ENVIRONMENTAL PERFORMANCE 2011 UPM Caledonian

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ENVIRONMENTAL PERFORMANCE 211 UPM Caledonian

UPM CORPORATE ENVIRONMENTAL STATEMENT 211 UPM paper and pulp mills UPM Caledonian, Environmental Performance in 211 is a supplement to the Corporate Environmental Statement of UPM s pulp and paper mills (available at www.upm.com) and provides millspecific environmental performance data and trends for the year 211. 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 the spring of 213. UPM Caledonian UPM s Caledonian mill is situated in Irvine on the West Coast of Scotland approx. 5 kilometres southwest of Glasgow. In production since April 1989 the Caledonian mill is capable of producing 28, tonnes of lightweight coated paper (LWC) for printing magazines, catalogues, brochures. The mill has a Biomass Combined Heat and Power (CHP) plant, a single paper machine line, a debarking plant, a pressurised groundwood (PGW) mechanical pulp mill and a primary effluent treatment plant. Effluent is then treated further in the neighbouring Municipal Waste Water Treatment Plant operated by Scottish Water. Environmental issues are an integral part of everyday operations. Targets are set as part of our annual planning process with our key environmental aspects and impacts idenfied through our regulatory and business requirements to demonstrate continuous improvement. These are followed closely through the year. Our objective is to produce attractive and competitive paper with the lowest possible overall environmental impact. Through open communication we actively provide our customers, employees, environmental authorities, as well as our local community with information on environmental issues and knowledge of the mills operations. UPM Caledonian Production capacity up to 28, tonnes of paper Personnel 295 Products Coated Magazine Papers UPM Cote UPM Ultra UPM Ultra Silk Certificates Quality Management System ISO 91 Environmental Management System ISO 141 Occupational Health and Safety Management System OHSAS 181 PEFC Chain of Custody (Programme for the Endorsement of Forest Certifi cation schemes) FSC Chain of Custody (Forest Stewardship Council) Environmental labels EU EcoLabel PEFC/2-31-8 2 UPM CALEDONIAN, ENVIRONMENTAL PERFORMANCE 211

211 Environmental Review This Report gives information on the Mill s environmental performance and covers the most significant environmental impacts emissions to Air and Water; Waste and Material consumption. 211 was the first full year of operation of the CHP plant away from any issues related to commissioning activities. Every day operation of the plant has not been without its challenges and close control of boiler conditions is a prerequisite for controlling emissions to air. In normal operation during 211 we saw the impact that fuel quality and delivery profile of that fuel can have on emissions. During the year the mill reported three ELV failures to SEPA. Two of these failures were due to breaches in emissions to air from the CHP boiler and were both related to the homogeneity and quality of the fuel flow to the furnace. Various steps and measures have been put in place to prevent re-occurrence. A new variation to our PPC permit was granted by SEPA allowing combustion of up to 15, tonnes per year of WID exempt pallet wood. Again this should contribute to improved control of moisture in the fuel flow to the furnace. One further incident was reported to SEPA in 211 which detailed a breach of solids discharge during October. This issue arose due to a prolonged shutdown where normally daily solids loadings are reduced. However, during the October shut this was not the case which led to a breach against a monthly TSS target of kg/tonne of produced paper. Due consideration has been given of steps needed to ensure that further breaches of this nature can be prevented. Environmental Limit Conditions and Environmental Management Conditions into account. The Broadly Compliant assessment highlights that SEPA believe there are still several areas for improvement. In addition to the above we have had an increased number of COD and Solids discharge failures against our local WWTP agreement targets. These mainly occur during times when the mill is producing higher basis weight, higher brightness (UPM Ultra) grades. These failures were not significant but are still failures against the agreement targets. UPM Caledonian has informed Scottish Water of measures in place to prevent further failures of this nature. During 212 compliance against our WWTP agreement will be one of key targets. Waste reduction was again a key area of focus. During 211 investigations have continued into alternative reuse options for boiler ash with one potential route found. During 212 it is hoped that an increased volume of ash will be re-cycled via this route. One other key project during 211 was the re-use of CHP waste water at the PM although the equipment was installed commissioning will not be complete until quarter 1 212. This has the potential to reduce both water and heat consumption for the line. Caledonian will continue to focus on improving our compliance with both PPC and local WWTP objectives and will continually strive to reduce the impact of our operations to the environment. UPM Caledonian continues to operate according to its Pollution Prevention and Control (PPC) Permit. Our Annual Compliance assessment by SEPA was judged to be Broadly Compliant. This takes our performance against Gordon Mitchell General Manager UPM CALEDONIAN, ENVIRONMENTAL PERFORMANCE 211 3

