Valmet Sundsvall-Site

Welcome to Valmet
in Sundsvall
Program
Meeting with investors in Sundsvall, September 10, 2015
09:35 am Coffee and welcome

09:50 am Presentation and discussion
Stefan Mattsson VP, Fiber Business
Lars Eklund VP, Service Business
Rickard Andersson VP, Biotech & ES Business
12:00 pm Lunch
12:40 pm Pulse & Innovation
01:10 pm Site Tour
03:05 pm Coffee and wrap-up
03:20 pm Transportation to SDL Airport
04:20 pm Departure to Stockholm
2 September 10, 2015 Sundsvall site visit | Stefan Mattsson, VP Fiber Processing
INDEX
Safety first
Main office
Service
Workshop
Fiber Technology Center
Safety High-viz
glasses vest
You will be given

visitor´s personal
protective
equipment. These
are mandatory in
our laboratory and
production facilities.
Smoking is not
allowed in our
premises.
The use of cameras or
video equipment is
prohibited.
(Special permission
can be given)
A Production Workshop
B Main Office
C Technology Center If the emergency alarm rings or you
D Service Center are ordered to evacuate the building,
stay with your host and follow his/her
instructions:
• Follow the exit signs and take the

shortest route outside
Technology
Center
• Do not use elevator and walk
Production
Workshop orderly in the stairs
• Your host will guide you to

Service
Center evacuation point. Your host will
inform when it is permitted to leave
the evacuation point and give then
any further instructions
Main Office
Valmet Sundsvall
Located in Sundsbruk
 410 employees
 Technical experts in Pulping & BIO
 Office
 Fiber Technology Center
– Pilot facility
– Laboratory, Bleaching & Analysis
 Service Center
 24–7 Services
The workshop
 Specialized in high alloy materials, complex welding and machining

 Highly skilled own manning, totally 92 persons
 Large network of external resources for maximized flexibility (+150)
 Integrated development with product design and project departments
The Fiber Technology Center (FTC)
 The cornerstone in our ambition of continuous product development

 Close co-operation with universities in Sweden
– Chalmers
– Kungliga Tekniska Högskolan (KTH)
– Mid Sweden University
Contents
Pulp session, Sept 10, 2015
1 Pulp & Energy business line in brief
2 Global pulp market
3 Pulping in a nutshell
4 Process solutions
5 Summary
Valmet Pulp & Energy
business line in brief
Pulp and Energy business line in brief
Net sales (2014)

World-class pulp mill offering and
complete delivery capability. 6%
23%
Global technology and know-how
leader in bioenergy and multifuels.
25%
A natural growth platform for 43%
environmental systems and 3%
biomass conversion technologies. 57%
2014 figures
Orders received EUR 1,344 M
Net sales EUR 956 M 42%
Employees 1,737
Position Pulp North America

#1-2 Pulp Energy South America
#1-3 Energy EMEA
China
Asia-Pacific
Pulp and Energy offering
A range of solutions and technologies fulfilling our customers’ needs
Suzano Mucuri pulp mill in Brazil Valmet’s CYMIC boiler at Stora Enso Langerbrugge First demonstration scale integrated pyrolysis unit, Fortum
Pulp Energy Biotechnologies and

Environmental Systems
• Wood and pulp handling • Heat and power generation • Biotechnologies
- Wood handling, fuel handling, - Fluidized bed boilers, bio-grate - Lignin recovery, pre-hydrolysis,
pulp drying boilers, biomass and waste pyrolysis, bio-coal
gasification
• Fiber processing • Air pollution control
- Boiler islands and small power
- Cooking systems, mechanical - Flue gas cleaning and heat
plants
pulping, complete fiber lines recovery for boilers
- Odor and pulp mill balance
• Recovery control
- Recovery boilers, evaporation - Environmental systems for
systems, recovery islands biotechnologies
SERVICES
Pulp Business
Stefan Mattsson,
VP Fiber Processing Business unit
Site visit to Sundsvall

September 10, 2015
Global pulp market
Packaging and tissue are driving the total paper
and board demand growth
1,000 tons Global paper and board demand
500,000
450
450,000 411
395
400,000
350,000
300,000
250,000
200,000
150,000 52% 55%

