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APP Sustainability Report 2008-2009 - Asia Pulp and Paper

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Sustainable Products<br />

Sustainable Products<br />

Key Process inputs<br />

We examine in more detail our two<br />

pulpwood suppliers, who provide the key<br />

raw material for our pulp mills, in chapter<br />

five. All <strong>APP</strong> pulp <strong>and</strong> pulpwood suppliers<br />

must meet the strict requirements of our<br />

procurement policy, which dem<strong>and</strong> that<br />

both domestic <strong>and</strong> imported pulpwood <strong>and</strong><br />

pulp raw materials are confirmed / certified<br />

from sustainably managed sources. <strong>APP</strong>’s<br />

environmental credentials also include the<br />

adoption of, <strong>and</strong> compliance with, a number<br />

of national <strong>and</strong> international st<strong>and</strong>ards as<br />

detailed in the product labelling section of<br />

the report.<br />

<strong>Pulp</strong>ing Raw Materials<br />

Sustainably managed, plantation-grown<br />

acacia <strong>and</strong> eucalyptus pulpwood log account<br />

for more than 80 percent of our total pulping<br />

raw material. There is also a small (<strong>and</strong><br />

diminishing) percentage of mixed wood<br />

residues arising from plantation preparation<br />

activities. We aim to be entirely supplied by<br />

forest certified wood under the m<strong>and</strong>atory<br />

certification scheme in 2015.<br />

The predominant raw material used in<br />

manufacturing <strong>APP</strong>’s high-quality printing,<br />

writing <strong>and</strong> tissue papers is bleached pulp.<br />

Our own short-fibre hardwood pulp, (Leaf<br />

Bleached Kraft <strong>Pulp</strong> / LBKP), produced at<br />

Indah Kiat Perawang <strong>and</strong> Lontar Papyrus<br />

mills, must be augmented with a limited<br />

percentage of purchased, imported longfibre<br />

softwood kraft pulp (Needle Bleached<br />

Kraft <strong>Pulp</strong> / NBKP) when used on most of<br />

<strong>APP</strong>’s paper machines. This is necessary<br />

to achieve enhanced sheet strength <strong>and</strong><br />

to improve the “runnability” or smooth<br />

operation of our high-speed paper machines.<br />

Recycling of fibre at <strong>APP</strong>’s mills is done in<br />

several ways. <strong>Paper</strong> mills are able to re-pulp<br />

any subst<strong>and</strong>ard paper that results from<br />

machine operation or paper specification<br />

problems, <strong>and</strong> to incorporate it into the<br />

pulp raw material used in production. The<br />

concern for the mill here is not any loss of<br />

raw material, but the loss of operational<br />

efficiency that this material – always referred<br />

to as “broke” – represents. Two mills, Indah<br />

Kiat Serang <strong>and</strong> Ekamas Fortuna, purchase<br />

<strong>and</strong> recycle low-grade, post-consumer<br />

wastepaper to produce packaging papers.<br />

Graphic 2 - <strong>APP</strong> Raw Material Composition<br />

* Imported fiber<br />

third party verified<br />

non- controversial<br />

sources that meet<br />

PEFC guidelines<br />

verified legal origin<br />

(legally harvested<br />

under Indonesian law)<br />

10%<br />

25%<br />

We also de-ink a small percentage of the<br />

repulped post-consumer waste to produce<br />

an upgraded pulp that can displace virgin<br />

wood pulp fibre in some paper grades.<br />

The Energy Mix<br />

Our two integrated pulp <strong>and</strong> paper<br />

operations, Lontar Papyrus <strong>and</strong> Indah Kiat<br />

Perawang, together generate about 4 million<br />

MWHr of electricity a year, in addition to all<br />

of their process steam requirements. Lontar<br />

Papyrus is essentially energy self-sufficient,<br />

while Indah Kiat Perawang does require<br />

some supplementary energy inputs. This<br />

high level of energy independence is largely<br />

due to the incineration of renewable, woodderived,<br />

process-related by-products.<br />

Much of this renewable fuel resource is in<br />

the form of “black liquor,” which comprises<br />

dissolved organic matter generated in the<br />

pulping process, plus the associated <strong>and</strong><br />

recycleable pulping chemicals. Incineration<br />

of this material as a concentrated liquor in<br />

our recovery boilers enables us to reclaim<br />

some pulping chemicals for reuse <strong>and</strong><br />

simultaneously contributes most of the<br />

energy needed at both mills. Black liquor is<br />

augmented as a fuel in separate, multi-fuel<br />

boilers with bark <strong>and</strong> other wood waste<br />

resulting from on-site wood preparation, <strong>and</strong><br />

with other purchased, waste-derived fuels,<br />

such as palm-oil mills <strong>and</strong> sawmill residues.<br />

30%<br />

35%<br />

recyled fibres<br />

<strong>and</strong> paper<br />

certified under one<br />

of the various leading<br />

certification programs:<br />

LEI, PEFC, FSC* or PHPL<br />

Indah Kiat Perawang mill converts a<br />

substantial percentage of the pulp it<br />

produces to paper on-site, <strong>and</strong> this requires<br />

some supplementary use of coal to meet<br />

that site’s overall power <strong>and</strong> process steam<br />

needs. This coal-fired generation represents<br />

approximately 20 percent of total energy<br />

inputs.<br />

To meet their energy requirements, <strong>APP</strong>’s<br />

six paper mills rely to varying degrees<br />

on a range of fossil fuels, including coal,<br />

natural gas, diesel oil <strong>and</strong> marine fuel oil,<br />

<strong>and</strong> on both purchased <strong>and</strong> self-generated<br />

electricity. In the case of Pindo Deli mill,<br />

70 percent of total steam <strong>and</strong> power<br />

requirement is generated using natural gas.<br />

At Indah Kiat Tangerang mill, waste heat<br />

from a sophisticated gas turbine power<br />

generation unit is used to augment coal-fired<br />

process steam. In addition, wastewater<br />

treatment plant sludge was also used at<br />

Indah Kiat in <strong>2008</strong> <strong>and</strong> <strong>2009</strong> as a source of<br />

