From Fiber to Fertilizer Lenzig Fibres. Stuart Gorringe and Bob Jeavons

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1 From Fiber to Fertilizer Lenzig Fibres Stuart Gorringe and Bob Jeavons

2 Lenzing Fibers Grimsby Ltd. Reductions in waste, substandard and environmental successes, including fibre to fertiliser

3 Lenzing Fibers Grimsby

4 Site history Former Courtaulds site on the Humber Estuary. Viscose plant started up in 1957 but closed in Acrylic plants Courtelle, now owned by Blue Star Fibres carbon fibre precursor. Tencel SL3 plant commissioned in 1998 to produce Lyocell acquired by Lenzing Fibers in May 2004.

5 Main end uses for Lenzing Fibers

6 TENCEL Raw Material Lyocell Fibre Wood pulp Branded as Tencel

7 Lyocell Technology Pulp Dissolving NMMO N O NMMO- Recovery Waste Water O Spinning Spinning Bath Water "NMMO" N-Methyl-morpholine-N-oxide Washing Finishing Drying

8 TENCEL PROCESS LAYOUT NMMO Managed Forests Grimsby SL3

9 Reductions in waste, substandard and environmental successes Focus on reducing substandard after February 2005 Quality Conference. Focus on waste and substandard collection and distribution after June 2007 Quality Conference. Wet waste and dry waste (by product) types and collection systems. Brief summary of cost savings. Environmental benefits.

10 After 2005 Fibre Quality Conference Increased focus at Grimsby on: reducing substandard. improving quality performance and reducing customer complaints. main areas for substandard and any opportunities for improvement in performance. Reduction of substandard and dry waste then saved several hundred thousand Euro s per year..

11 Overall summary substandard and dry waste reduction Substandard reduced from 2.9 % down to 1.3 % Packed waste reduced from 2.9 % down to 1.4 % Savings on substandard of around 560,000 Euro s pa.* Savings on dry waste of around 840,000 Euro s pa.* Total saving of around 1.4 million Euro s pa* * Savings are based on 2004 to 2011 assuming full line rate capacity at 35,000 tonnes.

12 Main wet and dry waste types Shredded Cellulosic Waste - previously land filled. Wet Spinning Waste (Pre Wash) previously land filled. Wet Chute Waste (Containing fibre & stuck filaments) previously land filled. Wet Waste (by product) Tow sold at extremely low prices in the UK. Discontinuous Crimped and Uncrimped Dry Tow sold mainly in the UK

13 Main waste project focus Introduce new customers to increase competition and prices for wet and dry by products also substandard fibre. Reassess all collection methods used. Add value wherever possible. Investigated any possibilities to find alternative outlets for the tonnes of cellulosic waste being land filled.

14 Main waste project - timeline Wet spinning waste sold to Germany saving 150 tpa from land fill Ongoing deliveries of chute waste and shredded waste to UK Savings of over 200,000 Euro s per year Environmental benefits of much less land fill waste and fewer cartons June 2007 December 2008 Focus on wet waste and possibilities to cut in Lenzing? Discussions and trials with German customer Trial of chute waste for UK Re-usable green tubs used for dry waste for UK 5 Tonne trial of shredded cellulose waste for UK customer

15 From fibre to fertiliser- the composting of cellulose waste Lenzing Fibers Grimsby set a target of zero for cellulose waste to land fill April Humber Bank Environmental Managers Meeting - suggestions for Lenzing to consider using Why Waste to advertise cellulose waste types available July Lenzing shredded cellulose waste added to Why Waste website July Clarkeson Recycling, a local composter only 5 miles away makes contact and a series of visits set up on both sites to explore the possibilities for composting - July 2008.

16 From fibre to fertiliser- the composting of cellulose waste Lenzing Fibers Grimsby contact Environment Agency for their assistance and support. Our PPC compliance officer was very helpful in this and in following up with the Organics Recycling Association July Lenzing shredded cellulose tested at D & F associates according to PAS 100 for heavy metals, toxic substances, etc and report issued as suitable for meeting the standard Sept/Oct Lenzing provide evidence of compostability, DIN CERTCO accreditation, pulp specifications, various material safety data sheets and report on biodegradation of the NMMO solvent to EA and Clarkeson Recycling November 2008.

17 From fibre to fertiliser- the composting of cellulose waste EA ask for LFG cellulose waste to be included in the waste permitting regime review for composting November EA further discuss LFG cellulose waste with their soil science colleagues and ask for this to be reviewed at the Modernising Waste Regulation Programme - December EA local Environmental Management team confirm that trials can proceed and at the same time Clarkeson Recycling s permit was undergoing variations April 2009.

18 From fibre to fertiliser- the composting of cellulose waste Trials commence using shredded cellulose waste April Close liaison with Clarkeson Recycling confirms satisfactory composting of shredded cellulose, chute and fibre waste, mostly after only a few weeks - June/July Fibre rejects from the pulp processing industry were added as an acceptable biowaste type for the production of quality compost in England and Wales according to the EA/Wrap Quality Protocol July This is the Quality Protocol for the production of quality compost from source segregated biodegradable waste. European waste code

19 Time line for composting Clarkeson Recycling Permit altered and trials commence 285 Tonnes composted. Only 24.5 tonnes land filled and we expected zero cellulosic process waste for 2010 onwards April 2008 December 2009 Set target of zero cellulosic waste to land fill & focus on 2 waste types Advertise waste materials on Why Waste site Clarkeson contact us about composting waste materials Discussions with Environment Agency Independent Testing carried out and waste established as safe and suitable for composting PAS 100 DIN CERTCO, NMMO & Pulp info to EA EA organise cellulose waste to be added to approved list for composting Code Trials with chute waste. Optimise collection, handling & transport

20 Shredded cellulose and chute waste Environmental successes 285 tonnes composted by Clarkeson Recycling in 2009 with 388 tonnes in Also approx 240 tonnes used by UK customer for nonwovens and industrial flooring in 2008 & An excellent environmental story for Lenzing Fibers Grimsby with the EA, NELDC, Humber Environmental Network and within Lenzing. It also saved up to an additional 18,000 per annum.

