America's Greenback, An Environmental Perspective

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    Americas

    GreenbackAn EnvironmentalPerspective

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    Welcome

    United States currency plays a significant role in the daily

    lives of every American. We earn it, we spend it, we saveit. We accept it at face value as it passes from hand to

    hand. And except when the look of our bills change, we

    rarely contemplate that there might be more to our

    currency than ink on paper.

    Just like our fellow citizens, United States currency paper

    plays a significant role in the daily lives of my family and

    the families of our employees. We earn it, spend it and we

    save it. But most important of all, we make it.

    We have made paper for currency for more than 230 years. Paul Revere was our first customer

    in 1776. Neither he nor Stephen Crane, who made the paper for him, contemplated the

    environmental implications of papermaking. To be honest, it would take several generations.

    But more than 50 years ago, before Silent Spring, before the EPA and before Earth Day,

    members of the Crane family took a look over the horizon and began making some ground-

    breaking changes to create a well-managed balance between stewardship of their business and

    stewardship of their environment.

    We are proud of what we have accomplished over the years, and are happy for the

    opportunity to share these accomplishments with you. But we also remain vigilant foropportunities to improve our environmental performance while making the highest-quality ,

    most sought-after paper in the world.

    Sincerely,

    Charles Kittredge

    President and Chief Executive Officer

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    Cranes Raw Materials Tree-FreeSince the American Revolution, Crane has made its currency and banknote

    papers exclusively from tree-free raw materials cotton and linen. Backthen, cotton and linen rags were the only viable materials available to

    papermakers. It wasnt until the 1870s that trees were cut to make paper .

    Crane made a conscious choice then to continue making its papers from

    cotton and linen, developing unique expertise with these fibers. The

    percentages of cotton and linen have varied over the years, but these two

    fibers remain the foundation for U.S. currency paper.

    Crane uses several forms of cotton fibers for currency paper . The vast

    majority is recovered from the solid-waste stream. We use waste cotton that

    is not suitable for textiles, and the trimmings from cotton garment manufac-turers. These fibers are supplemented by staple cotton grown in the

    Southwest.

    Crane no longer uses linen rags for U.S. currency paper , but rather the flax

    fibers that are not suitable for the manufacture of linen textiles.

    There are several advantages in using these fibers to make U.S. currency

    paper, in addition to the fact that they are tree-free. Cotton and flax are

    readily renewable, and Crane has spent generations developing the

    infrastructures necessary to recover waste fibers. Because of their inherent

    purity, they generate a much higher percentage of papermaking fiber andcreate less waste in the papermaking process than other raw materials.

    It also happens that cotton and flax make one of the most durable papers, a

    necessary trait for U.S. currency paper. Among the myriad requirements for

    strength and durability of currency paper is the double-fold test. Currency

    paper must exceed 4,000 double folds. Any normal paper might survive 400.

    Crane continues to seek out cleaner

    forms of cotton and flax

    to reduce the amount of waste

    generated and energy used by its raw

    material and papermaking processes.

    Left: Recovered cotton and

    flax fibers are the tree-free

    raw materials from which

    Crane makes United States

    currency paper.

    Above, right: Cranes first

    advertisement in 1801,

    soliciting recycled household

    rags.

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    O V E R

    T H E H O R I Z O N

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    Processing Cotton and FlaxBefore cotton and flax fibers can be made into paper , they must be refined chemically and

    mechanically. Even through cotton and flax are high-yield fibers, there are impurities thatmust be removed before the final papermaking process.

    Cotton fibers are protected from rain by a natural oil that needs to be stripped off prior to

    further processing. Since the majority are waste fibers, they arrive with small pieces of leaves

    and stems. Bales of flax contain portions of the plant stem that have been combed out during

    the textile-making process. All of these impurities must be eliminated so they don t end up

    contaminating the final product.

