UPM annual report 2014

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UPM Annual Report 2014 UPM Annual Report 2014 51 52
CONTENTS
RESPONSIBILITY 45–59
UPM’s energy production is based on a wide
range of energy sources and the company aims
to maximise the use of carbon-neutral energy.
Biomass-based fuels make up approximately
83% of the fuels used by UPM in Finland and
approximately 67% of those used worldwide.
UPM is the second largest generator of bio-
mass-based electricity in Europe.
The largest project is the combined heat and
power (CHP) plant at the UPM Schongau mill
in Germany, completed in late 2014. The refur-
bishment of the company’s own hydropower
production assets in Finland is also underway.
The refurbishment of the Harjavalta hydro-
power plant is due to be completed in 2017.
UPM’s investments in the generation of
biomass-based power and heat at production
facilities have significantly increased the capac-
ity of the facilities.
UPM’s continuous target is to
improve energy efficiency
Energy efficiency has been significantly
improved by energy audits, innovations and
internal campaigns over the last 15 years.
From its energy-saving investments carried
out in 2014, UPM gained savings of EUR 1.3
million, achieved 10,000 t avoidance in CO2
emissions and 33,000 MWh reduction in energy
consumption. The annual savings are EUR 2.1
million, 15,000 t and 55,000 MWh.
In 2014, UPM’s climate change actions were
recognised externally. The company was select-
ed to the A List of the CDP Climate Perfor-
mance Leadership Index 2014. UPM also
achieved full points in the Climate Disclosure
Leadership Index. UPM was the only paper
and forest products company to achieve the
CDP’s A100 level.
By 2020, UPM aims to reduce fossil CO2
emissions by 15% compared with the 2008
level. The company also aims to continuously
reduce all other air emissions.
Problems in the system used to burn weak
malodorous gases at the UPM Kaukas pulp
mill in Finland were the largest topic in 2014
(read more on next page).
UPM products offer an alternative to fossil-based products because
they are renewable and store carbon. UPM is continuously reducing
the carbon footprint of its operations and improving energy efficiency.
It is also the only forest industry company in the world to have
achieved the A100 level in the CDP Climate indices.
CHASING THE SOURCE OF ODOUR
The local community around the UPM Kaukas
integrate in Lappeenranta has experienced
odorous gases in 2014. According to studies, the
main problem originated from the old malodorous
gas boiler, which caused several unexpected
burner shutdowns at the pulp mill.
To improve the situation, UPM invested EUR 1.5
million in a new burner for the recovery boiler in
early 2014. However, the new installation alone
did not solve the problem and the work continued.
During the heat wave in summer 2014, the situation
worsened when a high pressure area stagnated air
and remained over the region for several weeks.
As a result, the malodorous gas problem has been
the largest topic for which any UPM unit has
received critical stakeholder feedback in 2014.
UPM has communicated actively locally and will
keep on working to solve the problem by developing
malodorous gas treatment at the mill.
“So far, we have discovered and repaired essential
machinery breakdowns and problems in our
operating systems. Then we further improved the
collection of malodourous gases during the pulp
cooking processes and at the wastewater treatment
plant in November. We are also planning some
additional investments to tackle random emissions
into the malodorous gas treatment system,” describes
environmental manager Minna Maunus-Tiihonen.
In 2015, UPM Kaukas will prepare a malodorous
gases spreading model to examine the impact of
the integrated mill as a whole on the local area.
UPM CHANGSHU REDUCING ITS
EMISSIONS
The new investment at UPM Changshu paper
mill is significantly reducing the production
plant’s emissions. UPM installed a new
combustion gas purification system that reduces
the amount of sulphur dioxide released into the
air to a tenth of the previous level. It also
reduces nitrogen oxide emissions by half.
Sulphur dioxide and nitrogen oxides are gases
released during the burning of fossil fuels, and
they contribute to the acidifying of the
environment. The advanced purification system
will also reduce the amount of particulate
emissions released into the atmosphere.
The boilers at UPM Changshu’s combined heat
and power plant use coal for fuel and produce
steam and electricity for the mill site.
Thanks to the new system, the thermal plant’s
emissions will be significantly below the new
official Chinese limits, which are considered
strict when compared globally.
The total investment cost is approximately
CNY 100 million, which is approximately
EUR 12 million.
ELECTRICITY GENERATION
TWh 2014 2013
Mill CHP 5.6 5.9
Hydropower 3.2 3.1
Nuclear 4.8 4.8
Condensing 0.8 1.1
Total 14.4 14.9
FUELS USED FOR HEAT GENERATION
TWh 2014 2013
Black liquor 18.5 17.9
Bark and other biomass 8.5 9.4
Heat recovered from
TMP production 1.3 1.4
Renewable fuels total 28.3 28.7
Peat 1.2 0.8
Purchased heat 0.5 0.2
Natural gas 8.0 8.5
Oil 0.7 0.7
Coal 3.6 3.6
Total 42.2 42.6
CAPACITY TO GENERATE POWER
THROUGH OWN POWER PLANTS
AND SHAREHOLDINGS
Nominal MW
Hydropower 708
Nuclear power 581
Condensing power 320
Wind power 1
UPM Energy in total 1,610
Combined heat and power
at mill sites 1,473
Mill site hydropower 49
Mill site power generation in total 1,522
Total UPM 3,132
Energy efficiency improved and
climate actions recognised
UPM completed the new
combined heat and
power plant at the UPM
Schongau paper mill in
Germany in December
2014.
Read more on the refurbishment of the Harjavalta
hydropower plant (p. 20). More graphs available on page 139.
The electricity consumption per tonne of
paper has decreased by 20% over the last
ten years due to continuous improvements
in energy efficiency.
14 13 12 11 10 09 08 07 06 05
2,000
1,600
1,200
800
400
0
UPM’s electricity consumption
per tonne of paper
kWh/t
Increases in total volumes are due to acquisitions
(in 2010 and 2011). In 2014, reduction was
achieved mainly due to investment in flue gas
purification at UPM Changshu paper mill, and
process improvements at pulp mills.
14 13 12 11 10 09 08 07 06 05
20
16
12
8
4
0
UPM's acidifying flue gases
1,000 t mio t
■ Total NOx
■ Total SO2
Paper production
Chemical pulp production
20
16
12
8
4
0 14 13 12 11 10 09 08 07 06 05
5
4
3
2
1
0
■ Total emission
Paper production
Chemical pulp production
UPM’s fossil carbon dioxide emissions
mio t CO2/a mio t
15
12
9
6
3
0
79% OF ELECTRICITY
GENERATED BY UPM IS FREE FROM
FOSSIL-FUEL CO2 EMISSION