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8/10/2019 Biorefining Opps for Chemical Pulp Mills JonRyder CHH
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1
Biorefining Opportunities for
Chemical Pulp Mills
BANZ Conference 7th June, 2012
Dr Jon RyderChief ExecutiveCarter Holt Harvey Pulp, Paper, and Packaging
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Key messages
1. Biochemicals and bio-fuels will be future products fromthe pulp & paper industry
2. Large scale is needed if they are to be nationally
significant
3. Such products must be co-manufactured alongside Kraft
pulp in an integrated biorefinery
4. The co-product options and development pathway are
not yet clear => Woodco Strategy has a key role
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Fermentation
Distillationretreatment
Thermal
Power
Pelletizing
Steam
Direct Pyrolysis
Pre-Drying
Gasification
Pelletizing
Pre-Drying
Power
Torrefaction
Steam
Gas
Turbine
Steam Power
Direct Combustion
Bio-oil
Direct Combustion
Enormous Worldwide Interest in Biofuels
Hydrocarbons
Al ae Metabolism
Deoxygenate
Biomass
Chemical
Pulp
team
iquor
Recovery
Gasification
Gas
Turbine
Steam Power
Ethanol
Steam
Reforming
Catalysis
Chemicals
Chemical
Pulping
Extraction
Steam
Ethanol
Power
Thermochemical
Chemicals
Power
Fermentation Ethanol
Source: Prof. R. Phillips, NCSU
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Outline of Presentation
1. Introduction and outline of our current pulp &paper business and operations
2. The opportunity for New Zealand
- Issues that must be addressed
3. What is the solution for New Zealand?
4. Some real industry examples
5. Conclusions
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Carter Holt Harvey at a glance
Pulp, Paper & Packaging Building Supplies Group
Market pulp
Kraft packaging
papers
Recycled
packaging
papers
New Zealand
Corrugated boxes
Paper bags
Specialty board
Australia
Corrugated boxes
Paper cups
Timber
LVL
Plywood
Flooring
Panels
Distributor of
building
supplies
Frame and truss
manufacturing
Timber
LVL
Plywood
Flooring
Panels
Total Revenue $NZ 3.1 billion
NZ-made export revenue Over $NZ 800 million
NZ Employees Over 3,400
Key Metrics - 2011
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Pulp, Paper & Packaging – Operations
Pulp &
Paper
Kinleith pulp mill(softwood andcontainerboard)
Tasman pulp mill(softwood &hardwood)
Lodestar FullcirclePenrose Mill
275,000 tonnesof Bleachedmarket pulp
335,000 tonnesof Kraftcontainer board(#6 Papermachine)
290,000 tonnes ofBleached,Unbleached, Fibrecement and Lowcoarseness
market pulp
85,000 tonnesof recycledcontainerboard
Shippingandtransport
14 recycledfibre facilities
300,000tonnescollectedannually
Packaging
CorrugatedNew Zealand
CorrugatedAustralia
CupsPaper Bag
Manufacturer ofcorrugated packaging inNew Zealand (35%market share)
3 corrugated plants and1 specialty board plant
Manufacturer ofcorrugated packaging inAustralia (5% marketshare)
2 plants
Manufacturer ofmultiwall sacks (90million sacks perannum)
1 Plant in Auckland
Manufacturer of papercups for the Australianand New Zealandmarkets
1 plant in Brisbane
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sustainable business
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Fibre Supply
·Wood fibre - 3.7million tpa· ~ 34% of the wood processed in NZ· Sourced from managed plantations· 30% sourced as sawmill chip· Mainly FSC Controlled wood
· Recovered fibre· 300,000 tpa
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Early mover in energy efficiency and CO2 emission
reduction
Example - Kinleith mill 1990 to 2011
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
CO2 emissions total Production tonnes
P
o
o
C
O
T
o
1990
2011
Production increased
by 60%
CO2 emissions reduced
by 30%
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.80.9
Emissions intensity ( TCO2/T product)
Emissions Intensity
reduced by 70%
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Kinleith Energy Sources and Generation
· 80% of primary energy from biomass.
