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ISG 8 Final Group Report Energy EVS 2002

Suggestions for Energy Saving in the Paper and Pulp Industry

Solutions by a Virtual Team for a RealProblem

A project of the European Virtual Seminar Group no. 8

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Table of Contents.

1 About the European Virtual Seminar 32 Introduction 3

3 Energy Saving in the EU 53.1 Energy Saving in the Pulp and Paper Industry 63.2 Paper Recycling 83.3 Country energy characteristics 84 Country profiles 94.1 Spain 104.2 The Netherlands 114.3 Poland 155 Conclusions 206 Bibliography 22

AppendixesAppendix I: Glossary 24Appendix II: Abbreviations/Acronyms 26

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1 About the European Virtual Seminar.

This document is the result of a project of the European Virtual Seminar (EVS). It is acourse where Students from several European Universities can cooperate in a virtualteam. The task of this interdisciplinary team is to research several projects concerning

Sustainable Development. Arrived to this point it is necessary to define this conceptsince it is the base of this research. In this text the definition as stated by the United

Nations is used: development to meet the needs of the present without sacrificing theability of future generations to meet theirs. (www.UN.org)

This is the report of a research done by four students about energy saving (ES) inthe Paper and Pulp Industry. The way it came into being is perhaps very different frommost other research projects. The cooperation could only take place via the Internet.Only by sending each other emails, participating in chat sessions and using discussion

boards could team members communicate, cooperate and coordinate their efforts to produce this text.

Together with the goal of searching solutions for the problems facing SustainableDevelopment (SD) they were also part of an experiment about doing research in a totalvirtual surrounding. The results of this experiment could change the way in whichfuture research will be done. It will perhaps introduce a more efficient way of doingresearch between people of both different disciplinary as well as different national andlingual backgrounds.

This report has known 4 authors: Anna Palewicz, a Polish EnvironmentalSciences student, as well as Jos Luis Salve who lives in Holland; Oscar RodrguezSnchez who lives in Spain and studies Geography and finally Tom Schep is a DutchSociology student.

The initial distribution of tasks was that each teammember should research their own country, this means Jos and Tom for The Netherlands, Anna Poland and Oscar for Spain In practice, the contribution to the chapters were made by several authors. AlsoJose did most of the contributions about The Netherlands and Tom wrote most of thetext in the introduction and conclusion. The team strifed to make the text into a coherentwhole, but they have finally chosen to reflect their own visions on it. All the membersof the team discussed and validated every part of the text.

In addition to these tasks, the teammembers took on roles to make the cooperationwork as smoothly as possible. Jose did most of the planning and technological know-how. Tom was the editor or end-writer, trying to make all the contributions from theteam into one coherent text. Anna kept a list of all the available data and arranged andordered it. Oscar took care of the communication between the team and the EVS staff .

2 Introduction.

The need to limit the emission of carbon dioxide is getting evermore urgent for several reasons. Although there is still much discussion on the amount of influence of carbon dioxide on the global climate change, most people agree that we should limit theusage of fossil fuels. We are using much more of these fuels than there is createdthrough natural processes. This implicates that although we can always find newsources, finally we will run out of fossil fuels. The ever-growing world populationrequires a growing amount of energy and fuel. The developing countries cannotindustrialize, modernize and catch up without the access to large quantities of fuel and

electricity. All this together makes the point of sustainable energy rise at the priority listof many national and international authorities and Non Governmental Organizations

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(NGOs) In Kyoto many countries obliged themselves to reduce the emission of carbondioxide. This was a big political breakthrough, for this symbolized that these countriesrecognized that something had to be done.

There are many ways in which we can force back the usage of fossil fuels. In thefirst place there is of course the search for alternative, renewable power sources. Much

effort is put into making the application of sustainable energy not only economically profitable, but socially acceptable too. The first one is the biggest problem, for rightnow it still is the case that most sustainable power is more expensive then the oldfashioned way of generating power using fossil fuels. The second one, the social side isalso important. Because of the price of non-carbon based energy, the opinions of peopleand therefore of politicians vary greatly. This often makes the creation andimplementation of government policy a hard item. A more direct way of reducing thecarbon-based energy for which in general more consensual support can be found isreducing the usage of energy in general. As a matter of fact more and more people are

becoming aware of the way they use energy.The industry sector is one of the biggest energy consuming sectors. There it is not

just a question of turning the light off or turning the heat down when one is not in thehouse. New technologies are needed if the same amount of end product is to bemanufactured with less energy, i.e. increasing the energy efficiency of the industrial

process. Therefore research is needed in the production processes of the existingindustries and in the design of new industrial processes.

Below is a table on the subsidies that are offered to different energy generatingways. To promote the generating of renewable energy, both member states as the EUgives large subsidies.

TABLE 2.1 Subsidies on EnergyDirect subsidies(millions of $)

Member states EU total

fossil fuels 9681 531 10247nuclear energy 4178 428 4675renewable energy 1247 131 1488

Source: greenpeace 1999.

In the production process of paper and pulp a lot of energy is needed. Thisindustrial sector is very energy intensive and because of the high energy costs(approximately 15% of the production costs), it makes energy saving (ES) veryattractive for the Paper and Pulp Industry (PPI). Therefore the EVS made one of the

case studies to be about this sector of the industry. Our task was : Write a report on the potential and realized options for industrial energy conservation in the European pulpand paper industry. Pay attention to differences between countries and firms. Deal withat least four different countries (EU or potential EU members) from different regions.

Because we write this paper on behalf of the European Commission, we took theEuropean Union as a starting point. We stated the general research question as: whatshould the European Union do to make sure less energy is used in the PPI. Because we

believe that this problem has many sides and is not easily answered, we divided the problem in two parts. First there is the obvious technical side. The actual energy savingmust come from other generation processes. Technical innovation and research isneeded to make sure this happens. In the second place there is also a policy side to this

problem. Companies do not always use new less energy consuming technologies even

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when these are available and economically attractive. So we can recognize a social and political side as well.