renewable fuel.<br />

We are currently in the planning <strong>and</strong><br />

development stages of enabling all our<br />

paper mills to use wastewater treatment<br />

plant sludge to produce energy. The<br />

implementation will take place as soon as<br />

practicable.<br />

Chemical Inputs <strong>and</strong> Process Expertise<br />

Most chemicals from the pulp cooking<br />

process can be recovered <strong>and</strong> reused,<br />

supplemented with a small amount of<br />

fresh chemicals to maintain the correct<br />

chemical conditions <strong>and</strong> concentrations<br />

for subsequent cooking cycles. Our key<br />

process-chemical inputs include salt,<br />

limestone <strong>and</strong> sodium sulphate, <strong>and</strong> these<br />

basic, un-reactive chemical compounds<br />

are converted on-site to the highly reactive<br />

chemicals needed for the cooking <strong>and</strong><br />

bleaching processes. The relative remoteness<br />

of our two pulp mills in Sumatra means<br />

that virtually all pulping chemicals must<br />

be produced on-site. This has implications<br />

both in terms of energy requirements <strong>and</strong><br />

sophisticated chemical engineering <strong>and</strong><br />

maintenance. High-specification construction<br />

materials are needed for all the chemical<br />

processing <strong>and</strong> containment required.<br />

In our paper mills, we use a range of<br />

additives to impart specific properties to<br />

our different papers. These include fillers,<br />

such as calcium carbonate for opacity <strong>and</strong><br />

smoothness; sizes, which help manage<br />

ink penetration; starches, which provide<br />

stiffness, strength <strong>and</strong> surface properties;<br />

optical bleaching agents, used to enhance<br />

whiteness <strong>and</strong> brightness, <strong>and</strong> dyestuffs,<br />

which are used for both pastel tints <strong>and</strong><br />

highly-coloured grades. Other additives are<br />

used to enhance paper machine operational<br />

performance, improve machine drainage <strong>and</strong><br />

maintain system cleanliness.<br />

Our Tjiwi Kimia <strong>and</strong> Pindo Deli mills have a<br />

particular expertise in the coating of papers<br />

with finely ground mineral matter to produce<br />

paper surface properties suitable for a wide<br />

range of high-quality printing techniques <strong>and</strong><br />

finishes.<br />

Indah Kiat Serang <strong>and</strong> Ekamas Fortuna mills<br />

specialise in the production of packaging<br />

papers using, predominantly, lower-grade,<br />

post-consumer wastepaper as their raw<br />

material. And there is now a general move<br />

towards recycling at other <strong>APP</strong> fine-paper<br />

sites through the incorporation of some<br />

higher grades of wastepaper in response<br />

to market dem<strong>and</strong>s for recycled-content<br />

products.<br />

Any sub-st<strong>and</strong>ard or rejected product<br />

within paper mills (broke) – is recycled<br />

internally, ensuring the material is not lost<br />

from the system or wasted. Some pulpingprocess-related<br />

chemicals, surplus to on-site<br />

requirements – particularly hydrochloric<br />

acid (HCl) – are marketed externally. And<br />

two of our paper mills in Java, which are<br />

close to major urban population centres,<br />

produce chlorine on-site for sale to local<br />

municipal water purification systems <strong>and</strong><br />

industrial companies. The sodium hydroxide<br />

co-product is sold within <strong>APP</strong> to our two pulp<br />

mills for use in production.<br />

External sale of chemicals increased by some<br />

6 percent in value <strong>and</strong> tonnage in <strong>2009</strong>, in<br />