48%
100,000
50,000 8% 9%
7%
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Tissue Packaging Others
Packaging: containerboard, cartonboard and other paperboard
17 September 10, 2015 Sundsvall site visit | Stefan Mattsson, VP Fiber Processing Source: RISI
Growth in packaging and tissue demand is
expected to continue while printing & writing and
newsprint are declining
Paper consumption (Million tons)
220 CAGR 1999–2014 2014–2019F
200
180 Containerboard +3.3% +2.4%
160
140
120 Printing & Writing +0.4% -0.3%
100
80 Cartonboard +2.6% +3.0%
60
40
20 Tissue +3.5% +3.7%
0
2003
2005
1995
1997
1999
2001
2007
2009
2011
2013
2015F
2017F
2019F
Newsprint -2.3% -3.5%

Newsprint Printing & Writing
Containerboard Cartonboard
Tissue
World pulp demand
Fiber substitution by high quality virgin fiber wood pulp continues to grow
Paper making fiber demand

Million tons • World paper-making fiber demand is
500
459 growing
450 421
404
400 • Virgin fiber demand is increasing
350
• The share of market wood pulp is
300
increasing
250
200 • Industry offers different types of

150 investment opportunities in different
100 markets
168 179
50 164
0
• New bio-pulp mill concept offers
2010 2015e 2019e opportunities especially in Europe
Virgin pulp Non wood pulp Recovered paper and North America, and also in
Latin America
19 September 10, 2015 Sundsvall site visit | Stefan Mattsson, VP Fiber Processing Source: RISI 5 year forecast July 2015
Virgin fiber demand is concentrating on
BHK, fluff and dissolving
Integrated and market BSK and BHK demand Growth estimates
Million tons
120
BHK
100 2.0%/a or 1.3 million t/a
80
60
BSK incl. fluff
1.2%/a or 425,000 t/a
40
20 Fluff
0 3.8%/a or 225,000 t/a
2014 2015 2016 2017 2018 2019
BSKP BHKP
BHK drivers BSK drivers

• Growth of tissue paper and high-quality • Growth of tissue paper throughout the
boxboard world
• Growing market share of woodfree • Steady rise in fluff pulp demand
papers relative to mechanical papers in
P&W segment
• Advances in paper machine design, and
more extensive use of BEK in woodfree
papers
Fluff pulp market
Almost all BSK fluff pulp is sold on the market to consumer product
companies for conversion to absorbent products
Fluff pulp capacity by region
• World fluff pulp demand is approx.

5.6 million tons, growing steadily
by about 3.8%/a or about 225,000
t/a up to 2019
• Capacity expansion outside USA is

underway
Industry trends
• Growth in disposable diapers in the developing world and increasing usage of incontinence
products in the developed world as population ages
• Swing capacity between fluff and BSK pulp production
• Brazilian BEK producers exploring options for using BEK in absorbent products
21 September 10, 2015 Sundsvall site visit | Stefan Mattsson, VP Fiber Processing Source: RISI, news
Dissolving pulp market
End uses of dissolving pulps
High • In 2015, demand estimate is 6.9 million
alpha
tons.
pulps
33%
Acetate • Present capacity is estimated to about
Low 9.0 million tons.
Ethers alpha • Estimated demand of 9.9 million tons in
Viscose
pulps
2025, with 3.7%/a growth in 2013–2025
67%
requires about 11 million tons of capacity,
Majority of the growth i.e. +2Mt, mainly through conversions.
Purity is an important
characteristics of dissolving pulp Global demand of dissolving pulp
Common end uses
Viscose Textile industry, non-wovens,

