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Keywords: Renewable energy; pulp and paper; biomass; reject. In the last ten years , the inal energy consumption in Indonesia has increased from 79 million TOE to million TOE or grown by an average of 5. On the other hand, Indonesia face of declining fossil energy reserves and can not balance with the discovery of new reserves.

Indonesia has petroleum reserves in about 7. Total reserves of natural gas in about The coal reserves in about Assuming there is no discovery of new reserves, based on the ratio of RP ReserveProduction in , the petroleum will run out in 12 years, natural gas in 37 years and coal in 70 years [2]. Expected future trends in energy development will shift from fossil-based energy into renewable energy. This is based on the fact that fossil energy resource cannot be renewed so that eventually will run out, whereas Indonesia has signiicant renewable energy resources [2].

To ensure the security of energy supply, the government had issued Regulation No. The Indonesian Ministry of Industry has developed an industrial policy through RIPIN with respect to some aspects which have the characteristics and relevance that is strong enough with the national industrial development, such as energy shortages and increased concern for the environment. Energy shortages have been felt, and to ensure the sustainability of industrial development, it is required a policy of energy savings and diversiication as well as greater attention to the development of renewable energy resources which are cheaper and safer.

Mitigation of climate change and energy security are two of the driving forces for increased biomass energy utilization. Green industry is industry that prioritizes the eficiency and effectiveness of the resources usage in a sustainable manner in its production process.

Limited reserves of fossil fuels have encourages the pulp and paper industries to conserve and diversify the renewable energy alternatives that are more environmentally friendly and cheaper. The pulp and paper mills have a large energy potential because they process a massive amount of lignocellulosic material which contain varying amounts of cellulose, hemicellulose, lignin and a minor amount of extractives [4]. These resources are produced in all stages of the pulping and papermaking process, i.

Pulp mill is an intensive energy industry, but they should be able to fulill the energy it self through energy conservation technology integration of various biomass in the processes. Currently, the pulp mill fulill their energy needs by burning the heavy black liquor in the recovery boiler and bark and other wood waste in the power boilers.

Renewable Energy Resources in the Pulp Mills The main types of renewable energy resources generated from pulp mills could be classiied as biomass rejects, foul condensate, black liquor and watewater treatment sludge. Biomass Rejects in Pulp Mills The energy-rich biomass resulting from the pulp industry including bark from the debarking drum, sawdust from the slasher deck, wood waste from wood yard, pins and ines from chip screening, black liquor from digester and sludge from wastewater treatment Table 1 [5].

Rejects generated at pulp mill are knots from deknotting and pulp rejects from ine screening. Bark represents up to kgt of pulp and shares from wood wastes in a pulp mill and have heat of combustion around 20 MJkg dry basis [6]. Pins and ines represent kgt o. Knots represent on unscreened pulp or kgt of pulp [5] and pulp reject from ine screening represent 30 kgt o. Generation of biomass waste in a Kraft mill [5] No.

Waste Yield kgt o. Sawdust from the slasher deck 10 — 30 2. Bark from the debarking drum — 3. Pins and ines from chip screening 50 — 4. Wood waste from woodyard 0 — 20 5. Knots from deknotting 25 — 70 Foul Condensates The energy-rich biomass also come from foul condensate. Chemical pulp mills, including kraft mills generate considerable amounts of condensates during pulp-making process. The condensate streams of concern include the condensates of the multiple effect evaporator, the overlow of the blow heat accumulator, condensates from the digester system, the underlow from the turpentine decanter and condensates from non-condensable gas NCG system.

The VOCs include methanol, ethanol, acetone and terpenes. Methanol is the major VOC in kraft pulp mill. The TRS is formed as the sulphide and hydrogen sulphide ions react with lignin and the methoxyl groups of lignin fragment. Typical pollutant loads and heat combustion of pollutant component from foul condensate from Kraft mill are presented in Table 2 and Table 3. Heat combustion of pollutant component from foul condensate [8] No. Pollutant Net Heat of Combustion kcalkg 1. MeOH 2. CH 3 SH 4.

CH 3 SCH 3 5. CH 3 SSCH 3 Black Liquor Black liquor, spent cooking liquor, is the raw material for the recovery cycle that contains organics from the wood and all of the inorganic chemicals used for deligniication [9]. The organic compounds in the black liquor about 55 and inorganic compounds about 45 [9] with typical higher heating values The organic compounds in the black liquor consists of a compound formed from the sodium salt of lignin, resin and fatty acids, acid from carbohydrates, and other organic compounds contained in the wood.

The inorganic compounds include sodium carbonate, sodium thiosulfate, sodium sulide, and sodium hydrosulide. A pulp mill generates 1. Wastewater Treatment Sludge Wastewater treatment process generates sludge cake, which is consists of primary sludge generated in primary clariier and biological sludge generated in the secondary clariier.

The primary sludge consist of high iber concentration and inorganic substances while the secondary sludge consist of mostly organic debris from biological process and inorganic materials from the nutrients to enhance biological treatment processes. The primary sludge can be dewatered relatively easier. Primary sludge can be dried until moisture content about 70 by a belt press, or until 50 with a screw press [11].

Compared with the primary sludge, the secondary sludge is very dificult to dewater. The presence of intracellular water causes secondary sludge more dificult to be dried by conventional mechanical dewatering. The mechanical dewatering can only reduce the moisture content to about These sludges are generally blended together, a polymer added and dewatered together to a 25—40 dry solid content [12].

The caloriic value of pulp mill sludge about MJkg dry and ash-free basis [13]. Total generation of sludge cake per ton of product varies, depending on the production processes and the wastewater treatment processes. Kraft pulp mill generate sludge cake about 58 kgton of product, sulite pulp mill about kgton of product and deinking pulp mill about kgton of product [13]. The main types of solid waste generated from paper mills could be classiied as rejects from recovered paper, deinking sludges, primary sludges generated in the clariication of process water by kidney treatments and secondary sludges from the clariier of the biological units of the wastewater treatment [14].

Rejects in Paper Mills The paper-recycling process of paper mills generates reject waste in the region of of its raw material, depending on the recovered iber quality and process used in the mill [5]. The rejects from recovered paper composed by impurities such as lumps of ibres, staples and metals, sand, glass and plastics, and paper constituents as illers, sizing agents and other chemicals [14].

The two major categories of rejects are coarse and ine rejects. Coarse reject has its origin in recovered paper pulping and de-trashing, as well as coarse screening. Coarse rejects differentiate into heavy and light coarse rejects.

The heavy coarse rejects consist of metal, stones, not disintegrated paper or wet strength paper, wires, etc. The light coarse rejects consist of iber bundles, plastics pieces, foils, polystyrene, etc. Fine reject comes from process stages like cleaning, ine screening and from the approach low. Fine rejects differentiate into heavy and light ine reject. The heavy ine rejects mainly consist of sand, glass, staples and other metallic ofice waste, discharged from cleaners, as well as from the heavy junk traps of combined screeningcleaning equipment.

The light ine rejects from slot screening or light weight cleaning contain iber broke, spin-ups, stickies, wax, iller etc. The components of reject waste are largely comprised of 51 ibers and 49 plastic [15]. The wet reject material can have a moisture content in excess of 70 [16]. The light coarse reject has the highest possible caloric value of 11 MJkg [5].

One of the limitations of solid waste for energy is bulky and high moisture content which is dificult to be stored, transported and utilized [17]. Deinking Sludge Deinking sludge is generated in the mills producing recycled ibre from recycled paper. Deinking sludge refers to the loat or scum that is evolved from the air lotation process used to remove inks and dyes from the recycled paper ibres [18].

The sludge on a dry mass basis can vary from 20 in a newsprint mill to 40 in a tissue mill. Total suspended solids in the deinking sludge can be categorized into organic matter such as short ibres or ines and inorganic matter such as kaolin, clay, calcium carbonate, titanium dioxide that are resulting from coating materials, ink particles, deinking additives, dyes, other pigment based contaminant and other chemicals used for paper production [12].

De-inking sludge has a high moisture content in the range [19] with typical gross heating value HHV of MJkg on a dry basis [18] and high ash content in the range of depending on the quality of the ibre initially brought into the mill [16]. Wastewater Treatment Sludge Balwaik and Raut [20] have reported that about kg of sludge is produced for each ton of recycled paper. The primary sludge consists of mostly ines of cellulose ibers and papermaking illers such as kaolinitic clay andor calcium carbonate and it is relatively easy to dewater.

The secondary sludges consists of a high microbial protein content, make it dificult to dewater. The secondary sludge volumes are lower than those corresponding to the primary sludge, since most of the heavy, ibrous or inorganic solids are removed in the primary clariier. The secondary sludges are often need to be mixed with primary sludge or other iltration aids to permit adequate dewatering [12].

When compared with coal, paper sludge has very high levels of moisture and volatile matter, but low ixed carbon content Table 4. Due to the high ash content and low caloric value of paper sludge, it is necessary to improve the combustion chamber temperature to enable the co-combustion of sludge with other fuel, to sustain the combustion stability and reduce the emission of toxicants [21]. Proximate, ultimate and heating value of biomass waste from pulp and paper mill No. Proximate analysis adb a.

VM Ash Ultimate analysis adb a. LHV, calg Production of Renewable Energy in the Pulp dan Paper Mills The renewable energy with higher energy density could be produced by steam stripping of foul condensates from digesters and evaporators, pelletization of wood residue and paper reject; hydrothermal treatment and hydrothermal liquefaction of sludge; torrefaction, pyrolysis and gasiication of biomass; and fermentation and anaerobic digestion of sludge see Figure 1.

