TECHNO-ECONOMIC ANALYSIS OF BIOREFINERY PROCESS OPTIONS FOR MECHANICAL PULP MILLS

Whereas the chemical pulp sector has received significant attention for its potential for transformation to the forest biorefinery, the case of integrated newsprint mills incorporating various forms of mechanical pulping has been addressed to a far lesser extent. This is at least in part because mechanical pulping process yields are much higher than those of chemical pulping, resulting in lower potential for raw material feed to the biorefinery plant. However, the need for transformation in many newsprint mills is critical, especially considering the decline in newsprint demand over the last decade. The transformation approach for newsprint mills will be distinct from that of chemical pulp mills; many must consider exiting the newsprint manufacturing business completely as they transform, while some more efficient newsprint mills will aim to improve their competitive position further by implementing a biorefinery while continuing to manufacture newsprint over the long term alongside new products. With integrated biorefinery processes, mills will seek both to reinforce their core business and at the same time to diversify their product portfolios by addressing technological as well as market risks. This paper presents a techno-economic evaluation of three different biorefinery strategies that are appropriate for newsprint mills. Various success metrics are calculated, including overall capital expenditure and internal rate of return, but also metrics that consider the short-term viability of the retrofitted newsprint mill facility. Strategic assessment should consider the ability to reduce newsprint manufacturing costs, the ability to implement the biorefinery process incrementally to mitigate technology risk, and the ability to develop markets for value-added bio-products over the long term.