1. Selling the Paper Story – A Strategic Initiative for the Paper Industry Paolo Gianadda, Henry Coppens, Liezl Krummeck & Silvana Dimitrov Presented at the TAPPSA National Conference, Durban, South Africa, 19-20 October 2010

2. What is influencing opinion? The internet “Paper vs. Plastic”: 14,000,000 hits Observations (Top 10 listed sites): No paper companies/bodies North American perspective Strong emotive language around perceived negative impacts of the industry April 21, 20152

3. What exactly is being said? #1 site: http://www.angelfire.com/wi/PaperVsPlastic says of the paper industry:http://www.angelfire.com/wi/PaperVsPlastic “a tremendous scar in the forest.” “numerous accidents plague the less-than-wealthy loggers.” April 21, 20153

4. What exactly is being said? #1 site: http://www.angelfire.com/wi/PaperVsPlastic says of the oil industry:http://www.angelfire.com/wi/PaperVsPlastic “An oil drilling/pumping rig is roughly the size of a house.” AND “Literally, you could ‘mine’ oil in your backyard.” April 21, 20154

5. What exactly is being said? #1 site: http://www.angelfire.com/wi/PaperVsPlastic says of Plastic bags:http://www.angelfire.com/wi/PaperVsPlastic Plastic: A by-product of oil refining. Only 4% of the total world’s oil used for its production. Apart from fuel burning heavy machinery, used in the acquisition of the oil, the entire plastic bag making process uses only electricity, which is mostly nuclear. April 21, 20155

6. What else is being said? Common messages: Landfill space Plastic: Recyclable & reusable Resource consumption for paper: Water – 50% more Energy – 70% more emissions Paper use = trees cut down Who is writing this stuff? Where do these stats come from? April 21, 20156

7. They even admit… Blog.greenfeet.com: “Is it a complete, scientific assessment? No. However, it’s a good start, filled with facts and one that I hope gets you thinking the next time you’re confronted with the choice” (paper or plastic)....yet, this is what is influencing opinion April 21, 20157

8. How should the paper industry respond? Arguments against paper are: Generalised and speculative Scientific? Different operating environment? With some truths Validity? How should the industry respond? Don’t speculate Focus on the SA industry Be transparent April 21, 20158

9. Three Key Areas for Promotion April 21, 20159 Carbon Bio- sequestration in Plantation Forests Carbon Impact of Pulp and Papermaking Processes Recyclability of Paper and Associated Carbon Impact Strategic Direction of Carbon Impact Mitigation A Series of Unchallengeable Facts about the Paper Industry

10. Biosequestration in Plantation Forests Biosequestration – capture & storage of CO 2 by biological processes Neutral carbon balance Plantation forestry – a carbon repository Above ground stock Root and soil carbon Under-promoted aspect of the SA industry? Time to start accounting for carbon stocks? April 21, 201510 Atmospheric CO 2 C in wood C in product CO 2 released in papermaking CO 2 /CH 4 released in product degradation

11. Carbon Sequestration vs. Carbon Footprint Carbon sequestration like a bank account: Capital – above ground carbon Interest – root & soil carbon Only changes in carbon stocks count to carbon footprint Green House Gas reporting mandatory in 2012. Carbon taxation mooted for 2012/2013 - offset potential? April 21, 2015

12. Carbon Impact of Pulp & Papermaking Complaints about energy intensity ignore: Renewable energy use Cogeneration April 21, 2015

13. Energy Use - Kraft Process Wood Handling Cooking Pulp Washing Bleaching Paper Machines Evaporation Recovery Boiler Green Liquor Clarification Causticising Lime Reburning Black Liquor Chemical Recovery White Liquor High Pressure Steam

14. Energy Use - Kraft Process Wood Handling Cooking Pulp Washing Bleaching Paper Machines Evaporation Recovery Boiler Green Liquor Clarification Causticising Lime Reburning Black Liquor Chemical Recovery White Liquor High Pressure Steam Gas Low Pressure Steam SteamTurbines Electricity Bark Boiler Bark Eskom Electricity Coal Fired Boilers Coal CausticisingEvaporation Recovery Boiler Green Liquor Clarification Lime Reburning Chemical Recovery High Pressure Steam

