UPM annual report 2015

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UPM Annual Report 2015 UPM Annual Report 2015 59 60
contents
250
200
150
100
50
0
15 14 13 12 11 10 09 08 07 06
UPM’s total waste to landfills
1,000 t
The total amount of solid waste sent to landfill has
decreased over the last ten years by 50%. However,
from 2012 to 2013 the total amount of waste sent
to landfill increased significantly. This is due to the
fact that former reuse possibilities for ash ceased at
one of UPM’s paper mills. Starting from 2014, new
methods of recycling were established, with further
options for recycling still being investigated.
IN BRIEF STRATEGY BUSINESSES STAKEHOLDERS GOVERNANCE ACCOUNTS
ELECTRICITY generation THROUGH OWN
POWER PLANTS AND SHAREHOLDINGS
TWh 2015 2014
Mill CHP 5.9 5.6
Hydropower 3.9 3.2
Nuclear power 4.7 4.8
Condensing power 0.4 0.8
Total 14.9 14.4
fuels used for heat generation
TWh 2015 2014
Black liquor 17.6 18.5
Bark and other biomass 8.5 8.5
Heat recovered from
TMP production 1.4 1.3
Renewable fuels total 27.5 28.3
Peat 1.1 1.2
Purchased heat 0.7 0.5
Natural gas 8.3 8.0
Oil 0.6 0.7
Coal 3.0 3.6
Total 41.2 42.2
capacity to generate power
through own power plants and
shareholdings
Nominal MW
Hydropower 708
Nuclear power 581
Condensing power 191
UPM Energy in total 1,480
Mill site combined heat
and power (CHP) 1,473
Mill site hydropower 49
Mill site power generation in total 1,522
Total UPM 3,002
In 2015, reduction was achieved mainly
due to investment in flue gas purification
at UPM Changshu paper mill. Increases
in total volumes are due to acquisitions
(in 2010 and 2011).
15 14 13 12 11 10 09 08 07 06
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
15 14 13 12 11 10 09 08 07 06
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
Reducing the amount of solid waste and increasing
reuse are important targets at all UPMmills. To us,
yesterday’s waste is the valuable rawmaterial of
tomorrow.
Nearly all organic production residues, includ-
ing bark and wood residues, as well as fibre-con-
taining solids from deinking and effluent treat-
ment, are used in energy generation at mill sites.
Today, over 90% of UPM’s production waste is
recovered and recycled.
Ash resulting from bioenergy production forms
the most significant proportion of UPM’s solid
waste. Ash is used on a large scale in applications
ranging from landscaping to road building.
UPMhas developed innovative ways to reduce
its own waste and residues and reuse waste in new
products.
Good examples of the company’s efforts in pro-
moting circular economy:
• UPM is the world’s largest user of recovered
paper for the production of graphic papers,
consuming 3.1 million tonnes of recovered
paper in 2015.
• The share of recycled fibre represents one
third of all fibre rawmaterials used in UPM’s
paper production.
• UPM’s renewable diesel, UPMBioVerno, is
produced from crude tall oil, a residue of pulp
production.
• Most Central European paper mills no longer
send any solid waste to landfill.
During 2015, UPM focused on utilising and reusing
production side streams in amore efficient way.
UPMupdated its waste target in 2015. The
previous target of a 40% decrease in the amount of
solid waste sent to landfill by 2020 proceeded as
planned. According to the new target, no process
solid waste will be sent to landfill by 2030.
The goal of international climate policy is
to keep the global average temperature rise at
a level that does not threaten mankind.
Achieving the goal requires significant reduc-
tions in emissions across the globe. Develop-
ing means for adapting and preparing for
climate change is also necessary. UPMpartici-
pated in preparing industry views for the
Paris climate change conference in 2015.
UPM’s Biofore strategy meets the chal-
lenge set by climate change on many levels:
Reusing waste is part
of circular economy
Increasing renewable energy
production at Shotton
“Prior to the closure of a paper machine,
all of the excess low pressure steam
generated as a by-product of electrical
power generation was used as heat in
UPM’s paper mill. We can no longer use all
of this steam, which consequently is cooled
and vented to the atmosphere. The new
condensing turbine power plant will use
this excess steam and generate electrical
power,” says mill manager David Ingham
from Shotton in the UK.
The new plant will generate approximately
4.8 MW of renewable energy from waste
steam. Thanks to the condensing turbine,
the share of biomass energy production
will increase to 70% from 56%. The
condensing turbine will reduce the mill’s
carbon footprint by approximately 27%
and at the same time improve the mill’s
cost efficiency. The new plant will be
producing power by early 2017 at the
latest.
“In addition to the new condensing
turbine, we are executing a plan for
further energy efficiency improvements
within our existing paper mill operations.
We have kept the most energy efficient
assets in operation but have also
developed the availability of our power
plant boiler and improved the quality of
the waste biomass that feeds the boiler,”
says Ingham.
Read more:
Sustainable forestry
• We ensure that our most important raw
material, wood, grows in forests that are
sustainably managed and act as carbon
sinks
• We promote biodiverse ecosystems that are
less vulnerable to the impacts of climate
change
Responsible production
• We promote resource efficiency by making
more with less
• We utilise the best available techniques
(BAT) in our production
• We continuously increase the share of
renewable and low-emission energy in our
operations
Renewable and recyclable products
• We replace non-renewable materials with
renewable materials and our products
function as carbon sinks
• We innovate new business and products
for future needs
UPM’s energy production is based
on versatile energy sources
UPM is a significant energy producer. The
company favours the use of renewable and
other carbon-neutral energy sources and the
use of natural gas. Biomass-based fuels account
for 67% of the fuels used by UPM. UPM is the
second largest generator of biomass-based
electricity in Europe. In 2015, UPM continued
to develop the utilisation of forest energy in
collaboration with its partners.
Paper and pulp mills, which use power and
heat in their production processes, represent
the majority of UPM’s total energy consump-
tion. Most of the energy is consumed in the
manufacture of mechanical pulp, pumping and
paper drying. At all pulp and almost all paper
mills, steam and electricity are generated
simultaneously by combined heat and power
(CHP) plants. At some mills, all or some
of the energy is produced by external
power plant companies.
As the use of weather-dependent
energy sources increases, the need for
balancing power in energy systems will
also grow. UPM is investing in hydro-
power, the most effective and sustain-
able method of producing balancing
power.
UPM strives to continuously
improve its energy efficiency across all
its operations. During the last 20 years,
the energy efficiency of production has
significantly improved due to energy
audits, innovations and internal cam-
paigns.
The electricity consumption per
tonne of paper has decreased by 17%
over the past 10 years. From its energy-
saving investments carried out in 2015,
UPM gained savings of EUR 1.2 million,
achieved 8,100 t avoidance in CO2 emis-
sions and a 32,000MWh reduction in
energy consumption. The annual sav-
ings are EUR 1.7 million, 13,000 t and
51,000MWh.
In 2015, UPMwas listed on the CDP
Nordic Disclosure Leadership Index
(CDLI) for the seventh time in a row
with the score A-99.
UPMupdated its climate targets in
2015. Regarding the previous target of a
15% reduction in fossil carbon dioxide
emissions by 2020, the development was
not in line with target in 2015. The new
target is to achieve a 30% reduction in
CO2 emissions at UPMproduction
plants and in the production of pur-
chased electricity and a 20% reduction
in acidifying combustion gases at UPM
production plants by 2030.
Biomass-based fuels account
for 67% of the fuels used by UPM.
Climate actions and
energy efficiency