BCTMP study starts at Norske Skog Saugbrugs

A project for the future

www.norskeskog.com

A well invested plant

➢A large producer of SC magazine paper

➢ 200 000 t/y of paper on 2 PM
➢ PM4 100 000 t/y
➢ PM5 100 000 t/y
➢ PM6 260 000 t/y (landslide April 2023)

➢ Strong efficiency development

➢ Focus on new paper and fiber products
➢ Great track record in continuous improvement
➢ Material energy efficiency last 10 years
➢ Continuous industrial development
➢ Well invested mill through decades
➢ Leading integrated mechanical pulp mill
➢ Low CO2-footprint
➢ Effective wastewater treatment plant

What will we build?

Exploit existing infrastructure – new BCTMP-process plant

Competitive advantages

- Low capex and operational costs

➢ Effective fibre processing and reuse of existing equipment and infrastructure
- ➢ TMP-fibre processing, bleaching and washing process
➢ PM6 bleach plant
➢ Low operational costs and chemical consumption
➢ Benchmark in energy efficiency
➢ Effective refining
- ➢ High pulp strength
- ➢ Good utilization of raw material
- ➢ High bulk with minimal shives content
➢ Four washing stages gives clean pulp
➢ Optimal bleaching process providing good brightness and lower costs
➢ Automated finishing processes

Why do we invest in BCTMP?

➢A new BCTMP (Bleached Chemi-ThermoMechanical Pulp) plant at Saugbrugs will produce and sell products to a growing market for packaging and hygiene articles.

➢The sale products will have favorable cost base due to low investments and the utilization of existing production equipment and infrastructure.

➢BCTMP production will be profitable and secure Saugbrugs' future in a growing market.

➢Good location, high expertise, well-developed cooperation with forest owners, and low emissions will provide BCTMP at Saugbrugs with competitive advantages.

High fibre competence is the key to success

➢ Strong operational competence evolved from R&D-functions
➢ Broad and diverse engineering expertise
➢ Development program to educate more PhD graduates
➢ Many employees hold master's and bachelor's degrees in production, maintenance, and administration
➢ Most process and maintenance operators are recruited with a background as apprentices
➢ The majority of TMP operators have completed certified operator training
➢ Several have developed high expertise in nanocellulose and biocomposite materials
➢ Every year, around 15-20 new apprentices are recruited

Solid results from optimising energy efficiency

Specific energy consumption in fibre treatment down ~45%
Industry leading electrical energy efficiency
ENOVA (state agency) supported investments

Significant increase in regenerated steam from TMP-production
Thermal energy more than 99% from renewable sources
Steam share (tmp and internal bio) increased from 45 to 80%

Solid results from optimising raw material efficiency

Almost eliminated expensive kraft pulp consumption
Increased use of internally produced TMP fibre
Wood consumption at 700,000 m3/y

Fillers replaced with calcium carbonate from Molde
Reduces both cost and chemicals consumption
Increased and improved paper brightness

Large capacity of green energy and

Norways largest bio boiler 70 MW
Fired with bark and sludge
Access to competitively priced demolition wood
Well suited for carbon capture
100% biobased thermal energy for BCTMP

waste water treatment

Biogas production with 2,8 MNm3/y capcity
Long-term delivery contract with AGA
Installed COD removal capacity
- Anaerobic 40 t/d
- Aerobic 60 t/d
- Total 100 t/d
Currently utilizing around 10-20 t/d

Expansion of Norske Skog Saugbrugs' product portfolio - All based on prosessing of fresh fibre

Proximity to many Scandinavian producers of cartonboard and tissue

Low-cost transportation to European markets

Vessel operated by DFDS going Uddevalla/Zeebrügge/Immingham

Combined logistics solution for paper and BCTMP deliveries in one vessel would give a very high utilization rate towards central Europe

Norske Skog Saugbrugs operates its own port in Halden with outbound logistics by truck and boat

Competitive freight cost on truck delivery going south (return freight from Oslo), especially to northern Germany and Poland

Top 10 shipments from Saugbrugs

Just in time delivery to numerous paper customers world-wide

We are competitive, we will invest in BCTMP