Therefore we formulated the above problem into four research sub-questions: Which are the actual technical instruments for ES? Which are the potential technical instruments for ES? What policy is the EU actually using to encourage ES? What are the potential policy options to encourage ES?

These questions are in our view crucial to the development of the PPI. Oncethey are answered the insight in the issue of energy saving will be better. This insightcould contribute to solutions for many existing problems in this industry sector.

With the answers to these sub-questions we try to give an answer to the above-mentioned overlapping question. The research object will be the actual and extendedEuropean Union. We chose three countries: Spain, Poland and The Netherlands. Thesecountries are the countries the group members live in. The European Union is the targetof our research, so we can consider the EU as a fourth region.

The structure of this text is divided in accordance to these four regions. First we begin with an overview of Europe. This chapter contains an overview of policy programmes which aim is to save on energy usage. It contains also a more technicaloverview about the PPI in Europe. Then comes a chapter that contains the data about thethree chosen countries. Special attention will be paid to Poland. Being a country that ison the list of future member states it has a special role. As a result of the futuremembership it has to accept all the laws and rules already agreed upon in the past by theEU. This means that also the PPI in Poland will have to go by the rules now used in theEU companies. In the final chapter we shall state our final conclusions andrecommendations for the European Commission.

Due to the unexpected huge amount of general information on many diverse programmes concerning ES within the European Community, combined with thedifficulties in getting specific information and statistics concerning the PPI, the shorttime available for the literature search and last but not least the inexperience of the

participants on this EVS made clear that the focus on this topic is too broad and thatattempts to make an overview containing relevant information would be fruitless. Bythis reason we have chosen for a preliminary study presenting ripe and unripeinformation related with ES in general within the EU and trying to present somespecific information in relation with the PPI in general and in some countries of theCommunity.

3 Energy Saving within the EU.

The aim of the European Communitys energy policy is to ensure a supply of energy to all consumers at affordable prices while respecting the environment and

promoting healthy competition on the European energy market (Green Paper November 2000). On the other hand there are many other challenges concerning the useof energy, like the Kyoto Protocol on Climate Change and the increasing dependency of the EU on external energy supply.

This ambitious aim has many complex implications on many fields of the use of energy in all the different types and within the EU we can find a large number of

programmes dealing with these different energy aspects. In this chapter we shall discussin 3.1 briefly these EU programmes and in 3.2 we shall pay attention to the generalcharacteristics of some Member States in relation with their energy use.

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The promotion of the use of energy from renewable sources (RES) is the mainsubject of the ALTENER programme. The principal goal of this programme is toincrease (EU, 1994) the contribution of these energy sources from 6% in1997 to 12% in2010. The use of established renewable energy techniques amounted 4% in 1991, withsignificant differences among the EU members, as low as 1% in the UK and as high as

17% in Portugal.The most important sources are: biomass in the form of wood, wood-waste

(specially interesting in the PPI) and other solid wastes, and hydropower. Wind turbinesare confined mainly to Denmark, Germany and The Netherlands

General consensus has been founded in the improvement of the energy efficiencyin the European Community (SAVE, 1999). The SAVE programme tries to encouragethe energy efficiency measures and it has a very high potential for ES, maybe 10 to 30%of the primary energy consumption.

There are other energy programmes within the European Community like theSYNERGY programme, for the cooperation with third world countries, and the SURE

programme, for nuclear safety. The CENTREL electricity grid connects in 1995 theEastern European countries with the main European electricity grid. The signing of theEuropean Energy Charter in 2000 makes cooperation possible between the EuropeanCommunity and Russia on energy.

But technology alone will not be capable of delivering the scale of reductionsneeded for the EU to meet its Kyoto commitments (Shock, SAVE 1999). Effectivemanagement is required for delivering the best results. This vision is being implementedin Monitoring and Targetting (MT) techniques, Energy Auditing, Benchmarking andLong Term Agreements (LTA). There are many success stories with the support of theEU on different Member States.

The use of economic instruments such as Energy Tax, Tradable Emission Permitsand the specially the promotion of voluntary Long Term Agreements (LTA) with someindustrial sectors is increasingly getting more and more attention as a very promisinginstrument for promoting energy efficiency and environmental awareness as pointed byP. Bertoldi (SAVE 1999). There are many examples of successful implementations of LTAs within the EU, for instance: the Netherlands, Germany, Finland, Ireland, Sweden,Denmark and United Kingdom. Albeit the way they are implemented differs greatly

between the countries.

3.1 Energy Saving in the PPI within the EU.

The energy consumption in European Union is about 30% of the total final energy

demand and according to the European Union Outlook to 2020 the PPI accounts for some 13% of it. The most energy intensive part of this industry is that of pulp production and the sector is increasingly being concentrated in bigger concerns. Thelargest companies can be found in Finland and in Sweden with their high availability of wood and primary energy.

The PPI is an energy intensive industrial sector requiring about 21 MJ per $ of shipments (see http://www.aceee.org ). The energy consumption, especially for the pulp

process is very high, but this industry is still increasing the amount of energy by self-generation of biomass sources (about 60%) and according to foregoing reference thisindustry has the possibility of being able to provide all (!) the energy requirements andeven sell biomass-generated power to other users.

The PPI is also characterized by its capital intensiveness and highly cyclical prices(Berends, 2001), these characteristics place some hard constraints to the possibilities for

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energy saving and makes the gap between the economical and the technical potentialtoo large (the so called efficiency gap). The required long payback time for technological innovations is being aggravated by the relatively low prices of fossil fuelsin the actuality. On the other hand the high energy intensity of the production processoffers a big technological potential for achieving a substantial energy saving:

Perfecting and adopting biomass and black liquor gasification along with combinedcycle cogeneration systems could make the paper and pulp industry self-sufficient (Nilsson E.J.) .

