DON''''T MISS THE PITA ENERGY EVENT! potx

Paper Technology
The official journal of the Paper Industry Technical Association
Paper Technology
The official journal of the Paper Industry Technical Association
Volume 47 number 6
September 2006
DON’T MISS THE PITA ENERGY EVENT!
SEPTEMBER 21ST – WARRINGTON
SEE INSIDE FOR DETAILS
Paper Technology
The official journal of the Paper Industry Technical Association
Volume 47
Number 6
September 2006
eatures
f
2 . . . .Comment
3 . . . .News
13 . . . .PITA Affairs
16 . . . .Energy Event
Programme
46 . . . .Industry Update
51 . . . .Products & Services
Directory
55 . . . .Installations
59 . . . .Coming Events
63 . . . .PITA Calendar
64 . . . .Calendar of World
Events
17 . . . . .Energy Efficiency – A Process Supplier’s View

Sören Köster
Energy, which accounts for 13% of a German newsprint mill’s production
costs, can be saved via process optimization. This feature focuses on the
energy dimensions of general mill investment projects.
24 . . . . .
Paper Porosity Online Profiling
Antti Paavola
The new Honeywell sensor enhances on line MD and CD control of poros-
ity, a property which is important for almost all paper grades.
31 . . . . .Sticky and trash removal techniques
Helmuth Gabl, Udo Hamm, Brigitte Bobek, Hans-Joachim Putz, Samuel Schabel,
Lutz Hamann, Oliver Cordier, Johannes Kappen & Dieter Pauly
New processes which will radically change the European Pulp & Paper
Industry are the focus of the EcoTarget research project. This feature
describes progress in the field of sticky removal techniques.
35 . . . . .Methods used for measurement of stickies
Helmuth Gabl, Udo Hamm, Brigitte Bobek, Hans-Joachim Putz, Samuel Schabel,
Lutz Hamann, Oliver Cordier, Johannes Kappen & Dieter Pauly
The lack of recognized test methods for stickies is still a major obstacle to
progress in controlling the sticky problems in recycling mills. EcoTarget
aims to develop new measuring techniques.
41 . . . . .
Zellstoff Stendal, a state-of-the-art pulp mill
Alpo Tuomi
The 552,000 tpy Stendal pulp mill ramped up to 95% of capacity in the 1st
Quarter of 2006 - not quite 2 years after start-up in 2004
FRONT COVER PICTURE
The UK Paper Industry currently faces one of
the toughest challenges it has confronted in modern
times. Energy prices are rising at an unprecedented

rate, and nowhere more so than in the UK, at a time
when Environmental and Commercial pressures have
never been higher. The first half of 2006 has seen the
industry lose mills at a rate of almost one a month and
there is little sign of the situation changing.
However, there are measures that can be taken to
recover some of this lost margin and this is your oppor-
tunity to discover what can be done to protect your mill
and your job.
PITA are holding an Energy Event on September 21st to
answer some questions. Turn to page 16 for a full pro-
gramme and the inside back cover for how to register.
In Europe, liberalization is incomplete and the
corresponding lack of transparency is fostering
gas hoarding, cross-border bottlenecks and price
surges.
In November 2005, the EU published the find-
ings of a country-by-country review of the
implementation of the energy directives. It
revealed that gas and electricity markets are still
largely national and many of the old national
monopolies continue to operate at network,
wholesale and distribution levels.
Russian gas, which is playing an increasingly
important role in Western Europe, is sold into pre-
contracted markets, within which Gazprom forms
contracts with the strongest incumbent player.
This survival of vertical integration is handi-
capping new players and causing “serious
malfunctions” in the market, such as:

• Endemic transparency issues - a lack of data
on the technical availability of inter-connec-
tors and transmission networks, which puts
new suppliers at a disadvantage.
• Prices rates are administered rather than mar-
ket led, and there may be anti-competitive
practices. There is an urgent need for transpar-
ent market mechanism for setting prices, says
the EU’s Competition Commissioner, Neelie
Kroes.
• Gas storage is driven by political rather than
commercial considerations, security of domes-
tic supply being the main concern.
Thus, in the Winter of 2005-06, even though
UK prices were the highest in Europe, gas sup-
plies remained in storage, in a market dominated
by security of supply.
In the UK, the wholesale gas price index has
risen by 170% since the beginning of 2004, and
electricity prices have increased by 140%.
High costs are driving small mills out of busi-
ness - 12 mills have closed down since the start
of 2005, and Smurfit Kappa points to energy as a
major factor in the impending closure of the
papermaking operation at Snodland.
The energy problem is rooted in:
i) the UK’s rapid transition from net exporter to
net importer of gas and the fact that an ade-
quate supply infrastructure will not be in place
until 2007/2008, pages 6-7.

ii) An oil market alive with fears about security
of supply. This is driving prices - up by 89%
to $55 a barrel from 2003 to 2005; and, by
another 18% in the 1st Half of 2006, pages 8-
9. A $10 increase per barrel of oil adds 7p per
therm to the price of gas.
iii)The energy markets of the EU, which are not
yet working properly because regional monop-
olies are obstructing the flow of gas across
frontiers. Last winter, for example, the Inter-
connector, which pipes gas from Belgium to
the UK, ran at only one third of capacity even
though acute shortages drove UK prices to
peaks of 155p and 187p a therm.
Liberalizing European energy markets
The EU started to move towards open, com-
petitive markets in the mid 1990s, a decade after
the start of privatization in the UK. The essential
requirement for competition is the unbundling of
the market, ie, the split up of the various func-
tions - generation, transmission and supply -
which had been integrated by incumbents, such
as the former British Gas.
2
Comment
Soaring UK energy prices – the driving forces
By M.E. Marley
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ISSN 0 306-252X
EU ENERGY DIRECTIVES 1996-2007
1996-98 1st Electricity and Gas Directives
To create an open and competitive market
2001 EC Communication on the need for amendments to Energy Directives
2003 2nd Gas & Electricity Directives adopted
2004-07 Transposition into National Law
2004 Open markets for industrial consumers
2007 Deadline: Open markets for all consumers
Soaring energy prices - up by 150% in the UK
since January 2004 - will put a triple squeeze on

European papermakers in the coming years,
according to Magnus Hall of Holmen, at the 2006
PRIMA Conference, figure 1. The squeeze will
result from:
• the European energy market
• EU energy policies
• the industry’s inability to recoup cost increases
in a marketplace which is characterised by
oversupply and hard fought price hikes,
figure 2.
The energy market: While the soaring price of
oil is inflating the profits of the incumbent compa-
nies which dominate the energy markets of
Europe, it is driving energy-intensive paper mills
out of business.
Over the last year, the operating margins of
Energy Companies rose from 34.4% to 37.7% -
figure 3. Over the same period, 12 UK mills closed
down, many of them citing soaring energy costs as
the last straw in the battle for survival, see page 6.
Emission Trading: The Emission Allowance
regime of the EU is driving prices upwards by cre-
ating a “virtual” cost for the marginal production
of electrical energy.
This is handicapping European papermakers
vis-a-vis their global competitors who are not bur-
dened by the cost of emission allowances.
Instead of the country-specific emissions of the
Kyoto Protocol, these competitors have opted for
the alternative approach of the Partnership on

Clean Development and Climate - ie a focus on
the progressive reduction of emissions via the
development of new technologies.
The clean climate partnership
The Partnership includes major players in the
pulp and paper world: the USA, Japan, China,
India, Australia and South Korea.
In view of these developments, the survival of
the Kyoto Model beyond 2012 is a moot point.
In the meantime, European producers are being
hit hard by a policy which, even if it achieves the
targeted 8% reduction in emissions by 2012, can
have only a limited impact on climate change,
3
News
Soaring costs underline need for a new generation EU energy policy
by M.E. Marley
Energy Companies make Huge Profit Margins
Operating Margins 2005 Q1 2006
Selected Energy Companies 34.2% 37.7%
Selected Pulp and Paper Companies 4.6% 5.9%
Typical EBIT/Sales in 2005
Prices: Electricity and Emission Rights
Source: Holmen
Printers
Chemicals &
Machinery
Suppliers
5-10% 40-45% –2-3% 2-3% –3-5% 10-20%
Oversupply Oversupply

