Efforts Towards Sustainable Industryin the Japanese Paper Industry

Masataka HayamaJapan Paper Association

The 31st FAPPI ConferenceNovember 7, 2013 Jakarta, Indonesia

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Green Economy

“In its simplest expression, a green economy can be thought of as one

which is low carbon, resource efficient and socially inclusive.”

- United Nations Environment Programme

“(green economy) should contribute to eradicating poverty as well as

sustained economic growth, enhancing social inclusion, improving

human welfare and creating opportunities for employment and decent

work for all, while maintaining the healthy functioning of the Earth’s

ecosystems.”- The Future We want (Rio+20 Outcome Document)

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3

Recycling of forests Paper

recycling

Round wood

Construction material

Building

Demolition woodSlab

Woodchip

Thinning wood

Chopsticks

Fiber

50%50%

Lignin and other

Black liquor

Wood pulp

36%

Recycled pulp

64%

50%50%

Fossil fuel

(Recovery of chemicals)

(Recovered paper

recovery)

Paper waste

(CO2 absorption)

Evaporation

Fuel for power

generation

(Reuse of chemicals)

Newsprint

Copy paper

Publication paper

Tissue

Growing with absorbing CO2 from the atmosphere

CO2 recycling

CO2 emissio

n

Pulp & paper mill

(Digestion)

(Washing)

(Bleaching)

(Papermaking)

(De-inking)Industrial forest plantation

Forest plantation

　Renewable/was

te fuel

Generated steam 　→　 Power generation

On-site use (steam, electricity)

(Combustion)

Global warming

Paper industry is a green and sustainable industry

Fuel for power generation

51.5

52.252.5

53.053.3 53.4 53.6

54.0

54.9

56.1

57.0

58.0

59.6

60.2 60.4 60.360.6

61.461.9

63.162.5

63.0

63.7

50.0

52.0

54.0

56.0

58.0

60.0

62.0

64.0

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 15

%

Source: Ministry of Economy, Trade and Industry

Note:Utilization rate = recovered paper consumption + recovered paper pulp consumption / total raw material consumption

Year 1990Target of 55% by 1995

64.0

Recovered Paper Utilization Rate

in Japan

Year 1991Law for the Promotion of Utilization of Recycled Resources

Year 1995Target of 56% by 2000

Year 2000Target of 60% by 2005

Year 2005Target of 62% by 2010

Year 2010Target of 64% by 2015

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49.750.8 51.0 51.2 51.7 51.5 51.3

53.0

55.2 55.7

57.7

61.5

65.466.1

68.5

71.172.4

74.5

79.7

78.1 77.975.1

79.9

45.0

50.0

55.0

60.0

65.0

70.0

75.0

80.0

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12

Recovery rate

%

Source: Ministry of Economy, Trade and Industry

Recovered Paper Recovery Rate in Japan

Year 2000The Basic Law for Establishing the Recycling-based SocietyRevised Wastes Disposal and Public Cleaning Act

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Global Warming Measures in the Japanese Paper Industry

• Reducing specific energy consumption through installing large-scale kraft pulp plants.

• Electricity saving through achieving a recovered paper utilization rate of 55% and promoting alternative use of recovered paper to mechanical pulp.

• Steam saving and productivity improvement through introducing wider and closed hood paper machines.

～ 1990

• Energy saving through achieving a recovered paper utilization rate of 60% and promoting alternative use of recovered paper to kraft pulp.

• Increasing the stage of effect of vacuum evaporators and introduction of natural gas turbines

• Reducing waste volume through promoting incineration as well as fuel use, instead of landfilling.

• Expanding power generation capacity by introducing high temperature and pressure recovery boilers.

• Expanding plantation area at home and abroad to 600 thousand ha by 2010.

～ 2000

• Achieving a recovered paper utilization rate of 62%.• Steam saving through introducing high dew point closed

hood and high-efficiency press section. • Installing new boilers fueled by paper sludge, refuse

paper and plastic fuel, waste wood and waste tires.• Expanding forest plantation area to 700 thousand ha by

2012.• Developing a tree species with resistance to

pests/pathogens and drought.

2000 ～

JPA’s Committed Action Plan for

the Environment• Established in 1997• Targets set in the plan had been raised

several times since establishment • Final target: Reduce specific fossil energy consumption

and fossil energy-derived CO2 emission intensity on a five-year average basis from fiscal 2008 to fiscal 2012 by 20% and 16%, respectively, from the level of fiscal 1990.