cord and industrial yarn,
cellophane, sausage skin,
sponges
Acetate Cigarette filter tows, LCD films,
high quality plastics, acetate
yarn, fibers
Ethers/others Food industry, pharmaceutical,
cosmetics, special paints,
binders and glues, artificial
leather, explosives
22 September 10, 2015 Sundsvall site visit | Stefan Mattsson, VP Fiber Processing Source: Pöyry, Feb 2015
World market pulp capacity
Majority of the investments occur at market pulp mills
Million tons
80 76
70 67
61
60 Africa,
Middle East
& Oceania
2% North
50 Africa,
Middle Latin America
East & America 23%
Oceania 36%
North
40 2% Latin
America
America Europe
30% 29% 24%
Asia
30 16%
Asia Europe
14% 25%
20
10
0
2009 2014 2019
23 September 10, 2015 Sundsvall site visit | Stefan Mattsson, VP Fiber Processing Source: RISI 5 year forecast July 2015
Top market pulp producers
Top 5: 27% market share; Top 10: 43% market share
Fibria 5.9
APRIL 3.8
Arauco 3.7
Suzano 2.9
CMPC 2.6
Koch Ind. (GP) 2.5
Paper Excellence 2.2
UPM 2.2
Metsäliitto 2.0
Weyerhaeuser 1.9
IP 1.7
Eldorado Cellulose 1.7
0 1 2 3 4 5 6 7
Million tons
24 September 10, 2015 Sundsvall site visit | Stefan Mattsson, VP Fiber Processing Source: RISI, news
Future pulp capacity changes offer good project
opportunities
New mills will be constructed in Latin America, Asia and Finland. New mid-
sized installations are in demand in Asia-Pacific. Upgrades, rebuilds and
conversions are done in the mature markets of North America and Europe.
Announced market pulp capacity expansions, 1000 t
Europe
North America 4,000
4,000 3,000
3,000 2,000
2,000 1,000
0
1,000
-1,000
0 2014 2015 2016 2017 2018
-1,000 onwards
2014 2015 2016 2017 2018
onwards
Asia/Africa/Oceania
4,000
Latin America
3,000
4,000
2,000
3,000
1,000
2,000
0
1,000 2014 2015 2016 2017 2018
0 onwards
2014 2015 2016 2017 2018
onwards
25 September 10, 2015 Sundsvall site visit | Stefan Mattsson, VP Fiber Processing Source: RISI, July 2015
North American fiber production
88% of the sites in the North America have over 30 years old pulp line(s)
Market pulp and integrated mills
18,000,000
Number of sites 33
16,000,000
37
14,000,000
12,000,000
Production t/a
30 20
10,000,000
20
8,000,000 17
16
6,000,000
16
4,000,000
11
2,000,000
3 5
0
0
0-4 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-60 60+
Technical age of pulp lines at site, years
26 September 10, 2015 Sundsvall site visit | Stefan Mattsson, VP Fiber Processing Source: FisherSolve
Conditions for pulp investments
Projects have realized in locations where implementation and operating risks
are acceptable. In addition, investors benefit from a sustainable competitive
advantage
 General cost levels
– Strong USD relative to most currencies has
reshaped the cost structure of pulp industry, USA Scandinavia
with South America and Indonesia pulp mill Germany
projects becoming more interesting investments Austria
Japan
 High quality pulp – low total production
costs
 A lot of land can be planted in Indonesia Global competitiveness Chile
Ease of doing business China
– Restrict project implementation in highly Credit policy
developed economies
 Good business environment Brazil Uruguay

– Needed for capital intensive investments Russia
– Country risks, credit availability Indonesia
– China’s economy will remain one of the key
global drivers
 Infrastructure & Logistics

– Distance to raw material and to the markets Political risk
Corruption
 Technology
– Relative few suppliers offering full technology
packages
– Bio-concepts
 Ready installed base

– North America offers strong rebuild market
27 September 10, 2015 Sundsvall site visit | Stefan Mattsson, VP Fiber Processing Source: Pöyry, RISI, news
Pulping process
in a nutshell
Pulping process
Not
included FiberLine
in Valmet Today’s Focus
Scope
Valmet Process solutions
Chemical pulp - BSK / BHK / BEK/ Dissolving
Valmet FiberLine
Proven large scale efficient and reliable
 High yield >54.5% with Compact Cooking
 Maximized power to the grid

– +9.6 MWh = 4.4 Million USD/a @ 1.75MT/a
 Benchmark in water consumption and effluent

volumes with TwinRoll press
– Saving 10 million m³/a @ 1.75MT/a
 Low maintenance cost with TwinRoll press

– USD 8.5 million savings/10 years @ 1.75MT/a
 Good platform for Service growth and profit !

