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 Real Problem

A project of the European Virtual Seminar Group no. 8

Table of Contents. 1 2 3 3.1 3.2 3.3 4 4.1 4.2 4.3 5 6 About the European Virtual Seminar Introduction Energy Saving in the EU Energy Saving in the Pulp and Paper Industry Paper Recycling Country energy characteristics Country profiles Spain The Netherlands Poland Conclusions Bibliography 3 3 5 6 8 8 9 10 11 15 20 22 24 26

Appendixes Appendix I: Glossary Appendix II: Abbreviations/Acronyms

About the European Virtual Seminar.

This document is the result of a project of the European Virtual Seminar (EVS). It is a course where Students from several European Universities can cooperate in a virtual team. The task of this interdisciplinary team is to research several projects concerning Sustainable Development. Arrived to this point it is necessary to define this concept since 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 the ability of future generations to meet theirs. (www.UN.org) This is the report of a research done by four students about energy saving (ES) in the Paper and Pulp Industry. The way it came into being is perhaps very different from most 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 Sustainable Development (SD) they were also part of an experiment about doing research in a total virtual surrounding. The results of this experiment could change the way in which future research will be done. It will perhaps introduce a more efficient way of doing research between people of both different disciplinary as well as different national and lingual backgrounds. This report has known 4 authors: Anna Palewicz, a Polish Environmental Sciences student, as well as Jos Luis Salve who lives in Holland; Oscar Rodrguez Snchez who lives in Spain and studies Geography and finally Tom Schep is a Dutch Sociology 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. Also Jose did most of the contributions about The Netherlands and Tom wrote most of the text in the introduction and conclusion. The team strifed to make the text into a coherent whole, but they have finally chosen to reflect their own visions on it. All the members of the team discussed and validated every part of the text. In addition to these tasks, the teammembers took on roles to make the cooperation work as smoothly as possible. Jose did most of the planning and technological knowhow. Tom was the editor or end-writer, trying to make all the contributions from the team into one coherent text. Anna kept a list of all the available data and arranged and ordered 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 the usage of fossil fuels. We are using much more of these fuels than there is created through natural processes. This implicates that although we can always find new sources, finally we will run out of fossil fuels. The ever-growing world population requires a growing amount of energy and fuel. The developing countries cannot industrialize, 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 list of many national and international authorities and Non Governmental Organizations

(NGOs) In Kyoto many countries obliged themselves to reduce the emission of carbon dioxide. This was a big political breakthrough, for this symbolized that these countries recognized that something had to be done. There are many ways in which we can force back the usage of fossil fuels. In the first 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 right now it still is the case that most sustainable power is more expensive then the old fashioned way of generating power using fossil fuels. The second one, the social side is also important. Because of the price of non-carbon based energy, the opinions of people and therefore of politicians vary greatly. This often makes the creation and implementation of government policy a hard item. A more direct way of reducing the carbon-based energy for which in general more consensual support can be found is reducing 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 the house. New technologies are needed if the same amount of end product is to be manufactured with less energy, i.e. increasing the energy efficiency of the industrial process. Therefore research is needed in the production processes of the existing industries and in the design of new industrial processes. Below is a table on the subsidies that are offered to different energy generating ways. To promote the generating of renewable energy, both member states as the EU gives large subsidies. TABLE 2.1 Direct subsidies (millions of $) fossil fuels nuclear energy renewable energy Subsidies on Energy Member states EU 9681 4178 1247 531 428 131 total 10247 4675 1488

Source: greenpeace 1999.

In the production process of paper and pulp a lot of energy is needed. This industrial sector is very energy intensive and because of the high energy costs (approximately 15% of the production costs), it makes energy saving (ES) very attractive 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 pulp and paper industry. Pay attention to differences between countries and firms. Deal with at 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 the European Union as a starting point. We stated the general research question as: what should 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 saving must come from other generation processes. Technical innovation and research is needed 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

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. Once they are answered the insight in the issue of energy saving will be better. This insight could 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 abovementioned overlapping question. The research object will be the actual and extended European Union. We chose three countries: Spain, Poland and The Netherlands. These countries are the countries the group members live in. The European Union is the target of 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 technical overview about the PPI in Europe. Then comes a chapter that contains the data about the three chosen countries. Special attention will be paid to Poland. Being a country that is on the list of future member states it has a special role. As a result of the future membership it has to accept all the laws and rules already agreed upon in the past by the EU. This means that also the PPI in Poland will have to go by the rules now used in the EU companies. In the final chapter we shall state our final conclusions and recommendations 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 the difficulties in getting specific information and statistics concerning the PPI, the short time 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 that attempts to make an overview containing relevant information would be fruitless. By this reason we have chosen for a preliminary study presenting ripe and unripe information related with ES in general within the EU and trying to present some specific information in relation with the PPI in general and in some countries of the Community. 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 use of 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 discuss in 3.1 briefly these EU programmes and in 3.2 we shall pay attention to the general characteristics of some Member States in relation with their energy use. 5

