biorefining opps for chemical pulp mills jonryder chh

8/10/2019 Biorefining Opps for Chemical Pulp Mills JonRyder CHH

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1

Biorefining Opportunities for

Chemical Pulp Mills

BANZ Conference 7th June, 2012

Dr Jon RyderChief ExecutiveCarter Holt Harvey Pulp, Paper, and Packaging



2

Key messages

1. Biochemicals and bio-fuels will be future products fromthe pulp & paper industry

2. Large scale is needed if they are to be nationally

significant

3. Such products must be co-manufactured alongside Kraft

pulp in an integrated biorefinery

4. The co-product options and development pathway are

not yet clear => Woodco Strategy has a key role



3

Fermentation

Distillationretreatment

Thermal

Power

Pelletizing

Steam

Direct Pyrolysis

Pre-Drying

Gasification

Pelletizing

Pre-Drying

Power

Torrefaction

Steam

Gas

Turbine

Steam Power

Direct Combustion

Bio-oil

Direct Combustion

Enormous Worldwide Interest in Biofuels

Hydrocarbons

Al ae Metabolism

Deoxygenate

Biomass

Chemical

Pulp

team

iquor

Recovery

Gasification

Gas

Turbine

Steam Power

Ethanol

Steam

Reforming

Catalysis

Chemicals

Chemical

Pulping

Extraction

Steam

Ethanol

Power

Thermochemical

Chemicals

Power

Fermentation Ethanol

Source: Prof. R. Phillips, NCSU



4

Outline of Presentation

1. Introduction and outline of our current pulp &paper business and operations

2. The opportunity for New Zealand

- Issues that must be addressed

3. What is the solution for New Zealand?

4. Some real industry examples

5. Conclusions



5

Carter Holt Harvey at a glance

Pulp, Paper & Packaging Building Supplies Group

Market pulp

Kraft packaging

papers

Recycled

packaging

papers

New Zealand

Corrugated boxes

Paper bags

Specialty board

Australia

Corrugated boxes

Paper cups

Timber

LVL

Plywood

Flooring

Panels

Distributor of

building

supplies

Frame and truss

manufacturing

Timber

LVL

Plywood

Flooring

Panels

Total Revenue $NZ 3.1 billion

NZ-made export revenue Over $NZ 800 million

NZ Employees Over 3,400

Key Metrics - 2011



6

Pulp, Paper & Packaging – Operations

Pulp &

Paper

Kinleith pulp mill(softwood andcontainerboard)

Tasman pulp mill(softwood &hardwood)

Lodestar FullcirclePenrose Mill

275,000 tonnesof Bleachedmarket pulp

335,000 tonnesof Kraftcontainer board(#6 Papermachine)

290,000 tonnes ofBleached,Unbleached, Fibrecement and Lowcoarseness

market pulp

85,000 tonnesof recycledcontainerboard

Shippingandtransport

14 recycledfibre facilities

300,000tonnescollectedannually

Packaging

CorrugatedNew Zealand

CorrugatedAustralia

CupsPaper Bag

Manufacturer ofcorrugated packaging inNew Zealand (35%market share)

3 corrugated plants and1 specialty board plant

Manufacturer ofcorrugated packaging inAustralia (5% marketshare)

2 plants

Manufacturer ofmultiwall sacks (90million sacks perannum)

1 Plant in Auckland

Manufacturer of papercups for the Australianand New Zealandmarkets

1 plant in Brisbane



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sustainable business



8

Fibre Supply

·Wood fibre - 3.7million tpa· ~ 34% of the wood processed in NZ· Sourced from managed plantations· 30% sourced as sawmill chip· Mainly FSC Controlled wood

· Recovered fibre· 300,000 tpa



9

Early mover in energy efficiency and CO2 emission

reduction

Example - Kinleith mill 1990 to 2011

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

CO2 emissions total Production tonnes

P

o

o

C

O

T

o

1990

2011

Production increased

by 60%

CO2 emissions reduced

by 30%

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.80.9

Emissions intensity ( TCO2/T product)

Emissions Intensity

reduced by 70%



10

Kinleith Energy Sources and Generation

· 80% of primary energy from biomass.

