Pulpaper18 Conference

29–31 May 2018 Messukeskus Helsinki Conference Book

ANDRITZ OY IN FINL AND

LOCAL EXPE RTISE – GLOBAL MARKETS

ANDRITZ Oy is one of the leading global suppliers of systems, equipment, and services for the pulp and paper industry – as well as for biomass boilers and gasifiers for energy generation. The company, headquartered in Helsinki, Finland, has centers of excellence located

in Kotka, Lahti, Lappeenranta, Savonlinna, Varkaus, and Tampere.

ANDRITZ HYDRO Oy, a subsidiary of ANDRITZ Oy, supplies systems, equipment, and services for the hydropower industry. ANDRITZ Oy has two manufacturing facilities: Savonlinna Works Oy and Warkaus Works Oy.

ANDRITZ Oy ⁄ Tammasaarenkatu 1 ⁄ 00180 Helsinki ⁄ Finland ⁄ andritz.com

The number of employees of ANDRITZ companies in Finland is approximately 1 200. The company is part of the ANDRITZ international technology group which operates more than 250 sites in over 40 countries.

TABLE OF CONTENTS Be ready for new opportunities – nanotechnology will revolutionize industry and society . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Maria Strømme, Professor of Nanotechnology, Uppsala University Äänekoski bioproduct mill – towards integrated biorefineries. . . . . . . . . . . . . 6 Ilkka Hämälä, President and CEO, Metsä Group Finland´s roadmap on the circular economy . . . . . . . . . . . . . . . . . . . . . . . . 12 Mari Pantsar, Director, SITRA Data – the new oil, Water – the New Gold! . . . . . . . . . . . . . . . . . . . . . . . . . 19 David Martin, Vice President, Marketing, Ecolab & Petri Ristola, Marketing Director, Nalco Water Predictive analytics for pulp and paper industry . . . . . . . . . . . . . . . . . . . . . 27 wastewater treatment Heikki Hannukainen, CEO, Toihan Closing nutrient and carbon loops – utilizing industrial side streams as recycled fertilizers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Eljas Jokinen, CEO, Soilfood Renewable biofuels as fast track in reducing transport emissions . . . . . . . . . . 42 Sari Mannonen, Vice President, UPM Biofuels Pulping with Deep Eutetic Solvents in the Pulp & Paper Industry . . . . . . . . . . 52 Heiner Grussenmeyer, Director, R&D, Stora Enso New developments in Sweden – Treesearch . . . . . . . . . . . . . . . . . . . . . . . . 73 Daniel Söderberg, Director, Treesearch, Wallenberg Wood Science Center The regulatory frame for the use of forest resources . . . . . . . . . . . . . . . . . . 85 in Europe – status quo and outlook Bernhard Wolfslehner, Head of OFFICE, EFI Central-East European Regional Office Climate benefits from forests and forestry in Fennoscandia . . . . . . . . . . . . . . 86 Johan Sonesson, Senior Researcher, Skogforsk Ways to increase biomass availability in Finland . . . . . . . . . . . . . . . . . . . . . 91 Antti Asikainen, Professor, Natural Resources Institute Finland Utility company as a producer of bio-oil and user of biomass based fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 Kasperi Karhapää, Bio-oil Business Manager, Forum Heat Finland and the Baltics

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The Borregaard Biorefinery: Past, Present and Future. . . . . . . . . . . . . . . . . . 106 Gisle Løhre Johansen, Senior Vice President,, R&D and Business Development, Borregaard Novel biorefinery concept for Northeast Finland . . . . . . . . . . . . . . . . . . . . . 122 Olli Dahl, Professor, Aalto University Sustainable and cost efficient bioethanol production from softwood biomass . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123 Tom Granström, Senior Scientist, St1 Biofuels Impact of digitalization for the forest industry . . . . . . . . . . . . . . . . . . . . . . . 131 Petri Vasara, Global Practice Head, Biofutures, Pöyry Customer view on the changing landscape in packaging. . . . . . . . . . . . . . . . 133 Kristina Enqvist, Packaging Development Director & Head of Procurement, Lumene Continuous Processing of Nanocellulose into Coatings . . . . . . . . . . . . . . . . 137 Martti Toivakka, Professor Åbo Akademi Phosphorylated cellulose nanofiber: Preparation and its applications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146 Yuichi Noguchi, Assistant Researcher, CNF R&D Center, Innovation Promotion Division, Oji Holding Corporation High-quality Man-Made Cellulose Fibers from Textile and Paper Wastes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158 Herbert Sixta, Professor, Aalto University Wood fibres making textiles more sustainable . . . . . . . . . . . . . . . . . . . . . . 169 Sirpa Välimaa, Product Manager, Dissolving Pulp, Stora Enso Division Biomaterials Pulp and Paper Industry – leader or lagger in grasping data-driven opportunities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170 Satu Kiiskinen, Executive Vicer President, Tieto Intelligence in maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173 Veijo Pitkäniemi, Director, Business Development & Operational Excellence, Efora Material Innovations from Cellulose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176 Åsa Ek, CEO, Cellutech Update on Bioplastics Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177 Jarmo Ropponen, Senior Scientist, VTT Sulapac® challenges plastic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178 Suvi Haimi, CEO and Co-Founder, Sulapac How lignin extraction and dissolving pulping are changing . . . . . . . . . . . . . . 186 Jussi Mäntyniemi, Vice President, Recovery Business, Valmet

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Maria Strømme, Professor of Nanotechnology, Uppsala University

The revolution has already started I am sure that nanotechnology will change our society, our industry and our lives totally. I am an optimist and convinced that we can use the new tools we have in our hands to create a sustainable future both for our planet and ourselves.

Nanotechnology provides us with totally new tools for structuring materials. We are no longer at the mercy of the properties that the nature has given to different materials. We don’t need to continue exploiting natural resources of the earth and leaving less and less of important materials for the next generations if we use the possibilities of nanotechnology properly.

Now we actually can begin to determinate precisely the properties of materials. We can stop using scarce resources and instead start to give renewable materials the properties we earlier have found only in limited material resources, such as rare earth metals, oil and gas. By doing that we can actually hand over to our children a planet that still contains interesting materials with which to build new things.

The increasing amount of non-biodegradable plastic waste in our oceans is a very big problem the earth is facing right now. A major part of that material comes from packaging.

With nanotechnology we have learnt to give cellulose a lot of new properties that mimic those of plastics, which means that cellulose may become the main component of sustainable packaging materials in the future.

Nanotechnology will disruptively change the way we live and start transforming our production of materials in sustainable ways. This revolution has already started.

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Äänekoski bioproduct mill – towards integrated biorefineries Ilkka Hämälä President and CEO, Metsä Group

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Forest industry’s largest investment in Europe • In 2015–2017, Metsä Group implemented a bioproduct mill project in Äänekoski, Finland • The nominal production capacity of 1.3 million tonnes will be reached in the summer of 2018 • Annual pulp production is 1.3 million tonnes • Use of wood is 6.5 million m³ annually • The project was completed on schedule and the budget of EUR 1.2 billion • Main markets for pulp are Europe and Asia

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The most modern pulp mill as a core • Raw materials and side streams utilised 100% • Wood refined into biomaterials, bioenergy, biochemicals and energy with great resource efficiency • The mill is not using fossil fuels • Criteria for planning the mill – High energy efficiency – Generating maximal amount of bioelectricity – Low emissions – Minimal water consumption – Future bioproducts 4

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Significant contribution for the Finnish economy • The annual income effect of more than EUR 0.5 billion • The value of Finnish exports increases by EUR 0.5 billion • The mill does not use any fossil fuels and produces 2.4 times the amount of electricity it consumes • The share of renewable energy in Finland will increase by over 2 percentage points • 1,500 new jobs in the whole value chain in Finland

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The bioproduct mill has wide-reaching impacts

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Bioproduct concept is progressing • Besides pulp, other bioproducts of the mill include – Tall oil and turpentine – Product gas and sulphuric acid for own use – Biogas – Electricity – Bark • New product paths actively explored – Lignin products – Textile fibres

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The share of other bioproducts is increasing Other bioproducts’ share of sales, % 100

10%

Share of various bioproducts during the mill’s first phase

20%

5%

80

15% Tall oil

1%

60

Producer gas

40 20

18%

48%

Bark Heat Electricity

0 Share of Metsä Fibre's sales in 2015 Pulp

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Turpentine

Share of bioproduct mill's sales

6% 7%

Other bioproducts

02/05/2018

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Sulphuric acid

Bioproduct concept: all side streams 100% utilised * Traditional bioproducts

New biofuels from bark, wood dust and energy wood

*

Accomplished

Product gas from bark and sludge for the mill’s own use Sulphuric acid and methanol from odorous gases for the mill’s own use New bioproducts from lignin Biogas from sludge for traffic fuel or the mill’s own use

*

Fertiliser and earth work material from dregs and ashes New textile fibres from pulp Biocomposites from pulp

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The industrial ecosystem of the bioproduct mill offers different companies a platform for innovating new bioproducts

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Potential products and partners in the future

Äänekoski industrial ecosystem Q2/2018 OPERATOR

PRODUCT

Metsä Forest

Industrial and energy wood

Metsä Fibre

Pulp Tall oil Turpentine Bioelectricity Steam District heat Bark fuel

Metsä Board

Folding boxboard

Äänevoima / Äänekosken Energia

Bioenergy

CP Kelco

Chemical made from pulp (CMC)

Specialty Minerals

Pigment made from CO2

OPERATOR

PRODUCT

OPERATOR

PRODUCT

Metsä Fibre

Product gas Sulphuric acid

Aqvacomp

Biocomposite

Metsä Wood

Veneer

EcoEnergy SF

CO2

EcoEnergy SF

Biogas (biomethane) Biofuel pellets

Operator TBA

Lignin product

AGA

Oxygen

Operator TBA

Textile fibre

Mantsinen

Wood yard services

VR Transport & M. Rauanheimo

Pulp logistics in Finland

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Thank you!

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23.5.2018

Finland’s Roadmap on the Circular Economy 30 May 2018 Business opportunities from circular economy Dr. Mari Pantsar, Director Sitra

A gift to Finland The Finnish Parliament established Sitra as a gift to celebrate the 50th anniversary of Finland's independence.

The public future-oriented organisation was tasked with developing the successful Finland of tomorrow.

The year was 1967.

Erkki Laitila, HS/Lehtikuva 1967

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23.5.2018

The World is full of waste, yet the demand for raw materials is increasing globally The global demand for raw materials will increase during the next 20 years

Why do we throw away about 80 % of consumer products and their materials?

On average, materials in Europe are used

only once.

10-15 % of building materials goes to waste during construction.

31 % of produced food goes to waste in value chain. In Finland it makes

300-400 million kilos per year.

The average occupancy rate of cars is about

8%

Farmland, over

+ 200 % Water

+ 137 %

Offices’ occupancy rate is about

40 %

Steel

+ 57 % Energy

+ 32 %

Sources: EEA, GSA, UN FAO, EU, McKinsey, Luke

Estimations about the business potential of the Circular Economy

Additional global economic output by 2030: $4.5 trillion1

Yearly business potential with only 5 actions in Finland by 2030: 2 €2-3 billion

Net benefit for Europe by 2030: $1.8 trillion3

By 2050: $25 trillion1

Savings for EU businesses: 4 € 600 billion

Sources: 1 Lacy & Rutqvist, 2015. Waste to Wealth. Accenture Strategy.

2 Sitra & McKinsey, 2015. The opportunities of a circular economy for Finland.

2 Sitra & Gaia Consulting, 2015. The economic value and opportunities of nutrient cycling for Finland.

3 Ellen MacArthur Foundation, 2015. Growth within: a circular economy vision for a competitive Europe.

4 European Commission, 2015. Circular economy package.

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Leading the cycle – Finnish roadmap to a circular economy 2016-2025

Government: Finland becomes a global leader in the circular economy

Globally unique road map

Added value potential of 3 billion euros for the economy of Finland

13-66 % reduction potential in greenhouse gas emissions of different sectors (Deloitte 2017)

“The number of additional jobs would exceed 75,000 in Finland…”

(Club of Rome)

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The life cycle continues in a new loop Use The product should be used for as long as possible, it must be serviced and repaired and parts changed when necessary.

Sustainable food system

2 Forest-based loops 3 Technical loops 4 Transport and logistics 5 Common action

Primary sector (raw materials sector) The raw materials are capital for the primary sector. Sustainable solutions are based on the wise use of raw materials.

Consumer Consumer demand creates a supply of sustainable products and commodities.

From company to company Companies will procure and require their subcontractors to provide parts that can be easily repaired – instead of single-use parts.

Retail Retailers will sell services instead of goods and inform customers about maintenance and repair services, environmental impacts, materials and further use in the final phase of the life cycle.

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Material processing Process planning will reduce the energy needed to refine huge amounts of raw materials. The use of side streams will be taken into consideration.

Distribution Transport co-ordinated between different sectors, renewable fuels and jointly owned transport equipment will be used in distribution.

Manufacturing industry Long-term products that can be repaired and maintained will be brought onto the market.

Materials will be separated at the end of the product’s life cycle.

Forest-based loops The forest industry's global competitiveness will increase with new commercial products, services, cooperation models and digital technology.

Key project: Demonstration of woodbased high-value composite materials for design packaging and furniture

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Biocomposites from industrial waste UPM Raflatac's RafCycle service turns waste into raw material for paper and biocomposites.

The service is a great demonstration of how an industrial producer working in a traditional field can seek new ways of reducing the amount of waste produced.

Wooden block buildings from cross-laminated solid wood elements The cross-laminated solid wood elements enable modern and sustainable solid wood construction.

Wooden block buildings bind carbon, and sustainable forest management takes care of a renewable source of raw material.

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The most interesting companies in the circular economy in Finland A list of companies to inspire economic change.

Five business models for the circular economy Product-life extension Products are used according to their original purpose for as long as possible or repaired and refurbished for multiple re-uses, thus reducing the need for purchasing and manufacturing new products.

Product as a service The customer pays for certain functions or performance and avoids the risks of ownership. The total costs of ownership remain with the service provider, with revenue being earned by means of, for example, a leasing or rental agreement.

Sharing platforms Digital-based platforms are used to promote the increased use of goods and resources and the extension of their life cycle, such as by renting, selling, sharing and re-use.

Renewability Renewable, recyclable and biodegradable materials, as well as the principles of eco-design, are preferred for products and their design. Fossil fuels are replaced by renewable energy.

Resource efficiency and recycling Technological development enhances resource efficiency in value chains, processes and products, and allows for more effective recycling. Side-streams are valuable raw materials for recycled products and materials.