    To tackle these impurities, Crane literally cooks its cotton and flax fibers

    in a large vessel using a solution of so dium hydroxide, commonly known as

    lye. Over a period of an hour or two, the oils and other contaminants are

    cooked away, leaving a much purer collection of papermaking fibers.

    From this point, since the waterproofing oils have been removed, Crane s

    raw materials can now interact with water for further refining. First, they are

    cut to a shorter length, then run through a series of cleaners to remove any

    contaminants not cooked away earlier. To achieve necessary levels of bright-

    ness, cotton and flax are whitened using so dium hypochlorite, the same

    chemical used in household bleach.

    From here, about half of the water in the fiber slurry is pressed out, with theresulting processed raw materials ready to be shipped to the paper mill.

    Clockwise from upper left:

    Bales of recovered cotton

    fibers awaiting processing;

    a giant pressure boiler cooks

    out impurities; a pulper

    (hence beaten to a pulp)

    breaks down the cotton and

    flax into individual fibers;

    the textile fibers are

    bleached and finally formed

    into thick sheets ready for

    the paper machine.

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    Crane continues to investigate

    reduction in the use of both sodium

    hydroxide and sodium hypochlorite.

    Hydrogen peroxide is being evaluated

    for use in cotton rag processing.

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    O V E R

    T H E H O R I Z O N

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    WasteIt was noted in our introduction that 50 years ago Crane began taking steps to reduce its

    impact on the environment. The first major initiative was to divert the waste generated bythe papermaking process from the Housatonic River . The industrys first wastewater treatment

    facility was primitive by to days standards, but was a very visible statement from a family-

    owned business about what could be accomplished outside of a regulatory framework. Crane

    undertook this initiative for several reasons:

    G Appropriate technology had finally become available

    G They saw that sometime down the road, it would be required

    G It was the right thing to do now

    Today, waste and energy (following page) are closely interwoven.

    That papermaking waste from 50 years ago is now being evaluated as a

    source of biomass fuel to generate steam for Crane. A year-long pilot programwas begun in late 2010 that, if successful, would provide a portion of the thermalenergy demand to Crane for more than a decade.

    Clockwise from upper left:

    Cotton and flax fibers not

    suitable for papermaking are

    processed in Cranes waste-

    water treatment facility;

    water is first removed by

    suction and gravity; then

    by intense mechanical

    pressure; the dewateredwaste fibers are composted

    with leaf and yard waste to

    create topsoil. Clean water

    is discharged to the

    Housatonic River.

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    Because Cranes waste materials

    are organic in nature, Crane is

    investigating their use as a feedstock

    for higher-value-added materials.

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    process are removed from the water discharged to the Housatonic, they become a raw material

    Today's wastewater treatment plant is a state-of-the-art chemical, physical

    and biological facility designed to treat up to 7 million gallons of water per

    day, while removing 99% of suspended and dissolved organic solids.

    Once these organic materials left over from the pulp and papermaking

    for a new product rather than an environmental liability. After several years of research

    and trials, Crane's organic papermaking waste was certified by the state and federalgovernments for land application. At Crane's wastewater facility, water is pressed out of the solids,

    then transported to a nearby composting operation where they are mixed with municipal leaf

    and yard waste. The end product - topsoil - is used throughout the Northeast as the final

    cover for decomissioned landfills.

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    EnergyPapermaking is an energy-intensive business. Crane uses several sources of

    energy in its U.S. currency papermaking operations, including electricity,natural gas and fuel oil.

    But Crane has used renewable energy to make currency paper for almost 30

    years. In a ground-breaking initiative similar to creation of the first waste-

    water treatment facility, in 1979, Crane entered into an agreement with a

    fledgling waste-to-energy business called Vicon. An incineration plant was

    constructed on land Crane sold to Vicon for $1. The Energy from Waste

    plant incinerates municipal refuse to generate steam used for the company

    manufacturing operations. From 1981 to 1994, Crane pumped its papermak-

    ing waste to a dewatering device located at the V icon Plant for incinera-

    tion. Crane agreed to purchase the steam generated by the facility .