Merchants
Paper
Producers
(Europe)
Pulp
Producers
(Brazil)
Chemicals &
Machinery
Suppliers
Figure 2: 2005 was a difficult year for European paper companies, many of
which operated at a loss. From the presentation by Outi Ervasti of
Poyry Forest Industry Consulting at PRIMA06.
Figure 1: Energy costs continue to rise. European papermakers have the
additional cost burden of the Emission Allowance Scheme which is
driving electricity prices upward
Figure 3: Papermaking profits are improving in 2006 but margins are low.
Source: Holmen
Europe being responsible for just 10% of the
world’s CO
2
emissions.
The Finns, who currently hold the Presidency
of the EU, are therefore calling for a new approach
to environmental policy, including a review of the
emission trading system - in terms of its costs and
achievements.
In mid July, at an unofficial meeting of Euro-
pean Environment Ministers, Helsinki submitted a
discussion document entitled: Towards a New Gen-

eration of Environmental Policy - the Next Step.
Renewable Energy Policy: The cost of pulp-
wood is being driven upward by RE policies
which are subsidising the use of wood as biofuel.
In addition, energy producers are attracted to CO
2
-
neutral roundwood by the lucrative trade in
emission allowances.
In Sweden, the use of biofuels by
CHP plant has
increased 20 fold over the 1980 to 2004 period -
up from 2TWh to 40TWh, of which, 20TWh is
derived from wood, figure 4.
Holmen expects that these developments will
create ‘stiff competion’ between mills and
CHP
plant for roundwood in future years.
This damaging clash could be avoided, if biofuel
subsidies were limited to wood residues - thinnings,
branches, tree tops and stumps - which are used to
produce power within the pulp and paper industry,
says the Finnish Forest Industries Federation.
Costs and prices: a widening gap
For an industry which is returning to low profit
margins after the losses of 2005, figures 2 and 3,
these cost burdens are hard to bear, especially
since there is little chance of recuperative price
increases in highly competitive paper markets.
Since 2004, the escalating cost of electricity -

up from € 25 to € 55 per kWh - has added € 100 to
the cost of producing newsprint from TMP,
figure 5.
Over the same period, there has been no real
improvement in the price of standard 45g/m
2
newsprint, the benchmark grade. At € 519 per
tonne today - after a succession of price hikes in
2005 and 2006 - newsprint is still climbing
towards the 2003 high of € 560, and is well below
the 2001 peak of € 640 a tonne.
While the high energy cost of mechanical pulp-
ing - 20% of total production costs - is pushing up
the cost of producing publication grades, there are
also significant increases in grades made from
chemical pulp and recycled fibre.
Figure 6 shows the relationship between these
cost increases and the required price increases in
different paper grades - some € 30 for coated
woodfrees and € 40-€ 50 for recycled newsprint.
Figure 6 also shows how the costs for News
TMP, SC and LWC grades can be reduced by the
Best Available Technology.
In the case of
TMP newsprint, specific energy
consumption has been reduced from 3200 kWh per
ton to 1900 kWh over the last 30 years. Additional
improvments, which will bring consumption to
1400 kWh/ton, are possible, figure 8, facing page.
PAPER TECHNOLOGY SEPTEMBER 2006 NEWS

4
Figure 4: The paper industry will face stiff competition from CHP plant for
the purchase of roundwood. EU subsidies are promoting the use
of wood as a biofuel. In addition, as a fuel, CO
2
– neutral round-
wood benefits from the lucrative trade in emission allowances.
Source: STEM/ Holmen
Rising Consumption of Biofuel in CHP Plant
Figure 5: The price of electricity had doubled since 2004 and added € 100 to
the cost of producing a ton of TMP newsprint
Electricity Costs for Different Grades
Source: Holmen
Figure 6: Shows i) the relationship between cost increases and the required
price increases for newsprint, LWC, coated woodfree and SC
grades and ii) the impact of BAT in reducing energy costs.
Sensitivity of Publication Grades to Cost Increases
for Electricity and Fibre
Fibre
Source: Holmen
To survive in an era of expensive energy, the pulp
and paper industry is launching new initiatives - at
company, national and international level. In Sweden,
for example:
• Pulp and Paper Companies are forming power gener-
ation alliances with other energy intensive industries.
The investments of the BasEl alliance will provide:
i) an independent source of power. The target is an
extra 10TWh, of which 8 TWh will come from a
purpose built supply line from Russia.

ii) the leverage to put pressure on general market
prices and secure competitive pricing. BasEl
accounts for 20% of the electricity consumed in
Sweden.
• At mill level, investment in back pressure power has
resumed after a lull in the late 1980s and early1990s,
when output dropped from 4TWh to 2.5 TWh. Now,
on the increase again, output is expected to reach 4.5
TWh by 2010 and 5TWh by 2020.
Energy efficiency and BAT
At mill level, there is an intensified focus on the
Best Available Technology (BAT) for unit processes
such as mechanical pulping. In the latter, energy
accounts for 20% of produciton costs compared with
just 2% in chemical pulping.
Figure 8 shows the dramatic reduction in the specific
energy consumption which BAT can bring to the TMP
process. And, further reduction to 1700 kWh and
1400kWh are possible’, says Magnus Hall of Holmen.
At national level there is a need for more power gen-
erating capacity. And, since fossil fuel is expensive and
the prospects for wind and hydro power are limited,
industry is lobbying for:
• New investments in nuclear energy, Figure 7 shows
the structure of generating capacity in Holmen’s 3
main spheres of operation - Spain, Sweden and the
UK.
• A speed- up of the permitting process for new elec-
tricity generating capacity. Currently, the lead time is
very long.

At international level, The Finnish Presidency of the
EU may see the birth of a new generation of environ-
mental policies - policies with global reach and
designed to protect both the environment and the com-
petitiveness of European industry.
The Finns are calling for a revision of the Emissions
and Renewable Energy policies and are urging the EU
to adopt the approach which has made the pulp and
paper industry Europe’s biggest producer and user of
renewable energy, ie
• the use of forest residues - thinnings, branches, tree
tops stumps - rather than industrial grade roundwood
for fuel
‘The burning of industrial grade wood has negative
consequences on employment and reduces the income
generated from wood,’ says the Finnish Forest Indus-
tries Federation. ‘Moreover, at the end of their life
cycle and after recycling, wood and paper products can
still be used as bioenergy.
PAPER TECHNOLOGY SEPTEMBER 2006 NEWS
5
The path to cost-effective energy: power generation alliances and BAT
Figure 7: Swedish paper companies are entering into power generation
alliances with other industries – the Swedish Base Industries
Electricity Company, for example. The BasEl alliance accounts
for 20% of Sweden’s electricity consumption.
Power Generation in Spain, UK and Sweden
Source: Holmen
Figure 8: BAT for mechanical pulping - energy consumption has been
reduced radically and is still falling.