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23.5.2018

Example companies on the list 3 Step IT IT equipment life-cycle management

Lassila & Tikanoja Re-use of pallets

EkoRent Shared electric vehicle service

Enevo Optimisation of waste collection

Shareit Blox Car Peer-to-peer car sharing service

Sharetribe Service for creating a marketplace website

Kotkamills Easily recyclable consumer paperboard cups

Grano and TouchPoint New uses for advertising banners in business gifts through company co-operation

Valtra Remanufacturing of gearboxes

LindstrĂśm Work uniforms as a service

RePack Reusable delivery packaging

Valtavalo LED lighting as a service

Swap.com Innovative online consignment and thrift store

Neste Renewable diesel made from waste and residues

Eko-Expert Recycled blow-in insulation made from surplus mineral wool

Ekokem Used plastic as a recycled raw material

Rec Alkaline Recycled nutrients from alkaline batteries

Remake Designer clothing collection made from used clothes

Kiitos!

Mari Pantsar p. 0503820755 mari.pantsar@sitra.fi @maripantsar sitra.fi | seuraavaerä.fi @sitrafund

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23.5.2018

Data – the New Oil, Water – the New Gold!

Mr. David Martin, Vice President Marketing, Ecolab Dr. Petri Ristola, Marketing Director, Nalco Water

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THE WORLD ECONOMIC FORUM HAS NAMED WATER THE BIGGEST CHALLENGE OF THE NEXT

10 YEARS DEMAND WILL SURPASS SUPPLY TODAY

AVAILABLE DEMAND WATER SUPPLY 2030 2

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1

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23.5.2018

WATER SCARCITY - A FUNCTION OF QUANTITY AND QUALITY Decreasing supplies of fresh water in the world’s largest and fastest growing regions

Diminishing water quality is impacting available fresh water supplies

Quantity + Quality = Scarcity = Business Risk

WATER IS UNDERVALUED PRICES INVERSE TO RISK ($ PER M3) Chengdu $0.34 $0.15 Amsterdam $2.78 $2.02 Chicago $1.01 $1.01

Barcelona $2.50 $0.20

Beijing $0.59 $0.22

Water is undervalued: Prices inverse to risk ($ per m3) Los Angeles $1.77 $1.50 Dallas $0.80 $1.60

Monterrey $0.77 n/a

Incoming water price per m3 Outgoing wastewater price per m3

Istanbul $1.82 $0.84

Seoul $0.55 $0.27

Addis Ababa $0.14 $0.03 Mumbai $0.18 $0.05

Rio de Janeiro $0.89 $0.89

Johannesburg $0.52 $0.85

Sao Paulo $0.80 $0.80

Phnom Penh $0.16 $0.02

Shanghai $0.31 $0.25

Sydney $2.21 $3.00

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Sources: WRI Aqueduct, GWI 2015

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LEVERAGING DATA TO INFORM BUSINESS DECISIONS APPLICATION AND ANALYTICS

Incoming water risks: monetary value of the impacts of incoming water use on human health and ecosystems and the future costs of incoming water treatment

INFORMING BUSINESS DECISIONS Incorporate a risk-adjusted cost of water and potential revenue loss into analysis

Actionable information

Outgoing water risk: monetary value of the impacts of outgoing water pollution on human health and ecosystems and the future costs of water treatment

Make the case for proactive water management strategies Identify operations/locations at greatest risk Monetize rate of return for water management improvement projects Select where and how to increase production or meet demand in new regions

Potential revenue at risk: monetary value of the impacts of water availability based on water required to do business

Join us at our at our Pop-up Water University Today @4pm and Tomorrow @2pm

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NALCO WATER – WHAT WE DO

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DIGITAL LEADERSHIP DRIVES COMPETITIVNESS

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NALCO WATER ENVISION



System dashboards with drill-down details



Advanced graphing tools



Corporate dashboards with drill-down details

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SYSTEM ASSURANCE CENTER SUPER CRITICAL ALARM

SAC

ALARM

FIELD

TOOLBOX

CUSTOMER

ENVISION

Join us for a live connection: May 30 @ 1:30 pm

Saving water at Microsoft’s San Antonio, Texas, Data Center SITUATION Baseline Water Stress

• More than 1 million servers globally • More than 100 data centers in over 40 countries

Microsoft’s data center in San Antonio located in water quantity and quality constrained region

SOLUTION

RESULTS

Nalco’s 3D TRASAR™ Technology was implemented to provide:

Water Risk Monetizer showed risk adjusted price 11x greater than current water bill

• Real-time monitoring to detect problems before occurring • Automatically manage incoming water quality while optimizing performance, water use & costs • Protection against water quality variability

The Water Risk Monetizer was leveraged to: • •

$140,000 in annual water cost savings

Model the full value of water Support business case for water stewardship

60 million gallons of potable water avoided per year 10

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23.5.2018

BEWARE – WHAT LOOKS AMPLE, MAY NOT BE! PAPER INDUSTRY IMPLICATIONS

Let’s celebrate water! …three specific goals related to water: the volume of wastewater will be reduced by 30 percent, the effluent load (COD) reduced by 40 percent and all the nutrients used at effluent treatment will be from recycled resources by 2030.

Paper production is a process that requires the use of huge quantities of one of our planet’s most precious resources: water.

Given the role that protecting water resources has in guaranteeing not only life in general but also economic activity, Sofidel has implemented policies for rationalizing water consumption and reusing waste water.

Pulp & Paper – the first water positive industry ?

MINIMIZING FRESH WATER - CHALLENGES COD level increase, Increased conductivity, Unstable process pH or local acidification, Increased volatile fatty acids (VFAs), Increased calcium hardness, Increased scaling and deposits, Zeta potential of the fiber stock close to zero, Bad odour in mill and finished paper, Secondary sticky accumulation, Accumulation of dissolved and colloidal substances DCS in the process waters, higher anionic trash…

Process additives do not perform as well  Higher consumption of process additives, Decreased process stability, Increased process costs, Impact on product quality, Impact on overall paper machine efficiency…

Source: Wichman, Schyns – IMPS 2018

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23.5.2018

INTERGRATED APPROACH – DS SMITH ASCHAFFENBURG

Key Results: • pH in whole system close to 7 • Reduction of VFA production on PM • Keeping effluent VFA/COD ratio stable at 35% • Reduction in starch consumption at size press by 20% • Hardness level in PM circuits at about 50-55 DH or below 400 mg/l of Ca2+ ions • Reduction of conductivity from 3500-4000 to 2500 µSi range • 25% reduction in COD on PM.

Source: Wichmann, Schyns; 27th International Munich Paper Symposium, Progress in Board and Paper Technology, 7-9 March 2018

MAP – qPCR based technology: ADVANCED ANALYTICS STEPS IN TO DEMONSTRATE THE LINK BETWEEN MICROORGANISMS, SHEET DEFECTS AND MACHINE DEPOSITS

Continuous and Reliable Performance

Unmatched Process Efficiency and Product Consistency System Diagnosis

Effective Treatment

Providing Insights on…

DNA-based information about the population of microorganisms Identify accurately causes and consequences of microbial problems in the system

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EXCELLENT RUNNABILITY WITH LOW SPORE COUNTS TODAY: We have an accurate understanding of causes and consequences Source: Paperi ja Puu 3/2018 on Metsä Äänekoski

Program with two complementary oxidizing biocides, Clean machine AND Low spore counts!

More info: Live connection to Nalco Water’s R&D team in US Visit our Pop-up Water University today @ 3pm 15

DATA IS THE NEW OIL – WATER THE NEW GOLD .

Water: precious and essential

Data & Analytics

Improving paper competitiveness and growth 16

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BUSINESS CASE: PREDICTIVE ANALYTICS FOR PULP AND PAPER INDUSTRY WASTEWATER TREATMENT Heikki Hannukainen, CEO, Toihan

Modern pulp and paper mill wastewater treatment plants, which usually include activated sludge process, are at least moderately well instrumented and equipped with digital control systems. Vast amounts of process data are collected and stored to mill archives. However, without the right tools to translate collected data to meaningful insights, only a small fraction of collected data can be used as such in daily activated sludge process operation. Activated sludge process is typically adjusted based on laboratory and onsite measurements from wastewater treatment plant. From an operational point of view, the challenge in operating activated sludge process comes with long retention times and slowly changing process, which makes daily process variations and disturbances difficult to observe before they affect the final effluent quality. Often these adverse effects are seen as suspended solids overflow from secondary clarifiers. At that time the input for process disturbance may have affected the process already for several days. Since these disturbances may cause 5-20 % of COD and up to 60 % of phosphorous annual loads to waterways from pulp and paper mills, one way to meet with the tightening environmental regulations set for final effluent quality would be to improve activated sludge process stability. Successful activated sludge process operation is as much about preventing process upsets as it is about maintaining a stable process. Potential option to increase process awareness is to apply sophisticated data analytics to support process monitoring and adjustments.

Utilization of predictive analytics in activated sludge process control is an example of algorithmic approach that utilizes mill process data archives, real-time data and data-driven soft sensors to determine an event before it has occurred. With predictive analytics, the mindset in activated sludge process control is switched from reactive to proactive. When the emerging upsets are observed at their early stages, corrective measures can be implemented before final effluent quality is compromised. Also, the recovery times from process disturbances are reduced, when root causes are identified quickly. The applicability of Toihan’s predictive algorithms to improve activated sludge process awareness and performance was tested at a Finnish ECF kraft pulp mill. Mill personnel controlled activated sludge process with remote support by Toihan, who provided recommendations for optimal chemical dosing, return sludge flow and biosludge withdrawal according to predictive analytics. The results gained during the 4 months trial period were encouraging. The reduction improvements measured from final effluent quality, when compared to reference effluent loads from previous years, were: COD 20 %, phosphorus 12 %, nitrogen 31 % and AOX 24 %.

Predictive analytics provides a tool to understand and control the cumulative nature of activated sludge process. However, the effective use of predictive analytics requires a comprehensive process knowledge for user to be able to interpret past events and trends that set the basis for future predictions. Because predictive algorithms provide a set of predicted outcomes, human interaction is required to translate produced information to effective process interventions. Toihan has built a supervisory monitoring and control support

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service concept, PAULA-WWTP®, that enables Toihan experts to provide remote support for mill operators.

Acronym PAULA stands for “Predictive analytics for user level assistance”. Once the data link between PAULAWWTP® and mill process data is established, the service elements can easily be added or removed depending on the current situation in activated sludge process. The service concept is built on modern cloud-based data architecture, which makes it adaptable to existing data interfaces in pulp and paper mills without geographical restrictions.

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Closing carbon and nutrient loops Utilizing industrial side streams as recycled fertilizers 30.5.2018, Eljas Jokinen

Eljas Jokinen PulpPaper 2018 30.05.2018

Soil food web

Eljas Jokinen PulpPaper 2018 30.05.2018

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Soil is essential

Eljas Jokinen PulpPaper 2018 30.05.2018

From industry to the fields 21 employees Growing rapidly, chasing 6 meur turnover for 2018 (2017 3,7meur) More than 30 industrial customers working with our utilization service model Products processed from sidestreams are delivered more than than 1 % of Finnish fields.

Proven results from the farms Yields of organic winter wheat have more than doubled in three years.

Average yield in 2017 was 4600 kg and revenue 1900 â‚Ź/ha (average 480 â‚Ź in Finland).

Fertilizer costs have not increased

Eljas Jokinen PulpPaper 2018 30.05.2018

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Full range for the farmers 230 000 t/a 110 000 t/a soil improvement fertilizer slurry from fibres from the biogas and forest industry ethanol industry

100 000 t/a 15 000 t/a supplementa amendments ry and to neutralize micronutrien soil and ts from improve process structure from industry the forest industry

Eljas Jokinen PulpPaper 2018 30.05.2018

R&D with a great impact

Eljas Jokinen PulpPaper 2018 30.05.2018

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Soilfood: multi beneficial circular economy Inputs of food and farming: Fertilizers, soil improvers, neutralizers, stimulants Knowledge, advisory WATER COURSES Better soil, less emissions

FARMER Cost-effective inputs Higher productivity and profitability

CLIMATE CHANGE Soils as a carbon sink

INDUSTRY Easy and economical carbon-wise solution Sustainability 100%

BIODIVERSITY Soil food web Crop rotation

ECONOMY Self-sufficiency Current account Eljas Jokinen PulpPaper 2018 30.05.2018

Current food system produces food to waste

50 %

10 %

Yli 1 mrd. t

9%

! " (

# (

(

(

Source: $ & (& # & (& & (& & (& & (& ! " ( ( (' & # % ( ! ! % " ( +.-& ,*+/( ( +0*),**(

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Eljas Jokinen PulpPaper 2018 30.05.2018

Fertilizer carpets in Finland #

!

!

Producing 1 kg of inorganic nitrogen with Haber boch consumes energy equal to amount of 1,09 l of diesel includes

..and world wide The population growth from 1900 to 1.6 billion in 2000 billion to 6 billion would not have been possible without ammonia synthesis (Haber Bosch) In 2004, a total of 109 million tonnes of ammonia were produced in the world, over 80% of which is used for fertilization Eljas Jokinen PulpPaper 2018 30.05.2018

Shifting the paradigm #

!

!

! %

Eljas Jokinen PulpPaper 2018 30.05.2018

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For the industry we offer smart, cost efficient and ecological utilization for sidestreams Full service: Complete end-use of side-streams Strong ethical framework �Zero Risk� guarantee Positive reputation benefits

Eljas Jokinen PulpPaper 2018 30.05.2018

Our p partners and friends

Eljas Jokinen PulpPaper 2018 30.05.2018

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THE EXPANSION OF CO OPERATION, BY THOSE WHO HAVE A CHANCE TO IT

Source: Soilfood’s customer survey made by Innolink 4-5/2018

Eljas Jokinen PulpPaper 2018 30.05.2018

For us regenerativity reports are equal with income statements And this data we also produce to our partners.

Eljas Jokinen PulpPaper 2018 30.05.2018

35

Eljas Jokinen PulpPaper 2018 30.05.2018

Eljas El E llja jja as Jokinen Joki Jo Joki kine en PulpPaper Pu P ulp lpP Pa ap pe er 2018 20 2 01 18 8 30.05.2018 30 3 0 0.0 .0 05.

5.2 20 01 18 8

36

Limiting factors Lack

of holistic goal in the society

Eljas Jokinen PulpPaper 2018 30.05.2018

Limiting factors Lack

of holistic goal in the society

Unsynchronized legislation and guidance

Eljas Jokinen PulpPaper 2018 30.05.2018

37

Limiting factors Lack

of holistic goal in the society

Unsynchronized legislation and guidance Knowledge of the soil health among farmers and advisors

Eljas Jokinen PulpPaper 2018 30.05.2018

Limiting factors Lack

of holistic goal in the society

Unsynchronized legislation and guidance Knowledge of the soil health among farmers and advisors Long-term experiments on soil health

Eljas Jokinen PulpPaper 2018 30.05.2018

38

Limiting factors Lack

of holistic goal in the society

Unsynchronized legislation and guidance Knowledge of the soil health among farmers and advisors Long-term experiments on soil health Incentives for the industry and farmers to sequestrate carbon Eljas Jokinen PulpPaper 2018 30.05.2018

Fiber sludge products

Eljas Jokinen PulpPaper 2018 30.05.2018

39

Emission reduction 77%

Eljas Jokinen PulpPaper 2018 30.05.2018

Questions?