· 50% of electricity is internally generated

N o . 7

P r i m a r y B o i l e r

N o . 8

P r i m a r y B o i l e r

N o . 5

R e c o v

e r y B o i l e r

N o . 4

R e c o v

e r y B o i l e r

Co-generation Plant

4 5 0 0 k P a S t e a

m

4 5 0 0 k P a S t e

a m

1250 kPaSteam

450 kPa

Steam

C o n d e n s a t e

C o n d e n s a t e

C o n d e n s a t e

C o n d e n s a t e

4 5 0 0 k P a S t e a

m

Kinleith Steam Users

Gas

12.8%

Oil

1.6%

Wood

Waste

16.9%

Imported

Electricity

6.0%Black

Liquor

62.8%



11

Future business model

650

750

850

950

1050

2 0 0 1

2 0 0 2

2 0 0 3

2 0 0 4

2 0 0 5

2 0 0 6

2 0 0 7

2 0 0 8

2 0 0 9

2 0 1 0

2 0 1 1

Production tonnes per FTE · Continuous

improvement in

productivity in the last

decade has maintained

profitability

· New co-produced bio-

products will add

significant new revenue

and justify future

investments



12

CHH PPP - Bio-energy and bio-chemicals

· These mills are on a scale to efficiently utilise the

available wood supply· process 34% of the wood processed in NZ

· They use almost all the “waste” wood within their

catchments· Most is used to produce high value Kraft fibre· The rest is used as bio-energy

· The mills are biorefineries

· Largely run on renewable bio-energy and cogenerate their ownelectricity

· They already produce significant value from bio-chemicals fromthe wood – Turpentine and Tall Oil



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2. The Opportunity for New Zealand

· NZ will need more renewable energy in the future

· For bio-fuels to make a difference to New Zealand, it

needs to be at scale. For example:

· NZ consumes 6.1 billion litres/a of transport fuel **

· To replace 20% of that with ethanol from trees wouldrequire 9Mt/a of trees or residues (~ 80% of NZ’s

processed wood)

** Parliamentary Commissioner for the Environment, 2010



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New Zealand’s fibre resource will continue to drive significant

export revenue – opportunity to value add

Total New

Zealand

roundwood

cut from all

forests

22million

tonnes per

annum

Domestic

Processing

Export Logs Main export market has traditionally been

Korea (~2.5 million)

Strong demand recently from China, nowrepresenting largest export market (~6.5

million)

India is also growing steadily (~1.0 million)

Other (~1.0 million)

Pulp, Paper & Board Mills(~6 million)

Other domestic manufacture

(~5 million)

Combined

export

revenue of

NZD 4.8

billion

(almost 70%

of wood

harvested

ultimately

exported as

either logs or

value added

products)

Domestic

consumption

of ~NZD 2.0

billion

11million

tonnes per

annum

11million

tonnes per

annum



15

Harvest volume forecast to increase significantly over the next 10 to20 years providing additional export growth opportunities

21

32

38

0

5

10

15

20

25

30

35

40

2011 2021 2031

M

i

o

T

o

Year Ended 31 March

NZ Forests National Harvest

(constrained scenario)

Source: “A Forestry Sector Study” – Ministry of Agriculture and Forestry



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Key issues and questions we must face whenevaluating bio-energy options

· Bio-energy from wood residues may work at small scale but at large

scale all the “waste material” already has an economic value.

· Stand-alone bio-energy from trees or wood residues on a large scale

cannot pay enough for the fibre to be economic without large end-

use subsidies

· What will work at a sufficiently large scale to be significant within the

NZ economy (eg. 4 Mt/a wood)?

· Can the best bio-energy options compete with conventional products

and bio-chemicals for capital and available raw material?



17

Other countries are asking the same questions!

Top ROCE Technologies – B.C. Central Interior

0%

10%

20%

30%

40%

P o w e r v i a g a s i f i c a t i o n m e

d ( E )

V a l u e A d d e d P a r t i c l e b

o a r d

O S B m e

d i u m

E t h a n o l v i a S y n g a

s ( E )

N B S K + H & P M e d i u m + L

i g n i n

L V L S

m a l l

P e l l e t s W e s t m e

d i u m

L i g n o l C o m m

e r c i a l

O S B

l a r g e

S P F W e s t L a r g e + P e l l e t s L

a r g e

S P F W e s t m e

d i u m

P e l l e t s W e s t s m a l l

L i g n o l C o m m e r c i a l B r o w

n f i e l d

L V L

l a r g e

S P F W e s t

l a r g e

S P F W e s t L a r g e + P e l l e t s s m a l l

D i s s o l v i n g P u l p - V i s

c o s e

A c e t a t e v i a S y n g a

s ( E )

S P F W e s t L a r g e + P y r o l y s i s

N e x t e r r a S y n g a s

d r y e r

P y r o l y s i s S t a n d - a l o n e

C H P v i a P y r o

l y s i s

C H P D

i r e c t

T o r r e f i e d P e l l e t s W e s t

N e x t e r r a C H P s m a l l ( < 1 0 M w )

C H P ( 1 7 . 8

M W )

B i o c a r b o n W e s t S

m a l l

C r o s s L a m i n a t e d T i m b e r - M e

d i u m

17

Cost of Capital 11%

Source: FP Innovations, Canada



18

Borregaard on ethanol production and biorefineries

Source: Borregaard, Norway



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3. What are the bio-product solutions forNew Zealand?

