 | Folksam supports its assessment by stating that Billerud carries out excellent climate work and reports its carbon dioxide emissions with very high quality. Billerud aims to view its business from an eco-cycle perspective. Climate work is a good example of how an eco-cycle perspective is a prerequisite for success. Today around 90 % of heating energy and internal electricity production is based on renewable biofuel. By rebuilding the bark boilers at the Swedish mills, Billerud took a further step during the year to reducing consumption of oil.
Paper in an eco-cycle
Billerud’s products are based on renewable raw materials from the forest. After use the products can be re-used as recycled paper or utilised as an energy source by being burnt. The capability of the forest to capture carbon dioxide from combustion and re-use it during photo-synthesis means that the eco-cycle is closed. This eco-cycle is also in balance with nature, unlike plastic materials and the combustion of fossil fuels such as coal and oil.
Towards shared goals
Billerud’s environmental work is based on the Group’s policy for quality, the environment and social responsibility. One of the tools used to guide this work is the environmental management system at each mill. This system makes it easier to prioritise, follow up and control the business. Each mill has a programme of measures with targets for continuous improvements. In 2005, for example, the mills set targets in the waste and energy areas.
A pre-condition for success on the environmental front is having staff who are both knowledgeable and committed. All employees at the mills have received training covering every aspect from global environmental issues to mill-specific questions.
Green gold
Billerud does not own any forest, but sustainable forest management is a decisive factor for the future of the business.
Because the forest is a renewable raw material and modern forest management uses eco-friendly methods it can be said that Sweden’s forests are used but not consumed. Due to the Gudrun storm in Sweden, felling levels were higher than growth levels in 2005, but the fact remains that Sweden has never had more forest than now.
Where from, and how much
Each year Billerud purchases and consumes around 5.5 million cubic metres of wood raw materials. This comprises softwood and hardwood primarily from Sweden. A central purchasing function negotiates agreements with suppliers and is responsible for ensuring sufficient quantities of wood at the right place at the right time. Purchasing agreements are signed with each supplier and include Billerud’s demands for environmental consideration when harvesting and transporting logs.
Most wood is purchased from Stora Enso, Sveaskog and Holmen. To avoid unnecessary transport Billerud tries to use locally harvested wood as much as possible. Between 15 % and 20 % of wood is imported, primarily from the Baltic states and Russia.
Demands on suppliers
Billerud’s basic requirements for wood materials are that the wood comes from sources were harvesting is performed in accordance with local laws and statutes. Wood must not come from controversial sources, key biotopes, forests where there is serious social conflict or forests protected by law. Raw material must not be contaminated with mould or be treated with chemicals that are forbidden in Sweden. Transport must be carried out in an environmentally acceptable way.
Billerud’s Swedish mills are certified in accordance with both the PEFC and FSC.
The PEFC is an international system for the certification of forestry. The aim is to develop sustainable forestry with a good balance between three key areas – forest production, the environment and social interests.
The FSC is an international organisation that promotes environmentally-adapted, socially beneficial and economically viable use of the globe’s forests. Products certified with the FSC standard come from forests that are managed responsibly in terms of the environment, the community and financial interests. These certificates enable Billerud to sell eco-labelled products in proportion to the volume of certified wood it purchases. Billerud’s purchasing department works actively to increase purchases of traceable and certified wood raw materials.
Biofuels powering the mills
Billerud’s mills are to a very large extent self-sufficient in energy, most of which comes from burning bark and a wood component called lignin. Around 90 % of heating energy and internal electricity production are based on renewable biofuel. The rest comes from burning oil and gas. Of total electricity requirements, around 30% is currently generated by the mills’ own turbines. After the current round of energy investments is completed, these turbines will produce around 60 % of electricity requirements.
Boilers generating heating energy
A large portion of the heating energy used to make pulp and paper is produced in the mills’ recovery boilers. During pulp production, wood fibres are separated from each other by dissolving the lignin that binds them together. The lignin is later used as fuel in the recovery boiler. In addition to producing energy the recovery boilers also recover chemicals. The remainder of the heating energy needed is generated in the bark boilers by burning other biofuels such as wood bark. The boilers produce steam that is used in production processes and to power the turbines that produce electricity.
Energy project – a successful investment
In 2004 Billerud decided to invest MSEK 1,050 in the rebuild of bark boilers and new construction of turbines at the Swedish mills. Improved electricity intake at the Gruvön mill was also included.
The investment gives the bark boilers combustion technology that is better for the environment and more efficient. It means consuming less fossil fuels and more biofuel. The rebuilt bark boilers were in operation at the end of 2005. The new turbines will be started up in 2006 and will raise Billerud’s self-sufficiency in electricity from 30 % to 60 % by 2007.
The hunt for kilowatt hours
Work aimed at reducing overall energy consumption has been going on for many years and progress is continuous. This is an area where environmental and financial considerations coincide. Saving energy reduces emissions of greenhouse gases and cuts costs. Energy is saved by recycling surplus energy in process liquids, waste water and flue gases. Where possible, the mills supply excess heating to district heating networks.
A good example of saving energy is a project carried out over several years at the bleaching plant at Skärblacka. By controlling and optimising process temperatures and hot water production, consumption of heating energy has been cut in half in three years.
