The Integrated Forest Biorefinery pptx

EUROPEAN CONFERENCE on BIOREFINERY RESEARCH
Helsinki, 19 and 20 October 2006
The Integrated Forest Biorefinery
Markku Karlsson
UPM-Kymmene Corporation
Outline
z Transformation: an industry in transformation prompts action
and change in forest cluster structure
z Two suplementary platforms, FTP (Forest-Based Industries
Technology Platform) and BFT (Biofuels for Transport) outline
major transformation efforts
z How we communicate with EU-level roadmaps: The Finnish
ClusterTech project
z Technology Development: Trends and Examples
z Conclusion
Business Environment
Paper Industry in Transformation
z Capabilities needed
● Top management
production focused
● Result ?
z Industry behavior
● Strong consolidation
started
● Adaption to media
competition
● Uneven global growth
(stagnated, mature and
growing markets)
z Industry behavior
● Response to media

competition
● Understanding of regional
differences in mature and
emerging markets
● Additional management of
non-paper business
(Revised strategy)
≤ 90’s Today 2010+
z Industry behavior
● Struggle within the
industry going from
regional to global
z Capabilities needed
● Cost and short-term
focused management
z Customer requirements
● Quality and grade
development driving
forces
z Customer requirements
● Quality and grade
streamlining
as driving
force
● Increasing markets in
emerging countries
z Customer requirements
● Quality and grade
specialization
as driving

force
● Choice between different
media
z Capabilities needed
● Adaptive and healthy long-
term performance of
global industry
Driving force
• Energy scarcity
Technologies
• Simplification of
paper making
processes
• Embedded
automation and
measurement
systems with ICT
• Layering concept/
fractionation with
embedded chemistry
Solutions
• Global
Driving force:
• Water scarcity
• Logistic shrink
Technologies:
• Higher web forming
consistencies
• Natural and bio-
degradable process

chemicals / fillers and
binders
• New energy and
water saving
processes
Solutions
• Emerging & regional
Driving force:
• Raw material scarcity
(fiber, oil-based
polymers, pigments)
Technologies:
• Utilization of biomass
for multiple purposes
• biorefinery
• Nanotechnology
applications
• Application-specific
optimization of raw
materials by genetic
engineering
• “One-man paper
machine”
Solutions
• All regional
Time period 0-5 a Time period 5-10 a
Time period
10+
Forest Industry Roadmap
Future Papermaking Visions

Forest Industry Roadmap
Forest cluster today and in long-term
Machine
ProcessPulp and
Paper
M/C with
embedded
automation
Bioenergy
Printed
intelligence
Pulp and
Paper
Process and product innovations
Process, product and
service innovations
Forest Industry Roadmap
The Priorities of the Finnish Forest
Cluster’s Research
Renewal
S
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1. Smart wood and
fibre products
2. New products made
from wood-based

materials
3. A biorefinery that
utilises wood
diversely
4. Sustainable forest
management
5. Increased value for
wood biomass
6. Intelligent, resource-
efficient production
technologies
7. Customer solutions for
the future
•Next steps for implementing?
European Industrial Technology
Platforms
•The supplementary platforms –
how to develop thorough
multidisciplinary co-operation ?
Roadmap Pulp and Paper
Processing Technologies
Process technologies for wood-based bio-refineries
Re-engineering the fibre-based value chain
Creation of flexible and scalable production systems
today short term
medium
term
long term
TIME
Efficient materials usage, including recycled materials, water and waste

Increasing resource efficiency in pulp & paper production and converting
Development of radically new technologies substituting energy-intensive processes
Technologies for converting wood-based biomass into energy carriers
Energy carriers from wood-biomass
TARGETS
Flexibility
in production
Customer-oriented
Products &
Services
Enhanced
Efficiency
Improved
Sustainability
Production technologies for new fibre-based products
Technologies for flexible, on-demand printing and packaging manufacture
priority area
Source: Fraunhofer
Biofuels for Transport
Bio-based Products Market Forecast