The modern Valmet kraft fiberline
Layout principle
Pulp washing
TwinRoll™ Evolution - probably the best pulp washer in the market
Will be looked at
during the Site
tour
 Easy to install
 High capacity
 Reliable and flexible
 Optimized operation
 Low pressure demand
 Suitable for gravity feed
 Minimized operational and maintenance cost
~1,300 sold to date
Fiberline machine products
More than 100 various machine products
 Digesters
 Refiners
 Washers
 Screens
 Filters
 Mixers
 Tower equipment
– Scrapers
– Agitators
 Feeders
 Ozone reactors
 MC Pumps (Sulzer)
 Reactors
Machines are
 Kilns good for service
business !
Summary
Pulp summary
 Good Market opportunities

- New Mills
- Rebuilds
- Upgrades
 Well received products

- CapEx
- OpEx
- Sustainability
Pulp initiatives going forward
Customer Capitalize on Northern hemisphere softwood opportunities

excellence
Leader in Significant R&D investments focused in increasing cost competitiveness

technology
and Further commercialization of new offering of Pulp and Energy business line targeting in
innovation >20% of orders received from new offerings
Savings through efforts in the field of procurement, and through further development in
Winning team
the utilization of cost competitive countries opportunities
Excellence Continued focus on lowered cost of product quality

in
processes
Innovation and renewal
Lean Operations in all we do

Unified local presence close to customers, suppliers and partners
Winning Focus on global processes and competence development
37
team Being a good place to work at
September 10, 2015 Sundsvall site visit | Stefan Mattsson, VP Fiber Processing
Services
Lars Eklund,
VP Performance Parts

September 10, 2015
Contents
Services session, Sept 10, 2015
1 Services
2 Service for Fiber customers
3 Performance parts
Services
Services business line in brief
Empowered to serve the pulp, paper, and energy industries
Net sales (2014)

Sustainable services for energy
production, fiber processing, paper, 11%
12%
board and tissue production lines 19%
7% 28%
Committed to sustainability,
customers’ profitability, optimized 15%
production and maintenance, long-
term partnership
7%
2014 figures 29%
Orders received EUR 1,055 M 25% 47%
Net sales EUR 989 M
Employees 5,230
Market position Rolls and Workshop Services North America
#1-2 Services Mill Improvements South America
3,800 pulp and paper mills Performance Parts EMEA
worldwide, of which over 50% Fabrics China
purchase services from Valmet Energy and Environmental Asia-Pacific
400 customers outside the paper
industry
Services competitors and market position
Room for growth
EUR
Valmet’s market share is ~13% 7.5 ~2%

p.a.
billion
Maintenance
outsourcing
competitors Competitor type
Valmet
Local Global competitors with
competitors full offering
Global Product specific

competitors competitors
with full
offering
Local competitors
Product specific
main competitors
Maintenance
outsourcing competitors
Valmet Services
Leading technologies and expertise close to customers
Increased Improved Reduced

reliability performance costs
Global presence with

comprehensive offering
Local service shops and service experts Permanent presence at customer sites
Long-term partnership with focus on quality and safety improvements
Products and Maintenance Process Maintenance Production Analysis &

components and repair consumable outsourcing improvement consulting,
programs programs projects remote data
management
Service for Fiber
customers
Services growing the fastest in Pulp and Energy
Pulp and Energy

• Fiber
• Chemical recovery
• Power plants
40%
of the world’s pulp
is made with Valmet machines
New capacity has higher service potential
Million tons
80 76
70 67
61
60
Africa, Middle
East & Oceania
2%
50 Africa, Middle
East & Oceania North
2% America
Latin
40 America 23%
North 36%
Latin
America America Europe
30 30% 29% 24%
Asia
16%
Asia Europe
20 14% 25%
10
0
2009 2014 2019
Source: RISI 5 year forecast July 2015

Pulp price has an impact on Services
Expansion of service capacity in growth areas
New Service centers and

expansions of existing
 Araucaria, Brazil
– Full scope service center for Fiber
– Open 2012
– Logistic center 2016
Zibo  Jakarta, Indonesia
Wuxi
– Full scope service center for Fiber
– Open 2016 (12)
Jakarta
 Expansion in Wuxi, Zibo and
Araucaria
Shanghai, China,
– New resources in existing centers
– Expansion of logistic centers
– Screen basket expansion 2014
Performance parts
Services offering
Comprehensive life-cycle services offering
Rolls and Mill Performance Fabrics Energy and

