ENERGY CONSERVATION IN THE PULP, PAPER, AND WOOD PRODUCTS INDUSTRY
Jerry W. Garner
Introduction
The pulp, paper, and wood products industry
contributes 7% of national manufacturing output for
the U.S. economy. Recent industry sales totaled
$230 billion with a labor employment of 1.6
million. The industry is the third largest user of
energy in the U.S. industrial manufacturing sector.
Energy consumption in the industry is heavily
influenced by process technologies, conservation
practices, and environmental constraints. The
industry is mature in North America and operates in
a highly competitive global market. Reductions in
energy consumption are dependent upon process
technology advances, while increasingly restrictive
environmental requirements commonly require
increased energy usage.
This paper documents energy pricing trends,
consumption trends, and conservation practices and
technologies for the pulp, paper, and wood products
industry. Industry energy conservation has the
synergistic effect of increasing profit margin in a
competitive market and reducing environmental
emissions.
Energy Pricing Trends
Industrial energy pricing is volatile and is highly
sensitive to the world political climate in oil
exporting countries. Current energy pricing is
moderate and reasonably stable. However, energy
pricing can escalate with political turmoil in the
major petroleum exporting countries, including
Canada, Saudia Arabia, Venezuela, Iraq, and
Mexico.
Natural gas, fuel oil, and coal are the principal fossil
fuels used in the pulp, paper, and wood products
industry.
Renewable fuel, chiefly wood waste, represents a
significant, but relatively inexpensive, fuel source.
Industrial consumption of natural gas has increased
about 18% in the past decade to a total of
approximately 22 billion cubic feet per year.
Increases in natural gas consumption from 1996 -
2001 have been due principally to manufacturing
output, fuel switching, and electric power
generation. Approximately 16% of domestic
natural gas usage is imported.
Natural gas industrial pricing from 1990-1995
averaged $3.00/1000 ft3 . However, gas pricing
began an escalating trend in 1996 and peaked at
$5.50/1000 ft3 in 1997. Natural gas pricing in 2002
has approximated $3.75/1000 ft3.
Petroleum product consumption in the U.S. declined
in 2001 by nearly 1% to approximately 20 million
barrels per day. Contributing factors in 2001 were
reduced industrial production, warm weather, less
air travel, and fuel switching for emission reduction.
Petroleum imports represent nearly 60% of U.S.
consumption, while domestic petroleum production
remains relatively constant.
Crude oil market pricing ranged from $15-$20 per
barrel from 1990-1998. Crude oil pricing began
escalation in 1999 and currently averages $23 per
barrel.
Coal consumption in the U.S. has remained
relatively flat since 1995 due mainly to milder
weather, lower exports, increased nuclear power
generation rates, and stringent air emission
standards. Coal production rate has generally
tracked consumption.
Coal market pricing in the U.S. has actually
dropped since 1994 from approximately $36/ton to
$35/ton in 1999.
Industrial electric power consumption increased
about 12% from 1990-1999, in large part due to
population increases and manufacturing output.
However, power consumption has actually
decreased since year 2000 due to recessionary F IG U R E 1
trends in the manufacturing sector and general E LE C T R IC IT Y C O S T B Y R E G IO N
economy. The pulp, paper, and wood products
industry is the third largest consumer of electricity $90
$80
in the U.S. industrial manufacturing sector, $70

following chemicals industries and petroleum $60

$50

$/MW
refining. $40
$30
$20
The historical trend in industrial electricity $10

consumption has steadily increased from 945 billion $0

NE E SE MTN PAC AVG
kwh in 1990 to 1,060 billion kwh in 2000. R E G IO N
Industrial electricity consumption in 2001 decreased R eference 2

to 994 billion kwh due to reduced manufacturing

rates.
Industrial electricity market costs have actually
decreased during the past decade. This pricing
phenomenon reflects the effects of utility
deregulation and the proliferation of non-utility
power generators. By the end of 2000, twenty three
states had initiated legislation aimed at deregulating
state utilities.
Historical trends in industrial electricity market
costs have declined from an average of $48/MW in
1991 to $45/MW in 2000.
However, industrial electricity costs have
historically been highly variable, depending upon
geographic location in the U.S. This variability in
delivered electricity cost is heavily influenced by
regional fuel and power grid distribution costs.
While industrial electricity costs have averaged
$50/MW, regional costs have ranged from $39-
$87/MW.
Figure 1 depicts the regional variance of industrial
electricity costs in the U.S.
Energy Consumption Rates
While the pulp, paper, and wood products industry
is energy intensive, the industry self-generates a
large proportion, approximately 60%, of the energy
required to support the manufacturing processes.
The self-generated energy is in the form of wood
waste fuels, by-product and chemical waste fuel
streams, and power co-generation.
There is a wide disparity in specific energy
consumption between the pulp and paper sector and
the wood products sector of the industry. Figure 2
shows the relative energy consumption rates of the
major segments of the pulp and paper sector.
Figure 2
ENERGY CONSUMPTION
PULP & PAPER (TRILLION BTUs)
198
PULP
984
PAPER
NEW SPRINT
1154
BOARD
175

Reference 5

Energy consumption in the different segments of

the wood products sector is represented in Figure 3.
Engineered products represent the largest energy
consumption in wood products, i.e., plywood,
panels, and composite building materials. Sawmills
producing dimension lumber represent the second
largest segment of energy usage in this sector.
 ü Electrical and steam mechanical drives
ü Variable speed electrical drives
Figure 3
ENERGY CONSUMPTION ü Process vessel insulation
WOOD PRODUCTS (TRILLION BTUs) ü Waste and renewable fuel usage
ü Boiler steam and flue gas temperature
ü New process, mechanical, electrical, and control
technologies
106 SAWMILLS
166
PRESERVATION Energy consumption in the wood products industry
ENG. PRODUCTS can be extremely variable among different type
14
223 OTHER product plants, as illustrated in Figure 5

Reference 5 FIGURE 5 - THERMAL ENERGY

WOOD PRODUCTS MILLS
PER 1000 FT3 PRODUCT
Energy Conservation Practices
27

Energy conservation in the pulp, paper, and wood 25

MMBTU/1000FT3
23
products industry is typically the result of process
21
technology advancements and diligence in
19
manufacturing operations. 17
15
Energy intensity in the pulp and paper industry A B C D
varies according to the chemical and mechanical MILL
Reference 5
processes used for wood pulp manufacturing.