As posed in paragraph 3.1, there is a considerable economic potential for energyefficiency improvements in the industry within the EU. An improvement of 20% has

been estimated when a pay back period of 6 years is taken into account (Utrecht Univ.1996). Some of the available technological options are well known and accepted likeCombined Heat and Power (CHP), District Heating and Cooling (DHC), heat pumps,

pinch-point analysis design for heat exchanging and the use of exegetical analysis in process design.

The technique of Combined Heat & Power (CHP) achieves an overall efficiencyabout twice as high as the conventional turbines. In capital intensive industries is a shortreturn on investment of a very high importance for the acceptance of new techniques,making CHP with its combination of a high efficiency and proven operationalfunctionality very suitable for energy saving.

According to a paper in a SAVE congress (Else Bernsen, SAVE 1999) is CHP oneof the best technologies achieving the goals of energy efficiency and energyconservation within the EU. In 1997 the European Commission stated the followingconclusion: The Commission is of the opinion that the CHP share in EU energy

production should be increased significantly in order for the EU to achieve its energy policy objective of improving energy efficiency and its environmental objective of reducing greenhouse emissionsThe Commission therefore calls on Member States toevaluate policies for removing obstacles to CHP penetration and to base their national

strategies and objectives for promoting CHP on this evaluation within a co-coordinated Community strategy framework

In the last years an increasing number of firms are making use of energy servicesoffered by specialized national agencies in energy management. These agencies offer acomplete package services including training courses, surveys, energy audits,monitoring (gathering of data, analysis and reporting) and targeting (results and

progress). These tools seem very suitable for EU level implementation and developmentof energy standards like ISO 14001 for environmental issues. A survey of these tools,which are claimed to be very effective at EU level is presented by Otto Starzer in a

paper from the SAVE congress (SAVE, 1999). He presents some criteria for testing thesuitability of these tools. The geographical diversity (social, industrial, climate, etc.)can be a too big barrier for central implementation. He concludes that most mandatoryand legal tools/instruments, voluntary schemes (LTAs) seem to be suitable for EU levelimplementation.

As stated in the last paragraph for the last trend in the energy market more andmore firms are placing their energy supplies and management in the hands of specialized agencies, making it easier to promote the use of advantageous techniques ina much bigger scale and to achieve a higher degree of integration of heat or electricity

power. This aspect is becoming more and more interesting when the liberalisation of theenergy market is being completed. Experiences in the US (Thompson, 2000) have

shown that some mills found it financially appropriate to sell power to energycompanies and to buy it back as they need it.

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The European Associations, CEPI and ERPA have formulated a EuropeanDeclaration in which they voluntarily offer to assume environmental commitments,such as reducing the production of residuals in their activities, to optimise recoverysystems and to improve recycling activities, so that in the year 2005, 56% of the paper and cardboard will be recycled. .

3.2 Paper Recycling

Some time ago the problems now facing the PPI didn't exist, because the demandfor paper was not big and the society was not yet concerned about the sustainability of the woods. At the present time, and with the big scale of production the situationradically changed. Now there are also many new environmental problems. There is adouble negative effect: the indiscriminate large numbers of trees being felled and the

production of deterioration of the environment. The result is deforestational problemsand environmental contamination. These problems can be solved using recycled paper manufactured under some strict norms for not using aggressive chemicals in thetransformation process. We should get a recycled paper him to fulfil the same technicalcharacteristics as the manufactured paper from virgin pasta. If this is achieved, asubstantial saving can take place reducing the energy consumption by 70%, that of water by 90%, the atmospheric contamination by 73% and the solid waste by 39%.Taking into account these percentages the recycling of paper could save the life of manytrees because to get a ton of paper pasta it is necessary fell 17 trees, of which each onewould needs at least 20 years of growing. Recycling doesn't contaminate theenvironment (with the total of paper and the cardboard that every year is thrown out inthe developed countries we could manufacture a hygienic paper roll that goes round theearth for twenty times the) and it saves energy.

The recycling is the only way to liberate us from the double negative effect. Whenwe understand that paper waste is able to manufacture other paper and that it is notgarbage what we throw out, but whole forests, we will have understood the ecologicalvalue of the consumption. This means also that recycling has an enormous impact onthe ES in the PPI and has to be promoted as one of the best promising tools, speciallywhen you take into account the still very large differences on the scale of recycling inthe Member States.

3.3 Energy characteristics of some EU Member States

For illustration of the analogies and the differences between some of the European

countries we have made a selection of some characteristics related with the energy use.A compilation of these characteristics is presented in table 3.3.1.

TABLE 3.3.1 Energy characteristics of some European countries (1994)GDP per capita(1000$)

Finalenergydemand

per capita(GJ)

Primaryenergy

per Capita(GJ)

Import in% of total

beforeuse

Electricityin % of finaldemand

Renewablein % of finaldemand

Denmark 33.1 122 189 25 18 6.5Germany 28.7 125 176 58 20 1.0

Sweden 28.1 166 209 38 30 24 Netherlands 25.0 145 201 9 13 0.8

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Spain 14.8 72 109 69 18 3.5Poland 3.5 58 109 5 (2) 18 2.5AverageEU (1)

17.2 (3) 133 162 (3) 60 18 4.0

Source: Uyterlinde & Koutstaal, 1997

(1) Without Poland(2) In 1992, EU Green Paper, 1995(3) In 2000, EU Energy Outlook to 2020 (1toe=41.9GJ)

From this table we can extract interesting information that can be helpful for explaining the differences between the European countries. The final energy demand isthe highest for Sweden and the Netherlands and this can be explained by to the higher

participation of the energy intensive (EI) industry, like the PPI, and in less extent by thecolder climate than for instance Spain as it is illustrated by a lower energy use inDenmark than in The Netherlands albeit the climate in the former is colder than in thelast country.

The levels for the primary energy per capita are the highest in Sweden and the Netherlands again. The explanation for Sweden is found in the low electricity tariffs dueto the high availability of hydropower in this country. For the Netherlands theexplanation is very different, namely the huge oil refinery sector accounts for a big partfor the large oil imports and exports.

