stora enso skoghall paper mill - abb group - automation and power

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22 August 2007 1 Welcome! Ulf Eliasson Senior Vice President Skoghall Boards Peter Olsson Engineering Manager Skoghall Boards

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22 August 20071

Welcome!

Ulf EliassonSenior Vice President Skoghall Boards

Peter OlssonEngineering Manager Skoghall Boards

22 August 20072

Stora Enso in Brief

• A world leader16.5 million tonnes of paper and board 7.4 million m3 of sawn and processed wood products

• Four main divisions Stora Enso Publication Paper,Stora Enso Fine Paper,Stora Enso Packaging Boardsand Stora Enso Forest Products

• Sales EUR 14.6 billion • Approximately 44 000 employees in

more than 40 countries• Market capitalisation EUR 9.5 billion

(31 Dec 2006)• Shares listed on Helsinki, Stockholm

and New York stock exchanges

22 August 20073

Net exports* of some product groups 2006 in Sweden

*)Net exports = exports of products less imported input materials

Total exports: 1085 billions SEK Total imports: 935 billions SEK

-60 -40 -20 0 20 40 60 80 100

Forest industry products

Cars, car parts

Electronic goods, computers

Other engineering products

Energy goods

Iron-ore, iron and steel

Pharmaceutical products

Other chemical products

billion SEK

Source: Statistics Sweden

22 August 20074

Electricity consumptionSwedish pulp and paper industry

0

5

10

15

20

25

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

total consumption

TWh

Total consumption in Sweden 2006: 146 TWh

The pulp and paper industry´s share: 15 %

22 August 20075

Forshaga Karlstad Research CentreSkoghall

Stora Enso Skoghall AB

22 August 20076

Products made from our paperboard

There are three main product groups:• LPB (Liquid Packaging Board) for milk, juice and other liquids. • CKB (Coated Kraft Back) for frozen foods, dry foodstuffs, general

packaging • WTL (White Top Liner) is the white outer layer of corrugated

fibreboard.

22 August 20077

Top 20 European Primary Fibre Board Machines

Source: Jaakko Pöyry & Stora Enso

Board Machine Capacity (ton/a)1. Stora Enso / Skoghall BM8 410 0002. Competitor BMA 400 0003. Competitor BMB 345 0004. Stora Enso / Skoghall BM7 275 0005. Stora Enso / Imatra BM4 260 0006. Stora Enso / Fors BM3 255 0007. Competitor BMC 250 0008. Stora Enso / Imatra BM5 240 0009. Competitor BMD 215 00010. Stora Enso / Imatra BM2 210 00011. Stora Enso / Baienfurt BM3 210 00012. Stora Enso / Ingerois BM4 205 00013. Competitor BME 180 00014. Stora Enso / Imatra BM1 175 00015. Competitor BMF 170 00016. Competitor BMG 165 00017. Competitor BMH 140 00018. Stora Enso / Fors BM2 138 00019. Competitor BMI 130 00020. Competitor BMJ 120 000

22 August 20078

Overview of the production process

Wood

CTMP

Sulphatepulp

Recovery

Board construction

Board production

22 August 20079

Investments

1989-90 External treatment plant

1992 Oxygen bleaching

1995-97 KM8, CTMP plant, Bleachingplant No.3

2000Rebuild of winder KM7Increased pulper capacity KM7/KM8

2001 Acquisition of Tetra Pak’sPE coating plant in Forshaga

2004-07 Energy 2005

EUR 423 milion Investments since 1988EUR 940 million

0

20

40

60

80

100

120

140

160

180

200

220

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

ME

UR

22 August 200710

Stora Enso has invested 211 M€ in energyand environment for the continueddevelopment of the Skoghall Mill

Goals for Energy 2005• To create a basis for the continued

development of paperboard production

• To improve energy efficiency• To reduce emissions to air and water

Project scopeRecovery boilerEvaporation plantCTMP evaporation plantMalodorous gas system Tall oil plant Rebuild of steam system and turbinesControl room-------------------------------------------Conversion of the oil boiler into a biofuel boiler Fuel-handling system

22 August 200711

Energy 2005 improves energy efficiency

• The more efficient use of energy and the increased use of bio fuel will reduce oil consumption by 60 000 m3/a.

