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HomeMy WebLinkAboutNC0000272_BleachProcessEnvEval_20010612 •� r BLUE RIDGE PAPER PRODUCTS INC. June 12, 2001 I (j JW 1 2 20 IIJI Forrest Westall WATER PpLIALli f SECTION ASHEVILLC REGIONAL OFFICE Regional Supervisor Division of Water Quality 59 Woodfin Place Asheville,NC 28801 Dear Mr. Westall, Attached is the Bleach Environmental Process Evaluation and Report prepared by Dr. Norm Liebergott, PhD Liebergott & Associates Consulting Inc. and Mr. Lewis Shackford GL&V Pulp Group Inc. Please contact me if you have any questions regarding this report. Sincerely, Derric Brown l Manager, Environmental Affairs copy: Don Anderson [-Keitfi Iiaynes:7 Mike Myers 175 Main Street • P.O. Box 4000 Canton, North Carolina 28716 • Phone: 828-646-2000 Raising Your Expectations V BLUE RIDGE PAPER PRODUCTS, INC. FOR: CANTON MILL AND CLEAN WATER FUND OF NORTH CAROLINA ON BEHALF OF THE ENVIRONMENTAL COALITION ON BRPP BLEACH ENVIRONMENTAL PROCESS EVALUATION AND REPORT JUNE 8, 2001 V GIN JUN I r 7.001' _� ,AL OFFICE BLUE RIDGE PAPER PRODUCTS, INC. FOR: CANTON MILL AND CLEAN WATER FUND OF NORTH CAROLINA ON BEHALF OF THE ENVIRONMENTAL COALITION ON BRPP BLEACH ENVIRONMENTAL PROCESS EVALUATION AND REPORT JUNE 812001 NLJUN 12 WATER ppUALITY SECTION ASHEVILLE REGIONAL OFFICE vGIN BLUE RIDGE PAPER PRODUCTS, INC. FOR: CANTON MILL AND CLEAN WATER FUND OF NORTH CAROLINA ON BEHALF OF THE ENVIRONMENTAL COALITION ON BRPP BLEACH ENVIRONMENTAL PROCESS EVALUATION AND REPORT JUNE 812001 CONFIDENTIAL VGLAI ACKNOWLEDGEMENTS The authors of this report gratefully acknowledge several Blue Ridge dedication of their time during the site visit, and sharing of their knowledge and expertise of the Blue Ridge Paper Products Inc. mill operations during the course of this study. Michael P. Ferguson Derric Brown Bill Adams Melanie Hager Randy Worley Jimmy Deitz Stephen J. Single RESPECTFULLY SUBMITTED Dr. Norman Liebergott, PhD Lewis D. Shackford, P.E., and Liebergott & Associates Consulting Inc. William J. Miller 5825 Shalom Avenue, Suite 802 GL&V Pulp Group, Inc. Cote St. Luc,Quebec, 150 Burke Street Canada H4W 3A5 Nashua, NH 03060 USA TEL. (514) 369-5575 TEL. (603) 598-7840 FAX (514) 369-5575 FAX (603) 598-7830 E-mail: liebergott(aDsymoatico.ca E-mail: lewis.shackfordeglv.com E-mail: bill.miller(g)glv.com JUNE 89 2001 CONFIDENTIAL 1. VGnt Table of Contents • Executive Summary 3 • Background and Introduction 8 • Environmental Performance Benchmarking 11 • Site Audit and Performance Review 13 • Introduction 13 • Recommendations 13 • Benchmark Operation 14 • No. 1 and No. 2 Fiberline Audit Observations 19 • Overview of Technology Options 21 • Introduction 21 • In-Process Options 21 • Pulping Technologies 23 • Bleaching Technologies 29 • Emerging Pulping and Bleaching Technologies 38 • Pulp Washing and Effluent Flow Reduction 40 • External Treatment Options 44 • Jacobs Study Commentary 44 • Emerging External Treatments 46 • Methods for Recycling Effluent 48 • References 51 • Options for Improved Environmental Performance 57 • Basis for Study 57 • Process Optimization 62 • Conversion to Extended Delignification 64 • Conversion to Two Stage Oxygen Delignification 67 • Conversion to ZD stage 71 • Conversion of EO/EOP stages to (PO)/PHT stages 77 • Implementation of the BFR® process on the hardwood line 82 • Conversion to Totally Chlorine Free (TCF) bleaching 84 Appendices 88 1. Confidentiality Agreement 89 2. Resumes of Audit Personnel 93 3. Glossary of Terms 99 4. Blue Ridge Paper Products Inc. Fiberline Overview 101 CONFIDENTIAL 2 V Executive Summary Blue Ridge Paper Products Inc. has undertaken a continuous, comprehensive program to improve effluent quality, particularly in the level of color discharge, since purchasing the mill from Champion International Corporation. As a program initiative towards, Blue Ridge Paper Products Inc. and the Clean Water Fund of North Carolina contracted Liebergott and Associates, Inc., and GL&V Pulp Group to evaluate the current operation of the fiberlines, and prepare a report identifying options for effluent color reduction at the facility. A Site Review and Audit was conducted at the mill from April 30 — May 2, 2001. Process Optimization A preliminary review of the operation of the hardwood and pine fiberlines was conducted, and several opportunities were identified to potentially reduce operating cost of the fiberlines. The current operation of the fiberlines has been compared to the expected performance when fully optimized. Specific recommendations have been made to improve the performance in Site Audit and Performance Review: • Repair and/or replace the medium consistency pumps feeding the oxygen reactors and the brightness and residual sensors on all of the chlorine dioxide stages. • Optimization of the performance of the No. 3 softwood brown stock washer, and the hardwood D, and Eo washers. • Investigating the potential to reduce digester k-No. variability, and increase the frequency of k-No. monitoring and reporting. • Optimization of chemical application in each bleaching stage. • Consider implementing a 'refresher" operator training course We project that these optimization efforts may lead to a reduction of chlorine dioxide use of 8 #/ton on hardwood and 11 #/ton on hardwood and pine, respectively, which represents a significant operating cost savings. The reductions in chlorine dioxide use should also lead to reductions in effluent AOX and color; however, there is no published commercial operating data to support the quantitative impact of these changes on environmental parameters. We believe that color reductions of up to 700 #/day on hardwood and up to 400 #/day on pine may potentially be achieved. Options for Improved Environmental Performance The technologies that may be considered for short term or long term implementation have been summarized in an Overview of Technology Options. CONFIDENTIAL 3 VGLAI There are two different strategies that may be considered to achieve color reduction: "In-Process" changes and External Treatment ("end-of-pipe"). In-Process Changes Five key technologies, which modify the cooking, oxygen delignification, or bleaching operation for the hardwood and/or pine fiberlines, have been evaluated in further detail. In addition, we have commented on the option to add the BFR® process on the hardwood line. Estimated color reductions of 1430-5400#/day for hardwood and 1730-2800#/day for pine may be achieved using modifications to the fiberline and maintaining ECF pulp production. An option for the conversion of the fiberlines to produce TCF pulp has also been included, with a potential color reduction of 9750-12850 #/day for hardwood and pine, respectively. However, we consider this to be a high risk option, as there is no current commercial experience with TCF bleaching for pulp grades similar to those produced at Blue Ridge Paper Products, Inc. The option is included