The promotion of the use of energy from renewable sources (RES) is the main subject of the ALTENER programme. The principal goal of this programme is to increase (EU, 1994) the contribution of these energy sources from 6% in1997 to 12% in 2010. The use of established renewable energy techniques amounted 4% in 1991, with significant 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 turbines are confined mainly to Denmark, Germany and The Netherlands General consensus has been founded in the improvement of the energy efficiency in the European Community (SAVE, 1999). The SAVE programme tries to encourage the 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 the SYNERGY programme, for the cooperation with third world countries, and the SURE programme, for nuclear safety. The CENTREL electricity grid connects in 1995 the Eastern European countries with the main European electricity grid. The signing of the European Energy Charter in 2000 makes cooperation possible between the European Community and Russia on energy. But technology alone will not be capable of delivering the scale of reductions needed for the EU to meet its Kyoto commitments (Shock, SAVE 1999). Effective management is required for delivering the best results. This vision is being implemented in Monitoring and Targetting (MT) techniques, Energy Auditing, Benchmarking and Long Term Agreements (LTA). There are many success stories with the support of the EU on different Member States. The use of economic instruments such as Energy Tax, Tradable Emission Permits and the specially the promotion of voluntary Long Term Agreements (LTA) with some industrial sectors is increasingly getting more and more attention as a very promising instrument for promoting energy efficiency and environmental awareness as pointed by P. 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. The largest 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 selfgeneration of biomass sources (about 60%) and according to foregoing reference this industry has the possibility of being able to provide all (!) the energy requirements and even 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

energy saving and makes the gap between the economical and the technical potential too large (the so called efficiency gap). The required long payback time for technological innovations is being aggravated by the relatively low prices of fossil fuels in the actuality. On the other hand the high energy intensity of the production process offers a big technological potential for achieving a substantial energy saving: Perfecting and adopting biomass and black liquor gasification along with combined cycle 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 energy efficiency 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 like Combined 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 efficiency about twice as high as the conventional turbines. In capital intensive industries is a short return on investment of a very high importance for the acceptance of new techniques, making CHP with its combination of a high efficiency and proven operational functionality very suitable for energy saving. According to a paper in a SAVE congress (Else Bernsen, SAVE 1999) is CHP one of the best technologies achieving the goals of energy efficiency and energy conservation within the EU. In 1997 the European Commission stated the following conclusion: 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 to evaluate 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 services offered by specialized national agencies in energy management. These agencies offer a complete 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 development of 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 the suitability of these tools. The geographical diversity (social, industrial, climate, etc.) can be a too big barrier for central implementation. He concludes that most mandatory and legal tools/instruments, voluntary schemes (LTAs) seem to be suitable for EU level implementation. As stated in the last paragraph for the last trend in the energy market more and more firms are placing their energy supplies and management in the hands of specialized agencies, making it easier to promote the use of advantageous techniques in a 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 the energy market is being completed. Experiences in the US (Thompson, 2000) have shown that some mills found it financially appropriate to sell power to energy companies and to buy it back as they need it.

The European Associations, CEPI and ERPA have formulated a European Declaration in which they voluntarily offer to assume environmental commitments, such as reducing the production of residuals in their activities, to optimise recovery systems 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 demand for 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 situation radically changed. Now there are also many new environmental problems. There is a double negative effect: the indiscriminate large numbers of trees being felled and the production of deterioration of the environment. The result is deforestational problems and environmental contamination. These problems can be solved using recycled paper manufactured under some strict norms for not using aggressive chemicals in the transformation process. We should get a recycled paper him to fulfil the same technical characteristics as the manufactured paper from virgin pasta. If this is achieved, a substantial 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 many trees because to get a ton of paper pasta it is necessary fell 17 trees, of which each one would needs at least 20 years of growing. Recycling doesn't contaminate the environment (with the total of paper and the cardboard that every year is thrown out in the developed countries we could manufacture a hygienic paper roll that goes round the earth for twenty times the) and it saves energy. The recycling is the only way to liberate us from the double negative effect. When we understand that paper waste is able to manufacture other paper and that it is not garbage what we throw out, but whole forests, we will have understood the ecological value of the consumption. This means also that recycling has an enormous impact on the ES in the PPI and has to be promoted as one of the best promising tools, specially when you take into account the still very large differences on the scale of recycling in the 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 Final Primary Import in Electricity Renewable capita energy energy % of total in % of final in % of final (1000$) demand per before demand demand per capita Capita use (GJ) (GJ) Denmark 33.1 122 189 25 18 6.5 Germany 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 8

