Selling the Paper Story – A Strategic Initiative for the Paper Industry

1. Selling the Paper Story – A Strategic Initiative for the Paper Industry Paolo Gianadda, Henry Coppens, Liezl Krummeck & Silvana Dimitrov Presented at the TAPPSA National Conference, Durban, South Africa, 19-20 October 2010

2. What is influencing opinion? • The internet • “Paper vs. Plastic”: 14,000,000 hits • Observations (Top 10 listed sites): • No paper companies/bodies • North American perspective • Strong emotive language around perceived negative impacts of the industry

3. What exactly is being said? • #1 site: http://www.angelfire.com/wi/PaperVsPlastic says of the paper industry: “a tremendous scar in the forest.” “numerous accidents plague the less-than-wealthy loggers.”

4. What exactly is being said? • #1 site: http://www.angelfire.com/wi/PaperVsPlasticsays of the oil industry: “An oil drilling/pumping rig is roughly the size of a house.” AND “Literally, you could ‘mine’ oil in your backyard.”

5. What exactly is being said? • #1 site: http://www.angelfire.com/wi/PaperVsPlasticsays of Plastic bags: Plastic: A by-product of oil refining. Only 4% of the total world’s oil used for its production. Apart from fuel burning heavy machinery, used in the acquisition of the oil, the entire plastic bag making process uses only electricity, which is mostly nuclear.

6. What else is being said? • Common messages: • Landfill space • Plastic: Recyclable & reusable • Resource consumption for paper: • Water – 50% more • Energy – 70% more emissions • Paper use = trees cut down • Who is writing this stuff? Where do these stats come from?

7. They even admit… Blog.greenfeet.com: “Is it a complete, scientific assessment? No. However, it’s a good start, filled with facts and one that I hope gets you thinking the next time you’re confronted with the choice” (paper or plastic). ...yet, this is what is influencing opinion

8. How should the paper industry respond? • Arguments against paper are: • Generalised and speculative • Scientific? • Different operating environment? • With some truths • Validity? • How should the industry respond? • Don’t speculate • Focus on the SA industry • Be transparent

9. Three Key Areas for Promotion

10. Biosequestration in Plantation Forests • Biosequestration – capture & storage of CO2 by biological processes • Neutral carbon balance • Plantation forestry – a carbon repository • Above ground stock • Root and soil carbon • Under-promoted aspect of the SA industry? Time to start accounting for carbon stocks? CO2 released in papermaking Atmospheric CO2 Cin wood CO2/CH4 released in product degradation C in product

11. Carbon Sequestration vs. Carbon Footprint • Carbon sequestration like a bank account: • Capital – above ground carbon • Interest – root & soil carbon • Only changes in carbon stocks count to carbon footprint • Green House Gas reporting mandatory in 2012. Carbon taxation mooted for 2012/2013 - offset potential?

12. Carbon Impact of Pulp & Papermaking • Complaints about energy intensity ignore: • Renewable energy use • Cogeneration

13. Energy Use - Kraft Process Black Liquor White Liquor Evaporation Causticising Lime Reburning Chemical Recovery Recovery Boiler Green Liquor Clarification High Pressure Steam Wood Handling Cooking Pulp Washing Bleaching Paper Machines

14. Energy Use - Kraft Process Evaporation Causticising Lime Reburning Gas Chemical Recovery Recovery Boiler Green Liquor Clarification Low Pressure Steam High Pressure Steam Steam Turbines Bark Eskom Electricity Bark Boiler Coal Fired Boilers Coal Electricity Wood Handling Cooking Pulp Washing Bleaching Paper Machines Black Liquor White Liquor Evaporation Causticising Lime Reburning Chemical Recovery Recovery Boiler Green Liquor Clarification High Pressure Steam

15. Energy Use - Kraft Process Black Liquor Evaporation Causticising Lime Reburning Gas Chemical Recovery Recovery Boiler Green Liquor Clarification Low Pressure Steam Steam Turbines Bark Eskom Electricity Bark Boiler Coal Fired Boilers Coal Electricity Wood Handling Cooking Pulp Washing Bleaching Paper Machines Black Liquor White Liquor Evaporation Causticising Lime Reburning Chemical Recovery Recovery Boiler Green Liquor Clarification High Pressure Steam

16. Total energy added to water to create steam Liq Phase Change – Liquid to Vapour Vapour 100oC 100oC 430oC 25oC R E P E A T Electricity Cogeneration & Condensing Power Generation • Electricity generated by passing high pressure steam through turbine. Steam expands, causing blades of turbine to spin. Power is generated & steam pressure reduced. • Cycle in Power Generation Plant: • Add energy to convert water to high pressure steam • Produce electricity from high pressure steam & reduce steam pressure until no more electricity can be generated • Convert low pressure steam back to water by removing energy from vapour

17. Cogeneration & Condensing Power Generation • Difference: Fate of the energy associated with the low pressure vapour. • Cogeneration – energy is used. • Conventional power generation – energy sent to cooling tower. • Mainly cogeneration • 0.43 t CO2-e/MWh (ex coal) vs. 1.03 t CO2-e/MWh • ~0 kl water/MWh vs. 1.34 kl water/MWh

18. Still a Positive Carbon Footprint Kraft packaging paper: ~3 t CO2/t paper Recycled paper: ~1 t CO2/t paper How does plastic compare?

19. Some estimates around plastic • Plastic bags made from polyethylene (PET) 1.75 - 2 t petroleum per ton of PET 0.75 tpetroleum for energy per ton of PET 2.1 – 2.4 t fossil CO2 produced per ton of PET 3.1 t CO2 released on decomposition per ton of PET

20. Paper vs. Plastic

21. Forward Looking Statements on Carbon “How is the paper industry planning to reduce its carbon footprint?” ... “Through efforts to increase renewable energy use”

22. Forward Looking Statements on Carbon “How is the paper industry planning to reduce its carbon footprint?” ... “Through efforts to improve cogeneration”

23. Forward Looking Statements on Carbon “How is the paper industry planning to reduce its carbon footprint?” ... “Through efforts to improve energy efficiency in the manufacturing processes”

24. Forward Looking Statements on Carbon “How is the paper industry planning to reduce its carbon footprint?” ... “Through efforts to increase the amount of paper recycling”

25. Forward Looking Statements on Carbon “How is the paper industry planning to reduce its carbon footprint?” ... “Through the promotion of the concept of Reduce, Reuse and Recycle.

26. Seven Facts about the Paper Industry Fact 1: Paper is a renewable resource

27. Seven Facts about the Paper Industry Fact 2: Paper is biodegradable

28. Seven Facts about the Paper Industry Fact 3: Plantation forests are natural sinks for carbon dioxide

29. Seven Facts about the Paper Industry Fact 4: Paper is easily recycled – recycled paper has a reduced carbon impact

30. Seven Facts about the Paper Industry Fact 5: Significant quantities of renewable energy are used to produce pulp and paper

31. Seven Facts about the Paper Industry Fact 6:Cogeneration – a greener power generation option

32. Seven Facts about the Paper Industry Fact 7:Reduce, Reuse, Recycle – the best way to reduce carbon impact

33. Looking ahead… • Just a start to the “Paper vs. Plastic” debate • Not all issues addressed • Product research agenda set by the gaps • Issues around utility to be addressed: • How many grams to produce an equivalent strength bag? • How many times can a bag be reused?

34. Parting Shot The paper industry has a compelling story to tell - is it not time to be more proactive as an industry in telling this story?