what a tree can do innovation enabling a more...
TRANSCRIPT
What a tree can do –innovation enabling a more sustainable futureJim Biasca, Country manager US operations
Stora Enso, Biomaterials division
The renewable materials company – our target
Everything that’s made with fossil-based materials
today can be made from a tree tomorrow
9/22/2018
Stora Enso Key Facts
2
Examples of our solutions replacing fossil-based materials today
EcoFishBoxby Stora Enso can replace
polystyrene packaging
Wooden construction
elements can replace concrete in buildings
Dissolving pulp can be
used for producing
textiles
Lignin can replace e.g. fossil-based
phenol in adhesives
Trayforma by Stora Enso can replace
plastic in e.g. frozen food packaging
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Stora Enso Key Facts
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30 countries, 26 000 stories
• A leading provider of renewable solutions
• Some 26 000 employees in 30 countries
• Sales in 2017: EUR 10.0 billion
• Shares listed on Nasdaq in Helsinki and Stockholm
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Stora Enso Key Facts
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Stora Enso worldwide
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Stora Enso Key Facts
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Countries where Stora Enso has
production, plantations, or projects
Stora Enso’s markets
Supported by the global megatrends
Major global trends drive the world’s demand for renewable
materials. Bio-based products are not only reusable, but also
renewable.
Growing
population
Growing
middle class
Urbanisation
Global
warming
DigitalisationChanging
lifestyles
Ecoawareness
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Stora Enso Key Facts
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Stora Enso strategy
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Customer insightDeveloping offerings in
accordance with customers’
needs to create value and growth,
with sales excellence.
Structured
processesClear roles and
responsibilities,
standardised and
harmonised working
methods, operational
excellence.
Motivated employeesFocus on inspiring leadership,
good communication,
performance management, and
target setting.
InnovationFocus on bio-based materials
and chemicals, digitalisation,
intelligent packaging, and
new packaging solutions.
9
Our road to success in the bioeconomy
Stora Enso Key Facts
9
xxxx xxxx xxxx xxxxIntroducing
new products
and services
Addressing
attractive
end-use
segments
Delivering
sustainable
profitable
growth
Generating
superior
ROCE
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Portfolio aimed at growth
Consumer
Board –
Expansion of
relative
market share
in profitable
niches
Packaging
Solutions –
Selective
profitable
growth
Wood
Products –
Accelerating
growth
Paper –
Strategy for
maximum
cash
generation
+Biomaterials –
Strengthening
current
business and
creating new
profitable
growth
+ ++
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Stora Enso Key Facts
10
Biomaterials division is in the heart of company transformation
7/3/201811
4 R&D centres
2 new products since 2014
6 strategic partnerships on innovation
7 digitalisation projects
Only 18% of our external
market pulp sales are geared to
the graphic paper market
60 countries
1 376 MEUR sales 2016
+13.5% Q3 YOY 2017
Well managed certified renewable raw material
Biomaterials has the widest offering in the market
14.8% ROOC Q3/2017
203 MEUR EBITQ1-Q3/2017
5 pulp millsFinland, Sweden, Brazil,
Uruguay
2.15MT market pulp
1 700 employees22% are women
Our three focus areas
Maximize value from eucalyptus pulp
• Continue to improve production efficiency
• Improve cost competitiveness in Montes del Plata
Differentiate our Nordic pulp business
• Reduce exposure in softwood
• Grow in fluff and dissolving pulp
• Continue to improve production efficiency
• Innovate on pulp applications with current customers
Create new platforms for growth
• We build and develop strong business on:-Improved pulp properties-Regenerated cellulose and MFC-Lignin-Bio-based chemicals-Extraction and separation technologies
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Stora Enso CMD
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Efficient use of raw material enable us to get many everyday products already today
14
30% of the wood can be used for sawn products.
70% for pulp and paper.
