Presentation by Nate Aden and James Bradbury for the July 17, 2013 Midwest Industrial Initiative Webinar co-hosted by the Midwest Energy Efficiency Alliance (MEEA) and World Resources Institute. Find out more at http://www.wri.org/event/2013/07/webinar-energy-efficiency-us-midwest-pulp-and-paper-mills

1. MEEA Midwest Industrial Initiative Webinar
Nate Aden, James Bradbury, Forbes Tompkins
Energy Efficiency in U.S.
Midwest Pulp and Paper Mills

2. This study seeks to answer four questions:
• How does Midwest mill energy intensity compare with the rest of
the country?
• What is the efficiency potential and what are the relative costs and
emissions savings benefits?
• What are the most cost-effective energy- and emissions-saving
technology options?
• What are the primary barriers to efficiency investment and potential
policy solutions?
Questions to be Answered

3. Today’s Presentation
1. Questions and background
2. Benchmarking & emissions inventory
3. Energy efficiency options
4. Case studies
5. Policy landscape & recommendations

4. Background on
Midwest Pulp and
Paper Mills

5. Most Midwest mills are located in
Wisconsin

6. There are three types of pulp and paper mill
in the Midwest

7. Benchmarking
and Emissions
Inventory

8. Midwest pulp and paper mills vary
widely in their energy intensity

9. EPI analysis indicates that Midwest mills
are less efficient than the U.S. average

10. Less-efficient Midwest mills could save
$120 million by improving efficiency to
national average mill level…
0
20
40
60
80
100
EnergyPerformanceScore
ENERGYSTAR Efficiency Benchmark
U.S. Average Efficiency
Midwest Average Efficiency
Initial 18 trillion Btu of
energy savings worth $120
million
Midwest Pulp and Paper Mills

11. …and a total of $240 million if they improved
performance to the ENERGY STAR® level.
0
20
40
60
80
100
EnergyPerformanceScore
ENERGYSTAR Efficiency Benchmark
U.S. Average Efficiency
Midwest Average Efficiency
Initial 18 trillion Btu of energy
savings worth $120 million
...additional 18 trillion Btu of energy
savings worth $120 million
Midwest Pulp and Paper Mills

12. Michigan has the largest potential savings
followed by Minnesota
State Subtotal
Number
of mills
Average EPS
Potential energy savings
with ENERGY STAR
performance (trillion
Btu/year)
Potential energy cost
savings with ENERGY
STAR performance ($
million/year)
WI 7 62 10 $ 64
MN 6 40 11 $ 73
MI 4 20 13 $ 84
OH 4 39 3 $ 18
Midwest Subtotal
21
46
36 $ 240
Note: This table covers Midwest integrated or pulp-only mills with a 2010 EPS below 75; other Midwest states only have higher performing
mills or paper-only mills.

13. Paper sector CO2 emissions
depend on scope
-
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
KS IL MO IN IA OH MN MI WI
GrossCO2Emissions(MetricTons)
Biogenic CO2 Emission
Indirect CO2 Emissions
Direct CO2 Emissions

14. Aggressive efficiency can reduce CO2
emissions by more than fuel switching alone
-
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2010 baseline fuel switching ENERGY STAR
benchmark level
CO2Emissions(Mt)
19%
34%

15. Energy Efficient Options:
A range of technologies and practices are
available to reduce energy use

16. Midwest pulp and
paper mills could
cost-effectively
reduce their energy
intensity by 25%

17. Recycling and drying technologies have
significant savings potential

18. Case study plants
and companies
demonstrate the
business-case for
investment, and
illustrate the role of
policy

19. Leading plants and companies have already
successfully invested in energy efficiency

20. There are multiple benefits to energy
efficiency investment

21. Review of barriers, policies, and programs
Barriers
• Transaction costs, capital constraints, and incomplete information
Federal Landscape
• Clean Air Act and Clean Water Act
• Public Utility Regulatory Policies Act (PURPA)
• US Climate Action Plan (June 2013)
• White House Executive Order 13624 (Accelerating Investment in
Industrial Energy Efficiency; 8/2012)
• Programs at DOE, EPA, NIST
• Legislation
State Landscape
• Technical, regulatory and financial assistance
• Utility regulation over rates and grid access
• EE targets and goals

22. Policy recommendations
1. Benchmark industrial energy efficiency
performance
2. Introduce a mix of minimum standards and
“reach” incentives
3. Support CHP utilization through state and
federal policies
4. Develop new regulatory frameworks to
promote electric utility-manufacturer
collaboration
5. Build on current research to develop
geographically and sectorally integrated
climate policy

23. Key Findings and Conclusions
• Energy efficiency can help save the 350,000 jobs associated with U.S.
pulp and paper mills
• More energy efficient Midwest pulp and paper mills would save millions
of dollars in energy costs while cutting pollution
• The situation among Midwest pulp and paper mills reflects choices
facing energy-intensive manufacturers throughout the U.S.
• New corporate and government policies can lower the hurdles
preventing companies from fully realizing available costs savings and
emissions reductions

24. Thanks!
Nate Aden
naden@wri.org
James Bradbury
jbradbury@wri.org
For more information, please see the full report at: http://www.wri.org/publication/energy-
efficiency-in-us-manufacturing-midwest-pulp-and-paper