Specific Energy Consumption by TMP Process
Figure 9: In the energy intensive mechanical pulping process, energy
accounts for 20% of production costs, compared with only 2%
in chemical pulping
Distribution of Production Costs for Pulping
Source: Holmen
Source: Holmen
by M.E. Marley
UK papermakers are bracing themselves for a wave of crip-
pling energy costs similar to those of last Winter - as they watch
forward prices for the Winter of 2006/7 soar beyond the current
prompt price by a factor of 3.
As the recent White Paper on Energy offers no solutions, “the
UK paper industry is likely to be hit by extremely high energy
prices again, which could result in more mill closures”, says
David Morgan, Head of Regulatory Affairs at CPI.
Since the start of 2005, 12 UK mills have closed down includ-
ing Smith Anderson in Fife, Sappi in Hemel Hempstead, and
Edward Thompson in Sunderland. Most of them cite high energy
prices as a major cause.
The price increases are immense. Since January 2004 the
wholesale gas price index has risen by 170% and electricity prices
have increased by 140%. In the tissue sector, the average cost of
energy rose to some 25% of total manufacturing cost in 2005.
The high UK prices are driven by the global rise in oil prices -
up 89% from 2003-2005 - and intensified by domestic conditions:
• Declining UK output. After 10 years as a net exporter of gas,
the UK became a net importer in 2004, figure 1.
• The lack of adequate import storage facilities - the capacity to
respond to peaks in demand in the Winter months. The transi-

tion from net exports to net imports has been more rapid than
forecast, causing a time lag of 2 - 3 years in the start up of the
new supply infrastructure, most of which is due to come on
stream next year, figures 2 and 3.
• The failure of the existing supply lines to work properly, in
particular the Interconnector through which gas is piped from
Zeebrugge in Belgium to Bacton in Norfolk. The capacity of
the Interconnector was increased in the Autumn of 2005 -
from 8.5 billion m
3
a year to 16.5 bm
3
/y - and the National
Grid expected it to deliver an average 42 million cubic meters
a day until March 2006. Instead, it delivered just 15 mm
3
/d,
less than one third of its capacity, even though tight supply had
pushed UK prices to 180p a therm. The current price is around
40p a therm.
New supply lines in place by 2007
Commentators expect that these supply problems will be
resolved next year when several new supply lines come on
stream. They include new pipelines from:
PAPER TECHNOLOGY SEPTEMBER 2006 NEWS
6
UK mills prepare for an energy crisis in the Winter months
Norway: The Langeledd pipeline will bring in oil from the
Ormen Lange field to Easington in the East Riding. It will have
the capacity to supply 20% of the UK’s gas demand and is due to

start delivering gas in 2007. The Statfjord Late Life Field is also
expected to start supplying the UK in 2007.
The Netherlands: The BBL pipeline is being laid between
Balgzand on the Dutch coast and Bacton in North Norfolk. It is
expected to be operational by the end of 2006; and, at full capac-
ity, it will supply up to 13% of UK demand. BBL is a joint
venture by Dutch, Belgian and Germany energy companies.
Russia, the world's leading gas exporter, is extending its reach
into Western Europe, via Gazprom, a state-controlled company.
Gazprom and Gasunie of the Netherlands are negotiating a recip-
rocal stakeholding in the BBL pipeline and the North-European
Gas Pipeline.
The North European Pipeline is being laid underneath the
Baltic, between Vyborg on the Russian coast and Greifswald in
north- east Germany. It is due to come on stream in 2010.
Earlier this year, Gazprom expressed an interest in acquiring
Centrica, the owner of British Gas.
Belgium: The capacity of the Interconnector is being
expanded to 24 billion m
3
. The new capacity will come on stream
in October, before the onset of Winter. Another phase of expan-
sion is being planned for next year, with start up pencilled in for
October 2007. It will increase capacity by another 2 billion m
3
a
year, enabling the Interconnector to supply up to 25% of UK
demand.
Liquid Natural Gas: In addition to new pipeline supplies, the
UK is also investing in huge storage and processing terminals for

Liquid Natural Gas.
The Isle of Grain terminal, which started up in 2005, some 20
miles east of London, sends up to 3.3 million tonnes of
LNG into
the transmission system every year. An expansion programme
will increase capacity to some 9.8 million tonnes by 2008.
In South Wales, the Dragon and South Hook terminals are
being developed; and, in 2008, a huge LNG terminal will come on
stream in Anglesey.
The need for a single liberalized market
With these developments, the UK grid will be plugged into a
vast and diversified supply network, which, by 2010, will be sup-
plying 50% of demand.
But the question is: Will the infrastructure function as it
should? The current expansion of the Interconnector will be of lit-
tle use if increased capacity does not translate into the additional
volumes required in the UK.
Despite an EU Directive which promotes 3rd party access to
the distribution networks, the system is not working. Sufficient
gas was not made available at Zeebrugge for export to the UK
last Winter, a fact which is variously attributed to:
i) bottlenecks in the European distribution network
ii) the priorities of European energy companies and their fears of
a shortfall in domestic supply at a time of rising demand. In the
Winter of 2003-04, before security of supply became a driving
force, the Interconnector ran at maximum export mode to meet
UK demand.
In the recent White Paper on Energy, the UK government reit-
erated its commitment to full energy liberalization in Europe.
“But this is a long-term process”, says David Morgan, “The cur-

rent UK market is not working properly, and industrial consumers
are being adversely affected by high energy prices compared with
those prices available to their European competitors.”
PAPER TECHNOLOGY SEPTEMBER 2006 NEWS
7
Figure 2 (top right): The LNG
operators include: Centrica,
Canabox; ExxonMobil; LNG
Japan; Osaka Gas; Petroplus
and Qatar Petroleum.
Figure 1 (bottom left): With
output in decline, the UK
became a net importer of nat-
ural gas in 2004, a year or so
earlier than forecast. In 2005,
UK output declined by a fur-
ther 8.1%. Consumption also
declined - by 2.2% - as indus-
try switched to coal in the
face of rising gas prices.
Figure 3 (bottom right): Gas
supplies from Russia are
flowing into Western Europe
and a pipeline is being laid
underneath the Baltic. In 2005
a new pipeline from North
Africa linked Italy to the gas
reserves of Libya and Algeria.
RUGasPipesMap: Source: Wikimedia
UK GAS SUPPLY LINES: EXISTING, PLANNED AND PROPOSED

Project Capacity Available
bcm/year
Pipelines from Belgium and Netherlands
Interconnector 8 to 16 1998/2005
Belgium 16 to 24 2007/08
BBL Line 10 to 17 From 2006
Netherlands
Gas from Norwegian Fields
Vesterled 4 to 10 Onstream
Ormen Lange 27 2008
Statfjord Late Life 3.5 2007
Storage facilities in the UK
Rough field 2.8 Onstream
Humbly Grove 0.28 2005/06
Aldbrough 0.42 2007/08
Liquid Natural Gas: Storage and Processing
Isle of Grain 5 2005/
15 End 2008
Dragon, Milford Haven 4 to 10 2005/2007
S.Hook, Milford Haven 10 2007/08
Anglesey Terminal 20 From 2008
Canvey Terminal 5.4 2010
LNG operators include: Centrica; Canabox; ExxonMobil; LNG Japan,
Osaka Gas; Petroplus; Qatar Petroleum
Figure 1 In 2006, UK gas prices diverge from the rising oil index.
The price of oil broke through $70 a barrel
in April 2006 following two years of soaring
prices - up 33% in 2004 and a further 43% in
2005. Over the first five months of this year,
the average price was $65, a 20% increase on

2005 when the average for the year was $55.
This is bad news for the UK paper indus-
try, since the oil price has been a major driver
of wholesale gas prices since 1998. In that
year with the start-up of the Interconnector,
UK gas prices became linked with the oil-
indexed gas markets of Europe.
But there are some positive signs in both
the gas and oil markets:
• New pipelines are opening up the world’s
abundant oil and gas reserves.
• New storage facilities and rising invento-
ries will underpin security of supply and
allay the fears which have added a huge
risk premium to the price of oil.
Natural gas: a market in its own right
Figure 1 shows that although the price of
oil continued to rise in 2006, the price of gas
and coal have dropped back. In the UK, the
price of gas is down to around 40p a therm
from a peak of 170p in the winter of 2005/06.
At 40p a therm, the UK gas price is in line
with the Henry Hub gas index of the USA
rather than the oil index. This shift reflects
the rapid growth of the international trade in
gas which now accounts for 26.1% of global
gas consumption. Both pipeline and Liquid
Natural Gas trade grew by 6.4% in 2005,
based on new supply lines such as:
• pipelines from Libya and Algeria to Italy.

