ENVIRONMENTAL performance in 2013

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1 ENVIRONMENTAL performance in 213 UPM Kaukas

2 Through the renewing of the bio and forest industries, UPM is building a sustainable future across six business areas: UPM Biorefining, UPM Energy, UPM Raflatac, UPM Paper Asia, UPM Paper Europe and rth America and UPM Plywood. Our products are made of renewable raw materials and are recyclable. We serve our customers worldwide. The group employs around 21, people and its annual sales are approximately 1 billion euros. UPM shares are listed on NASDAQ OMX Helsinki. UPM The Biofore Company UPM Kaukas Mills UPM s Kaukas mills are located on the shores of Lake Saimaa in the city of Lappeenranta in Southeast Finland. The mill area is home to a pulp mill, a paper mill, a sawmill, a biofuel power plant (Kaukaan Voima Oy) and UPM s rthern Europe research and development centre. The pulp mill produces bleached softwood and birch pulp, while the paper mill manufactures coated magazine paper on two production lines. The Kaukas sawmill produces sawn redwood and whitewood timber for the construction and joinery industries. Kaukaan Voima Oy s biofuel power plant generates heat and electricity for the Kaukas mills and the power company Lappeenrannan Energia Oy. 8% of the energy produced by Kaukaan Voima is generated using renewable biofuels. UPM started construction of a new biorefinery in Kaukas in summer 212. The biorefinery will produce renewable biodiesel out of pine oil for use in vehicles, and is set to begin production in summer 214. The integrated mill site facilitates efficient use of wood-based raw materials, energy production and logistics. The Kaukas mills operate under a shared environmental permit, including permits for wastewater treatment, waste management and landfill operations. Operations of the Kaukas pulp and paper mill are covered by the EMAS environmental management system. UPM Corporate ENVIRONMENTAL statement 213 UPM pulp and paper mills UPM Kaukas Environmental Performance 213 is a supplement to the Corporate Environmental Statement of UPM s pulp and paper mills (available at and provides mill-specific environmental performance data and trends for the year 213. The annually updated mill supplements and the UPM Corporate Environmental Statement together form the joint EMAS Statement of UPM Corporation. The next Corporate Environmental Statement and also this supplement will be published in 215. Production capacity 58, tonnes coated magazine paper 74, tonnes softwood and birch pulp 53, m 3 of sawn redwood and whitewood Personnel Paper mill 317, pulp mill 167, mill services 175, common operations 13, total 672 Products MWC magazine paper: UPM Star H UPM Star silk H UPM Star G UPM Star silk G LWC magazine paper: UPM Ultra H UPM Ultra G UPM Ultra silk G UPM Cote G Certificates Quality Management System ISO 91 Environmental Management System ISO 141 EMAS Eco Management and Audit Scheme PEFC Programme for the Endorsement of Forest Certification Schemes and FCS Forest Stewardship Council Chain-of-Custody Standards The certificates can be found at > Responsibility > Principles and Performance > Certificate Finder. Ecolabel European Union Ecolabel Pulp UPM Betula UPM Conifer Timber UPM Timber UPM Plus For FSC products, visit FI/11/1 PEFC/ Promoting Sustainable Forest Management For PEFC products, visit 2