The renewable energy products are turpentine, stripper off gas SOG, methanol, hydrated sludge, biomass pellet, torriied biomass, bio-oil, syngas, bioethanol and biogas. Turpentine is recovered primarily from the digester relief gases. The gases are conducted to a cyclone separator where liquor carryover is removed, then to a condenser where the steam and turpentine are condensed. Condensate from the condenser is then decanted to separate the turpentine.

The condensed turpentine is immiscible and will loat on the condensed water permitting separation and transfer to storage. Turpentine then overlows to turpentine storage while the water underlow is combined with other contaminated condensate streams for steam stripping [23].

Stripping of Foul Condensates The major foul condensate treatment methods include air stripping and steam stripping. Steam stripping is the dominant condensate treatment. In the steam stripping for BOD, the top of the stripper becomes a distillation column to concentrate the methanol [8].

Up to 95 of the methanol can be removed from the foul condensate and captured in the overhead vapours from the steam stripping process [24]. The stripper-off gases SOG can be transported as a gas, or condensed and transported as a liquid and used to replace fossil fuel in lime kiln, recovery boiler, power boiler or incinerator. Concentrated steam stripper condensates consist primarily of methanol which can be burned as a fuel.

A combination of treatments that include air stripping, steam stripping, distillation and reverse osmosis is described to obtain puriied biomethanol suitable for sale or use on site Figure 2 [7]. Process and system of producing puriied methanol at pulp mills [7]. Pelletization Attempts to overcome the poor handling properties of biomass, i.

Fuel pellets are more uniform in shape, size, energy content, and moisture than the paper mill residues, making them easier to transport, store, convey and need smaller storage space. Their high energy density means they have more energy by volume than paper mill residues [26]. Residues from the log debarking process in sawmills, wood composite mills, and pulp and paper mills can be used for pellet. Lehtikangas [27] investigated the quality properties of pelletised sawdust, logging residues and bark, and concluded that bark and logging residues are suitable raw materials for pellets production, especially if the ash content is controlled.

Setiawan and Surachman [15] investigated reject waste pellets of paper mills as fuel and their contribution to greenhouse gas. The reject waste pellets had a high caloriic value calg and low ash 6. Utilization of 10 reject mixed with 90 coal as boiler fuel could reduce CO 2 gas as greenhouse gas GHG emissions by about 9. In order to improve the combustion characteristics of sludge, the most popular method is to mix the sludge with auxiliary fuel coal, refuse, sawdust etc, desulfurizer and binder to produce solid fuel.

Thermal Conversion-Based Technologies Hydrothermal Treatment About 80 of water content of biosludge is recognized as bound water which cannot be separated by conventional dewatering devices such as centrifuge or ilter press due to high strength binding between water molecules and sludge solids surface [28] and the potential presence of biologically active organisms or compounds [29]. The hydrothermal treatment process can convert waste to value- added resources such as coal-like solid fuel or organic fertilizer.

Differences of hydrothermal treatment, hydrothermal carbonization and hydrothermal liquefaction are presented in Table 5. Drying the feedstock is not needed in the hydrothermal process, which makes it especially suitable for naturally wet biomass. The hydrothermal process occurred in aqueous medium which involves complex sequences of reactions including solvolysis, dehydration, decarboxylation, and hydrogenation of functional groups [31].

Typical operating parameters of hydrothermal treatment, hydrothermal carbonization, hydrothermal liquefaction [30] No. The produced solid fuel had higher heating value, comparable HC and OC atomic ratios with that of coal, water reduction after dewatering of raw and treated paper sludge was 5.

Areeprasert et al. Torrefaction is based on the removal of oxygen decreasing OC ratio from biomass which aims to produce a fuel with increased energy density by decomposing the reactive hemicellulose fraction [36]. During torrefaction the biomass polymers, especially hemicelluloses, are degraded mainly by depolymerization, demethoxylation, bond cleavage and condensation reactions [37]. A typical mass and energy balance of torrefaction is 70 of the mass is retained as a solid product containing 90 of the initial energy content; 30 of the mass is converted into torrefaction gases i.

In addition to densifying energy content, torrefaction also reduces the hydroscopic property of biomass, making the biomass absorb less moisture when stored [4]. Reckamp et al. In combination with pelletization, the aim is to produce a durable biobased fuel pellet of high energy density, with a high degree of homogeneity and hydrophobic characteristics [39]. Table 6 provides an overviewof the properties of TOP pellets in comparison with wood, torreied biomass and conventional wood pellets.

Compared to non-torreied pellets TOP pellets show better hydrophobic behavior, strength and higher density [36]. A number of studies have shown that torrefaction increases the eficiency of biomass combustion [40], [41] and gasiication [42] processes. Table 6. The process is very complex and consists of both simultaneous and successive reactions when organic material is heated in a non-reactive atmosphere. The long chains of carbon, hydrogen and oxygen compounds in biomass break down into smaller molecules in the form of gases, condensable vapours tars and oils and solid charcoal [44].

Pyrolysis has attracted more interest in producing liquid fuel product because of its advantages in storage, transport and versatility in application such as combustion engines, boilers, turbines, etc. Based on the operating condition, pyrolysis can be classiied into slow, fast and lash pyrolysis Table 7. Char can be directly used as fuel for combustion or gasiication. Bio-oil can be directly used as fuel for combustion or further processed into fuels and chemicals derivation uses some methods such as catalytic cracking with zeolite, hydrogenation, steam reforming, emulsiication, and other metods [31].

Liquid bio-oil is composed of hundreds of chemical constituents from various chemical groups, primarily anhydrosugars, phenols, furans, ketones, aldehydes, and carboxylic acids, whose compositions affect the physicochemical properties of bio-oil [38]. Strezov and Evans [45] investigated the products of paper sludge pyrolysis to determine their properties and potential energy value.

The high acidic content indicates that in order to convert the paper sludge bio-oil to bio-diesel or petrochemicals, further upgrading would be necessary. Venderbosch and Prins [46] collected the representative values for wood-derived pyrolysis oil properties and listed in Table 8. Table 8. Typical properties of wood derived crude bio-oil [46] Physical property Pyrolysis conditions Water content 15—30 Temperature K — pH 2. The gasiication agent can be air 21 O 2 and 79 mol N 2 , O 2 -enriched air, pure oxygen, steam, CO 2 or a mixture of such compounds [47], [48].

The producer gas can be processed into a gaseous fuel as a fuel or synthesis gas for the production of chemicals [50], [51]. The performance of the gasiication process is affected by several operating parameters such as biomass type, moisture content, reactor coniguration, gasiication agent, temperature, pressure, steambiomass ratio, oxygenbiomass ratio and others [52].

The gasiication process is usually can be represented by the equations below. Black liquor gasiication technologies are distinguished in two major classes; 1 Low temperature gasiication, and 2 High temperature gasiication. Low temperature gasiier operates at — o C, below the melting point of inorganics, thus avoiding smelt-water explosions while high temperature gasiication units generally operate in the — o C range, and produce a molten smelt [53].

Black liquor gasiication can also be integrated with combined-cycle technology, i. Table 9 compares potential electricity or fuel production from various studies. Table 9. Bio-reinery performance estimates based on BLG studies e. Syamsudin et al. Biological Conversion-Based Technologies Anaerobic Digestion Anaerobic digestion involves a series of processes in which microorganisms break down organic matter in the absence of oxygen via hydrolysis, acidogenesis fermentation, acetogenesis, and methanogenesis [55].

Anaerobic digestion has some advantages, such as a signiicant reduction of the biomass 30—70 and the production of biogas consists of about 50—80 of the energy carrier methane. Anaerobic digestion has been widely applied for primary and secondary sludge from pulp and paper mills. Yunqin et al. Lin et al. Soetopo et al.

Anaerobic digestion also has been successfully used for various pulp and paper mill streams Table Table The cellulosic and hemicellulosic sugars obtained through acid and enzymatic hydrolysis can eficiently be used for ethanol fermentation either by separate hydrolysis and fermentation SHF or simultaneous sacchariication and fermentation SSF. Some studies available related to fermentation of paper sludge for ethanol production by SHF and SSF, most of these studies used Saccharomyces cerevisiae Tabel The high lignocellulosic content of the paper sludge Tabel 11 offers an opportunity as a feedstock for production of ethanol.

Polysaccharides present in the sludge are highly accessible to enzymatic hydrolysis due to the physical and chemical processing undertook during pulp and paper manufacturing [62]. Compared to other cellulosic feedstocks, paper sludge have negative feedstock cost, no requirement for pre-treatment to be made amenable to enzymatic hydrolysis, and integration of processes into a preexisting industrial infrastructure at a mill.

Typical composition of dry paper sludge [63] No. Component Amount gg dry paper sludge 1. Total sugar 0. Other sugars 0. Clay 0. Others 0. Two optimisation scenarios were evaluated: 1 using a reduced HCl amount in the neutralisation stage and 2 co-fermentation of xylose and glucose, for maximal ethanol yield. Both scenarios displayed signiicant environmental impact improvements.

Chen et al. Some studies related to fermentation of pulp and paper sludge for ethanol production No. Material Process Result References 1. Paper sludge SHF with cellulase and S. Paper sludge SSF with a cellulase produced from paper sludge by the hyper- cellulase producer, Acremonium cellulolyticus C-1 for sacchari- ication, and Saccharomyces cerevisiae TJ14 for ethanol production.

