MEEA Midwest Industrial Initiative Webinar
Nate Aden, James Bradbury, Forbes Tompkins
Energy Efficiency in U.S.
Midwest Pu...
This study seeks to answer four questions:
• How does Midwest mill energy intensity compare with the rest of
the country?
...
Today’s Presentation
1. Questions and background
2. Benchmarking & emissions inventory
3. Energy efficiency options
4. Cas...
Background on
Midwest Pulp and
Paper Mills
Most Midwest mills are located in
Wisconsin
There are three types of pulp and paper mill
in the Midwest
Benchmarking
and Emissions
Inventory
Midwest pulp and paper mills vary
widely in their energy intensity
EPI analysis indicates that Midwest mills
are less efficient than the U.S. average
Less-efficient Midwest mills could save
$120 million by improving efficiency to
national average mill level…
0
20
40
60
80...
…and a total of $240 million if they improved
performance to the ENERGY STAR® level.
0
20
40
60
80
100
EnergyPerformanceSc...
Michigan has the largest potential savings
followed by Minnesota
State Subtotal
Number
of mills
Average EPS
Potential ener...
Paper sector CO2 emissions
depend on scope
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
KS IL MO IN IA ...
Aggressive efficiency can reduce CO2
emissions by more than fuel switching alone
-
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2010 baseli...
Energy Efficient Options:
A range of technologies and practices are
available to reduce energy use
Midwest pulp and
paper mills could
cost-effectively
reduce their energy
intensity by 25%
Recycling and drying technologies have
significant savings potential
Case study plants
and companies
demonstrate the
business-case for
investment, and
illustrate the role of
policy
Leading plants and companies have already
successfully invested in energy efficiency
There are multiple benefits to energy
efficiency investment
Review of barriers, policies, and programs
Barriers
• Transaction costs, capital constraints, and incomplete information
F...
Policy recommendations
1. Benchmark industrial energy efficiency
performance
2. Introduce a mix of minimum standards and
“...
Key Findings and Conclusions
• Energy efficiency can help save the 350,000 jobs associated with U.S.
pulp and paper mills
...
Thanks!
Nate Aden
naden@wri.org
James Bradbury
jbradbury@wri.org
For more information, please see the full report at: http...
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Energy Efficiency in U.S. Midwest Pulp and Paper Mills

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Presentation by Nate Aden and James Bradbury for the July 17, 2013 Midwest Industrial Initiative Webinar co-hosted by the Midwest Energy Efficiency Alliance (MEEA) and World Resources Institute. Find out more at http://www.wri.org/event/2013/07/webinar-energy-efficiency-us-midwest-pulp-and-paper-mills

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  • How do Midwest pulp and paper manufacturers compare with facilities located in other regions of the country in terms of their energy intensity?What is the potential for near-term energy efficiency improvements in Midwest pulp and paper manufacturing?  How do the impacts of efficiency improvements compare with the energy and emissions impacts of fuel switching from coal and oil to natural gas alone? What are the most cost-effective options available for reducing the energy- and emissions-intensity of Midwestern mills? What policies currently affect paper sector energy use and emissions?  What are the key barriers and policy solutions for pulp and paper, as well as other energy-intensive sectors?
  • Why the Midwest? Why pulp and paper? 3rd largest energy-using manufacturing subsector; energy and emissions-intensive subsector; industry that has a footprint in all regions of the USembelmatic of
  • # of mills and production per stateProduction trendsEmployment trends
  • We have 93 mills in the MidwestPulp only, paper only, and integratedMost are paper-only, accounting for just over half of all pulp and paper production, by weight.Pulping is done by two different processesPlus recycling
  • Explain benchmarking approaches and challenges
  • Product mix
  • Explain EPI & EPS
  • Recently DC circuit rejected EPA’s proposal to assume zero emissions subject to studyWhich accelerates timeline for EPA decision65% of on-site from biomass for US average but US mills are more fossil-intensive than other regions
  • Primary driver is that most mills have already switched away from fossil fuelsThis calculation is based on the 7 out of 25 assessed mills that use coal or oilFuel switching is ideally combined with efficiency improvements; however, data are currently insufficient to display the emissions results from the combined scenario.Existing technologies best performing mills.
  • 3 benefits of ee investment: economic (cost reduction and competitiveness), jobs preservation, and environmentalMN trillion Btu program
  • Policies affecting energy-intensive sectors
  • Energy Efficiency in U.S. Midwest Pulp and Paper Mills

