Innventia Group. Annual Review Boosting business with science

Transcription

1 Innventia Group Annual Review 2011 Boosting business with science

2 INNVENTIA AB Photographs by Johan Olsson, Jan Christian Sørlie and Innventia Graphic design: Innventia Printed by SIB-tryck, Norsborg, in April 2012

3 Contents President s message...5 Highlights of Your innovation partner meet some of our staff...9 Business area Biorefining...12 Business area Material Processes...14 Business area Packaging Solutions...16 PFI...18 Corporate social responsibility Board of Directors Executive Board Financial statements...24

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5 Innventia Group Annual Review 2011 During 2011, several market breakthroughs were made that originated from originated with Innventia s research activities; Domtar purchased the first commercial LignoBoost plant, Södra Cell launched the new biocomposite material DuraPulp and also indicated a possible investment in LignoBoost, which would make the Mörrum mill entirely fossil fuel-free, Stora Enso is investing in nanotechnology and is building a nanocellulose production facility. As a research organisation, it is fantastic to find out several years later that the development we have contributed to is now reaching the market. The breakthroughs of the past year can be seen as the fruits of Innventia s new way of working and its role as an innovation partner. Today, many pulp and paper companies are looking for brand new products, while at the same time constantly trimming their organisations and the production of current products. It is often almost impossible to balance the two sides of this equation. We can help to meet their needs, and we now accompany them considerably further down the route towards implementing new technology or launching new products. Where our job once ended with a research report, we can now provide support all the way through to the launch. However, the Cluster Research Programme remains the core of Innventia s operations. Many pioneering processes and products within the forest industry have their origins in this programme. Last year saw preparations being made for the new three-year programme which started at the beginning of this year. There has been a great deal of interest in the proposed research programme, and the majority of our Partner customers are choosing to maintain the same long-term investment in Innventia s research activities as before a ringing endorsement in view of the tough conditions currently faced by the industry. We have also gained a number of new customers, which shows the relevance of our programme. Investing in high-risk projects as a company is considerably more appealing a prospect if others are sharing the investment, but it makes the issue of intellectual property rights (IPR) increasingly complicated. We are also seeing an increase in international patenting within our fields of research, which further stresses the question of IPR. We therefore worked hard to improve our IPR strategy ahead of the new research programme, so that our customer companies could feel confident that we are doing what we can to optimise the chances of a profitable investment. In addition to IPR issues being dealt with as correctly as possible so as not to jeopardise future business opportunities, an attractive research programme also requires the composition of companies and industries to be right in order for new findings to have a sound breeding ground and develop in the best possible way, and that collaboration with academia should be far-reaching in order to capture new knowledge and technology that are relevant to participating companies. Although the research programme is Innventia s core, there is also a clear trend towards major bilateral investments. Companies prefer to share the risks with other companies at an early stage, when the research and the development projects are more generic. Once a business opportunity has been identified, however, development must be adapted to suit the company s own operations. Here, too, there is a significant difference as compared to before. When our development leads to a product opportunity which is new for the company, the company may not have any established expertise of its own in the field. This is when Innventia can provide continued support for development, while the company simultaneously builds up its own expertise. Being directly involved in this way in something that could, in the future, become a key activity for a company, imposes great demands on Innventia. One area that is currently a hot topic, and one in which we will continue to enjoy a strong position, is the pulp mill as a biorefinery. Here, we are looking at both separation processes and which end-products the sub-streams could result in. Five or six years ago, a wood-based biorefinery was seen as something extremely futuristic, with only a few companies putting their faith in the concept. Today, the picture is very different and this was particularly evident in the record levels of interest in the Nordic Wood Biorefinery Conference held in March In connection with the conference, we also arranged a workshop at Innventia on carbon fibres from lignin, an area in which research resulted among other things in two patent applications last year. In February 2011, we unveiled our pilot facility for larger-scale nanocellulose production, based on a new, energy-efficient method. The development of economical, financially realistic nanocellulose production has opened up opportunities for new nanocellulose products within paper and board, as well as for completely different applications. Cellulose composites, which can be pressed or moulded for use in design and décor, and for biobarriers in packaging, have generated significant interest due to being based on renewable raw materials. As trends head towards commercialisable products, close relationships and an innovation partnership a partner that companies can turn to for all matters, whether they relate to process development, pilot operations or pulp mill simulation become increasingly important. Alongside the development of these new areas, we have extensive operations within more traditional pulp, paper and packaging fields, with a focus on production efficiency, raw material consumption and quality improvements for existing products. Thanks to our close relationships with industry, we are now able to identify a number of ventures for working together to convert research findings into reality. We will continue to build our relationships and ensure that we have employees who match the requirements and speak the language of the industry. In order to be able to build up knowledge within areas that industry does not yet want to co-finance areas in which industry might not currently see any direct commercial benefit it is important that we also seek collaboration with public financiers and other research players, not least the institutions within the RISE group. Swedish expertise enjoys an excellent reputation internationally, and we need to maintain this. Birgitta Sundblad President 5