comparison to <strong>2008</strong>, but this represents less<br />

than 2 percent of total <strong>APP</strong> sales revenue.<br />

In recent decades, there have been growing<br />

international concerns about traces of<br />

dioxins found in wastewater discharges from<br />

pulp mills. This has been tentatively linked<br />

to excessive use of elemental chlorine for<br />

pulp bleaching, <strong>and</strong> has led, over time, to a<br />

marked reduction in chlorine usage worldwide,<br />

<strong>and</strong> the introduction of elementalchlorine-free<br />

(ECF) bleaching, usually in<br />

conjunction with alkaline / oxygen (A/O)<br />

<strong>and</strong>/or peroxide (H 2<br />

O 2<br />

) bleaching stages.<br />

ECF bleaching uses a diluted solution of<br />

chlorine dioxide gas – generated on-site in a<br />

sequence of electro-chemical <strong>and</strong> chemical<br />

reactions – rather than gaseous chlorine.<br />

Elemental Chlorine Free (ECF) bleaching<br />

was introduced to <strong>APP</strong> pulp mills starting<br />

1996 <strong>and</strong> have markedly increased their CF<br />

bleaching ever since.<br />

Water Management<br />

<strong>APP</strong>’s mills are typical of pulp <strong>and</strong> paper<br />

manufacturing operations in using<br />

substantial quantities of water. Indeed, pulp<br />

<strong>and</strong> paper mills worldwide are invariably<br />

located adjacent to substantial watercourses.<br />

About 85 percent to 90 percent of the water<br />

used in both integrated <strong>and</strong> st<strong>and</strong>-alone<br />

paper mills is for process purposes with<br />

some 10 percent to 15 percent used to<br />

produce steam, <strong>and</strong> for cooling associated<br />

with power generation. In aggregate, <strong>APP</strong><br />

mills drew 262 million m 3 of raw water in<br />

<strong>2009</strong>, an increase of 12 percent over the<br />

previous year. Meanwhile, water discharged<br />

directly back into rivers after wastewater<br />

treatment rose by 14 percent, to an<br />

aggregate of 190 million m 3 . The differential<br />

between raw water withdrawn from rivers<br />

<strong>and</strong> wastewater discharged is accounted for<br />

both by evaporation <strong>and</strong> by the amount of<br />

uncontaminated water used only for cooling<br />

purposes, which by-passes our wastewater<br />

treatment plants.<br />

All of our mills are legally required to<br />

monitor the composition of their wastewater<br />

discharges, with respect to the biological<br />

oxygen dem<strong>and</strong> (BOD), chemical oxygen<br />

dem<strong>and</strong> (COD), suspended solids <strong>and</strong> pH<br />

values. We must also monitor river water<br />

quality upstream <strong>and</strong> downstream of our<br />

plants. Frequently, both the upstream <strong>and</strong><br />

downstream waters are found to be outside<br />

national river water quality st<strong>and</strong>ards. This<br />

can be due to agricultural or industrial<br />

activities upstream of our operations, <strong>and</strong><br />

requires us to operate extensive raw water<br />

treatment plants, to ensure the purity of our<br />

process water.<br />

Water consumption per tonne across all of<br />

our paper mill operations increased from<br />

an average of 9.1 m 3 /tonne of production in<br />

<strong>2008</strong> to 9.9 m 3 /tonne in <strong>2009</strong>.<br />

Water usage <strong>and</strong> wastewater discharge<br />

considerations are further discussed in the<br />

individual mill sections of this report.<br />

[EN 5]<br />

[EN 10, PR 3, PR 4]<br />

24 <strong>APP</strong> 08/09 <strong>Sustainability</strong> <strong>Report</strong> <strong>APP</strong> 08/09 <strong>Sustainability</strong> <strong>Report</strong> 25

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