15. Energy Use - Kraft Process Wood Handling Cooking Pulp Washing Bleaching Paper Machines Evaporation Recovery Boiler Green Liquor Clarification Causticising Lime Reburning Black Liquor Chemical Recovery White Liquor High Pressure Steam Gas Low Pressure Steam Turbines Electricity Bark Boiler Bark Eskom Electricity Coal Fired Boilers Coal CausticisingEvaporation Recovery Boiler Green Liquor Clarification Lime Reburning Black Liquor Chemical Recovery

16. Cogeneration & Condensing Power Generation Electricity generated by passing high pressure steam through turbine. Steam expands, causing blades of turbine to spin. Power is generated & steam pressure reduced. Cycle in Power Generation Plant: Add energy to convert water to high pressure steam Produce electricity from high pressure steam & reduce steam pressure until no more electricity can be generated Convert low pressure steam back to water by removing energy from vapour April 21, 201516 REPEATREPEAT Total energy added to water to create steam 25 o C 100 o C 430 o C LiqVapourPhase Change – Liquid to Vapour Electricity

17. Cogeneration & Condensing Power Generation Difference: Fate of the energy associated with the low pressure vapour. Cogeneration – energy is used. Conventional power generation – energy sent to cooling tower. April 21, 201517 Mainly cogeneration 0.43 t CO 2 -e/MWh (ex coal) vs. 1.03 t CO 2 -e/MWh ~0 kl water/MWh vs. 1.34 kl water/MWh

18. Still a Positive Carbon Footprint Kraft packaging paper: ~3 t CO 2 /t paper Recycled paper: ~1 t CO 2 /t paper How does plastic compare? April 21, 201518

19. Some estimates around plastic Plastic bags made from polyethylene (PET) 1.75 - 2 t petroleum per ton of PET 0.75 t petroleum for energy per ton of PET 2.1 – 2.4 t fossil CO 2 produced per ton of PET 3.1 t CO 2 released on decomposition per ton of PET April 21, 201519

20. Paper vs. Plastic April 21, 201520

21. Forward Looking Statements on Carbon “How is the paper industry planning to reduce its carbon footprint?”... “Through efforts to increase renewable energy use” April 21, 201521

22. Forward Looking Statements on Carbon “How is the paper industry planning to reduce its carbon footprint?”... “Through efforts to improve cogeneration” April 21, 201522

23. Forward Looking Statements on Carbon “How is the paper industry planning to reduce its carbon footprint?”... “Through efforts to improve energy efficiency in the manufacturing processes” April 21, 201523

24. Forward Looking Statements on Carbon “How is the paper industry planning to reduce its carbon footprint?”... “Through efforts to increase the amount of paper recycling” April 21, 201524

25. Forward Looking Statements on Carbon “How is the paper industry planning to reduce its carbon footprint?”... “Through the promotion of the concept of Reduce, Reuse and Recycle. April 21, 201525

26. Seven Facts about the Paper Industry Fact 1: Paper is a renewable resource April 21, 201526

27. Seven Facts about the Paper Industry Fact 2: Paper is biodegradable April 21, 201527

28. Seven Facts about the Paper Industry Fact 3: Plantation forests are natural sinks for carbon dioxide April 21, 201528

29. Seven Facts about the Paper Industry Fact 4: Paper is easily recycled – recycled paper has a reduced carbon impact April 21, 201529

30. Seven Facts about the Paper Industry Fact 5: Significant quantities of renewable energy are used to produce pulp and paper April 21, 201530

31. Seven Facts about the Paper Industry Fact 6: Cogeneration – a greener power generation option April 21, 201531

32. Seven Facts about the Paper Industry Fact 7: Reduce, Reuse, Recycle – the best way to reduce carbon impact April 21, 201532

33. Looking ahead… Just a start to the “Paper vs. Plastic” debate Not all issues addressed Product research agenda set by the gaps Issues around utility to be addressed: How many grams to produce an equivalent strength bag? How many times can a bag be reused? April 21, 201533

34. Parting Shot The paper industry has a compelling story to tell - is it not time to be more proactive as an industry in telling this story? April 21, 201534