6 High-lights of 2011 January The European Commission authorised a Swedish grant of SEK 90 million to develop a LignoBoost demonstration plant at Södra Cell Mörrum The nanocellulose pilot plant at Innventia was inaugurated 10 February, The NWBC2011 attracted more than 300 delegates from more than 60 countries. As of 1 July, 2011, Birgitta Sundblad is the President of Innventia. February Birgitta Sundblad was appointed President of Innventia. The world s first pilot plant to produce nanocellulose (also called microfibrillated cellulose) on a large scale was inaugurated at Innventia in Stockholm. This new facility makes it possible to study the use of nanocellulose in applications that require more material. PFI carried out industrial scale trials with the production of nanocellulose with an energy consumption of 1,600 kwh/t. The ATMP (Advanced Thermo Mechanical Pulping) technology, which has been developed by PFI, Norske Skog and Andritz, was implemented at UPM Steyrermühl. PFI arranged a workshop entitled Raw material logistics and energy densification of biomass as a basis for Norwegian bioenergy production. March The third Nordic Wood Biorefinery Conference, NWBC 2011, in Stockholm drew more than 340 delegates, representing over 60 industrial companies and several research organisations from more than 30 countries. The three-day conference, organised by Innventia and VTT, presented the latest ideas and developments within separation and conversion processes, as well as new wood biorefinery products. The EU project AFORE arranged a local workshop on the last day of NWBC In connection with NWBC 2011, Innventia arranged a workshop addressing questions relating to the needs, possibilities and benefits of lignin-based carbon fibres. Invitees from the industry and the scientific community gathered to discuss how this material could meet the end customer s demands in terms of product performance and the market need for renewable products. The first issue of the contents of the Cluster Research Programme was sent to the Partner customers. PFI carried out a full-scale trial at Hønefoss Fjernvarme. In this trial, heating oil was successfully replaced with renewable pyrolysis oil. April Innventia arranged a seminar on the topic of renewability and sustainability from a holistic perspective. A new Cluster Research Programme started on 1 January, 2012 One well-established enterprise at Innventia is the Cluster Research Programme, which runs for three years. Here, our customers collaborate to solve problems that they have in common and generate new possibilities, using the resources and expertise available at Innventia. The creation of a new research programme is a systematic, ongoing process that takes place in discussion with our Partners customers to evaluate ideas and concepts that focus on future needs. The new programme (see the next page) is a collection of 13 clusters that have great potential for achieving technical accomplishments in many fields, viz. new materials, new functions and efficient processes. Halfway through the ongoing research programme, the process of gathering ideas and needs begins. This could involve suggestions from the clusters or issues that have arisen through Innventia s network of university colleges, universities and other research institutes, or from our internal publicly financed development of competence areas. Alongside this, we also work to draw up patent maps to identify the areas with the greatest potential. 6

7 Innventia Group Annual Review 2011 A series of individual meetings with Innventia Partner customers was held to discuss the prospects for the new Cluster Research Programme. May Innventia took part in SPCI 2011, presenting new wood-based materials and new processes in seminars and on display at its stand. Södra announced their intention to commence production of DuraPulp, a composite material made from specially selected pulp from Södra Cell combined with a renewable biopolymer. DuraPulp is the result of many years of research collaboration with Innventia. Innventia was represented at the opening ceremony of a new research and innovation centre, Centro de Pesquisa e Inovação Sueco-Brasileiro (CISB), in São Bernardo, Brazil. June Innventia hosted a seminar on CFD for Dispersed Multi-Phase Flows as part of the ERCOFTAC Best Practice Guidance Course Series. The tenth annual meeting of Mint Environmental Indicators and Network for the Newspaper Industry was held at Innventia. The PFI article Cellulose fibres, nanofibrils and microfibrils: The morphological sequence of MFC components from a plant physiology and fibre technology point of view by Gary Chinga Carrasco was the most downloaded article in Nanoscale Research Letters. July Birgitta Sundblad took up the position of President of Innventia. Lennart Salmén was appointed the new President of IAWS. Innventia was represented at Almedalen 2011 in workshops and seminars arranged by Innventia s part-owner RISE, Research Institutes of Sweden Holding. It was announced that the PFI article Strength and barrier properties of MFC films by Kristin Syverud and Per Stenius was one of the five most downloaded articles in Cellulose magazine during 2008 and August The seminar Novel materials from wood or cellulose was arranged in connection with the annual meeting of IAWS in Stockholm. Doctorates in 2011 Chris Dominic Packaging Logistics Performance PhD, Lund University Dmitri Gorski ATMP Process: Improved Energy Efficiency in TMP Refining Utilizing Selective Wood Disintegration and Targeted Application of Chemicals PhD, Mid Sweden University Galina Rodionova Chemical Modification of Microfibrillated Cellulose: Effects on film barriers PhD, Norwegian University of Science and Technology Jasna Stevanic Srndovic Interactions between Wood Polymers in Wood Cell Walls and Cellulose/Hemicellulose Biocomposites PhD, Chalmers University Kando Khalifa Janga Concentrated Sulfuric Acid Hydrolysis of Hardwood Aspen and Softwood Pine for Biotethanol Production PhD, Norwegian University of Science and Technology Klodian Xhanari Nanosized cellulose fibrils as stabilizers of emulsions PhD, Norwegian University of Science and Technology Mihaela Tanase Extractiaves in process water from compessive pretreatment of chips in mechanical pulping PhD, Norwegian University of Science and Technology At the end of the second year, an initial long list is compiled for internal evaluation. Here, an assessment is made of which suggestions are suitable for presenting to industry. In March, the first version of the new research programme is sent out to our partner companies. Company discussions between Innventia and our partners then take place in late spring. In these discussions, we evaluate which project proposals are most suitable within the framework of cluster research and which would be more appropriate as individual commissioned research projects. In early June, a revised version is sent to our partners. Their task is now to choose which clusters they want to participate in. Innventia also investigates the possibility of involving more companies, either as full partners or as invitees in individual clusters. During September and October, we work hard to set up the new programme so that the new cluster boards can hold their prioritisation meetings in November. Following the prioritisation meetings, Innventia s researchers work on the detailed planning for the new programme before it begins in January. 7