Spain Poland Average EU(1)

14.8 3.5 17.2(3)

72 58 133

109 109 162(3)

69 5(2) 60

18 18 18

3.5 2.5 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 is the 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 the colder climate than for instance Spain as it is illustrated by a lower energy use in Denmark than in The Netherlands albeit the climate in the former is colder than in the last 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 due to the high availability of hydropower in this country. For the Netherlands the explanation is very different, namely the huge oil refinery sector accounts for a big part for 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 tabulated countries 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 coal supplies and in lesser amount for extern oil supplies. Poland has very large coal reserves accounting for the energy needs of this country. The Netherlands has the lowest percentage of electricity for final energy demand due 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 availability of hydropower and the large woodlands account for the high percentage of renewables in Sweden. The differences between the Member States are very large in economical aspect is illustrated by the GDP for the tabled countries, being the lowest for Poland, about 1/10 of the GDP for Denmark and of the average of the EU. Huge differences can be found also in the degree of self-sufficiency in energy supply. The average for the EU accounted in 1992 approximately 49% and varied from as 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 the differences 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 its economy that is mainly based on solid fuels and the energy intensity level of its industrial 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. It gives an overview of the state and developments of PPI energy savings in those countries. 9

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 capitalintensive 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, prices fluctuate. The concentration in the industry is increasing with a smaller number of large key players being the dominant firms. Specialized machine suppliers produce the key technologies. Improvements and technical change take place in the interplay between the machine suppliers and the paper producing companies. The technical changes are driven by production and market demands. The industry of paper in Spain is the fifth industrial sector in energy consumption, with 4% of the national use of energy. Nevertheless, this sector has a great potential to cover its energy demand internally by burning the by-products and the use of cogeneration facilities. Due to the climate problem, energy conservation and energy efficiency have enjoyed growing attention. The extent to which such efficiency gains can be achieved depends on the availability of energy conservation technology. In order 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 the replacement of separate heating equipment to produce steam for use in paper production by combined heat power units. Such changes lead to drastic reduction of CO2 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 covering the total energy consumption. The cogeneration is a system of energy generation that is 60 % more efficient than the conventional thermal power stations. It produces electric power and useful thermal energy simultaneously for the industrial activity.The installation 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 the recycling circuit because it is polluted and or is not usable as raw material, can be utilized as fuel, the same way as the residual biomass of the process of production. This way the sustainable cycle of the paper closes and makes beginning in a renewable and natural 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 energy like 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. The substitution of the fuel oil and the coal for natural gas suppose a reduction of 27% and of 41% respectively in the emissions of CO2 produces for to generate the same quantity of energy. Paper is a renewable and recyclable natural resource. It can become the substitute for other materials with more environmental impact like plastic. Everything with the objective to reduce costs and to achieve a closed energy cycle so that less contamination of 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 fibres are 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 and it generates less quantity of residuals. The cellulose factories use wood of species of quick growth, coming from cultivations forest exploited in a sustainable form. A hectare of cultivation of these species fixes in one year 10 tons of CO2, four times more than the trees of slow growth. The factories of the paper transform the cellulose fibres in paper so that it later becomes an enormous variety of products. With the development and application more respectful technologies 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 companies that 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 and communication might help as well. Fig 4.1.1 shows the distribution of renewable energy sources for Spain.
renewable energy sources 1 2 3 4 5 6 7

9% 3% 0% 10% 75% 3% 0%

Fig 4.1.1 1.biomass 5. urban accustomed to residuals 2.water energy 6.eolic energy 3. hydraulics energy 7. geothermal energy 4. photovoltaic solar energy Source: renewable energy. Mario Ortega Rodrguez.

The largest part is produces through biomass. No energy is generated through wind energy. This portion could be increased. 4.2 The Netherlands. 4.2.1 General energy characteristics The 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 the land and the North Sea. In 1995 the sources of primary energy are presented in Figure 4.2.1 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 the distribution of energy sources has not changed significantly during the last decades.

