columbia pulp and non‐wood fibers in the marketplace...invented. wood was quickly established as...
TRANSCRIPT
John BegleyCEOColumbia Pulp
Columbia Pulp and Non‐Wood Fibers in the Marketplace
RISI North AmericaOctober 12, 2018
San Francisco
History of Non‐Wood Fibers
• Non‐wood fibers are not a new idea. They have been used to make pulp/paper since dawn of civilization.
• Papyrus was used in ancient Egypt as much as 2500 BC
• Paper was first made in China in the first century AD. It was produced from old rags, fishing nets, mulberry bark and grass.
• For the following 1700 years paper was made exclusively from non‐wood fibers, such as cotton, hemp, flax and grass.
• It was 1857 that the process of pulping wood fibers and forming them into a paper web was invented. Wood was quickly established as the primary source of fiber for papermaking and today provides some 90% of the fibrous raw material used in the process.
• Wheat straw was a prevalent pulping fiber in the US Midwest until the 1960’s when environmental regulations made it uneconomical.
• Historically, non‐woods have developed a reputation of poor performance, weak characteristics and being a “dirty” process
CONFIDENTIAL 2
Types of Non Wood Fibers
• Agricultural Residue• Wheat• Bagasse• Barley
• Fiber Specific Crops• Arundo donax• Bamboo• Kenaf
• Crops from Bio‐Ethanol Plants• Miscanthus• Energy Cane• Energy Sorghum
Why Non Wood Fibers?• Raw Material Implications
• Positive Impact to Global wood shortage on pulp & paper cost structure and competitiveness• Competitive production rates per acre
• Impact of increased use of recycling on recycled availability and quality• High cost of capital and the growing pressure of ever‐tightening environmental regulations• Market driven demand for sustainability• More Biomass Available• Higher Production Rates per Acre
• Doug Fir 2 tons per acre per year• Ag Residue and Fibers 2 to 35 tons per acre per year
• Economic utilization of Residual Agricultural Waste• Strength characteristics equal to or better than Hardwood Fibers• Commercial Implications
• Strong sustainability story• Supply chain – growers to converters to consumers
• Increased emphasis on better use of agricultural waste• Unique value proposition for boutique products
CONFIDENTIAL 4
About Columbia Pulp• Genesis for this project came from State of Washington’s drive to reduce the field
burning that occurred every year after harvest.
• Using innovative and proprietary technology, Columbia Pulp’s mill • will be the first in North America to turn waste wheat straw into market pulp which will be used to
manufacture sustainable, paper and packaging products • will take 250,000 tons of wheat straw to yield 150,000 tons of market pulp and 95,000 tons of bio‐
polymers every year
• Strategically located in Southeast Washington• 450 acre site at Lyon’s Ferry Washington• One of the leading wheat growing regions in the world
• Over 4 million tons of straw per year within 75 miles of site• Infrastructure advantages of site:
• Rail line goes through site• Major Highway• Positioned right on Snake River• Natural gas availability on site
• Broke ground in August, 2017, expected start‐up Q1 2019
CONFIDENTIAL 5
Wheat Production
ColumbiaPulp
Columbia’s Products and their MarketsPulp
• Wheat straw fiber properties are similar to or exceed hardwood fiber specifications (i.e. aspen, eucalyptus)
• Target Markets• Molded Fiber• Tissue and Towel• Specialty• Packaging
Bio‐Polymers• Unique chemical composition of lignin and carbohydrates provide value to convertors and end users
• Target Markets• Deicing• Erosion Control and Dust Suppression• Agro‐chem Spray Adjuvants• Animal Feed
CONFIDENTIAL 6
Our Sustainability Story• Eliminates the need to burn 250,000 tons of straw waste (approximately 100,000 acres)
• Reduces approximately 45,000 tons of air emissions• Uses approximately 25% of water per ton compared to a similar sized conventional pulp mill
• Uses approximately 30% of energy per ton compared to a similar sized conventional pulp mill
• Will produce zero tons of material going to landfill. All waste is composted.
• Sulfur‐free process. No sulfur odor that is associated with conventional pulp mill
• 100% on‐site power production (off‐grid operation)• Providing over 100 full‐time jobs at site, another 300 in
support• Revitalizing the straw industry with an estimated $13 million
in straw purchases every year.• Generating an estimated $70 million per year in total
economic impact to the community• In the process of completing a Life Cycle Analysis
CONFIDENTIAL 7
In Summary• Process optimization, training and R&D efforts supported by a Pilot Plant (located in Pomeroy WA) designed as a small scale version of main facility
• The products produced by Columbia Pulp will satisfy an increasing demand for non wood fiber
• Modern manufacturing equipment and processes enhance efficiency and cost
• A people centric culture will focus on employee safety , career development and job satisfaction
• The high Sustainability profile is World Class from both a manufacturing and a customer perspective
• Partnering with Central National Gottesman to enhance market awareness and customer satisfaction
• Columbia Pulp’s innovative business model will positively impact many aspects of our business
CONFIDENTIAL 8
Thank You! Questions?
CONFIDENTIAL 9
John BegleyCEO
Columbia Pulp115 E. Main StreetDayton, WA 99328(509) 288‐4892
www.columbiapulp.net
CNGThree Manhattanville RoadPurchase, NY 10577‐2123
800‐221‐3042www.cndivision.com