128.4.2016

Environmental indicators for paper/board value chains based on paper for recycling –

Challenges of allocation methods

Catharina Hohenthal – VTT (Finland)Jorge León – ITENE (Spain)

Workshop on 19th of April 2016, Darmstadt, Germany

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Co-funded by the European Union

Index

1. Life Cycle Assessment – Value Chain2. Resource efficiency indicators3. Reffibre cases testing indicators4. Allocation Methods 5. Testing the methods6. Conclusions

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Sustainability objectives and challenges

The value chain level impacts of energy and material savings due to optimized use of recycled fiber

Identifying indicators suitable for resource-efficiency in pulp and paperindustry, taking into account the recycling loop Allocation of the burdens between different life cycles

(background processes, co-product allocation, number or reusecycles for fibre recycling, etc.)

To develop tools to be used for product design taking into accountenvironmental and economic impacts throughout the value chain Converting the LCA and economic impacts to exploitable data for

monitoring the processes

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Paper Value Chain

Deinking

Papermaking Converting use collection

Waste sorting

Sorting of paper

NEW processes

Incineration

Fresh fiber

Recycled fiber

Fiber from other value chains

Landfill

Pulping (mech./chem.)

WWT

E.g. EtOH

ELE Water

Ash

Reffibre process in focus

Outside focus

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Co-funded by the European UnionProcess models

The process models have to describe the modification of the materials by the process but also the effects of the process on the environment

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Life-cycle thinking should be the basis of the sustainability indicators

LCA is based on inventory

Inventory is based on product value chain

Value chain includes e.g. energy, chemical, raw material useand emissions in a transparent way

PROCESS

Life Cycle Assessment – LCA

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CalculationsWhat kind of data is needed? Where to find it?

Data sources: • Process data measured by researchers• Data from manufacturer• Database data• Literature

The resource efficiency indicators are calculated by using LCA methodology Calculations made with SULCA and Simapro LCA softwares Data for the core processes were collected from the industrial partners in order

to calculate the reference scenarios The background process data was taken from VTT EcoData or EcoInvent data The recycled fiber and its processing was modelled using allocation rules

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Indicators describing performance

ENVIRONMENTAL INDICATORS (examples)

Greenhouse gas emissions (CO2eq) Total amount of energy required (CED) Amount of renewable materials, biobased Water use, (H2Oeq) Eutrophication potential (P eq)

ECONOMIC INDICATORS (examples)

Utilization rate % Changes in cost % Change in revenue %

Different data sources!

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Reffibre cases and how indicators describe changes

Utzenstorf cases Holmen cases Vrancart cases

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Material efficiencyCase Utzenstorf

Material efficiency is increased in all cases but “increased rejects”, where the amount of waste is increased

Material efficiency is highest for “WPC ash”, where 100% of the ash fraction is utilised, and largest amount of useful products are produced (paper + WPC)

Pyrolysis case shows increased material efficiency due to decreased waste (sludge) and increased products (paper + minerals)

Totalweight of useful products

Totalweigthof useful products waste

(Sheldon et al. 2015)

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Water scarcity footprint (Pfister 2009)Case Utzenstorf

Quantitative use of water throughout the product chain was assessed, taking into account:

1. Volume of consumed water 2. Location of the water use

Paper mill and energy production: Swiss water scarcity index

Rest of the product chain (chemicals, fuels): average European water scarcity index

“Less rejects”: increased electricity use at DIP plant slightly impacts the WF “Increased rejects”: increased used of

chemicals and PfR at DIP plant and impacts the WF

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Climate impact case Holmen

When the disposal of sludge is avoided the CO2 eq. decreases with 22%

The sludge is used to produce WPC or pyrolysis oil which both are sustainable compared to Possible references e.g. PP products

polypropyleneinjection moulding

WPC injectionmoulding

polypropyleneprofile extrusion

WPC profileextrusion

Polypropyleneproduction

WPC productionfrom sludge

baseline sludge to Pyrolysis

Pyrolysis of sludge

electricity compensation

Disposal of sludge

Transport

Fuel production and powergenerationPapermaking chemicals

Papermachine

Deinking chemicals

Deinking plant

Waste paper collection

The benefit of producing pyrolysis oil and minerals via the pyrolysis process is not taken into account here