8 Innventia Group Annual Review 2011 Marco Lucisano was awarded Best Presentation Award during the International Paper Physics conference. Innventia s new equipment for measuring barrier properties was inaugurated in September. Approx. 200 people where gathered at the conference on tomorrow s packaging materials. September For the second time, Innventia s Marco Lucisano was awarded Best Presentation Award during the International Paper Physics conference in Graz, Austria. The Research Seminar for Innventia Partner Customers presented the results from three years of research within the Cluster Research Programme. A trend seminar was arranged at Innventia in connection with the annual meeting of the Private Owners Association Packforsk. Innventia s extended barrier laboratory was inaugurated. The new Mocon equipment will enable Innventia to obtain results for particularly dense materials and packaging. PFI was named the best stand at the research arena Forskningstorget in Trondheim. October To draw attention to the importance of material identity, Innventia carried out a field version of a perfume packaging study at the EasyFairs Pack & Emballage fair in Stockholm. PFI was co-organiser of the Nordic Wood Processing Symposium. PFI was co-organiser of a seminar on creating value through innovative wood treatment and the production of wood-based composites. November Innventia s web-based application ChemSource online and its related database were sold to Argentum Environment AB. Together with Packbridge and Packaging Mid Sweden, Innventia arranged a full-house seminar on the packaging material of the future. The seminar attracted a variety of companies representing the entire value chain, from material production, via converting to consumer sales, as well as trade owners. The ForestBeyond Research Pitch gathered scientists, companies, entrepreneurs and investors to work together on researchers ideas for commercial products and services in dynamic workshops. PFI arranged the seminar Lignocellulosics as a basis for second generation biofuels and the future biorefinery. December Metso announced the sale of the first commercial LignoBoost plant. The LignoBoost process, which was developed by researchers at Innventia and Chalmers University of Technology, will enable Domtar to increase its pulp mill capacity while also benefiting from a new by-product. Södra announced its intention to invest in LignoBoost at Södra Cell Mörrum. Cluster Research Programme The kraft pulp fibre line Chemical and energy recovery in the kraft pulp mill Biorefinery processes and products Fibre, stock and product optimisation Nanocellulose process Optimized production by advanced paper chemistry Process efficiency and variability in papermaking Paper mechanics for improved quality Improved convertability of paperboard New wood fibre-based materials Bio-based barriers for packaging materials Tools to predict flexographic print quality for packaging Tissue ( ) Innventia s patent policy for multi-client research Innventia uses patents to protect ideas and fields in which we carry out or may carry out research and development. These ideas can then form the basis for projects with one or more participating companies. Innventia does not aim to be a long-term owner of technology or to hold a large portfolio of patents. In a multi-client commission, such as a cluster within a research programme, participating companies can choose to take over and co-own a patent if this is applied for during the agreement period. Results for which a patent is not applied for during the agreement period remain the property of Innventia, but with a non-exclusive licence for the companies that participated in the cluster to use the results in their operations. 8

9 Your innovation partner Meet some of our staff Innventia Group Annual Review 2011 Shant Anadolyan age 26 Laboratory Engineer, Biorefinery Processes and Products Likes training, music production and performance poetry» What I really enjoy about my work is the fact that it s so varied and offers so many challenges. I get to work with lots of people, both internally and externally with customers and suppliers. We often carry out tests here with lab equipment or pilot equipment, but it can also involve pilotscale trials in Bäckhammar or on-site with the customer, such as testing LignoBoost directly on the pulp mill s own black liquor. When I first joined Innventia two years ago, it was the LignoBoost process and lignin precipitation that took up most of my time, but more recently I ve been involved in pulp cooking to produce pulp for various research purposes. I m also responsible for our pelleting equipment and carrying out tests to determine whether fuel pellets can be made from various materials and what their properties are, for example. My work always provides new experiences and opportunities to learn new things. I m passionate about new challenges. As soon as I get the chance to do something I ve never done before, I become extremely stimulated and driven, even though I sometimes also feel a little nervous. I get the same feeling up on stage, too, like at the live music event arranged by the company s social club last spring. «Åsa Samuelsson age 42 Research Manager, Energy and Mill Systems Likes taking care of her house in the archipelago» Just imagine if we could sit in as advisors in our customers development groups. I d love to be involved as a part of their plans for the future. We have a great deal to contribute, and for many of them we have become very close partners. When a pulp mill considers introducing a new process, we can look at the effects of such an installation. For example, what happens if we insert a LignoBoost? How does the process fit in, in purely technical terms? How are other streams affected? And ultimately, what are the financial terms? We can use our models to find out what the future might bring. Another important part of our work is problem-solving, particularly when it comes to inorganic chemistry. Simulation and modelling have a significant advantage you don t need to bring the plant to a standstill. When something goes wrong, we think that we often can describe why it happened and help the customer to understand the process in order to avoid the same thing in the future. The best thing is when we encounter moments of sudden realisation at the mill. That s when we can tell that what we re doing is useful. Customers know their processes inside out, but we have knowledge about overall process chemistry and can provide suggestions for how to improve these processes or make them and our customers more profitable. «9