Eljas Jokinen PulpPaper 2018 30.05.2018

40

! ! (( ! ! ! % ( Kiitos!

Restoring carbon to the soil is only way to turn climate change Etunimi Sukunimi

+358XX XXX XXXX

etunimi.sukunimi@soilfood.fi

@SoilfoodOy

www.soilfood.fi

41

Eljas Jokinen PulpPaper 2018 30.05.2018

23.5.2018

UPM BIOFUELS

Renewable fuels as fast track in reducing transport emissions @SariMannonen @UPM_Biofuels PulPaper 2018, 30.5.2018

Roots

run deep

@SariMannonen @UPM_Biofuels

| © UPM

© UPM

1

42

23.5.2018

The wood based product market is an economic mechanism that mitigates climate change, and sustains forests and forest carbon sink effect when done in a responsible way

@SariMannonen @UPM_Biofuels 3 | © UPM

EVOLUTION OF WOOD USAGE

Biofuels and biochemicals are natural evolutionary steps in wood based value creation MOLECULAR LEVEL

FIBRE PRODUCTS

SAWN GOODS

INCENERATION @SariMannonen @UPM_Biofuels

4 | © UPM

© UPM

2

43

23.5.2018

THE CHALLENGE – CLIMATE CHANGE

@SariMannonen @UPM_Biofuels

Climate change is driving search for greenhouse gas (GHG) savings Road transport share of total GHG is increasing

Road transport emissions moving wrong way

Total GHG reduction per year in EU since 1990

+0.7% GHG increase in road transport sector per year in EU since 1990

-1.2%

13%

19%

22%

1990

2005

2015

Source: EEA

6 | © @UPM_Biofuels UPM @SariMannonen

© UPM

3

44

23.5.2018

Biofuels are needed in road transport energy mix to meet EU’s GHG-reduction targets

| © UPM

@SariMannonen @UPM_Biofuels

UPM LAPPEENRANTA BIOREFINERY

@SariMannonen @UPM_Biofuels

© UPM

4

45

23.5.2018

UPM Kaukas, Lappeenranta, Finland

UPM Kaukas Mill Integrate, The world’s most versatile forest industry integrate Lappeenranta

9 | © UPM @SariMannonen @UPM_Biofuels

UPM Lappeenranta Biorefinery The world’s first biorefinery producing wood-based renewable diesel and naphtha

179M€ UPM investment

100,000 250

t/a production capacity

Direct and indirect employees

200 UPM patents and applications

| © UPM @SariMannonen @UPM_Biofuels

© UPM

5

46

23.5.2018

Raw material: Crude Tall Oil (CTO) – a residue of pulp making process PRIMARY PRODUCT Pulp for paper making

50%

PULPING PROCESS

2% RESIDUE Crude tall oil

48% BIOENERGY Crude tall oil must be removed from the chemical cycle to secure pulping process functionality

11 | © UPM

@SariMannonen @UPM_Biofuels

UPM BioVerno production process

@SariMannonen @UPM_Biofuels

© UPM

6

47

23.5.2018

UPM Lappeenranta biorefinery products – all streams add value Bio-based aroma chemical for fragrance industry

Renewable fuel or applications in Chemical industry

Reducing agent in pulp and chemical industry

Turpentine

Pitch

Sodium bisulphate

Renewable gasoline component in road transport Feedstock for bioplastics production or biochemical use

Renewable drop-in diesel for road and marine use

UPM BioVerno diesel

UPM BioVerno naphtha

Renewable wood-based chemicals

Biorefinery processes

Raw materials from UPM’s own pulp production: Crude tall oil

@SariMannonen @UPM_Biofuels

| © UPM

UPM BioVerno brand promise Sustainable forestry & circular economy

Significantly less local emissions

No direct or indirect land use change

80% less CO2 emissions

No food/feed competition Drop-in biofuel with high energy content

100%

Certified new value chain

14 | ©@UPM_Biofuels UPM @SariMannonen

© UPM

7

48

23.5.2018

UPM BioVerno naphtha in bioplastics - Case Dow & Elopak

UPM BioVerno naphtha production

Dow’s naphtha conversion to plastic PE

Elopak’s wood-based carton

•

100% renewable and recyclable wood-based carton

•

Every tonne of UPM´s wood-based naphtha reduces one tonne of fossil raw materials

•

Entire value chain ISCC Plus certified

15 | © UPM

@SariMannonen @UPM_Biofuels

UPM IS STUDYING OPPORTUNITIES FOR GROWTH IN BIOFUELS

@SariMannonen @UPM_Biofuels

© UPM

8

49

23.5.2018

UPM studies the feasibility of new Biorefinery in Kotka, Finland The proposed second UPM biorefinery in a nutshell: •

500,000 tonnes of advanced biofuels

•

Several new feedstocks, e.g. solid wood biomass and Brassica carinata

•

Environmental impact assessment (EIA) started

•

Biofuels regulation decisions will impact the future investment consideration

@SariMannonen @UPM_Biofuels

| © UPM

Driving

cleaner traffic

| © UPM

@SariMannonen @UPM_Biofuels

© UPM

9

50

23.5.2018

© UPM

10

51

Deep Eutectic Solvents in the pulp and paper industry WP2 Speaker

Date Event

The dream Convert any lignocellulosic raw material to Fibers, Lignin, Chemicals

The DES pulp mill

approach

80% CO2 emission reduction by application of natural

Deep Eutectic Solvents (DESs)

52

About Deep Eutectic Solvents (DESs) DES: mixture of a hydrogen bond donor (HBD) and a hydrogen bond acceptor (HBA) Formation of a eutectic

Visual representation of choline chloride / urea mixtures as a function of composition.

Freezing point of choline chloride / urea mixtures as a function of composition.

A.P. Abbott G. Capper, D.L. Davies, R.K. Rasheed , and Vasuki Tambyrajah, Chem. Comm., 2003, 70-71

Mimicking Nature Hypothesis: DESs are used by plants to operate even during drought or frost periods.

Composed of natural products

Chemical characteristics

Physical characteristics

Amides

Biodegradable

Low vapour pressure

Sugars

Miscible with H2O

Low flammability

Non toxic

Non-volatile

Alcohols (amino) acids

DESs are a sustainable and cheap alternative to far more cumbersome solvents used today.

53

Scope Recovered paper processing

DES pulping

• DES dissolving lignin

• Dissolving cellulose • Dissolving ink + other contaminants ontaminants

suppliers research partners coordinator

Our aim: 80% CO2 emission reduction Traditional chemical pulp production

Traditional fossil chemicals production

DES pulp and biobased chemicals production

(ref. benzene, xylene, toluene)

2 ton wood

2 ton wood

Fossil feedstock

renewable energy

Green energy

1 ton cellulose

1 ton chemicals

1 ton 1 ton cellulose bio-chemicals

Total energy: 1,2 MW, CO2: 0,27 ton

Total energy: 15 MWh, CO2: 2,4 ton

54

2

The DES initiative

ISPT DES Cluster started

CEPI TWO TEAM

High level STEERING COMMITTEE

2013 2014

PROVIDES EU PROJECT

2015

INDUSTRIAL IMPLEMENTATION AND IMPACT

2018

Pilot 2020

55

Demo 2025

2030

DES screening

DESs screening Superscreening DESs

56

Until recently….

Only hydrophilic DESs

•

The constituents of the currently produced DESs all promote the preparation of hydrophilic DESs

• This is due to the high amount of hydrogen bonding donating and hydrogen bonding accepting groups

Hydrophobic DESs

Developed to facilitate component extraction from watery mixtures like pulp…

57

Hydrophobic DES can extract VFAs Extraction of volatile fatty acids 100

Acetic acid

Propionic acid

DecA:N8881-Br

DecA:N8888-Br

Butyric acid

Extraction efficiency [%]

80

60

40

20

0 DecA:N8881-Cl

DecA:N7777-Cl

DecA:N8888-Cl

TOA

DESs

D.J.G.P. van Osch, L.F. Zubeir, A. van den Bruinhorst, M.A. Rocha, and M.C. Kroon, Green Chem., 2015, 17, 4518–4521

Hydrophobic DES can remove metal ions

DES + Co2+

DES + Fe2+

water

water

58

DES + Co2+/Ni2+/Zn2+/

Cu2+/Na+/K+/Li+ water

DES fundamentals

DES Phase behaviour • fundamental research needed to predict DES behaviour • So far most applicable DES-systems are ‘lucky shots’.

• DES two-phase systems need to be well understood • Especially knowledge on stability of the DES liquid window is key in designing applications

59

Phase behaviour Ideal description Liquid Regime

Temperature

Real phase boundary

Solid A + Liquid

Liquid + Solid S B

Solid Regime

100% HBD

100% HBA Composition

How non-ideal are DESs? 200 140

180

120

160 140

100

T (°C)

T (°C)

120 100

80

60

80 60

40

40 20

20 0

0 0

0,2

0,4

0,6

0,8

1

0

x Tetrapentylammonium Bromide

HBD ideal FPD

HBA ideal FPD

0,2

0,4

0,6

x Tetrapentylammonium Bromide

Tmelt measured

60

0,8

1

DES delignification

DES Lignin solubility Solvent SCC XCC OCC GCC OG GG OEG SEG GEG AEG

Lignin solubility [ w%] 15% 14% 2% 7% 32% 30% 35% 33% 37% 31%

• Many DESs can dissolve lignin • However: Lignin solubility does not imply delignification potential • screening to select DESs able to cleave β-O-4 bonds

61

Acidic cleavage of ether linkages g guaiacylglycerolβ-guaiacyl ether β-O-4 model compound β

LA:ChCl Acidic cleavage of ether linkages

DES fractionation is faster than with only acid

62

Recovered paper processing with Deep Eutectic Solvents

Objective DES treatment of paper for recycling: by dissolving contaminants to get clean fibres and increased added value • • • •

Cellulose Stickies Inks starch

63

Results DES decontamination of paper for recycling is difficult • No natural DESs that can sufficiently dissolve cellulose • Other starch recovery technologies more economically feasible • Ink: DESs can significantly reduce speck contamination, though brightness is not increased • Stickies: some DESs can change sticky behaviour, though removal was not achieved.

DES can isolate VFA’s, metal ions and lignin from recovered paper • though further research on this was not within the scope of the project

DES recovery

64

DES recovery needed for reuse

Research aim: towards a sustainable and economical recovery process

DES and lignin recovery processes

Lignin precipitation with water as anti-solvent

Liquid-Liquid extraction with biobased solvent with low 'Hvap

Liquid-liquid extraction: 80% less energy 65

The application in papermaking

Business case analysis - Pöyry DES compared to kraft • Similar energy consumption and operational costs • Higher specific investment costs (per ton) due to smaller mills reduce the local environmental impact: logistic savings, regional supply

• Advantages should come from: -

Lignin / hemicellulose valorisation Next generation DESs Optimised cooking process Further developed recovery process

66

BREAK DOWN OF COSTS

Benchmark BHKP mill

DES Case 1

500 000 – 1 000 000 ADt/a, E. Globulus

EUR/ADt 2017/Q1

50 000 ADt/a, E. Globulus

167

174

398 66 Drawbacks of smaller scale

240

15

40 30 38

Benefits of economies of scale

23

17

154

10

77

126

35

Others* Personnel Energy Chemicals Wood

Total

Total

Ethanol revenue

Wood

DES Solvent Other Natural make-up make-up chemicals gas

Power Personnel Others*

*Including other variable costs, maintenance, and mill overhead. Note: water treatment is excluded from the DES cost analysis.

COPYRIGHT©PÖYRY

DES BUSINESS CASE: COST MODELLING 52X289966 | NOVEMBER 2017

Achievements (1) • • • • •

extreme internal bond good tensile strength low tear strength good shaped and straight fibres normal drainage

67

1st generation DES Eucalyptus

31

Achievements (2)

Achievements (3)

68

Achievements (4) Proof of principle DES and lignin recovery

DES lignin

DES Pilot block diagram

69

11

How to stay connected?

Website www.providespaper.eu

70

Summarising Reducing the CO2 footprint is crucial • we need to act fast to reach our goals on time • a common approach as set by the CEPI TTP is essential to affect the whole industry The DES project achieved promising results • a unique consortium (21 large industrial partners cooperating!)

• well organized via the ISPT organization (unburden of administration and legal matters) Continue this unique initiative!

• as industry together lead this initiative and ensure sector-wide implementation in 2030

Participants

71

Acknowledgement

This project has received funding from the Bio-Based Industries Joint Undertaking under the European Union’s Horizon 2020 research and innovation programme under grant agreement No 668970.

72

THE NATIONAL PLATFORM FOR NEW MATERIALS AND SPECIALITY CHEMICALS FROM FOREST RAW MATERIAL

MATERIAL FROM SWEDEN’S MOST IMPORTANT ASSET:

THE FOREST A CARBON DIOXIDE NEUTRAL AND RENEWABLE CONTRIBUTION TO THE CLIMATE GOAL

73

2014.12.08 WWSC Seminar at KTH: the first step towards TREESEARCH

$$! % ) % #! $ $% % !" " # &$ & !$ ! # $ $ % " % $

, $$! % * #! * % $$ * ! ! # $ # $& % $%#! & !$ %$

*$%#- % $$ % # $ ! ! "# $$ % # % % % $&" # " %!#$ %% # $

% # $" # % +* %#! #!$ !" ! ! # % & !$

! # $ # ! * % * * !

$!' % #$% ! & !$ # %* $%#& %&# "#!" #% $ # % ! $ " % % $ # '

% # * $& % # # % # % %( % $!%#!" ! $ $ ! ! & !$ # " !)

74

How to move

into the future Photo: Tumba Bruksmuseum

Photo: KTH

Attract the young talents Increased cooperation academia and industry More research

75

MATERIAL FROM SWEDEN’S MOST IMPORTANT ASSET:

THE FOREST A CARBON DIOXIDE NEUTRAL AND RENEWABLE CONTRIBUTION TO THE CLIMATE GOAL

RESEARCH: FOUR THEMATIC RESEARCH AREAS

1.

Wood and wood components – structure and modification

2.

Biorefinery for materials and chemical systems

3.

Material forming of solid and liquid material systems

4.

New materials – material design and properties

76

EDUCATION

a world world-leading leading a research environment environm ment that contributes to the development of skills and knowledge that enables future innovation in the field of new materials from the forest

RESEARCHUR RE INFRASTRUCTURE

RESEARCH

COOPERATION

IMPACT:

CAREER OPPORTUNITIES FOR AT LEAST

250

YOUNG RESEARCHERS

77

IMPACT:

INCREASED KNOWLEDGE AND SKILLS IN ACADEMIA AND INDUSTRY AND A NEW GENERATION OF ENGINEERS

IMPACT:

PIONEERING RESEARCH TO BE TRANSLATED INTO HIGH TECH PRODUCTS BY THE INDUSTRY

Cellufoam TM by Cellutech

78

IMPACT:

ADVANCED ANALYSIS characterisation of material properties and process steps

A NATIONAL PLATFORM IS MADE POSSIBLE BY COOPERATION BETWEEN ACADEMIA AND INDUSTRY WITH FINANCIAL SUPPORT BY THE GOVERNMENT AND PRIVATE FUNDATIONS

79

Wood and wood components – structure and modification

1

Biorefinery for materials and chemical systems

Material forming of solid and liquid material systems

2

3

New materials – material design and properties

4

Project A

Project B

Project C

Project Proj je ect D

Project j tE Project

Education

P roject j tF Project

Cooperation

Research infrastructure

PARTICIPATING IN TREESEARCH: MULTIPLE OPTIONS FOR INDUSTRY AND ACADEMY

INDUSTRIAL CORE PARTNER

ACADEMIC CORE PARTNER

ASSOCIATED PARTNER

ASSOCIATED RESEARCHER

SME PARTNER

80

(

# ! * ' # !% $ # !% " # !%

(

" ! % * ! ' " ' " & ! ! ' !