Paper sludge is a good raw material for bioethanol production [63] 3. Paper sludge SSCF batch experiments with solids concentration of gL Conversions of paper sludge to ethanol of 51 with a maximum ethanol concentra- tion of 19 gL. These resources are produced in all stages of the pulping and papermaking process. Energy-rich biomass in pulp mill includes bark, sawdust, wood waste, pins, ines, knots, foul condensates, black liquor, and sludge.

Energy-rich rejects in paper mill includes iber bundles, plastics, foils and polystyrene, deinking and non-deinking sludge. The renewable energy with higher energy density could be produced by turpentine decantation, steam stripping, pelletization, hydrothermal treatment, torrefaction, pyrolysis, gasiication, fermentation and anaerobic digestion. Some technologies are already operating commercially such as steam stripping, gasiication and anaerobic digestion, but some technologies are still being improved such as fermentation.

Outlook energi Indonesia Dewan Energi Nasional, Jakarta; Indonesia energy outlook Energy development in supporting green industry. Agency for the Assessment and Application of Technology, Jakarta; Peraturan Pemerintah Republik Indonesia No. Alternative technologies for biofuels production in kraft pulp mills—Potential and prospects. Energies ; Gavrilescu D. Energy from biomass inpulp and paper mills. Environmental Engineering and Management Journal ; Solid waste generation in kraft pulp mills.

Jemaa N, Paleologou. Method for producing biomethanol at pulp mills. US Patent No. Lin B. The basic of foul condensate stripping. Black liquor gasiication integrated in pulp and paper mills: A critical review.

Bioresource Technology ;— Preliminary economics of black liquor gasiiergas turbine cogeneration at pulp and paper mills. Journal of Engineering for Gas Turbines and Power ;— Linderoth CE. Bajpai P. Management of Pulp and Paper Mill Waste: 9— Springer International Publishing Switzerland; Sludge characteristics and disposal alternatives for the pulp and paper industry.

Characterization and pyrolysis behaviour of different paper mill waste materials. Pyrolysis ;— Setiawan Y, Surachman A. Reject waste pellets of paper mills as fuel and their contribution to greenhouse gas GHG. International Journal of Technology ; Ouadi M. Sustainable energy from paper industry wastes. Thesis, Aston University; Potency of solid waste of paper mill using recycle paper as fuel. Jurnal Selulosa ; Canmet Energy Technology Centre.

Pulp and paper sludge to energy-preliminary assessment of technologies. ADI Limited Report 34 Durai-Swamy,K, Warren D. W, Mansour M. Utilization of waste paper pulp by partial replacement of cement in concrete. International Journal of Engineering Research and Applications ; Yanfen L, Xiaoqian M. Thermogravimetric analysis of the co-combustion of coal and paper mill sludge. Applied Energy ;— Pirolisis isotermal sludge cake dan pulp reject pabrik pulp kraft.

Smook GA. Handbook for Pulp Paper Technologists. Angus Wilde Publications, Inc. Der B, Jensen AS. Methanol puriication method and apparatus. Recent developments in biomass pelletization—A review. Bioresources ;— Making paper mill residues into wood pellet fuel. Lehtikangas P. Quality properties of pelletised sawdust, logging residues and bark.

Biomass and Bioenergy ;— A review of the properties of biosludge and its relevance to enhanced dewatering processes. Biomass and Bioenergy ; Hydrothermal carbonization of industrial mixed sludge from a pulp and paper mill. A review on pilot-scale applications of hydrothermal. International Journal of Environmental Science and Development ; Xiu S, Shahbazi A. Bio-oil production and upgrading research: A review.

Renewable and Sustainable Energy Reviews ;— Alternative solid fuel production from paper sludge employing hydrothermal treatment. Combustion characteristics and kinetics study of hydrothermally treated paper sludge by thermogravimetric analysis. Biofuels ;— Xu C, Lancaster J. Conversion of secondary pulppaper sludge powder to liquid oil products for energy recovery by direct liquefaction in hot-compressed water.

Water Research ;— Torrefaction for biomass co-iring in existing coal-ired power stations. Biomass upgrading by torrefaction for the production of biofuels: A review. Understanding the chemical and structural transformations of lignin macromolecule during torrefaction. Energy ;—9. Selective pyrolysis of paper mill sludge by using pretreatment processes to enhance the quality of bio-oil and biochar products. Process optimization of combined biomass torrefaction and pelletization for fuel pellet production — A parametric study.

Combustion evaluation of torreied wood pellets on a 50 kWth boiler. Transport ; Torrefaction of agriculture residue to enhance combustible properties. Energy Fuels ; More eficient biomass gasiication via torrefaction. Energy ;—70 Fisher, T. Pyrolysis behaviour and kinetics of biomass derived materials.

Pyrolysis , 62, — Strezov V, Evans TJ. Thermal processing of paper sludge and characterisation of its pyrolysis products. Waste Management ;— Venderbosch RH, Prins W. Review: Fast pyrolysis technology. Biofuels, Bioprod. CO 2 gasiication of biomass chars: A kinetic study. Energy Fuels ;— Steam-air luidized bed gasiication of distillers grains: Effects of steam to biomass ratio, equivalence ratio and gasiication temperatue.

Main routes for the thermo-conversion of biomass into fuels and chemicals. Part 2: Gasiication systems. Energy Conversion and Management ;— Higman C. Arena U. Process and technological aspects of municipal solid waste gasiication. A review. Biomass pyrolysisgasiication for product gas production: The overall investigation of parametric effects.

Energy Convers Manage ;— Patrick K, Siedel B. A mills startups. Paper age; Study on alternative fuels for lime kiln in a kraft pulp mill via direct combustion and gasiication. Proceedings of REPTech Environmental Biotechnology: Principles and Applications. McGraw- Hill, Boston; Treatment and characterization of biological sludges from the pulp and paper industry.

Water Science and Technology ;20;— Alkali pretreatment enhances biogas production in the anaerobic digestion of pulp and paper sludge. Journal of Hazardous Materials ;— Mesophilic batch anaerobic co-digestion of pulp and paper sludge and monosodium glutamate waste liquor for methane production in a bench-scale digester.

Bioresource Technology ; Soetopo, R. Meyer T, Edwards EA. Review: Anaerobic digestion of pulp and paper mill wastewater and sludge. Water Research ;65; Comparison of separate hydrolysis and fermentation and simultaneous sacchariication and fermentation processes for ethanol production from wheat straw by recombinant Escherichia coli strain FBR5.

Appl Microbiol Biotechnol ;— Biomass Bioenergy ;32; Bioconversion of paper sludge to biofuel by simultaneous sacchariication and fermentation using a cellulase of paper sludge origin and thermotolerant Saccharomyces cerevisiae TJ Biotechnology for Biofuels ; Life cycle assessment of advanced bioethanol production from pulp and paper sludge.

Economic evaluation of the conversion of industrial paper sludge to ethanol. Energy Economics ;— Peng L, Chen Y. Conversion of paper sludge to ethanol by separate hydrolysis and fermentation SHF using Saccharomyces cerevisiae. The world demand of beverages cardboard has increased by 9,1 in to 35,8 billion worth Tetra pak contributed for 11,9 billion. With mainly consist of 74 iber in every used beverages cardboard UBC, recovery process of UBC secondary pulp iber has promising potential source for raw material of pulp.

Although it is dificult to be degraded naturally, previous researches on the processing of UBC shows that this solid waste can be recycled in order to obtain secondary iber and poly aluminum. The objective of this research is to study the recovering process of secondary pulp from aseptic packages through the repulping process, separating it from the poly aluminum, producing paper liner from the secondary pulp, and then testing it properties according to Indonesian National Standard for SNI The results showed that the recycling process can recover of secondary iber.

The test result of paper liner properties showed that it proceed all Indonesian National Standard for paper liner. The study is part of the introduction and provision of information recycling of aseptic packages as an environmental education program for high school students.

They are the main consumers of products UBC. The students were invited to see the direct practice of recycling in CPP consists of ifty-two students representing schools from Bandung and two students from the college. Keywords : recycling, used beverages cartons UBC, secondary iber, poly aluminium, paper liner, wastewater treatment, environmental educations Introduction Food and beverages product critically needs some type of packaging for product labeling, transportation, protection, and preservation.

The focus of food and product packaging was initially more into protection and preservation of the product. UBC is a type of packaging which is made of up to seven layers, which are composed of mainly 74 iber, 21 polyethylene and 4 aluminium foil alufoil.

As made up from seven materials and designed to preserve beverages from decayed, UBC is hard to be degraded naturally. After being used, UBC is often perceived as waste by consumers. Although has 74 iber content, UBC is categorized as reject and unwanted in paper mills that uses waste paper as raw material.

The problem is mainly because of the dificulties of separating iber with other composition [2][3]. Recycling is the process of collecting and processing materials that would otherwise be thrown away as trash and turning them into new products.

It has many beneits, such as reduces the ampunt of waste sent to landills and combustion facilities; conserves natural resources such as timber, water, and minerals; saves energy; reduces greenhouse gas emissions that contribute to global climate change; helps sustain the environment for future generations; and helps create new well-paying jobs in the recycling and manufacturing industries [4].

