STRENGTHENINGTHE CANADIAN PULP AND PAPER

INDUSTRYTRACKING THE IMPACTS OF

ENERGY OPTIMIZATION STUDIES

2012–2018

STRENGTHENINGTHE CANADIAN PULP AND PAPER

INDUSTRYTRACKING THE IMPACTS OF ENERGY OPTIMIZATION STUDIES

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The pulp and paper (P&P) industry is at a key turning point: mills are facing new challenges to remain competitive, such as the production of new pulp and paper grades, the integration of clean technologies and biorefineries, fuel switching, carbon taxes, and biomass supply issues.

Energy optimization studies are a powerful tool for optimizing energy use and power generation in industrial facilities. They analyze the way heat is used to determine where it can be recovered and better applied throughout the facility. Savings can be multiplied when studies examine energy systems as a whole, rather than consider equipment parts in isolation. Along with other tools like advanced data analytics and cogeneration optimization, energy optimization studies can help industry optimize operations and adequately plan for future energy-related investments.

Though biomass provides 60% of the sector’s energy, fossil fuels are still widely used. Fortunately, many opportunities exist to cost-effectively reduce energy consumption, increase sales of green power, lower emissions and support the transition to a low-carbon economy.

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$55M+$55M+ANNUALENERGY SAVINGS 1515

PULP AND PAPER MILLS

6 years6 years

Contributes solid policy knowledge and program development in support

to the industry.

NRCan’s Canadian Forest Service

The Canadian centre of expertise in process integration, o�ering a unique suite of utility

and process optimization tools and knowledge.

NRCan’s CanmetENERGY

Possesses strong know-how and under-

standing of pulp and paper processes, product quality

and operability impacts.

FPInnovations

77PROVINCESPROVINCES

A WINNING FORMULA

Since 2012, FPInnovations and Natural Resources Canada (NRCan) have collaborated on a series of energy optimization studies in industry, identifying opportunities to minimize energy use and increase revenue from power sales.

Over the past 6 years, this partnership has identified $55M+/year in prospective energy savings and additional power generation

opportunities in 15 pulp and paper mills, across 7 provinces.

APPROACH TO AN ENERGY OPTIMIZATION STUDY

Typical areas of improvement found in plants include:

Energy and process specialists from CanmetENERGYand FPInnovations engage with mill personnel to gather extensive data on process operations.

The data is used to build an energy model of actual plant operations.

The energy model is analyzed using specialized software tools developed by CanmetENERGY, such as INTEGRATION, COGEN and EXPLORE.

The results help identify opportunities to save energy and money, reduce heating and cooling needs, and optimally manage electricity production.

Utility and cogeneration

system optimization

Operational changes

and improved control

strategies

Heat recovery from

process streams, effluents

and exhaust gases

Process and utility system

debottlenecking

Water savings

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PROPOSED PROJECTS ARE OUTLINED IN A CLEAR ACTION PLAN OR ROADMAP.

The impact of the energy optimization studies was evaluated based on:

INTANGIBLE benefits

Developing a process integration mentality within

a mill’s organizational culture, understanding cross-e�ects

between departments, developing a longer-term

investment strategy to energy, etc.

TANGIBLE benefits

Using four key performance indicators:

• Annual fuel savings

• Increased power generation

• Annual GHG reductions

• Annual economic benefits

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FINANCIAL AND ENVIRONMENTAL IMPACTS

>> Over $55M/year in potential energy savings and additional power generation revenues

>> 240 kt/year in potential direct and indirect GHG emissions reduction (over 1 Mt/year if measures are applied to the entire pulp and paper sector).

Table 1. Potential Savings and Additional Power Generation Revenues| 6

$M/year

0 3 6 9 12 15

Mill 15

Mill 14

Mill 13

Mill 12

Mill 11

Mill 10

Mill 9

Mill 8

Mill 7

Mill 6

Mill 5

Mill 4

Mill 3

Mill 2

Mill 1

$55MOver

/year

in potential savings and revenues

15 studies have been monitored

for implementation.