FINANCING OF TREESEARCH

WWSC 2.0

81

-

)!( ' %! # &, &$ $"% ( # %! ( $&" # $" '' " ( & !' # %&$ '' #

-

# #( &# ( $# ! %$' ( $# # $$ # # # # & # $& # + " ( & !'

-

'( &( ( &$) # # ( ( * &$" ( #)( ! !! # & $)# ( $# . $#(& )( ' + ( .

-

!! $#( #) + ( ($( ! #* '(" #( $ ,

# )'(&, ( &$) & ' & # )# * &' ( '

KAW – 400 MSEK to WWSC 2.0 Industry 125 MSEK to Treesearch -2028 (where of 100 MSEK to WWSC 2.0)

Universities (KTH, Chalmers and LiU) – 220 MSEK to WWSC 2.0 KAW – 100 MSEK to ForMAX

82

VINNOVA/BioInnovation 70 MSEK to Treesearch -2021

ADVANCED ANALYSIS characterisation of material properties and process steps

#

$ $ $

#

#

$ $ $ $

% % $ $ $ $ $ $

!

#

!

$ $ $

! "

83

TIMELINE

2019

2018

2017

Interim period

Build-up period

Full–scale operations

Management, Consortium agreements Affiliation of additional partners

84

Title: The regulatory frame for the use of forest resources in Europe – status quo and outlook Abstract: Forest resources in Europe are in the focus of different policy targets and regulatory instruments.

These include inter alia the management of forests and use of wood conservation and nature protection aspects as well as climate change adaptation and mitigation. In this regulatory environment, consistency of policies addressing forest resources are not always coherent. This trend might be even more relevant in a rapidly changing world with new, emerging issues to be addressed in the policy arena. The presentation will give an overview on the latest state of knowledge on governance of forest resources and on the future of forest resources in Europe and the use of biomass in particular. It will be addressed which synergies and trade-offs can be seen in a policy field that has no explicit policy framework on EU level, but is handled on a playground of a plethora of different competences. This includes policies targeting forest management (such as wood processing) as well as those governing other forest-based value chains (such as energy, paper and pulp production). The policy framework also relates to the broader societal, economic and ecological environment in which these value chains are situated. A recent review of EU policy documents demonstrated that as many as 570 policy documents have a potential impact on the EU forest-based bioeconomy. Relevant policies cover industrial, environmental, social and international trade issues. The impacts of such an incoherence will substantially influence the potential use of wood and forest biomass in the future.

Figure: The EU’s main policy priorities and EU forest-related policies (Wolfslehner et al., 2016) Dr. Bernhard Wolfslehner Dr. Bernhard Wolfslehner, Head of Office, EFI Central-East European Regional Office, has 18 years of research experience in sustainable forest management, sustainability assessment, and forest policy and governance. He has rich experience as project leader, leader of international working groups and senior expert and consultant in sustainability research. He is also active in policy support in the fields of forestry, bioeconomy and natural resources. He is engaged as expert for the FOREST EUROPE process with a focus on the further development of sustainability criteria and indicators and as chair of the Advisory Group on the preparation of the report State of Europe's Forests 2020.

85

23.5.2018

Climate benefits from forests and forestry in Fennoscandia Helsinki 2018-05-30

Johan Sonesson Senior Researcher

Basic principle

1 86

23.5.2018

Carbon balance benefits from forests  Store carbon in trees and soil  Store carbon in products  Substitute fossil based energy and products

futureforests.se

Movie

2 87

23.5.2018

Complexity and cascading

Source: Sveaskog

Substitution effects  Substitution value differs between products  All wood based products are not substitution  Increased consumption is not substitution

3 88

23.5.2018

Climate benefit from Fennoscandian forests in 50 years 200 160 140 120 100

Avoided emissons, substitution

80 60 40 20

Carbon storage change

0

1965

1970

1975

1980

1985

1990

1995

2000

2005

Accumulated “climate benefit” after 1965 In the Fennoscandian countries

1600

Substitution

FIN

1600

1200

1200

800

800

800

400

400

400

0

C storage change 0

1965 1969 1973 1977 1981 1985 1989 1993 1997 2001 2005 2009 2013

1200

SWE

0

NOR

1965 1969 1973 1977 1981 1985 1989 1993 1997 2001 2005 2009 2013

1600

1965 1969 1973 1977 1981 1985 1989 1993 1997 2001 2005 2009 2013

Million tons CO2‐equivalents

Million tons CO2‐equivalents

180

4 89

23.5.2018

Why the disagreement about the benefits of bioenergy?  Its different assumptions about time and space  Time  If the trees are grown first and harvested when they have grown up there is no carbon debt – first the CO2 is sequestered and then it is released again – bioenergy is better than fossil energy  If trees are harvested first and then new trees are grown there is a temporary carbon debt – first CO2 is released and then sequestered again– in the short time fossil energy is better than bioenergy

Space  In a managed forest landscape there is trees and stands in all age classes. Growth and harvest is simultanious and as long as growth is equal or larger than harvest there is no carbon debt.

Bioenergy is better than fossil energy.

Conclusions • Short and long time climate benefit may differ • The climate benefit differs if it is carbon storage or substitution • Regardless of the previous – for a forest to increase the climate benefit compared to the present it has to increase the growth rate.

5 90

5/24/2018

Ways to increase biomass availability in Finland Antti Asikainen, professor, Luke Managing forest biomass usage and climate change 30. May 2018, Pulp & Paper 2018

@FORBIOproject

1 © SUOMEN AKATEMIA

Challenges of biomass sourcing

IN THE YEAR 2030, IN FINLAND Annual cut has reached 80Mm³/a (today 73 Mm³/a)

Mean annual temperature has risen by 2oC

Winter of Salpausselkä in 1980’s is approaching Kainuu

© Natural Resources Institute Finland

91

1

5/24/2018

New investments/investments plans increasing wood demand In operation, under construction or decision made

Increase of Wood demand, Mm3/a

Decision not made

Increase of Wood demand, Mm3/a

Š Natural Resources Institute Finland

New investments have impacts on sourcing areas and transport distances

Anttila ym. 2018, Luke

92

2

5/24/2018

Scenarios for wood production and forest management alternatives prof. Jari Hynynen, Luke

Volume and growth of Finnish forests Volume of growing stock Stem wood volume 2 350 mill. m3 Forest land - no restrictions for forestry use

10 % 10 %

Forest land, restricted forestry use Forest land outside commercial forestry

80 %

Annual growth Total annual growth 105,4 mill. m3 5% Forest land - no restrictions for forestry use

10 %

Forest land, restricted forestry use Forest land outside commercial forestry

85 %

6

Sustainable growth from bioforest industry 8.11.2017

Š Luonnonvarakeskus

93

3

5/24/2018

Intensive forest management practices to increase sustainable forest biomass production More growth

More drain - Young stand management

- Tree breeding

- Commercial thinnings

- Intensive regeneration - Tree species

- Rotation length - Short rotation forestry

- Site preparation - Fertilization - Ditch maintenance

7

Sustainable growth from bioforest industry 8.11.2017

© Luonnonvarakeskus

Scenarios 1.

2.

3.

4.

• •

BAU: annual removals and intensity of forest management as today BAU80: annual removals will increase to 80 mill. m3, but intensity of forest management practices as today INT80_30: annual removals will increase to 80 mill. m3, and forest management will be intensified by applying measures, which increase growth in the short run (< 20 - 30 yrs.)

INT80_100: annual removals will increase to 80 mill. m3, and forest management will be intensified by applying measures, which increase growth in the long run (> 50 yrs.)

Time span of scenarios is 100 years The effects of climate change on forest resources is not taken into account

8

Sustainable growth from bioforest industry 8.11.2017

© Luonnonvarakeskus

94

4

5/24/2018

Scenarios Development of stocking in commercial forests mill. m3 4000 3500

Business as usual

3000 Removals=>80 mill. m3 + BAU forest management

2500 2000

Removals=>80 mill. m3 + intensive forest management (short term effects)

1500 1000

Removals=>80 mill. m3 + intensive forest management (long term effects)

500 0 0 - 10

11 - 20 21 - 30 31 - 40 41 - 50 51 - 60 61 - 70 71 - 80 81 - 90 91 - 100

Sustainable growth from bioforest industry 8.11.2017

9

Š Luonnonvarakeskus

The effect of forest management on growth, drain and carbon balance mill. m3

140 120 100 80

Drain Growth

60 40 20 0 Removals: 68 mill. m3

Annual change of stocking volume Carbon balance

10

Removals: 80 mill. m3 + BAU management

+ 22 mill. m3

- 22,1 milj. t CO2-ekv.

Removals: 80 mill. m3+ intensive management

+ 8 mill. m3

+ 26 mill. m3

(estimate)

after 20 years, (estimate)

- 2,9 milj. t CO2-ekv.

- 24,5 milj. t CO2-ekv.

(estimate)

Sustainable growth from bioforest industry 8.11.2017

after 20 years (estimate)

Š Luonnonvarakeskus

95

5

5/24/2018

Increased growth rate of Finnish forests from1971 to 2010 based on NFI measurement data • Observed increase in growth rate during 40 years has been – 47 mill. m3, i.e. 81 % • 63 % of increased growth is due to forest management 1) • 37 % of growth increase is environmental induced 1) 1) Souce: Henttonen,H.H., Nöjd, P. & Mäkinen, H. 2017. Environment-induced growth changes in the Finnish forests during 1971 – 2010 – an analysis based on National Forest Inventory. Forest Ecology and Management 386 (2017) 22–36

11

Sustainable growth from bioforest industry 8.11.2017

© Luonnonvarakeskus

Digitalization to improve wood availability •

Big data for identification of suitable harvest objects Precise estimates of timber assortments Harvestability prognosis based on soil maps and weather data

• •

Efficiency in wood utilization

Planning E‐trade of wood

• • •

Intelligent operator tutors in machines (eco driving, route optimization) Soil trafficability scanning during harvesting Automated quality control after harvest (soil disturbances, wood damages)

• • •

Logistical solutions to link transport means Timing of truck transport and optimization of locations for road side storages Terminals for smooth deliveries

© Luonnonvarakeskus

96

6

5/24/2018

Digitalization for reduced site impact • Reducing site impact through improved information and planning – based on topography and hydrological conditions • Field trials of emerging machine concepts – comparison of 8-wheel and 10-wheel forwarders and tracks – Tethered (winch supported harvesting) • Methods for monitoring – Drones and other technologies

www.tech4effect.eu

13

Big trucks – big transport cost savings?

We studied the effect of…

– – –

truck size (64t, 68t, 76t and 84t) transport distance number of assortments…

on…

– – –

fuel consumption efficiency, CO2-emissions, operating efficiency and costs

© Luonnonvarakeskus

97

7

5/24/2018

Study environment Timber transport logistics in Northern Central Finland Roadside storage data Characteristics of the operation environment/-model – work-shifts, wood reception times, routing rules – time-element functions from Nurminen et al. 2007

© Luonnonvarakeskus

Large trucks don’t always generate great cost savings

Transport cost, €/m3

• • •

7,2 7,1 7 6,9 6,8

76 tonnes

6,7

64 tonnes One timber assortment

16

64 tonnes 76 tonnes

Many timber assortments

24.5.2018

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© Luonnonvarakeskus Väätäinen ym. 2017, Luke

8

5/24/2018

Infrastructure has a great impact on transport

17

Svenson 2017, Skogforsk

24.5.2018

Conclusions: Improvement of long term wood availability • Vital forest resources are prerequisite for long term wood availability • Boreal forests react to silvicultural practices with a delay – Increase in harvesting levels cannot be immediately compensated with changed management – long-term effects of management can be significant • Climate change is likely to increase growth in the near future • Risks of biotic and abiotic damages are radically increasing

18

Sustainable growth from bioforest industry 8.11.2017

© Luonnonvarakeskus

99

9

5/24/2018

Conclusions: Improvement wood sourcing (short term wood availaibilty • Digitalization-base solutions can greatly improve the efficient use of existing harvesting and transport fleet • New technology is still needed to overcome the adverse impacts of climate change e.g. shorter winters, changing distribution of rainfall • We need investment in the infrastructure (roads, bridges, terminals)

19

Sustainable growth from bioforest industry 8.11.2017

© Luonnonvarakeskus

Thank you!

© Luonnonvarakeskus

100

10

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Pulpaper 2018, beforehand sent material for the congress leaflet

Utility company as a producer of biooil and user of biomass based fuels Kasperi Karhapää / 18.05.2018

Fortum in 2017 Key figures 2017

Markets Nordic countries

Sales

Power generation 45.4 TWh Heat sales 5.0 TWh Electricity customers 2.4 million

EUR 4.5 bn Comparable operating profit

Poland

EUR 0.8 bn

Power generation Heat sales

Russia (OAO Fortum)

Balance sheet

Power generation Heat sales

EUR 22 bn

2

0.5 TWh 3.7 TWh

26.3 TWh 19.8 TWh

Baltic countries

Personnel

Power generation Heat sales

8,800

India Power generation

Excl. Stockholm Exergi former Fortum Värme

101

0.7 TWh 1.4 TWh

0.3 TWh

23/05/2018

Fortum's European power and heat production Fortum's European power generation in 2017

Fortum's European heat production in 2017 Coal 32%

Nuclear power 49% Others 1% Waste 1% Biomass 2% Coal 3%

Waste 27% Peat 5% Heat pumps, electricity 7% Natural gas 7%

Hydropower 44%

European generation 46.6 TWh * (Generation capacity 8,743 MW)

3

Biomass 22%

European production 8.6 TWh * (Production capacity 4,671 MW)

* Excl. Stockholm Exergi former Fortum Värme

4

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Biomass has to be sustainably produced This means: • Common and binding criteria targeting the origin of biomass regardless of its end use.

• Target should be global sustainability criteria, but at least EU wide, mutually recognized principles.

• Key aspects of the criteria: – – – –

Greenhouse gas reduction Resource efficiency Biomass not originating from no-go areas Biomass production in line with sustainable forest management practices

• Proving sustainability based e.g. on national or regional risk assessment or voluntary sustainability system.

• Utilization of existing legislation, e.g. sustainable forest management.