10 Anita Teleman age 54 Research Manager, Printing Surfaces Is happiest when spending time with her grandchild or on a horseback» One thing that I really appreciate here at Innventia is our collaboration across several different fields. Interdisciplinary thinking helps us to make progress, and there are plenty of people here with a high degree of expertise. We certainly benefit from this when thinking about printing surfaces it s the manufacturing process that produces the surface, and you need to understand the underlying reasons why problems can arise. I believe that my experience from having worked in academia, industry and institutions has given me both working methods and an understanding of the need to be able to demonstrate the benefits of research. Discussing issues together is an important part of customer contact. It s particularly enjoyable when we can help them and show how we can actually measure the quality of the printing they can see. There s a constant need for measuring methods, such as OptiTopo and STFI Mottling, since new things are happening all the time. New printing techniques, higher press speeds, etc. bring new opportunities, but also new problems to resolve together with our customers. It s always rewarding to see how research can be used in the industry. Winning the 2003 Marcus Wallenberg Prize was proof of this, and is something I am extremely proud of. «Fredrik Rosén age 32 Research Manager, Product Appearance and Usability Likes to spend time in the countryside of Hälsingland» I m happiest when I m with other people. Perhaps that s one of the reasons why I was so keen to take on the role of Group Manager within what is a new area for me. As a manager, I look forward to developing people and working with them to identify new business opportunities. I ve had the advantage of spending a lot of time out in the field within the industry. This has given me plenty of experience, and I also have experience from the role of cluster leader. It is always a matter of taking the advantage of Innventias competence and skills and seeing how this can help meeting the needs of the industry. Over the next year and a half, I ll also be spending some of my time at London Business School, where I ve been studying for an Executive MBA since autumn This has been possible thanks to a scholarship from the Marcus Wallenberg Foundation for Education in International Industrial Enterprise. This new knowledge will really come in handy. For example, studying business strategy and leadership feels particularly relevant in connection with my new role. And you also learn to work with lots of different people. There are people from around 40 different countries on the course. «Helena Nilsson age 30 Research Manager, New Materials and Composites Has taken up show dancing and likes working with her hands» I believe that in the future we will have to learn to obtain benefits from working in partnership with nature. Perhaps that s why I like working to develop green materials, creating something using natural raw materials. It was this interest that led me to Innventia, where I completed my degree project, working to develop barrier and composite materials based on biopolymers. After completing my degree project the very next day, in fact I joined Innventia as a research engineer which later led to a PhD project, financed by the Wallenberg Wood Science Center (WWSC). This largely involved using and optimising the organisation of cellulose fibrils in connection with the properties of a new cellulose material. I ll now be working with completely different organisational issues as Group Manager. It s great that the company focuses on younger managers. It shows a forwardlooking approach. As a new manager, it can be easier to come up with brand new ideas, and it ll be really exciting to see what we can achieve in the new organisation. For me personally, it ll also be a new stage of my development, but this year I ll still have some involvement in research. The plan is to defend my thesis after the summer, so with my new role as well it ll be a busy year! «10

11 Innventia Group Annual Review 2011 Magnus Hillergren age 37 Technician, Process Solutions Is happiest when riding a mountain bike in the forest» I come into contact with many people in my work, and most of my tasks are short-term and varied. When you know what you want to do but not how to achieve it in practice, it can be worth involving me in the discussions. I work best of all when there s a goal, something to aim towards, but no answer to the question of how to get there. That s the kind of challenge I like. It might involve developing new equipment for various tests and a directive of Come up with something, do it. Then it s a case of being creative, as there are rarely ready-made solutions available. One of the most successful ideas turned out to be an important piece of the puzzle in the development of equipment for online measurement of topography. I happened to get involved in a project where I would help with an installation. I hardly understood what I would do, but the aim was to get two cameras to see the same image on a track in order to calculate the topography, and this is difficult with a track that runs at extremely high speeds. Then it struck me that we could use a colour camera, and I thought that this must work. And it did. Everything suggests that the solution which is now in full use at a mill is robust and entirely unaffected by speed. It s extremely pleasing to have played a part in this. «Paul Krochak age 36 Senior Research Associate, Process Solutions Likes food and wine, and is addicted to long-distance running» Before coming to Sweden and Innventia just over two years ago, I worked at the University of British Columbia, pulp and paper research centre on issues relating to headbox flows, fibre orientation and retention aids. In other words, the same areas I currently work with. The real difference is that I now work closer to the needs of industry, for example as cluster leader for the process efficiency and variability in papermaking cluster. I really enjoy working with all our customers. They re extremely smart, and they have so much to offer. They know their processes, and by working closely with them I get an understanding of what the real problems are. At Innventia, we can take a deeper and broader look at these problems. We might find the cause of the problem where we least expected to. Here, our customers benefit from our interest, our knowledge and our experience. I feel that this work suits me perfectly, in terms of both customer contact and working with my colleagues. There s actually only one problem and that s the weather. Coming from Vancouver, I m not used to cold winter days when it s minus 20! «11