0
5
10
15
20
25
30
35
40

45
biofuels plant extracts pharma
ingredients
bulk chemicals
and polymers
food/feed
ingredients
oleochemicals enzymes others
2005 2010
2005: 77 billion EUR IB related sales in chemicals (7% sales of the chemical industry)
2010: 125 billion EUR IB related sales in chemicals (10% sales of the chemical industry)
McKinsey - 2006
Broad
focus
Narrow
focus
Bio-
energy
Technology
and
processes
Cases taking a broader,
national view with a
biofuel emphasis
Cases taking a broader,
national view with an
emphasis on new technologies
and processes
Cases focussing
more narrowly on

a topic linked to
bioenergy
Cases focussing
more narrowly on
a topic linked to
new technologies
and processes
In this way,
the wide
interests of
the
participants
canbebest
covered –
and an EU-
level
roadmap
constructed
In this way,
the wide
interests of
the
participants
canbebest
covered –
and an EU-
level
roadmap
constructed
National and EU-level Roadmaps

ClusterTech approach
Broad
focus
Narrow
focus
Bio-
energy
Technology
and
processes
National and EU-level Roadmaps
ClusterTech Cases
ExtremeTech
Finland2020
Reducing fossil fuel dependency
50/60 for growth
Focus: Narrow to Broad
E
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Technology Development -
New Pulp Mills and Lines
602xxx01
During the last five years the majority of new pulp mills and pulp making
lines have been built in China.
0
2000
4000
6000
8000
10000
12000
14000
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
1000 ton
Oceania
Africa
Latin America

Middle East
Rest of Asia
China
Japan
North America
Eastern Europe
Rest of Western
Europe
Nordic Countries
0 %
20 %
40 %
60 %
80 %
100 %
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
1000 ton
Source: Pöyry
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
1995

1997
1999
2001
2003
2005
2007
Oceania
Africa
Latin America
Near East
Rest of Asia
China
Japan
North America
East Europe
Oth W. Europe
Scandinavia
Technology Development
New Paper Machine Start-ups
Ktpy (capacity)
¾ Traditional pulp and paper making on the way to China !
¾ How we can specialize to stay competitive ?
0 %
20 %
40 %
60 %
80 %
100 %
1995
1997

1999
2001
2003
2005
2007
Source: Hannu Oinonen
Forest biomass
in future also
urban waste and straw
- Southern hemisphere
plantations
Biofuel production
Optional Biofuels:
(pellets)
bio crude
EtOH/MeOH
SyntheticDiesel
Bark
Wood
residues
Pulp & Paper
Mill
Wood
handling
Bark
boiler
Power
Heat
Power
Steam

Refinery
Crude Oil
BioElectricity
< 500 MWf
< 400 MWf
Paper and
Market pulp
Biochemicals
Source: VTT
Technology Development
Options for forest industry
Technology Development:
Bark Dryer
z The heating value of forest
residues can be doubled
by waste heat dryer. The moisture
content from 50 to 30 w-%
z -> Low value residues instead of
roundwood
¾ double heating value achieved
¾ reduced emission level
Technology Developments
Near Future
• For some time, evolutionary development with larger and
streamlined mills and logistic chains.
• More careful segregation of wood raw material. Non-wood and
recycled fibers seeking new position.
• Potential breakthrough technologies in pulping can include:
sulphur-free pulping for hardwoods… higher consistencies in paper
making… functional and add value products for consumers

• Gasification of solid biofuels/black liquor for production of bioenergy
The Integrated Forest Biorefinery
Conclusions
z The European forest industry, for the first time, gathered its
collective strength in both FTP and BFT – and is seriously
examining future technology options
z First time, in the Finnish ClusterTech project, a wide cross-
cluster base of forest, energy and chemicals together
prepares future R&D focus. Outcome is both national and
EU-level global scenarios and roadmaps, such as “50/60”,
“ExtremeTech”, “Cut down oil dependency”.
z Concrete RTD&D&D plans.
z The forest industry and the food industry offer the only short
term options for concrete solutions – in the forest case, based
on wood residues
KUIVURI
ILMA
KATTILA
TEHDAS
KUORI
PUU
PAPERI
SELLU
JÄTEVESI
PÄÄSTÖT
TEHOKKUUS
HÖYRY-
Technology Development
Power Without Greenhouse Gases

Source: Andritz Oy / P. Rahkila