The dependency on extern energy supplies is illustrated in the column with the percentage import of energy. Spain has the highest dependency of all the tabulatedcountries and is also higher than the average of the EU (without Poland). The

Netherlands has a large reserve of natural gas, but is fully dependent on extern coalsupplies and in lesser amount for extern oil supplies. Poland has very large coal reservesaccounting for the energy needs of this country.

The Netherlands has the lowest percentage of electricity for final energy demanddue to the vast use of natural gas in this country. The high percentage for Sweden has been already mentioned above.

The large availability of gas accounts also for the lowest participation of renewable energy in The Netherlands of all the EU countries. And again the availabilityof hydropower and the large woodlands account for the high percentage of renewablesin Sweden.

The differences between the Member States are very large in economical aspect isillustrated by the GDP for the tabled countries, being the lowest for Poland, about 1/10of the GDP for Denmark and of the average of the EU.

Huge differences can be found also in the degree of self-sufficiency in energysupply. The average for the EU accounted in 1992 approximately 49% and varied fromas high as 96% for the United Kingdom to 4% for Portugal and even 0% for Luxembourg. The enlargement of the European Community will aggravate all thedifferences between the new and the actual members. Albeit Poland as a newcomer from the Eastern Europe is only for 5% (in 1992) dependent on external supplies itseconomy that is mainly based on solid fuels and the energy intensity level of itsindustrial sector is more than three times higher than that of the European Union.

4 Country profiles

In this chapter we discuss the data about PPI about the four chosen countries. Itgives an overview of the state and developments of PPI energy savings in thosecountries.

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4.1 Spain.The Paper and Pulp Industry in Spain is mainly based on the resources of the

national forest (in good part of the cases and mainly in Biscay). The PPI is a capital-intensive industry. Competition in this sector is based on price and on economies of

scale. While on the one hand the demand for paper still increases steadily, pricesfluctuate. The concentration in the industry is increasing with a smaller number of largekey players being the dominant firms. Specialized machine suppliers produce the keytechnologies. Improvements and technical change take place in the interplay betweenthe machine suppliers and the paper producing companies. The technical changes aredriven by production and market demands.

The industry of paper in Spain is the fifth industrial sector in energyconsumption, with 4% of the national use of energy. Nevertheless, this sector has agreat potential to cover its energy demand internally by burning the by-products and theuse of cogeneration facilities . Due to the climate problem, energy conservation andenergy efficiency have enjoyed growing attention. The extent to which such efficiencygains can be achieved depends on the availability of energy conservation technology. Inorder to map the potential for emission reduction various studies have addressed the

potential of specific technologies to reach certain desired goals. Examples of this are thereplacement of separate heating equipment to produce steam for use in paper production

by combined heat power units. Such changes lead to drastic reduction of CO 2 emissions.The industry of cellulose and paper counts an installed total power of

cogeneration of 719 MW that has been tripled almost in the last ten years. In the same period the energy produced for the sector has been increased until practically coveringthe total energy consumption. The cogeneration is a system of energy generation that is60 % more efficient than the conventional thermal power stations . It produces electric

power and useful thermal energy simultaneously for the industrial activity .Theinstallation of the cogeneration generally supposes the regeneration to natural gas. Also,the cogeneration plant, located next to the factories of paper, eliminates the loss of energy in the transport that can accounts for 8% in the conventional system.

The recovery and recycling of used paper prolong the useful life of the fibres,avoiding in this manner that they end up in the drains The paper that doesn't enter therecycling circuit because it is polluted and or is not usable as raw material, can beutilized as fuel, the same way as the residual biomass of the process of production. Thisway the sustainable cycle of the paper closes and makes beginning in a renewable andnatural source of raw material.

The sector has abandoned the most polluting fuels as the coal or the fuel oil,

substituting them for clean and renewable energy. 85% of the used fuel is clean energylike natural gas (41%) or renewable energy as residual biomass of the process (44%).The PPI accounts for 51% of the total of energy that is produced by biomass . Thesubstitution of the fuel oil and the coal for natural gas suppose a reduction of 27% andof 41% respectively in the emissions of CO2 produces for to generate the same quantityof energy.

Paper is a renewable and recyclable natural resource. It can become the substitutefor other materials with more environmental impact like plastic. Everything with theobjective to reduce costs and to achieve a closed energy cycle so that less contaminationof air, water and earth occurs. The energy cycle contributes to a more efficient use of the forest plantations and of the wood used for paper and cardboard as raw material.

The environmental advantages of the paper manufactured from recovered fibresare not restricted to only avoid the wood use and the environmental impacts related with

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the forest administration. The recycling of paper also saves water and energy in the process of production, it reduces the polluting load of wastes notably and emissions andit generates less quantity of residuals.

The cellulose factories use wood of species of quick growth, coming fromcultivations forest exploited in a sustainable form. A hectare of cultivation of these

species fixes in one year 10 tons of CO 2, four times more than the trees of slow growth.The factories of the paper transform the cellulose fibres in paper so that it later becomesan enormous variety of products. With the development and application more respectfultechnologies with the environment, the sector of paper pulp has gotten big savings of water and energy and an important reduction of the emissions.

Some of the potential can be realized by measures from outside the companiesthat need to make the changes. Instruments that come to mind are regulatory or fiscal

polices. But also the awareness within the companies plays a role. Thus education andcommunication might help as well.

Fig 4.1.1 shows the distribution of renewable energy sources for Spain.

Fig 4.1.11.biomass 5. urban accustomed to residuals2.water energy 6.eolic energy3. hydraulics energy 7. geothermal energy4. photovoltaic solar energySource: renewable energy. Mario Ortega Rodrguez.

The largest part is produces through biomass. No energy is generated through windenergy. This portion could be increased.

4.2 The Netherlands.

4.2.1 General energy characteristicsThe Netherlands has a high self-sufficiency degree on primary energy, namely

83% (see Table 3.3.1). This independency is relies on the significant gas reserves in theland and the North Sea. In 1995 the sources of primary energy are presented in Figure4.2.1 The country has an integrated and dense energy network, more than 240000 km of underground pipes and cables for gas and electricity and this fact explains that thedistribution of energy sources has not changed significantly during the last decades.