as a reference, such that changes made to the fiberlines now may ultimately be "building blocks" towards a TCF concept, when demonstrated to be viable for the Canton mill. The impact of these options on the mill operation are summarized in tabular form on the next two pages, and detailed in the Options for Improved Environmental Performance. There is the potential for greater color reduction by combining two or more of these technologies on hardwood or pine pulp; however, the benefits in color reduction are not additive, so various combinations of technologies need to be separately estimated. All environmental impact projections are based on outflow from the bleach plant to the effluent treatment plant. External Treatment A number of emerging technologies for effluent treatment have been described in the Overview of Technology Options. These options may be considered for color reduction, but this strategy incurs significant capital expenditure while increasing operating and maintenance costs. The recent study completed by Jacobs Engineering has been reviewed and the authors concur with the conclusions from that report. The summary of options from the Jacobs report is reproduced in the next pages. Y One or more of these external treatments may be considered for treatment of individual sewer streams, but this is beyond the scope of this study. The treatment of whole mill effluent by any of these technologies does not appear financially viable. CONFIDENTIAL 4 SUMMARY OF OPTIONS FOR ENVIRONMENTAL IMPROVEMENT HARDWOOD LINE Extended Two Stage ZD Conversion (PO)/PHT Addition of TCF Delignification Oxygen Conversion BFR® Conversion Color Current#/Day 14,270 14,270 14,270 14,270 14,270 14,270 Reduction % 20% 10% 25% 33% 27 90% Reduction #/Day -2,850 -1,430 -3550 -4700 -5400 -12,850 Impact Water Use, gal/ton N/C N/C N/C N/C 0 -2400 Effluent Flow, gal/ton N/C N/C N/C N/C - 2200 -1900 AOX kg/t -0.11 -0.06 -0.27 -0.3 -0.16 background Toxicity N/C N/C N/C N/C N/C N/C Temperature N/C N/C N/C increased increased Increased Pulp Quality increased N/C N/C N/C N/C decreased Commercial Experience High High Moderate Moderate Low Low Operating Cost decreased decreased decreased increased increased increased Capital Cost Very High Moderate Moderate/High Moderate/Low Very High Very High Commercial Experience Capital Cost Low 0-3 similar installations in operation Low <$1 million Moderate 4-10 similar installations in operation Moderate $1-5 million High >10 similar installations in operation High $5-10 million Very High >$10 million Capital costs are preliminary estimates NOTES: 1. Technologies are.not additive in impact; combinations of two or more technologies require further estimation. 2. All technologies r1equire more detailed study for performance and installation feasibility. 3. Capital cost estimates are limited to only changes in the fiberline equipment; utilities and support services not included. 4. All environmental impact projections are based on outflow from the bleach plant to the effluent treatment plant. 5 v cwv (SUMMARY OF OPTIONS FOR ENVIRONMENTAL IMPROVEMENT SOFTWOOD LINE Extended Two Stage ZD Conversion (PO)/PHT TCF Delignification Oxygen Conversion Conversion Color Current#/Day 10,830 10,830 10,830 10,830 10,830 Reduction % 20% 16% 20% 26% 90% Reduction #/Day -2170 -1,730 -2800 -2800 -9,750 Impact Water Use, gal/ton N/C N/C N/C N/C -2400 Effluent Flow, gal/ton N/C N/C N/C N/C -1900 AOX kg/t -0.26 -0.115 -0.27 -0.36 background Toxicity N/C N/C N/C N/C N/C Temperature N/C N/C N/C increased increased Pulp Quality increased N/C N/C N/C decreased Commercial Experience High High Moderate Moderate Low Operating Cost decreased decreased decreased increased increased Capital Cost Very High Moderate Moderate/High Moderate/Low Very High Commercial Experience Capital Cost Low 0-3 similar installations in operation Low <$1 million Moderate 4-10 similar installations in operation Moderate $1-5 million High >10 similar installations in operation High $5-10 million Very High >$10 million Capital costs are preliminary estimates NOTES: 1. Technologies are not additive in impact; combinations of two or more technologies require further estimation. 2. All technologies require more detailed study for performance and installation feasibility. 3. Capital cost estimates are limited to only changes in the fiberline equipment; utilities and support services not included. 4. All environmental impact projections are based on outflow from the bleach plant to the effluent treatment plant. CONFIDENTIAL 6 V GLA Background and Introduction Blue Ridge Paper Products Inc. purchased this mill from Champion International Corporation. This mill is unique in the world, being the only mill to incorporate the BFR® process in the fiberline. The BFR® process is installed on the softwood line, and allows a major portion of the D, and Eo bleach plant effluent to be recycled through the brown stock washing system and to the chemical recovery process. This process has been extensively evaluated, and is operated at a degree of filtrate closure where the penalty in bleach chemical use and pulp quality parameters is minimized, while maximizing the environmental benefit. Blue Ridge Paper Products Inc. has undertaken a continuous improvement process to reduce effluent outfall, particularly in discharge of color, since purchasing the mill from Champion International Corporation. The mill has recently undertaken a major study of extemal treatment options, but learned that all options studied would require major capital expenditures, would increase the operating cost of the mill, and are technically and/or economically unfeasible. As a further initiative towards color reduction, Blue Ridge Paper Products Inc. and the Clean Water Fund of North Carolina contracted Liebergott and Associates, Inc., and GL&V Pulp Group to evaluate the current operation of the fiberlines, and prepare a report identifying options for color reduction at the facility. The Clean Water Fund of North Carolina has represented that it is acting on behalf of the "Environmental Coalition on BRPP". The "Environmental Coalition on BRPP" is understood to include the Dead Pigeon River Council, American Canoe Association, Charlotte Lackey, Western NC Alliance, Appalachian Voices, National Forest Protection Alliance, Southern Appalachian Biodiversity Project, Dogwood Alliance, and the Tennessee Environmental Council. It was agreed that the study would include four parts. A. Environmental Performance Benchmarking A comparison between the final effluent quality of the Blue Ridge Mill would be compared with other similar chemical pulp producing mills. This will provide an understanding of the current demonstrated environmental performance of the Canton mill. This will include a review of the published literature of effluent quality of similar mills in the U.S.A. and Canada, as well as any other data that can be readily obtained