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Coal is almost exclusively used as fuel for electricity generation. For this purpose is the following fuel distribution used in 1998: coal 44%, gas 48% and nuclear energy 8%.
13% 4% nat. gas 48% 35% 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 with the low level of contribution (25.6%) to the GDP illustrates the relatively large size of the energy intensive (EI) industry.
4% 7% 11% 39% Industry Domestic Transport Services Agrarian 21% Rest

18%

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 this sector 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 EI has 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 Netherlands during the 60ies has chosen to give financial facilities to the energy intensive industries as the chemical, metallurgical and the PPI sector. This decision was taken short after the discovering 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 many voluntarily Long Term Agreements (LTA). The experiences with these LTAs are generally positive and the EI is decreasing significantly. In the period 1989-1996 there were 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 probably insufficient 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 12

the energy intensive industry, thus also the PPI, with the collaboration of the Dutch government commits to belong to the top of the world; a new kind of LTAs are starting to be agreed, more and more with individual firms instead of industrial sectors with 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 the final 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. In figure 4.2.3 can be seen that waste burning has the largest contribution, followed by wind energy.
20% 5% 5% 70% 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 achieving a RES contribution of 12% by 2010 and of 25% by 2050. The land knows a large system 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 Netherlands The 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 Dutch VNP, that in the rank list of the European PPI (in sales volume in 2001) stands on the 9th place (Spain (7th) ). TABLE 4.2.1 : The Netherlands Paper and Board Association (VNP) Companies 17 Factories 27 Employees 6400 Capacity 3566 (x1000 tonnes) Production 3228 (x1000 tonnes) Sales 3174 (x1000 tonnes) Turnover 4842 (x EUR 106)
Source: Annual Report VNP 2001

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The geographical distribution of the factories is presented in figure 4.2.4. The Dutch PPI followed in 2001 the decline in overall production as shown by almost all European countries. The Mission statement matches the definition of sustainable development: The Dutch paper and board industry aims to be a highly innovative, environmentallysound 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 a result of a LTA on Energy. In this LTA was a reduction of 20% agreed in this period and 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 clearly accentuated.
100 95 90 EEI 85 80 75 70 89 93 94 95 96 97 98 99 00 Year EEI Reference

Figure 4.2.5: Energy Efficiency development Source: Annual Report VNP 2001

The level (in 2000) of the paper consumption amounted 250. (Kg/capita). This relatively 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 Dutch PPI and the VNP is committed with other paper handling organizations in a recently concluded Packaging Covenant for Paper Recycling. The way of certification of the 14

sustainable use of forests is still a matter of discussion within the VNP and related organizations 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 Efficiency Benchmarking 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 energy monitoring 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 in 2001, 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 Dutch PPI 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 with the joining into the EU a lot can be improved.
main users of electrical energy in Poland 1996 1% 1% 4% 7% 16% energy export home farms municipal economy loss of energy 55% 15% 1% 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 these technologies were boosted, a lot of extra renewable energy could be created.
renewable energy sources 2% 2% 2% 1% biomass water energy geotermical energy wind energy solar energy 93%

Fig 4.3.2

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4.3.2 Position and Structure The 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 the 21st 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 dramatic growth has also occurred in the paper-converting subsector.

Figure 4.3.3

4.3.3 Geographical Distribution The Polish pulp and paper industry comprises businesses widely dispersed throughout the country. Pulp and paper manufacturing plants are concentrated around existing sources of raw materials, mainly in southern and, to a certain extent, also in western 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 big metropolitan areas.