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renewable energy sources

75%

9%3%0%10%

3%0%

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Coal is almost exclusively used as fuel for electricity generation. For this purposeis the following fuel distribution used in 1998: coal 44%, gas 48% and nuclear energy8%.

48%

35%

13%4%

nat. gas

oil

coal

renewable

Figure 4.2.1: Primary energy sources in The Netherlands (1996)Source: CBS, 1996

Figure 4.2.2 gives a survey of the distribution of the final energy use per sector.The high contribution (39%) of the industry in the final energy use in combination withthe low level of contribution (25.6%) to the GDP illustrates the relatively large size of the energy intensive (EI) industry.

39%

21%

18%

11%

7%

4%

Industry

Domestic

Transport

Services

Agrarian

Rest

Figure 4.2.2: Final energy use in The Netherlands per sector (1996)Source: CBS, 1996

The industrial sector is the largest consumer of the final energy and within thissector the PPI accounts for approximately 10% of the energy use, mainly in the

production of paper. A characteristic difference between The Netherlands and the other European countries is the high EI of its industry. When in all developed countries the EIhas continuously decreased during the second half of the last century, due to a higher

productivity and efficiency in the industrial sector, the government in The Netherlandsduring the 60ies has chosen to give financial facilities to the energy intensive industriesas the chemical, metallurgical and the PPI sector. This decision was taken short after thediscovering of the large natural gas field and it was meant for a rapid development of energy consuming industry, if necessary using all the gas reserves within one generation(!) as proposed by the Dutch Government (Lubbers & Lemckert, 1980).

Energy saving in The Netherlands in the last years is characterized by manyvoluntarily Long Term Agreements (LTA). The experiences with these LTAs aregenerally positive and the EI is decreasing significantly. In the period 1989-1996 therewere 31 LTAs concluded resulting in an average energy efficiency increase of 12.5%(EZ, 1998). In the future the policy of LTA will be continued, but it will be probablyinsufficient to achieve the goal of an improvement of 33% in the period 1995-2020.Other promising policy tools are being developed: Bench-marking protocol, where

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the energy intensive industry, thus also the PPI, with the collaboration of the Dutchgovernment commits to belong to the top of the world; a new kind of LTAs arestarting to be agreed, more and more with individual firms instead of industrial sectorswith the main goal a further optimisation of the production process, promotion of research in new technologies, Life Cycle Analysis (LCA) applications, etc. The key

issues in these new LTAs are: Process efficiency (new technology). Product efficiency (dematerialization, recycling) Industrial cooperation (industrial parks)

The low level (0.8%) of contribution of renewable energy sources (RES) in thefinal energy use in The Netherlands is in a large part the result of natural constraints,like a high population density and flat topography. Most of the RES is being used for the generation of electricity and it accounts for 3% of the electricity production. Infigure 4.2.3 can be seen that waste burning has the largest contribution, followed bywind energy.

70%5%

5%

20%0%

Waste

Hydro

Biomass

Wind

PV

Figure 4.2.3: Electricity production from RES (1996)Source: ECN, 1997a

In spite of the topographic limitations of the country with respect the RES the Netherlands has a very ambitious wind energy programme and is striving for achievinga RES contribution of 12% by 2010 and of 25% by 2050. The land knows a largesystem of subsidies and special tariffs for RES and the plans for the implementation of energy tax are in an advanced stage.

4.2.2 The PPI in The NetherlandsThe Dutch PPI is grouped in the Netherlands Paper and Board Association

(VNP). This association is a member of the European industry organization CEPI that

represents 95% of the European PPI. In Table 4.3.1 we present a summary of the DutchVNP, that in the rank list of the European PPI (in sales volume in 2001) stands on the 9 th

place (Spain (7 th) ).

TABLE 4.2.1 : The Netherlands Paper and Board Association (VNP)Companies 17Factories 27Employees 6400Capacity 3566 (x1000 tonnes)Production 3228 (x1000 tonnes)Sales 3174 (x1000 tonnes)Turnover 4842 (x EUR 10 6)

Source: Annual Report VNP 2001

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The geographical distribution of the factories is presented in figure 4.2.4. The DutchPPI followed in 2001 the decline in overall production as shown by almost all Europeancountries. The Mission statement matches the definition of sustainable development:The Dutch paper and board industry aims to be a highly innovative, environmentally-

sound and attractive business.

Figure 4.2.4: The Dutch PPI factories and products

The energy efficiency improvements were monitored from 1989 up to 2000 as aresult of a LTA on Energy. In this LTA was a reduction of 20% agreed in this periodand it is shown in figure 4.2.5 this goal has been met amply with a result of 22.9%reduction. Considering that the energy costs of the Dutch PPI can be as high as 15% of the overall cost price is the importance of this improvement in energy efficiency clearlyaccentuated.

70

75

80

85

90

95

100

89 93 94 95 96 97 98 99 00

Year

E E I EEI

Reference

Figure 4.2.5: Energy Efficiency developmentSource: Annual Report VNP 2001

The level (in 2000) of the paper consumption amounted 250. (Kg/capita). Thisrelatively high amount is due to the large printing and publishing companies in The

Netherlands. The recovered paper amounted 77% of the fibre materials for the DutchPPI and the VNP is committed with other paper handling organizations in a recentlyconcluded Packaging Covenant for Paper Recycling. The way of certification of the

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sustainable use of forests is still a matter of discussion within the VNP and relatedorganizations like politicians, forest owners, consumers, etc.

One of the most relevant developments of the Dutch PPI in 2001 in the field of energy use is the decision of the VNP to take part in the Energy EfficiencyBenchmarking Covenant. The aim of this Covenant is to be among the worlds best in

terms of energy efficiency. For this purpose the Dutch PPI is started with an energymonitoring system on-line permitting the process operators control of the production,among others, on the basis of energy parameters.