Workshop Improvements Parts Environmental
Services
• Rolls • Upgrades • Spare parts • Paper machine • Services for
• Roll covers and • Components • Processes Parts clothing evaporation
maintenance • Filter fabrics plants, power and
• Expert services recovery boilers
• Workshop and environmental
services equipment
A selection of parts
Parts 100,000
deliveries yearly
eServices
1.1 60,000
Orders per year
million parts
One order every
6 min
Parts market size is big and growing Financial
Market and key competitors
Local
competitors
Uniqueness of
parts business and
development areas
Different type of parts, different drivers
Increased Reduced Improved

reliability costs performance
Convenience - speed Performance - savings
Spare parts Process parts

Spares are reliability (convenience) driven
Supported by 4 global logistic centers
Increased Reduce Improved


Speed is critical for spares growth
 Actions for speed

– Quotation and order handling in local
service centers
– 4 global logistic centers with local
sourcing and global supply
– Tailor-made customer Inventory
solutions
– IT tools for customer easiness and
internal efficiency
Easiness
On time
Speed
New IT tools for enhanced customer experience
Tools launched and implemented in 2014 and 2015
Internal efficiency – faster response Simplify life for customer

Stream Value based eParts book eServices
pricing (VBP)
• Global search and • Pricing based on • Electronic • On-line access to

communication value drivers like customer machine parts information
tool complexity, documentation - Price & availability
• Linking all Service customer value & • Hot-links to - Part details
Centers competition eServices • 1,100,000 articles
• Improved price
quality, efficiency
and customer
trust
Process parts performance driven
Agreement based business
Increased Reduce Improved


Process parts
Energy, capacity and production cost focus
 New production capacity

– Parts center established in Shanghai,
China, doctoring and screen baskets
– New capacity in added in NA, coater
blades
 R&D initiatives
– Focus on product renewal
– Additive manufacturing, 3D
 Local technology competence

– Sales by technology focus
 Focus on agreements
– Fexible offering model
Cost Energy Capacity
Creating customer value via flexibility
Make your own mix of technical scope, stocking, pricing and technical support
Technical scope Inventory management Pricing agreement Valmet support
Stock at customer
Process parts Results based model Expert services
site
Reserved stock at Production based Process expert

Fabrics
Valmet model support
Deliveries based on Shutdown /

Roll covers Flat rate TCO model
prediction / demand maintenance support
Inventory
Invoicing per usage /
Spare parts management
transaction
support
eServices
Summary
Performance parts summary
Service and performance parts are

growing
New service capacity for Fiber customers

in Brazil, China and Indonesia
Investments and development in

process parts supporting growth targets
Speed and convenience are main drivers

for spares growth
3D printer for metal can change the game

Additive manufacturing – 3D printing of parts
Will change the game
Biotech &
Environmental Systems
Rickard Andersson,
VP Biotech and ES

September 10, 2015
Contents
Biotech & ES session, Sept 10, 2015
1 Global biotechnologies market
2 Valmet’s biotechnologies offering
3 Global environmental systems market
4 Valmet’s offering in environmental systems
Summary
Global biotechnologies
market
Biotechnology drivers create new demand
Drivers may differ somewhat depending on technology and market
In general
 Strong market demand on bio based
products
 Ethanol and non-fossil based
chemicals and materials market
demand
 Making use of waste streams by
adding value
 De-bottlenecking of existing plants
 New products and revenues from
existing processes
 Incentives and political decisions
70 September 10, 2015 © Valmet | Rickard Andersson, VP Biotech & ES

Our traditional business and customers form
sound foundations for our biotechnologies
Pulp Mills Proven Solutions for Industry
• Number one in chemical pulping
• Decades of experience and Biofuels
references in wood handling • Gaseous fuels
Waste
systems, cooking systems,

• Liquid fuels
complete fiber lines, evaporation Wood
systems and recovery islands as • Solid fuels
well as odor control
Bio-based chemicals &
materials
Heat and Power Generation

• Monomers and Agricultural Recycled
polymers residues paper
• Largest boiler and plant supplier • Composites
in biomass and waste sector
• Extensive experience in fluidized • Fine and specialty Energy
bed boilers, bioGrate boilers and chemicals crops
air pollution control systems