Another example of saving energy is Karlsborg’s investment in a new bark press that replaced six older presses. The new press was started in 2005 and the reduction in electricity consumption is the equivalent of energy required for 20 average homes.
Tax discounts stimulate improvements
In 2005 Billerud’s Swedish mills were approved for participation in the Swedish Energy Agency’s Programme for Energy Efficiency, which is aimed at energy-intensive businesses. Participants that meet the programme’s requirements get an energy tax discount of SEK 0.005 per kWh, which means an annual saving of MSEK 8 for Billerud. A mill has to identify sources with the greatest potential for energy saving and report the improvements it is committed to making.
On track
Transport has a big impact on the environment. Billerud works proactively to reduce this impact by prioritising rail transport. Every day raw materials are transported into the mills and finished products are carried out to customers all over the world. This transport accounts for a relatively large portion of the company’s overall emissions to air. Billerud works systematically to ensure that environment and quality requirements are followed by transport companies. Billerud has freight agreements whereby transport companies are committed to reporting which vehicles are used for loading at the mills and which environmental classification they have.
Billerud works proactively to identify the transport solution that provides the best quality, shortest and most reliable route and most minimal environmental impact. The amount of road-based transport has been reduced and today around 75 % of transport from the mills is by rail.
Part-owner of transport company
Together with four other forest companies, Billerud has formed a transport company, Scandfibre Logistics, which manages rail transport exclusively and currently handles around 2 million tonnes of products per year. The scale of the business generates cost-efficiency that would be almost impossible for the owners to achieve by themselves. Most of the trains run from mills in Sweden to customers in continental Europe.
Round and round
Various types of waste are produced at Billerud’s mills, including ash from bark boilers, fibre sludge, metal waste and building waste.This waste is sorted at source and recycled as far as possible in various ways. Some waste is burnt to generate energy while the materials in other waste are recycled. Hazardous waste, such as waste oil, material contaminated with oil, paint, batteries and light bulbs are collected and taken care of by external recycling companies.
Waste used to make roads
For several years Billerud has looked to find alternatives for waste sent as landfill. The aim is to reuse this material in a resource-efficient way. One good example is a project being performed in collaboration with the Swedish Road Administration. Lime sludge extracted from the chemical recycling process is mixed with crushed aggregate and spread on gravel roads. Tests show that the lime sludge acts as a binding agent. The result is less dust on the road and a more rigid road surface that withstands rain and wear much better.
Chemicals in an eco-cycle
Billerud recycles around 90 % of the cooking chemicals used in pulp production. Recycling these chemicals is essential both in environmental and economic terms. All chemicals used at the mills must be approved first by the mill’s own inspectors who check the impact on the external environment, the working environment and the end product.
Environmental legislation regulates activities
Billerud’s four mills are affected by extensive environmental legislation. The manufacture of pulp and paper requires a permit from the authorities. Permits stipulate maximum production volumes, limits on emissions to air and water, noise and waste management responsibilities.
Billerud had all the required permits necessary to conduct operations at the volumes that were produced in 2005.
Immediate environment in ecological balance
With the help of independent experts, Billerud regularly inspects the immediate environment around its mills to measure the effects of its activities. One example of this is the tests made on perch fish performed outside the Karlsborg mill in 2004. This study showed that there was no impact on the oxygen-consuming capability or the immunity system of the fish.
The existence of lichen is a good indicator of air quality. Lichen is highly sensitive for some airborne pollutants such as sulphur dioxide. Analysis of the immediate surroundingsof the Gruvön mill in recent years have shown that certain types of sensitive lichen have returned to the area. This confirms that work aimed at reducing airborne emissions has been successful.
Environmental investments
In 2005 Billerud invested MSEK 456 in environmental measures. The largest investments over the past two years were the rebuild of the bark boilers, the installation of new turbines at the three Swedish mills and new bio-treatment at the Gruvön mill. In 2005 new flue gas treatment equipment was installed on one of the lime kilns at Skärblacka.
New treatment plant provides environmental benefits
Gruvön’s new treatment plant for waste water will come into operation in 2006. It is a pre-condition for being able to increase production in the future. The investment is worth MSEK 247 and will mean that Gruvön will cut emissions considerably. Various micro-organisms in the bio-reactor break down pollutants in the waste water and thus reduce emissions. Billerud expects emissions of oxygen-consuming substances, COD, to be cut by around 30 %. Reductions of emissions of nutritive salts (phosphorous and nitrogen compounds) are also estimated to be at least 30 %.
Dialogue with local residents
A positive dialogue with residents close to the mills is very important. Billerud’s mills have regular contacts with local residents in order to monitor their opinions and inform about activities. The mills also operate systems whereby the general public or special environmental observers contact the mill concerning irregular odours or other disturbances. This creates a good source of information for planning remedial measures.
Consumption and emission trends
Measuring and analysing the consumption of resources and emissions is vital for continuous improvement in the environmental field. The following page shows current trends for key emissions and consumption of electricity and oil.
Environmental reports
Extensive environmental reports for each mill are available at www.billerud.com or can be ordered from the mills. |
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