• Scope of the sustainability criteria: energy production plants >20 MWth. 5

Where biomass for increased use is located?

European Forests Share of forests of land area, %

6

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7

How Fortum Otso –bio-oil is produced?

• Fortum Otso is produced with fast pyrolysis technique.

• In pyrolysis process solid organic material is heated and broken in oxygen free conditions.

• As heated vapors are cooled, pyrolysis oil is formed • Fortum Otso –bio-oil characteristics vary greatly from those of fossil oil

Joensuu

Helsinki 8

CONFIDENTIAL

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What is Fortum Otso® fast pyrolysis bio-oil?

• Fortum Otso® bio-oil has: – a heating value of about half of that of mineral oil; LHV 13-18 MJ/kg – significant levels of water (20-30 %), – low sulphur content (< 0,05 %), – higher specific gravity (1,2) and viscosity, – low pH (2-3), and – Tendency to form several phases.

• Fortum Otso® bio-oil – does not mix with hydrocarbon fuels.

– contains several hundreds of different chemicals in widely varying proportions.

– has a distinctive (smoky) odour.

– is combustible but not flammable.

9

xx

Thank you!

Kasperi Karhapää Bio-oil Business Manager kasperi.karhapaa@fortum.com 10

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THE BORREGAARD BIOREFINERY: PAST, PRESENT AND FUTURE PulPaper Helsinki 30.05.2018 Gisle Løhre Johansen Senior Vice President R&D and Business Development

Borregaard key figures 2017 Main location: Turnover: EBITA: Employees: Innovation spend: Operations: Additional offices and labs.:

Sarpsborg, Norway 470 mill. EUR 75 mill. EUR 1050 22 mill. EUR Norway, Europe, USA, South Africa India (Mumbai), Singapore, China, Japan, Brazil

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2

23.5.2018

Borregaard quote 2007: «Anything that can be made from oil can be made from wood»1)

1): ……but, not necessarily with a profit…….

VALGFRI TEKST

107

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3

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4

23.5.2018

- Polymers - Composites

- Flavours - Monomers - Proteins -Fine chemicals -Speciality chemicals

BIOREFINERY

BioFuel

Bioethanol - Biodiesel - Biogas -

BioEnergy

-Electricity/Heat - Liquid Fuels - Pellets

VALUE CREATION

BioChemicals

RAW MATERIAL COST

BioMaterials - Polymers - Composites

BioChemicals

- Flavours - Monomers - Proteins -Fine chemicals -Speciality chemicals

BIOREFINERY

BioFuel

Bioethanol - Biodiesel - Biogas -

BioEnergy

-Electricity/Heat - Liquid Fuels - Pellets

108

VALUE CREATION

RAW MATERIAL COST

BioMaterials

23.5.2018

- Polymers - Composites

BioChemicals

- Flavours - Monomers - Proteins -Fine chemicals -Speciality chemicals

BIOREFINERY

BioFuel

Bioethanol - Biodiesel - Biogas -

BioEnergy

-Electricity/Heat - Liquid Fuels - Pellets

From Paper Mill to Biorefinery

Prodction cont Production stopped

109

VALUE CREATION

RAW MATERIAL COST

BioMaterials

23.5.2018

Borregaard biorefinery in Norway

Lignin Specialty cellulose Bio oil Bioethanol Biogas Bark Knots Vanilla flavor Exilva (MFC) 85 kg 80 kg 25 kg 10 liter 8 kg 15 kg 4 kg 1 kg 0,5 kg

210 ton 3000 15 liter 30 km 50 liter 30 sq. meter 2.000 liter 5.000 Market concrete spectacle frames heavy fuel oil bus rides soil improver cardboard ice cream chocolate bars introduction

Business areas PERFORMANCE CHEMICALS 48%

Technology leader and largest supplier of lignin‐ based products with global market access

SPECIALITY CELLULOSE 36%

Leading global speciality cellulose supplier.

Significant producer of cellulosic ethanol

110

OTHER BUSINESSES 16%

Only producer of wood‐based vanillin.

Pioneer in cellulose nanofibrils.

23.5.2018

Performance Chemicals Products A broad range of dispersing and binding agents and other performance chemicals

Applications • • • • • • • •

Construction Agro chemicals Animal feed Bricks & tiles Lead batteries Soil conditioner Mining Gypsum board

Market position • Clear no 1 and only global supplier • Unique technical and application expertise 11

About 50 % of carbon in wood and straws are contained in the lignin

Weight

Carbon

Lignin Cellulose

Lignin

Cellulose Hemicellulose

Hemicellulose

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Lignin – a sustainable and flexible raw material Product performance depends on the process and the raw material Biochemicals

• Sulphite pulping process • • • •

Versatile lignin used in a variety of products/applications Quality depends on the chemicals base Water soluble Limited number of sulphite mills

Incineration Steam & electricity

• Softwood (pine/spruce) vs hardwood and straw • Softwood lignin has superior modification potential

Discharge

Lignin 30%

Cellulose 45%

Hemicellulose 25%

• Kraft (sulphate) pulping process • Lignin is normally incinerated to recover energy and chemicals • Raw material with some potential for lignin products (phenol replacement) • Not water soluble

• Steam explosion/hydrolysis lignin (most 2G ethanol processes) • Highly condensed and low reactivity • In general; low purity • Not water soluble

Volume growth ‐ LignoTech Florida

• • • • • • •

Joint venture with Rayoneer Advanced Materials (RYAM, 55/45) Two steps to 150,000 mtds capacity Applying Borregaard technology on a new raw material source Softwood grades that match our current products for targeted applications Ideal location to serve markets with substantial growth potential Investment decision taken Q4 2016 Start‐up June 2018 14

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Speciality Cellulose Total global cellulose market

Increasing specialisation

Dissolving pulp

Speciality cellulose market ~1.6 million mt

Speciality Cellulose Viscose (Textile)

Other cellulose specialties

~5.4 million mt

Acetate

Ethers

Commodity pulp incl. captive use (for paper/cardboard/fluff) ~180 million mt

23.05.2018

15

Oxidation of lignosulfonate to vanillin (started 1962) Copper catalyst is recycled due to strict limitations on copper in effluent

113

23.5.2018

Key Vanillin Market Segments Oil‐based vanillin & EVA

Bio‐based vanillin

Raw material

Beans

Key selling point Sales volume (MT)

Ferulic acid

Eugenol

Natural label 60

Lignin

Natural Guaiacol

Guaiacol

Bio‐based/sustainability /flavor profile 60

400

1300

Guethol Cost

50

15 000

23.05.2018

5 000

17

Ethanol in Borregaard «Before lignin»

Arne Meidell, CEO of Borregaard (1933‐1960): «Squeeze as much as possible out of the log»

WWII

Distillation to potable alcohol during WWII. Sold as “Borgerakevitt”

Pre‐oil age

Fermentation as purification

Product portfolio 1955

Growing portfolio of specialized lignosulfonate products

114

Green premium

New ethanol dehydration plant completed 2018

23.5.2018

Research and development • About 100 employees in R&D • 67 at the research centre in Sarpsborg • 35 holds a PhD

• RD&I spending about 5% of revenues • 15‐25% of revenue from new products over the last decade

Exilva ‐ a long‐term perspective on innovation

• Innovation takes time…..

• • • • •

• Leveraging Borregaard’s strengths

2005: Project established 2011: Technology selected 2012: Pilot plant operational 2014: Investment decision 2016: Commercial operation

• Speciality cellulose and fine chemical competence and technology • Know‐how in sales and marketing of performance chemicals • Innovation resources 20

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Exilva characteristics: Playing on properties delivered from nature http://www.exilva.com/

• Rheology modification, stabilisation, structure enhancement properties • High water retention capability, strong network • Still crystalline fibres • Not water soluble but dispersible in water • Adhesives, detergents, paint, cosmetics and other Fiber network within the aggregate

industrial formulation Footer text

23.05.2018

THE EXILVA INDUSTRIAL PLANT • New production facility • Capacity 1000 tonnes • Production started in Q4‐16

• Grant from BBI JU • EU H2020 flagship project • 25 m€ over 3 years

European project funded by the Bio Based Industries Joint Undertaking under the European Union’s Horizon 2020 research and innovation programme under grant agreement N°709746

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http://www.exilva.com/

23.5.2018

Exilva – a broad range of opportunities for the European Industry Focus areas

Other areas testing Exilva • Packaging, oil field, composites, filters & barriers, batteries, ink 23

Exterior flat paint ‐ mud crack resistance

Reference with HEC1) Cracking > 0.36 mm

With Exilva No cracking, up to 1.52 mm

1) Hydroxyethyl cellulose

24

117

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Improved stability against syneresis

Reference with HEC

Exilva 23.05.2018

The BALI project

Borregaard value chains Cellulose Bioethanol

Bleached cellulose

Specialty cellulose

Sarpsborg biorefinery

Sarpsborg sulphite mill Vanillin Lignin External sulphite mills

Lignin

Borregaard LignoTech production sites

Lignin BALI™ plant Cellulose

Sugar

118

Bioethanol Biochemicals

25

23.5.2018

Borregaard’s biorefinery concept BALI™ • BALI™ is a biorefinery concept developed by Borregaard for production of cellulosic sugar and ethanol and lignin performance chemicals

Lignin chemicals BALI™ plant Cellulose fibers

Cellulosic sugar

Bioethanol Biochemicals

• The BALI™ technology has been scaled up and demonstrated in a 1 mt/day feedstock demo plant in Sarpsborg, Norway • The demo plant has been in continous operation since Q1 2013 • Feedstock tested: Poplar, sugar cane bagasse, spruce and pine • Excellent sugar and ethanol yield due to low level of inhibitors

The BALI™ technology in a nutshell *) Biomass

Sugar

Cellulose pulp

Enzyme hydrolysis Bioethanol

Bioplastics

Pretreatment and fractionation

Crude lignin

Processing and evaporation/drying

Lignin performance chemicals

*): Patents granted world wide

119

Biochemicals

23.5.2018

Production: striving for a world class operation Best known operator practice:

Pacesetter¹⁾

Industry average

Revenue pr. employee

2016

2008

BRG average

Pacesetter¹⁾

Industry average

Borregaard average

• Competence building • Organisational development • Advanced technology • From 15 decentralised control rooms to one central control room – reorganised management system • Upgraded human machine interface and standardisation • Top level control systems based on integrated sensors, automation, analyses and visualisation of big data

29

Significant environmental investments Reduced energy costs and greener products

1200

• Reduced emissions to air and water

1000

• New technology • New operations • Cleaning measures

800

600

400

• Heavy fuel oil phased out

200

0 2006

• Replaced by biofuel, LNG and waste 2008

2010

Renewable energy

2012 Energy recovery

2014

2015

Heavy oil

2016 LNG

• Independent of heavy oil for all purposes by the end of 2013

120

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7,6x

Borregaard lignin

Synthetic alternative

Vanilla flavour

29x

Borregaard vanillin

Synthetic alternative

121

Greenhouse gas emissions

Concrete additives

Greenhouse gas emissions

Greenhouse gas emissions

Bio based products are a part of the solution

Fuel – production and use

6,8x

Borregaard 2G bioethanol

Petroleumbased diesel

Novel Biorefinery Concept for Northeast Finland In the first part of the presentation, we introduce a flexible concept in the biorefining of softwood pulp (280 000 ADt), dissolving pulp (147 000 ADt) and microcrystalline cellulose (38 000 ADt, made by AaltoCell™ process). Other products are tall oil, turpentine, soil conditioner, heat and power. The raw material for the process is northern coniferous trees.

The bio-refinery designed to be built at Kemijärvi in the north of Finland is starting in 2020.

The developed biorefinery concept forms a sustainable production system, addressing environmental, social and economical aspects in the Kemijärvi region of Finland. In the system, approximately 2.8 million cubic meters of softwood will be annually utilized and collected from a radius of about 100 km giving a great economical boost for local forest owners and truck companies. The simplified flowsheet of Kemijärvi mill is presented in Fig. 1.

Figure 1. Simplified flowsheet of Boreal Bioref Ltd.’s processes.

In the second part of the presentation, we introduce the forthcoming activities that are planned for near the biorefinery. It covers a zero-waste concept where all solid waste streams will be utilized for soil improvement therefore carbon, nutrients and trace elements are recycled in a sustainable manner. It also takes care of utilization of surplus heat for new concepts and products.

More information of Boreal Bioref Ltd. project at Kemijärvi will be given by CEO Heikki Nivala, heikki.nivala@borealbioref.fi, +358 40 542 5353 and novel concept ideas of value added products and side products utilization from Professor Olli Dahl, olli.dahl@aalto.fi, +358 40 540 1070 at Aalto University.

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St1 Cellunolixโ ข Business case: Sustainable and cost efficient bioethanol production from softwood biomass Tom Granstrรถm R&D St1 Renewable Energy Oy

1

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PulPaper2018 29-31.5.2018 Helsinki

St1 home market

MARKET SHARES 2017

FINLAND ST1

Home market consists of Finland, Sweden and Norway.

Headquarters in Helsinki.

Employs more than 750 people.

Operations are strengthened by strategic long-term partnerships in various areas.

Petrol Diesel Light fuel oil

Net Sales, MEUR

21.9% 18.7% 23.2%

SWEDEN 404

288 201

258 219

STATION NETWORK

Total of ca. 1400 St1- and Shell-sites in Finland, Sweden and in Norway.

Petrol Diesel Light fuel oil

Petrol Diesel

Biorefineries producing wastebased advanced ethanol. Industrial wind power plants. Geothermal pilot heat plant under construction.

Oil refinery in Sweden.

2

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Wind power plant Biorefineries Oil refinery

Wind farms owned by TuuliWatti Oy, an associated company of St1 and S-Voima.