According to the VNP the CHP, development in the PPI is under great pressure in2001, due to the high gas prices and the low feed-in tariffs: CHP is one of the most important topics on the VNP agenda for 2002. This is a remarkable development

because 18 of the 27 production sites already have a CHP installation making the DutchPPI a net supplier of electricity!

4.3 Poland.

4.3.1 General Energy characteristics.Figure 4.3.1 shows that the industry in Poland uses up more than half of the total

energy used. This is an extremely large percentage in comparison to other countries.This suggests that also for the PPI a large amount can be saved on energy. Perhaps withthe joining into the EU a lot can be improved.

main users of electrical energy in Poland 1996

7%16%

15%1%

55%

4%

1%

1%energy export

home farms

municipal economy

loss of energy

industry

transportation

agriculture

building

Fig 4.3.1

Fig 4.3.2 shows that most of the renewable enery comes from the burning of biomass.Almost no energy is generated through water, wind or solar energy. If thesetechnologies were boosted, a lot of extra renewable energy could be created.

renewable energy sources

93%

2%

2% 2%

1%

biomass

water energy

geotermical energy

wind energy

solar energy

Fig 4.3.2

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4.3.2 Position and StructureThe Polish pulp and paper industry accounts for approximately 1% of total

employment and 2% of the total sales of Polands industrial sector. The industry is the21st largest in the world in terms of its pulp output and the 26th largest in terms of its

production of paper. After the severe crisis of the early 1990s, the production of pulp,

paper and their products entered a period of rapid growth. Currently pulp and paper manufacturing is among Polands most dynamically growing industrial sectors. Pulp,

paper and board dominate the product structure of the industry. Recently dramaticgrowth has also occurred in the paper-converting subsector.

Figure 4.3.3

4.3.3 Geographical DistributionThe Polish pulp and paper industry comprises businesses widely dispersed

throughout the country. Pulp and paper manufacturing plants are concentrated aroundexisting sources of raw materials, mainly in southern and, to a certain extent, also inwestern Poland, which is where most woodland can be found. The pattern of geographical distribution is similar in the case of the manufacture of paper products,although many plants in this subsector are also located in the vicinity of bigmetropolitan areas.

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Figure 4.3.4

4.3.4 Sources of Raw Materials Present Situation and TrendsIn Poland, pulpwood is the most commonly used raw material for the production

of pulp. An average of 4 million cubic meters annually of this material has been

converted over the last two years and the demand continues to rise. Most of the wood(70%)used in the industry comes from coniferous trees, 90% of which is pine.Other widely used raw materials include barked sawmill chips and other

industrial byproducts whose relatively small amounts are generated by the sawmillindustry. At present, Polands available wood resources (400600 thousand cubicmeters) are only sufficient to meet an estimated 10%15% of the industrys demand.Eastern wood markets (Russia, Belarus), however, have a tremendous potential andcould well meet Polands needs. Therefore, in the event of the paper market and the

production capacities of the Polish pulp and paper industry continuing to grow at thecurrent rate, no significant shortages of supply are anticipated (perhaps with theexception of coniferous pulpwood). Another factor to be considered is the projected

savings of wood expected to result from the shift toward highly efficient equipment andconverting technologies.

The chief raw material used for manufacturing paper is prime stock pulp. Thusfar, the Polish production of new generation pulp and bleached pulp has fallen short of meeting the industrys demand.

Figure 4.3.5

In 1995, waste paper accounted for approximately 39% of the raw materials usedfor the production of paper (590 thousand tons, 11% of which was imported). More than50% of all pulped waste paper is the so-called durable waste while 28% contains ink.White waste accounts for merely 3% of all waste paper utilized. A number of campaigns have recently been launched in Poland to promote the recycling of paper.

The Polish paper converting industry processes close to 1500 thousand tons of

paper and cardboard annually, mostly in the form of recycled packaging materials(55%). Thirty percent of the domestic production is printing and drawing paper (390

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thousand tons). Imported recyclable paper (210 thousand tons) is critical tosupplementing the supply of these products.

4.3.5 Level of Technological Advancement and Production StandardsThe condition of the equipment and machinery used in the pulp and paper industry

is generally poor and varies considerably between the industrys different subsectors.Technologies and equipment are relatively more advanced in pulp and paper production.With the exception of the three largest companies (built shortly after World War II andrecently revamped) boasting stateofthe art machinery, most mediumsized and smallcompanies rely on antiquated technological installations. The worst situation can befound in the paper and paperboard converting industry. The low level of technologicaladvancement in the Polish pulp and paper industry results in:

low productivity (30%40% of the performance in leading countries), uncompetitive products (the bulk of the products made are traditional pulps and

packing paper; the assortment of paper products is very narrow).

4.3.6 Trends Comparison to World PatternsCompared with trends observed throughout Europe and the rest of the world, the

Polish pulp and paper sector is characterized by:

a very low per capita consumption of paper (38 kg per person), differently structured utilization of production capacities (in Poland, pulp

production capacities are utilized to a higher degree than those available in thearea of paper making, whereas in the world, paper mills operate at 87% capacityand pulp mills at 81%),

heavier reliance on costly, highergrade pulps, and a relatively limited use of themore massefficient varieties (in Poland, highgrade varieties pulp account forapproximately 83% of the industrys total pulp consumption, while thecorresponding proportion is 66% in Europe and 74% worldwide),

more materialintensive production of pulps (6.5 cubic meters of wood per tonof pulp, compared to the world average of 5 cubic meters), caused partly by thematerials breakdown by type as used in pulp production),

lower share of recycled paper in total raw materials (Poland: 30%; world: 40%;Germany: 56%), with no deinked paper available on the Polish market,

a production materials structure dominated by packaging paper and board(Poland: 55%; world: 40%), with a limited use of newsprint and printing paper(Poland: 32%; world: 45%),

higher energy consumption and different proportions of fuel utilization (solidfuels account for 76% of all fuels used in Poland whereas liquid and gas fuelsdominate in the European Union: 62%).