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Water scarcity footprint (Pfister 2009)Case Holmen

Baseline Reffibre cases

electricity compensation

Deinking chemicals

Disposal of sludge

Fuel production and powergenerationDeinking plant +PapermachinePapermaking chemicals

Transport

Waste paper collection

WPC injectionmoulding

WPC profileextrusion

Polypropylene

PolypropyleneproductionWPC production fromsludge

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Case Holmen - Economic indicators

Injection molding Profile extrusionVariable cost indicator Icv= 137 % 121 %

Revenue indicator Ip= 98 % 98 %Profitability indicator *) IV= 35 % 61 %Achievable savings **) ISAV= 8.9 % 20 %

Red font = negative effectGreen font = positive effect

*) Fixed costs not included. **) At annual level, takes also into account fixed operation costs EXCEPT investments

Sludge‐WPC

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Results- Comparison side by side

Investment estimations are included for WPC processes

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Vrancart – Environmental Assessment

2,04%

4,94%

2,78%

4,21%

0%

1%

2%

3%

4%

5%

6%

IPCC GWP 100a Freshwatereutrophication

Fossil depletion Total CED(renewable and non

renewable)

% Reduction (Reffibre & Baseline scenarios) Fibre Flow method

2,31%

4,96%

3,27%

4,45%

0%

1%

2%

3%

4%

5%

6%

IPCC GWP 100a Freshwatereutrophication

Fossil depletion Total CED(renewable and non

renewable)

% Reduction (Reffibre & Baseline scenarios) ISO 14067 method

The test case for packaging paper production in Vrancart aims at describingthe potential improvements in the packaging paper production according tothe Best Available Technologies (BAT).

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Vrancart – Economic Assessment

Indicator % change comparing Reffibre & Baseline scenarios

Sum of variable costs 4.5%

Revenues 10.3%

Profit (variable) 15.3%

Savings: Profit (operation) 16.6%

BAU Unit

Affordable investment 29 M-€

Estimations: • Cost of capital 5%• Payback period 14 years• Resulting annuity factor 10

Fixed operations costs estimations: • All: 10% share of variable operation costs• Labour: 60% share of fixed operation costs• Overheads: 35% share of fixed operation costs• Maintenance: 5% share of fixed operation costs

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Conclusion on indicators

As can be seen the indicators selected show differences in environmental and economic impacts of the changes made at the case mills. The Material efficiency indicator is very easy and informative

when calculating benefits from turning waste into side products CO2 eq. and H2Oeq. needs to be calculated by system

expansion and avoided emissions since there are multiple products as functional units The indicators chosen are good for the purpose

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Allocation methods

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How to treat recycling in LCA studies

Reuse and recycling may imply that:

Inherent properties of materials in subsequent use are changed

Inputs & Outputs associated with processes for extraction & processing of raw materials final disposal of products

are to be shared by more than one product system

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How to treat recycling in LCA studies

Open-loop allocation:

Procedures according to ISO/TS 14067:

The material is recycled into otherproduct systems

The material undergoes a changeto its inherent properties e.g. different length of

recycled fibres: REFFIBRE

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How to treat recycling in LCA studies

Basis for allocation “A” (according to ISO/TS 14067)

1. Physical properties (e.g. mass)

2. Economic value: market value for the recycled & primary material

3. Number of subsequent uses of the recycled material

MFA (Mean Fibre Age)

MNU (Mean Number of Material Uses)

MFA+MNU-1: Mean number of product cycles the fibres of a given

paper product will undergo during their life

Fibre flow modelling

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Allocation methods in REFFIBRE

2 approaches for allocation are tested for REFFIBRE:

a) Allocation method combining ISO 14067 and the Medium Fibre Age (MFA) and Medium Number of Uses (MNU)

b) New approach based on results from the fibre flow model developed in task 1.4.