from operating mills. CONFIDENTIAL 8 vGIN B. Site Review and Audit A current performance review of the fiberlines would be performed, and specific operating parameters that may be changed to improve environmental and financial performance will be identified. C. Options for Improving Environmental Performance Based on a clear understanding of the current operation of the Blue Ridge facility, a list of options that may provide improved environmental performance will be prepared. This list of options would specifically include strategies which may be implemented into the fiberline ("in situ"), as well as those which may be implemented externally ("end of pipe"). D. Bleach Environmental Short Course In order that all participants in the study may have a common understanding of fiberline technology which may be considered in this study, a classroom style course was presented to Blue Ridge Paper Products Inc. and the Environmental Coalitions with regards to the current operating sequences at the facility. The effect of chemistry, operating parameters on pulp and effluent quality were presented by Dr. Norman Liebergott, and copies of all material presented was transmitted to Blue Ridge Paper Products Inc. and the Clean Water Fund of North Carolina. This part of the study was completed on the afternoon of April 30, 2001. Part D of the scope of this contract was completed during the visit to the mill. Parts A, B, and C are included in this report. Prior to the study, Blue Ridge Paper Products Inc. provided to Liebergott and Associates Inc. and GL&V Pulp Group, Inc. copies of all information requested in the Study Proposal. This included flow schematics of both fiberlines, historical environmental data, operations logs from a stable operating period in 2000, as well as all specific data requested. As this data includes sensitive operations data, a Confidentiality Agreement was executed among the parties prior to the start of work at the mill. A copy of this Confidentiality Agreement is included.in Appendix 1 of this report. The data received in advance offered the opportunity for Liebergott and Associates Inc. and GL&V Pulp Group, Inc. to identify areas of the fiberline that may have opportunities for improvement in operating economy and/or environmental performance. CONFIDENTIAL 9 V VIN On April 30, 2001, Dr. Norman Liebergott of Liebergott and Associates, and Lewis D. Shackford and William J. Miller of GL&V Pulp Group, Inc. arrived at the mill in Canton, N.C. On the morning of April 30, Blue Ridge Paper Products, Inc. offered a tour of the mill, and was responsive to all requests for operating information as well as requested data and historical reports for review. This provided a good understanding of the current operation of the fiberlines for the parties. On the afternoon of April 30, the Bleach Environmental Short Course was presented to Blue Ridge Paper Products Inc. and the Environmental Coalitions at an offsite location. This presentation and discussion continued until there were no further requests for any additional presentation material or questions to be answered. A copy of all of the presentation material had been previously transmitted to Blue Ridge Paper Products Inc. and the Clean Water Fund of North Carolina. During the next two days, May 1-2, 2001, a site survey was completed, and a list of options for consideration developed by Liebergott and Associates, Inc. and GL&V Pulp Group, Inc. A significant portion of this time was spent in the mill observing operations, and discussing operations with mill engineers and operators. Where potential options were identified, additional time was spent reviewing the particular area of the fiberline to which the proposed changes pertained. On the afternoon of May 2, 2001, prior to the departure of Liebergott and Associates, Inc. and GL&V Pulp Group, Inc., a meeting was held to which the management of Blue Ridge Paper Products Inc. and the Environmental Coalitions were invited. During this meeting, a proposed table of contents of the Study Report was presented. In addition, examples of the proposed format of the type of data for environmental improvement performance projections were shown. The contents of the report were agreed in this meeting. It was requested that as much data as possible be included on the capital cost implications of the options be included. It was agreed that a general range of capital cost would be included, ranked as "love', "moderate", "high", and "very high". However, it was suggested to the group that any option that may be of interest should be separately studied, as capital requirements for retrofit installations of this nature are very site specific. As there are no exclusions to be identified relative to the scope of the Study Proposal, this report constitutes fulfilment of the obligations of Liebergott and Associates, Inc., and GL&V Pulp Group, Inc. CONFIDENTIAL 10 V GI Environmental Performance Benchmarkina A comparison between selected effluent parameters; AOX, TSS, BOD, COD, Color and Effluent outflow between the Blue Ridge Paper Products Inc, mill and other mills in the U.S.A., Canada and Finland have been made. The USA data includes results from 30 facilities with similar paper products to those produced at Blue Ridge Paper Products Inc. The Canadian data was taken from a comprehensive report in the "1996 Environmental Conditions of the Pulp and Paper Mill in Canada", which was prepared by HASimons, and published by CPPA. The value and average from the forty-three mills were used in the comparison. Also included were two recent mill updates, including data produced in the year 2000 for two Canadian mills, one of which had introduced ozone into the chlorine dioxide delignification stage. Effluent data from 3 facilities in Finland were also evaluated. The information is shown in following table. There were no COD, BOD, or Color values lower than those produced by the Canton mill. There was one mill in the NCASI survey that reported a lower TSS value than shown by Canton mill value. The average AOX reported by the TCF mill in Finland are 0.07 lb/ton of pulp, lower than the 0.17 lb/ton listed for the Canton facility. Finnish TCF mills sometimes do produce ECF grades of pulp and hence do produce AOX. The low AOX values shown are averages taken combining both ECF and TCF regimes, which may bias the data. CONFIDENTIAL 11 g tO G A Comparison between Selected Effluent Parameters from the Blue RidgePaper Products Inc Canton Mill Bleach Plant Effluent and Other Facilities in the U.S.A.. Canada and Finland (Integrated Mills) Pulp Production BHWK BSWK AOX TSS BOD COD Color Flow* Data From ADMT ADMT Lbs/ton Lbs/ton Lbs/ton Lbs/ton Lbs/ton Gal/ton Canton Mill 1999 765 655 0.17 2.08 0.73 13.69 31.22 15,145 Canton Mill 1995 0.33 2.81 1.34 30.80 56.20 19,547 NCASI Studv Avg 2.16 6.68 4.13 76.88 200.55 20,637 Min 0.20 1.00 0.91 13.90 31.90 13,413 Max 16.78 23.00 16.06 