Sustainable performance:
a crucial basis of support

Environmental responsibility

Energy

Mogi Guaçu Biomass boiler
Recent investment which enabled us to increase the mills’s energy self-sufficiency.

Energy consumption has a direct effect on operating costs and can increase exposure to fluctuations in energy supply and prices. Currently, energy represents one of International Paper highest industrial costs. Consequently, the Company is continuously seeking to improve its energy efficiency.

Energy efficiency projects are being developed though investments in innovation and the adoption of the Lean Six Sigma methodology, which focuses on generating efficient results through three pillars: staff training; assertive project development; and the structuring of systems designed to produce sustainable results.

Each IP unit monitors its monthly energy consumption through four indicators, thereby facilitating comparisons among the units: total energy consumed over volume of product produced, purchased energy over volume of product produced, energy cost over volume of product produced, and energy cost over energy consumed. Based on the results, the Company establishes targets, and draws up action and mitigation plans.

One of the initiatives in this area is the replacement of high energy consumption equipment with more energy-efficient versions. In order to reduce energy consumption, IP has invested in the acquisition of more efficient machinery and installed a biomass boiler in the Mogi Guaçu unit.

Despite the issue’s importance, IP does not have a specific energy efficiency policy as yet, although it is included in the Organization’s global sustainability targets.

At Orsa IP, the replacement of energy matrices is part of its strategic plan, including a project to install a biomass boiler to replace the oil and gas boilers. There are also short-term measures to increase energy efficiency.

Energy consumption by the Organization

[G4-EN3]

Scope: IP Mills

Unit Type Renewable (R) or Non-renewable (NR) Consumption (GJ)
2011 2012 2013
Mogi Guaçu
Fuel oil NR 670,232 722,117 693,450
Natural gas NR 3,301,161 3,073,079 171,406
Electricity (public grid) R 981,057 998,559 913,198
Electricity (public grid) NR 71,579 72,856 66,628
TOTAL 5,024,029 4,866,611 1,844,682
Luiz Antônio
Fuel oil NR 813,795 765,295 731,362
Natural gas NR 0 0 0
Electricity (public grid) R 800,503 830,553 812,763
Electricity (public grid) NR 58,406 60,598 59,300
TOTAL 1,672,704 1,656,446 1,603,425
Três Lagoas
Fuel oil NR 0 0 0
Natural gas NR 0 0 0
Electricity (public grid) R 387,554 390,598 391,512
Electricity (public grid) NR 0 0 0
Steam NR 1,004,090 1,014,161 988,286
TOTAL 1,391,644 1,404,759 1,379,858
Biomass R 19,835,458 19,749,102 23,392,828
TOTAL ENERGY CONSUMED 27,923,835 27,676,918 28,220,731

* Electricity is acquired from the public grid whose sources are distributed in accordance with Brazil’s energy matrix.

Scope: Forestry

Unit Type Renewable (R) or Non-renewable (NR) Consumption (GJ)
2011 2012 2013
Forestry
Fuel oil NR 431,678 485,911 264,249
Ethanol R 195,903 1,745 3,019
Electricity (public grid) R 658 831 805
Electricity (public grid) NR 47 57 0
TOTAL 628,286 488,544 268,073

Scope: Orsa IP

Unit Type Renewable (R) or Non-renewable (NR) Consumption (GJ)
2011 2012 2013
Paulínia (Paper and Packaging)
Natural gas NR 757,396 673,146 728,720
Diesel NR 1,241 641 1,069
LGP NR 11,545 9,456 9,054
Low viscosity fuel oil NR 15,295 6,655 13,697
Electricity (public grid) R / NR 241,812 233,774 237,122
TOTAL 1,027,289 923,672 989,662
Franco da Rocha
Natural gas NR 282,375 273,023 265,144
Diesel NR - - -
LGP NR 1,902 1,722 1,639
Low viscosity fuel oil NR - - -
Electricity (public grid) R / NR 87,497 75,376 73,816
TOTAL 371,774 350,121 340,599
Rio Verde
Natural gas NR - - -
Diesel NR - - -
LGP NR 12,168 11,694 10,252
Low viscosity fuel oil NR 77,392 74,825 66,451
Electricity (public grid) R / NR 22,484 26,319 26,496
TOTAL 112,044 112,838 103,199
Manaus
Natural gas NR - - -
Diesel NR 220 121 241
LGP NR 2,124 2,136 1,738
Low viscosity fuel oil NR 37,235 42,368 44,698
Electricity (public grid) R / NR 13,135 16,485 13,353
TOTAL 52,714 61,110 60,030
Suzano
Natural gas NR 112,236 106,637 105,608
Diesel NR - - -
LGP NR 9,884 8,957 9,531
Low viscosity fuel oil NR - - -
Electricity (public grid) R / NR 39,418 38,075 34,013
TOTAL 161,538 153,669 149,152
Nova Campina
Natural gas NR - - -
Diesel NR 19,904 19,568 18,149
LGP NR 3,190 3,258 2,957
Low viscosity fuel oil NR 219,540 230,952 198,337
Electricity (public grid) R / NR 15,497 1,994 17,037
TOTAL 258,131 255,772 236,480

Energy intensity

[G4-EN5]

Year Production Unit Energy Intensity (KWh/t)
2011
Mogi Guaçu 13.07
Luiz Antônio 3.13
Três Lagoas 4.37
2012
Mogi Guaçu 12.87
Luiz Antônio 3,05
Três Lagoas 4.27
2013
Mogi Guaçu 6.13
Luiz Antônio 2.92
Três Lagoas 4.18

Reduction in energy consumption

[G4-EN6]

In addition to having a clean energy matrix, International Paper develops initiatives that help reduce energy consumption. Among the initiatives developed in 2013, the following are particularly worth noting:

Initiative Total energy saved (GJ/year)
5 ton/hour (t/h) reduction in steam consumption by the Luiz Antônio papermaking machine 109,746
1,122 t reduction in oil consumption by the quicklime furnace in the Luiz Antônio mill 44,555
8.5 t/h reduction in steam consumption by the Mogi Guaçu mill 186,568

Scope: Orsa IP

Initiative Total energy saved
The Manaus plant replaced high-energy-consumption air conditioning equipment, which used to result in power outages during peak periods. 354,600 KWh
Maintenance was performed on the Rio Verde mill ‘s capacitor system. 2,371.36 KWh
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