Andritz AG · VIE:ANDR
Andritz — Investor Day (2009)
44 slides from Andritz's investor day presentation, 2009
Slide 1: ANDRITZ PULP & PAPER – focus on biomass
ANDRITZ PULP & PAPER – focus on biomass Market drivers, technologies, and products
Slide 2: Contents
ANDRITZ Capital Market Days 2009 Contents ANDRITZ PULP & PAPER – overview Biomass and market drivers ANDRITZ’s products in biomass Summary and conclusions 2 ANDRITZ PULP & PAPER – Capital Market Days 2009, Spain
Slide 3: Full line supplier: business lines
Full line supplier ANDRITZ PULP & PAPER business lines Customers Main products Pulp mills Complete lines for chemical, mechanical, and recycled fiber production. Paper mills Complete lines for tissue and board. Stock preparation and approach flow. Power generating industry Bubbling fluidized b
Slide 4: Processes and equipment: full line capability
Processes and equipment Full line capability Chemical pulp Baling Cooking Washing Screening Bleaching Dewatering Drying Market pulp Palletizing Chemical recovery Calanders Paper/board Stock prep. Board and Wood tissue machines Coating yard Tissue Mechanical pulp Refining Bleaching Dewatering Drying
Slide 5: Strong growth through organic expansion and acquisitions
Strong growth through organic expansion and acquisitions Focus: complementary products, technologies, and businesses Acquisitions Sales ANDRITZ PULP & PAPER (MEUR) 1990 Sprout-Bauer 1992 Durametal 1994 Kone Wood 1,462 1998 Kvaerner Hymac 1,304 1,327 1999 Winberg 2000 Ahlstrom Machinery 2000 Lamb Bal
Slide 6: Long-term development of profitability
Long-term development of profitability EBITA margin ANDRITZ PULP & PAPER (%) 7.3 6.1 6.1 6.2 6.0 Decline in profitability 5.8 5.8 6.1 5.5 5.6 from 2004 to 2008 5.0 4.3 mainly due to: 2.9* decline of service sales as % of total business area’s 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 H1 20
Slide 7: Global presence of ANDRITZ PULP & PAPER
Global presence of ANDRITZ PULP & PAPER Sales by region 2008 Europe: 41% Asia: 20% South America: 17% North America: 13% Others: 8% Employees by region 2008 (5,102 employees as of end of 2008) North America: 18% South America: 12% Europe: 61% Asia: 9% 7 ANDRITZ PULP & PAPER – Capital Market Days 200
Slide 8: Important references at a glance
Important ANDRITZ PULP & PAPER references at a glance SCA Obbola SCA Östrand UPM Pietarsaari Södra Värö UPM Kuusankoski Weyerhaeuser Mondi Syktyvkar Mercer Stendal Albany Weyerhaeuser Ence Navia Mondi Ruzomberok Valliant Portucel Cacia Marusumi Ohe Soporcel Lavos Zicunaga Hernani Tiger Huaihua Weyer
Slide 9: VCP – Votorantim Celulose e Papel, Brazil
VCP – Votorantim Celulose e Papel, Brazil World’s largest single-line pulp mill (1.3 mill. t/a pulp production) Order placed May 2007. Start-up in March 2009. Complete fiberline from digester to finished bales. Complete white liquor production plant. Wood Bleach Pulp Baling Cooking Washers y
Slide 10: Hunan Tiger Forest & Paper Group, China
Hunan Tiger Forest & Paper Group Co., Ltd., China 400,000 t/a pulp production Start-up August 2008. Softwood pulp production. Andritz’s scope of supply comprises: wood handling cooking washing screening and bleaching pulp drying and bale handling chemical recovery boiler and evapor
Slide 11: Chenming Zhanjiang, China
Chenming Zhanjiang, China 700,000 t/a pulp production Start-up 2011. Hardwood pulp production. Andritz’s scope of supply comprises: wood handling cooking washing screening and bleaching pulp drying and bale handling chemical recovery boiler and evaporation lime kiln and recaustic
Slide 12: Contents
ANDRITZ Capital Market Days 2009 Contents ANDRITZ PULP & PAPER – overview Biomass and market drivers ANDRITZ’s products in biomass Summary and conclusions 12 ANDRITZ PULP & PAPER – Capital Market Days 2009, Spain
Slide 13: Biomass – what is it?