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Figure 4.3.6

4.3.7 The possibility of limitation of energy consumption in the pulp and paper industry .There are several possibilities that could cause a reduction of energy consumptiona) the limitation of water consumption in process;

b) the alterability;c) the possibility of recycling;d) the using the renewable sources of energy;ad. a) The guided traditional way: on every ton of cellulose cambium, 1700 simple

tons of water is needed, mainly to forward liquid to translocation from one operation tothe other. The decrease in circulation of water leads to a decrease of demand for energy.It is possible to decrease the quantity of water to cause across introduction well knownand the worked out in Finland: technology of average consistency. Pumpingsuspensions of cellulose cambium about large consistency creates afloat possibility of total elimination of this demand in factories of cellulose. From the reductions they flowfor case large advantages and farming energy.

ad. b) Paper industries produce many sorts of paper for many customers. Very oftenthey have to change technology for some sort of paper, for example paper for newspaper, paper for books, etc. Technology changing costs a lot of energy. Industrieshave to be more elastic for these changes. Its possible, cause we can make a connected

production line (paper machine engines) and all these sorts of paper can be produced allthe time, in one organizational strategy. This production costs less energy thantechnology changing.

ad. c) Development of recycling is another possibility. When waste wood and waste paper is reused, a lot of energy is saved on the process of making the wood ready for usage. The process of barking, chopping, cookery and rinsing is skipped. Also wereduce the cost of bound energy from gaining over material.

ad. d) When energy from renewable energy sources is used, the effects of theindustry on the environment are reduced. It also limits the emissions.There are several possibilities.

waste warmth with manufacturing processes; waste warm from one process can be used for other processes. For example warmth from cookery can be used for warming water in industry.

- combustion biomass; we burn biomass (cellulose, lignine, woodwaste,) This burning process can be used to generate energy

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- pirolize biomass; here can be use cellulose, lignine, sawdust and wood waste; we become energy from waste in pulp and paper production; from 1 kg wood wastewe can become 6 kWh of energy;

5 Conclusions.

The sustainable character of economic and social progress that today is praisedrequires integration of international energy politics. The energy politics shouldsimultaneously preserve the economic balances and contribute to the protection of theenvironment. It is in this sense, that renewable energy can play a fundamental role for

paper for its contribution to the energy diversification, to the effort to solveenvironmental problems, their favourable indexes of employment generation and theindustrial development and advanced technology. The promotion of renewable energy istherefore fully justified and it will be key in the advance since the current energy outlinetowards a more sustainable model. It is the only option at the moment in the fightagainst the serious environmental problem of reducing the emissions of CO2 .

The research question as stated in the introduction was formulated as: whatshould the European Union do to make sure less energy is used in the PPI. This is avery broad question and we formulated four sub questions. For each region we, in part,answered these questions and now it comes to giving an answer to the overlappingquestion. Here we come to giving solutions by a virtual team for a real problem. Inthis section the recommendations for the EU are given. We divide theserecommendations in two different categories. First there are the short-term solutions for the more urgent short-term problems. Second there are long-term solutions to make surethat more and more energy will be saved and a fundamental and final solution to the

problem of the disadvantages of energy intensive industry is found. Finally there aresome remarks to make about Poland and its future membership of the EU.

On the short term CHP and DHP are the best technological options for achievingsignificant increase of energy efficiency and decrease of greenhouse gas emissions. TheEU should promote activities removing barriers in the different countries and setting upthe necessary framework for harmonization of this implementation within the wholeEU, existing and extended.

On the long term the use of renewable energy sources has to been brought to amuch higher level than the approximate 5% nowadays. To achieve this goal implies thatthe research for better efficiency and lower cost of the existing technologies has to beincreased substantially.

Besides these there are other recommendations. The EU should promote the

availability of information concerning the possibilities of Energy Management andenergy data monitoring. Also it should be made easy for companies to learn from eachother in the ways they use energy. Instead of just competing with each other, it should

be made easy to let the best solution be available to all the companies. Finally, the promotion of LTAs with energy intensive industries can promote the needed mentalitychange and an increase of the social awareness of the management. But also theawareness within the companies plays a role. Thus education and communicationshould be promoted.

So both on the policy side as the technical side improvements can be made. It isgood to notice that a lot is done already. Legal, fiscal and communication policy as wellas technical instruments are being used or experimented with. This doesnt mean that

nothing should be changed. Especially the speed at which these instruments are beingimplemented should be boosted. This could be done by limiting the problems facing the

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implementation of these instruments and by creating the right environment for a broadcooperation between existing organizations, like Research Centres from Universitiesand Industries, Energy Agencies, Consumers Organizations, GovernmentalDepartments, etc. not only within the own national grounds, but most important in asupranational environment like the EU.

In the European Union, Poland plays a special role. Together with 9 other countries from Eastern Europe it will soon form a part of the EU. These countries haveto adapt to the EU rules and norms. This means that also for ES and energy fromrenewable sources it is very important that they make haste to boost the percentages. Itis a task of the EU to make sure this happens as quickly and smoothly as possible.

The best way to do this is to make sure that these countries should make the so-called Frog Leap using the technology and knowledge of the existing EU members tocatch up with these member states. One way where the EU can actively promote this

Frog Leap is by support facilities for Tradable Emission Permits, so that the richdeveloped countries could invest in Eastern Europe and achieve in this way a part of theCO2-reduction for their countries. This would make the catching up a lot quicker andreduce the amount of pollution in Eastern Europe.

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6 Bibliography.