Emissions into the air Emissions to air for several parameters were slightly higher in 211 when compared to 21 which is to be expected due to the higher operating rate in 211. DUST 1 8 6 4 2 Optimisation of the fuel streams continued in 211 with the first year full year operating at the higher levels of combustion of Recycled Fuel allowed under Variation. This was increased again with the introduction of Variation 9 in 211 which allowed the combustion of a new stream of Clean Chipped Pallet wood which is WID exempt. There were only two failures in the emissions to air in 211 which required reporting to SEPA which occurred in July. There was a breach in the NO X ELV closely followed by a breach in the CO ELV as a result of the combustion of a quantity of Stumps which appeared to have had a very high nitrogen content. A downward trend in the dust is evident in 211 which can be attributed to optimisation of the CHP plant operation. The increase in both oxides of Nitrogen and Sulphur is primarily due to the increased combustion of recycled wood waste which results in higher furnace temperatures. Although there was a slight increase in the fossil carbon dioxide emissions in comparison to 21, these emissions are significantly lower than before the introduction of the CHP plant, reflecting the usage of biomass fuels in the combustion process. SO X, SULPHUR DIOXIDE 2 16 12 8 4 NO X, NITROGEN OXIDES 5 4 3 2 1 CO 2, FOSSIL CARBON DIOXIDE 1, 8, 6, 4, 2, Waste Waste continues to be an area of focus with investigations into the re-use of boiler ash. This will continue into 212 with a new route for disposal undergoing trials. SOLID WASTE 1, 8, 6, 4, 2, Landfill Combusted * Recovered/ Recycled * Combusted Data includes purchased Biomass 4 UPM CALEDONIAN, ENVIRONMENTAL PERFORMANCE 211

Water and effl uent 15, EFFLUENT m 3 /d Fresh water is a vital component in the paper production process and is constantly monitored and measured. Optimisation is a key factor to minimise fresh water intake and to ensure the minimum quantity is discharged as effluent. Our process re-uses water several times before final discharge to the municipal effluent treatment works. 12, 9, 6, 3, Good progress was made in 211 with a further reduction of the total effluent discharge for the second year running. The project for re-use of the CHP cooling tower blow-downs commenced at the end of 211 and will be a key area of focus in 212. The effluent suspended solids was a cause for concern during 211 with several incidences of solid levels being above the required levels of the agreement with our water supplier. Some of this can be attributed to the a higher level of solids coming from the PGW process after a rebuild of the disc filters which resulted in a higher level of fibre in the cloudy filtrate from this effluent stream. In addition to this there were sampling issues during 211 with a build-up of solids in the effluent line breaking away. Maintenance regimes are now at an increased level within the effluent sampler and solids control in the latter half of 211 showing a significant level of improvement. PH ph 1 8 6 4 2 SUSPENDED SOLIDS t/d 2.5 2. 1.5 1..5 COD, CHEMICAL OXYGEN DEMAND t/d 25 2 15 There was a slight increase in the COD in 211 which can partially be attributed to a higher operating rate than in 21. Also the mill continued to increase the production of higher brightness grades which have a higher level of bleaching and consequently higher levels of bleached filtrates. Changes in operating practices during 211 to reduce brightness targets were a key area of focus to ensure that COD levels remained within consent. 1 5 Permit UPM CALEDONIAN, ENVIRONMENTAL PERFORMANCE 211 5

