boosting pulp and paper with science - fastmarkets …...what is innovation for us at innv entia?...

Foresight driven innovationBoosting Pulp and Paper with Science

Version for the conference binder with speech bubbles to guide you through the presentation.the presentation.

www.innventia.com © 2016 11

Fredrik Rosén, MBA, MScDirector Market Strategy [email protected]

I have added speech bubbles to guide you through the slides. Questions? Don't hesitate to get in touch!

Fredrik Rosén, MBA, MScDirector Market Strategy


[email protected]

What is Innovation for us at Innventia? Let’s start with an example! Together with Swerea we are now able to present the worlds first model car (toy size…) with a roof made of a composite using carbon fibre based on 100% softwood lignin. The car has also been equipped with a battery in which lignin-based carbon fibre is used as the electrode material.


Cool right?

Want to see more innovative demonstrators from Innventia? CEPI included five of our demonstrators in their recent publication ”the Age of Fibre”.


b e

Ok… what does this guy have to do with the pulp and paper industry??? Wait and see…industry??? Wait and see…


Innventia is a world-leading research institute that works with innovations based on forest raw materials. We apply the knowledge bank and process technology of the forest industry, develop it further and look for new opportunities for our customers and partners.


We call our approach “Boosting business with science”.


When looking for new opportunities for cellulose and for the forest industry, we apply two different balancing filters: the first one relates to the balance of the traditional production lines for the pulp and paper industry with the new and innovative opportunities. Finding this balance is crucial to the long-term well b i f th i d tbeing of the industry.

The Louvre in Paris is a perfect symbol of the harmony between tradition and new opportunities. As a matter of curiosity, the modern paper machine (as we know it today) was invented at the same time as the L dLouvre opened as a museum.


Yet another balancing act, that needs to be considered, if found when consideringYet another balancing act, that needs to be considered, if found when considering the need of both massive high-tonnage productions and smaller volumes of (hopefully) high-margin products. Who knows, the small niche products of today may grow to become big and strong in a near future.


STOCKHOLM

TRONDHEIM

210 employees

Unique pilot facilities

Industrial owners 71%

A no dividend organization


Innventia’s Research AreasInnventia s Research Areas

Test & Demo


Test & DemoAnalysis & Testing

The innovation chainThe innovation chain

Project idea Knowledge platform Technology platform Demonstration Implementation


eThe Innventia WayeThe Innventia Way


ee


2013 2014 0 3 0

“The two Innventia Global Outlook Reports “Packaging 2020” and “Papermaking Towards the Future”.


Vision Forecast

Since Global Outlooks are a studies about the future, one could assume that we are trying to describe a vision for the future, or maybe a forecast. Naturally, both visions and forecast are interesting, yet neither is the Innventia way to work with foresight studies.


To us working with future studies is like training to drive a car in a foggyTo us, working with future studies is like training to drive a car in a foggy autumn day. When you do it, you rely on your experience of interpreting signs and signals. Indeed traffic signs are designed so that we can understand their meaning even when we just can see their shape.

When you have trained and you manage to react quickly to what happens around you, then you can drive home safely. Or, leaving the world of analogies, steer your company to a successful future.


Scientifically GlobalScientifically possible

Globaltrends


We are proud of the methodology we use for our studies. We identify people in our organization with deepWe are proud of the methodology we use for our studies. We identify people in our organization with deep understanding of science and technology in their fields. Here you see Fredrik Rosén and Paul Krochak, the project managers of our first two studies ”Packaging 2020” and ”Papermaking towards the future”.


…and we ask them to speak “with the rest of the world”. We interview people in business, within and outside of our industry, in all functions in their companies,

i d i k ti l CEO R&D di t W i t iengineers, designers, marketing people, CEOs, R&D directors... We interview associations, end users, architects, non-governmental organizations, political parties...


When we have listened to the world outside of Innventia, we try and find links and trends, relationships and meaning…


Then we quantify our findings via expert studies or consumer surveys…


We are happy to have our main office within the campus of KTH, The Royal Institute of Technology, the largest technical university in Scandinavia. This gives us access to the opinion of the new generations, a good “reality check” for anyone who hopes to discuss the future.


And naturally, we read a lot… both from digital sources and on the good old cellulose-based substrate, paper.


60 questions500 respondents per countryMarket Surveya et Su ey

SwedenPopulation: 9.5 million (21/km2)GDP per capita: $56 900

USAUSAPopulation: 315 million (33.7/km2)GDP per capita $48 400

IndiaPopulation: 1 210 million (370/km2)GDP per capita $3 801GDP per capita $3 801


What material do you perceive as the least en ironmentall friendl ?least environmentally friendly?