• growing Russian and Norwegian exports,
see page 7.
•
LNG start-ups in Egypt, and ramp-ups in
Qatar and Australia.
Although the global gas supply is tight at
the moment, the world has enormous gas
resources on which investment is being
trained - historically, gas was a by-product of
the search for oil. Eventually, this wave of
investment in gas will bring prices down, but
there is a long lead time.
For example, Gas, Power & Renewables is
constructing an
LNG plant in Indonesia which
will be producing 1 billion cubic feet of LNG
per day by 2009. ‘It will have taken 10 years
from reserves confirmation to start-up to put
this new supply chain in place’, said Vivienne
Cox, CEO of GP&R in her address to the UK
Parliamentary Energy Group on 12 June
2006.
‘By 2015, global LNG supply is likely to be
of the order of 50 bcfd - that is about the same
as the size of the whole European regional gas
market today. This wave of
LNG should be a
PAPER TECHNOLOGY SEPTEMBER 2006 NEWS
8
Escalating energy prices driven by fears and risk premiums rather than

2006 GAS AND OIL PRICES DIVERGE
Figure 2 The international gas trade accounts for 26% of global consumption
TRADE IN PIPELINE AND LNG
Figure 3 There is no resource constraint, according to BP
ABUNDANT GLOBAL OIL RESERVES
© BP 2006
by M.E. Marley
factor in bringing down gas prices from the
very high levels we see today’, figure 2.
Abundant world reserves of oil
In the oil market too, there are positive
signs. The 2006 BP Statistical Review of
World Energy paints a reassuring picture of
abundant oil reserves - although some ana-
lysts are predicting an imminent physical
resource constraint.
‘There is no resource constaint’, says Peter
Davies of BP ‘The aggregate levels are high;
and, year by year, a combination of explo-
ration, investment and the application of
technology is ensuring that every unit of oil
and gas that is produced is replaced by new
proved reserves,’ figure 3.
Why then, the huge escalation in oil prices
over the last few years?
The roots of the problem lie in 2004, a
year of 4% global economic growth and
exceptional energy consumption- up 4.4%
over 2003 levels, figures 3 and 4.
The 2004 surge reduced global spare pro-

duction capacity to low levels - about 1.5
million b/d, almost all of which is in Saudi
Arabia. At the same time, oil production was
disrupted by the geopolitics of oil producing
countries - expansion plans were delayed and
fears about future political stability increased.
These fears counterbalanced the market
fundamentals, the fact that by the end of
2004, growth in production had outpaced
growth in consumption, and inventories were
above historic levels. As a result the price of
oil was driven upwards by the risk premium.
2005 was another year of strong, 3.6%
economic growth - lower than 2004, but
above the 10 year average. Growth in energy
demand fell to 2.7% and there was also a
shift from oil to coal, which resulted in
growth of just 1.3% in global oil consump-
tion.
In the same year, world output of oil
increased by 1% or 889,000 b/d, of which
OPEC supplied 96%. In addition, new
pipelines came on stream in Angola, Brazil
and China.
But, the
OECD countries saw a decline of
953,000 b/d, largely the result of falling pro-
duction in the US, the UK and Norway.
‘Overall, these developments have left the
world oil market adequately supplied despite

supply disruptions’, says the BP review.’ Oil
prices are close to $70/bbl and are held up at
this high level by low surplus capacity, risk
perceptions and fears’.
New oil investments are underway but
lead times are long. ‘Global spare production
capacity should get back to historic norms of
around 3 million b/d, probably towards the
end of this decade. At that stage the risk pre-
mium could decline.’
PAPER TECHNOLOGY SEPTEMBER 2006 NEWS
9
market fundamentals
Figure 4 The 2004 surge in energy demand, reduced spare capacity to low levels
and intensified supply fears.
2004: EXCEPTIONAL GROWTH AND ENERGY
DEMAND
Figure 5 Current oil prices are still below those of 1979-1982, inflation adjusted. In
1979, prices rose by 129%.
OIL PRICES FROM 1975 TO 2006
Figure 6 Declining output in Europe and the USA is counterbalanced by OPEC
and new players.
CHANGING GLOBAL OIL FLOWS
PAPER TECHNOLOGY SEPTEMBER 2006 NEWS
10
available and renewable resource and we
will be one of the lowest cost producers in
the global industry.
The mill - with bio-mass plant - is to be
built at Invergordon and will cost an esti-

mated £1 billion. The interim funding of
£6 m - £8 m will enable the company to
acquire the site, apply for environmental and
planning permits, develop the detailed engi-
neering design and recruit a senior
management team.
Once this stage of funding is in place, the
remainder of the investment (c. £1 billion)
will be provided by a combination of debt,
equity and grant.
The Forscot project - to build an inte-
grated pulp and paper mill in north east
Scotland - has reached the interim stage as
the company discusses funding of £6-£8
million with trade partners and other
investors.
“We have a number of funding opportuni-
ties and we are in detailed discussions with
all of these potential investors”, said Ed
Gillespie, chairman of Forscot, following a
recent board meeting.
“Forscot remains convinced that this is a
viable project. We can produce high quality
products, for which there is growing
demand. We will be using a sustainable,
Scottish pulp and paper project
Containerboard closures continue
SKG is also shutting down the 90,000 tpy
Lagamill Mill in southern Sweden - part of
the group strategy to cut at least 200,000

tonnes of European recycled containerboard
capacity in the second half of the year.
Lagamill produces 70,000 tpy of con-
tainerboard on PM15 and 20,000 tpy of
FBB
on PM14
Earlier this year, SKG closed 270,000 tpy
of recycled containerboard capacity in
France and Germany:
In France: Papeterie d’Uzerche,
Papeterie d’Aubazine, Usine de Bigny and
Papeterie de Vernon.
In Germany: the former Kappa Packag-
ing mill in Wiesloch.
Equipment is likely to remain within the
group and be transferred to plants in Europe
and Latin America.
The Smurfit Kappa Group is to close
down the papermaking and converting oper-
ations at Snodland Mill in Kent, with the
loss of some 150 jobs. The Packaging Oper-
ations at Snodland are unaffected.
The mill has survived over the last six
years by reducing its cost base and develop-
ing new products. But, over the last year, it
has been caught in a squeeze between soar-
ing production costs and inadequate selling
prices:
• The tripling of gas prices and steep cost
increases in raw materials such as pulp

and chemicals.
• A market with inadequate selling prices
and an inflow of cheap imports from Far
East.
This squeeze has created a position of
unsustainable losses.
Closures at SKG Snodland and in Sweden
• For start-up in early 2012, a 400,000 tpy
woodfree PM.
The project has been delayed by the new
guidelines introduced by China in 2004.
They involved stricter environmental proce-
dures and require the involvement of a
Chinese partner in large investments by for-
eign firms.
Oji has formed a joint venture, with the
Chinese firm which owns the industrial park
in which the mill will be built - Nantong
Economic and Technological Development
Zone Corporation.
The stakeholdings in Oji Paper (China)
are 90% to the Japanese parent company and
10% to NETD.
Oji Paper’s plans to build a greenfield pulp
and paper mill in Jiangsu province has been
approved in part by the Chinese government.
The $1.98 billion project involves three
400,000 tpy coated woodfree lines and a
700,000 tpy bleached hardwood kraft pulp
line. The third PM line has not yet been

approved.
The project will be built in an industrial
park in Nantong City in three phases:
• For start-up in 2008, a 400,000 tpy wood-
free paper machine, a coater, a coal boiler
and a port facility.
• For start-up in late 2009, a 400,000 tpy fine
paper unit and coater, the bleached hard-
wood kraft pulp line and a recovery boiler.
China gives all-clear to Japanese pulp & paper project
Pankakoski Mill
acquired by Powerflute
stable
Stora Enso is selling the
100,000 tpy Pankakoski
board mill to a group of
investors led by Dr Dermot
Smurfit and including Lans-
downe Capital. The
debt-free sales price is € 20
million, subject to closing
date adjustment.
Last year, the same group
acquired the 220,000 tpy
Savon Sellu Mill which pro-
duces semi-chemical fluting.
The mill is run by a com-
pany called Powerflute
which has increased output
to 260,000 tpy last year.