224.00 581.00 42,000 Espanola Mill, 2000 450 550 0.36 7.2 4.00 19.02 124.20** 20,800 Boyle Alberta Mill, 2000(2) 1700 1480 1 0.40 4.8 0.41 1 15.0 51.11 22,890 CPPA Study 30HW,4SW, 38-43 mills 9 HW/SW-Avg 1.20 8.1 5.20 68.20 146.22 22,140 Min 0.32 4.3 0.41 15.90 24.20 19,800 Max 2.35 24.60 28.20 83.96 297.20 29,000 TCF Finland (mills produce TCF and ECF HW & HW& 0.10 N/A 1.6 30.02 40.3 9,000 pulps based on demand) SW SW (1) 1995 NCASI Solid Waste Survey (23 mills) - overall average of 17 to 30 mills (2) 2000 (2) Canadian Mill data (Softwood pulp bleached on different days) (3) 1996 CPPA Environmental Study (48 mills) (4) 1999 Finnish mill data - (3 mills) * Flow is Total Mill Effluent Flow ** Reported Data is Color from the effluent treatment plant; estimated color in bleach plant effluent is 175 Lbs/ton. All other data in the table is bleach plant effluent (in flow to the effluent treatment plant). CONFIDENTIAL 12 vGIN Site Audit and Performance Review Operation Review of the No. 1 and No. 2 Fiberlines at Blue Ridge Paper Products Inc., Canton, North Carolina Introduction- The pulping and bleaching operations of Blue Ridge Paper mill located in Canton, N.C. were toured on April 30 and May 1-2, 2001 by Bill Miller and Lew Shackford of GL&V Pulp Group Inc. and Norm Liebergott of Liebergott and Associates. The areas toured on April 30 and May 1 were; • The No. 1 hardwood fiberline brownstock washing, OZ delignification and bleaching. • The No. 2 softwood fiberline brownstock washing, 02 delignification and bleaching. • The central control room for both No.1 and No.2 fiberlines. • The metals removal process (MRP) and the chloride removal process (CRP). The following suggestions are made based on steady state operating data provided by the mill and observations made during the tours. Recommendations: The following recommendations are suggested to incrementally improve the present process operations of the No. 1 and No. 2 Fiberlines, with minimal capital investment. In many cases, there is a return on investment to be realized through reduction in bleach chemical usage. It is also logica�to assume that an incremental reduction in bleach plant effluent color and AOX may also be realized through optimized operation. It is very difficult, if not impossible, to predict color reduction from process optimization, as the individual bleach stage flow numbers are already very low and the variability is difficult to correlate to process variables Color generated due to the chemistry taking place during sewer blending is also a little understood variable making incremental color reductions very difficult to predict. CONFIDENTIAL 13 fYGB/ 1. Monitor hardwood digester k-numbers and post OZ k-numbers at least hourly, to provide operators with lead-time for upset conditions. Kappa analyzers are the optimum solution, but are very costly. 2. Investigate methods to reduce digester k-number variability. 3. Upgrade No.1 OZ reactor feed pump to maintain higher and more consistent reactor pressure control. 4. Monitor 02 operation for performance improvement. 5. Calibrate and/or upgrade No. 1 D, and D2 control instrumentation. 6. Reduce No. 1 Di stage kappa factor to 0.20-0.24 range (0.30 now). 7. Reduce 02 charge to No.1 EoP stage to 0.3% (0.5% now). 8. Propose a H2O2 trial on Eo stage, only after kappa factor has been reduced (#5). Recommend considering MgSO4 addition during trial. 9. Optimize No.3 softwood brownstock washer operation to improve discharge consistency and reduce carryover to No.2 OZ reactor. 10.Upgrade No.2 02 reactor feed pump to maintain higher and more consistent reactor pressure control. 11.Calibrate and/or upgrade No. 2 Di and DZ control instrumentation. 12.Optimize No. 2 D, and EoP washer operation. 13.Reduce No. 2 Di kappa factor to 0.20-0.22 (0.25 now). 14.Run MgSO4 trial on No. 2 EoP stage. 15.Optimize D2 stage operation and reduce CI02 addition. 16.Conduct training course for washer and bleach plant operators. Benchmark Operation: Prior to the visit, steady state operating data for the No. 1 and No. 2 brownstock and bleaching lines was sent to GL&V and Liebergott & Associates. The steady state operating data, in two hour snapshots, was from the period July to August, 2000. Data from this period were used to establish the Canton operating benchmarks. This mill operating data, referenced as Canton benchmark, were compared to the performance expected for fiberlines of this design. These operating parameters are derived from GL&V pulping and bleaching operations similar to the Canton operation. The following tables show only the Canton mill benchmarks that are out of range from expected performance. CONFIDENTIAL 14 V GIN No 1. Hardwood Fiberline Stage Parameter Canton Expected Benchmark 02 OZ charge, % 1.4% 1.5-2.0 NaOH, % 2.0 1.5-2.0 pH (vat) 11.2 10.2-10.5 Pressure, psig 72 100 Delignification, % 33 35-40 Di Kappa factor 0.30 0.22 CI02, % 1.1 0.8 EoP OZ, charge, % 0.5 0.3 H2O2 charge, % 0 0.3 k-no NA 2.0-2.5 % ISO 72-75 70-72 D2 CIOZ charge, % 0.6% 0.6- 0.8% Final pH 3.1 3.8-4.0 Final ISO, % 186 86 Retention, min. 160-180 240 No 2. Softwood Fiberline Stage Parameter Canton Expected Benchmark OZ Pressure, psig 87.5 100 Consistency, % 8.5 12 Delignification, % 40.2 40-45 Di Kappa factor 0.25 0.20-0.22 CI02, % 1.3 1.05-1.15 EoP 02, charge, % 0.7 0.5 NaOH charge, % 2.5 1.5-2.0 pH 10.1 10.5 k-no 2.3 2.5-3.0 % ISO 61.7 55 D2 CI02 charge, % 1.4 1.0-1.2 Final pH 3.5 3.8-4.0 Final ISO, % 86.6 1 86 Retention, min. 240 1240 CONFIDENTIAL 15 VGIN r Summary of Benchmark Operation: No. 1 Hardwood Fiberline: The No. 1 OZ delignification system is performing below standard operation. There appears to be a number of factors leading to the low performance. The low reactor operating pressure (72 psig vs 100 psig) can increase the gas volume in the pulp slurry and adversely affect the efficiency of the 02 gas mixing and subsequent 02 gas retention in the reactor. The cause of this low operating pressure is the accelerated wear cycle on the Clove-Rotorrm pump, which feeds the OZ reactor while maintaining the operating pressure. The wear cycle is caused by excess sand and dirt in the pulp due to the screening system being located in the post Oz position. A solution to this problem is to replace the Clove- RotorTm with a medium consistency centrifugal pump. This pump design will also wear, but with a higher design pump head and external de-gas, it allows reactor pressure to be maintained much longer into the wear cycle. The applied NaOH (as OWL) charge is essentially base loaded to production; the operators making no adjustments for changing process conditions. The NaOH charge is not excessive but it is not being effectively consumed. This is evident from the 11.2 pH manually measured in the first post 02 washer vat. A measured pH from this location should be in the 10.2 -10.5 range. The hardwood OZ gas charge is also base loaded. It is not excessive, but