What a tree can do innovation enabling a more sustainable future - - PowerPoint PPT Presentation

What a tree can do – innovation enabling a more sustainable future

Jim Biasca, Country manager US operations Stora Enso, Biomaterials division

The renewable materials company – our target

Everything that’s made with fossil-based materials today can be made from a tree tomorrow

9/22/2018 Stora Enso Key Facts 2

Film: What a tree can do

4/5/2016 3

Examples of our solutions replacing fossil-based materials today

EcoFishBox by Stora Enso can replace polystyrene packaging Wooden construction elements can replace concrete in buildings Dissolving pulp can be used for producing textiles Lignin can replace e.g. fossil-based phenol in adhesives Trayforma by Stora Enso can replace plastic in e.g. frozen food packaging

9/22/2018 Stora Enso Key Facts 4

30 countries, 26 000 stories

• A leading provider of renewable solutions
• Some 26 000 employees in 30 countries
• Sales in 2017: EUR 10.0 billion
• Shares listed on Nasdaq in Helsinki and

Stockholm

9/22/2018 Stora Enso Key Facts 5

Stora Enso worldwide

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Countries where Stora Enso has production, plantations, or projects Stora Enso’s markets

Supported by the global megatrends

Major global trends drive the world’s demand for renewable

• materials. Bio-based products are not only reusable, but also

renewable. Growing population Growing middle class Urbanisation Global warming Digitalisation Changing lifestyles Ecoawareness

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Stora Enso strategy

9/22/2018 8

Customer insight

Developing offerings in accordance with customers’ needs to create value and growth, with sales excellence.

Structured processes

Clear roles and responsibilities, standardised and harmonised working methods, operational excellence.

Motivated employees

Focus on inspiring leadership, good communication, performance management, and target setting.

Innovation

Focus on bio-based materials and chemicals, digitalisation, intelligent packaging, and new packaging solutions.

9

Our road to success in the bioeconomy

Stora Enso Key Facts 9

xxxx xxxx xxxx xxxx Introducing new products and services Addressing attractive end-use segments Delivering sustainable profitable growth Generating superior ROCE

9/22/2018

Portfolio aimed at growth

Consumer Board – Expansion of relative market share in profitable niches Packaging Solutions – Selective profitable growth Wood Products – Accelerating growth Paper – Strategy for maximum cash generation

+

Biomaterials – Strengthening current business and creating new profitable growth

+ + +

9/22/2018 Stora Enso Key Facts 10

Biomaterials division is in the heart of company transformation

7/3/2018 11

4 R&D centres 2 new products since 2014 6 strategic partnerships on

innovation

7 digitalisation projects Only 18% of our external

market pulp sales are geared to the graphic paper market

60 countries 1 376 MEUR sales 2016 +13.5% Q3 YOY 2017

Well managed certified renewable raw material

Biomaterials has the widest offering in the market

14.8% ROOC Q3/2017 203 MEUR EBIT

Q1-Q3/2017

5 pulp mills

Finland, Sweden, Brazil, Uruguay

2.15MT market pulp 1 700 employees

22% are women

Our three focus areas

Maximize value from eucalyptus pulp

• Continue to improve production

efficiency

• Improve cost competitiveness in

Montes del Plata Differentiate our Nordic pulp business

• Reduce exposure in softwood
• Grow in fluff and dissolving pulp
• Continue to improve production

efficiency

• Innovate on pulp applications

with current customers Create new platforms for growth

• We build and develop strong

business on:

• Improved pulp properties
• Regenerated cellulose and MFC
• Lignin
• Bio-based chemicals
• Extraction and separation

technologies

8 November 2017 Stora Enso CMD 13

Efficient use of raw material enable us to get many everyday products already today

14

30% of the wood can be used for sawn products. 70% for pulp and paper.

But through innovation we can get out more

7/3/2018 15

Technology platform for extraction & separation

Improved pulp properties Regenerated cellulose & MFC Lignin

Bio-based chemicals

Innovation is key for sustainable profitable growth

• 1. Improved

pulp properties

• 2. Regenerated

cellulose & MFC

• 3. Lignin

Technology platform for extraction & separation

• 4. Bio-based

chemicals

Product platforms

8 November 2017 Stora Enso CMD 16

Platform 1: improving pulp properties for existing products

8 November 2017 17

Pulp

• Hygiene and health, growing by 3.6% per year
• Life expectancy and increased disposable income in developing countries
• Improve fluff pulp properties to increase customer value
• Dissolving pulp to textiles is a 6.1 Mt market, growing 6.8% per year
• The increase of cellulosic fibre in textiles is driven by global brand owners
• Improve quality to be able to differentiate in the value chain

Fluff pulp Dissolving pulp Pulp for specialty papers

Stora Enso CMD

• Flexible packaging, labels, security, décor, among others
• 28 Mt market, growing 1.8% per year
• Fibre improvements, special additives, sustainable coatings & barriers, source

reduction and other innovation opportunities

Source: Smithers Pira, Hawkins Wright

Platform 2: Developing new technologies for using wood fibre in textiles, non-woven and specialty papers