Both mills are based in Fin-
land.
A new company will be
set up to operate Pankakoski
which produces speciality
boards for packaging and
graphical end uses on two
machines. The mill also has
a groundwood pulp plant,
and it utilizes the Condebelt
drying process to produce a
smooth, strong sheet with a
heavy basis weight.
The new owners plan to
ramp up output to full
capacity within two and a
half years - from 60,000 tpy
today - and to expand the
product portfolio.
Don Coates, formerly the
CEO of St Regis Paper, is
joining the Pankakoski ven-
ture as a non-executive
director and the deputy
chairman. He will work
closely with the local man-
agement team on planned
improvements.
With the divestment of
Pankakoski, the sales of

Packaging Boards division
of Stora Enso will fall by
some € 60 million and the
working capital will be
reduced € 12 million.
PAPER TECHNOLOGY SEPTEMBER 2006 NEWS
11
Koehler gets NCR
license
Koehler Paper Group, the
leading global provider of
thermal paper, is licensed to
sell NCR’s simultaneous
two-sided thermal-paper
technology - to any paper
converter worldwide.
The patented two-sided
printing process reduces
paper-roll receipt usage by
as much as 50% and pro-
vides additional operational
savings on freight, storage,
disposal and roll changes.
“As businesses begin to
reap the real operational
benefits of this technology,
we expect a shift to two-
sided receipt printing as the
standard for business trans-
actions moving forward,”

says NCR. www.ncr.com
Tamfelt in China
Tamfelt is to establish a
fabric factory in Tianjin,
China, with start-up in early
2008. The new plant will
enable Tamfelt to supply
Chinese made forming and
dryer fabrics to the wide,
high-speed PMs and BMs in
China and the Pacific area.
Tamfelt’s main market
segment, machine clothing
for wide, high-speed
machines is Tamfelts main
market segment and China is
its main growth area. Since
2000, Tamfelt has had a
joint venture in China pro-
cessing Finnish-made base
fabrics.
Andritz buys remaining
40% of Küsters
Andritz has acquired the
remaining 40% stake in the
Paper and Nonwoven Busi-
ness Areas of Eduard
Küsters Maschinenfabrik
from Jagenberg.
Headquartered in Krefeld,

Germany, Küsters, is a lead-
ing supplier of roll and
calender technologies for the
paper, nonwoven and textile
industries.
In November 2005,
Andritz had purchased a
60% stake in the Paper and
Nonwoven Business.
TOSCOTEC environmental policy
Toscotec, the Italian machine builder,
has achieved certification to two major
environmental standards:
•
ISO 14001, in December 2005.
• “EMAS” Registration. In March 2006 -
the Environmental Management Sys-
tem in compliance.
Toscotec is working within The Pio-
neer Project which is dedicated to
improve the local environment. It
involves some 40 companies including
SCA and Delicarta and is financed by the
European Community.
Other partners in the project are: the
Lucca Chamber, Universities in Milan
and Pisa and the local industrial associa-
tions.
Sandusky Walmsley in administration
Sandusky Walmsley went into adminis-

tration on 14 August - the result of a lack
of orders and severe losses.
The administrators - Michael Horrocks
and Russell Cash of PricewaterhouseC-
oopers - are continuing to trade, with the
aim of securing a sale of the business as a
going concern.
Sandusky Walmsley employs 323 staff
at the Bolton factory and has an annual
turnover of approximately £27 million.
Unfortunately, 158 employees were made
redundant. No further redundancies are
planned at this time.
“We have had to make a number of
staff redundant in order to continue trad-
ing,’ says Michael Horrocks. ‘We are
contacting customers, interested parties
and suppliers to obtain their support.”
Jarshire and Impact Air Systems
Jarshire, and Impact Air Systems
working together to exploit the synergies
from their product lines:
• the Jarshire range of our range of com-
pactors and balers which are natural
extensions to
• Impacts waste and trim extraction and
dust control systems
‘I am pleased to say we have already
taken our first order for two systems”
says Director Nick Jobson.

Designed to keep machines and pro-
duction areas clear of waste materials,
Impact’s systems can be found in paper
mills, converting plant and printing,
works all over the world.
www.jarshire.co.uk
PAPER TECHNOLOGY SEPTEMBER 2006 NEWS
12
income generated covers the administrative
costs of the system’, says Peter Seggie, of
the
CPI’s Recovered Paper Sector. ‘Reproces-
sors and exporters are under no obligation to
become accredited and if the financial costs
outweigh the benefits they may choose to
consider remaining outside of the Regulation’.
A slow and inadequate response
The Confederation of Paper Industries
(
CPI) has been pushing for an investigation
for some time - the issues were highlighted
to
DEFRA over three years ago - and is disap-
pointed at the slow, incomplete and
inadequate response:
• The
DEFRA report acknowledges that there
are issues with the current Regulation. But,
although it offers recommendations, it
fails to set defined strategies, responsibili-

ties, or timescales for implementation -
this essential work is still outstanding
after a 14 month investigation.
• Double counting: The report states that
there may be double counting of paper
packaging waste moving between accred-
ited exporters. But again, there is no
effective response.’The auditors appear
unable to clarify whether
PERNs are gen-
erated in this way through audit trails’.
• Mixed waste: The auditing team has failed
to address concerns regarding the issue of
Recovery Notes against mixed waste
loads. Yet the shipment of waste across
frontiers is subject to international regula-
tions and supply chain documentation
should provide a clearly auditable trail.
• Data discrepancies: The Report attrib-
utes the discrepancies to i) incorrect
administrative practices - exporters were
using incorrect codes when declaring their
exports to customs officers; and ii) the
high moisture content of export loads -
this increases weight and inflates the
export tonnage. However, there are pre-
cise systems in place to prevent such
errors - the
CN Classification System of
HM Revenue and Customs, for example.

“It is clear that an enforcement of the
exporter
CN classifications would allow a
simplified audit check on tonnages declared
within the Regulation, and those actually
leaving the UK for overseas reprocessing’
says Mr Seggie. ‘It would also allow simpler
port checks to identify, especially in the case
of waste corrugated materials, that the actual
material inside the container matched the
classification given on the documentation.
The
DEFRA investigation is to continue. CPI
will scrutinise any further results, ‘which must
be made public with a follow up report and will
continue to interface with Government until an
effective and enforced system is in place.’
UK reprocessors and exporters of recov-
ered paper packaging may withdraw from
the system if the government fails to rectify
the abuses - double counting and mis-classi-
fication - which were the subject of a recent
DEFRA investigation.
• Double counting involves the issue of a
2nd PRN for tonnage for which a PRN has
already been issued. A Packaging Recov-
ery Note is issued by reprocessors and
exporters on the delivery of 1 tonne of
packaging recovered from the waste
stream.

