Gulf Coast Clean Energy Application Center

The Paper Manufacturing market is made up of mills that utilize wood or recycled fiber to manufacture pulp or paper; as well as industries that use pulp and paper to make products such as paperboard boxes.1

CHP installations in our region (Louisiana, Oklahoma, Texas) include newsprint mills, paper and paperboard mills, as well as setup paperboard box manufacturing facilities.

For a more in-depth look at this industry, see the EPA's Profile of the Pulp and Paper Industry.

Issues

The Paper Manufacturing market is experiencing rising energy costs. In fact this issue is "the most pervasive problem facing North American mill managers today", according to a 2005 survey of pulp and paper mill managers.6 Increasing competition both at home and abroad has further highlighted the importance of cost cutting and efficiency improvements. More than 95 US mills have closed since 2000.2

Opportunities to control rising energy costs include:

Improvements to industrial processes, such as heat recovery at the thermomechanical pulping and paper drying stages.7
Capturing waste heat from boiler flue gasses and blowdown steam recovery7
Improving energy reliability and quality

In addition, the industry wants to demonstrate responsible environmental stewardship.3 This market is actively working to reduce fresh water consumption, solid waste generation and emissions.

Market characteristics

Typically, this market has:

Large annual operating hours (most more than 8000 hrs/yr)4
Large coincident electricity/thermal loads
High process heat demands
Aging plant infrastructure
Diverse biomass fuel and fossil fuel energy stream

The paper industry is ideally suited for CHP because of these characteristics. In fact, the paper industry is second only to the chemicals industry in CHP installed capacity.5 However paper ranks first in future CHP potential.8

For a diagrammatic summary of this market's energy use and loss, please see the U.S. Department of Energy's Forest Products Energy Footprint.

Case Studies

CHP systems reduced energy costs and generated substantial revenue from sales of excess capacity. Aging boilers were replaced.

Issues included spotty start-up reliability, underperforming equipment, and differences in corporate culture between utility and mill business partners.

Kimberly-Clark Mill, Everett, Washington - Pulp and tissue products manufacturing
SP Newsprint - Newberg, Oregon - Pulp and paper mill
FSC Paper Company - Illinois - Newsprint Mill

For additional case studies, visit Distributed Energy Case Study Database supported by the United States Department of Energy. Cases may be searched by market sector, site name, state, power size range, prime mover, fuel type and thermal energy use.

Energy Assessments

Georgia Pacific Palatka Plant, Florida - Kraft and tissue paper manufacturing
Caraustar Industries Chesapeake Mill, Maryland / Rittman Mill, Ohio - Paperboard mills
Augusta Newsprint, Georgia - Newsprint mill

References

Profile of the Pulp and Paper Industry, 2nd Edition, EPA (2002) - This profile includes geographic and economic information, industrial process descriptions, pollution outputs, the statutory and regulatory framework, and the compliance history for the pulp and paper industry.
Wisconsin Paper Mill Latest Victim of the Ax, Imrie, R. (April 30, 2006) - Internet news article by the Associated Press describing the circumstances that led to the paper mill closure in Park Falls, Wisconsin.
Industrial CHP on the Move in the Pacific Northwest, Ryan, J. (2004) - PowerPoint presentation delivered by John Ryan of the Washington State University Energy Program at the 5th Annual CHP Roadmap Workshop. Presentation briefly discusses the historical background of CHP in this region, encouraging recent developments, the regional potential, and partnerships to smooth CHP adoption.
Assessment of Large Combined Heat and Power Market, Energy and Environmental Analysis (2004) - An economic assessment of the 2-50 MW combined heat and power market. Evaluations focused on five prime movers, three types of gas turbine and two types of reciprocating engine.
CHP Market Status, Hedman, B. (2005) - Presentation given at the Gulf Coast CHP Roadmapping Workshop, which reviews the status of existing CHP at the national level, and compares national results with existing CHP in Louisiana, Oklahoma and Texas. Technical potential for additional CHP in this three state region is also provided.
How continuous Energy Improvement Increases Profitability and Reliability for the Pulp and Paper Industry, Industrial Efficiency Alliance (2005) - Flyer designed to encourage participation in the Industrial Energy Alliance. Descriptions of the energy saving process, training opportunities and other resources are included.
Opportunities to Improve Energy Efficiency and Reduce Greenhouse Gas Emissions in the U.S. Pulp and Paper Industry, Martin, N., Anglani, N., Einstein, D., Khrushch, M., Worrell, E. and Price, L.K. (2000) - This paper analyses the pulp and paper industry and identifies energy efficiency and carbon emission reduction opportunities at each process step and calculates the anticipated cost savings should those opportunities be realized.
Assessment of On-Site Power Opportunities in the Industrial Sector, Onsite Energy (Sept. 2001) -
The report identifies the current capacity and remaining technical potential for on-site power generation in the US industrial sector. Results are reported for individual industries, and in some cases for sub sectors within industries. General economic and environmental benefits of CHP are discussed along with CHP-related initiatives for individual industries.

U.S. Department of Energy Gulf Coast Clean Energy Application Center
4800 Research Forest Drive
The Woodlands, TX 77381

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