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Marine gas oil

6,540 Profit for the period, MEUR

19.0% 14.6% 22.4%

209.1 Return on Equity, %

NORWAY ENERGY PRODUCTION

KEY FIGURES 2017

23.4% 21.5% 23.9%

23.4

Year 2017 in figures

3

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St1 value chain video 4

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124

Production of advanced ethanol Waste and residual based ethanol production proprietary technology results in the cleanest transportation fuel bio-component in the world when comparing life cycle emissions

Etanolix® plants (food industry residues) in Sweden and Finland

Bionolix® plant (household and grocery biowaste) in Finland

Cellunolix® plant in Finland in full production stage in 2017

Strong R&D investment in cellulosic-based waste and residues multiplies the ethanol production from feedstock outside the food chain

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PulPaper2018 29-31.5.2018 Helsinki

St1 advanced ethanol production - Development p Cellunolix® plants

Production volume

Cellunolix® commercialisation

Cellunolix® demo plant Etanolix® plants Etanolix® plants

Bionolix® Cellunolix® plant

• 5 Etanolix® plants (food industry residues) in Finland and Sweden • 1 Bionolix® plant (household and grocery biowaste) in Finland • 1 Cellunolix® plant (saw dust) in Finland • Letter of intent signed to construct a Cellunolix® plant (forest industry residues) in Norway

pilot

2006 6

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2011

2016

2021

PulPaper2018 29-31.5.2018 Helsinki

125

2026

Time

St1 Cellunolix® Kajaani plant site

7

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St1 Cellunolix™ process is optimised for softwood

Energy • steam • electricity

Utilities • water • cooling water

Additives • enzymes • yeast • chemicals

Raw material spruce or pine sawdust 10 ML (2.6 MG) bioethanol production 40 M€ (42.5 USD) investment Thermal pretreatment

Energy products • lignin • biogas Green Energy Congress 28-30.11 -30.11 2016 Atlanta US 22.11.2016

18.5.2018

Fermentation

Distillation Dehydration

Water circulation circulattion

Saw mill dust

8

Hydrolysis Hydroly

PulPaper2018 29-31.5.2018 Helsinki

126

Side products • turpentine • furfural • vinasse

Waste water • existing waste water treatment plant • water systems

99.7% Ethanol

St1 Cellunolix® – Kajaani plant mechanical completion 1.2.2017

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PulPaper2018 29-31.5.2018 Helsinki

St1 Cellunolix™ process is using saw dust and waste wood

Water circulation

50 ML (13.2 MG) production 150 M€ (160 M USD) investment

Treatment of distillation stillage and waste water

Biogas

Nutrient recycling

Saw dust

Improved St1 Cellunolix® process Waste wood

99.7% Ethanol

OR Modified lignin (biocrude)

St1 Refinery Gothenburg

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Transportation fuels (vaxes, parafins)

Gas stations

The relentless rise of carbon dioxide

https://climate.nasa.gov/climate_resources/24/ 11

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Background slides

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128

Sawn softwood production In Europe, 2014 Germany 16 %

2014

Russia 24 % Sweden 13 %

Finland 8%

Mill. m

Europe total Russia Germany Sweden Finland Austria France Others

3

133 32 21 18 11 8 6 37

%Chg* 3% 1% 2% 10 % 5% -2 % -3 % 5%

* compared with the prev. year

Others 28 %

Austria France6 % 5%

Source: FAO and European Organization of the Sawmill Industry 1 Softwood Market Development – European Production, Auvinen S.J., INTERNATIONAL SOFTWOOD CONFERENCE 2016 PARIS

Sawn softwood production amounts In Europe in 2014 • Saw dust amount is approximately 30 % of production of the mill.

• In Europe there is an oversupply in pulp logs, bark and sawdust. For example in Finland forest chips are being subsidized, putting pressure in sawmills’ by-products. 1 In Finland roughly 3.3 million bulk cubic meter of softwood saw dust is annually formed.

• About 18 million bulk cubic meter of softwood saw dust is annually formed in Nordic countries (Finland, Sweden and Norway) and Germany and Austria

This corresponds to approximately 570 million liters of bioethanol production potential annually

http://www.forestindustries.fi/statistics/industry/20-Sawmill%20Industry/ 13

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An example of the challenge: demand of jet fuel Jet fuel demand to rise by 55% as air travel keeps increasing world-wide (ExxonMobil Outlook) • Center for Climate and Energy Solutions estimate that: • Emissions from aviation make 2 percent of global emissions already in 2013 • If global aviation were a country, it would rank as the seventh largest carbon dioxide emitter • In 2010 2.4 billion passengers and 40 million metric tons of goods • By 2050, that could grow to 16 billion passengers and 400 million metric tons of goods

But no significant large scale renewable energy replacement developed

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St1 Refinery in Gothenburg Refines 30 million barrels of crude oil annually • •

Petrol, sulphure-free MK-1 diesel, other middle distillates and liquid gas Most of the products are sold through St1’s own network in Sweden and Finland

One of the world’s most energy-efficient refineries • •

Most of its energy needs are covered by own gas production Nearly a third of the heat generated by the plant is recycled into the City of Gothenburg’s municipal heating network to provide heating for appr. 70 000 dwellings

Certified in accordance with the EU’s Eco-Management and Audit Scheme (EMAS) and the ISO 14001 environmental system St1’s goal is to convert the refinery into biorefinery • 15

Etanolix® advanced ethanol plant integrated into refinery 2015 18.5.2018

PulPaper2018 29-31.5.2018 Helsinki

Figures 2014 – 2017

*St1 Group merged into St1 Nordic on 31 December 2017

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Impact of digitalisation for the forest industry

Petri Vasara, Vice President (petri.vasara@poyry.com) Hannele Lehtinen Idil-Nazli AktĂźre Munira Khamitova - PĂśyry Management Consulting Oy

Five Theses for the Fifth Phase of the Forest Industry

I It's not about digitalisation, it's about the combined revolution of digital, material and social changes

It is actively misleading and even dangerous to insist on digitalisation as a separate phenomenon having a separate impact on the forest industry. What changes the world, and hence the forest industry, is the combined, connected and complex impact of a revolution in material and digital technology and social dynamics. You cannot separate the different revolutions. The French revolution of 1789 was not a technology revolution, or a social revolution, or a new thinking paradigm. It was just a revolution.

II It's originally about ten digits on two hands, now we just have more of both

The human hand is a computer. The Babbage difference engine of 1833 was a revolutionary digital device with memory storage and output. AlphaGo and the latest DNA computers are descendants of these devices, not something utterly new. We can use more digits, more memory, more varied output. However, we are dealing with the same thing from human hands.

III It's about simultaneous tipping points in e.g. automation, materials and needs

What are the key tipping points in the forest industry related to better automation, new properties of materials and changing end user needs linked to e.g. plastic oceans and climate change? When several tipping points occur together. there is a further tipping point. What flags do we see for these tipping points about to happen?

131

V It's about things riding off in all directions simultaneously

"..he flung himself from the room, flung himself upon his horse and rode madly off in all directions." It would be easier to pretend we can discuss the impact of digitalisation on the forest industry, as if there was only one direction in which things were developing and it could be assessed in isolation from all other developments. In reality, we need to think in multiple paths at the same time. This is the real reason why we can use machine learning and artificial intelligence also as a means of understanding how to the forest industry can substitute plastics with fibre, while social upheavals shape needed product properties and drones deliver bioprinted parts made from nanocomposites.

V It's about people, not digitalisation

Digital technology is still something used by the same ten-fingered human with the same basic needs. If the forest industry forgets that, it definitely loses the future.

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CUSTOMER VIEW ON THE CHANGING LANDSCAPE IN PACKAGING

KRISTINA ENQVIST PACKAGING DEVELOPMENT DIRECTOR & HEAD OF PROCUREMENT LUMENE OY

LUMENE 1948 Noiro was founded as a subsidiary of pharmaceutical company Orion 1970 Lumene brand & products launched in Finland 2003 LUMENE Oy ‐ independent company Owners initially CapMan , FIN Current owner Langholm Capital, UK Main factory in Espoo, Finland Xxx Employees in XX countries.

Turnover 2017 83M€

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FROM DECORATION TO TOOLING ‐ Historically standard packaging with available decoration ‐ Later differentiation done by 3D design, own tooling ‐ Heavy investments ‐ Long life cycle of the 3D pack for payback

FROM TOOLING TO DECORATION ‐ Current world; back to standard packaging but better decoration ‐ Product life cycles shorter and shorter (1‐3 yrs) ‐ New decoration materials and methods (submersion, digital printing, laminates, hotfoiling developments, painting technologies)

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DIGITAL WORLD IN COSMETICS ‐ HUGE INCREASE IN CUSTOMER AWARENESS ‐ Brands have direct contact to consumers, not only customers ‐ First interest in actual product content ‐ Brands need to explain themselves on the origin and sustainability of their product ‐ Lately raising interest also for sustainability of packaging ‐ Moving from push to pull ‐ the market requires sustainable solutions, because awareness in consumer level has increased

CURRENT EMPHASIS ‐ SUSTAINABILITY ‐ Plastics world and circular economy coming together ‐ Consumer pull for sustainable solutions ‐ Plastic on everyones lips at the moment ‐ Lumene in cooperation with Sulapac

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esimerkki

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Phosphorylated cellulose nanofiber: Preparation and its applications Pulpaper 2018 Conference 31 May, 2018 Oji Holdings Corporation Yuichi Noguchi

Corporate Data Founded

February 12, 1873

Paid in capital

103,880 million yen

Revenues

1,439,800 million yen ό

Operating Income

70,508 million yen ό

Number of employees

35,392 ό

όAs of Mar. 2017 2

146

Corporate Data

Activities by 4 business segments [1] Household and Industrial materials [2] Functional materials [3] Forest resources and environment marketing [4] Printing and communications media

3

ẔManagement Philosophy ẕ “Creation of Innovative Values” “Contribution to Future and the World” “Harmony with Nature and Society”

Beyond the Boundaries

Ẕ Management Strategies ẕ 1. Expansion of Overseas Businesses 2. Concentration / Advancement of Domestic Businesses 3. Enhancement of Financial Foundation 4

147

1. Introduction of cellulose nanofiber (CNF) 2. The feature of phosphorylation 3. Production of phosphorylated CNF 4. Applications - CNF aqueous dispersion - Transparent sheet - Others

5

Cellulose nanofiber (CNF) Wood Pulp

CNF

3 - 4 nm

30 ȝm

Width: 3-4nm, Length: ~1ȝm

Young’s modulus

138 GPa

Tensile strength

3 GPa

Coefficient of linear thermal expansion

0.1x10-6/k

Specific surface area

>250m2/g

Sakurada et al. (1962), Saito et al.(2013), Hori and Wada (2005)

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6

Application of CNF expected ὉReinforcing filler for plastics (PE, PP composites etc.)

High stress & modulus, light-weight, tolerant to heat ὉThickeners (cosmetics, cement, paints, oil drilling fluid) High viscosity, particle dispersion stability, heat resistance ὉPackaging materials, gas barrier films Biodegradability, high O2 barrier ὉOptical films (OLED cover window, substrate) Transparency, high modulus, dimension stability, flexibility

CNF enables us to create new business!

7

Producing methods of CNF Pulp

Fibrillation

CNF

Coarse CNF ῍ᾀ὿὿nm

Consuming a lot of energy Pulp

Chemical modification Phosphorylation

䞉Reducing energy consumption of fibrillation

Fibrillation

CNF

Fine CNF ᾂ῍ᾃnm

䞉CNFs with chemical modification are fibrillated finer than CNFs without them 8

149

Producing methods of CNF Electrostatic repulsion

Mechanical

Chemical

treatment

modification

Complete

Ionic functional group

nanofibrillation

Cellulose molecule

Osmotic effect and electrostatic repulsion between CNFs by ionic groups are effective for complete nanofibrillation 9

Concepts of chemical pre-treatment Safe and inexpensive chemicals Non-use of organic solvent Easy recovery of reactant after treatment Simple process & Easy scale-up Verification : more than 10 types of chemical modification We selected phosphorylation as the most promising method 10

150

Advantage 1 : simple heating process 6RIWZRRG SXOS VKHHW 6RDNLQJ

3KRVSKRU\ODWLRQ 5LQVLQJ DQG QHXWUDOL]DWLRQ

:DWHU 8UHD 1+ + 32 %\ KRW DLU & VHF

:LWK ', ZDWHU DQG 1D2+ DT

3KRVSKRU\ODWHG SXOS 11

Advantage 2 : Almost no degradation DPv was almost unchanged

ὉDegree of polymerization was almost unchanged ὉProton release was suppressed by co-presence of urea 151

12

Advantage 3 : Adjoining with paper mill

ὉSupply of pulp and waste heat / reusing of P and N

13

Production of phosphorylated CNF 3KRVSKRU\ODWHG &1) GLVSHUVLRQ ZW

7(0 LPDJH

Between cross polarizers

QP 䞉 Almost uniform widths of 3-4 nm 䠄= Completely nanofibrillated CNF䠅 14

152

Effect of phosphorylation on haze value

More transparent with low energy consumption

Low value = High transparency

High P content results in low haze dispersion with low energy consumption

15

Haze and appearance of dispersion appearance of 0.5wt% dispersion in glass cell (thickness = 10mm)

3 FRQWHQW >PPRO J@

# > @

+D]H RI GLVSHUVLRQ

&RQYHUVLRQ UDWLR RI 2+ JURXSV> @

â&#x20AC;« Ú«â&#x20AC;¬

1R SKRVSKRU\ODWLRQ

â&#x20AC;«Ù´â&#x20AC;¬

â&#x20AC;«Ù´â&#x20AC;¬

â&#x20AC;«Ù´â&#x20AC;¬

â&#x20AC;«Ù´â&#x20AC;¬

5HODWLYH HQHUJ\ FRQVXPSWLRQ

16

153

High performance thickener Phosphorylated CNF

Viscosity at 0.4% [mPa䞉s]

100000

Xhantan gum

10000 1000

Carboxymethyl cellulose

100

Guar gum

10 1

0.2

0.4 0.6 0.8 Solid content [wt%]

Viscosity at 0.4% [mPa࣭s]

1000000

1000000

1.0

100000 10000 1000

Xhantan gum

Carboxymethyl cellulose

100

Guar gum

10 0.01

* Using b-type viscometer, roatation speed: 3rpm

Phosphorylated CNF

0.1 1 10 100 Shear rate [1/s]

1000

* Using Rheometer

ὉThe CNF dispersion shows thixotropic behavior in addition to high viscosity and non-sticky property that is favorable for cosmetic, inks, paints application 17

Phosphorylated CNF transparent sheet Features of CNF transparent sheet Transparency equivalent to glass

Excellent flexibility

18

154

Phosphorylated CNF transparent sheet Features of CNF transparent sheet Continuous sheet making

19

Phosphorylated CNF transparent sheet Transmittance (%)

Haze (%)

Tensile strength (MPa) †

Young’s modulus (GPa) †

91.4

0.5

150

10

CLTE †† (ppm/Υ)

Tg ††† (Υ)

Degradation temperature (Υ)

Flexibility

(60-100 Υ)

(under 200 Υ)

(5% mass decrease/ degradation peak)

(ĭ1mm)

7.2

None

270὾ 320

No crack

† According to ASTM D882 †† Coefficient of Linear Thermal Expansion ††† Glass transition temperature All data are typical measured values, and not the values for guarantee.

155

20

Lineups of CNF transparent sheet

AUROVEIL 3D

AUROVEIL WP

ίDeveloped productὸ

(Developed product)

Excellent moldability Low thermal expansion

Water resistance Low thermal expansion 21

Hydrophobized CNF A variety of organic solvents Hydro carbons

Alcohols

Ketones

Glycols Glycol ethers

Polar aprotic solvents

Dispersion with high viscosity and high transparency

High solids powder

ὉThe hydrophobized CNF is powder form ὉIt enables users to handle it easily and add more amount of CNF to organic solvents 156

22

Transparent composite of CNF and PC

Leftä &#x2013;Polycarbonate (PC) Rightä &#x2013;CNF and PC

Increasing elastic modulus of PC by four times and decreasing coefficient of linear thermal expansion to one third 23

Road to commercialization of CNF Increasing production quantity

Confirmation of mass production

Phosphorylated CNF demonstration facility

CNF transparent sheet demonstration facility

[Project overview]

[Project overview] Start of production: latter half of 2017 Capacity : 250,000m2 / year

Start of production : Dec. 2016 Capacity : 40 tonnes / year Location: Oji Paper Co., Ltd.