at the lower operating pressure, the oxygen gas volume in the pulp slurry will be high, so it is not being efficiently utilized at the mixer. The lower operating pressure also promotes gas coalescing, further reducing gas utilization and retention time. Poor utilization of 02 gas also leads to poor alkali consumption. Hardwood 02 systems in North America have a spotty performance record in comparison to softwood 02 systems. This is due in part to the wide range of hardwood species encountered, and the changes in species�-ratio as seasonal harvesting areas change. Due to this variation, which also affects cooking and washing, maintaining optimum performance with hardwood 02 systems requires equal or more monitoring and maintenance than the softwood systems. The Di stage kappa factor, or applied CI02 is excessive at 0.30 kappa factor (0.8% CIOZ). This is a bleaching strategy common in three stage bleach plants. It is an operator habit that develops due to lightly monitored brownstock pulp and CONFIDENTIAL 16 VGBI washing systems. These pulp and washing systems can display a great deal of k-number and carryover variability. The process sampling and testing is spread out over long periods. A high kappa factor is the operator's defense to reduce the variability in the bleach plant feed and maintain the final brightness target. High kappa factor bleaching often results in overshooting the final brightness target and excessive overall CI02 usage. First chlorine dioxide stages that operate at high kappa factors are known to generate relatively high levels of color in the effluent. This acid color can increase when subjected to alkali, and often this effect is irreversible. This can occur in the sewer or in the Eop stage, if the first chlorine dioxide stage washing is poor. The Eo stage operates within the standard conditions. The final brightness range is high at 72-75% ISO indicating excessive application of chemical in the D, stage. No k-number is measured. As H2O2 is not applied to this stage, the high brightness development is primarily due to the CI02 applied in the D, stage. As delignification and oxidation are overdone with CI02 in the Di stage, the use of H2O2 in the Eo stage would have minimal or no effect on the overall bleaching. A previous H2O2 trial made no impact on overall No. 1 brightness performance. The final D2 stage is under utilized due to the aggressive Di bleaching previously discussed. This under utilization is part of the previously discussed operator strategy, allowing D2 stage brightness recovery in from process upsets. The D2 stage operates at a lower pH (3.1) and retention time (160 -180 minutes) than standard. The lower pH (3.1) is for shive reduction. This pH range typically slows the brightening kinetics of CI02. Given this strategy, there seems to be adequate retention time at 160-180 minutes to reach the 86% ISO target. However, further optimization of the screen room performance can reduce or eliminate the need for this operating strategy. No. 2 Softwood Fiberline: The 02 delignification system is performing at a delignification rate of 40.2%, which is at the low end of the expected performance range'There, are some operating factors that can be improved for an incremental performance improvement. For the same issues referenced with the hardwood system, the low reactor operating pressure (87.5 psig vs. 100 psig) can adversely affect the system performance. The root cause is the same pump wear issue as exists on the hardwood line. Although theoretically the pressure should not significantly affect CONFIDENTIAL 17 VGLAI delignification, it is likely that the pressure reaches a low enough point that the quantity of oxygen gas needed cannot be effectively mixed with the pulp. The pulp consistency to the 02 reactor is reported to 8.5% (versus recommended consistency of > 10%). At this low consistency there is a danger of promoting pulp channeling, resulting in a severe loss of retention time, coalescing of gas bubbles, and thus loss of delignification performance. Tracer tests to determine reactor retention time show 50 minutes for a 60 minute design. This does not necessarily indicate channeling, but loss of retention time may be due to increased pulp volume at the lower consistency. This additional filtrate increases the COD and dissolved solids content carried into the reactor, which increases consumption of OZ and NaOH. This increased chemical consumption limits the achievable level of delignification. Oxidation of COD in OZ reactors is often accompanied by a high exotherm. The exotherm in the No. 2 softwood reactor appears to be >10°F. A typical exotherm for a softwood reactor is 3-5°F. This is an indication-of parallel oxidation reaction with the COD carryover, which can also have a minor impact on viscosity. This low consistency is a result of poor pre-Oz washer performance, which is designed to discharge at 12-14% consistency. This washer (the pre-02 washer system) requires an operational audit to determine the reasons for operational deficiencies. The D, stage kappa factor is high at 0.25 (1.3%). The dose is controlled based on the measured (in line kappa analyzer) incoming k-number. The sample for the analyzer is taken at the D, stage feed. A manually measured k-number is also taken at the pre-washer feed. The manual k-number averages 9.8 and the analyzer k-number averages 10.3. It can be assumed from these numbers that the controlled kappa factor may actually be slightly higher than the reported control target. The higher kappa factor control target is due to a similar operator control strategy as the previously described hardwood strategy. The No. 2 Line pulping and washing system is monitored more closely than the No. 1 Line, but operation still favors the conservative approach. This also is partially due to the increased carryover levels around the D, stage"due to BFR®. The Eo stage final brightness is too high and the -k-number too low. This is partially due to high level of CI02 applied to the D, stage, resulting in an inefficient Eop stage operation. A softwood EoP stage following an aggressive first D stage becomes a brightening stage and an inefficient delignification stage. The 02 charge is high and most of the applied H2O2 goes to brightness CONFIDENTIAL 18 GSY development. The EoP brightness is a false brightness and contributes very little to the final brightness. The 2.5% NaOH addition level to the EoP stage is high, while the resulting final pH is slightly below standard at 10.1. At the reference NaOH addition rate, the final pH should be close to 11.0. This suggests an imbalance in the Eop stage chemistry that can lead to inefficiency in the EoP stage operation. Do washer operation, H2O2 decomposition, or other parameters can cause this loss of alkali. An MgSO4 addition trial on the EoP stage may help stabilize operation. This unique operation could be a result of the implementation