UPM Annual Report 2016

66-67 / 176

UPM Annual Report 2016 UPM Annual Report 2016 66 67
In brief Strategy Businesses Governance Accounts Stakeholders
The goal of international climate policy is to keep the global average
temperature rise at a level that does not threaten nature and society.
Achieving the goal requires significant reductions in emissions across
the globe. Developing means for adapting and preparing for climate
change is also necessary.
UPM’s Biofore strategy meets the challenge set by climate change
on many levels:
Sustainable forestry
• We ensure that our most important rawmaterial, 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 store carbon
• 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 69% (67%) of the fuels
used. UPM is the second-largest generator of biomass-based electricity
in Europe.
Paper and pulp mills, which use power and heat in their production
processes, represent the majority of UPM’s total energy consumption.
Climate actions and energy efficiency
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 and co-owned 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 hydropower, the most effective and sustainable method of producing
balancing power. The new unit of the Harjavalta hydropower plant was
completed in September.
The project provides new possibilities for managing the water flow
rate in the Kokemäenjoki and, as a result, decreases the risk of flooding.
As part of the renovation project, facilities for a fish hatchery have been
built at the power plant. Hatcheries play an important role in
maintaining the populations of migratory fish species in rivers with
man-made structures.
UPM strives to continuously improve energy efficiency across all its
operations. For this purpose, UPMhas set a new continuous target to
improve energy efficiency by 1% annually. During the last 20 years,
energy efficiency in production has significantly improved due to energy
audits, innovations and internal campaigns. Electricity consumption
per tonne of paper has decreased by 14% over the past 10 years. As a
result of the energy-saving actions carried out in 2016, UPM reduced its
energy costs by EUR 1.9 (1.2) million, avoided 18,000 (8,100) tonnes of
CO2 emissions and achieved a 49,000 (32,000) MWh reduction in energy
consumption. The annual savings were EUR 2.0 (1.7) million, 17,300
(13,000) t CO2 and 92,000 (51,000) MWh.
In October 2016, UPMwas included in the CDP Climate A List.
UPMhas featured in the CDP Climate Index for eight consecutive years
as a result of its climate actions and transparent climate reporting.
CONTENTS
SOLAR SUCCESS FOR UPM SHOTTON
The construction of the UK’s largest solar park at Shotwick, Cheshire,
adjacent to the UPM Shotton paper mill, has brought yet another
opportunity for UPM to deliver on its 2030 renewable energy target
to reduce fossil CO2 emissions by 30%.
Solar power is a highly efficient method of energy production with
zero moving parts, meaning maintenance is kept to a minimum. Using
the latest in both photo-voltaic panels and cutting edge conversion
technology, the plant can produce on average 65 MWh/year.
A direct link to UPM Shotton’s own infrastructure means that the paper
mill can operate on 100% renewable energy during daylight hours.
The start-up of its second steam turbine, utilising excess steam from
its biomass combined heat power plant (CHP), in December 2016,
means the mill will be on track to meet its own energy efficiency targets
and significantly contribute to UPM Group’s 2030 responsibility targets.
UPM Shotton’s transition to 100% renewable energy started in 2006
with the start-up of its CHP. With a focus on energy efficiency, the mill
has continued to reduce its use of fossil fuels from the national grid.
The solar park development means it will reduce its purchase of power
to almost half.
Read more:
11 12 13 14 15 16 07 10 09 08
20
16
12
8
4
0
■ Total SO2
■ Total NOX
Paper production
Chemical pulp production
UPM’s acidifying flue gases
20
16
12
8
4
0
1,000 t mio t
11 12 13 14 15 16 07 10 09 08
8
6
4
2
0
■ CO2 from purchased electricity
■ CO2 from on-site energy generation
Paper production
Chemical pulp production
UPM’s fossil carbon dioxide emissions
16
12
8
4
0
mio t CO2/a mio t
In 2016, on-site CO2 emissions
(Scope 1) decreased mainly because
of change in energy supply at UPM
Hürth mill. CO2 of purchased electricity
(Scope 2) increased mainly due to
higher CO2 factors in Germany and
Finland.
In 2015, reduction was achieved
mainly due to investment in flue gas
purification at UPM Changshu paper
mill. In 2016, increase of NOx was
mainly due to the production increase
of chemical pulp.
ELECTRICITY GENERATION THROUGH OWN
POWER PLANTS AND SHAREHOLDINGS
TWh 2016 2015
Mill CHP 6.1 5.9
Hydropower 3.6 3.9
Nuclear power 4.7 4.7
Condensing power 0.5 0.4
Total 14.9 14.9
FUELS USED FOR HEAT GENERATION
TWh 2016 2015
Black liquor 19.7 17.6
Bark and other biomass 9.1 8.5
Heat recovered from TMP production 1.3 1.4
Renewable fuels total 30.1 27.5
Peat 1.0 1.1
Purchased heat 1.0 0.7
Natural gas 8.1 8.3
Oil 0.6 0.6
Coal 3.4 3.0
Total 44.2 41.2
CAPACITY TO GENERATE POWER THROUGH
OWN POWER PLANTS AND SHAREHOLDINGS
Nominal MW
Hydropower 722
Nuclear power 581
Condensing power 191
UPM Energy in total 1,494
Mill site combined heat and power (CHP) 1,415
Mill site hydropower 49
Mill site power generation in total 1,464
Total UPM 2,958
Reduction in acidifying
flue gases since 2008 24%
TARGETS
2030
Renewable
fuels share 69%
TARGETS
2030