Environmental parameters 211 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 211. Production capacity Paper 28, t Raw materials Energy Site emissions to air * Wood Chemical pulp Minerals Biogenic fuels Fossil fuels Electricity Sulphur dioxide, SO X Nitrogen oxides, NO X Carbon Dioxide (fossil) Carbon Dioxide (biogenic) Dust Information from UPM Group s environmental report. 94% 6% Information from UPM Group s environmental report. 8 t 379 t 14,737 t 367,471 t 3 t Water Fresh Water 3,74,662 m 3 Site discharges to water ** Controlled waste Size of mill area Chemical Oxygen Demand Total Suspended Solids Effl uent Volume Landfi ll materials Recycled materials Recovered materials Hazardous waste 4,945 t 382 t 3,269,753 t 93 t 193 t 14,15 t 63 t 33.1 ha * CO 2 emissions do not include transportation, these are third party verified via EUETS. ** Includes sanitary waste. 6 UPM CALEDONIAN, ENVIRONMENTAL PERFORMANCE 211

Environmental Performance 211 CHP Plant and Permit Compliance CHP plant now fully commissioned however optimisation on the operation continues. The plant generally remained in compliance with most of our emission limit values (ELV s) for the combustion process, with three instances of emissions to air being above the permitted levels. There was also one instance of the effl uent solids above the permitted level. 29th July to 1st August: fuel problems led to two instances of the hourly nitrous oxide reading being above the permitted level. In troubleshooting this incident there was one instance of the hourly carbon monoxide being above the permitted level. October 211: the monthly total suspended solids kg/t of product was above permitted level. PPC Permit Variation 9 received in May 211 which allows for the combustion of WID exempt palletwood. Emissions to Waste Water Reduction in m 3 /te LWC in 211 (12.34) compared to 21 (12.94) Slight increase in the daily TSS tes due to several issues with increased throughput in the primary effl uent system. Actions taken and successful in reducing the volumes requiring effl uent treatment by redistributing the cleaner effl uent streams to the paper machine system. Continued reduction in total effl uent discharge due to the optimisation work in reducing the volumes going to drain. COD Emissions to Effl uent: Slight increase in 211 from 21 mainly due to the increase in mill operating rate However the PPC permit conditions were not breached for this condition. Emissions to Air A reduction in dust particulates to air was seen in 211 however there was a slight increase in both the SO X and NO X emissions which can be attributed to the fuel streams and an increased throughput of the CHP plant. There was a slight increase in fossil carbon dioxide emissions in 211 when compared to 21 again due to an increased operating rate ENVIRONMENTAL TARGETS 212 Continuous environmental improvement through the implementation of UPM Clean Run Strategy Observe, Prevent, Act All reporting requirements as required by PPC permit fulfi lled. Develop a fuel supply profi le to ensure compliance of emissions to air within the CHP plant. Investigate and plan for increasing the volumes of the combustion of recycled fuels (RCF) Carry out a review of treated effl uent discharge after project completion for the re-use of the CHP turbine and boiler blow down effl uent streams. And develop a further action plan to target suspended solids. Continued focus on waste reduction and ash disposal routes. VALIDATION STATEMENT The Environmental Data to be contributed to the group environmental statement 211, has been validated to all the pertinent requirements of the regulation 1221/29EEC. The EMS and the programme are in place and have been seen to comply with Annex I. Environmental review and Audits have been conducted in accordance with Annex I & III. The data and Information in the contribution is reliable and adequately covers all significant and relevant environmental aspects. Richard Edmond BSI Environmental Specialist Client Manager Strategic Delivery UK EMAS Verifier Registration No. UK-V-2. UPM CALEDONIAN, ENVIRONMENTAL PERFORMANCE 211 7

www.upm.com UPM Caledonian UPM (UK) Ltd, Meadowhead Road, Irvine, Ayshire KA11 5AT Scotland, UK Tel. +44 () 1294 3122 Fax +44 () 1294 3144 6/212