Metsä Group s Bioproduct mill The largest biorefinery in Europe November 2, 2017 Niklas von Weymarn, VP for Research, Business Development Metsä Fibre Oy (part of Metsä Group)
https://www.youtube.com/watch?v=7ea YJgxz5-o
Metsä Group Focus areas Leading player in selected businesses We focus on products and services with promising growth prospects and in which we have strong competence and a competitive edge. Wood Supply and Forest Services Pulp and Other Bioproducts Wood Products Paperboard Tissue and Cooking Papers 3
Metsä Group Key figures 2016 METSÄ GROUP Sales EUR 4.7 billion Personnel 9,300 METSÄLIITTO COOPERATIVE Group s parent company Owned by 104,000 Finnish forest owners METSÄ FOREST METSÄ FIBRE METSÄ WOOD METSÄ BOARD METSÄ TISSUE Wood supply and forest services Pulp and Sawn timber Engineered wood products Paperboard Tissue and cooking papers Sales: EUR 1.5 billion Sales: EUR 1.6 billion Sales: EUR 0.5 billion Sales: EUR 1.7 billion Sales: EUR 1.0 billion Personnel: 900 Personnel: 1,250 Personnel: 1,500 Personnel: 2,500 Personnel: 2,750 Renewable energy 22.3 TWh 4 11/2/2017
Metsä Group Operations and sales 35 production units in 7 European countries. BREAKDOWN OF SALES AMERICAS EMEA APAC 600 500 400 300 256 Comparable operating result EUR million 343 418 537 439 5 7% 77% Production Sales company 16% 200 100 0 2012 2013 2014 2015 2016
Metsä Fibre Pulp sales by market area, % PULP MILLS SALES OFFICES MAIN PULP MARKETS 6 2.11.2017
Metsä Fibre Sawmills Metsä Fibre sawmills Vilppula Renko Metsä Svir, Russia Lappeenranta Merikarvia Kyrö Eskola 500,000 m 3, spruce personnel 76 330,000 m 3, spruce personnel 55 270,000 m 3, spruce personnel 115 240,000 m 3, pine personnel 59 230,000 m 3, pine personnel 74 220,000 m 3, pine personnel 69 60,000 m 3, spruce, pine personnel 11 2.11.2017
Metsä Fibre Pulp mills JOUTSENO MILL 690,000 t of softwood pulp 3.4 million m 3 of wood 135 employees KEMI MILL 604,000 t of softwood and birch pulp 3.1 million m 3 of wood 160 employees RAUMA MILL 585,000 t of softwood pulp 3.2 million m 3 of wood 119 employees ÄÄNEKOSKI BIOPRODUCT MILL 1,3 million t of softwood and birch pulp 6.5 million m 3 of wood 150 employees 2.11.2017
Metsä Fibre Products METSÄ FIBRE S BIOPRODUCTS END USE: PULP Softwood and birch pulp Board, tissue and printing papers, specialty products SAWN TIMBER Pine and spruce timber Construction industry, windows, doors, furnitures, planning, packaging BIOCHEMICALS Tall oil and turpentine Chemical industry products, biofuels BIOENERGY Electricity, heat bark, wood dust Energy consumption for society and industry 9
Severe global challenges Today Future We are consuming more than one planet can provide We have crossed four of nine planetary boundaries (esp. climate change and biodiversity) As the population and standard of living are increasing, we will need even more food, energy, water and materials A systemic change of our economic model is needed More on planetary boundaries under Stockholm Resilience Centre
Circular bioeconomy one of the solutions Source: Leading the way to a European circular bioeconomy strategy, EFI, 2017.
Timber log demand is critical for wood procurement Sawn goods and other wood products Timber log Pulp wood Chips Saw/panel mills Bioenergy Pulp mills Pulp and other bioproducts Wood harvesting Recycling Harvest residues Paper/board/tissue mills Paper, board and tissue Bioenergy Direct combustion
Finland: The stock of wood continues to grow Current tree stock in Finland is about 2.5 billion m 3 (in 1971, the tree stock was about 1.5 billion m 3 ) Current annual tree (stem) growth: 110 Mm 3 Loss of stem (round) wood in 2016: 86 Mm 3 Stem wood out of the forest 2016: 70 Mm 3 Saw and pulp mills: 62 Mm 3 Energy: 8 Mm 3 Sustainability level in terms of wood growth is 81 Mm 3 Sources: Liski et al., Ann. For. Sci, 63, 2006, and Natural Resources Institute Finland 2017.
Bioproduct mill The planning base Sustainable development Environmental Growth of carbon stock, certificates & traceability of wood Minimise local environmental footprint Cultural First valueaddedproducts, then bioenergy Bioproduct mill runs on renewable energy only Economic New circular concepts Living in innovation & business ecosystems 14
Bioproduct mill General Forest industry s biggest investment on the northern hemisphere In the city of Äänekoski, located in Central Finland EUR 1.2 billion investment Annual pulp production 1.3 million tonnes (old mill 0.5) In addition integrated production of additional bioproducts Use of wood 6.5 million m³ annually (old mill 2.4) 2,500 direct jobs in the whole value chain in Finland (old mill 1,000) Main markets for the pulp: Europe and Asia Sales will increase especially in China A unique business ecosystem will be developed at the Äänekoski industry site The mill was started up in Mid-August 2017 15
Metsä Fibre development concepts New biofuel Product gas Sulphuric acid Blue font = commercial since decades Dark green box = have reached commercial phase Yellow box = still in development phase Light green box = partly at commercial phase Addedvalue product WOOD SLUDGE Biogas and biofuel pellet PULP Biocomposites Fertiliser, earth work material, etc. 16 Textile fibre Pigment
Local business ecosystem in Äänekoski is already today quite comprehensive How to develop the ecosystem further by means of circular and bioeconomy? 17
Äänekoski industrial ecosystem Q3/2017 Potential products and partners in the future OPERATOR PRODUCT OPERATOR PRODUCT/SERVICE OPERATOR PRODUCT Metsä Forest Industrial and energy wood Metsä Fibre Product gas Sulphuric acid Metsä Wood Veneer Metsä Fibre Pulp grades Tall oil Turpentine Bioelectricity Steam District heat Bark fuel EcoEnergy SF AGA Mantsinen Biogas (biomethane) Biofuel pellets Oxygen Wood yard services EcoEnergy SF CO 2 Unknown Lignin product Unknown Bark product Metsä Board Äänevoima / Äänekosken Energia Folding boxboard Various forms of bioenergy VR Transport & M. Rauanheimo Pulp logistics in Finland Unknown Unknown Biocomposite Textile fibre CP Kelco Chemical made from pulp (CMC) Unknown Unknown Specialty Minerals Pigment made from CO 2 18
https://www.youtube.com/watch?v=9r W49gRG9KI