• mis-classification involves the export of
mixed waste as packaging waste, ie the
issue of a PERN for non-packaging waste.
The investigation into the workings of the
Packaging Waste Regulation was triggered
by allegations from the Confederation of
Paper Industries that packaging export data
from HM Customs & Excise exceeded
DEFRA’s figures for the amount of paper
packaging being exported
The DEFRA fact finding mission found that
the claims for export packing data ‘were
higher than they perhaps should have been’;
and ‘there may be double counting of packag-
ing waste’.
These abuses have two baneful effects: i)
the revenue raised by the sale of illegitimate
PRNs is being diverted from its purpose - the
development of the recovery and recycling
infrastructure of the UK; ii) the creation of
extra PRNs, which should not be on the mar-
ket, debases the currency, ie the value of the
PRNs issued by recycling mills and exporters
(PERNs) to obligated companies - UK com-
panies which are obliged by law to recover a
specific tonnage of packaging from the
waste stream.
The value of Recovery Notes has been
declining since 2002 when recycling mills
received £30 for each PRN issued, figure 1.

Today, at a current value of £3-5 per tonne
of packaging waste, the PRN system is hardly
cost effective.
‘Paper PRN/PERN prices have collapsed to
such a level as to warrant paper exporters
and reprocessors to question whether the
Feeble government response to troubled PRN system
THE VALUE OF PRNs
2006 2H £3-5
2006 1H £4-7
2005 £10 average
2004 £6-8
2003 £4-13
2002 £16-30
2001 £14-22
Paper Mills issue one Packaging Recovery Note for each tonne of pack-
aging delivered for recycling. At current values, the income from PRNs
scarcely covers admin costs.
Packaging producer
fined under ProRegs
Jaffabox of Birmingham has
been fined £3000 plus costs
for failing to meet its obliga-
tions for the recovery and
recycling of packaging.
The charges were
brought by the Environment
Agency under the Producer
Responsibility Obligations
(Packaging Waste) Regula-

tions 1997 and 2005.
(ProRegs)
Companies which handle
over 50 tonnes of packaging
and have a turnover of more
than £2m are required to i)
register with the Environ-
ment Agency or a
compliance scheme by 7
April each year ii) recover
and recycle specific ton-
nages of packaging waste
and iii) provide the Environ-
ment Agency with a
certificate stating that they
have met their obligations.
Investigations indicated
that the company failed to
meet its obligations in 2002,
2003, 2004 and 2005 and
that in doing so had not
recovered or recycled 946
tonnes of packaging.
In the UK, the Packaging
waste stream amounts to
more than 10 million tpy. As
a result of the regulations,
the amount of packaging
recovered and recycled
increased from 30% in 1997

to 55% in 2004.
tance from Manchester airport. Later in the
autumn the Coating Working Group will be
repeating their very popular Coating Train-
ing Seminar on Tuesday 21st November
2006 at The Cedar Court M606 Hotel. Look-
ing further ahead we have a new date and a
new venue for the 2007 PITA Coating Con-
ference. Acting on the wishes of the Coating
Working Group I researched some alternative
venues including possibly returning to Edin-
burgh but in the end the Group accepted my
recommendation to hold this event at Robin-
son College, Cambridge, a venue well known
to the
PITA office as we ran the week long
2005
FRC Symposium there and were well
and truly looked after by the Robinson team.
The change of venue means a change of date
from that previously published to the follow-
ing week 26th to 28th March 2007.
Queen’s Award for PITA members EnviroSys-
tems (UK) Ltd
It was a great privilege for me to be present
on 30th June 2006 at the presentation of a
Queen’s Award for Enterprise 2006 for “Inno-
vation in Industry” to
PITA Corporate
members EnviroSystems (UK) Ltd. The pre-

sentation was made on behalf of Her Majesty
by her representative, the Lord Lieutenant of
Lancashire, Lord Shuttleworth. This was a
remarkable achievement by Liz Russell and
her business partner John Singleton who have
taken their Envirobed product from a standing
start to the current successful position in less
than 3 years. In accepting the award from the
very imposing figure of Lord Shuttleworth
Liz acknowledged the support and help they
have received from a great assortment of peo-
ple including several
PITA members. The
accompanying photograph shows Liz and
John receiving the award from Lord Shuttle-
worth. (Full story in Industry Update)
Working Groups
The month of July provided two contrast-
ing yet very interesting Working Group
meetings starting with The Environmental
Group who were privileged to be able to visit
the Heysham Nuclear Power Station. British
Energy stopped all visits to this plant a couple
of years ago having previously entertained up
to 30,000 visitors each year with tours of the
plant. The infrastructure for such visits is
When I sit down to prepare this column I
always look back at the equivalent column for
previous years from which I note that I have
often made the comment that the summer

period is a strange time for the
PITA office.
Well this year has been no exception but for
very different reasons, as during the past cou-
ple of months your Board of Directors have
taken some critical decisions about the future
of the Association. At the same time I have
advised the Board of my intention to retire
from my position as Chief Executive of this
Association with which I have been involved
in one way or another for just about 40 years.
All of this is encapsulated in the “Announce-
ment” which I prepared in late July to send to
several key members of the Association such
as District and Working Group Chairmen and
which is repeated within
PITA Affairs for the
information of all members.
I may have announced my retirement but
there has been no slackening off in activity as
plans are being put in place for three forth-
coming events. The “PITA Energy Event” is
coming together nicely and will take place on
Thursday 21st September 2006 at a new
venue for PITA events, The Centre at Birch-
wood Park, Warrington. This is a purpose
built conference centre with easy access from
both the M6 and M62 and only a short dis-
13
PITA Affairs

The Association in Focus
CONTENTS >
13 The Association in Focus
15 Announcement
16 Energy Event
– Provisional Programme
IBC Energy Event – Details
Liz Russell and John Singleton receive their Queen’s Award for Enterprise from
Lord Shuttleworth
PAPER TECHNOLOGY SEPTEMBER 2006 PITA AFFAIRS
14
however still in place and an exception was
made to allow this visit following the
approach to the company by Group Chairman
Barry Read who explained the Group’s cur-
rent interest in the energy situation in the UK.
Accompanied by a couple of members of the
Engineering Group the visitors were given
an introduction to the nuclear scene in the UK
and how the eight British Energy nuclear
power plants together with their one coal
fired plant provide around 20% of the UK’s
energy requirements. Later in the day after the
regular business was concluded the members
were given a comprehensive tour of this enor-
mous operation. Our thanks go to Nigel Knee
of British Energy who was instrumental in
allowing this visit and acted as leader on the
day and his colleague Martyn Butlin who
looked after all the local arrangements. It is

not very often that a Working Group visit is
recorded for posterity but this was just such
an occasion as the photograph above shows.
All the members who made the effort to
attend this meeting came away with a much
clearer picture of the nuclear energy situation
in the UK after a most enjoyable, informative
(but hot) day.
Later in the month The Raw Materials
Group held their meeting at a golf club near
Heathrow airport! This may seem a strange
location for a
PITA meeting but the main
objective was a visit to the Grundon MRF
(Materials Recycling Facility) in nearby
Colnbrook. As the MRF did not have a suitable
meeting room it was suggested that the morn-
ing meeting should be held at Thorney Park
Golf Club which had been constructed on
what had previously been a Grundon landfill
site. Representatives of the Grundon manage-
ment joined the Group for lunch at the Golf
Club and provided an insight into the Grun-
don family history in Waste Management and
their current operation. The members were
then given a tour of the MRF in the afternoon
and saw how all the recyclable material from
about eight local authorities is sorted by a
combination of mechanical screening and
hand picking. The major product from the

