Profitability and off-site CO2-emission reduction from energy savings in the pulp and paper industry in different future energy markets

Journal article, 2012

Previous studies by the authors have shown that energy savings in pulp and paper mills offer opportunities for increased electricity production on-site or wood fuel export. The energy export implies reductions in CO2 emissions off-site, where fossil fuel or fossil-fuel-based electricity is replaced. To assess this potential and the related profitability for a future situation, four energy market scenarios were used. For a typical Scandinavian mill, the potential for CO2-emission reductions was 15–140 kton year-1 depending on the scenario and the form of energy export. Extrapolated to all relevant mills in Sweden, the potential was 0.4–3.1 Mton year-1, which is in the order of percent of the Swedish CO2 emissions. Wood fuel export implies larger reduction in CO2 emissions in most scenarios. In contrast, electricity export showed better economy in most of the cases studied; with annual earnings of 5–6Mh, this is an economically robust option. In the market pulp mill investigated, the wood fuel export was in the form of lignin. Lignin could possibly be valued as oil, regarding both price and potential for CO2-emission reduction, making lignin separation an option with good profitability and large reductions of CO2 emissions.