- Aln R.: Environmental perspectives on Scandinavias Pulp and Paper Industry.TAPPI Journal, Vol. 84, No. 6, 2001

- Berends, P.A.J., Swinging Industries. Cycles, adjustment and performance. Anempirical examination of the international pulp and paper industry.Ph.D. thesis Univ. Maastrich, ISBN 90-5278-310-1, 2001

- CBS, Nederlandse EnergieHuishouding , 1996

-ECN Beleidsstudies, Energieverslag Nederland 1997a

- European Community: The European renewable energy study: prospects for renewable energy in the European Community and Eastern Europe up to 2010.Directorate General for Energy, Commission of the European Communities, 1994

- European Community: For a European Union Energy Policy European Commission,Green Paper, 1995

- European Community: The European Union energy outlook to 2020. DirectorateGeneral for Energy, 1999

- Johanssen, A "Clear technology", Warszawa 1997; Science- Technical Editor

- Lubbers R.F.M. & C. Lemckert The influence of natural gas on the Dutch economy.In R.T. Griffiths(red.), The economy and politics of The Netherlands. DenHaag, 1980

- Min. Economische Zaken, Actieprogramma Duurzame energie 1997-2000

- Nilsson L.J. e.a.: Energy Efficiency and the Pulp and Paper Industry.http://www.aceee.org/pubs/ie962.htm

- Rodriguez, Mario Ortega: Energias renovables, 2000. Editorial Paraninfo.

- SAVE 8-10 November 1999: For an Energy Efficient Millennium.http://www.eva.ac.at/publ/pdf/pv1.pdf

- Strus, M "Biomass and other renewable energy sources in polish industries" Gdask 1996 University of Technology Gdansk

- Thompson J.R., Energy: Recovering capita; and cutting costs. TAPPI Journal, Vol.83, No. 11, 2000

- Utrecht University, Policy and Measures to reduce CO 2 Emissions by Efficiency and Renewables, Department of Science, Technology and Society, The Netherlands 1996

- Uyterlinde, M.A. and P.R. Koutstaal, Landenvergelijking energieverbruik en beleid.

Petten, ECN, Beleidsstudies, ECN-I-97-054, 1997

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Hyperlinks

http://eiop.or.at/erpa

http://europe.eu.int/scadplus/leg/en/lvb/l27001.htm

http://www.cepi.org

http://www.internationalpaper.com.pl

http://www.ipe.es

http://www.un.org

http://www.webmedioambiente.com

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http://eiop.or.at/erpahttp://europe.eu.int/scadplus/leg/en/lvb/l27001.htmhttp://www.cepi.org/http://www.internationalpaper.com.pl/http://www.ipe.es/http://www.un.org/http://www.webmedioambiente.com/http://eiop.or.at/erpahttp://europe.eu.int/scadplus/leg/en/lvb/l27001.htmhttp://www.cepi.org/http://www.internationalpaper.com.pl/http://www.ipe.es/http://www.un.org/http://www.webmedioambiente.com/


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Appendix I: Glossary

BENCHMARKING : Voluntary commitment for an industrial company to belong in thenext future to the best companies in the world.

BIOMASS : Non-fossilised organic material.

COMBINED HEAT AND POWER : Combined generation of both heat and electricityfrom fuel.

COMBINED CYCLE COGENERATION: Simultaneous generation of heat (steam)and electricity.

CARBON BASED FUEL, FOSSIL FUEL : Natural carbon-based substances produced bythe breakdown of organic matter. These substances can be gaseous fuels (natural gas),liquids (oil) and solids (coal).

DEMATERIALIZATION: Relation between physical production and the addedeconomical value of it.

ENERGY EFFICIENCY (INDEX): (EE): Energy use per amount end product. (EEI):Energy efficiency related to a reference year.

ENERGY INTENSITY: Energy consumption per added economical value of end product.

ENERGY TAX: Fiscal tool for increasing the cost of energy use. EXERGY: Maximum achievable energy in relation to a given amount of heat.

FINAL ENERGY (DEMAND): The net amount of energy for the final consumers.

HEAT PUMPS: Machines for increasing the temperature of a heat source using physicalwork.

KYOTO PROTOCOL: Protocol adopted in 1997 containing legally bindingcommitments for industrialised countries to reduce their greenhouse gas emissions. The

EU committed to a 8% reduction in 2008-12 compared with 1990.

LIFE CYCLE ANALYSIS: Integral analysis of a product from the start up to the end of its production process.

LONG TERM AGREEMENTS: Voluntary agreement between companies or anindustrial sector and the Governmental Organizations.

MONITORING AND TARGETTING: Parts of an energy management system for on-linemonitoring of energy use parameters and comparison with a given target.

NON-CARBON BASED ENERGY: Energy based on other than fossil sources

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PINCH-POINT: Point of minimum difference between the temperatures of the cold andthe hot streams in a heat exchanging system.

PHOTOVOLTAIC, PV: Direct energy conversion of sunlight into electric energy.

PRIMARY ENERGY: Required total amount of primary energy sources.

TECHNICAL, ECONOMICAL POTENTIAL: Maximum achievable reduction in energyconsumption with the most energy efficient technological tools, respectively economical

profitable technological tools.

RENEWABLE ENERGY (SOURCES): Biomass, sun energy, wind, geothermic,hydropower and tidal energy.

TRADEABLE EMISSION PERMITS: Tradeable permit for the emission of a given polluting material. The price of the permit is determined by mark mechanisms.

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Appendix II: Abbreviations/ Acronyms

ASPAPEL: Asociacin Nacional de Fabricantes de Pastas, Papel y Cartn

CEPI: Confederation of European Paper Industries

CHP, CH&P: Combined Heat and Power

DHC: District Heating or Cooling

EEI: Energy Efficiency Index.

EI: Energy Intensive

EE: Energy Efficiency.

ES: Energy Saving.

ERPA: European Recovered Paper Association

ERPC: European Recovered Paper Council

EVS: European Virtual Seminar.

GDP: Gross Domestic Product

LCA: Life Cycle Analysis

LTA: Long Term Agreements

MT: Monitoring and Targetting

NOVEM: Netherlands Agency for Energy and Environment

NGO: Non-Governmental Organization

PPI: Paper and Pulp Industry RES: Renewable Energy Sources

SD: Sustainable Development

VNP: Vereniging van Nederlandse Papier en Kartonfabrieken

Example Group Report 2002

Documents

Transcript of Example Group Report 2002