of the MRP process at Canton, and there are no other references in the world to use as a benchmark. The benchmark DZ stage CIOZ addition rate of 1.4% is very high. Addition rates as high as 1.6% -1.8% were noted, with final pH below 3.0. The operators use high DZ addition rates, low pH, and the long retention time as final buffer to attaining the final brightness target and reducing shives. The result is overshooting the final brightness target of 86% ISO. The brightness curve for this sequence, at the benchmark conditions, is very flat at the 86% target range. A great deal of applied CI02 (active Cl2) is lost to chlorate and chlorite formation. The result of over bleaching for a 0.5+%ISO cushion and shive is very expensive in CI02 usage. The operation of the screen room should be reviewed and optimized to assure that maximum shive removal is being achieved prior to the bleach plant. No.1 and No.2 Fiberline Audit Observations: No. 1 Hardwood Fiberline: The hardwood cooking system operation suffers from several control deficiencies. These deficiencies lead to variability in production rate, k-number and brownstock washing. One of the biggest problems cited was digesters that do not blow clean (hardwood digesters only). This leads to deviation from blow cycle, fluctuation in blowtank consistency and washing variability in the washing operation. K-numbers and pH are manually measured every two hours, before and after the OZ system. These are the only inputs operators receive to make adjustments to the bleach plant operation: Given a 16-20 minute blow cycle,6-8 digesters are blown before any changes in k-numbers are noted. Adjustments to the 02 system are seldom made as the operators feel they never really know when the next k-number swing will occur. A low digester k-number may already be through the system by the time the operator sees the test. The same is true for the k-number entering the D, stage of the No. 1 bleach plant. Here, the operator has inline residual and brightness control probes to CONFIDENTIAL 19 VGOV detect these swings. Unfortunately, the residual sensor does not detect the changes in CIOZ concentration due to k-number swings and carryover, and the brightness probe is not sensitive due to the higher brightness of OZ delignified hardwood pulps. The operators, having little faith in these controls as a line of defense to detect process changes, elect to run the D, stage very aggressively. Log sheets from earlier in May indicated that steady digester and washing operation results in a dramatically different No.1 bleach plant operation. These logs indicate a 0.2-0.22 kappa factor can be achieved when operators feel confident no upsets are in the system. In the Di stage, the operator watches the brightness response (Cormac) signal only. In the DZ stage, both sensors are considered unresponsive and not used for control. No.2 Softwood Fiberline: The softwood brownstock and 02 system is monitored with kappa analyzers before and after the OZ reactor and the bleach pre-washer discharge. K- numbers are manually checked every two hours before the 02 reactor and feed to the bleach pre-washer. The residual and brightness control sensors (compensated brightness) on the D, and DZ stages do not have the response to be used for automatic cascade control. The D, stage CI02 addition is controlled by kappa factor. The operator pays little attention to the brightness and residual analyzers in the Di stage, controlling compensated brightness locally which is frequently adjusted as hardwood bleach plant DE k- numbers shift. CI02 usage in the DZ (first brightening) stage continues to be very high. Levels as high as 2.0% were noted. The EoP washer operation is marginal. Speed control in automatic operation results in the washer rapidly slowing down until it plugs. This happens faster than the operator can respond. The result is the washer operating in manual, at a 50% pond level. This critical bleach plant washer is not performing to full capability. This problem has been very difficult to identify, bu fecently has been identified in the hydraulic drive. Poor EoP washing has a very negative impact on Dz performance. Evidence of poor EoP washing can be found in the D2 stage pH. At the very high CI02 applications noted, the D2 stage pH should be below 3.0. It often operates in the 3.0-3.5 pH range. This pH is being buffered by excess amounts of residual alkali being carried over from the previous EoP stage. This EoP residual alkali also carries CI02 consuming organic compounds. CONFIDENTIAL 20 vGIN Overview of Technology Options Introduction The color in pulp and paper industry wastewater results from four major operations: chemical pulping carryover from washers, spills and other losses, pulp bleaching chemical reactions of lignin and carbohydrate fraction of pulp and from colored paper production. Unfortunately, the compounds responsible for color are not easily biodegradable. The highly polymerized nature of the chromophores accounts for their biorefractory nature. Secondary biological treatment plants typically provide a 20-40% reduction in color load. Color problems may be handled in three ways: control color within the system by using oxidative chemicals, a recycle system that allows recovery and burning, or external tertiary treatment. During the course of the Study, a number of options were identified that may be considered to improve environmental performance, particularly in respect to the outfall of color. Reduced color in the effluent can be achieved through in process changes or by treating effluents externally. Both options were reviewed, and projections made as to the potential benefit each option may offer. In-Process Options Decreasing Effluent Loading As bleached kraft pulp mills in North America strive to comply with stricter effluent quality regulations, most of them have stopped using chlorine as a bleaching chemical. Because of the variety of the mills, they have found different ways to -modify their bleaching sequences to reduce AOX, color and other detrimental compounds in effluent discharges. The number of alternatives to elemental chlorine bleaching is growing as a result of accelerated research carried out by pulp producers, research institutions, chemical producers and equipment manufacturers. There are at least thirty different methods in pulping and bleaching to reduce the lignin content of pulp and to modify the bleaching processes, and integrate system closure alternatives, as shown in the following table. CONFIDENTIAL 21 VGIN Technologies to Reduce Bleaching Pollution Process Technique Options Reduce lignin in Extended MCC, EMCC pulp delignification Kraft RDH, low solids Superbatch Additives Anthraquinone Polysulphides Other cooking Organic solvent Alcell chemicals Organocell Others Sulphite ASAM Others Partial Oxygen 02 delignification delignification Eo before chlorination Eop Pressurized PO PHT QP 00 