· 50% of electricity is internally generated
N o . 7
P r i m a r y B o i l e r
N o . 8
P r i m a r y B o i l e r
N o . 5
R e c o v
e r y B o i l e r
N o . 4
R e c o v
e r y B o i l e r
Co-generation Plant
4 5 0 0 k P a S t e a
m
4 5 0 0 k P a S t e
a m
1250 kPaSteam
450 kPa
Steam
C o n d e n s a t e
C o n d e n s a t e
C o n d e n s a t e
C o n d e n s a t e
4 5 0 0 k P a S t e a
m
Kinleith Steam Users
Gas
12.8%
Oil
1.6%
Wood
Waste
16.9%
Imported
Electricity
6.0%Black
Liquor
62.8%
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Future business model
650
750
850
950
1050
2 0 0 1
2 0 0 2
2 0 0 3
2 0 0 4
2 0 0 5
2 0 0 6
2 0 0 7
2 0 0 8
2 0 0 9
2 0 1 0
2 0 1 1
Production tonnes per FTE · Continuous
improvement in
productivity in the last
decade has maintained
profitability
· New co-produced bio-
products will add
significant new revenue
and justify future
investments
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CHH PPP - Bio-energy and bio-chemicals
· These mills are on a scale to efficiently utilise the
available wood supply· process 34% of the wood processed in NZ
· They use almost all the “waste” wood within their
catchments· Most is used to produce high value Kraft fibre· The rest is used as bio-energy
· The mills are biorefineries
· Largely run on renewable bio-energy and cogenerate their ownelectricity
· They already produce significant value from bio-chemicals fromthe wood – Turpentine and Tall Oil
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2. The Opportunity for New Zealand
· NZ will need more renewable energy in the future
· For bio-fuels to make a difference to New Zealand, it
needs to be at scale. For example:
· NZ consumes 6.1 billion litres/a of transport fuel **
· To replace 20% of that with ethanol from trees wouldrequire 9Mt/a of trees or residues (~ 80% of NZ’s
processed wood)
** Parliamentary Commissioner for the Environment, 2010
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New Zealand’s fibre resource will continue to drive significant
export revenue – opportunity to value add
Total New
Zealand
roundwood
cut from all
forests
22million
tonnes per
annum
Domestic
Processing
Export Logs Main export market has traditionally been
Korea (~2.5 million)
Strong demand recently from China, nowrepresenting largest export market (~6.5
million)
India is also growing steadily (~1.0 million)
Other (~1.0 million)
Pulp, Paper & Board Mills(~6 million)
Other domestic manufacture
(~5 million)
Combined
export
revenue of
NZD 4.8
billion
(almost 70%
of wood
harvested
ultimately
exported as
either logs or
value added
products)
Domestic
consumption
of ~NZD 2.0
billion
11million
tonnes per
annum
11million
tonnes per
annum
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Harvest volume forecast to increase significantly over the next 10 to20 years providing additional export growth opportunities
21
32
38
0
5
10
15
20
25
30
35
40
2011 2021 2031
M
i
o
T
o
Year Ended 31 March
NZ Forests National Harvest
(constrained scenario)
Source: “A Forestry Sector Study” – Ministry of Agriculture and Forestry
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Key issues and questions we must face whenevaluating bio-energy options
· Bio-energy from wood residues may work at small scale but at large
scale all the “waste material” already has an economic value.
· Stand-alone bio-energy from trees or wood residues on a large scale
cannot pay enough for the fibre to be economic without large end-
use subsidies
· What will work at a sufficiently large scale to be significant within the
NZ economy (eg. 4 Mt/a wood)?
· Can the best bio-energy options compete with conventional products
and bio-chemicals for capital and available raw material?
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Other countries are asking the same questions!
Top ROCE Technologies – B.C. Central Interior
0%
10%
20%
30%
40%
P o w e r v i a g a s i f i c a t i o n m e
d ( E )
V a l u e A d d e d P a r t i c l e b
o a r d
O S B m e
d i u m
E t h a n o l v i a S y n g a
s ( E )
N B S K + H & P M e d i u m + L
i g n i n
L V L S
m a l l
P e l l e t s W e s t m e
d i u m
L i g n o l C o m m
e r c i a l
O S B
l a r g e
S P F W e s t L a r g e + P e l l e t s L
a r g e
S P F W e s t m e
d i u m
P e l l e t s W e s t s m a l l
L i g n o l C o m m e r c i a l B r o w
n f i e l d
L V L
l a r g e
S P F W e s t
l a r g e
S P F W e s t L a r g e + P e l l e t s s m a l l
D i s s o l v i n g P u l p - V i s
c o s e
A c e t a t e v i a S y n g a
s ( E )
S P F W e s t L a r g e + P y r o l y s i s
N e x t e r r a S y n g a s
d r y e r
P y r o l y s i s S t a n d - a l o n e
C H P v i a P y r o
l y s i s
C H P D
i r e c t
T o r r e f i e d P e l l e t s W e s t
N e x t e r r a C H P s m a l l ( < 1 0 M w )
C H P ( 1 7 . 8
M W )
B i o c a r b o n W e s t S
m a l l
C r o s s L a m i n a t e d T i m b e r - M e
d i u m
17
Cost of Capital 11%
Source: FP Innovations, Canada
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Borregaard on ethanol production and biorefineries
Source: Borregaard, Norway
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3. What are the bio-product solutions forNew Zealand?