· Must be at large scale

· Must be co-produced with higher value products, for raw

material to be economic

· But what solutions should we focus on?

· Kraft mills have the potential to co-produce bio-energy,

bio-fuels and bio-chemicals



20

20

Chemicals and fuels from wood



21

Chemrec Black Liquor GasificationEnhanced output of power through gas turbine

Production of chemicals and fuels through F-T Catalysis

Source: www.chemrec.com



22

Lignin Removal

Ligninremoval

Recovery boiler

Digester

Evaporation

Pulp bleaching

White liquorpreparation

Wood chips

Pulp

Source: LignoBoost



23

Recovered Lignin Applications

• Low Value

- Burn to improve boiler efficiency

- Pelletize to improve energy density

• Medium Value- Convert to phenolic resins

- Gasify and convert to transportation

fuels or other petroleum based

chemicals

• High Value

- Carbon fibers for lightweight

composite materials

Source: LignoBoost



24

Technology Fit Status

Gasify waste

wood to

eliminate Lime

Kiln Fuel

Not required in hog fuel boiler to be power

neutral

Multiple commercial

applications (Andritz

Machinery and Metso)

Extract lignin

from black

liquor

30% excess lignin to be power neutral 20,000 tpa semi-works

plant production in

Sweden for more than 3

years (Lignoboost®)

Convert tall oil

to biodiesel

Tall oil currently converted to gums and

rosins, may be of higher value as

transportation fuel

UPM (Finland)

announced 150 Million

investment at the

Kaukas Mill

Chemrec® Gasifies black liquor and converts biogas to

synthesis gas which can be catalytically

converted to transportation fuels

Under development for

>20 years with

successful pilot scale

DME production in

Sweden

Biofuels / Bio-products Real Developments




25

Technology Fit Status

Extract

Hemicelluloses

from wood

chips prior to

pulping

• Required for Dissolving Pulp

Production

• Produces superior pulp for tissue

application

• Produces superior pulp for absorbent

applications

• Hemicellulose

extraction practiced at

more than 20 dissolving

pulp mills in the world

• Conversion to ethanol,

butanol, poly lactic acid

full scale mill

evaluation in progress

(Old Town Fuel & Fibre,

Maine, USA)

Biofuels / Bio-products Real Developments




26

Resins and adhesives

Pre-

treatmentand

separation

processes

Conventional pulping and

papermaking processes

natural polymers

Marketable Products

Combustion

Paper grade pulps

Dissolving pulps

Composite productsPapers and packaging

Biofuels/chemicals

Biochemicals

Gasification Synthesis gasCO + H2

purification, catalytic

synthesis

HP steam generation Export power

Heat (steam)

Biofuels/chemicals

Process fuel (NG)

Lignin from BL

Sugars

Resin/fatty acids

Bark tannins sepn/chemical

chemical

chem or biochem

chemical

Modified lignins



27

Fermentation

Distillationretreatment

Thermal

Power

Pelletizing

Steam

Direct Pyrolysis

Pre-Drying

Gasification

Pelletizing

Pre-Drying

Power

Torrefaction

Steam

Gas

Turbine

Steam Power

Direct Combustion

Bio-oil

Direct Combustion

Enormous Worldwide Interest in Biofuels

Hydrocarbons

Al ae Metabolism

Deoxygenate

Biomass

Chemical

Pulp

team

iquor

Recovery

Gasification

Gas

Turbine Steam Power

Ethanol

Steam

Reforming

Catalysis

Chemicals

Chemical

Pulping

Extraction

Steam

Ethanol

Power

Thermochemical Chemicals

Power

Fermentation Ethanol




28

Conclusions

1. Co-manufactured biochemicals and bio-fuels will be an

integral feature of the pulp & paper industry

- Maximising value from the whole tree

2. The best co-product options and development pathway

are not yet clear

3. Woodco Strategic Action Plan

- Pan-industry collaboration essential

- Scion-FP Innovations Techno-economic Study

- Alignment and targeting of R&D

- “One voice, one ask”



29

Questions?

biorefining opps for chemical pulp mills jonryder chh

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