Enzymes Peroxide P and pressurized PO PHT QP (Lignox) QP (others) NO2 PreNOX Non-chlorine Ozone ZD, DZ substantial Peracids replacement PXA Activated oxygen Reduce or Treatment Addition eliminate chlorine conditions Mixing compounds in Substitute CI02 for pH delignification CIZ Reduce chlorine Peroxide P compounds in Pressurized PO, brightening PHT Peracids Peracetic Acid Ozone PXA Reduce lignin in Washing solution MC "C" stage CONFIDENTIAL 22 VGLN Pulping Technologies The retrofit of existing batch or continuous digesters to extended delignification technology would be prohibitively expensive in most mills and technically impractical in many of them. Those mills that install extended delignification will generally install new digester systems. Excessive kappa reduction in extended delignification can adversely affect pulp strength and yield, but this loss can be mitigated by the addition of anthraquinone or polysulfide. Oxygen delignification can be easily implemented into existing mill operations. This technology is now well established commercially with more than 200 installations worldwide (14 in Canada and 52 in the USA). This trend is expected to increase in the next 5 to 10 years. Although oxygen delignification has a high capital cost, it provides significantly lower operating costs. Technically, pulping modifications such as extended delignification and oxygen delignification are readily integrated into the liquor cycle. As these technologies redirect organic material away from the effluent and into the liquor cycle, they increase the recovery boiler loading that will adversely impact pulp production capabilities in a recovery limited mill. Since extended delignification and oxygen delignification reduce the kappa number of pulp entering the bleach plant, bleaching chemical application can be reduced. Extended Delignification Extended delignification in cooking is an option for reducing the lignin content of the pulp going to the bleach plant. Lower kappa numbers entering the bleach plant reduces bleaching chemical usage, and therefore minimizes the effluent load from bleaching. Extended delignification results in improved selectivity, lower rejects, and improved yield. The benefits of extended delignification can be achieved by(1-3): i) High sulfide concentration during initial and early bulk phase of the delignification, ii) Low and uniform alkali concentration throughout the cook, and iii) Removal of dissolved lignin from the reaction medium. This technology can be practiced in either continuous-or batch digester systems, and has the following benefits: • Lower effluent discharges • Chemical cost savings • Maintain or improve pulp quality • Suitable for short sequence bleaching CONFIDENTIAL 23 • More selective than conventional cooking • Improved bleachability of pulp • Improved yield I These benefits are achieved by providing for the reduction in cooked kappa number without a prohibitive yield loss that would be encountered in conventional cooking processes. For example, softwood pulp, in conventional batch or continuous digesters commercially operate in the range of 28-32 kappa number as an optimum economic point considering all costs of steam, power, bleach chemical, wood use, etc. Applying the principles of extended delignification will allow for a reduction in kappa number by about 6.5 units, while maintaining the same wood consumption (same yield). This results in a kappa to bleaching in the range of 22-25. This lower kappa number results in lower bleach chemical costs. It is possible, with extended delignification, to cook to even lower kappa pulp, with good preservation of yield down to about a kappa number of 18-20 for softwood pulps; however, below this point, the yield drops dramatically. With this yield drop comes a reduction in production capacity in a recovery boiler limited mill. This makes operation of this process to such low kappa numbers not economically feasible. Mills which currently operate at these very low kappa numbers are those who are producing TCF pulps, where brightness cannot be achieved unless the kappa number to bleach plant is extremely low. Oxygen Delignification Oxygen delignification systems were developed in the late 1960's and early 1970's in order to minimize and/or avoid the cost of external effluent treatment facilities. This technology provided a significant reduction in lignin content to the bleach plant by delignifying with oxygen and alkali and returning the dissolved wood solids to the recovery boiler. Early oxygen delignification systems were practiced at high consistency (30%) as it was perceived to be difficult or impossible to mix sufficient quantities of oxygen gas with medium consistency (10-14%) pulp to achieve the delignification effect. In the early 1980's, the advent of the High Shear mixer allowed the practice of oxygen reinforced alkali extraction (Eo) and subsequently oxygen delignification stages. Since the development of the High Shear Mixing Technology, most of the oxygen delignification systems have been installed to operate at medium consistency, and integrated into existing fiberlines which conventionally had drum type washers operating at medium consistency discharge. The release of solids dissolved in the oxygen delignification stages requires careful consideration of pulp washing requirements both before the oxygen stage and after the oxygen stage (prior to the bleach plant). Normally 3-4 stages of.washing are required CONFIDENTIAL 24 Ic VGLAI before the oxygen stage, and 2-3 stages of washing are required between the oxygen stage and the bleach plant. Recently, there have been numerous configurations of oxygen delignification system installed and operated commercially. These are shown in the simplified schematics as follows: "Mini" design, 15 minutes, LV 25 - 30% kappa drop Single stage, 60 minutes, L 40-45% kappa drop 1 Two stage, 15/60 minutes, 50-55% kappa drop The level of delignification to be achieved in a mill is site specific, and the average levels of delignification cited above are averages that may be achieved with these various technologies for softwood pulps. There have been a number of surveys done on oxygen delignification performance in mills around the world, and the variability is quite wide. One such survey(4), which included 14 mills in CONFIDENTIAL 25 IGIN the U.S. and Canada showed an average delignification in single stage systems medium consistency systems of about 35%, with two stage systems in the range of 39-40% (one high consistency system response showed 50% for that installation). There are a number of factors that can contribute to limited performance in delignification, which are particularly applicable in "retrofit" installations: High Solids Carryover to the Oxygen Reactor Low Consistency to the Oxygen Reactor Poor Oxygen Gas Mixing Low Reactor Pressure Limited Steam Availability However, it is clear that a well designed