Bio-based products are any products – fuels, chemicals,
materials – made from renewable resources
Plant material and municipal waste – biomass – are turned into electricity, fuels,
intermediates for the chemical processes and materials
Biofuels Bio-based chemicals Biomaterials
Bioethanol (1G and 2G)1  Replace chemicals  Materials made from
Biodiesel (1G and 2G)2 derived from fossil petrochemicals can be
petroleum replaced with materials
 Replace fossil raw made from biomass
material based  Reduce pollution
petroleum  Increase efficiency  Useful and
biodegradable
 Decrease the  Limit the hazardous alternatives
greenhouse gases materials in the
manufacture and use of  Reduction of fossil
chemicals based products
 Utilization of byproducts
and residues
Valmet serves the emerging biotechnologies markets

Our focus is on lignocellulosics and waste raw materials
1) First generation biofuels: produced directly from food crops such as corn or sugar cane.
2) Second generation biofuels: produced from non-food crops such as wood, organic waste, food crop waste, specific biomass crops

Examples of bio-based products
and main players
Biofuels Bio-based chemicals Biomaterials
Sugar platform /
Commercial products (of
fermentation process)
Products Products Products
Bioethanol (2G) Aspartic acid, Algal oils, Bio-based plastics, as a product
Biodiesel (2G) Farnesene, Itaconic acid, example
Isobutanol, Lactic acid, Main material PET
N-butanol, Succinic acid,
Polyhydroxyalkanoates, 1,3-
Propanediol
Commercial scale producers Key players Number of players such as
73 September 10, 2015 © Valmet | Rickard Andersson, VP Biotech & ES Source: Pöyry, company web pages, news,
Biotechnologies market
• Emerging market for  Partnerships, mergers and

Market Industry
converting biomass into acquisitions proceed in search of
drivers fuels, chemicals and trends synergistic know-how, value chains
materials and value networks, business
• Growth of energy, concept, process and equipment
transportation, and optimization
chemical industry  Huge number of companies; some
sectors fail, others continue to move
• De-bottlenecking and steadily towards commercialization
making value from waste  Conversion of biomass to
and residues chemicals and materials instead of
• Volatile due to changes or in addition to fuels in search for
in regulations and oil economic viability
price  Location at the source of feedstock
to reduce transportation costs and
other costs associated with
feedstock aggregation
 Alternative feedstocks, e.g. waste
or gas

Valmet’s
biotechnologies offering
Valmet’s biomass conversion technologies
Penetrating the market in steps through references
Facts
 Commercial scale lignin separation installations in
operation since 2013
 Several prehydrolysis pilot scale deliveries. First
demonstration scale plant in operation in 2012.
Commercial scale being offered.
 Bio-oil pilot production since 2009, first demonstration
scale plant in operation in 2013
 Commercial scale gasification of biomass and waste
 LignoBoost system for extracting lignin since 2011
from kraft black liquor
 Solutions for prehydrolysis of biomass
to sugars and lignin for further refining to Results
 New revenue streams for pulp mills and biomass
fuels or chemicals power plants
 Complete production lines for steam  Reduction of emissions
exploded black pellets and revamps of  From fossil fuels to utilization of sorted waste and
biomass
existing white pellet plants
 Alternative renewable fuels
 Pyrolysis solutions for bio-oil production
 CFB gasification technologies for
biomass and waste gasification

Valmet is committed in R&D: We continue to
move our customers’ performance forward
Ideas Feasibility Laboratory Pilot Demonstration Commercialization
Close co-operation with our customers Increased production

efficiency and availability
Our Wide and synergistic competence base Improved cost
customers’ competitiveness
present and
Widened raw material
future needs Extensive global research network
drive our
base and fuel mix
R&D Maximum value from
forward Own R&D centers with pilot operations renewable raw materials
Minimum environmental
Long track record in development and scale-up impact

Long-term R&D cooperation with partners
produces results – pyrolysis as an example
2007
Technology 2010
1980’s development consortium Combustion tests 2013 -
The first laboratory - Valmet, UPM and VTT
studies by VTT R&D projects on
Planning for a
The first cold model pyrolysis oil
commercial-scale
tests at Valmet’s R&D upgrading
demonstration plant
Center in Tampere
1990’s 2009 2012

Deal to construct
The first pyrolysis Fortum joins the Joensuu bio-oil plant –
R&D projects in development consortium Fortum and Valmet
Finland
Oil production 2013
at Valmet’s Produced
R&D Center Commissioning
bio-oil
= heating
of Fortum’s
for 10,000 houses in Joensuu plant
cold Nordic climate

LignoBoost™
– Lignin
How can pulp production be increased when
lignin is extracted from black liquor?
 Lignin has a high heating value