Many researches has been done to quantify the environmental impact of packaging to the industry in order to reduce cost and improve performance. Tetra Pak was the one that initiated the development of the tetrahedron shaped package. Tetra Pak offers packaging equipment for liquid products, and provide a range of processing and packaging technologies for use with a broad array of products, from ice cream and cheese to fruit, vegetables and pet food. Tetra Pak also has policies to reducing the environmental impact of its operations and to enhancing the environmental performance or its products abd solutions [5].

In the year of , Tetra pak had successfully sold billion of its packages. With the increasing of the world demand for 9,1 per year to 35,8 billion worth product Tetra pak contributed for 11,9 billion, and mainly contained 74 iber in every UBC, the recovering process of UBC into secondary pulp iber is a potential source for raw material of pulp [6][7].

Center for Pulp and Paper, in cooperation with PT. Tetra Pak Indonesia, has been established join research cooperation to recycle UBC since laboratory scale experiment in Previous study showed that secondary iber pulp [8] and polyalum [2] were successfully recycled from some of used beverages cardboards UBC PT.

Tetra Pak Indonesia. The repulping process was aimed to deiberizing and to separate polyalum and the slurry contained recycled secondary iber pulp which was separated at the rotary drum screening process Fig. Theoritically, all aseptic packages as one of UBC type also has a potential to be recycled and recover their secondary pulp and polyalum. The objective of this research is to study the possibility of one type of aseptic packages from one of beverages packaging industry in Indonesia, to be recycled into secondary pulp and to test its quality according to Indonesian National Standard for as packaging paper liner SNI The result of this research would also be benefecial for further study of UBC utilization and recycling process.

Methodology The material used in this study were UBC of aseptic packages from one of beverages packaging industry in Indonesia. In the preparation process, the UBC were emptied, separated from the straw and then lattened. The repulping process of the UBC was devided into several steps, which are raw material disintegration, ilteritation and pulp sheet formation.

UBC was placed in a hydropulper, mixed and formed into slurry with the additon of water. Polyethilene and aluminum layers were separated and recovered in a rotary drum ilter screen. The slurry which has been separated with polyethilene and aluminum layers were transferred into headbox and then repulped into pulp sheets in the wire.

The repulping process of recycled secondary iber pulp was showed at igure 1. Pulp from the sheet forming process was collected and tested. All test results were being tested in the Center for Pulp and Paper Bandung. The recycled pulp from the process in the igure 1, was then undergone paper liner production process in the third party institution. The paper liner production process was showed in the igure 2.

Stock preparation to mix furnace consisting iber, iller and chemical additive. The processes were then continued with web forming in the cylinder mold, pressing, drying, inishing and converting. The paper liner sheets produced from the third party institution were then being tested in the parameters of gramature, Cobb, pH, tensile, tear, burst, stiffness, holding endurance and porosity. Paper liner production process Result In the repulping process Figure 1, polyalum and polyethilene was separated from the slurry with the drum screen, and the slurry which fulled with secondary iber was then made into wet pulp.

From a total of 74 iber content from UBC around 40 was succesfully recycled into wet pulp, the result showed a secondary iber rendement in average. The recycled iber in the wet pulp showed a good clean quality pulp without any unwanted aluminum or polyethilene. The characterization of the wet pulp was showed at Table 1. The results were showed in Table 2. It means that the mill implementation of repulping process will need a wastewater treatment installation to decrease their wastewater pollutants.

The pulp from recycling process was then processed in the third party to be produced into paper liner. The process of repulping will have some progressive deterioration effects to iber properties compared with original pulp iber [10]. To assure the iber quality, the paper liner product from the recycled pulp of UBC was characterized and the result data was compared with Indonesian standard SNI It were showed that paper liner product sheets were proceed most of the parameters for Indonesian standard of paper liner, with the exception of beating process mL CSF at gsm with slightly outside the limit, but still showed a potential value.

Table 3. The students were showed the raw materials of UBC, repulping process of aseptic packaging of UBC from hydropulper up to the pulp sheet product, and also the separated process of aluminium foil. Students from schools in Bandung were showed the hydropulper a and thickning b equipment Conclusion Pulp iber from used beverages cardboard has some potentials to be recycled into product of liner paper. It were showed that paper liner product sheets were proceed most of the parameters for Indonesian standard of paper liner, especially for beating process mL CSF at gsm which were proceed all of the parameters for Indonesian standard.

However there is still need some improvement and room for progress. Environmental education program about recycling of UBC was also already conducted, around 50s schools from around Bandung were invited to the recycle center, two colleges Telkom University Bandung and Akademi Teknologi Industri Padang were also invited. Acknowledgement We would like to thank all those who have helped make this research a success.

We would like to thank Miss Mignonne Akiyama and Mr. Reza Andreanto from PT. Tetra Pak, and also we would like to thank Mr. Davin and Mr. Avey from PT. Indolakto for all the cooperation during this research. Refferences 1. Santosa, L. Environmental Protection Agency, https:www. Tetra Pak, http:www. Freedonia, http:www.

Ministry of Environment of Indonesia. PerMenLH No. Spangenberg, R. To utilise these research achievements, it is necessary to establish an integrated system for the biomass usages. A feasibility study toward setting up the system shows the necessity of involvement of rural development and reduction of environmental impacts. To ill these requirements, a irm blue-print by presenting a model system may be necessary for the biomass utilisation. Keywords: oil palm, biomass, pulp, paper, composites, feasibility, utilization, integrated, model Introduction It is well recognised that the utilisation of oil palm biomass is one of the most important issues at palm oil producing countries for reducing wastes from the oil production, which may lead the industry sustainable and environment-friendly.

Toward this purpose, there are many individual research studies have been carried out for utilisation technologies at laboratories in various institutions such as universities, research organisations and private sectors. Although there are quite number of excellent achievements in the technological development, it is not easy to be applied in commercial scale for creating new products from oil palm biomass.

In order to make further progress on this matter, we have carried out a feasibility study for setting up an integrated system on oil palm biomass utilisation in Malaysia. The programme was designated for two years from to and the study was carried out through occasional visits to related institutions in Malaysia.

In this paper, our achievements on the utilisation technologies are introduced at irst, which are mainly laboratory-scale research studies, including the preparation of various types of pulp and paper and bio-composites.

Secondly, the feasibility study under the JSPS-JICA programme is summarised, which includes networking scientiic research works and rural developments. Finally, an ideal system for utilising biomass from palm oil industries will be proposed from outputs of this study. Lab-Scale Research Studies Collaborative research studies on the utilisation of oil palm biomass between the Japanese and Malaysian institutions have been carried out continuously for more than 15 years.

Here we would like to introduce some achievements of laboratory-scale research studies from the collaboration. EFB pulps It was found that EFB chemical pulps can be bleached by various chlorine-free processes to obtain a commercial level of brightness with paper quality comparable to hardwood kraft pulp Figure 1, left [1,2]. The combination of acid pre-hydrolysis, soda-anthraquinone AQ pulping and chlorine-free bleaching processes was found to be effective for producing dissolving pulp from EFB Figure 1, right [2,3].

It is essential to use an isocyanate compound as a cross-linker, but it is possible to reduce its amount to a certain level while still retaining the mechanical strength of the composite. For EFB ibres, it is necessary to clean their surfaces, but an organic solvent is not required, water with detergent is good enough.

Our activities were to create a network between institutions for research studies and for practical involvements and to propose an ideal system for the setting-up. Besides the meetings, we visited oil palm plantation sites belonging to FELCRA and exchanged opinions and ideas with the staff and workers Figure 3.

These occasions were quite important to obtain the latest information in research and development for oil palm biomass and to exchange ideas with experienced scientists from various research areas. Factory visits were other important activities for the study to know recent situation of the biomass usages. Oil palm plantation sites Through the study, two things have become clear for the establishment of the system: 1 technological progress should be made in combined with rural development at regions depending on palm oil industries; 2 environmental impacts should be reduced by balanced usages of oil palm biomass.

Considering these requirements, we tried to build up an ideal system for the integrated utilisation. Figure 4 shows a low chart of research and development, which must be necessary to be carried out for establishing the system. Figure 4. LCA must be conducted from material and energy balances for the production of a certain product using a raw material of oil palm biomass.

It is also important to determine the cost performance during the production. In this category, the establishment of methods for the LCA and the cost evaluation will be main purposes of the study. For the production of biomass-origin products, it is necessary to have the initial stage of raw material treatment, i. The processing includes the conversion of the biomass wastes to easy-handling materials such as EFB shredded ibres. The most important thing in each study is to make a clear goal and to set a time limit in basic approaches.

Once these model systems are set up, it must be a turn of related industries such as wood boards, panels, energy and pulp paper. The role of research and development for the establishment of biomass utilisation system is to connect between individual academic research studies and industries. At this point, the most important thing is that the industrial progress involves rural development of oil palm related areas. If the industry is only beneicial to present palm oil industries, there is no progress in the development toward sustainability including environmental issues.

Conclusions Palm oil is an excellent agricultural product for us, human beings. We are utilising natural plants eficiently such as palm oil. For oil palm, we are only using its oil and do not care its residues. For proper nature, a metabolic system should work for all plants and creatures. However, an oil palm plantation is man-made, so that it is necessary for us to keep its metabolism working.

It means that we should utilise not only palm oil but also woody biomass from the palm eficiently for keeping the plant metabolism. In this study, our research studies have been introduced and the integrated system has been proposed for the utilisation of oil palm woody biomass. We hope our achievement will be a starting point for sustainable palm oil industries. References Tanaka R. Tanaka R. Wan Rosli W.