12 Business area Biorefining I n 2011, LignoBoost made its real breakthrough. Ever since the technology which was developed in collaboration between Innventia and Chalmers University of Technology was sold to Metso in 2008, there has been a great deal of anticipation about which company would be first with an industrial installation. This eventually turned out to be the North American company Domtar. We hope that more companies will decide to invest during 2012, with both Södra and Stora Enso having received publicly financed support for LignoBoost. By integrating LignoBoost into a pulp mill, production can be streamlined, while at the same time a valuable new product is obtained in the form of lignin. Similarly, we are now working to develop new processes for more wood derivatives and various applications for these. We are experts in this field, and our customers who often act as ambassadors for new customers are aware of this. They know that they can turn to us for many different matters using us as innovation partner - whether they relate to the LignoBoost process, lignin applications or pulp mill simulations. Five or six year ago, a wood-based biorefinery was seen as something extremely futuristic, but there were only a few companies that believed in the concept. The fact that this attitude has changed was clear at the Nordic Wood Biorefinery Conference, NWBC 2011, which drew more than 350 people and 60 participating companies to Stockholm in March. Preparations for NWBC 2012, to be held on October in Helsinki, are now in full swing. Peter Axegård, Director 12

13 Innventia Group Annual Review 2011 Lignin makes its debut in pulp mill s product portfolio The world s first lignin factory based on LignoBoost technology is currently under construction. The Domtar pulp mill in North Carolina will begin production in 2013, making it possible to increase the capacity of the pulp mill while also obtaining a beneficial new by-product. Södra Cell in Mörrum also has plans for LignoBoost technology. Here at Innventia, we see this as an important piece of the puzzle in the development of modern kraft pulp mills for biorefineries and producers of valuable new products: binders, fuels, activated carbon and carbon fibre, to name just a few. Today s materials manufacturers are now demanding new, environmentally sustainable alternatives to traditional petroleum-based raw materials. Lignin may be one of the answers to this demand. Innventia has spent many years carrying out research into lignin. The focus has gradually shifted from pulp mill improvements to the product itself, and actually obtaining a product that provides added value. It all began as an idea within the KAM programme. At that time, the focus was on what might be important to the pulp mill of the future, including developing different separation methods. One element of this was the futuristic idea of doing something with an anticipated energy surplus. Thanks to research cooperation between Chalmers University of Technology and Innventia, a process was developed during the FRAM programme which separates lignin from the pulp mill s black liquor. In doing so, it was discovered that it was possible to produce lignin economically for use as a high-quality biofuel, while also enabling pulp mills with bottlenecks in narrow recovery boilers to increase their capacity. The process was christened LignoBoost. One key aim of the subsequent FRAM2 programme was to replace fossil oil with lignin, particularly in the pulp mill s lime kiln. Essentially, the lime kiln is the only remaining consumer of fossil oil in a modern pulp mill, where the process is otherwise self-sufficient in terms of energy. A three-day trail at the Södra Cell Mönsterås mill in April 2008 showed that fossil oil could be completely replaced with lignin fuel, providing excellent opportunities for operating the pulp mill of the future entirely without the use of fossil fuels. Global consumption in the pulp industry s lime kilns corresponds to four million cubic metres of oil each year. To facilitate the demonstration and commercialisation of LignoBoost, we created the subsidiary LignoBoost AB in This development company was sold two years later to Metso Power AB, which now markets the process. The demonstration facility in Bäckhammar remained under Innventia s ownership, and is now an important part of our ongoing research and development of new lignin applications. Thanks to the LignoBoost process, we can now obtain lignin with ash content of 0.1 percent. This is so pure that it can even be used for manufacturing carbon fibre. Carbon fibre is currently produced by Innventia in the laboratory for research purposes. This has resulted in two patent applications, and the real breakthrough came when we succeeded in manufacturing filaments from softwood lignin something that had been previously thought to be impossible. We are now carrying out a project together with the institute Swerea SICOMP to examine various applications for ligninbased carbon fibre. Otherwise, much of our current work focuses on opportunities for upscaling, as well as more process engineering-related issues linked to the relationship between lignin properties and carbon fibre properties KAM project The ecocyclic pulp mill FRAM programme Future resource adpated pulp mill FRAM2 programme 2006 Innventia starts development company LignoBoost AB 2008 LignoBoost is sold to technology company Metso Power Biorefinery research cluster LigniCarb project LignoFuel programme 2011 First LignoBoost industrial installation sold For more information contact: Birgit Backlund +46 (0) birgit.backlund@innventia.com Elisabeth Sjöholm +46 (0) elisabeth.sjoholm@innventia.com Per Tomani +46 (0) per.tomani@innventia.com Peter Axegård +46 (0) peter.axegard@innventia.com 13