(about 26 MJ/kg DS) and it creates
~35% of the dry solids content in
the recovery boiler
 The recovery boiler is limited by the
heat load and many mills run their
boiler close to the maximum limit
 When lignin is removed prior to
combustion, the dry solids content
and the overall heating value of the
black liquor is decreased
 The thermally off-loaded recovery
boiler can then take a larger flow of
black liquor
80 September 10, 2015 © Valmet | Rickard Andersson, VP Biotech & ES Source: RISI
Lignin is a versatile product
Applicable as a fuel or intermediate for chemicals and materials
 Lignin is structurally and

chemically very complex high
molecular weight material
containing different aromatic
building block components Fuel Binders ,
 The variability of structure will Composites,
Dispersants
naturally lead to mixtures of
products when converting lignin
 The exact details of biomass feed
and lignin recovery process will
result in lignins of differing Phenols, Benzene, Activated carbon,
Toluene carbon fibre
properties in e.g. molecular weight
distribution, solubility, number of Photos: Compliments to Innventia
free phenolic, hydroxyl and
carboxyl groups etc.

Lignin separation as part of pulp mill process
LignoBoost lignin separation process connected to pulp Domtar Plymouth,
mill chemical recovery North Caroline, USA
– Lignin can be utilized as renewable fuel replacing fossil fuels and
as new bio-material for many industries
Domtar Plymouth, USA

 Annual yield of 25,000 tons lignin
– Decreased use of fossil fuel
– Increase of pulp production capacity by 5% and efficiency by off-
loading the recovery boiler Stora Enso Sunila, Kotka,
– Domtar sells recovered lignin as BioChoiceTM product Finland
Stora Enso Sunila mill in Finland

 LignoBoost plant produces 50,000 metric tons of dried
lignin per year

Bio-based
Fuels,
Chemicals
and Materials
We contribute to bioethanol and bio-based
chemicals with our proven solutions
Biomass Pre- Enzymatic

Biomass Separation Fermentation
handling hydrolysis hydrolysis
Automation
Lignin
Evaporation Distillation
separation
Power
plant Pelletizing
Molasses Lignin pellets Ethanol

Valmet Partner

Production of climate-friendly bioethanol
from agricultural waste
Second generation bioethanol Germany’s largest second
produced from agricultural waste generation bioethanol plant Case
Clariant, Germany
Up to 1,000 tons of cellulose ethanol
Renewable fuel for over 1,000 cars running with
from around 4,500 tons of wheat straw 100% bioethanol
Key results
 Biofuel cuts CO2 emissions by about
95% compared to fossil-based

Steam
Explosion –
Bio coal
Steam explosion technology for bio coal
 Zilkha Biomass Energy LLC and Valmet have signed a collaboration

agreement in the field of steam explosion. The parties will work together to
develop a joint global offering.
 Steam exploded bio coal provide a number of benefits compared to traditional
wood pellets
– Improved durability, water-resistance, higher energy content, lower shipping costs,
and reduced dust problems compared to other types of bio-based pellets.
Material Steam Drying Densification

handling Explosion Bio coal is principally
used for replacing
fossil coal in heat and
power generation

Integrated
Pyrolysis –
Bio-oil
Biotech and Environmental Systems case
example: Additional revenue from bio-oil
Fast pyrolysis of biomass integrated Pyrolysis plant
to a fluidized bed boiler Fortum, Joensuu, Finland Case
Production of bio-oil by pyrolysis from
forest residue and other biomass Produced bio-oil provides heating for
10,000 houses in cold Nordic climate
Renewable bio-oil production of
50,000 t per annum
Key results
 Results in significant reductions in CO2
emissions
 Bio-oil can replace heavy fuel oil in heat
and power generation and might be
further refined to transportation fuel
 Integration provides maximum energy
efficiency

Global environmental
systems market
Environmental systems are part of our traditional
offering with 500 references
 Valmet provides proven
Pulp and energy industries systems to pulp mills
and energy sector
 Valmet has delivered
Air pollution control 500 air pollution control
systems
Flue gas
Odor and pulp Environmental
cleaning and
mill balance systems for
heat recovery
control biotechnologies
for boilers