facility is paper which goes to two main out-
lets, a Kent mill and a Swedish company, the
latter being shipped from Chatham as return
loads in ships that have brought paper into the
UK from Sweden. The overriding impression
from this visit was the simplicity of the oper-
ation and the speed at which it was all
happening. But why was all that paper in a co-
mingled collection anyway???
At the beginning of August the programme
sub committee of The Coating Working
Group met at the PITA office for their first
planning meeting for the 2007 Coating Con-
ference. In addition to making good progress
on ideas for the conference programme under
the theme of The 3 Ps of Coating - Printing,
Packaging and Point of Sale the members of
this committee who are largely the Session
Chairmen for the event also took the decision
to stage the event at Robinson College, Cam-
bridge as mentioned above.
News of members - with thanks
Earlier this year (May/June issue) I was
pleased to include within this column news of
Phil Woolley’s intention, with some of his
friends, to ride across the country coast to
coast to raise money for the Anthony Nolan
trust. Phil has advised me that the ride took
place according to plan, they raised over
£2,500 for the Anthony Nolan Trust and that

he would like to thank all those who spon-
sored the ride. Phil has provided the adjacent
photos as evidence that they really did it!
John Clewley
Members of the Environmenatal Working Group set off on their tour of Heysham
Nuclear Power station led by Nigel Knee of British Energy
NESDG Reunion Dinner
Last year’s dinner that
replaced the Dinner Dance
was so successful it was
decided to repeat it this year.
Anybody who supported the
NESDG over the years is
invited to a dinner in the
Airport Thistle Hotel on Sat-
urday 25th November 2006
@ 7.00 for 7.30 p.m.
Tickets cost £30 for a
four course meal incl. wine
and are available from John
Allan on 01224 319043 or
e.mail
For those who might
wish to stay overnight a
double room B&B is £40
and a single £30.
Come and enjoy the
friendship that the
NESDG
was well known for.

C 2 C
The Start –
Whitehaven
The bit in the middle
The Finish –
Sunderland
Steps are being taken to identify suit-
able candidates for the new role of Chief
Executive of the Association with a view
to having the new person in place by the
start of 2007. The current Chief Execu-
tive has agreed to remain in post for
approximately three months after that
time to ensure a smooth hand over of
responsibilities. The current Commercial
Manager has been invited to apply for the
new position and has indicated his inten-
tion to do so.
With these changes and in particular
the need for the new Chief Executive to
take on the commercial activities of the
Association it will be necessary for some
of the current work of the Chief Execu-
tive to be passed over to others or not be
done at all. One such task that has already
been identified is the provision of a full
secretariat for the Working Groups. In
future the Working Groups will be
required to take responsibility for organ-
ising their own meetings and preparing

their own Minutes. The Chief Executive
will however continue to provide support
and direction to the Working Groups and
the Operations Executive will continue to
provide coordination of meetings as at
present.
All other activities of the Association
and in particular the production of the
Journal, Paper Technology will continue
as normal.
We are living in much changed times
and these changes are being made in
recognition of that situation and to ensure
that our 86 year old Association contin-
ues to thrive well into the future.
If any member has any questions about
these changes then please feel free to
contact me.
John Clewley
Chief Executive
26/07/06
The finances of the Association have
been under pressure for some time and as
previously reported the financial year 2005
resulted in a very large deficit in excess of
£57,000. At the May 2006 meeting of the
PITA Board of Directors the Chief Execu-
tive included within his report a statement
to the effect that he did not believe the
income stream of the Association in the

foreseeable future could support the cur-
rent cost base of the Association and the
Directors should therefore consider the
future structure of the Association with a
view to removing £40-50,000 from the
cost base. He went on to advise the Board
that it was his intention to retire from his
position as Chief Executive of PITA within
the next twelve months and it would there-
fore be logical for any changes to be made
to coincide with his retirement.
As a result of these comments the
Board agreed to hold a special meeting
solely to discuss this situation and asked
the Chief Executive to prepare a paper
outlining the possible options to make the
required savings. This paper was dis-
cussed by the Board of Directors, in the
absence of the Chief Executive, at their
special meeting on 5th July 2006.
The decision of the Board of Directors
was to reduce the full time staff level of
the Association from the current 3 to 2.
The Board recognised the importance of
the role of the Operations Executive in
handling all the day to day routine affairs
of the Association and therefore decided
that position should remain unchanged.
To achieve the necessary reduction the
Board decided that the current role of

Commercial Manager would be declared
redundant at the end of 2006 and the
commercial activities currently under-
taken by the Commercial Manager would
be absorbed within a new “combined”
role for a new Chief Executive.
PAPER TECHNOLOGY SEPTEMBER 2006 PITA AFFAIRS
15
Paper Industry
Technical Association
ANNOUNCEMENT
The Future Structure of PITA
THE PITA ENERGY EVENT
The Centre, Birchwood Park, Warrington
Thursday 21st September 2006
1. SETTING THE SCENE Speaker
09.00 - 09.10 Welcome & Introduction Chair
09.10 - 09.40 The Impact of Energy on British Manufacturing Jeremy Nicholson
Energy Intensive User Group
09.40 - 10.00 The Impact on One British Mill Stephen Hutt
(Formerly Smith Anderson)
10.00 - 10.25 What One Supplier Can Do For You Dave Lewis
npower Solutions
10.25 - 10-50 Energy Related Legislation tbc
10.50 - 11.10 COFFEE
2. WHAT CAN WE DO NOW? – What are mills doing today?
11.10 - 11.35 Practical Measures at a Tissue Mill Kate Leach
GP - Stubbins
11.35 - 12.00 Practical Measures at a Fine Paper Mill tbc
12.00 - 12.25 Optimisation and Better Control of Energy Generation and Paul Austin

Usage at the Power and Steam Plant of a Newsprint Mill BTG Consulting and
Matthew McEwen
Perceptive Engineering
12.25 - 12.50 Potential Dryer Section Savings Kadant Johnson
12.50 - 14.00 LUNCH
3. WHAT CAN WE DO TOMORROW? – What are the options?
14.00 - 14.25 Coal – The phoenix for the flames Nigel Yaxley
Euracoal
14.25 - 14.50 Waste Derived Fuels Craig Ibbetson
Regen
14.50 - 15.15 Biomass as an Energy Source Peter McKendry
SLR Consulting
15.15 - 15.40 Feedback from Carbon Trust Energy Audits Andy Hannah
NIFES
15.40 - 16.00 COFFEE
16.00 - 16.20 Energy Brokerage Mark Dickinson
Encore
16.20 - 16.40 Financing the Savings Keith Horgan
Carbon Trust
16.40 - 16.45 Close of Conference Chair
5 Frecheville Court
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PITA
ENERGY EVENT

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PROGRAMME
Supported by
Programme correct at time of printing – subject to amendment
PITA wishes to acknowledge the
support of The Carbon Trust in
staging this event
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2000 2001 2002 2003 2004 2005
zur Energiereduktion in Papierfabriken aus
Sicht des Anlagenlieferanten”, a presentation
by Dr. H P. Sollinger at the PTS Energy
Management Symposium 2003. Unfortu-
nately, the proceedings of that symposium do
not contain the presentation of this talk.