It is common industrial knowledge that coal ired power plant fueled with coal having a sulfur content of more than 0. However, this technology is dificult to be retroitted in the existing power plants, formerly installed without FGD. One of the preferable methods to be retroitted in the existing power plant is dry sorbent FGD.

In this method, dry sorbent is injected in the duct of lue gas leaving the furnace. Experimental and theoretical studies have been conducted to evaluate the effectivity of CaOH 2 and NaHCO 3 as dry sorbents, at various particle sizes, adsorption temperature and gas low rate.

After about 1. Although it is much more expensive than the later. These two chemicals are available in the local market. A regenerable sorbent, CuOg-Al 2 O 3 has been successfully prepared in our laboratory. In addition to the advantage in regenerability, this adsorption-desorption process produces SO 3 which may be further converted to H 2 SO 4.

Sorbent CuOg-Al 2 O 3 was prepared using the dry impregnation method and ive type of sorbent with different Cu contents were studied: 5Cu actual content of 4. Among these ive types, sorbent 8Cu was the best with respects to the speciic pore area and the uniformity of distributed of Cu on g-Al 2 O 2 and the adsorption capacity. Sorbent 8Cu had the highest adsorption capacity, i.

Keywords: lue gas desulfurization, dry injection, calcium carbonate, sodium bicarbonate, regenerable sorbent, impregnation method, absorption capacity, ixed bed tubular reactor Introduction Combustion of coal with sulfur content in the range of 0. The FGD technology that has been applied in Indonesia could be classiied as wet process. All of the implemented FGD technology has been imported from other country, so the development research of FGD technology especially dry process of FGD is very important for the future use.

CaOH 2 sorbent is not literally dry but may contain small amount of water to increase their SO 2 adsorption capacity. Different from NaHCO 3 sorbent, water will be decomposed from sorbent and released to environment. Reaction occuring in desulfurization process for CaOH 2 sorbent experiments is shown by the following equation. Another for lue gas desulphurization of coal ired power plant is using regenerable sorbent, CuOg- Al 2 O 3. The use of CuOg-Al 2 O 3 sorbent is advantageous in the way that it can be regenerated without a signiicant decrease of adsorption capacity [2, 5, 6, 7, 8, 10].

This sorbent can chemically adsorb SO 2 and O 2 in lue gas following this reaction. The spent sorbent is regenerated using a reducing gas such as H 2, CH 4 or NH 3 or using thermal decomposition. Unfortunately, thermal decomposition method may reduce durability of CuOg-Al 2 O 3 sorbent to heat [9, 11].

Effectivity of these three sorbents are compared one to the other. Experiments NaHCO 3 99 pure was obtained from the local market is more than 99 pure. Preparation of sorbent involves only size reduction with the particle size distribution. Initial weight of sorbent used for every experiments was 0. Desulfurization experiments was conducted semi continuously in tubular tube ixed bed reactor. The inlet SO 2 concentration was mgNm 3 in the air with gas lowrate was 1.

Reynolds number of gas lowrate was , which was classiied as a laminar low. Reactor pressure was set to be atmospheric. Two parameters may be used to indicate the success of desulfurization experiments. This support has spesiic surface area, pore volume and average pore diameter of Drying and calcination conditions of CuOg-Al 2 O 3 sorbent is the same as previously done by Yuono et al.

The average pore diameter and pore volume of sorbent have been analyzed using Nitrogen Adsorption-Desorption with Barrett-Joyner-Halenda model. The SO 2 concentration in the feed gas was in the range of 18, 21, ppmv in the air.

The best CuOg-Al 2 O 3 sorbent obtained from experiments was further used on the adsorption-regeneration process. Both of the adsorption and regeneration experiments were carried out with a gas low rates in the range of 1. The initial weight of the sorbent utilized on every experiments were about 1.

The amount of SO 2 adsorbed by sorbent was measured from the difference of the SO 2 amount between inlet and outlet gas tofrom the reactor. The schematic diagram of the experimental set up for sorbent activity test is show on Figure 1. Mixing tank 3. Sorbent 5. Temperature controller 7.

Compressor 2. Manometer 4. Furnace 6. SO 2 in the gas was reduced until the value is about — mgNm 3. The difference of SO 2 concentration in gas low between the inlet and outlet reactor was the SO 2 absorbed or react with the sorbent. SO 2 adsorption experiments using NaHCO 3 sorbent at various of particle size has shown that SO 2 conversion where is sorbent conversion is highest with particle size of micron or mesh Figure 4. If the particle size is smaller than 37 micron, desulfurization effectiveness was very low which was due to ineffective contact between gas and sorbent.

Effect of SO 2 concentration on desulfurization effectiveness Figure 4. Effect of particle size on desulfurization effectiveness Since the effectiveness of CaOH 2 was very low, further experiment was focused on the used of NaHCO 3 sorbent. Figure 5. This phenomenon was due due to CuO layer cover the smaller sized pores of the sorbent so that the average pore diameter was not signiicantly reduced [12].

Efforts to enhance reliability reduce the probability of power outages. NERC is responsible for the overall reliability, planning, and coordination of the power grids. Electric utilities formed this voluntary organization in , following a large blackout in the Northeast in NERC is organized into eight regional organizations that cover the 48 contiguous States, and two affiliated councils that cover Hawaii, part of Alaska, and portions of Canada and Mexico.

As discussed above, interconnection between the bulk power networks is limited in comparison to the degree of interconnection within the major bulk power systems. Further, the degree of interconnection between NERC regions even within the same bulk power network is also limited. Consequently, each NERC region deals with electricity reliability issues in its own region, based on available capacity and transmission constraints.

The regional organizations also aid in the exchange of information among member utilities in each region and among regions. Service areas of the member utilities determine the boundaries of the NERC regions. Though limited by the larger bulk power grids described above, NERC regions do not necessarily follow State boundaries. However, these facilities account for only approximately 19 percent of total national capacity.

Conversely, SERC has the largest fraction of total national capacity approximately 26 percent , but only 16 percent of facilities. The final rule may affect the various NERC regions differently, in terms of impact on profitability, electricity prices, and other impact measures.

These different effects result from differences in the economic characteristics of regulated facilities across the regions and in the baseline economic characteristics of the NERC regions themselves, together with the market segmentation due to limited interconnectedness among NERC regions. DOE, b. Among power facilities, only those facilities employing a steam-based generating technology - i. The following sections describe electric power facilities EPA expects will be subject to the final rule regulated facilities.

The final rule also covers stand-alone new units at such facilities the new unit provision of the final rule. New units at existing facilities are addressed in Chapter 3: Compliance Costs. This classification is important because EPA must assess the impact of the final rule on State, local, and tribal governments in accordance with the Unfunded Mandates Reform Act UMRA of see Chapter UMRA Analysis 21 21 As discussed earlier in this chapter, while ownership type may affect the ability of facilities and their parent entities to recover increased electricity generation costs due to the final rule, ownership type is not a sole or a deciding factor of cost recovery potential.

Overall, EPA estimates that regulated facilities account for approximately 5 percent of all parent entities, 9 percent of all electric power facilities, and 46 percent of total electric power sector capacity. Regulated facilities that are owned by investor- owned utilities account for the largest share 76 percent of total capacity subject to the final rule.

Individual values may not sum to reported totals due to independent rounding. EPA based ownership information for regulated facilities and their parent entities on information gathered through the Steam Electric industry survey. Facility counts and capacity values are sample-weighted estimates calculated using original survey weights for details see Appendix H: Sample Weights. The size distribution of parent entities that own regulated facilities varies by ownership type.

The smallest share of small entities is in the other political subdivision category 2 percent , while small municipalities make up the largest share of small entities 36 percent. EPA estimates that of regulated facilities, 71 13 percent are owned by small entities Table 2A-4, following page. The largest share of regulated facilities owned by small entities are owned by cooperatives 39 percent , while the remaining 61 percent of regulated facilities owned by small entities are owned by municipalities, investor-owned, nonutilities, and other political subdivisions.

By definition, States and the federal government are large entities. For a detailed discussion of identification and size determination of parent entities of regulated facilities, see Chapter 4 and Chapter The 22 EPA estimates that 6, electric power facilities operate in the United States; 2, entities own these facilities and account for 1,, MW of total generating capacity.

DOE, lb. Installation downtime occurs when facilities temporarily shut down their electric power generation for installation of certain compliance technologies. NERC regions are built around confined market areas that are meaningful for assessing the adequacy of generating capacity to meet regional electricity demand. While electricity may be imported from beyond the borders of a NERC region, the generating capacity within the region will generally be the primary source of electric supply for meeting the region's electricity demand and for ensuring adequate supply reliability within the region.

Even though reductions in capacity caused by installation downtime are usually no more than a few weeks longer than ordinary maintenance outages, electric supply reliability in a region could be weakened to an undesirable level if a substantial number of facilities in a region incurred downtime at the same time.

As a result, reviewing the number of facilities that may incur downtime and their electric power generating capacity can provide insight into the potential impact of the final rule, or other options considered, on regional electric supply reliability.

As reported in Table 2A NERC regions show considerable differences in the number of regulated facilities and their capacity and the percentages of facilities and capacity represented by regulated facilities. Not all of the regulated facilities will experience downtime; therefore, this assessment may overstate the percentage of facilities and regional capacity affected by downtime. Facility counts and capacity are weighted estimates calculated using original survey weights for details see Appendix H.