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FY 91 92 93 94 95 96 97 98 99 01 02 03 04 05 06 07 08 09 10 11 12

70.0

75.0

80.0

85.0

90.0

95.0

100.0

105.0

72.4

95.0

79.8

Specific fossil energy consumption

Specific gross energy consumption

Fossil energy derived CO2 emission intensity

8Source: Ministry of Economy, Trade and Industry, Japan Paper Association

(FY 1990 as 100)

Specific Energy Consumption and CO2 Emission Intensity

Investment for FY 2000-2012

Energy saving

Fuel conversion

0 20 40 60 80 100 120 140 160 180 200

(billion yen)

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Invest amount for fuel coversion and energy saving (billion yen)

FY2000

01 02 03 04 05 06 07 08 09 10 11 12 Total

23.1 16.9 14.8 18.1 43.3 26.1 44.1 60.1 52.0 21.9 7.2 8.6 18.6 354.8

Factors of Changes in Fossil Energy Derived CO2 Emissions

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(Unit: 10 thousand tons, %)Percentage change

from FY 1990CO2 emissions

▲ 10.1 Decreased paper production ▲ 257

▲ 28.3

(Contribution) Industry efforts ▲ 537

Power industry

Fossil energy-derived CO2 emissions in FY 1990 2,547

74 2.9

▲ 21.1

Fossil energy-derived CO2 emissions in FY 2012 1,827

Amount of change ▲ 720

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Fossil energy49.6%

Renewable energy41.0%

Waste energy9.4%

Heavy oil 7.0%

Coal25.8%

Gas6.4%

Purchased electricity and other10.5%

Black liquor31.8%

Waste wood, paper sludge, etc.,

9.2%

Waste tire, RPF, etc.,

9.4%

Fossil energy65.0%

Renewable energy34.7%

Waste energy0.3% Heavy oil

33.8%

Coal14.3%

Gas0.5%

Purchased electricity and other16.5%

Black liquor31.8%

Waste wood, paper sludge, etc.,

2.9%

Composition of Energy Consumption by Energy type

Renewable energy: black liquor, waste wood, bark, paper sludge, etc., Waste energy: refuse paper and plastic fuel (RPF), waste plastic, waste tire, etc.,

Waste and renewal energy account for half of energy consumption in FY 2012FY 1990 FY 2012

JPA’s Action Plan for Low Carbon Society

Target:• For the fiscal 2020, reduce fossil-energy-

derived CO2 emissions by 1.39 million tons from BAU through:

1. Promoting energy conversion from heavy oil to biomass (waste wood, thinning wood and slash) and waste energy.

2. Introducing high-efficient recovered paper pulping units.

3. Introducing energy-efficient high temperature and pressure recovery boilers.

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JPA’s Action Plan for Low Carbon Society

Target:• In view of increasing forest carbon sinks

that help prevent global warming, as well as ensuring stable supply of raw materials, expand forest plantation area owned or managed by JPA member companies at home and abroad by 525 thousand hectares compared with the fiscal 1990 level to 800 thousand hectares by fiscal 2020.

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Forest Plantation Area by the Japanese Paper Industry

(1,000ha)

129178 192 212 233 255 278 301 342

353 355 387455 458

497 505543 544 544

146 144 138 137 134 131 128 125 121 138 151 150 150 150 149 148 147 147

800

147

0

100

200

300

400

500

600

700

800

900

1990 1996 1998 2000 2002 2004 2006 2008 2010 2012 2020

Domestic Overseas

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Overseas Forest Plantations by

the Japanese Paper Industry

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Development of New Bio Products

• Japanese paper industry actively promotes R&D on innovative bio products (e.g. bioethanol and CNF) through its unique woody biomass utilization technology.

• These innovative products from wood fiber are expected to be adopted in chemicals, cosmetics, pharmaceuticals and more, replacing traditional products have higher environmental footprints.

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Biomass Power Generation

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Company Mill Power Generation Capacity Startup

Oji Paper Co., Ltd. Nichinan 25,000kWh 2015

Oji Materia Co., Ltd. Fuji 40,000kWh 2014

Oji F-Tex Co., Ltd. Ebetsu 25,000kWh 2015

Nippon Paper Industries Co., Ltd. Yatsushiro 5,000kWh 2015

Chuetsu Pulp and Paper Co., Ltd. Sendai 25,000kWh 2015

Tokushu Tokai Paper Co., Ltd. Mishima 25,000kWh (for market sale) 2015

Paper manufacturers are expanding biomass power generation since FIT started in July 2012

Major biomass power generation projects

• Promote further paper recycling 　 -Establishing a recovered paper collection

system involving governments, private sectors and citizens is essential for improving paper recycling

• Improve energy efficiency -Objective evaluation based on data is

fundamental for improving energy efficiency. -Each association needs to play a central role in

building a database on energy consumption

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Towards “Green Economy”, we should:

Thank youTerima kasih banyak