October 9, 2003

Begins Operating Power Generator from Paper Sludge Incineration

Nippon Daishowa Paperboard Co., Ltd.

Nippon Daishowa Paperboard Co., Ltd., a core member of Nippon Unipac Holding Group, has invested approximately ¥4,300,000,000 in its subsidiary, Nippon Daishowa Paperboard Tohoku Co., Ltd. (Akita City, Akita Prefecture) for the construction of a new environmentally friendly power generator to incinerate paper sludge(PS). The generator has been certified by the Minister of Economy, Trade and Industry, as part of a progressive new-energy introduction project supported by the government. Work on the generator started in April 2002 and a completion ceremony was held on October 7, 2003. It has just begun full-scale operation.
This new anti-dioxin PS incinerating power generator produces electric power using only the heat from the incineration of waste, without depending on fossil fuels. The paper mill generates a large volume of PS, which is incinerated together with scrap tires (cut tires) to produce steam from a waste-heat boiler and generate power from a turbine generator (with a capacity of 14,000 KWH).
Operation of the new generator has enabled Nippon Daishowa Paperboard Tohoku to reduce the power it must purchase by 37,000,000 KWH (representing about 33% of its total purchases) and crude oil consumption by 14,000 kiloliters (about 15.5% of the total), on a per annum basis. Carbon dioxide emissions are also cut by 54,000 tons (about 16% of the total ) per annum. This represents a significant contribution to the prevention of global warming.
Demonstrating a commitment to measures for the environment, the generator is the Group's second waste incinerating power generator to simultaneously combat global warming and waste. In December 2002, Nippon Daishowa Paperboard Yoshinaga Co., Ltd. (Fuji City, Shizuoka Prefecture) began operating a new PS incinerating electric power generator with a generation capacity of 10,000 KWH. That generator collects heat from waste (thermal recycling) by incinerating PS with refused paper and plastic fuel(RPF), generating power and consequently reducing fossil fuel consumption.
The Nippon Unipac Holding Group will aggressively promote the formation of a recycling-oriented society and worldwide environmental protection by taking advantage of unused energy while achieving harmonious coexistence with local communities.
Paper sludge:
Sludge resulting from paper making, containing fine fibers excluded from paper materials, talc, kaoline and other filler, foreign matter included in used paper and other elements
Refused Paper and Plastic Fuel:
Solid fuel formed by combining waste plastic and used paper that is difficult to recycle

New anti-dioxin PS incinerating power generator
New anti-dioxin PS incinerating power generator