    1. 1. MEEA Midwest Industrial Initiative Webinar Nate Aden, James Bradbury, Forbes Tompkins Energy Efficiency in U.S. Midwest Pulp and Paper Mills
    2. 2. This study seeks to answer four questions: • How does Midwest mill energy intensity compare with the rest of the country? • What is the efficiency potential and what are the relative costs and emissions savings benefits? • What are the most cost-effective energy- and emissions-saving technology options? • What are the primary barriers to efficiency investment and potential policy solutions? Questions to be Answered
    3. 3. Today’s Presentation 1. Questions and background 2. Benchmarking & emissions inventory 3. Energy efficiency options 4. Case studies 5. Policy landscape & recommendations
    4. 4. Background on Midwest Pulp and Paper Mills
    5. 5. Most Midwest mills are located in Wisconsin
    6. 6. There are three types of pulp and paper mill in the Midwest
    7. 7. Benchmarking and Emissions Inventory
    8. 8. Midwest pulp and paper mills vary widely in their energy intensity
    9. 9. EPI analysis indicates that Midwest mills are less efficient than the U.S. average
    10. 10. Less-efficient Midwest mills could save $120 million by improving efficiency to national average mill level… 0 20 40 60 80 100 EnergyPerformanceScore ENERGYSTAR Efficiency Benchmark U.S. Average Efficiency Midwest Average Efficiency Initial 18 trillion Btu of energy savings worth $120 million Midwest Pulp and Paper Mills
    11. 11. …and a total of $240 million if they improved performance to the ENERGY STAR® level. 0 20 40 60 80 100 EnergyPerformanceScore ENERGYSTAR Efficiency Benchmark U.S. Average Efficiency Midwest Average Efficiency Initial 18 trillion Btu of energy savings worth $120 million ...additional 18 trillion Btu of energy savings worth $120 million Midwest Pulp and Paper Mills
    12. 12. Michigan has the largest potential savings followed by Minnesota State Subtotal Number of mills Average EPS Potential energy savings with ENERGY STAR performance (trillion Btu/year) Potential energy cost savings with ENERGY STAR performance ($ million/year) WI 7 62 10 $ 64 MN 6 40 11 $ 73 MI 4 20 13 $ 84 OH 4 39 3 $ 18 Midwest Subtotal 21 46 36 $ 240 Note: This table covers Midwest integrated or pulp-only mills with a 2010 EPS below 75; other Midwest states only have higher performing mills or paper-only mills.
    13. 13. Paper sector CO2 emissions depend on scope - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 KS IL MO IN IA OH MN MI WI GrossCO2Emissions(MetricTons) Biogenic CO2 Emission Indirect CO2 Emissions Direct CO2 Emissions
    14. 14. Aggressive efficiency can reduce CO2 emissions by more than fuel switching alone - 0.5 1.0 1.5 2.0 2.5 3.0 3.5 2010 baseline fuel switching ENERGY STAR benchmark level CO2Emissions(Mt) 19% 34%
    15. 15. Energy Efficient Options: A range of technologies and practices are available to reduce energy use
    16. 16. Midwest pulp and paper mills could cost-effectively reduce their energy intensity by 25%
    17. 17. Recycling and drying technologies have significant savings potential
    18. 18. Case study plants and companies demonstrate the business-case for investment, and illustrate the role of policy
    19. 19. Leading plants and companies have already successfully invested in energy efficiency
    20. 20. There are multiple benefits to energy efficiency investment
    21. 21. Review of barriers, policies, and programs Barriers • Transaction costs, capital constraints, and incomplete information Federal Landscape • Clean Air Act and Clean Water Act • Public Utility Regulatory Policies Act (PURPA) • US Climate Action Plan (June 2013) • White House Executive Order 13624 (Accelerating Investment in Industrial Energy Efficiency; 8/2012) • Programs at DOE, EPA, NIST • Legislation State Landscape • Technical, regulatory and financial assistance • Utility regulation over rates and grid access • EE targets and goals
    22. 22. Policy recommendations 1. Benchmark industrial energy efficiency performance 2. Introduce a mix of minimum standards and “reach” incentives 3. Support CHP utilization through state and federal policies 4. Develop new regulatory frameworks to promote electric utility-manufacturer collaboration 5. Build on current research to develop geographically and sectorally integrated climate policy
    23. 23. Key Findings and Conclusions • Energy efficiency can help save the 350,000 jobs associated with U.S. pulp and paper mills • More energy efficient Midwest pulp and paper mills would save millions of dollars in energy costs while cutting pollution • The situation among Midwest pulp and paper mills reflects choices facing energy-intensive manufacturers throughout the U.S. • New corporate and government policies can lower the hurdles preventing companies from fully realizing available costs savings and emissions reductions
    24. 24. Thanks! Nate Aden naden@wri.org James Bradbury jbradbury@wri.org For more information, please see the full report at: http://www.wri.org/publication/energy- efficiency-in-us-manufacturing-midwest-pulp-and-paper
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