Figure 4 illustrates the variation in energy intensity Energy conservation in the wood products industry
for several different pulp mill processes. typically includes optimization of these major areas:

ü Waste wood fuel use

FIGURE 4
NOMINAL ENERGY USAGE ü Kiln dryer retention time
ü Kiln dryer air heat recovery
25 ü Kiln hot air leaks
ü Product moisture measurement and control
MMBTU/TON PULP

20
15 ü Direct fired heating controls
10 ü Steam heating controls
5
ü Electrical power scheduling
ü Electrical co-generation
0
KRAFT- KRAFT- S-CHEM CTMP MECH
ü Insulation thickness and maintenance
UNBL BL
MILL TYPE Plant Energy Management Tools
Reference 5

In the decades prior to 1990, many industrial plants

In the pulp and paper sector, energy conservation
practices typically include optimization in the
following major areas:
ü Indirect steam process heating
ü Steam condensate recovery
ü Process water and secondary heat recovery
ü Electrical co-generation
had larger technical, engineering, and technical
support staffs than today. It was common that large
manufacturing plants had a staff position called
Energy Manager. Instrumentation and controls were
typically in place to track, monitor, and report
energy specific consumption and to track
conservation programs. Energy conservation teams
would be managing funded conservation projects at
the plant site. Larger manufacturing companies
would typically supplement the local plant energy
management team with corporate support, including
specialized energy management programs, software,
and tracking and control packages. These
specialized staff positions and energy support
systems are often unfilled and nonexistent in the
streamlined manufacturing organization of 2002.
In the 1990s, those same manufacturing plant
energy monitoring, control, and reporting tools are
still required. However, energy monitoring and
reporting systems are typically software based
systems which require minimal specialized staff
support. These energy software management
systems are often web-based systems which monitor
multiple manufacturing sites and provide
monitoring and reporting capabilities to remote,
corporate locations. Real time management and
supervision of energy production, consumption, and
conservation is possible. Nonetheless, support of
these energy management systems at the local plant
site level is essential for success.
BE&K has developed an effective methodology for
industrial energy management and conservation.
The methodology is called enManageTM. This
energy management methodology has been used
successfully in 25 industrial sectors, including pulp
and paper, pharmaceuticals, automotive, steel,
building products, petroleum, food, and beverage
industries, for energy management and
conservation.
Primary tools of enManageTM include:
Ø Energy audit
Ø Measurement and monitoring
Ø Statistical data analysis
Ø Energy balance
Ø Target setting
Ø Opportunity identification
Ø Opportunity prioritization
Ø Project economic analysis
Ø Project implementation
Ø Performance tracking
Ø Routine energy reports
enManageTM uses a steering team from the
manufacturing plant site. The site team is properly
trained in executing the enManageTM methodology.
The site team may include management, production,
engineering, technical, environmental, and quality
control personnel. This plant site team is
responsible for execution of the energy management
program. The site team meets periodically to
manage the execution and tracking of the plant
energy usage and conservation program.
enManageTM utilizes advanced web based software
tools and can integrate the energy approach for
implementation at multiple manufacturing sites.
Since the enManageTM software is web based, it can
be used by large corporations to monitor the
performance of energy systems at various
manufacturing locations.
Typical results from successful implementation of
the enManageTM methodology include:
1. Total energy savings range from 5% - 15%.
2. Water savings can range from 5% - 15%.
3. Raw material savings can reach 1%.
4. Utility savings of 4% at a steel plant with 9
month return on investment.
5. Utility savings of 16% over an 18 month period
at a pharmaceuticals plant.
Energy and Environmental Synergies
Environmental water and air emission reductions
are commonly synergistic with energy savings in
the industrial sector. An energy savings of 1%
calculated on residual oil fuel for the pulp, paper,
and wood products industry could potentially
reduce sulfur dioxide emissions by 17,000 tons per
year, nitrogen oxide emissions by 5,000 tons per
year, and particulate emission by 1,300 tons per
year. A water savings of 5%, coincident with
energy reduction, could potentially reduce
wastewater biochemical demand on receiving
streams by 570 tons per year.
Conclusions
1. The pulp, paper, and wood products industry is
the third largest consumer of energy in the U.S.
2. Energy prices are currently moderate but are
extremely sensitive to the political climate in oil
exporting countries.
3. Energy conservation practices are well
established for the industry.
4. Energy consumption in the industry is
principally influenced by process technology
advancements and operating diligence.
5. Proven systems and software packages are
available for implementation of energy
management and conservation practices.
6. Energy savings have the synergistic effect of
improved profit margins in a competitive market
and reduced environmental emissions.

References:

1. U.S. Department of Energy, "Coal

Production Report", 2000.
2. U.S. Department of Energy, "Electric Utility
Sales", 2002.
3. U.S. Department of Energy, "Natural gas
Prices", 2002.
4. U.S. Department of Energy, "Sales Price for
Petroleum Products, 2001.
5. U.S. Department of Energy, "Manufacturing
Energy Consumption Survey, 1998.