Energy solution for the future...Energy solution for the future. Landscape Continues to Change...
Transcript of Energy solution for the future...Energy solution for the future. Landscape Continues to Change...
Nature’s FlameEnergy solution for the future
Landscape Continues to Change
Continuing Move in Public Opinion• Global and local pressures
• Increasing community focus
• Customer and consumer
Governmental and Council Pressures• Change in ETS consultation
• ETS charges increasing
• No future gas exploration
• Carbon Neutral New Zealand consultation
• Increasingly strict Resource Consents
• International accords
Norske Skog Investment in Renewables• Now a credible scale player in the market
• Corporate realignment now complete
• New owners 100% supportive of ‘renewables strategy’
Supply and Usage Technologies• Pellets are in greater demand because of their inherent
advantages
• Other uses – growing medium – absorbents, , kitty litter, mushrooms, soil and sewerage treatment
Landscape Continues to Change
Norske Skog Company Profile
• Sole domestic newsprint and magazine
producer in Australia and New Zealand
• Plants strategically located to also facilitate
exports to Asia
• Highly competitive local fibre and energy
sourcing
• Strategically located facilities enable
low delivery cost
• Optimized newsprint and magazine
mix within current plant network
• Balanced fibre mix between
recovered paper and wood
Source: Company information
Proximity to sourcing and end markets provides key profit drivers and basis for
strong service level. Plants also well positioned to facilitate exports to Asia
Europe Australasia
Skogn (Norway)
Saugbrugs (Norway)
Bruck (Austria)Golbey(France)
Nature’s Flame(NZ)
Melbourne
Boyer(Australia)
Albury(Australia)
Sydney
Newsprint (Including Improved NP) SC (Uncoated Mechanical) LWC (Coated Mechanical) Nature’s Flame Pellets
Tasman
(NZ)
Norske Skog Renewables
Boyer Mill, Boyer, TasmaniaFC5 Bio-solvent and Other Initiatives
• FC5 bio-solvent joint venture – Large scale prototype in Tasmania
• Studies into geothermal silica and biofuels at Tasman
• Plans for biomass cogeneration at Albury
• Acquisition of “Nature’s Flame” wood pellet business from Solid
Energy in June 2015
Largest Wood Pellet Producer in New Zealand
Nature’s Flame, Taupo, NZ
Tasmanian Plantation Forest
• NSA owned/managed FSC & PEFC certified pine plantation in Tasmania
• 21,000 hectares supplies 65% of Boyer Mill’s fibre requirements
Plantation Forestry, Tasmania
Norske Skog Wood PelletsNorske Skog’s strategic plan to enter the wood pellet market, then scale up to support the growing demand for renewable energy :
Phase 1: Acquire Natures Flame Taupo, and run up to 40,000t
• Target completion Q4 2016
• Secure NZ domestic home heating market and develop capability
• Export remaining capacity
Phase 2: Expand Taupo plant to 85,000 tonnes
• Target completion Q4 2019
• Relatively small capital required to remove drying and hammer mill constraints
Phase 3: Construction of a 175,000 tonnes plant
• Allows scale and cost structure to supply into export
industrial pellet market
• Build industrial pellet demand in New Zealand
• Secure long term export offtake agreement
Norske Skog Wood PelletsEstablished to clients across New Zealand, Australia and Asia
Key Partner Organisations
• NZ Government
• Defence sites
• Corrections - Prisons
• Councils
• Hospitals / retirement homes
• Schools
• Commercial Use
• Major industry with large heat requirements
• Wood processing sites
• Retail outlets
• Mitre 10 group
• Independent heating outlets (NZ and AU)
• Supermarkets
• Pet Supplies
Nature’s Flame Wood Pellets
Taupo plant commissioned in 2010 by Solid Energy
Nature’s Flame purchased by Norske Skog Australasia June 2015
Current capacity 40Ktpa of premium grade wood pellets
Low ash, high mechanical durability and calorific value
• Annually audited DIN EN 14961-2 (A1) & FprEN ISO 17225-2 (A1)