But through innovation we can get out more
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Technology platform for extraction & separation
Improved pulp
properties
Regenerated
cellulose & MFC
Lignin
Bio-based
chemicals
Innovation is key for sustainable profitable growth
1. Improved
pulp properties
2. Regenerated
cellulose & MFC3. Lignin
Technology platform for extraction & separation
4. Bio-based
chemicals
Product platforms
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Stora Enso CMD
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Platform 1: improving pulp properties for existing products
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Pulp
• Hygiene and health, growing by 3.6% per year
• Life expectancy and increased disposable income in developing countries
• Improve fluff pulp properties to increase customer value
• Dissolving pulp to textiles is a 6.1 Mt market, growing 6.8% per year
• The increase of cellulosic fibre in textiles is driven by global brand owners
• Improve quality to be able to differentiate in the value chain
Fluff pulp
Dissolving pulp
Pulp for specialty papers
Stora Enso CMD
• Flexible packaging, labels, security, décor, among others
• 28 Mt market, growing 1.8% per year
• Fibre improvements, special additives, sustainable coatings & barriers, source
reduction and other innovation opportunities Source: Smithers Pira, Hawkins Wright
Platform 2: Developing new technologies for using wood fibre in textiles, non-woven and specialty papers
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• Participate in the development of new technologies for using wood fibre in textile
• Growing interest from global brand owners increases demand for renewable fibres
• Opportunity to leverage on existing assets to enter this new market
• MFC has potential to be used in specialty papers and non-woven
• MFC is a versatile material with potential to work as strength enhancer, additive,
binder and barrier material
• Stora Enso has a long history in the research of MFC and has a demonstration
plant in Imatra, Finland
Regenerated cellulose
MFC
Stora Enso CMD
Source: Stora Enso
Platform 3: Lignin – big opportunities in many markets
8 November 2017 19
Lignin
• Phenolic resins is a 2.8 Mt market, growing at 4% CAGR
• It replaces phenol in adhesives for plywood, OSB (oriented strand board),
laminates, LVL and other wood construction materials
• The carbon footprint for lignin is roughly 1/10 of the carbon footprint of phenol
• Light-weight high performance composites
• 70–80 Kt market, growing at 9–12% CAGR
• Low-carbon-footprint carbon fibre is unoccupied market space
• Substitution of conventional hard carbon anode materials in energy storage,
namely Li-Ion Batteries and Supercapacitors
• Market growing on average by 20% CAGR
• Key applications: portable consumer electronics, power tools, electrical vehicles,
stationary applications and back-up systems
Phenol replacement
Carbon fibre
Energy storage
Stora Enso CMD
Source: Stora Enso, Carbon Composites, IDTechEx,
LuxResearch, Markets and Research, Zion Research
Platform 4: Bio-based chemicals replacing fossil-based materials
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• Key application is the xylitol (sweetener) market (approximately 120 Kt at 4–6%
CAGR)
• Compared to C6 sugars it still is a rather undeveloped market, mainly due to
lack of pure xylose availability. This is changing with the biorefinery concepts
• Growing interest and developments taking place in the market
• Stora Enso well positioned to be a frontrunner here
• Growing interest in packaging/bottling markets for renewable solutions
• Reduction on carbon footprint and enhanced properties are key target areas
• Market clearly favoring second generation biomass as the raw material source
• It is a very populated market place, thus, strategic alliances will be crucial to win
in this industry
Xylose
Bioplastics and intermediates
Stora Enso CMD
C5 and
C6
sugars
from
wood
Source: PwC, Kline and Industry experts
Enocell
dissolving
pulp
Strategic steps for new business and differentiationPulp business - New platforms for growth
Stora Enso CMD
8 November 2017 21
2012
Virdia
acquisition
2014
2015
2016
2017
Future growth
options
Montes del
Plata
hardwood
Sunila lignin
Innovation
centre for
biomaterials
Partnership with
Rennovia
B2X demo plant,
Raceland USA
2018
Skutskär
increased fluff
Grow in fluff
and dissolving
New business from
R&D platforms
Improve efficiency
and increase
output in existing
operations
2019
Enocell
dissolving pulp II
Lignin for Phenol ReplacementSunila mill, Finland
The LignoBoostTM processIn the mill
Black liquor outCooking chemicals and
organic substances
H2SO4
Pulp mill
Evaporation
Lime kiln
Lignin extracted
Dried lignin used as fuel in lime
kiln
Drying
Lignin opportunities
Potential in phenol replacement
Phenolic Resins 2,8 Mt Stora Enso
lignin production
1,6%
Total phenol market: 9,4 Mt
Other
6,6 Mt
Potential Market Value
for Lignin: ~1,7 B EUR
4% CAGR
Stora Enso lignin
production 50Kt
Benefits of replacing phenol with lignin
Improved
environmental footprintA safer alternative
Cost efficiency and
cost stability
Chemical
producers
OEMs
Testing lignin throughout the value chain
Resin producerPlywood/
OSB/HPL/LVLDistributors
End use
application
Microfibrillated Cellulose
Potential of microfibrillated cellulose (MFC)
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• Board and paper – strength, light weight, source reduction, barrier, surface properties
• Coatings and Adhesives – film formation, barrier, rheology
• Home and Personal care – texture, rheological profile
• Value added composites – strength, processing aid
• Food – texturizing agent, stability, rheology profile
• Natural product – renewable, biodegradable
• High surface area
• Strength enhancement
• High water retention capacity
• Recovers from high shear quickly
• Biodegradable and non-toxic
• Stable in a wide range of temperatures, pH and
salts
• Film forming properties
Properties Application area examples
Xylose for Natural SweetenerRaceland plant, USA-
New renewable products – xylose
• Our plant in Raceland, Louisiana, will extract xylose from sugar cane bagasse.
• The xylose will be further processed into xylitol, a natural sweetener.
• Our xylose can be used for example in food or oral care products.
Doing more with sugar cane waste
• This means that we will turn sugar cane bagasse, considered as agricultural waste, into a renewable and valuable product.
• Doing more with waste, and more out of the same agricultural land.
Bagasse to Xylose Process
Fiber de-
ashing
Hemicellulose
extraction
Crude xylose
refining
Xylose
polishing
Xylose
enrichment
(65% to 80%)
Xylose storageCustomers
(xylitol producers)
Bagasse storage
Partially
processed
bagasse for
glucose and
lignin production
From C5 sugars to xylitol market showing 4-6% CAGR
Sources PwC, Kline and Industry experts.
C5
sugars
BiomassLiquid
xylose
120 Kt market
4-6% CAGR
Xylitol producersStora Enso technology
Our Output: 7 Kt liquid xylose 4-6 Kt xylitol
End customers
Thank you!