14 Business area Material Processes Our efforts within the field of nanocellulose took a great leap forward with the opening of our pilot facility in February We have so far focused on the actual process being able to produce nanocellulose as energyefficiently as possible and we ve come a long way. We will now be taking a closer look at practical applications such as applying nanocellulose in papermaking, and our new pilot facility combined with the FEX paper machine will be very important in connection to this. The fact that our customers take a great interest in this is particularly clear in the new Cluster Research Programme, which will feature a sizeable nanocellulose cluster. Our customers are looking for new business opportunities and products, and nanocellulose is an exciting possibility. Thanks to our close relationships with the industry, we are now able to identify a number of ventures for working together to implement research findings. The EU project BoostEff, for example, contains dedicated research and development work aimed at three specific manufacturing units. The project will demonstrate the possibility for cost reduction and quality improvements by implementing a set of new technologies. In terms of papermaking, cost savings are particularly important, especially through lower consumption of energy and raw materials. It is also important to seek out collaboration with financed public bodies in order to build up expertise within areas where industry is not yet ready to provide financing. In terms of materials, we are currently working closely with skills centres such as BiMaC Innovation and the Wallenberg Wood Science Center to develop new knowledge. Torgny Persson, Director 14

15 Innventia Group Annual Review 2011 Nanocellulose plant speeds up the development of new super-strong materials Nanocellulose is a product that is extracted from pulp fibres. It is exceptionally strong, putting it in the same class as Kevlar. However, in contrast to Kevlar and other materials based on fossil raw materials, nanocellulose is completely renewable. There has been considerable interest from industry in using nanocellulose as a strengthening component in paper, board and composites. Now there is a pilot facility at Innventia which can produce sufficient volumes of nanocellulose for research and development, opening up a whole world of brand new, super-strong renewable materials. Innventia s pilot plant, which was built in 2010 and commissioned in 2011, was the starting shot for many industrial ventures within the field of nanocellulose. Examples include Stora Enso, one of Innventia s customers, which has invested EUR 10 million in a pre-commercial nanocellulose production facility at its mill in Imatra. A number of similar ventures are in the pipeline, and developments are moving at an impressive pace. However, nanocellulose is not a new material it was first developed back in the early 1980s by an American research team at ITT, which used a high pressure homogeniser to break up pulp fibres. The aim was to use the material as a food additive. Innventia (then known as STFI) also started to research the material in the 1980s, but with the intention of using it in paper and board. These research teams made many advances at the time, but since the manufacturing process was too energyintensive and they experienced problems with clogging in the homogenisator, research activities were put on hold. Commercialisation was virtually inconceivable. Twenty years later, there came a breakthrough when Tom Lindström and Mikael Ankerfors at Innventia and researchers at KTH, Royal Institute of Technology revolutionised the process by introducing a pre-treatment stage before the homogenisation stage. This meant that energy consumption could be reduced by a full 98 percent, corresponding to a saving of 29,000 kwh per tonne. By comparison, it takes around 18,000 kwh per year to heat a normal sized house. For a full-size plant supplying a paper mill with nanocellulose, this represents an energy saving equivalent to 8,000 houses each year. Developments have continued since then, and Innventia now has a range of processes for producing nanocellulose of different grades, all with low levels of energy consumption. With Innventia s new process, it was now possible to produce nanocellulose on a large scale and in a cost-effective manner for the first time. However, the amount of raw material produced in the lab is not enough to develop applications such as paper and composite materials. Innventia therefore decided in 2010 to scale up the process and build a pilot facility. With production of 100 kg per day, Innventia can carry out tests on the FEX pilot paper machine, while also using the pilot facility to develop and optimise the process for various applications together with industrial partners. But the opportunities don t end with meeting industry s demand for raw materials and processes to make the world s strongest paper. Nanocellulose has many other possible uses, such as coatings and barriers, bionanocomposites, food applications, cosmetics, pharmaceuticals, hygiene and absorbent products, emulsions and dispersions, oil recovery applications, concrete additives, electronic printing substrates, battery applications... The list goes on and on. Today, nanocellulose is a major field of research at Innventia, and is included in cluster research and EU projects such as SustainComp, which will be holding its public final conference in June Prof. Turbak at ITT introduces microfibrillated cellulose (MFC). Target application: food. Mid 1980 s Innventia starts research on MFC. Target application: strength agent in paper. Around 1990 Around 2004 Around 2006 The research is abandoned due to the high energy consumption Innventia/KTH restarts research on MFC, now denoted nanocellulose. Target application: nanocomposites. Innventia s first method for producing with low energy consumption is developed Innventia inaugurates its pilot plant for large scale nanocellulose production Stora Enso announces investment in a pre-commercial production plant for nanocellulose Further process development in the Nanocellulose Process Cluster Important projects The Paper Chemistry Clusters SustainPack (EU 6th FP) NanoCell (WoodWisdom) DesignCell (WoodWisdom-NET) SustainComp (EU 7th FP) Nanocellulose Process Cluster For more information contact: Mikael Ankerfors +46 (0) mikael.ankerfors@innventia.com 15