3 Environmental year 213 In 213, the environmental impact of the UPM Kaukas integrated mill site remained relatively unchanged, as it has been since the turn of the millennium. Emissions to water and to air decreased slightly from the year before. Production of paper decreased from the previous year, while the pulp mill achieved its second record year in a row. Application for a new environmental permit for the integrated mill site was submitted near the end of the year. On a general level, emissions remained below the limits of the environmental permit. In autumn, however, individual emissions to air caused long-term odour in the nearby area of Lauritsala, in violation of the environmental permit. These problems were caused by three separate equipment breakdowns, which were all repaired before the end of the year. The integrated mill site s environmental objectives for the year included reduction of its water consumption, an increase of the reuse percentage of process waste and halving of the number of individual emissions that exceed the mill s internal limits. The objectives were challenging, and not all of them could be met. The number of internal non-conformances decreased from the previous year, resulting in smoother operation of the treatment plant. While their number was not halved, they were decreased by one-fifth. Also contrary to the objective, water consumption increased instead of decreasing. New waste reuse applications were also introduced, but due to the increased production of the pulp mill, the amount of process waste also increased and the objective of improving the reuse percentage could not be achieved. Environmental feedback was received from nearby areas on twelve occasions. Six of the cases concerned unpleasant odours, and three of these were received during the same day. Five calls were made about runaway timber drifting in the lake, and one concerning bark waste that had fallen on the road. maintenance shutdown took place. Instead, the mill ran throughout the year. The environmental objectives of the pulp mill included smooth operation of the treatment plant and improved control of emissions to air. The treatment plant worked smoothly, no non-conformances occurred and emissions to water decreased. The pulp mill s specific emissions also decreased. Emissions to air were, on the whole, controlled efficiently, although treatment of malodorous gases still caused problems. With the exception of malodorous sulphur compounds, the pulp mill s total emissions to air and to water decreased from the previous year in terms of all emission parameters. The primary burner of the malodorous gas boiler is very sensitive to changes in fuel flow, and shut down unexpectedly more than once during the year. The auxiliary burner did not always start up quickly enough, resulting in emission of malodorous gases to the environment. An investment decision concerning a new malodorous gas burner for the recovery boiler was made in 213, and the new burner will be installed and placed in service during spring 214. Paper mill The paper mill operated following the market situation in 213. A number of short shutdowns took place. For years, the paper mill has had internal targets for emissions of solids to the wastewater treatment plant, various types of process waste and the consumption of process water. In 213, the average daily volume of emissions of solids to the wastewater treatment plant was 16.8 tonnes per day, down 4% from the previous year (17.5 tonnes per day, 212). The target of 12.6 tonnes was not achieved. Solid emissions are caused by problems with the running ability of the paper machines and discontinuous production runs. The target value set for the consumption of process water is 15 m3 per each tonne of paper produced. This objective was not met the use of water increased by approximately 1% from the previous year. The debarking plant s water consumption, however, decreased by approximately 8%. Target levels for coating colour sludge and fibre sludge generated in the process were 6. and 2.2 tonnes per day, respectively. The amount of coating colour sludge increased by 13% from the previous year, meaning the target was not reached. coating colour sludge, however, was deposited to the landfill, as all of it could now be reused. The target level set for fibre sludge was achieved by a generous margin as the amount decreased by 82% from the previous year. Thanks to changes made in the process, the amount of fibre sludge process waste has decreased considerably. New reuse applications have also been introduced. On 8 October 213, IKEA, the world s largest furniture retailer, awarded the UPM Kaukas paper mill the Tulip Award in the Sustainability category the first time in history that an award was given in this category. The motivation for the award was: Best performer in energy efficiency and use of renewable energy. Outstanding understanding of sustainability challenges. Best in class for sustainability reporting. Pulp mill The pulp mill made its second annual production record in a row. The year was different from previous years as no annual Teuvo Solismaa, General Manager, Kaukas Minna Maunus-Tiihonen, Environmental Manager 3

4 Air Water The Kaukas mill s emissions to air decreased in terms of sulphur dioxide (SO 2 ), nitrogen oxides (NO X ) and particulate emissions (TSP). Emissions of malodorous sulphur compounds (TRS) increased. significant change occurred in the mill s carbon dioxide emissions. Malodorous gases were recovered and burnt 99% (weak malodorous gases) and 99.8% (strong malodorous gases) of the time. UPM Kaukas total annual emissions to air from pulp and energy production are presented in the following graphs. UPM s percentage of Kaukaan Voima s total emissions is also included in these figures. The pulp mill s emissions to air complied with the current BAT documentation in all respects. The limits set in the new BAT documentation, currently in preparation, will also be achieved if current trends continue. The greatest environmental challenge for Kaukas in 213 were the emissions of malodorous sulphur compounds. On one hand, the operation of the malodorous gas boiler was erratic, with numerous unexpected burner shutdowns occurring over the year, while on the other hand, equipment breakdowns in different parts of the system caused an increased number of isolated emissions. Burner shutdowns in the malodorous gas boiler caused short but strong emissions, while the odours caused by equipment breakdowns were milder but tended to last longer. The long-term odours in autumn were considered a breach of the mill s environmental permit. Burning of malodorous gases will be improved in 214 via investment in a burner for strong malodorous gases in the recovery boiler. The Kaukas mills used 86 million cubic metres of water in % of this was process water treated at the biological effluent treatment plant before discharge. Water consumption increased from the previous year due to increased pulp production. Sufficient cooling of the wastewater treatment plant was ensured by using water cooling during the summer. The cooling period was longer compared to previous years and lasted from May to October. The effluent load to the lake decreased in terms of biological (BOD) and chemical (COD) oxygen demand, nitrogen (N) and phosphorus (P). The AOX (halogenated organic compounds) load remained unchanged from the previous year. All emissions to water remained below the environmental permit limits. The effluent loads of both pulp and paper production remained within the current BAT limits. In FOSSIL CARBON DIOXIDE, CO 2 1, t/a SULPHUR DIOXIDE, SO 2 t/a BIOLOGICAL OXYGEN DEMAND, BOD 7 t/d 6, 4,8 3,6 2,4 1, NITROGEN OXIDES, NO X t/a PARTICULATES t/a NITROGEN, N kg/d Permit Monthly limit 4