DOE, b 2A. As reported in the table, most of the regulated facilities facilities or 63 percent employ a once-through cooling system. Facility counts are weighted estimates calculated using original survey weights for details see Appendix H. Includes facilities with cooling water system impoundments, which may qualify as baseline CCRS see Chapter 1. EPA analysis fortius report; U. EPA, 2A. Several key pieces of federal legislation have supported this transition. Traditionally, the industry has operated under a regulation framework based on the premise that the supply of electricity is a natural monopoly, where a single supplier could provide electric services at a lower total cost than could be provided by several competing suppliers.

During the past several decades, however, the relationship between electricity consumers and suppliers has undergone substantial change, as governments and regulatory agencies recognized that electricity generation does not necessarily meet the definition of a natural monopoly. As a result, the federal government and States have taken steps to promote competition in generation. The objective is to achieve higher electricity production efficiency among electric power generators, while recognizing that the delivery of electricity via transmission and distribution systems remains within the definition of a natural monopoly.

A key step in this effort is the required unbundling of the traditional, vertically integrated electric power business. The electricity generation business and therefore, the electric power generating assets, have been separated from the electricity transmission and distribution business. Electric restructuring has two essential aspects: wholesale access and retail access.

Wholesale access refers to the ability of electric power generating entities - utilities and independent power producers - to access transmission systems to compete for wholesale markets, i. Retail access refers to the ability of marketers and retailing businesses of utilities to obtain access to distribution systems to sell electricity to end-use consumers, thereby introducing consumer choice of electricity supplier or retail choice.

The initial actions promoting competition in wholesale electric power markets began with the Public Utility Regulatory Policies Act of PURPA , which established business terms by which certain nonutility electricity-generators - "qualifying facilities" or QFs - could sell electricity to utilities. This order further promoted wholesale electric competition by ensuring non-discriminatory access by power producers to transmission services, which traditional rate-regulated utilities continued to own.

Order also provided a basis for retail choice of electricity supplier, and established guidelines for the formation of Independent System Operators ISOs. ISOs are independent, federally regulated entities for rate regulation purposes established to coordinate regional electric power generation and transmission in a non-discriminatory manner. EPAct also modified PURPA of , removing some pricing provisions that had resulted in consumers paying above-market prices for some electricity.

Since the mids, federal and State policies have led to increased competition in the generation sector of the industry. Increased competition has resulted in separation of power generation, transmission, and retail distribution services. Utilities that provide transmission and distribution services continue to be rate- regulated and must divest their generation assets.

In the deregulated framework, entities that generate electricity are no longer subject to rate regulation and do not operate in protected franchise markets. Consumers within a given utility franchise area were able to purchase electricity only from the utility franchised to serve that area. Similarly, electricity suppliers were not free to pursue customers outside their designated service territories. Although most consumers continue to receive power that is either generated by, or purchased and resold by, their local distribution company LDC , retail competition has allowed some consumers - in particular, larger industrial and commercial consumers - to purchase electricity from producers other than the local distribution utility.

In some instances, they can obtain lower prices than would be available through the traditional supply structure. Regulatory authorities set electricity prices for each utility, based on the cost of producing and delivering power to customers and including a reasonable rate of return on invested capital i. In the deregulated 25 PUHCA of was passed by the United States Congress to facilitate regulation of electric utilities, by either limiting their operations to a single state, and thus subjecting them to effective state regulation, or forcing divestitures so that each company became a single integrated system serving a limited geographic area.

In addition, PUHCA of required holding companies to obtain permission from the Securities and Exchange Commission SEC prior to engaging in a non-utility business and further required that such businesses be kept separate from the rate-regulated businesses. Electricity sellers and buyers, who may be local distribution utilities or direct retail purchasers, negotiate through power pools or one- on-one to set the price of electricity.

As in any competitive market, prices reflect the interaction of supply and demand. During most time periods, the price of electricity in a given competitive wholesale electricity market e. Under PURPA, utilities are required to buy power from QFs usually cogeneration or renewable energy-based generators in their service area, at a price equal to the avoided production cost of the buying utility.

However, access to the systems proved to be slow and burdensome. As of , 22 of 50 States had initiated efforts to design restructured electricity markets and pass enabling legislation. However, eight of these 22 States - Arizona, Arkansas, California, Montana, Nevada, New Mexico, Oregon, and Virginia - experienced difficulties during the transition to a competitive electricity market, such as lack of competition for residential customers or substantial, unanticipated rate increases; consequently, seven of these eight States suspended the restructuring process.

According to the most recent information available, as of September , only 15 States27 and the District of Columbia were operating with some degree of competitive wholesale and retail electricity markets. In those 16 jurisdictions, at least part of the energy component of retail electricity prices is determined in a deregulated market.

The remaining 28 States had not introduced electricity restructuring legislation as of The 35 States with regulated electricity markets host 3, facilities 66 percent of all U. Figure 2A-6 provides a national map of the status of electricity restructuring.

The status of restructuring of the Electric Power Industry is an important factor in assessing the impact of the final rule on regulated facilities and electricity consumers. In particular, the degree of rate regulation and conversely, the extent of competition in electric power generation, substantially affect the ability of regulated facilities to pass cost increases to consumers via electricity rate increases.

Utilities, which continue to generate and sell electricity in the traditional regulated industry structure, are more likely to recover additional power generation costs that result from compliance with the final rule, than nonutilities, which may be able to recover cost increases via increased prices, but only to the extent that increased prices are supported by the competitive market.

Most facilities subject to the final rule of or 59 percent are located in States with rate-regulated electricity generation markets; these facilities account for 61 percent of total generating capacity GW of GW and 26 RTO is similar to ISO, with the main difference being the ability of RTO to control and monitor the electric power transmission system over a wider area across State borders. These facilities may be able to recover increased production costs due to regulatory compliance through higher regulation-based electricity rates, subject to approval by utility regulatory authorities.

However, even for these generators, other factors can be important in determining the extent of cost recovery. These other factors include the business operation model of the owner or operator, the ownership structure of the facility itself, and the role of market mechanisms m dispatching production from generators.

DOE, c 2A. Under these regulations, power 28 As discussed earlier in this chapter, while regulatory status in a given State affects the ability of electric power facilities and their parent entities to recover electricity generation costs, it is not the only factor and should not be used as the sole basis for cost-pass- through determination.

In using the year-by-year generation values to develop an average over the data years, EPA set aside from the average calculation, generation values that are anomalously low. Such low generating output would likely result from a generating unit being out of service for maintenance. May 2A Economic Analysis for Final b Existing Facilities Rule Chapter 2A: Electric Power Industry Profile generators must meet emission limits by physically reducing air emissions via control technology, adjusting operations to reduce emissions e.

These regulations and programs have reduced significantly the emissions of sulfur dioxide S02 and nitrogen oxides NOx from power generation. The final rule will overlap with these ongoing air-emission regulatory programs in requiring further changes to facility operations and further affecting the economics of power production. Phase I of the Acid Rain Program began implementation in ; this program has achieved significant environmental and health benefits by reducing S02 and NOx emissions and associated ambient pollutant concentrations.

The program affects more than 2, electric power generating facilities powered by coal, oil, or natural gas. The program was the first air pollution program in the United States to rely on a market mechanism - allowance trading - for allocating emission reductions. Instead of a command and control regulatory approach, the allowance trading program is market-based, allocating an initial endowment of S02 emission credits to each utility and allowing the credits to be bought, sold, or banked as long as emissions levels are met for future use.

The Acid Rain Program allows flexibility in selecting the most cost-effective approach to reduce emissions. While allowing flexibility in the approach to reducing emissions, the program did not implement an allowance trading system for NOx emissions. During Phase II of the program, which began in , the program set a cap on the number of allowances, ensuring achievement of the intended reductions in total pollutant emissions U.

EPA, b. On July 11, , the U. Court of Appeals for the D. Circuit vacated CAIR. However, on December 23, , the U. The court noted: "allowing CAIR to remain in effect until it is replaced by a rule consistent with our opinion would at least temporarily preserve the environmental values. CAIR allows each of the 28 eastern States and the District of Columbia to decide how to achieve the specified emission reductions within their jurisdictions.

EPA expects that most jurisdictions will achieve the required levels by mandating reduced emissions from the power generation sector U. State of North Carolina v. EPA, Case No. This made it difficult for a number of States to meet the national clean air standards that Congress directed EPA to establish to protect public health U.

EPA, la. However, again, a court action has delayed implementation of the regulation: the U. The CAA amendments also required EPA to make a finding as to whether additional regulation was appropriate and necessary, based on this study and other information. In , the Administrator found that regulation of hazardous air pollutants, including mercury from coal- and oil-fired power facilities, was appropriate and necessary 65 FR The rule establishes uniform national standards to reduce toxic air pollutants from new and existing coal- and oil-fired power facilities.

Pollutants covered in the standards include metals such as mercury, arsenic, chromium, and nickel; acid gases such as hydrochloric acid and hydrofluoric acid; dioxins and fiirans; and particulate matter. Affected power facilities may use any number of practices, technologies, and strategies to meet the new emission limits, including using wet and dry scrubbers, dry sorbent injection systems, activated carbon injection systems, and fabric filters.

In addition, eight States have adopted non-mandatory renewable portfolio targets, leaving only 11 States with no standards or goals PCGCC, Typically, RPS aim to achieve 1 to 5 percent renewable power generation in the first year and then require increasing percentages every year thereafter, with most States aiming for around 15 to 25 percent renewable power generation by to PCGCC, The definition of renewable sources differs among States.