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Method based on ISO/TS 14067

ET = Ev * Ai * C + Epp * C + EV * (1 – C) + EPM + EEoL – R * Ao * Ev

EV = Impact tied to extracting or producing all the raw material needed for the product, from natural resources

EEoL = Impact tied to end-of-life operations (being part of the product system which delivers recycled material)

Ai = Allocation factor of the recycled material which enters the product system =

(MNU) / (MFA + MNU – 1)

EPP = Impact tied to pre-processing of the recycled material in order to fulfil the quality requirements of the substituted primary material

Ao = Allocation factor of the recycled material which leaves the product system =

(MNU – 1) / (MFA + MNU – 1)

R = recycling rate ; ∗ ∗ = recycling credit

C = Recycling content of the

product

Epm = Paper making process

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Method based on fibre flow model

1 ∙ 2 ∙

U: Paper for Recycling utilisation rate of the product

EW: Impact tied to waste management

Allocation factor for virgin fibre usage Allocation factor for recycled fibre usage =

= Allocation factor for not recycled paper products / rejects going directly into waste =

= Allocation factor for products being recycled (and going later into waste) =

R: Recycling rate of the product ERec: Impact tied to recycling

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Testing allocation formulas – Holmen case study

-56 -56 -56

-388

572

136

501

501

501

445

445

445

244

244

268

-1000

-500

0

500

1000

1500

2000

cut-off, noallocation

ISO14067 fibre flowmodel

EoL

paper making

processing ofrecycled material

burden withrecycled

recycling credits

sold electricity

Cut-off does not include allocation: No burden for incoming recycled

material No credits from end of life recycling

For carbon footprint: ISO14067 approach: +15% more

emissions than cut-off Fibre flow model approach: +13%

more emissions than cut-off.

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2,31%

4,96%

3,27%

4,45%

2,04%

4,94%

2,78%

4,21%

0%

1%

2%

3%

4%

5%

6%

IPCC GWP 100a Freshwater eutrophication Fossil depletion Total CED (renewable and nonrenewable)

Comprasion of % of reduction in both methods

% reduction ISO 14067 % reduction Fibre flow model

Testing allocation methods - Vrancart

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Testing how the methods work when C/U changes Formulas leads to different emissions with different recycled material contents How emissions evolve when C increases depends on:

Allocation factors (MNUs and MFAs): debits from the previous life cycles & credits from the future life cycles (recycling credits)

Emissions (Ev, Epp, Eeol, Erec, Ew etc.): especially changes in Ev have a clear impact on whether emissions decrease or increase when C changes

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Conclusions about allocation

Both approaches for allocation are used for Reffibre cases in Holmen,Utzenstorf and Vrancart to test how formulas work in ”real life”Paper and board value chains have been tested

When using allocation methods the main challenge is to find the right valuesto perform the calculations with the formula The results depend on the values used for recycling rate, number of uses, etc.

The use of recycling rate, number of uses, etc. have to be clearly definedand understood because the use of these affect the results significantlyThese need to be added to e.g. Product Category Rules so that the

calculations can be made as uniformly as possible Next steps: introduction of these guidelines for industry on EU level

(standards, Product Category Rules - PCR)

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Conclusions

Life cycle assessment is used as a methodology to take intoaccount the impacts along the whole value chain There is a need to have an easy tool for companies to integrate

environmental issues REFFIBRE project is helping by

Modelling the fiber flows and to get the average number ofuses for the different paper grades Selecting the most suitable allocation methods needed to carry

out LCA calculations Integrating the modelling in a common tool

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Acknowledgement

The research leading to these results has received funding from the European Community's Seventh Framework Programme under grant agreement n° 604187.

Thanks for your attention