and operated oxygen delignification system can achieve an average delignification of 45% for a single stage systems, or 55% for a two stage system on a typical softwood pulp. Beyond this level of delignification, the selectivity of the reaction becomes poorer, and excessive viscosity losses can occur, which may lead to a concurrent loss in pulp strength. To achieve these averages requires disciplined operating practice, and good control of kappa number to the oxygen stage, as well as good washing upstream of the reactor. It is known that there are a few oxygen systems in the world, which achieve greater than 55% delignification pn a regular basis. However, many of these installations are on acid sulfite pulps or on kraft pulps where the oxygen stage is preceded by an acid wash or chelation stage. The incremental benefit in chemical savings to achieve 60-65% delignification versus 55% delignification is too small to economically justify the installation of such a pre-oxygen stage in a retrofit installation. In most cases, on kraft pulps, this type of system is installed where maximum delignification is demanded and/or in new fiberline installations where TCF pulp is produced. For TCF pulps, it is known that the kappa number to the bleach plant must be maintained well below 10 to achieve reasonable brightness, and pulp strength approaching that of conventional ECF kraft pulps. There are two installations in North America where >55% delignification is claimed to be achieved on regular basis (reported 60-63%), however, this should be checked by reviewing long term averages from several Moths' of operating logs. If this investigation confirms the long term average results of >60% delignification, it may be due to wood species dependant, or may be viable due to final product quality specifications. In any case, the Canton pulps should be tested to quantify the oxygen delignification response on Canton pulps, before projecting a long term average result of greater than 55% delignification. CONFIDENTIAL 26 IvG1W There are numerous publications that address the issues of oxygen stage performance in relation to ECF and TCF bleaching of kraft pulps(5-12). A schematic diagram which shows the required equipment to convert a single stage oxygen delignification stage to a two stage systems is shown in the next figure. CONFIDENTIAL 27 e V GU Retrofit of a Single Stage Oxygen Delignification System to a Two Stage System 60 Min. Reactor Discharger I I FIR Pui in 10-30 Min. ' I p Pre- Reactor) I NaOH, I �— LP Steam Sri' y I I NaOH Oz yy h plc Steam .a I Med %' HI-ShearrM HI-Shear m I Mixer I Mixer Blowtank - - - - - - - � MP Steam CONFIDENTIAL 28 V, Gnf Bleaching Technologies Medium Consistency Chlorine Dioxide in First Stage As mills have moved towards 100% replacement of chlorine by chlorine dioxide, the order for injection of chlorine and chlorine dioxide becomes irrelevant. Multiple point chlorine dioxide addition is not necessary, since they do not reduce " chlorine dioxide usage. Medium consistency Dion bleaching provides improved bleaching response that allows reduction in chlorine dioxide charge for a given degree of delignification. A preferred method to achieve medium consistency in the first bleaching stage is the installation of a "pre-bleach washer" ahead of the first D stage, after the brown stock high density storage tower. Although the initial capital outlay may be expensive, its implementation can normally be easily justified when a major fiberline rebuild is undertaken. A medium consistency first chlorine dioxide stage preceded by a "pre-bleach washer" may be considered "state of the art" in modern bleach plants, and this technology is incorporated at the Canton mill. Ozone Bleaching Ozone bleaching has been installed worldwide in 26 mills, with another two mills announcing the intention of installing ozone systems. The technologies operating commercially today are those which operate at medium (10-14%) consistency and high (40%) consistency. Recently, it has been proposed that this technology, especially for applications of low doses of ozone, and particularly when used in combination with chlorine dioxide in a single stage, may be practiced at low (2-4%) consistency. Market demands will justify ozone use in a limited number of mills. However, it remains to be seen if further regulatory demands may require widespread implementation. There are numerous published articles regarding the implementation and use of ozone and peroxide in bleaching sequences.(5•7 .13-1e) Ozone was first proposed as early as the late 1960's in order to allow full recycle of bleach plant effluents for reduction or elimination of effluent outfall. As with oxygen delignification systems, the first systems proposed were based on high consistency gas phase reactor systems. The first of these-installations was installed in the late 1980s at International Paper's mill in Franklin, Virginia. The bleaching sequence is OZED, and most of the effluentfrom the Z and E stages is recycled to recovery. The final D stage effluent is sewered. This process gives a dramatic reduction in AOX, COD, BOD, Color, and effluent flow. This sequence is also used StoraEnso's mill (former Consolidated Papers) in Wisconsin Rapids, Wl. The capital cost for an installation of this type is very high for a retrofit installation, due to the requirement of providing high consistency pulp (40%). In all cases, this technology was incorporated into existing mills during a major CONFIDENTIAL 29 fiberline rebuild. It is a technology that can be considered cost competitive in a new fiberline installation. This technology has not been considered viable for the Canton installation, as this mill appears to be quite sensitive to viscosity of the pulp to the paper mill, particularly the #19 machine. It is well accepted that bleaching sequences using relatively high ozone charge (0.8-1% 03 on pulp) results in a pulp with a relatively low viscosity, even though the strength properties for fine papers is acceptable. Combining ozone and chlorine compounds in a single stage (HZ, DCZ, CZ, ZC, DZ, ZD) was known since 1967. Six mills have reported using a sequential ZD or DZ stage in these sequences(19) The implementation of ozone in combination with chlorine dioxide in the first stage of bleaching has risen significantly in the last 2-3 years, and can be practiced at either high or medium consistency. This is differentiated from a full ozone stage by the limited amount of ozone gas which is applied to the pulp (typically less than 0.3% on pulp). Due to the low dose of ozone, pulp strength and viscosity normally do not decrease with implementation of this technology. The retrofit of an existing bleaching sequence to practice the "ZD" technology is much less capital intensive when installed using medium consistency technology. There are currently nine "ZD" stages installed or on order in the world: Nippon Paper— