MWV (MeadWestvaco) Energy Efficiency

Virginia Governor’s Conference on Energy Bob Fledderman Manager, Emerging Issues

MWV

Business: Packaging (83%), Specialty Chemicals (14%), Land Management (3%) Global employees: 16,000 Global sales: $US 5.46 billion (2012) About 50% from outside US Corporate headquarters: Richmond, VA Paperboard mills: US - Covington, VA; Evadale, TX; Cottonton, AL Brazil - Tres Barras, Santa Catarina India - Vapi, Gujarat; Morai, Gujarat Over 50 manufacturing facilities in 18 countries

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Corporate Energy Targets

•

Reduce fossil fuel use by 25% by 2015

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Reduce CO 2 emissions by 25% by 2015 from a 2010 baseline

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• • • • • • • •

Biomass Boiler & Turbine Generator

Covington, VA Cost $285 million Displaces over 200,000 tons of coal with forest and mill residual biomass (bark, limbs, tops) Combined heat & power (CHP) Capacity 75 MW (electric) Capacity 650,000 lbs/hr (steam) Reduces power purchases Significant reductions in SO 2 , NO x and PM 10 & PM 2.5

emissions.

Can use waste material (WWT sludge) previously landfilled

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Relighting Project

Covington, VA

• • • • • • •

Cost $5.5 million Saves 19,500 MWh/year $950,000 EPACT rebate Improved or replaced over 15,000 fixtures Donated recycled scape fixtures to a local enterprise the employs disabled Continuing to Low Moor, VA facility (additional 1.1 MWh/year savings Considering continuing to Covington, VA Specialty Chemical Plant

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New Printing Press

Lannett, AL

• • • •

Cost $14 million Saves 2,000 MWh/year Reduces waste by 800 tons/year Significantly reduces set-up times

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No/Low Capital Projects

• • • • •

Air system management (fix leaks/low resistance lines) Steam trap management (more frequent checks/maintenance) Additional electric meters (make power costs a front line responsibility) Operating procedures (optimize energy use – winter/summer) Advanced process controls (optimize energy use with automation)

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Process Innovation

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Paperboard light weighting Process change requires 6% less energy per square foot of paperboard

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Energy efficient pulping Process is much more efficient regarding electric power than alternatives

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Product Innovation

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Light weight plastic spray triggers (10% less resin (polypropylene)/replaces steel with plastic) Versaplast All-Plastic Trigger Sprayer

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Replace plastic with paperboard (weighs 40% less) ShellPak Renew (pharmaceutical package)

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Property Assessed Clean Energy (PACE)

• Zero up-front cash investment • Immediate positive cash flow • Long-term financing (up to 20 years) • PACE assessment stays with the property upon sale • Low interest rates • Preservation of borrowing capacity through off-balance –sheet financing

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Thank You

Bob Fledderman Manager, Emerging Issues [email protected]

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