Biomass – what is it? Woody/tree crops Wood chips, HW and SW-residual (birch, poplar, eucalyptus, etc.). Engineered high efficiency wood-crops (hybrid poplar, shrub willow, etc.). Cereals Corn stover/stalks, cobs and corn fiber. Wheat and barely straws. Sugar crop residual Sugar cane and e
Slide 14: Ways of converting biomass into heat/electricity and fuels
Ways of converting biomass into heat/electricity and fuels Heat/electric Market Power boiler power expectations Pelletising Heating Households warm water Heat/electric Integrated gasification combined cycle power Synthetic Synthetic natural gas Biofuel Gasification gas Bio-Diesel Fischer-Tropsch Bio
Slide 15: Driving forces for increased use of biomass
Driving forces for increased use of biomass Fast growing energy demand worldwide. Biomass is highly competitive. The need for renewable carbon sources in the chemical and metal industry will be in addition to the huge need for renewable energy. The costs for CO2 emissions (and other emission
Slide 16: Drivers for production of renewable fuels out of biomass
Drivers for production of renewable fuels out of biomass Climate change: need for reduction of green house gases. US Energy Independence and Security Act of 2007: Increase production of renewable fuels from 4.0 billion gallons to 36.0 billion gallons by 2022; thereof, 21 billion gallons to be de
Slide 17: Ambitious targets of the European Union
Ambitious targets of the European Union Final energy consumption EU-25, 2020, TWh Renewable energy deployment by sector: 100% = 15,000 TWh 3,000 120% Trans- 445 portation 20% 100% Heating 1,105 and cooling 80% Electricity 1,450 20% Business 20% EU Target Non- Rene- as usual efficiency 2020 renewable
Slide 18: Fuel tax credits in the USA and Canada
Fuel tax credits in the USA and Canada Government backed incentive programs to stimulate investments Canada: “Green transformation program” 0.16 CAD/liter black liquor fired – max. 1 billion USD. Funds must be spend during next three years for energy efficiency improvements, upgrades, and new
Slide 19: Contents
ANDRITZ Capital Market Days 2009 Contents ANDRITZ PULP & PAPER – overview Biomass and market drivers ANDRITZ’s products in biomass: Biomass and recovery boilers 2nd generation biofuels Gasification Pelletizing Summary and conclusions 19 ANDRITZ PULP & PAPER – Capital Market Days 2009
Slide 20: Pulp mill – biomass conversion into pulp and energy
Pulp mill – biomass conversion into pulp and energy The process Fiberline Woodyard Drying line Recovery island Power boiler Biomass boiler Water and Chemical effluent treatment plant 20 ANDRITZ PULP & PAPER – Capital Market Days 2009, Spain
Slide 21: Example: recovery island
Example Recovery island Recovery island incl. biomass boiler for pulp mill with capacity of 1 mill. t/a: Recovery efficiency of chemicals: 98%. Green electricity produced: 160 MW. Excess power generation: up to 80 MW recovery boiler. Investment in recovery boiler: ~150 MEUR. Investment pow
Slide 22: ANDRITZ biomass boilers
ANDRITZ biomass boilers New business with technology for green electricity markets Driver: high feed in tariffs in different countries depending on local legislation. Market outlook very good for Europe and US. 22 ANDRITZ PULP & PAPER – Capital Market Days 2009, Spain
Slide 23: Growing reference base for green energy production
Growing reference base for green energy production First boilers in operation Total order intake of the following orders more than 140 MEUR: Ence Navia, Spain, start-up 2008: steam flow 120 t/h power output 30 MWe Ence Huelva, Spain, start-up 2010: steam flow 195 t/h power output 50 MWe Port
Slide 24: Contents
ANDRITZ Capital Market Days 2009 Contents ANDRITZ PULP & PAPER – overview Biomass and market drivers ANDRITZ’s products in biomass: Biomass and recovery boilers 2nd generation biofuels Gasification Pelletizing Summary and conclusions 24 ANDRITZ PULP & PAPER – Capital Market Days 2009
Slide 25: Why ANDRITZ focuses on 2nd generation biofuels?
Why ANDRITZ focuses on 2nd generation biofuels? Only 2nd generation biofuels fulfill the ultimate goal to cut green house gas emissions substantially: availability of raw material, CO2-efficiency, no competition with food. Strong believe only in processes with highest efficiency and lowest
Slide 26: Ethanol production: comparison 1st and 2nd generation
Ethanol production Comparison 1st and 2nd generation New challenges producing cellulosic ethanol vs. corn ethanol: 26 ANDRITZ PULP & PAPER – Capital Market Days 2009, Spain
Slide 27: Cellulosic ethanol vs. corn ethanol
Cellulosic ethanol vs. corn ethanol Source: http://www.energy.gov/news/4827.htm 27 ANDRITZ PULP & PAPER – Capital Market Days 2009, Spain
Slide 28: From biomass to ethanol
From biomass to ethanol CO2 Ethanol Biomass Hydrolysis Lignin Wood chips Pre-hydro (Dil. Acid) grasses SteamEx PreTreatment Agrarian residuals (some hemi’s dissolved) 28 ANDRITZ PULP & PAPER – Capital Market Days 2009, Spain
Slide 29: ANDRITZ's expertise in 2nd generation fuels