21 Lattice Box Introduced for German Customer Blue Tubs already in use for UK customer

22 Lattice box - safe for use on our lines

23 Large lattice boxes stored outside

24 Wet spinning waste (collected pre wash) Previously land filled at a cost of 8 p/kg. Used by new customer buying at up to 26 Euro s per full lattice box from Cost savings were around 11,000 for an estimated 94 tonnes in 2008 and were around 5,500 for an estimated 47 tonnes in Very strong environmental story for Grimsby SL3 within Lenzing Group

25 Collecting wet waste at pre - wash

26 after waste wash it was good enough to sell

27 placed in the skip cost us an extra 120 per tonne

28 Chute waste (collected from spinning chutes) Previously land filled at a cost of 8 p/kg. Used initially in blue tubs for UK customer. Can now be used for composting when collected in converted IBC s or small skips. Cost savings are now be around 5,000 per year for an estimated 100 tonnes. Very strong environmental story for LFG within Lenzing Group

29 Spinning waste from the chutes

30 was only suitable for land fill after washing but

31 can now be composted if tipped into the yellow Euroquip skips

32 However, if any tow goes into a Biffa skip we can only land fill it

33 Only shredded cellulose waste and short cut waste is now tipped into Biffa skips for composting

34 Laboratory waste now sold to German customer This was previously land filled at 8 p/kg. Now being placed in lattice boxes outside the laboratory. Saving of 360 on land fill cost for 4.5 tonnes per year and increased revenue of 2,140 with nett saving of 2,500 per year. Another good environmental story

35 Cartons unsuitable stability/environment

36 Small lattice box OK for German customer

37 Safely stacked 3 high in the warehouse

38 Green tubs now replace cartons for dry waste for UK customer

39 Dry waste from end April 2008 Collections in green tubs for UK customer and in small lattice boxes for German customer. No further planned collections of dry waste in cartons unless we run out of green tubs or small lattice boxes. Savings on preparation time and strapping of cartons. Savings for the environment - several thousand fewer cartons required per year.

40 Continuous dry uncrimped tow cutting options Nett return was around 30 p/kg in cartons sold to UK customer. When cut to 38 mm, nett return > 60 p/kg in bales. When cut to 51 mm, net return potential > 85 p/kg in bales. Nett cost savings per year, 38 mm = 24,000 (Customer A in Germany). Nett cost savings per year, 51 mm = 44,000 (Customer B in Germany)

41 Overall summary of savings From reduction in substandard = 1.4 million Euro s per year. From improved waste and substandard prices, with significantly reduced land fill costs = 180,000 Euro s per year. Total = Approx 1.58 million Euro s per year.

42 Major environmental successes Cellulosic Land Fill - Tonnes Tonnes of Wet Waste To Land Fill Target 2012

43 EA Case Study completed & distributed The EA circulated this study to their environmental champions, industry regulation team and national communications teams. EA advised us to enter for environmental awards in 2010 as a result of our successes. Clarkeson Recycling, a small family composting company won the Association For Organics Recycling award in 2010 based on the composting of Grimsby cellulose waste.

44 Environmental awards for Lenzing Fibers Grimsby 2 nd Prize in the Valpak Awards Best Resource Management Project Finalist in the Green Business Awards 2010 Waste reduction and recycling category. Runners up in the inaugural Environment Agency Environmental Pioneers Awards 2010 waste reduction & resource efficiency. Highly commended in the Lincolnshire Environmental Awards 2011 business award. National Recycling Stars Gold Award 2011 high levels of recycling.

45 EA visit with Derby and Lincs Council The Environment Agency, Derbyshire County Council and Lincolnshire County Council visited Grimsby SL3 on 28 th September 2010 as part of a Climate East Midlands Partnership planning to adapt project on climate change. The main focus for Grimsby was on resource efficiency, covering our improvements in waste management and reductions in water, steam and power usage.

46 Why Waste, HEN, Hull University Why Waste - Lenzing Fibers Case Study - Manufacturing Advisory Service newsletter for Autumn 2009 to promote Why Waste s services to Industry. The case study was added to their website. Why Waste also publicised the AFOR Award for Clarkeson Recycling in their Spring 2010 newsletter. Humber Chemical Company have included a section on the Humber Environmental Network and have prepared a case study on the composting story as an example of good practice. Hull University, Geography Department want to promote the composting story on their web site as an example of industrial symbiosis in order to identify similar partnerships for their further research.

47 Sustainabiility Lenzing sources wood and wood pulp from certified forests and pulp suppliers FSC Accredited. The Lyocell (Tencel) process has won the European Award for the Environment and WWF Panda Award. Sustainability is an important focus for the Lenzing Group and we in the UK operation in Grimsby are doing our utmost to minimise our environmental impact through a strong focus on waste minimisation and resource management.

48 Many thanks. Any questions?

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