*future plan up to 1 Million m2 / year

(Tokushima, Japan)

24

157

High-Quality Man-Made Cellulose Fibers from Textile and Paper Wastes PulPaper 2018 Herbert Sixta May 31st, 2018

60% of all Textiles represents Clothing Industry

USD 1.3 trillion business

300 million employees

But Take-makedispose-model

Value Loss USD 500 billion/a

158

1.2 billion t/a greenhouse gas emissions

0.5 million t/a Microplastics

73% landfilled or incinerated

20% of global waste water

Key Drivers of Clothing Industry • Sustainability • Convenience and • Functionality

Wood-based and cotton linter-based cellulose fibers: Source: ICAC 2017, Fiber Year 2017

159

CAGR (2015e â&#x20AC;&#x201C; 2020p) Wood-based fibers

5-6% p.a.

Synthetic fibers

4-5% p.a.

Cotton

0-1% p.a.

Total fiber market

3-4% p.a.

Source: CIRFS, The Fiber Year

Predicted Lyocell Production and Demand China

0,6

14

Mt, LYOCELL

P

0,4

M

0,0

G

2017

2018

2019

2020

2021

Lenzing

H

12

GAP

10

L

0,2

Mt

other

g-Lyo Lenzin

8 6

Lyoc

ell

cell

Viscose

0,3 0,0

2020

2025

1

Source: Lenzing

Source: CIRFS, FEB, Trade statistics

160

2030

Fiber price (development) k€/odt 3

premium grades

• Lyocell standard ~ 2.5 €/o.d.t • Lyocell premium ~ 3.0 €/o.d.t

2

• Specialities

1

0 lv Disso

ing p

ulp ose Visc

Cott

on

PET

Dry contents: DP = 90%, Fiber = 89%

Sources: China Cotton Association, China Chemical & Fiber Economic Information Network, China Chemical Fiber Group Situation March 2018

Closed-loop process.

Turns cellulose pulp, used cotton textiles or cardboard into new high-quality textile fibres without harmful chemicals. www.ioncell.fi

161

> 4 €/o.d.t

Mechanical Properties CV

Tenacity (cN/tex)

60 Ioncell

50

CMD

Tencel

40 Cotton

Modal

30 20

CO

Viscose

10

Tencel

0 0

5

10

15

20

Elongation (%)

Ioncell

Tenacity cond.

Elong cond.

cN/tex %

25 20

Tenacity wet

cN/tex

13

Tenacity cond.

Elong cond.

cN/tex

%

35 13

Tenacity wet

cN/tex

19

Tenacity cond.

Elong cond.

cN/tex

%

31 8

Tenacity wet

cN/tex

33

Tenacity cond.

Elong cond.

cN/tex

%

38 15

Tenacity wet

cN/tex

31

Tenacity cond.

Elong cond.

cN/tex

%

50 13

Tenacity wet

cN/tex

47

Raw Material Costs €/kg cellulose 1,5 W-NP… CB…….

LF-WP..

R-CO....

PP……..

DPst…..

DPhq….

1,0

DPhq

DPst

PP

R-CO

LF-WP

CB

W-NP

0,0

Wood

0,5

162

Waste newsprint Cardboard waste Lignin-free waste paper Recycled white cotton Paper pulp Dissolving pulp Acetate pulp

*Pretreatment costs not included

Tensile strength (MPa)

1000

Cotton waste 452 Cotton waste

800

E-Beam

600

Spinning

10

15

Fibers

Tencel

3 batches of Hospital bed sheets: Viscose • 400 750 mL/g • 587 mL/g • 452 mL/g

5

Birch PHK

Ioncell F

Textile fibers from white cotton waste

20

25

30

35

Young's Modulus (GPa) Asaadi et al. ChemSusChem 2016, 9, 3250–3258

Making waste-cotton new Photo: Eeva Suorlahti

163

POLYESTER

COTTON POLYESTER

ioncell.fi @IoncellFibers

Recycled Cardboard Pretreatment Sample SCR

EG

LIGNIN 15.3

SPINNABILITY 3.5 (draw ratio)

B1

HEMI 20.9

B2

16.6

2.9

15.9

SCR

Kraft

SCR

Kraft

CCE

EG

B3

9.8

1.9

17.8

SCR

Kraft

BLEA

EG

B5

16.7

0.9

19.8

SCR

Kraft

CCE

B4

10.0

0.9

15.9

EG

BLEA

EG

*2900 ppm Ca!!

Recycled Fine Paper Pretreatment SCR SCR

EG

CCE

EG

Ma, Y. et al. Green Chem., 2016, 18, 858â&#x20AC;&#x201C;866

164

P1

24.0

0.4

14.1

P2

11.3

0.6

16.8

Material losses during Regeneration Lignin Losses

Carbohydrate Losses Hemicellulose Loss, wt%

Lignin Loss, wt%

8 RCB UPP DNP

6 4 2 0 0

10

20

Lignin content of pulp, wt%

30

6 D-FP RCB DNP

4

2

0

0

5

10

15

20

Hemicellulose content of pulp, wt%

Tenacity

Visco-elasticity Complex Viscosity [Pa¡s]

100000

10000

1000

100 0.01

P1 11.5% P2 13% B1 13% B2 11.5% B3 13% B4 13% B5 13%

0.1

1

10

25

100

Angular Frequency [1/s]

P1

P2

B1

Ma, Y. et al. Green Chem., 2016, 18, 858â&#x20AC;&#x201C;866

165

B2

B3

B4

B5

Interaction with WaterEffect of hemicellulose and lignin g/g

Photo Eeva Suorlahti

g/g

awarded with

166

Waste Newsprint to Textile Fibers

Deinked Newsprint

Mild Pretreatment

Staple fiber

Dope

Yarn

Spinning

Ioncell fibers from newsprint in numbers

60% yield

74% Cellulose 21% Hemicellulose 5% Lignin Dry tenacity [cN/tex]

DRmax = 18 Titer = 0.8 dtex Tc = 44 cN/tex Tw:Tc = 0.85 = 8% ÎľC

167

60 50

Ioncell from Newsprint Tencel Viscose Ioncell standard

40 30 20 10 0

0

5

10

15

Elongation (%)

20

SIXTA-GROUP

Thank you for your attention!

168

14/5/2018

1 (1)

Wood fibres making textiles more sustainable Sirpa Välimaa, Product Manager Dissolving Pulp, Stora Enso Division Biomaterials, is responsible for Stora Enso’s dissolving pulp product line and is a part of the Biomaterials sales organisation. Contact information: Sirpa Välimaa, sirpa.valimaa@storaenso.com; +358 40 542 9236.

Stora Enso is a leading provider of renewable solutions in packaging, biomaterials, wooden constructions and paper on global markets. Innovation is key for sustainable profitable growth. Stora Enso’s aim is to replace fossil-based materials by innovating and developing new services based on wood and other renewable materials. Stora Enso’s portfolio growth is aimed at participating in the development and commercialisation of novel technologies for woodbased fibres, strengthening its position in cellulose fibre and material innovation, as well as leveraging existing assets to create new value.

In her presentation at PulPaper 2018, Välimaa will present Stora Enso’s transformation from a traditional paper and board company into a renewable materials company by focusing on one of the products key to this transformation – dissolving pulp. Stora Enso’s dissolving pulp is manufactured at Enocell mill, near Joensuu, and the mill is Finland’s only dissolving pulp manufacturing mill. As of 2019, the mill will be converted to produce only dissolving pulp, thus increasing the dissolving pulp product portfolio. Stora Enso is actively involved in research projects aiming at developing a more sustainable textile fibre, also recognising that dissolving pulp has many other applications beyond textiles, which are actively researched as well.

The world dresses in oil. Currently, over 97% of clothes are manufactured using virgin fibres, of which 63% are oilbased fibres and 26% cotton; wood fibres are represented in the 6% of known as “other fibres”. This needs to change, the textile and fashion industry needs to be more sustainable – this in terms of textile design, raw material choice, material efficiency, recycling, manufacturing processes, energy and natural resource consumption.

Currently, the textile industry alone produces more emissions than air and maritime transport together, also using 4% of the world’s fresh water resources. To become more sustainable, the textile industry should be developed as an ecosystem part of the circular economy in which natural raw materials and renewable regenerated energy is chosen over fossil-based fuels.

At Stora Enso, we believe that everything made from fossil fuels today, can be made from a tree tomorrow. Our purpose is to do good for the people and the planet by replacing fossil-based materials with renewable solutions.

Stora Enso Kanavaranta 1 P.O. Box 309 FI-00101 Helsinki, Finland Tel: + 358 20 46 131 www.storaenso.com

Legal information Business ID 1039050-8 VAT No FI 10390508

169

Confidential

23.5.2018

Pulp and Paper industry â&#x20AC;&#x201C; a leader or lagger in grasping data-driven opportunities

Satu Kiiskinen, Executive Vice President Tieto Corporation @sa2koo

Digital revolution progresses with every new bit of information

Confidential

Cyber security

Autonomous

Unlimited capacity

Digital supply chains

Virtual reality Artificial intelligence Blockchain Machine learning, robotics

Natural language processing

Personalized for every Š Tietoindividual Corporation

Available on-demand

170

Accelerates businesses and society

23.5.2018

Virtualizing detailed realworld assets in virtual environment based on data

Confidential

Walk into the Virtual Forest

Enabling planning and simulation and execution of real world operations. © Tieto Corporation

Digital representation of assets, their current status information and service instructions

Visualization, analysis, instructions, inspection and maintenance © Tieto Corporation

171

Confidential

Digital Twin – Industrial Maintenance

23.5.2018

Keys to innovation and growth Speed up

Store your data

Develop skills for the future

Co-create

Š Tieto Corporation

Satu Kiiskinen, Executive Vice President Tieto Corporation â&#x20AC;˘@sa2koo satu.kiiskinen@tieto.com

172

23.5.2018

Intelligence in maintenance PulPaper 31.5.2018 Veijo Pitkäniemi Director, Business Development & Operational Excellence Stora Enso, Maintenance Finland, Efora

Stora Enso, Maintenance Finland, Efora Facts: • Operating in 9 locations • 930 experts • Turnover 191 M€ (2017) • Cross-divisional approach

2

15/1/2018

Kunnossapito Suomi, Efora

173

23.5.2018

Efora’s main processes Customer Relationship Management • Target: To listen and understand customer’s needs and demands for cooperation. Follow-up the progress of goals and actions selected together at the same time securing the continuity of the service contract.

Reliability Optimization • Target: Reach reliability demanded by customer with the most optimal costs and investments

Maintenance Operations and Project Management • Target: Plan and implement maintenance and project management efficiently and well (resource and efficiency management)

Service Management • Target: Develop and maintain profitable service products, competence related to them as well as internal and external network 3

9/3/2018

Maintenance Finland, Efora

People are our asset – Improve in the field Implementing is the key to success

History?

Production situation?

Root cause?

Operating on field?

OEM online help?

Asentaja Next planned shutdown?

Expert network?

Why asset failed?

Learning video?

4

Preventive actions?

Forecast for the next failure?

Maintenance Finland, Efora

174

My workload?

Spare parts?

Continuous self driven improvement culture?

How to improve efficiency?

Documents?

23.5.2018

Digital transformation in maintenance Drivers

Solutions Välkky mobility

• Transparency/visibility • Mobility/location independency • Real time

Rapsa Business Intelligence Automatic material management Digitalized subcontractor management

• Analytics and Machine Learning

Efora Academy

• Business models

Predictive analytics Augmented reality RPA in maintenance VR/AR/360/interactive videos …

• Supply chain integration • Technology is available

5

16/3/2018

Maintenance Finland, Efora

Veijo Pitkäniemi Director, Business Development & Operational Excellence Stora Enso, Maintenance Finland, Efora veijo.pitkaniemi@efora.fi + 358 400 969 882

175

Material Innovations from Cellulose Ă&#x2026;sa Ek, CEO Cellutech

Cellutech is a small Swedish start-up company working to develop and commercialize new innovative materials based on raw materials from wood.

In this session, you will learn more about how Cellutech work to transform ideas to innovation as well as the materials that are currently under development.

Examples of materials are Cellufoam, a low density, highly porous material made of cellulose and Celluspheres, transparent tree-bubbles filled with air.

The innovations originate from researchers connected to the Wallenberg Wood Science Center, WWSC, at KTH and Chalmers in Sweden. A group of 25 professors at WWSC are owners of the company together with industrial investors.

This unique set up enables Cellutech to be a link between academia and industry and provides the opportunity for innovations outside the Swedish forest industry's traditional business areas.

176

Update on Bioplastics Development Abstract: Approximately 322 million tons of plastic is produced today, representing over 210 times the production of 1950s and over 50 % more than five years before. Bioplastics is thought to be alternatives for fossil-based but so far only 1-2% of the yearly production are from renewables. Bioplastics are closely linked to the history and development of plastics. Some of the industryâ&#x20AC;&#x2122;s earliest pioneers, including Henry Ford, developed plastics using renewable resources. The first man-made plastics, Parkesine, was a bioplastics and developed in 1860s by Alexander Parkes. Before mastering monomers obtained from oil, starting from the 1930s, and several materials used in daily life were manufactured using bio-based polymers. In the late 1980s and 1990s great steps were taken in the development of bioplastics which are well-known today.

Bioplastics like PLA, PHAs or even plasticized starches have benefited from the rapid technical advances in recovery of biomass and even more rapid development of plastic manufacture was a 20th century phenomenon on a historical scale. It is estimated that bio-based plastics could substitute 85% of the plastics on the market today and many bio-based plastics could be processed using the same technologies as for fossil-based plastics with some modifications to the processing parameters.

Dr Jarmo Ropponen VTT Technical Research Centre of Finland Ltd P.O.Box 1000 FI-02044 VTT, Finland Email: jarmo.ropponen@vtt.fi

177

CONFIDENTIAL. ©2018 SULAPAC LTD. ALL RIGHTS RESERVED. COPYING OR ANY USE WITHOUT PERMISSION IS PROHIBITED. SUPPORTED BY TEKES.

CONFIDENTIAL. ©2018 SULAPAC LTD. ALL RIGHTS RESERVED. COPYING OR ANY USE WITHOUT PERMISSION IS PROHIBITED. SUPPORTED BY TEKES.

SULAPAC® CHALLENGES PLASTIC

Suvi Haimi

CEO and Co-Founder

THE GLOBAL PLASTIC WASTE PROBLEM NEEDS NEW SOLUTIONS

OUR MISSION IS TO SAVE THE WORLD FROM PLASTIC WASTE

178

CONFIDENTIAL. ©2018 SULAPAC LTD. ALL RIGHTS RESERVED. COPYING OR ANY USE WITHOUT PERMISSION IS PROHIBITED. SUPPORTED BY TEKES. CONFIDENTIAL. ©2018 SULAPAC LTD. ALL RIGHTS RESERVED. COPYING OR ANY USE WITHOUT PERMISSION IS PROHIBITED. SUPPORTED BY TEKES.