ANDRITZ’s expertise in 2nd generation fuels Patents, pilot plants, and test laboratory Development of pretreatment system ready and several patents filed: Sold six pilot plants based on ANDRITZ patents to leaders in the industry. Own test laboratory in full operation: 1,900 m2 laboratory fac
Slide 30: ANDRITZ bio-ethanol process
ANDRITZ bio-ethanol process Feedstock handling Pre-hydrolysis Washing C6 Steam C5 explosion Enzymatic Enzymatic hydrolysis hydrolysis Fermentation Distillation Separation Evaporation? Lignin ANDRITZ core Dehydration Power boiler competence Ethanol Power 30 ANDRITZ PULP & PAPER – Capital Market Days
Slide 31: Contents
ANDRITZ Capital Market Days 2009 Contents ANDRITZ PULP & PAPER – overview Biomass and market drivers ANDRITZ’s products in biomass: Biomass and recovery boilers 2nd generation biofuels Gasification Pelletizing Summary and conclusions 31 ANDRITZ PULP & PAPER – Capital Market Days 2009
Slide 32: Biomass gasification: technology alternatives
Biomass gasification Technology alternatives Fixed bed Bubbling fluidized bed Circulating fluidized bed Limited in size (~10 MWth). Atmospheric 10-50 MWth. Atmospheric 20-150 MWth. Gas quality limits applications. Pressurized 30-150 MWth. Pressurized 50-300 MWth. 32 ANDRITZ PULP & PAPER
Slide 33: Biomass gasifier applications
Biomass gasifier applications Fuel gas Co-generation (Co-)firing IGCC Syngas for kilns (gas engine) (boiler) (gas turbine) production 10-60 MWth. 10-50 MWth. 20-150 MWth. 10-50MWth. 150 MWth. Atmospheric CFB Low pressure Atmospheric CFB. Pressurized BFB. Pressurized BFB (BFB coul
Slide 34: UPM – Biofuel To Liquid (BTL) project
UPM – Biofuel To Liquid (BTL) project UPM-Kymmene is one of the leading global forestry companies. UPM announced in October 2006 that it prepares to become a significant producer of renewable biofuels, like biodiesel. UPM, ANDRITZ and Carbona cooperate on the development of the technology for
Slide 35: Contents
ANDRITZ Capital Market Days 2009 Contents ANDRITZ PULP & PAPER – overview Biomass and market drivers ANDRITZ’s products in biomass: Biomass and recovery boilers 2nd generation biofuels Gasification Pelletizing Summary and conclusions 35 ANDRITZ PULP & PAPER – Capital Market Days 2009
Slide 36: Development of global wood pellet market
Development of global wood pellet market Strong growth expected 140,0 140.0 120,0 120.0 100,0 100.0 Million tons 18% growth p.a. 80,0 80.0 25% growth after 2010 60,0 60.0 Other projections (2020): 40,0 40.0 Essent 142 mill. t/a Rotterdam Port 130 mill. t/a 2008 20,0 20.0 AEBIOM 150 mill. t/a 9
Slide 37: Drivers for growth of pellet consumption
Drivers for growth of pellet consumption The current pellets are excellent feedstock for co-firing with coal, dedicated biomass powered plants, and residential heating. Coal substitute Conversion to pellets: Co-firing in boilers Cellulosic Woodyard biomass Drying Pelletizing Residential he
Slide 38: Well proven technologies: global market leader in wood pelleting plants
Well proven technologies ANDRITZ – global market leader in wood pelleting plants Global installed base is about 440 wood based pellet production plants. ANDRITZ has supplied equipment to more than 250 of these wood pelleting plants. Half of the global production of wood pellets is produced by
Slide 39: Example: pellet mill, 1,000,000 t/a capacity
Example: pellet mill, confidential customer Capacity of 1,000,000 t/a Woodroom Bark pile 2,400,000 m3 wood/a Chip silo 10,000 m³ debarking 2 x 190 m3/h Drying 4 x 31 t/h Pellet production 125 t/h 36 pellet machines Complete ANDRITZ pellet plant with clear responsibilities 39 ANDRITZ PULP &
Slide 40: Preparation of raw material for drying/pelleting
Preparation of raw material for drying/pelleting Cleaning Debarking Chipping Screening Storing Mixing and dozing to drying Wood infeed (softwood & hardwood) Excellent “pellet chip” quality is produced by the HHQ-Chipper™ 40 ANDRITZ PULP & PAPER – Capital Market Days 2009, Spain
Slide 41: Drying: preparation/refining of biomass
Drying Preparation/refining of biomass for further usage Drying systems Wet inlet material Dry product Sludge Drying 35-50% dry solids. >60-97% dry solids. Low heating value. Free flowing. Biological active. Increased heating value. Biological stable. Reduced bulk density. 41 ANDRITZ
Slide 42: Contents
ANDRITZ Capital Market Days 2009 Contents ANDRITZ PULP & PAPER – overview Biomass and market drivers ANDRITZ’s products in biomass: Biomass and recovery boilers 2nd generation biofuels Gasification Pelletizing Summary and conclusions 42 ANDRITZ PULP & PAPER – Capital Market Days 2009
Slide 43: Summary and conclusions
Summary and conclusions Biomass market Strong market growth to continue due to growing stringent environmental regulations and support mechanisms from various governments. Fast growth of technology for biomass conversion will increase competitiveness of biomass based products. Growing project
Slide 44: Disclaimer
Disclaimer Certain statements contained in this presentation constitute ‛forward-looking statements.’ These statements, which contain the words ‛believe’, ‛intend’, ‛expect’ and words of similar meaning, reflect management’s beliefs and expectations and are subject to risks and uncertainties that ma