5 Waste connection with the new environmental permit application, the environmental loads were also compared against the new BAT documentation currently under preparation, and emissions to water will remain within these limits also in the future. The biological effluent treatment plant performed well. Summertime heat management improved from previous years, resulting in lower nutrient loads. The incoming load to the treatment plant was also more uniform than it was previously, enabling the treatment process to run smoothly. The treatment plant s operation is reported in terms of its treatment efficiency on various substances. This is called reduction. The plant s treatment efficiency and chemical (COD) and biological oxygen demand (BOD) have remained stable over the past few years. Its BOD reduction value was 99%, while CHEMICAL OXYGEN DEMAND, COD t/d the COD reduction value was 82%. Solids reduction value now at 98% improved from last year. As emissions of solids also cause nutrient emissions into waterways, improved reduction of solids largely explains the decreased nutrient load. Management of solids at the treatment plant was improved by investing in a return line from the safety basin to the foremost clarifiers. Solids can now be removed from the wastewater that is conducted to the safety basin before displacing it to the biological treatment plant. Water consumption objectives remained elusive: Water consumption increased in both pulp and paper production. Achieving considerable changes in consumption levels will require new investments. 6, 4,8 3,6 2,4 1,2 TOTAL SUSPENDED SOLIDS, TSS t/d The Kaukas mill produced approximately 45,5 tonnes of dry solid process waste in 213. Of this, 7,85 tonnes were deposited at the Tuosa landfill for final disposal. The remainder was reused or stored to be utilised later. The amount of landfill waste increased by 43% from the previous year. The greatest increase occurred in the amount of green liquor dregs. Green liquor dregs are a by-product of the chemical circulation of the pulp mill, and when the production of pulp increases, the amount of green liquor dregs increases as well. Few reuse applications exist for green liquor dregs, but some of it could be mixed with ash and used in earth construction (field base) as we have done before. Of all process waste generated in 213, 28,8 tonnes were reused. Reuse applications included: energy production (sludge from wastewater treatment plant and fibre sludge), replacement of virgin materials with process waste in landfill closure work (coating colour sludge), earth construction (bottom ash, fly ash and green liquor dregs), compost raw material and aeration material (debarking reject sand) and materials used for fibre products (fibre sludge). Collaboration with third parties was continued to find new reuse applications WASTE TO tuosa LANDFILL BD t/a PHOSPHORUS, P kg/d ADSORBABLE ORGANIC HALOGEN COMPOUNDS, AOX t/d , , , ,24, Ash Others Green liquor dregs Coating color sludge The weights included in the figure are dry weights. 5