Some States allow only new renewables renewable sources built after a certain year while others allow all renewables, new and existing. These programs are similar to the programs used in the air emissions regulations mentioned in Section 2A. Eventually, RPS should result in increased competition, efficiency, and innovation among the renewable energy sectors and should distribute renewable energy at the lowest possible cost AWEA, In the absence of federal action, five States34 have adopted C02 performance standards while another 11 States35 have enacted utility sector cap and trade programs PCGCC, On December 23, , EPA entered into a settlement agreement to issue rules that would address greenhouse gas emissions from fossil fuel-fired power facilities.

This regulation requires new fossil fuel-fired electric power generators with greater than 25 megawatt electric power generating capacity, to meet an output-based limit of 1, pounds of C02 per megawatt-hour. EPA is evaluating the public comments on the proposed rule and has not determined a schedule at this time for taking final action on the proposed rule. The air pollution regulations described above will shift power generation from older, more highly polluting generating units, including coal- fired units, to less polluting capacity, including nuclear capacity and natural gas capacity, in particular, to natural gas-based combined cycle capacity.

Shifts to nuclear capacity may increase cooling water requirements because nuclear capacity generally has higher cooling water requirements per unit of electricity generated than other steam-based generation. However, shifts to natural gas capacity will generally reduce cooling water requirements for two reasons. First, natural gas-fired steam electric generation has lower cooling water requirements than other steam-based generation, per unit of electricity generated.

Environmental Protection Agency, U. GHG emission reduction policies will have similar mixed effects. On the one hand, these policies will encourage improved energy conversion efficiency in electric power generation, requiring fewer energy inputs for power generation and associated cooling water requirements. However, the primary effect of GHG emission reduction policies will be to shift generation to less GHG emissions intensive capacity.

Shifts to nuclear capacity, with no GHG emissions, will increase cooling water requirements. Finally, renewable energy policies will likely have a neutral-to-beneficial effect on cooling water requirements and related impacts. Compared, however, to air pollution and GHG emission reduction policies, renewable energy policies will not favor generation from nuclear capacity; this trend will be beneficial in terms of cooling water requirements and related impacts. Electricity Demand EIA projects electricity demand to grow by approximately 0.

EIA projects this growth based on an estimated 27 percent total increase at an average annual increase of 0. In addition, EIA projects total residential demand to increase by 24 percent by , compared to at an average annual increase of 0. However, energy efficiency improvements offset this increased demand to a degree, resulting in a 6-percent decline in an average electricity demand per household by , compared to The industrial sector has seen declining growth rates for electricity demand since due to increased competition from foreign manufacturers and a shift by domestic manufacturers toward producing less energy-intensive goods.

EIA expects total electricity demand in the industrial sector to grow by 17 percent as an average annual rate of 0. While electricity demand in the transportation sector is expected to May 2A Economic Analysis for Final b Existing Facilities Rule Chapter 2A: Electric Power Industry Profile remain relatively small, the EIA predicts it to triple by , driven by increases in future sales of electric plug-in light duty vehicles. Capacity Retirements According to AEO, fossil fuel-fired capacity will make up the largest share of total retired capacity.

Overall, EIA forecasts that EIA predicts that coal will have the largest share of capacity retirements, with an expected EIA also projects that an additional 7. Capacity Additions According to AEO, the nation will need GW of new generating capacity between and to meet growing electricity demand and to offset the retirement of GW of existing capacity. EIA projects that these capacity requirements will be met by natural gas, renewable energy, coal, and nuclear power sources - in the order of expected contribution.

Of the new capacity projected to come online between and , EIA projects that approximately 63 percent will be natural gas-fired, 31 percent will be fueled by renewables, 3 percent will be by coal-fired, and 3 percent will be nuclear energy. Electricity Generation According to AEO, electricity generation from natural gas-fired facilities will increase to meet growing electricity demand and to offset losses in capacity from facility retirements.

EIA projects that coal-fired generation will remain the largest source of electricity throughout the forecast period, although its share of total U. At the same time, though, EIA projects that natural gas-fired power facilities will account for much of the new capacity built between and Coal-fired generation will decrease between and , reducing its share of total generation from 42 percent to an estimated 35 percent.

The anticipated decrease in the share of coal generation results primarily from rising construction costs. Also, concern regarding future greenhouse gas emissions limitations and current federal and State regulations contribute to coal's declining share of total generation. EIA projects that the share of total generation associated with natural gas-fired technologies will increase from 24 percent to 30 percent.

EIA projects that the share of total generation from renewable power sources will increase from 13 percent in to 16 percent of total generation in Nuclear power generation, however, is expected to decrease from 19 percent to 17 percent as a share of total generation. AEO projects that by , electricity prices will fall by 4 percent, but by will rise to above prices.

An increase in electricity prices between and will vary by sector, with the largest increase expected to occur in the industrial sector Overall, average end-use electricity prices are expected to be Baseload units are generally the newest, largest, and most efficient of the three types of units. The exiting heat is routed to a conventional boiler or to heat recovery steam generator for utilization by a steam turbine in the production of electricity.

This process increases the efficiency of the electric power generating unit. Distribution: The portion of an electric system that is dedicated to delivering electric energy to an end user. Electricity Available to Consumers: Power available for sale to customers. Approximately 8 to 9 percent of net generation is lost during the transmission and distribution process. Gas Turbine: A gas turbine typically consisting of an axial-flow air compressor and one or more combustion chambers, where liquid or gaseous fuel is burned and the hot gases are passed to the turbine.

The hot gases expand to drive the generator and are then used to run the compressor. Generation: The process of producing electric energy by transforming other forms of energy. Generation is also the amount of electric energy produced, expressed in energy quantity units such as kilowatt-hours kWh and megawatt-hours MWh.

Gross Generation: The total amount of electric energy produced by the generating units at a generating station or stations, measured at the generator terminals. Hydroelectric Generating Unit. A unit in which the turbine generator is driven by falling water. Intermediate load: Intermediate-load generating units meet system requirements that are greater than baseload but less than peakload.

Diesel or gas-fired engines are the principal fuel types used in these generators. Kilowatt-hours kWh : A measure of electric energy generated or consumed. The amount of energy generated from one Kilowatt of fully utilized capacity during one hour.

A Megawatt-hour MWh is also an energy measure and equals 1, Kilowatt-hours. Load: Refers to either demand for electricity or total electricity generated. Megawatt MW : Unit of power equal to one million watts. A watt is a measure of power, or the potential to produce or consume electricity or other energy.

Nameplate Capacity. The amount of electric power delivered or required for which a generator, turbine, transformer, transmission circuit, station, or system is rated by the manufacturer. Net Generation: Gross generation minus electricity used by the electricity generating facility or company. A corporation, person, agency, authority, or other legal entity or instrumentality that owns electric generating capacity and does not produce or sell electricity under a rate-regulation framework.

Nonutility power producers include qualifying cogenerators, qualifying small power producers, and other nonutility generators including independent power producers without a designated franchised service area that do not file forms listed in the Code of Federal Regulations, Title 18, Part Other prime movers include: geothermal, solar, wind, and biomass.

May 2A Economic Analysis for Final b Existing Facilities Rule Chapter 2A: Electric Power Industry Profile Peakload: A peakload generating unit, normally the least energy efficient of the three unit types, is used to meet requirements during the periods of greatest, or peak, load on the system. Also, for reporting purposes, a device that directly converts energy to electricity, e. Electric system reliability has two components: adequacy and security.

Adequacy is the ability of the electric system to supply customers at all times, taking into account scheduled and unscheduled outages of system facilities. Security is the ability of the electric system to withstand sudden disturbances, such as electric short circuits or unanticipated loss of system facilities. It is the unloaded section of synchronized generation that is able to respond immediately to serve load.

Steam Turbine: A generating unit in which the prime mover is a steam turbine. The turbines convert thermal energy steam or hot water produced by generators or boilers to mechanical energy or shaft torque. This mechanical energy is used to power electric generators, including combined cycle electric power generating units that convert the mechanical energy to electricity. System: Physically connected generation, transmission, and distribution facilities operated as an integrated unit under one central management or operating supervision.

Transmission: The movement or transfer of electric energy over an interconnected group of lines and associated equipment between points of supply and points at which it is transformed for delivery to consumers, or is delivered to other electric systems. Transmission is considered to end when the energy is transformed for distribution to the consumer. Aluminum 2. Chemicals and Allied Products 3. Food and Kindred Products 4. Paper and Allied Products 5.

Petroleum Refining 6. The profiles describe how the industries have changed over time in each of these dimensions and summarize key business outlook information for the industries. Key considerations in this assessment include 1 the ability of the regulated facilities to shift compliance costs to customers through price increases cost pass- through , and 2 the financial health of the industry and its general business outlook.

These detailed profiles are Appendices A-F. For each industry, this chapter reports historical profiles of: 1 output in terms of value of shipments, 2 employment, and 3 number of facilities and firms. However, EPA chose not to profile these additional industries because the b survey and other data indicate that there are very few regulated facilities and little cooling water intake capacity in any of these industries.

These values may differ from those reported elsewhere in the document, where data for earlier analysis years are in the SIC framework. To assess the potential for regulated facilities to recover compliance costs through price increases, EPA performed a market structure analysis for each industry that accounts for four factors: 1 fraction of industry output that is expected to be subject to the final rule, 2 industry concentration, 3 extent of competition in international markets, and 4 long-term historical industry growth.

