April 28, 2006

New Waste Fuel Boilers to Be Built at Shiraoi Mill
Heavy Oil Consumption Reduced, ROI of 2.1 Billion Yen Per Year

Nippon Paper Industries Co., Ltd.

Nippon Paper Industries Co., Ltd. (President: Masatomo Nakamura) has decided to build new waste fuel boilers that run primarily on coal and scrap wood at Shiraoi Mill (Shiraoi, Hokkaido).
With a capital investment of nine billion yen, construction will commence March 2007 and is slated to be completed in July 2008. The introduction of the equipment is expected to reduce the consumption of heavy oil, the price of which is soaring, by 55,000 kiloliters per year for an ROI of 2.1 billion yen per year.
Paper mills use steam in the manufacturing process and for power generation. Steam is mainly generated by coal boilers, heavy oil boiler and recovery boilers powered by the black liquor stemming from the manufacture of pulp.
Shiraoi Mill has been very reliant on heavy oil boiler. The mill has experienced a decline in the efficiency of its four aging coal boilers and dealing with the high energy costs has presented a challenge.
By introducing high-temperature, high pressure circulating fluidized bed boiler with a high coal ratio, the mill will be able to move from heavy oil to coal and biomass fuels, and increase efficiency by halting the use of the old coal boilers.
As a core company of the Nippon Paper Group and based on the Group's Environmental Charter, Nippon Paper Industries is engaged in sustainable corporate activities that are in harmony with nature. With the goal of reducing emissions of greenhouse gases––which contribute to global warming––and stabilizing profit, the company will continue to make every effort to replace its existing heavy oil boilers with waste fuel boilers that run primarily on scrap wood, scrap tires and RPF and become an oil-less organization in the future.