6 Environmental parameters 213 The figures related to production as well as raw material and energy consumption are published as aggregated figures on group level in the UPM Corporate Environmental Statement. Production capacity Raw materials Energy Air emissions, including UPM s share of Kaukaan Voima emissions Magazine paper Pulp - Softwood pulp - Birch pulp Wood, cooking chemicals, bleaching chemicals, filler and coating pigments, pigments in paper manufacturing Biofuels Fossil fuels Purchased electricity Fossil carbon dioxide, CO 2 Nitrogen oxides, NO x Sulphur dioxide, SO 2 Dust particles Total reduced sulphur, TRS 61, t 75, t 42, t 33, t See UPM Corporate Environmental Statement for more information 86% 14% See UPM Corporate Environmental Statement for more information 144,56 t 1,162 t 468 t 1 t 25 t Water consumption Process and cooling water 85.3 million cubic metres Emissions to water Waste* Effluent BOD 7 COD Solids Phosphorus, P Nitrogen, N Adsorbable organic halogen compounds, AOX Waste to landfill - Green liquor dregs - Mixed waste 4.7 million cubic metres 29 t 1,439 t 52 t 3.8 t 138 t 96 t 7,85 t 6,978 t 872 t Hazardous waste Tehdasalue Reused waste - Cleaned wood waste - Green liquor dregs and lime - Coating colour sludge - Fibre sludge - Sludge from effluent treatment plant - Lime kiln ash - Fly ash and bottom ash - Recyclable carbon and paper - Metals - Other Intermediate storage - Fibre sludge - Lime kiln ash - Sludge from effluent treatment plant - Ash 28,795 t 2,153 t 5,252 t 3,719 t 17 t 8,437 t 741 t 7,229 t 383 t 687 t 177 t 8,41 t 161 t 582 t 5,47 t 2,251 t 88.3 t 2 ha The figures include the calculated share of Kaukas biofuel power plant emissions. * Dry weight 6

7 Achievement of objectives in 213 OBJECTIVE ACHIEVED COMMENTS Objectives of the integrated mill site Reduction of abnormal emissions - Category 2: -5% - Category 3: maximum of 2 cases Increasing the percentage of waste reuse Reduction of consumption of process water by 5% - Paper mill - Pulp mill Paper mill objectives - Amount of solids to treatment plant: maximum of 12.6 tonnes per day Pulp mill objectives - Smooth operation of the treatment plant - Improved control of emissions to air Yes Yes n-conformances decreased by 2% Number of category 3 non-conformances was 2. Both were related to emissions of malodorous gases to air. The amount of waste increased due to increased pulp production. New reuse applications were introduced in 213. Water consumption increased: by 9% at the paper mill and 3% at the pulp mill. Actual: 16.8 tonnes per day. The amount of fibre sludge stored temporarily at the landfill, however, decreased considerably. All emission figures decreased, and the number of internal nonconformances (category 2 non-conformances) decreased by 71%. n-conformances of malodorous gas emissions increased by 78%. Objectives for 214 OBJECTIVES AND INDICATORS SCHEDULE RESPONSIBILITIES BY DEPARTMENT Reduction of abnormal emissions - Category 2: < 273 cases - Categories 3 5: cases Reduction of the amount of landfill waste. Waste deposited to the landfill for final disposal: < 7,85 tonnes of dry matter. 214 Improved (more reliable) treatment of malodorous gases at the pulp mill; improved summertime heat management at the wastewater treatment plant. Reduction of fibre emissions at the paper mill. 214 Improved management of the amount of process waste generated. The largest waste component at the pulp mill is green liquor dregs, while at the paper mill the major waste type is coating colour sludge. Collaboration with third parties to increase reuse will continue. Reduction of process water consumption 214 Paper mill s objective: 15 m 3 /t Pulp mill s objective: 4 m 3 /t Survey of isolated emissions of malodorous gases to air 214 The pulp mill will produce a report of its isolated emissions and establish a measuring model for them. VERIFICATION DECISION: As the accredited verifier, Inspecta Sertifiointi Oy (FI-V-1) has audited the UPM Kaukas environmental management system, the Environmental Performance in 213 report and the environmental statement for 213 for UPM paper and pulp mills. Based on the inspection, it was noted on that the UPM Kaukas environmental management system, this Environmental Performance in 213 report and the information on UPM Kaukas in the environmental statement for 213 for UPM paper and pulp mills comply with the requirements set forth in EU EMAS Regulation (EC) no. 1221/29. 7

8 UPM-Kymmene Corporation Kaukas Kaukaantie 16 FI-532 Lappeenranta, Finland Tel For further information, please contact: Minna Maunus-Tiihonen Environmental Manager Tel Antti Ratia Communications Manager Tel /214