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Figure 4.3.4

4.3.4 Sources of Raw Materials Present Situation and Trends In 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 sawmill industry. At present, Polands available wood resources (400600 thousand cubic meters) are only sufficient to meet an estimated 10%15% of the industrys demand. Eastern wood markets (Russia, Belarus), however, have a tremendous potential and could 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 the current rate, no significant shortages of supply are anticipated (perhaps with the exception of coniferous pulpwood). Another factor to be considered is the projected savings of wood expected to result from the shift toward highly efficient equipment and converting technologies. The chief raw material used for manufacturing paper is prime stock pulp. Thus far, 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 used for the production of paper (590 thousand tons, 11% of which was imported). More than 50% 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 to supplementing the supply of these products. 4.3.5 Level of Technological Advancement and Production Standards The 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 and recently revamped) boasting stateofthe art machinery, most mediumsized and small companies rely on antiquated technological installations. The worst situation can be found in the paper and paperboard converting industry. The low level of technological advancement 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 Patterns Compared 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 the area of paper making, whereas in the world, paper mills operate at 87% capacity and pulp mills at 81%), heavier reliance on costly, highergrade pulps, and a relatively limited use of the more massefficient varieties (in Poland, highgrade varieties pulp account for approximately 83% of the industrys total pulp consumption, while the corresponding proportion is 66% in Europe and 74% worldwide), more materialintensive production of pulps (6.5 cubic meters of wood per ton of pulp, compared to the world average of 5 cubic meters), caused partly by the materials 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 (solid fuels account for 76% of all fuels used in Poland whereas liquid and gas fuels dominate 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 consumption a) 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 to the 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 known and the worked out in Finland: technology of average consistency. Pumping suspensions of cellulose cambium about large consistency creates afloat possibility of total elimination of this demand in factories of cellulose. From the reductions they flow for case large advantages and farming energy. ad. b) Paper industries produce many sorts of paper for many customers. Very often they 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. Industries have 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 all the time, in one organizational strategy. This production costs less energy than technology 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 we reduce the cost of bound energy from gaining over material. ad. d) When energy from renewable energy sources is used, the effects of the industry 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 waste we can become 6 kWh of energy; Conclusions.

The sustainable character of economic and social progress that today is praised requires integration of international energy politics. The energy politics should simultaneously preserve the economic balances and contribute to the protection of the environment. 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 solve environmental problems, their favourable indexes of employment generation and the industrial development and advanced technology. The promotion of renewable energy is therefore fully justified and it will be key in the advance since the current energy outline towards a more sustainable model. It is the only option at the moment in the fight against the serious environmental problem of reducing the emissions of CO2. The research question as stated in the introduction was formulated as: what should the European Union do to make sure less energy is used in the PPI. This is a very 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 overlapping question. Here we come to giving solutions by a virtual team for a real problem. In this section the recommendations for the EU are given. We divide these recommendations 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 sure that 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 are some 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 achieving significant increase of energy efficiency and decrease of greenhouse gas emissions. The EU should promote activities removing barriers in the different countries and setting up the necessary framework for harmonization of this implementation within the whole EU, existing and extended. On the long term the use of renewable energy sources has to been brought to a much higher level than the approximate 5% nowadays. To achieve this goal implies that the research for better efficiency and lower cost of the existing technologies has to be increased substantially. Besides these there are other recommendations. The EU should promote the availability of information concerning the possibilities of Energy Management and energy data monitoring. Also it should be made easy for companies to learn from each other 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 mentality change and an increase of the social awareness of the management. But also the awareness within the companies plays a role. Thus education and communication should be promoted. So both on the policy side as the technical side improvements can be made. It is good to notice that a lot is done already. Legal, fiscal and communication policy as well as technical instruments are being used or experimented with. This doesnt mean that nothing should be changed. Especially the speed at which these instruments are being implemented 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 broad cooperation between existing organizations, like Research Centres from Universities and Industries, Energy Agencies, Consumers Organizations, Governmental Departments, etc. not only within the own national grounds, but most important in a supranational 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 have to adapt to the EU rules and norms. This means that also for ES and energy from renewable sources it is very important that they make haste to boost the percentages. It is 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 socalled Frog Leap using the technology and knowledge of the existing EU members to catch 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 rich developed countries could invest in Eastern Europe and achieve in this way a part of the CO2-reduction for their countries. This would make the catching up a lot quicker and reduce the amount of pollution in Eastern Europe.

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- 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. An empirical 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. Directorate General 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 CO2 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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Appendix I: Glossary BENCHMARKING: Voluntary commitment for an industrial company to belong in the next future to the best companies in the world. BIOMASS: Non-fossilised organic material. COMBINED HEAT AND POWER: Combined generation of both heat and electricity from fuel. COMBINED CYCLE COGENERATION: Simultaneous generation of heat (steam) and electricity. CARBON BASED FUEL, FOSSIL FUEL: Natural carbon-based substances produced by the breakdown of organic matter. These substances can be gaseous fuels (natural gas), liquids (oil) and solids (coal). DEMATERIALIZATION: Relation between physical production and the added economical 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 physical work. KYOTO PROTOCOL: Protocol adopted in 1997 containing legally binding commitments 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 an industrial sector and the Governmental Organizations. MONITORING AND TARGETTING: Parts of an energy management system for on-line monitoring 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 and the 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 energy consumption 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

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