· Must be at large scale
· Must be co-produced with higher value products, for raw
material to be economic
· But what solutions should we focus on?
· Kraft mills have the potential to co-produce bio-energy,
bio-fuels and bio-chemicals
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20
Chemicals and fuels from wood
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Chemrec Black Liquor GasificationEnhanced output of power through gas turbine
Production of chemicals and fuels through F-T Catalysis
Source: www.chemrec.com
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Lignin Removal
Ligninremoval
Recovery boiler
Digester
Evaporation
Pulp bleaching
White liquorpreparation
Wood chips
Pulp
Source: LignoBoost
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Recovered Lignin Applications
• Low Value
- Burn to improve boiler efficiency
- Pelletize to improve energy density
• Medium Value- Convert to phenolic resins
- Gasify and convert to transportation
fuels or other petroleum based
chemicals
• High Value
- Carbon fibers for lightweight
composite materials
Source: LignoBoost
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Technology Fit Status
Gasify waste
wood to
eliminate Lime
Kiln Fuel
Not required in hog fuel boiler to be power
neutral
Multiple commercial
applications (Andritz
Machinery and Metso)
Extract lignin
from black
liquor
30% excess lignin to be power neutral 20,000 tpa semi-works
plant production in
Sweden for more than 3
years (Lignoboost®)
Convert tall oil
to biodiesel
Tall oil currently converted to gums and
rosins, may be of higher value as
transportation fuel
UPM (Finland)
announced 150 Million
investment at the
Kaukas Mill
Chemrec® Gasifies black liquor and converts biogas to
synthesis gas which can be catalytically
converted to transportation fuels
Under development for
>20 years with
successful pilot scale
DME production in
Sweden
Biofuels / Bio-products Real Developments
Source: Prof. R. Phillips, NCSU
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Technology Fit Status
Extract
Hemicelluloses
from wood
chips prior to
pulping
• Required for Dissolving Pulp
Production
• Produces superior pulp for tissue
application
• Produces superior pulp for absorbent
applications
• Hemicellulose
extraction practiced at
more than 20 dissolving
pulp mills in the world
• Conversion to ethanol,
butanol, poly lactic acid
full scale mill
evaluation in progress
(Old Town Fuel & Fibre,
Maine, USA)
Biofuels / Bio-products Real Developments
Source: Prof. R. Phillips, NCSU
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Resins and adhesives
Pre-
treatmentand
separation
processes
Conventional pulping and
papermaking processes
natural polymers
Marketable Products
Combustion
Paper grade pulps
Dissolving pulps
Composite productsPapers and packaging
Biofuels/chemicals
Biochemicals
Gasification Synthesis gasCO + H2
purification, catalytic
synthesis
HP steam generation Export power
Heat (steam)
Biofuels/chemicals
Process fuel (NG)
Lignin from BL
Sugars
Resin/fatty acids
Bark tannins sepn/chemical
chemical
chem or biochem
chemical
Modified lignins
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Fermentation
Distillationretreatment
Thermal
Power
Pelletizing
Steam
Direct Pyrolysis
Pre-Drying
Gasification
Pelletizing
Pre-Drying
Power
Torrefaction
Steam
Gas
Turbine
Steam Power
Direct Combustion
Bio-oil
Direct Combustion
Enormous Worldwide Interest in Biofuels
Hydrocarbons
Al ae Metabolism
Deoxygenate
Biomass
Chemical
Pulp
team
iquor
Recovery
Gasification
Gas
Turbine Steam Power
Ethanol
Steam
Reforming
Catalysis
Chemicals
Chemical
Pulping
Extraction
Steam
Ethanol
Power
Thermochemical Chemicals
Power
Fermentation Ethanol
Source: Prof. R. Phillips, NCSU
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Conclusions
1. Co-manufactured biochemicals and bio-fuels will be an
integral feature of the pulp & paper industry
- Maximising value from the whole tree
2. The best co-product options and development pathway
are not yet clear
3. Woodco Strategic Action Plan
- Pan-industry collaboration essential
- Scion-FP Innovations Techno-economic Study
- Alignment and targeting of R&D
- “One voice, one ask”
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Questions?