SULAPAC® – WORLD’S MOST EGOLOGICAL PACKAGING SOLUTION Made out of wood and other renewable materials from unlimited sources.

End products are made with conventional equipment, no new capital investments needed.

All the plastic benefits without the plastic waste problem.

€ 300 B

BILLION DOLLAR MARKET OPPORTUNITY

€ 200 B € 150 B

Sustainable packaging is the fastest growing packaging segment with 7% CAGR.

2008

Global packaging market is worth €800 Billion.

Cosmetic packaging € 25 Billion.

Luxury packaging € 14 Billion.

Food packaging € 254 Billion.

179

2017

2024

CONFIDENTIAL. ©2018 SULAPAC LTD. ALL RIGHTS RESERVED. COPYING OR ANY USE WITHOUT PERMISSION IS PROHIBITED. SUPPORTED BY TEKES.

CONFIDENTIAL. ©2018 SULAPAC LTD. ALL RIGHTS RESERVED. COPYING OR ANY USE WITHOUT PERMISSION IS PROHIBITED. SUPPORTED BY TEKES.

FIRST CUSTOMERS

Shared values.

Pioneering attitude.

Cutting out the plastic waste.

Sustainability.

CASE NAVITER

The first launched primary package

Product & package speak the same language:

100% Biodegradable

0% Microplastics

180

CONFIDENTIAL. ©2018 SULAPAC LTD. ALL RIGHTS RESERVED. COPYING OR ANY USE WITHOUT PERMISSION IS PROHIBITED. SUPPORTED BY TEKES. CONFIDENTIAL. ©2018 SULAPAC LTD. ALL RIGHTS RESERVED. COPYING OR ANY USE WITHOUT PERMISSION IS PROHIBITED. SUPPORTED BY TEKES.

PARADOX SOLVED Sulapac packaging is water, oil and oxygen resistant while fully biodegradable.

SULAPAC® TECHNOLOGY IS SCALABLE Unlimited and renewable resources of raw materials.

Cost efficient and massproducible technology.

End products are made with conventional equipment, no new capital investments needed.

181

CONFIDENTIAL. ©2018 SULAPAC LTD. ALL RIGHTS RESERVED. COPYING OR ANY USE WITHOUT PERMISSION IS PROHIBITED. SUPPORTED BY TEKES.

CONFIDENTIAL. ©2018 SULAPAC LTD. ALL RIGHTS RESERVED. COPYING OR ANY USE WITHOUT PERMISSION IS PROHIBITED. SUPPORTED BY TEKES.

SULAPAC® PRODUCT PIPELINE

THE FUTURE

182

CONFIDENTIAL. ©2018 SULAPAC LTD. ALL RIGHTS RESERVED. COPYING OR ANY USE WITHOUT PERMISSION IS PROHIBITED. SUPPORTED BY TEKES. CONFIDENTIAL. ©2018 SULAPAC LTD. ALL RIGHTS RESERVED. COPYING OR ANY USE WITHOUT PERMISSION IS PROHIBITED. SUPPORTED BY TEKES.

PATENTED CONCEPT

RECIPE PATENT FILED

BARRIER PATENT FILED

APPLICATION PATENT FILED

PROTECTION OF DESIGN 2018

BOTTLE PATENT 2019

TUBE PATENT 2019

Firsts patents filed.

The filed technology concept patent allows licensing of Sulapac® material outside packaging applications.

SPECIFIC MANUFACTURING TECHNOLOGY

Driven to capture full value of Sulapac® material & technology.

FAST BIODEGRADING FORMULA

TECHNOLOGY CONCEPT PATENT FILED

TRIAL AND ERROR BEFORE THE BREAKTHROUGH

183

UNIQUE APPEARANCE

CONFIDENTIAL. ©2018 SULAPAC LTD. ALL RIGHTS RESERVED. COPYING OR ANY USE WITHOUT PERMISSION IS PROHIBITED. SUPPORTED BY TEKES. CONFIDENTIAL. ©2018 SULAPAC LTD. ALL RIGHTS RESERVED. COPYING OR ANY USE WITHOUT PERMISSION IS PROHIBITED. SUPPORTED BY TEKES.

WORLD CLASS SULAPAC TEAM Dr. Suvi Haimi CEO, Co-founder

Dr. Laura Kyllönen CTO, Co-founder

Antti Valtonen Marketing & Communications

Dr. Antti Pärssinen Technology and Innovation

Imran Ahmed Sales

Dr. Taneli Väisänen R&D

Heidi Koljonen Service

Dr. Eija Pirhonen Quality

Ari Koistinen Production

THE BOARD AND MAIN INVESTORS

Juha Lindfors Chairman

Prof. Dirk Grijpma Board member

Saara Kankaanrinta Board member

Riitta Vartiainen Board member

Prof. Dirk Grijpma Ardent Venture

Juha Lindfors Lifeline Ventures

Ilkka Herlin Suomen Tavara ja Raha Oy

Eerik Paasikivi Valve Ventures Oy

OUR HERITAGE

“The choices we make today are our heritage for our children to live in a clean, sustainable world of tomorrow “

184

CONFIDENTIAL. ©2018 SULAPAC LTD. ALL RIGHTS RESERVED. COPYING OR ANY USE WITHOUT PERMISSION IS PROHIBITED. SUPPORTED BY TEKES.

SULAPAC® EVERY PACKAGE MAKES A DIFFERENCE

Contact: suvi.haimi@sulapac.com

www.sulapac.com

185

5/23/2018

How lignin extraction and dissolving pulping are changing Jussi Mäntyniemi, Vice President, Recovery Business, Valmet

Presentation content 1

Pulp production drivers

2

Dissolving pulping – market, technology and cases

3

Lignin extraction – technology, cases and trends

4

Summary

186

5/23/2018

Current performance topics in the chemical pulp production Global trends around performance and sustainability

Cost and production efficiency

3

May, 2018

Improved safety and environmental performance

Product differentiation

Š Valmet | Jussi Mäntyniemi

Dissolving pulping

187

New value-adding products and platforms for growth

5/23/2018

Textile fiber demand and consumption of dissolving pulp 140 120

Millions tonnes

100 80 60 40 20

2000

2002

2004

2006

2008

2010

2012

World textile demand driven by megatrends: population growth and higher purchasing power in emerging markets Wood based fibres increasingly preferred for their sustainability and offering similar performance characteristics to cotton – if not better.

5

May, 2018

© Valmet | Jussi Mäntyniemi

2014

2016

2021f

CAGR 2016-2021 Wood based fibre: +5.5% Cotton: -0.5% Synthetic based fibre +3.75% Other: 0%

TOTAL FIBER MARKET: +3%

Source: Hawkins Wright and Pöyry

Quality requirements for dissolving pulps  End user is a chemical company  high pulp quality – low variation

 Uniform product  ”Molecule supplier”

 High cellulose content  controlled, adjusted viscosity (DP)  viscosity adjustment over the whole fiberline-> viscosity control stages (Cooking,O2-del., bleaching)

 High purity     

6

low, adjusted hemicellulose content high brightness low extractives content low, adjusted metal ion profile low brightness reversion

May, 2018

© Valmet | Jussi Mäntyniemi

188

5/23/2018

Cooking – the heart of dissolving wood pulp (DWP) production Top-quality dissolving pulp with Valmet cooking

Displacement prehydrolysis batch cooking

Continuous PreHyd cooking

 Proven to be best in high grade dissolving pulp production  The risk for production losses is very small

 Benefits with PreHyd™ vessel

 Very good for high strength SW Kraft Pulp.

7

May, 2018

 Alternative for mills aiming for swing production –

uniform heating to pre-hydrolysis temperature

–

well defined pre-hydrolysis zone

–

trouble-free operation

© Valmet | Jussi Mäntyniemi

Valmet the market leader in DWP cooking DWP cooking plants from 2008

8

Mill

Start-up Year

Valmet supply

Production

Raw material

DP grade

Confidential customer

2019

Cooking Plant

800 Adt/d

Eucalyptus

Viscose

StoraEnso Enocell, Finland

2019

Cooking plant – Rebuild conversion + add digs

1600 ADt/d

Birch, SW

Viscose

Arauco Valdivia, Chile

2019

Cooking plant – Rebuild conversion + add digs

1570 ADt/d

Eucalyptus

Viscose

Sun Paper, Laos

2018

Cooking plant

800 Adt/d

Eucalyptus

Viscose

Confidential customer

2018

Cooking plant – Rebuild conversion Hardwood

Viscose

RAPP, Indonesia

2015

Cooking plant – Rebuild conversion

Sappi Ngodwana, South-Africa

2013

Cooking plant

750 ADt/d

Eucalyptus

Viscose

DoubleA, Thailand

2013

Cooking plant – Rebuild conversion

500 ADt/d

Eucalyptus

Viscose

Phoenix Pulp & Paper, Thailand

2013

Cooking plant – Rebuild conversion

300 ADt/d

Eucalyptus

Viscose

StoraEnso Enocell, Finland

2012

Cooking plant – Rebuild conversion

500 ADt/d

Birch

Viscose

Sodra, Mörrum, Sweden

2011

Cooking plant – Rebuild conversion

500 ADt/d

Birch

Viscose

Anhui Huatai, China

2012

Cooking plant

350 ADt/d

P. massonian

Viscose

Hunan Juntai, China

2011

Cooking plant

960 ADt/d

P. massonian / Eucalyptus

Viscose

Qingshan, China

2011

Cooking plant

350 ADt/d

Pinus massonian

Viscose

Bahia Pulp, Brazil

2008

Cooking plant

1050 ADt/d

Eucalyptus

Acetate/ Viscose

May, 2018

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Customer example: Sappi Ngodwana, South Africa 210.000 adt/a DWP plant  New cooking plant and fiberline + rebuilds in other parts of the mill, started up in 2013 – Very quick and smooth start-up – Produced high-quality product immediately, the new fiber line produced inspec product within 72 hours of first chip feed – Produced 97% A-grade product for first year of operation – The process is robust and allows good control over product quality

 16 – 18 months between annual shut downs – only related to recovery boiler inspection.  High quality pulp all the time (>98% A-grade pulp in 2016)

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© Valmet | Jussi Mäntyniemi

Sappi & Valmet team-up in piloting second generation renewable sugar extraction  Near industrial size demo plant at the Ngodwana mill – Inauguration in April 2017

 The demo plant represents an industrial scaled-up version of the technology jointly developed by Sappi and Valmet.  The plant will make extract and make available industrial scale samples of sugar rich prehydrolysate liquors.  Possibility to test new ideas in mill scale – Improved dissolving pulp quality - process – Hydrolysate extraction – Sugar stream utilization

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May, 2018

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Lignin extraction and LignoBoost

Examples of new biotechnologies for additional revenue streams Lignin extraction and refining to value added products

Lignin

Biocoal Steam exploded pellets for boiler fuel from bark or forest residues

H2SO4 plant

Pulp Mill Hydro thermal carbonization

Biomass or lignin treatment for technical carbons or sludge treatment for boiler fuel

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May, 2018

On-site sulphuric acid production from NCG

Integrated pyrolysis

Gasification

Pyrolysis oil production from bark or forest residues Syngas production from bark or forest residues for lime kiln fuel

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LignoBoost process overview

Evaporation plant

H2SO4

Off-gas CO2

Black liquor ~40% DS

Filtration

Filtration and washing

Lignin lean black liquor Filtrate

Precipitation (High pH) 13

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Purification (Low pH)

© Valmet | Jussi Mäntyniemi

Sulphuric acid production from CNCG Improve the chemical balance at the mill  No sulfuric acid is bought from outside and chemical balance is improved  Sodium sulfate ash dumping is minimized  Savings in NaOH consumption  Sulfuric acid can potentially used in: – Tall oil separation plant – Bleaching plant – Lignin separation

 Sodium-bisulfite produced from the tail gas can be used in bleaching  First delivered plant at Metsä Group’s Äänekoski Bioproduct mill

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Purified lignin

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LignoBoost is a well proven technology

Ideas 1997

Screening starts 1999

R&D Breakthrough 2001

Small pilot trials 2003

The KAM programs 1996 - 2002

Large pilot trials 2004

Bäckhammar 8 000 t/y

Plymouth 25 000 t/y

Sunila 50 000 t/y

Bäckhammar Demo plant 2006

Plymouth start-up 2013

Sunila start-up 2015

Valmet acquisition of LignoBoost from RISE Bioeconomy (Innventia) 2008

The FRAM programs 2003 - 2009

The LignoFuel program 2009 - 2015

LignoBoost is the result of joint development projects involving both equipment suppliers, pulp manufacturers, research institutes and universities.

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© Valmet | Jussi Mäntyniemi

Two commercial LignoBoost plants in operation

Domtar Plymouth, USA, 2013  Annual capacity of 25,000 tons as dry lignin (65% DS) – Increase of pulp production capacity by 5% and efficiency by off-loading the recovery boiler – Domtar sells lignin as Bio Choice™ product

Stora Enso Sunila, Finland, 2015  Annual capacity of 50,000 tons as dry lignin (>95% DS) – Decreased use of fossil fuel – Lignin to new bio market – LineoTM

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Tailoring lignin for high-value applications LignoBoost lignin can be tailored to meet several quality specifications

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May, 2018

© Valmet | Jussi Mäntyniemi

Process concepts for tailoring LignoBoost lignin Lignin quality

LignoBoost concepts

Pure lignin

LB 1

LB 2

Odor free lignin

LB 1

LB 2

Ultra pure lignin

LB 1

Purification

Crude lignin

LB 1

Carbon green

LB 1

Fractionated

Fractionation

Water soluble

LB 1

Solid fuels Odor free

May, 2018

LB 2

Binders/Bioplastics/ Technical carbons Bioplastics/ Carbon fiber Transportation fuel/ Bioplastics/ Technical carbons

LB 2

HTC

LB 1 LB 2

LB 2 Soluble

LB 1: LignoBoost, first step LB 2: LignoBoost, second step 18

Application

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Technical carbons Bioplastics/ Carbon fiber Lignosulfonates/ Dispersants

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Road towards more valuable applications

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May, 2018

Current use:

Demonstration phase:

Future:

• Kraft lignin: mainly utilized as fuel • Lignosulphonates: commercial uses as dispersants, additives, raw materials for chemicals and dust suppression agent

• Biofuels • Thermoplastics • Polymers • Chemicals • Carbon fiber

• Carbon fiber • Composites • Technical carbons • Liquid fuels • Advanced platform chemicals

© Valmet | Jussi Mäntyniemi

Summary

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Technologies available to meet needs Growth from various product streams

Cost and production efficiency •

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May, 2018

Continuous investment P&D and production upgrades

Improved safety and environmental performance

Product differentiation •

Demand for speciality grades increses

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•

Tightening emission limits

•

New technologies available

New value-adding products and platforms for growth •

Bio based materials to replace fossil materials

•

High value uses for lignin and sugars

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