The energy situation today
Energy demand constitutes a considerable
part of the production costs in the papermak-
ing process. Figure 1 gives an example of the
cost structure of paper production. These fig-
ures show that the bulk of costs are incurred
by the capital intensity of the process itself,
while energy costs form a large part of the
variable costs. Profitability may depend on
the volatile nature of energy costs because
increases in energy prices cut down the mar-
gins, Figure 2. In view of the implementation
of the Kyoto Protocol and the rising energy
We think it is useful to take a look on the
issue of energy in relation to paper technol-
ogy, production capacity and investment
costs. Of course, we can only give a very brief
account, merely a sketch of the background
and some examples supporting our main
point: the best way to achieve energy effi-
ciency in the long run is to make it go together
with the other main aspects of papermaking.
As the author works for the graphic paper
division of Voith Paper, the majority of data
and illustrations are connected with graphic
paper grades. However, the line of develop-
ment is similar for most board and packaging
grades.
With respect to furnish we mainly look at
recovered paper, and hence we hope to

address the background of most of the audi-
ence adequately. A case study on a speciality
grade is contained in “Optimierungsansätze
17
Energy Efficiency – A Process
Supplier’s View
Sören Köster
Voith Paper Technology
Center, Heidenheim
Energy accounts for 13%
of a German newsprint
mill’s production costs. It is
the largest variable cost,
and comes second only to
fixed capital costs in the
hierarchy of total costs.
Rising energy costs are
addressed by managing the
energy supply, monitoring
consumption and constant
optimisation of the produc-
tion process. This feature will
focus on the latter and - on
the energy dimensions of gen-
eral mill investment projects.
The author presents an
overview of developments in
energy efficiency over the
past decade, using recycled
newsprint as the reference

grade. In this process, com-
parable amounts of heat and
power are consumed, heat
being mainly used in the
drying section, while about
one third of the power is
consumed in stock prep.
Energy savings in the
DIP
plant
The DIP process saves
about two thirds of the
power consumed by a TMP
plant and, within the DIP
sector, energy consumption
has declined by some 10%
within a decade - the result
of innovative process and
new or improved devices,
such as
• the elimination of chests
and pumps
• an increase in consis-
tency through the
integration of the twin
drum pulper.
Figure 1: Cost structure of German newsprint
Chemicals
Energy
12%

10%
9%
12%
44%
13%
PRODUCTION COSTS GERMANY, Newsprint, 1998
Personnel
Other
manufacturing
costs
Raw material
Capital charges
Source: Jaako Pöyry
Figure 2: Prices of power supply UK and standard newsprint Europe
Prices for standard newsprint Europe and power supply UK
Price power supply UK, no
taxes included (7000h/a)
Price power supply UK, taxes
included (7000h/a)
Price standard newsprint
Europe
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gy y
23

means of an outer vacuum ring, which pre-
vents air leakage.
The surface of the measuring head, which
contacts the paper, is coated with a propri-
etary wear-resistant material and is slightly
curved to ensure gentle contact with the sheet.
Figure 1 presents a schematic of the sensor.
The sensor is equipped with an air back-
blow or “sneezing” function, which removes
accumulated dust from the sensor. The
“sneeze” occurs when the sensor is off the
edge of the sheet and consists of a strong
pulse of air in a reverse flow direction. The air
filters, in turn, prevent dust from entering the
high precision mass flow sensor.
The sensor design is based on the mea-
surement of airflow, which correlates directly
with sheet porosity. The sensor controls con-
tact with the sheet, and - by using a small
controlled measuring vacuum - creates air-
flow through the paper. This measurement
approach emulates laboratory methods, and is
linear not grade dependent - thus minimizing
calibration efforts.
The sensor ensures the accuracy of poros-
ity measurements by eliminating the effects
of dust and leakage air - air travelling with the
sheet or air that has not travelled through the
sheet. The sensor maintains good contact
between the measuring head and web by

24
Paper Porosity Online Profiling
Antti Paavola
Honeywell Process
Solutions, Finland
The porosity of paper is
known to be an important
property for almost all
paper grades. Most paper-
makers are concerned about
porosity and are aware of
process parameters affecting
it, but, they have little or no
visibility or no window
which would enable them to
affect it.
Traditionally, Paper
Porosity has been measured
using off line laboratory
measurements and online
MD single point techniques.
While generally accurate,
these methods result in
excessive delays and are too
slow for measuring CD pro-
files in real-time.
Honeywell’s new paper
porosity sensor is a break-
through in the field of paper
porosity measurement. It

provides the speed needed
for measuring CD porosity
profiles and fast MD trends
online from a moving paper
web. The scanning measure-
ment improves control of
this important process vari-
able on a wide range of
paper grades.
PITA Papermaking
Conference 2006
Figure 1: Sensor Schematic
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• A questionnaire was elaborated as a sup-
porting tool - to get actual datas
concerning the efficiency of separation
techniques for stickies applied in the
paper mills.
• The measurement methods available for
analysing microstickies and colloidal/dis-
solved stickies have been listed and
introduced.
The partners in the project - Andritz, PMV
and PTS - have wide ranging practical and

research experience in the field.
Andritz: Water clarification either with
simple cleaning and / or screening machines
is one of the main steps for the re-use of the
water in the paper making process. Several
types of machines in different combinations
are already in operation such as Microflota-
tion, Diskfilter etc
To reduce the specific water consumption
in further steps, Andritz started to develop
Fine Filtration machines - RotoWash and
RotoFilter - beginning with a hole size less or
equal to 200 µm going down to 5µm.
The overall objective of WP 5.3 is the
development of separation techniques for
microstickies and anionic trash from process
waters of the pulp and paper industry.
Deliverable D 5.3.2 gives an overview of
the state of art concerning the separation tech-
niques for detrimental substances from
process water streams including micro stick-
ies and colloidal/ dissolved stickies.
To achieve the goal of the project, the
researchers set out to develop a comprehen-
sive picture of the state of the art as a first
step.
Based on the elaborated overview, techno-
logical gaps will be identified and
promising/needed technologies will be pin-
pointed for development.

Planned activities and actual work
The project has progressed as planned.
• A literature research has been done to
summarise the state of the art concerning
separation techniques for the removal of
detrimental substances and microstickies
from process waters.
31
Sticky and trash removal techniques
for water loops in paper mills
New and innovative processes for radical
changes in the European pulp & paper industry
Helmuth Gabl
Andritz
Udo Hamm,
Brigitte Bobek,
Hans-Joachim Putz
&
Samuel Schabel
PMV
Lutz Hamann,
Oliver Cordier,
Johannes Kappen
& Dieter Pauly
PTS
New processes which will
radically change the Euro-
pean Pulp & Paper Industry
are the focus of the Euro
17.9 m EcoTarget research

project.
The 4 year project, which
runs from 2004 to 2008, is
being carried out by 26
partners from 9 countries.
The project is divided
into five technical Sub Pro-
jects each of which is
covered in work packages
(WP)
The subprojects are:
SP1: Virgin Fibre Supply,
SP2: Recycled Fibre
SP3: Furnish Solutions
SP4: Papermaking Solutions
SP5: Process Water
‘More from Less’ is the
thread which runs through
the project. It is reckoned
that resource reductions of
20-30% can be achieved in
the four target areas: Wood
Raw Material, Energy,
Water, Waste & Emissions.
The European Union is
providing € 10 million of the
budget within the 6th
Framework Programme. The
project Coordinator is
Catharina Ottestam, of

STFI-Packforsk AB, Sweden
New processes for radical change in the paper industry
EcoTarget is dedicated to the development of new and innovative processes
which will enable European papermakers to achieve ‘More from Less’ from fibre,
energy and water.
Technical Sub Projects: The research programme embraces 5 key areas: Virgin
and Recycled Fibre Suppy; Furnish and Papermaking Solutions and Process
Water.
Work Projects: The 5 SPs are covered in work packages such as Separation tech-
niques covering detrimental phenomena in papermaking - a product of SP5.
Progress Report: The Progress Report on WP 5.3 is known as Deliverable 5.3.2.
This feature is based on D 5.3.2 - the Assessment Report on current sticky and
trash removal techniques in water loops. These techniques include: filtration, fix-
ation, micro flotation and hydrocyclone. The Report suggests forward-looking
technology and improvements to current technology.
Figure 1: The EcoTarget Research Project
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