    Through this partnership, Crane was able to reduce its dependence on oil to

    generate steam. Vicon could also use their facility to attract greater volumes

    of waste material from around the region, thereby significantly reducing solid

    waste in landfills while producing renewable energy.

    Today, more than 70 percent of the energy used to making U.S. currency paper

    comes from that same waste-to-energy facility. As a result, Crane saves more

    than 2 million gallons of oil per year and emits up to 78 percent fewer green-

    house gases.

    Clockwise from upper left:

    Crane purchases 70 percent

    of its papermaking energy

    from a nearby waste-to-

    energy facility it helped

    create 30 years ago; steam

    generated is used in large

    part to dry United States

    currency paper; a steam

    line along the Housatonic

    River delivering energy to

    the mills.

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    Crane is exploring the potential for an

    alternative-energy industrial park which

    would house biomass energy production

    Crane is also evaluating the potential

    for solar energy installations to further reduce

    its dependence on fossil fuels.

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    O V E RT H E H O R I Z O N

    and bio-oil manufacturing facilities.

    In 2010, Crane purchased a turbine to once again capture energy from the

    Housatonic River to generate electricity for on-site use. The hydro plant, once

    operational, will provide a significant portion of the energy needed to process raw

    materials for U.S. currency at Cranes Byron Weston Mill. Also in 2010, Crane

    completed the engineering design for a back pressure turbine that will take the

    flow of the 220 PSI steam from the energy-from-waste plant and generate

    around 200 kW of electricity. Th is reduced steam after generating electricity

    and at a pressure of 100 PSI will then be used to dry paper on th e US currency

    paper machine.

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    At this writing February 2011 - Crane is addressing the opportunity

    to replace fossil fuel-derived energy entirely. To do so, the company

    is installing two small turbine projects and is supporting the

    development of Berkshire Renewable Power, a project development

    company that is working in coordination with ReEnergy of Albany,

    N.Y., to build, own and operate a biofuel production faciltiy on

    property owned by the company in nearby Pittseld.

    In this novel approach, biofuel produced principally from woody,

    forest residues, will be converted into a liquid fuel that will bothproduce electricity through diesel-powered generators and replace

    fossil fuels used in the manufacturing processes and for heating

    buildings.

    As a result of supporting this project, Crane & Co. expects to

    redirect its energy costs to operations that suport the local economy

    through creation of approximatley 100 jobs and an economic

    incentive to private landowners that supports sustainable forest

    management activities.

    Getting Rid of the Grid

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    Water Cranes First Resource

    Alongside quality raw materials, clean water is an essential component

    for papermaking. Returning it to the environment as clean as possible isan essential responsibility. Abundant clean water is why Zenas Crane

    decided to locate his paper mill here in Dalton. It is among the reasons

    we continue to make U.S. currency paper here in Dalton.

    Papermaking is a water-intensive process. Fibers must first be cleaned

    and refined using water as a suspension medium. To properly form

    currency paper on the paper machine, stock must contain about

    99 percent water and 1 percent fiber. By the time paper arrives at the

    end of the machine, it will contain only 5 percent water .

    U.S. currency paper requires up to 1 million gallons of water per day ,

    drawn primarily from the underlying Limestone Aquifer via deep wells.

    One might think that water is a cheap, even free, resource. But water

    needs to be moved from one place to another. It needs to be heated and

    it needs to be cooled. It needs to be treated before being discharged.

    Every use of water requires energy, so it makes sense to devise ways to

    reduce the amount of water used and the energy put into it.

    Crane has equipped several papermaking operations with fiber and water

    recovery systems that allow water to be captured and reused for appropriate processes. For

    instance, a portion of the water used to process raw materials is recovered and used during therefining of fibers. A portion of that water is recovered for other operations. At each step of

    the manufacturing process where recovery is possible, the quality of the water is monitored to

    determine its next best use.