10 out of

Fuel savings

Identified 4,298,300 GJ/yr. Enough to heat 6,500 homes

Implemented* 849,380 GJ/yr. (20%)

Additional power generation

Identified 69 GWh/yr. Equivalent to the electricity consumption of 15,000 Canadians

Implemented* 35 GWh/yr. (51%)

GHG emissions reduction

Identified 240 kt of CO2/yr. Equivalent to the emissions of 62,000 cars

Implemented* 135 kt of CO2/yr. (56%)

*Or scheduled for implementation

Table 2. Project Implementation

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$8.9M/year SAVINGS AND ADDITIONAL REVENUES OBTAINED,

REPRESENTING 40% OF POTENTIAL SAVINGS IDENTIFIED In the 10 mills that were monitored, the results below were demonstrated.

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ORGANIZATIONAL AND SOCIAL IMPACTS

Further to the financial benefits and GHG reductions obtained, the studies performed had an impact at several levels.

ORGANIZATIONAL CULTURE AND DECISION-MAKING:

> Developing strategic action plans for fuel savings, power generation and GHG management, which facilitate decision-making.

> Improving data and knowledge for contract renegotiation with utility companies.

> Changing the perception and approach to energy efficiency by demonstrating savings potential and creating new momentum to save energy.

MILL EFFICIENCY:

> Limiting boiler trips and unplanned shutdowns.

> Enhancing understanding of cross-effects between mill departments.

> Reducing water usage and effluent generation.

JOB CREATION AND STABILITY:

> Maintaining jobs in facilities facing hard times, through improved mill profitability.

> Creating jobs in engineering firms that performed the detailed engineering studies, and for local contractors that implemented the proposed projects.

05

1015

20

Mill 15

Mill 14

Mill 13

Mill 12

Mill 11

Mill 10

Mill 9

Mill 8

Mill 7

Mill 6

Mill 5

Mill 4

Mill 3

Mill 2

Mill 1

05

1015

20

Mill 15

Mill 14

Mill 13

Mill 12

Mill 11

Mill 10

Mill 9

Mill 8

Mill 7

Mill 6

Mill 5

Mill 4

Mill 3

Mill 2

Mill 1

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THE ROAD AHEAD

The first phase of this impact assessment study was performed in 10 mills. The results achieved are promising,

with excellent potential for further implementation.

Our work underscores how this powerful approach can improve energy efficiency and reduce GHG emissions, while increasing competitiveness and supporting employment in Canadian industries. Technical support for project implementation and adequate impact monitoring are essential to the success of energy optimization studies.

Through monitoring, several other opportunities and lessons learned were identified to increase the implementation of proposed projects:

Appropriate engagement

Involve the accounting department and senior management at each major step of the study.

Improve engagement of mill operating staff by working with them to highlight opportunities.

Support the implementation of no- and low-cost projects.

Involve the mill’s engineering company towards the end of the project, and adequately support the selected company for knowledge transfer.

Effective communication

Develop simple Executive Summaries for company executives, in their preferred format.

Improve communication with senior management.

Increase follow-up after study.

Sufficient resources

Prior to the study, ensure the mill allocates enough capital to energy-saving measures.

In future work performed under this partnership, the knowledge and tools developed will be broadly

transferred to industry. Pathways to support the optimization of heat recovery, the use of lower carbon fuels,

the diversification of production and the optimization of value chains will be developed and demonstrated.

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Natural Resources Canada

1615 Lionel-Boulet Boulevard, PO Box 4800

Varennes, Qc J3X 1S6

nrcan.gc.ca

FPInnovations

570 Boul. St-Jean

Pointe-Claire, Qc H9R 3J9

fpinnovations.ca

Cat no.: M154-130/2018E-PDF

ISBN: 978-0-660-27886-5

© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources Canada, 2018.