48%

4% 47%64%

48%

15% 16%48% 48%

29% 13%62%and yes the reason why the sum can be > 100% is because you could


….and yes, the reason why the sum can be > 100% is because you could choose multiple options.

Share of respondents who rather or very often refrain from buying products because the product's packaging isfrom buying products because the product s packaging is perceived to be bad for the environment

60%60%

70%

40%

50%

30%

40%

22%20%

10%

20%

0%

10%

US SWEDEN INDIA


I. Old, Urban and Middle-class

II. E-tailing Forever

III. Intense Legislation

IV. Proud Packaging

V. Lean, Green and Conven(ient)

VI. Pricey Materials & Valuable Waste

VII. Sustained Sustainability

If you want to read more you can order the report for free.


Let’s focus on our latest Global Outlook!


How many years will it take untilHow many years will it take until…

6%

9%

24%

23%

32%

38%

21%

23%

9%

7%

8%

...50% of textiles used in the world are non-cotton bio-based?

30% of new business are paperless?

3% 36% 38% 21% 2%...80% of newspaper production capacity in North

America has vanished?

5%

17%

30%

21%

25%

30%

26%

21%

10%

5%

4%

6%

60% f d t t bl b k t th f t?

...60% of papermachines are flexible between multiple paper qualities/grades?

14%

5%

34%

30%

31%

25%

19%

26%

1%

10%

1%

4%

...60% of packaging are traceable back to the paper mill?

...60% of paper products are traceable back to the forest?

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Already the case 1-5 years 6-10 years 11-20 years 20+years Never will be the case


What feature of paper will be most desirable?What feature of paper will be most desirable?

What’s most interesting is that 2 of the top 3What s most interesting is that 2 of the top 3 relate indirectly to the product performance itself! Traditional features of paper ranked at the very bottom of this survey. We are seeing a clear shift in awareness within the industry for the safety ofin awareness within the industry for the safety of human health and of the environment.


TRENDS WITHIN THE INDUSTRY

Resource efficient

Declining demand in

printingIncreasing

value of

Diminishing pool of

Risk aversion & efficient

processesprinting

and newsprint

value of waste skilled

laborproduct safety

FromFrom paper to pulp to

biobusiness

From scale to scope of

d t

Restructuring of the

industry

Demand driven

innovation


biobusiness products industry innovation

Yet another issue with recycling within the paper industry is that we talk a lot about “recycling” but what we actually do is rather


rather…

…downcycling, which means that the quality of the material, already after the y g, q y , yfirst iteration, is significantly lower that when it was virgin. This issue is discussed already in the classic work “Cradle to Cradle” by McDonough and Braungart (2002). Now the question is if downcycling is the best we can do in the forest industry with the materials of today (paper) and tomorrow, or…


y y (p p ) ,

…maybe we could go over to cycling materials applying the science, technology, expertise and understanding of today.


Wouldn’t it be great if we could be able to say that the forest based materialsto say that the forest-based materials of today (paper, for example) as well as those of tomorrow are actually “100% recycled” instead of “recyclable”?recyclable ?

We believe that this is one exciting field for the future!


The global paper recycling rate stands at about 58%. Some developed countries have achieved as high as 70 to 75%. Many

developing countries are establishing infrastructure to help improvedeveloping countries are establishing infrastructure to help improve paper recycling rates.

(CEPI ICFPA RISI)


(CEPI, ICFPA, RISI)

2013 2014 0 3 0


2013 2014 20160 3 0 0 6

A CELLULOSE-BASEDSOCIETY


A Cellulose-Based Society

”A Cellulose-Based Society” is the name of the thirdA Cellulose-Based Society is the name of the thirdGlobal Outlook Initiative at Innventia. The project started in March 2015 and it will publish its final report on May 24th, 2016 at iwb week in Stockholm.

Please feel free to share this file within your network and keep the conversation alive in our discussion group on LinkedIn.


The most common building block in nature

A base for a circularbio-based economyy

The vision of the ”A Cellulose-Based Society” is that cellulose, the most common building block used by nature, can become a base for a circular bio-based economy. We believe that it is possible to replace many of todays linear processes where products go from cradle to grave ending up asreplace many of todays linear processes, where products go from cradle to grave ending up as waste, with new processes and business models in balance with natural resources. We believe that cellulose, together with the other raw materials growing in our forests, is a key in the shifts to come.


Thank you!yQuestions? Don't hesitate to get in touch!

Fredrik Rosén Director Market StrategyFredrik Rosén, Director Market [email protected]


Where can I get the reports?g p

http://www.innventia.com/packaging2020 http://www.innventia.com/papermakingtowardshttp://www.innventia.com/packaging2020 http://www.innventia.com/papermakingtowards

They are (of course!) only available on paper …but we send them for free!


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