Environmental systems market
• Very large and growing Energy

Market Industry
global market in air  Industrial Emission Directive (IED) -
drivers pollution control trends
EU
• Tightening emissions – Large combustion plant
legislation and stricter – Medium combustion plant
directives globally – Waste directive
– USA, Europe  Aging power plants, in EU, 45% of
– China biggest power generation capacity is more
market & than 30 years old – APC rebuilds
increasing  Life span thinking of plants
• Aging power plants and  Energy efficiency – heat recovery
pulp mills especially in the Nordics
• Increasing energy Pulp
efficiency  Odorless mill, environmental
acceptance
 Capacity increases - debottlenecking
 Aging pulp mills - ESP rebuilds
 Chemical balance control - sulphuric
acid production

Valmet’s offering in
environmental systems
Extensive offering of air pollution control
systems
Facts
• Complete flue gas
cleaning and heat
recovery systems
• Odor and mill balance
control for pulp mills
• 500 air pollution control
references
 Dry, semidry and wet flue gas cleaning processes for
removal of particular and gaseous emissions
 Condensing scrubbers and heat exchangers for Results
recovering heat from flue gas • Minimum emissions
• Reliable and proven
 SNCR and SCR technology for NOx reduction technology solutions
• Increased plant
 Odorous gas treatment and chemical balance control efficiency
systems for pulp mills processes • Fuel savings

Meeting BAT emission levels with lowest life
cycle cost
Valmet’s scope of delivery Flue gas cleaning
 Selective catalytic NOx reduction CIECH Soda Polska
Case
(SCR) for each boiler
Inowroclaw CHP plant
 Wet limestone flue gas  xxxxxxx
Four pulverized coal boilers, each 140 t/h, built in 1970’s
desulfurization (FGD) by Lentjes
Steam and electricity is used in production of soda
 Take over in 2016 to 2018
Investment in emissions to meet IE Directive requirements
Key results
 Meeting BAT emission levels with lowest
life cycle cost

Summary
Biotech and ES summary
 Valmet serves the emerging
biotechnologies markets
 Our focus is on lignocellulosics and waste
raw materials
 We build on our knowledge base, but
continue the development to fit the
emerging business
 Valmet provides proven Environmental
Systems to pulp mills and energy sectors
 Very large and growing global market in
air pollution control
 Tightening emissions legislation and
stricter directives globally drive the
business

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Welcome to Valmet

09:35 am Coffee and welcome

Lars Eklund VP, Service Business

Rickard Andersson VP, Biotech & ES Business

Fiber Technology Center

You will be given

• Follow the exit signs and take the

• Your host will guide you to

 Specialized in high alloy materials, complex welding and machining

 The cornerstone in our ambition of continuous product development

1 Pulp & Energy business line in brief

2 Global pulp market

Net sales (2014)

Position Pulp North America

Pulp Energy Biotechnologies and

Site visit to Sundsvall

150,000 52% 55%

Tissue Packaging Others

Packaging: containerboard, cartonboard and other paperboard

Newsprint -2.3% -3.5%

Paper making fiber demand

200 • Industry offers different types of

BHK drivers BSK drivers

• World fluff pulp demand is approx.

• Capacity expansion outside USA is

• Swing capacity between fluff and BSK pulp production

Viscose Textile industry, non-wovens,

Koch Ind. (GP) 2.5

Paper Excellence 2.2

Eldorado Cellulose 1.7

 Good business environment Brazil Uruguay

 Infrastructure & Logistics

 Ready installed base

 High yield >54.5% with Compact Cooking

 Maximized power to the grid

 Benchmark in water consumption and effluent

 Low maintenance cost with TwinRoll press

 Good platform for Service growth and profit !

 Good Market opportunities

 Well received products

Customer Capitalize on Northern hemisphere softwood opportunities

Leader in Significant R&D investments focused in increasing cost competitiveness

Excellence Continued focus on lowered cost of product quality

Lean Operations in all we do

Site visit to Sundsvall

2 Service for Fiber customers

Net sales (2014)

Valmet’s market share is ~13% 7.5 ~2%

Global Product specific

Increased Improved Reduced

Global presence with

Long-term partnership with focus on quality and safety improvements

Products and Maintenance Process Maintenance Production Analysis &

Pulp and Energy

Source: RISI 5 year forecast July 2015

New Service centers and

Rolls and Mill Performance Fabrics Energy and

One order every

Market and key competitors