Premium quality due to uniform, high quality feedstock
Raw material is sawmill residue -sustainably managed, certified forests
• Nature’s Flame wood pellets manufactured from 100% pine
• Nature’s Flame maintains an Forestry Stewardship Council Chain of Custody
• Ash from Nature’s Flame wood pellets is certified as an organic fertiliser by BioGro New Zealand Ltd which includes Japanese Agricultural Standard (JAS) Organic Law
Multiple feedstock suppliers under long term
supply agreements
Key Production Statistics
• 40,000 tpa capacity
• Servicing domestic & industrial markets
• Highly automated – 2-3 staff
• Expanding to 85,000t pa
• Using Geothermal energy
Taupo Pellet Plant
Our Production Process
Production Process Overview
Raw Material• Wet Sawdust Feedstock
• 30,000 tonnes per annum sourced from CHH in Kawerau
• Approx. 60% moisture - two tonnes feedstock = one tonne pellets
• Dry Feedstock
• Approximately 6,000 tonnes per annum sourced from various local facilities
• Transported by truck and unloaded into covered storage
• Approx. 8% moisture - one tonne feedstock = one tonne pellets
• Expansion Phase
• Rights to more fibre through existing contractual arrangements
• Heads of agreements in place for increased residues
Dryer and Boiler• Stela Dryer
• Low temperature, low emission belt dryer
• Rated at 12 tonne per hour of dry material requiring 18MW of thermal heat (hot water)
• > 85,000 tonnes per annum
• Scotts Boiler
• Vekos limited attendance type hot water boiler, producing 6MW output of thermal heat
• Delivers heat for approximately 33,000 tonnes per annum (main existing bottleneck)
Production Process Overview
Production Process Overview
Hammer Mill• Andritz Sprout Multimill Type B
• Powered by 250kW motor
• Approximately 6 tonnes per hour throughput based on current mix of feed product
• Approx. 40,000 tonnes per annum (secondary existing bottleneck)
Production Process Overview
Pellet Presses• 3 x Andritz Sprout 26 LMII Pellet Mills
• Each powered with 300kW motors
• Throughput rated at 3.5 tonnes per hour
• Customised to suit our feedstock
• Approx. 85,000 tonnes per annum capacity
Production Process Overview
Packing and Logistics• Propac form, fill and seal machine
capable of running 17 x 15kg bags per minute, with a fully automated JMP palletising system stacking and wrapping the pallet.
• Bulk truck loading facility which can load a dual trailer truck in less than 20 minutes
• Bulk loading facility is also used for bulk bag filling; approximately 6 x 1 tonne bags can be loaded per hour with one operator
Why Wood Pellets?
Sustainable Story – credit for the other good work• 100% renewable - FSC wood supply
• DIN Plus certification (highest spec) or Industrial spec
• BioGro ash certification as a fertiliser
Security of Supply• Consistent product - year round
• Secure production and supply chain
• Strategic stock holding around the country
Unique Qualities- low moisture, emissions and ash
Ability to Co-Fire • Reduce reliance on coal and extend coal supply/boiler
efficiency
• Easier handling, reduced CAPEX and OPEX
Advantages Over Wood Chip
Wood Pellet• Lower and known emissions
levels
• Higher Consistency • Moisture• Size• CV• Quality
• Increased Energy Density• Less volume/Truck movements• Lower storage and handling
footprint
• Minimal Ash (<1% )• Lower ash management costs
• Co-fire into existing coal boiler
• Product Handling• Same fuel feeding system as coal
• Security of supply
• Lower mechanical wear
Wood Chip• Cheaper per tonne but not by CV
• No accredited supplier in North
Island
• Solution with specialist boiler
• Needs to be dried before burning
• Higher moisture results in less
efficient combustion
• Can be increased CAPEX
required with feed systems
• OPEX can be increased with
handling
For Further Information
Visit us at:
www.naturesflame.co.nz
Call us Toll Free in New Zealand on:0800 PELLET (0800 735 538)
or +64 7 376 0170