16 Business area Packaging Solutions Generally speaking, we are seeing the packaging industry growing in importance. We are therefore working hard within Packaging Solutions to sharpen our offering and our message. This has involved a degree of reorganisation. Part of this relates to barrier materials, in which we are currently building up expertise and lab equipment. In autumn 2011 we started using our new Mocon equipment, which features a high degree of sensitivity for measuring oxygen and water vapour. One of our biggest missions is to develop new materials and to know how they will be used. People speak about sustainability where ever you turn, and much of this boils down to materials. But it s not enough for the materials to be renewable. We also have to consider the way in which they re sustainable, who wants them, and what will happen to them later on. Our situation is unique. As well as all the technical demands in terms of e-modules, ageing studies, performance and interactive functions, we also have insight into and knowledge about what the materials communicate. This enables us to create tailor-made materials that are sustainable and send out the desired signals. One big event during 2011 was Södra giving the green light for the production of DuraPulp, the material developed in collaboration with Innventia and partners which won the Innovative Product of the Year award at the Pulp & Paper International Awards in Brussels in November Seeing the results of research findings actually being converted into reality is extremely rewarding. A lamp is currently being manufactured, and we hope to see packaging made from this material in future. Catharina Ottestam, Director 16

17 Innventia Group Annual Review 2011 Paper packaging with a life of its own Interactive paper materials materials that change their appearance and form when exposed to heat, moisture or electricity are now approaching a market launch. These materials could be used for applications such as food packaging with self-opening functionality, or packaging where the aim is to attract attention in some way or improve product safety. This has resulted in solutions for which patents have been applied for, and work to make the product commercialisable is now underway. For more information contact: Marie-Claude Béland +46 (0) marieclaude.beland@innventia.com Hjalmar Granberg +46 (0) hjalmar.granberg@innventia.com Around six years ago, Hjalmar Granberg first had the idea of creating a kind of macromuscle out of paper. This was not necessarily intended to become a type of packaging, and this is still the case. Mechano-active materials interactive materials that change their form when they react to external stimuli such as moisture, heat or electricity have many possible applications. One of the technical challenges was that it should be possible to produce the material in a paper machine. Over the years, developments have led to a number of material combinations for which patents have been applied for, as well as a world record for electrically controlled paper bending, but much of the success is due to collaboration within and beyond Innventia between more than twenty researchers, students completing their degree projects, designers and market developers. Designer Farvash Razavi who has a background in experience design at the University College of Arts, Crafts and Design in Stockholm was engaged to produce a demonstrator that could showcase the opportunities offered by mechano-active materials. This was when the idea of interactive paper packaging came about. By exposing the packaging to heat, it could be made self-opening. This would be particularly useful for people with disabilities, as well as enhancing the packaging s power of attraction. To demonstrate the principle, a prototype was made for selfopening food packaging, based on commercially available materials which were combined during conversion. The packaging is closed when placed in the oven, but opens up into a flower at a particular temperature. Thanks to this prototype, Innventia can now work with external partners to investigate the market for interactive paper. Taking a new material to the market involves more than just developing materials. It is also important to evaluate the material from different perspectives, and this is an area where we at Innventia can benefit from our expertise throughout the entire length of the value chain, from molecule to consumer insight. During 2011, Innventia carried out two related projects one financed by RISE, with the aim of evaluating the demonstrator s product performance from a sustainability perspective, and one financed by Innovationsbron, which was the initial step towards verifying whether the product would be commercialisable. Tests were carried out using the sustainability platform (see page 23) to assess the packaging concept. The overall information from this evaluation is being combined with market and production analyses to create an overall approach, which will be used when marketing the material concept. Trade & Industry Groups In the packaging business, the trade and industry groups play a very important role in carrying out research related to significant aspects of their respective areas, among other things. A trade and industry group consists of a number of companies working jointly in research projects and commissions. In this way, all the companies in the group benefit from the results. ESG - European Sack Research Group IGP - International Group for Paper Distribution Quality NLG Miljöpack Normpack - Swedish Code for Food Packaging Materials Packaging & Product Protection Group SKAF- the Swedish Cardboard Research Group SUW - The International Development Group for Corrugated Board The Carrier Bag group 17