EPA reviewed the following metrics for each industry: 1 capacity utilization, 2 net profit margin, and 3 return on capital. To illustrate, in , these industries represented approximately 21 percent of employment in the total U. The Food and Kindred Products Industry is the largest of the Primary Manufacturing Industries in terms of both facility and firm counts. This industry also accounts for the highest shares of employment and output, in value of shipments, of the Primary Manufacturing Industries.

The Chemicals and Allied Products Industry, the second largest in terms of facility and firm counts, accounts for a relatively high share of employment and value of shipments. On the other hand, the Petroleum Refining Industry boasts a relatively high value of shipments but is one of the smaller industries in terms of facility and firm counts and also has a smaller share of employment.

In terms of employment, among the Primary Manufacturing Industries, the Aluminum Industry supports the least employment, while the Steel and Paper and Allied Products Industries provide significantly higher levels of employment. In the past decade, all of the Primary Manufacturing Industries experienced declining employment. Only the Food and Kindred Products Industry saw increasing employment since In contrast, the Food and Kindred Products Industry has seen a major expansion in the number of facilities and firms.

Output increased the most in the Petroleum Refining Industry, more than doubling between and The following sections review these industries" participation in the U. On the other hand, the Aluminum Industry remained the smallest of the industries throughout this period. Figure 2B-1, below, displays value of shipments for the Primary Manufacturing Industries from to Output for two of the Primary Manufacturing Industries - Aluminum and Paper and Allied Products - declined, on an inflation-adjusted basis, from to , while output for the remaining industries increased.

The declining output for the Aluminum and Paper and Allied Products Industries reflects several factors, including a longer-term trend of declining importance in the U. All of the Primary Manufacturing Industries experienced declining output during the recent recession, but since then, have begun to recover.

The declines during the recession were greater on a percentage basis for the economically cyclical industries Aluminum, Chemicals and Allied Products, Paper and Allied Products, Petroleum Refining, and Steel , and least for Food and Kindred Products, which is a consumer-staples industry and therefore, less cyclical. While the industry saw major decreases in and due to the economic downturn, in value of shipments rebounded with a 28 percent increase. In , during the economic downturn, the industry experienced a nearly 20 percent decline in value of shipments, but began to recover with a 15 percent increase in Intermittent declines interrupted this growth, with the greatest decline about 4 percent occurring in The industry experienced a major drop in value of shipments during the recent recession, but began to rebound in with a 5 percent increase.

The industry saw a large setback in , but began recovering in with a steep rise in value of shipments. Value of shipments for the industry declined at the beginning of the s, but 41 All dollar values reported in this chapter are in constant dollars of the year Value of shipments declined steeply in , but rose steeply in DOC, , , , and EC. Employment levels have varied for the manufacturing industries over the past two decades, but overall, the industries have seen a decline in employment.

These declines reflect increasing labor productivity, but also declining total output, in particular, for the Aluminum and Paper and Allied Products Industries. In , the industry employed , workers. However, this rise was largely due to a large recorded increase in employment in , and employment has since declined. The large increase in employment between and coincides with the conversion from SIC codes to NAICS codes, which includes redefinition of some industry sectors and possible assignment of establishments and employment into difference industry-level sectors.

This likely explains the magnitude of change in that year. Absent that single year of substantial increase, employment would likely be flat over the total period. However, the past decade saw a slight rise in employment of nearly 2 percent, from 62, employees in to 63, employees in The Aluminum and Petroleum Refining Industries are the smallest in terms of facilities and firms, with the Paper and Allied Products Industry being only slightly larger. Figure 2B-3 shows the number of facilities in each industry from to , while Figure 2B-4 shows the number of firms.

The industries have experienced varying changes in numbers of facilities and firms, with the counts in some industries increasing, while decreasing in others. In some instances, these changes reflect overall economic conditions - periods of economic growth and recession; in others, the industries are experiencing longer-term decline. Changes in industry concentration also contribute to changes in the number of firms and, to a less degree, facilities in these industries.

See the profile appendices for discussion of these factors. In the past decade, both counts rose except for declines in , , and during the most recent economic downturn. In , facility counts rebounded with a slight rise, reaching facilities, while firm counts continued to decline to In , both facility and firm counts declined, ending the period of analysis at 4, facilities and 3, firms.

EPA reviewed five factors, which together indicate the likely ability of cost pass-through for facilities in each of the Primary Manufacturing Industries. In general, the greater this fraction, the more likely that facilities incurring compliance costs will be able to pass on regulation-induced increases in production costs - along with those other facilities in the industry that are also incurring those costs.

EPA used a threshold of 50 percent to assess whether this factor would contribute to regulated facilities in a given industry being able to pass forward compliance costs as price increases. Indicates the extent to which the U. Higher competition from imports reduces cost pass-through potential for regulated facilities.

In general, the greater the share of facilities' revenue from foreign sales, the lower the cost pass- through potential of regulated facilities. A factor in each industry's overall business outlook. Growing industries presumably face growing demand for their products, with greater potential for increasing prices 4, 3.

Declining industries presumably face growing competition within a declining market, with less potential for increasing prices in response to increased production costs. Table 2B-1 summarizes EPA's findings relative to these industry-level factors. In the table, a indicates that a factor represents potential support for an industry's ability to pass costs to consumers while a indicates a factor that would make cost pass-through less likely.

As shown in the table, none of the Primary Manufacturing Industries consistently displays strong potential for cost pass-through across the factors analyzed. For instance, the Aluminum Industry has a relatively large percentage of production in regulated facilities, though below 50 percent, and benefits from some industry concentration and minimal export dependence. However, this industry is exposed to high competition in domestic markets from international suppliers and has experienced negative long- term industry growth relative to the U.

The Petroleum Refining Industry appears to have the greatest likelihood of passing on costs but is still subject to domestic competition due to a relatively small fraction of the industry being subject to regulation and to a low amount of industry concentration. EPA assumed that none of the Primary Manufacturing Industries will be able to pass on compliance costs to consumers.

This assumption has the potential to overstate impacts to Manufacturers to the extent that facilities in some industries may in fact be able to pass some compliance costs to consumers. This column indicates whether the long-term growth rate is above or below the threshold value of 2. EPA analysis for this report 2B. EPA assesses that facilities in industries with a Regulated Fraction exceeding 50 percent are likely to be able to pass on compliance costs, because a greater fraction of production in the industry is subject to rule requirements, and is expected to incur compliance costs than is not.

The number of regulated facilities as a fraction of industry totals is small across all industries, with regulated Manufacturers in the Petroleum Refining having the largest fraction of facility counts at 11 percent. The fraction does not exceed 5 percent for any of the remaining industries. Regulated Fractions of production based on value of shipments are generally higher, with the Steel Industry accounting for the largest share 48 percent , followed by the Aluminum Industry 46 percent , Paper and Allied Products Industry 39 percent , and Petroleum Refining Industry 38 percent.

The fraction for the remaining industries does not exceed 14 percent. While Regulated Fractions for two of the industries - Aluminum Industry and Steel Industry -are nearly 50 percent, the percentage of value of shipments subject to this final rule does not exceed 50 percent for any of the Primary Manufacturing Industries.

The Regulated Fractions for the Primary Manufacturing Industries all suggest limited potential for cost pass-through. For this analysis, facility revenue was used as a measure of output for sample facilities. This includes revenues for all regulated facilities in the Primary Manufacturing Industries, excluding baseline closures.

EPA estimated number of regulated facilities and regulated facility revenues using technical weights. Regulated facility counts and associated revenue exclude baseline closures and exclude 13 facilities with NAICS codes that do not fall into any of these six Primary Manufacturing Industries see Appendix H.

EPA, 2B. Department of Commerce DOC. The HHI is a generally accepted measure of market concentration used by the U. Department of Justice DOJ to evaluate mergers: the higher the HHI value, the greater the degree of concentration and potential for market power, and the greater the potential for cost pass-through if the regulated facilities are owned by the more dominant firms in an industry.

Based on the U. Department of Justice DOJ guidelines for evaluating mergers, an HHI under 1, indicates an unconcentrated market, an HHI between 1, and 1, indicates moderate concentration, and an HHI in excess of 1, indicates concentrated markets. The summary findings for industry concentration are as follows: 42 The values reported in this section are for the entire industries, as opposed to only the individual NAICS codes of facilities potentially subject to this final rule, to assess the ability of regulated facilities to pass on costs to consumers.

EPA concluded that facilities in only the Aluminum, and Chemicals and Allied Products Industries might possess relatively weak cost pass-through potential, based on the moderate concentration finding. All of the remaining industries show little potential for cost pass-through based on industry concentration. Sectors in bold are concentrated based on DOJ criteria. Sectors in italics are moderately concentrated based on DOJ criteria. In general, the greater the competition from imports - whose production is not subject to the final rule - the lower will be the cost pass-through potential for regulated facilities.

In effect, the presence of import competition adjusts the information on fraction of domestic output that is subject to the final rule Section 2B. EPA calculated import penetration as total imports divided by total value of domestic consumption in that industry where domestic consumption equals domestic production plus imports minus exports. The estimated import penetration ratio for all U. EPA determined that industries with import ratios close to or above 28 percent would more likely face stiff competition 2B May Economic Analysis for Final b Existing Facilities Rule Chapter 2B: Industry Profiles - Manufacturers from foreign firms and thus would be less able to pass compliance costs through to customers.

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