    Water is also an excellent medium to store heat. Where appropriate, Crane is able to capture

    heat used in the papermaking process and extract it to heat water for later processing thereby

    saving not just water but energy as well.

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    Stewardship of the EnvironsAs the largest land-holder, largest employer and largest consumer of resources in the area ,

    Crane recognizes that not only its manufacturing operations, but also its conduct as acorporate citizen greatly impact the quality of the environment and the quality of life of the

    community in which it operates.

    As a family business, Crane many times is able to take a longer -term perspective on how it

    operates as a business and as a citizen. The company can look beyond its balance sheet and

    make decisions based on the quality of life of its community .

    In 1993, Crane created The Boulders Conservation Area on 634 of its more

    than 1,300 acres of non-manufacturing land. The Boulders lies in three towns

    and includes part of the Appalachian Trail corridor as well as the direct

    recharge area for the Limestone Aquifer from which Crane draws its water tomake U.S. currency paper. In 2004, the company granted a conservation ease-

    ment to the Massachusetts Department of Fish & Game to ensure that the

    property would be protected and open to the public in perpetuity .

    In 2010, the Old Mill Trail (Dalton Hinsdale Greenway) that Crane and the

    Housatonic Valley Association had partnered with, opened to the public. Crane

    donated land for the trail for a low-impact walkway that emphasizes the fragile

    surrounding natural resources and the history and culture of the river .

    In November of 2000, Crane formally decommissioned its Old Berkshire Dam

    on the Housatonic. The dam was first built by the company s founder Zenas

    Crane in 1801 to provide water for an overshot waterwheel. Crane made its

    first banknotes in Dalton in 1806 with power generated by this dam. T wo

    hundred years later, Crane became the first Massachusetts company to remove

    a dam on their property. By taking down the dam, Crane restored more than a

    mile of river to its original free-flowing state.

    Left: Taking down the Old

    Berkshire Dam restored

    more than one mile of the

    Housatonic River to its

    original course. Right: Part

    of the Appalachian Trail

    corridor passes through The

    Boulders, a 634-acre

    preserve created on Cranes

    non-manufacturing land.

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    1952: Crane becomes involved in an environmental research and

    development program with the National Council for Airand Stream Improvement. Crane is still a member of theCouncil.

    1954: Crane retains environmental consultants Malcolm PirnieAssociates to assist development of its first wastewatertreatment facility.

    1960: All Crane wastewater, previously discharged into theHousatonic River is collected and treated at a centralwaste water treatment facility.

    1968: Additions made to Cranes wastewater treatment facilityto further treat effluent.

    1981: Crane partners with waste-to-energy company to use Crane spapermaking waste as a source of renewable steam energy.

    1985: Water conservation projects begun to reuse water used in theraw materials processing and papermaking operations.

    1986: Secondary treatment added to wastewater treatment.

    1990: All PCBs eliminated from the company. Chlorinated

    solvents banned from operations.

    1992: Crane undertakes energy-reduction program designed toreduce the companys electric consumption.

    1993: Papermaking waste materials approved for composting andland application.

    1994: Crane creates The Boulders Conservation Area in partner-ship with the Massachusetts Department of Fish & Game.The 634-acre property is dedicated to public recreation inperpetuity while protecting local aquifers.

    1998: Cranes Environmental Affairs Department becomes one ofthe first in the industry to be reg istered to IOS 14001International Environmental Management Standards.

    2000: Crane removes Old Berkshire Dam, restoring more than onemile of the Housatonic River to its original free-flowingcondition. Crane was the first Massachusetts company toremove a dam.

    2010: Crane and Housatonic Valley Association partner todevelop the Dalton Hinsdale Housatonic River Greenwayfor public access and educational opportunities for localschools.

    2007: Crane signs leases with two a lternative-energy developmentcompanies to generate electricity from biomass and to

    manufacture biodiesel.

    Cranes Environmental Timeline

    Finished currency paper

    including the water mark

    and security thread for the

    twenty dollar bill is ready

    to ship to the Bureau of

    Engraving.

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