• The share of biofuels of Skoghalls fuel mix is expected to increase to 93 % in 2007.

• The degree of self-sufficiency in electrical power will increase from 15% to 35%, which is the equivalent to the production of 400 000 MWh/a

• The Skoghall Mill is now one of the biggest producers of electrical power in region.

22 August 200712

Fossil CO2, biofuels and energy consumption at Skoghall Mill

Fossile CO2 emissions

0

100

200

300

400

2001 2002 2003 2004 2005 2006 E2007

kg/tShare of biofuels in fuel mix

0%

20%

40%

60%

80%

100%

2001 2002 2003 2004 2005 2006 E2007

Heat consumption

8,0

9,0

10,0

11,0

2001 2002 2003 2004 2005 2006 E2007

GJ/t

From grid

Ownprod.

Power consumption

800

1 000

1 200

1 400

1 600

1 800

2001 2002 2003 2004 2005 2006 E2007

kWh/t

22 August 200713

Energy 2005 – a contribution to reduced climate impact

Emissions of fossil CO2

• Energy 2005 makes a considerable contribution to reducing fossil carbon dioxide emissions

• The change has an impact on a global climate context, where it is a large single contribution

• The reduction corresponds to the emissions from cars in this region, where 100 000 persons lives

0

50 000

100 000

150 000

200 000

250 000

300 000

Skoghall Mill 2004 Skoghall Mill est 2007

ton

CO

2/a - 75 %

22 August 200714

Timetable

2006200520042002 2003

Environmentalprocess

Recovery boiler and evaporation plant

Investment decision made 11 Dec. 2003

Conversion of oil boilerinto a biofuel boiler

Feasibility study

Planning

Purchasingprocess

The new recovery boiler and evaporation plant were brought into operation in September 2005.

The converted biofuel boiler will be brought intooperation in the summer of 2006.

22 August 200715

22 August 200716

Start up of the recovery area in autumn 2005 was a success

Evaporation plant• The plant was started at a stop in

the pulp mill. After 6 hours liquorwas delivered.

• Very good operational economy.

Recovery boiler• Flying start up. Pulp was produced

during the start up.• Board machines produced 2600

tonnes during start up day, whichwas a production record.

• More steam production than beforeresulting in a decreased oilconsumption of 85 m3/d.

22 August 200717

Start up of fuel handling and bio fuel boiler in summer 2006 was also a success!

Fuel handling• Good mix of different fuel types• High availability

Bio fuel boiler• Good load regulation performance with

bio fuel• Good start up and high availability• Emissions in level with expected

22 August 200718

Energy2005 - when energy and environment dances together

22 August 200719

22 August 200720

22 August 200721

Wood and fibers

Wood chips

Back

22 August 200722

CTMP mill (mechanical pulp)

(CTMP=Chemi Thermo Mechanical Pulp)

• Mechanical separtion of fibers in big refiners.

• The process gives 90-95 % wood yield, but has a very high electrical power consumption.

• CTMP fibers provides bulk and by that stiffness in the board.

Capacity 250 000 t.p.a.

Back

22 August 200723

Sulphate pulp mill (chemical pulp)

• Chemical separation of fibers in the pulping process (cooking).

• The process gives 50 % woodyield, but chemicals and energyare recovered.

• The total strength of the fibers can be used in the board.

Capacity 330 000 t.p.a.Back

22 August 200724

Chemical and energy recovery

The recovery area in a sulphate pulp mill is a producer of energy as well as being a chemical plant for recovering cooking chemicals.

Back

22 August 200725

Top plyBleached sulphate pulp,softwood and hardwood

Center pliesMainly CTMP

Reverse plySoftwood sulphate pulpBleached or unbleached

Liquid Packaging Board– a high tech product!

Clay coating layers (1 to 3)

Produced in several plies

Back

22 August 200726

Start-up year 1996Length 298 mWidth 8,1 mAnnual capacity 410 000 tnCoating 3 stageGrammage 135-390 g/m2

KM8 – Basic facts

Back