18 PFI Paper and Fibre Research Institute 2011 was a year of many great achievements at PFI. PFI s long-term research comprised 16 research projects within the areas of cost-effective production of paper and mechanical pulp, new biorefinery and bioenergy processes, and novel bio-based materials. In 2011, PFI continued to concentrate on developing cost-effective production processes and contributing to implementing new findings in close cooperation with its customers. Important areas in terms of reduced production costs included wood pretreatment in pulp production, process integration, optimised furnish composition and reducing bleaching costs through optimised process and process water conditions. In 2011 PFI experienced increased interest in nanocelluloserelated research, and we expect interest in this topic to continue in In February 2011, PFI performed a full-scale microfibrillated cellulose (MFC) production trial at a scale of 1500 kg/d, and at an energy consumption of 1600 kwh/t. The trial was performed in cooperation with Södra Cell and Norske Skog, and exemplifies the high potential for large-scale production of microfibrillated cellulose for various purposes. PFI has performed research for many years on a range of new applications for microfibrillated cellulose, including paper production, barrier materials in packaging, emulsion stabilisation, rheology modification and filter applications. During the year, PFI s research also focused on a range of different applications for MFC, and how MFC can be tailor-made for various end applications. The forest-based industries are paying more attention to new biorefinery processes for combined production of bioenergy, biomaterials and bio-based chemicals. In particular, there is a sharp focus on utilising synergies with other nearby industry infrastructure, such as the utilisation of excess heat. PFI s research considers both the thermochemical and the biochemical routes for production of energy products or chemicals. In March 2011, a full-scale trial was performed at the Norwegian incineration plant Hønefoss Fjernvarme, where fossil-based fuel was successfully replaced with 80% pyrolysis bio-oil. PFI s scientific publications have met with considerable interest, and have been recognised for their high quality. In 2011, two articles with authors from PFI achieved top rankings in the journals Nordic Pulp and Paper Research Journal and Nanoscale Research Letters. In addition, it was announced in July 2011 that another PFI article was among the top five downloaded articles in the journal Cellulose in 2008 and Philip A. Reme, Director 18

19 Innventia Group Annual Review 2011 Examples of long term research projects at PFI E2POX II: New low-energy process for production of mechanical pulp COMPETENCE: New cost-effective magazine paper grade with tailor-made electrical properties for optimal printing performance EnPap: Energy-efficient paper production of wood containing paper for next generation printing presses Brightpaper: Improved brightness of wood-containing printing paper EffNews: Effective Newsprint production with an ultra-low energy consumption SustainBarrier: Novel fibre-based water barrier packaging Bio-Oil: The Bio-Oil Refinery Project PROFIT: Profitable bioenergy and paper production through innovative raw material handling and process integration LignoRef: Lignocellulosics as a basis for second generation biofuels and the future biorefinery Nanofibril filters for environmental nanoparticles: Development of innovative protection against Nano-pollution In 2011, The Research Council of Norway granted two research projects coordinated by PFI: COMPETENCE: New costeffective magazine paper grade with tailor-made electrical properties for optimal printing performance EffNews: Effective Newsprint production with an ultra-low energy consumption 19

20 Management Board of Directors 2011 Board of Directors 2011 Mats Nordlander Executive Vice President Packaging Stora Enso Chairman of the Innventia Board Karin Emilsson Director of Technology Södra Skogsägarna ekonomisk förening Mats Engwall Professor Royal Institute of Technology Göran Harrysson Managing Director Tetra Pak AB Mats Nordlander namn Karin Emilsson Mats Engwall Peter Holmstedt President RISE Research Institutes of Sweden Holding AB Magnus Wikström Technical Director Billerud AB Sven Wird Senior Vice President Group Technology Holmen AB Ewa Lie Personnel representative SAK Göran Harrysson Peter Holmstedt Magnus Wikström Pierre Ljungquist Personnel representative Unionen Sven Wird Ewa Lie Pierre Ljungquist 20

21 Innventia Group Annual Review 2011 Executive Board Birgitta Sundblad Anders Engström Anders Pettersson Philip A. Reme Executive Board Birgitta Sundblad President Anders Engström Executive Vice President Anders Pettersson Senior Vice President Research Helena Vollmer Marketing Director Catharina Ottestam Torgny Persson Peter Axegård Karl Gustaf Ekfeldt CFO Finance and Human Resources Peter Axegård Director Business Area Biorefining Catharina Ottestam Director Business Area Packaging Solutions Torgny Persson Director Business Area Material Processes Philip A. Reme Director PFI Ylwa Hjemdahl Executive Assistant Helena Vollmer Karl Gustaf Ekfeldt Ylwa Hjemdahl 21

22 Corporate social responsability An employee survey initiated by Innventia s new President Birgitta Sundblad highlighted the need for internal operational changes. Much of the year s CSR work has therefore been focused on internal activities. For example, three major projects were launched which will run during the spring: Review of the organisation with the aim of utilising our competence in a more optimised way both for Innventia and for the individuals IPR review of our agreements and patent procedures Skills development with the aim of implementing performance management and creating programmes for employee skills development Through this work, we will ensure a sustainable supply of knowledge and expertise required in our role as innovation partner. As a research company, our greatest contribution to a sustainable society comes from the development and adaption of new knowledge and the implementation of innovation projects. Innventia has an ongoing annual activity with the purpose to report our sustainability activities according to GRI (Global Reporting Initiative) which is an established reporting method. We measure our performance in twelve sustainability indicators. These indicators include, for example, environmental indicators, personnel indicators and customer satisfaction. Personnel indicators GRI No LA1 No. of employees No. of employees per manager 7,6 8,8 LA14 Women 48,9 % 47,3 % 22