8 November 2017 18

• Participate in the development of new technologies for using wood fibre in textile
• Growing interest from global brand owners increases demand for renewable fibres
• Opportunity to leverage on existing assets to enter this new market
• MFC has potential to be used in specialty papers and non-woven
• MFC is a versatile material with potential to work as strength enhancer, additive,

binder and barrier material

• Stora Enso has a long history in the research of MFC and has a demonstration

plant in Imatra, Finland

Regenerated cellulose MFC

Stora Enso CMD

Source: Stora Enso

Platform 3: Lignin – big opportunities in many markets

8 November 2017 19

Lignin

• Phenolic resins is a 2.8 Mt market, growing at 4% CAGR
• It replaces phenol in adhesives for plywood, OSB (oriented strand board),

laminates, LVL and other wood construction materials

• The carbon footprint for lignin is roughly 1/10 of the carbon footprint of phenol
• Light-weight high performance composites
• 70–80 Kt market, growing at 9–12% CAGR
• Low-carbon-footprint carbon fibre is unoccupied market space
• Substitution of conventional hard carbon anode materials in energy storage,

namely Li-Ion Batteries and Supercapacitors

• Market growing on average by 20% CAGR
• Key applications: portable consumer electronics, power tools, electrical vehicles,

stationary applications and back-up systems Phenol replacement Carbon fibre Energy storage

Stora Enso CMD

Source: Stora Enso, Carbon Composites, IDTechEx, LuxResearch, Markets and Research, Zion Research

Platform 4: Bio-based chemicals replacing fossil-based materials

8 November 2017 20

• Key application is the xylitol (sweetener) market (approximately 120 Kt at 4–6%

CAGR)

• Compared to C6 sugars it still is a rather undeveloped market, mainly due to

lack of pure xylose availability. This is changing with the biorefinery concepts

• Growing interest and developments taking place in the market
• Stora Enso well positioned to be a frontrunner here
• Growing interest in packaging/bottling markets for renewable solutions
• Reduction on carbon footprint and enhanced properties are key target areas
• Market clearly favoring second generation biomass as the raw material source
• It is a very populated market place, thus, strategic alliances will be crucial to win

in this industry

Xylose Bioplastics and intermediates

Stora Enso CMD

C5 and C6 sugars from wood

Source: PwC, Kline and Industry experts

Enocell dissolving pulp

Strategic steps for new business and differentiation

Pulp business - New platforms for growth

Stora Enso CMD 8 November 2017 21

2012

Virdia acquisition

2014 2015 2016 2017 Future growth

• ptions

Montes del Plata hardwood Sunila lignin Innovation centre for biomaterials Partnership with Rennovia B2X demo plant, Raceland USA

2018

Skutskär increased fluff Grow in fluff and dissolving New business from R&D platforms Improve efficiency and increase

• utput in existing
• perations

2019

Enocell dissolving pulp II

Lignin for Phenol Replacement Sunila mill, Finland

The LignoBoostTM process

In the mill

Black liquor out Cooking chemicals and

• rganic substances

H2SO4

Pulp mill

Evaporation Lime kiln

Lignin extracted Dried lignin used as fuel in lime kiln Drying

Lignin opportunities

Potential in phenol replacement

Phenolic Resins 2,8 Mt

Stora Enso lignin production 1,6%

Total phenol market: 9,4 Mt

Other 6,6 Mt

Potential Market Value for Lignin: ~1,7 B EUR 4% CAGR Stora Enso lignin production 50Kt

Benefits of replacing phenol with lignin

Improved environmental footprint A safer alternative Cost efficiency and cost stability

Chemical producers OEMs

Testing lignin throughout the value chain

Resin producer Plywood/ OSB/HPL/LVL Distributors End use application

Microfibrillated Cellulose

Potential of microfibrillated cellulose (MFC)

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• Board and paper – strength, light weight,

source reduction, barrier, surface properties

• Coatings and Adhesives – film formation,

barrier, rheology

• Home and Personal care – texture,

rheological profile

• Value added composites – strength,

processing aid

• Food – texturizing agent, stability, rheology

profile

• Natural product – renewable, biodegradable
• High surface area
• Strength enhancement
• High water retention capacity
• Recovers from high shear quickly
• Biodegradable and non-toxic
• Stable in a wide range of temperatures, pH and

salts

• Film forming properties

Properties Application area examples

Xylose for Natural Sweetener Raceland plant, USA

New renewable products – xylose

• Our plant in Raceland, Louisiana, will extract xylose

from sugar cane bagasse.

• The xylose will be further processed into xylitol, a

natural sweetener.

• Our xylose can be used for example in food or oral

care products.

Doing more with sugar cane waste

• This means that we will turn sugar cane bagasse,

considered as agricultural waste, into a renewable and valuable product.

• Doing more with waste, and more out of the same

agricultural land.

Bagasse to Xylose Process

Fiber de- ashing Hemicellulose extraction Crude xylose refining Xylose polishing Xylose enrichment (65% to 80%) Xylose storage Customers (xylitol producers) Bagasse storage

Partially processed bagasse for glucose and lignin production

From C5 sugars to xylitol market showing 4-6% CAGR

Sources PwC, Kline and Industry experts.

C5 sugars Biomass Liquid xylose 120 Kt market 4-6% CAGR

Xylitol producers Stora Enso technology

Our Output: 7 Kt liquid xylose 4-6 Kt xylitol

End customers

Thank you!