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With more companies setting Science-Based Target initiative (SBTi) goals and more than half of the world’s largest companies making Net Zero commitments, this global pulp and paper company decided to add its paper manufacturing operations to the decarbonization movement and chart a least-cost path to Net Zero. The path envisioned would reduce its sites’ emissions by 50% by 2030 against a 2010 baseline and reach the Net Zero target by 2040.
The challenge they face is that paper mills are large, energy-intensive facilities with long-term manufacturing assets fired by substantial amounts of fossil fuels. Their need for medium- and high-temperature heat for production processes adds significant complexity to their decarbonization ambitions. If the company is to meet its goals, it needs to find solutions for its most energy-intensive and polluting sites. In the best-case scenario, the recommended solutions for these sites would be applicable to the rest of their sites, enabling efficient implementation across their production portfolio.
At the site level, a detailed study was undertaken to identify the best solutions for tackling the challenge of decarbonizing a paper mill, with consideration given to green fuels, electrification, heat recovery, and carbon capture, utilization and storage (CCUS). Experience has shown that an integrated approach consisting of energy conservation measures (ECMs), multiple low-carbon fuel sources, and various technologies is the best way to address the energy needs of a paper production site while ensuring business continuity.
To identify the optimal pathway to carbon emissions reduction, ENGIE Impact conducted a Net Zero Factory process to assess the inputs, create and compare scenarios, and project the outcomes of those scenarios in detail.
Starting with a site demand and emission baseline, four parameters were used to model projected scenarios:
After inputting this data, three different scenarios – green thermal, hydrogen, and CCUS – were defined, modeled, and compared both to business as usual (the as-is situation with no technical changes to existing equipment), and to one another.
The first step of any decarbonization strategy is to address the ‘low-hanging fruit’. Accordingly, each scenario modeled here starts with a combination of ECMs and onsite photovoltaic arrays at the client’s facilities. The next step was to identify and choose from among low-carbon production assets, which included a variety of boilers (wood pellet, wood chips, electric steam, syngas), an anaerobic digester, and CCUS, depending on the modelled scenario. Projections showed the green thermal scenarios as being the least-cost decarbonization pathway for the plant.
Based on the three scenarios, ENGIE Impact proposed a consolidated low-complexity action plan for 2030 and a high-impact action plan for 2040, relying on biomass and biogas asset installation.
The roadmap is composed of the following milestones:
In addition to providing detailed decarbonization scenarios, ENGIE Impact also provided risk assessment, mainly concerning the availability and sourcing of biomass and biogas. By analyzing market parameters, a decision tree was created for the short- and mid-term to help the client navigate uncertainties about these low-carbon solutions, such as whether they should rely on third-party contractors for the biomass feedstock and boilers to generate heat, or whether they should undertake the potentially challenging task of securing a biomass supply and monitoring the market on their own.
Decarbonizing sites in the pulp and paper industry is complex but achievable with a clear understanding of the available technology and low-carbon fuels, market readiness, and cost dynamics. This is where finding the right energy partner to accompany them along their journey can provide companies with a competitive edge. ENGIE Impact relied on its proprietary modeling tools to develop these scenarios and point the way forward for this pulp and paper manufacturer, helping them upgrade their paper production assets for long-term resilience while significantly reducing emissions.
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