing

Key results� Near zero emissions for extreme fuel

flexibility

Emission ControlStora Enso Langerbrugge, Gent, Belgium Case

� xxxxxxxRefuse Derived Fuel comprises untreated andtreated wood, coal, and gas

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Automation Case Example: Automation forbiorefineries

� Neste produces renewable dieselwith NExBTL production technology

� Valmet deliveries to Singapore andRotterdam refineries– Each plant is controlled by two Valmet DNA

automation systems– Field device management is controlled by

Valmet DNA Field Device Manager

Key results� Redundancy for all the major system

parts

� Integrated to safety and reportingsystems

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Renewable diesel refineryNeste, Singapore

Summary

Creating value to our customers by convertingrenewable resources into sustainable results

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Services Automation

Process technology

Lower energyconsumption

Lower freshwater

consumption

Lesschemicals

Utilization ofrenewable energy

High raw materialutilization and

increasedrecycling

Emissionreduction

Converting renewable resources intosustainable results

Cleantech Summit

End-products

Services

Automation

Technologies

Rawmaterials

Customerindustries

Heat Electricity Chem pulpDiss pulp Mech pulp Paper Board Tissue

Biogas Biofuels Biochemicals New paper gradesBiomaterials

Energy production Biofuel refining Pulp Paper

Waste Recycled paper

Pulp

Agro Wood

Energy Paper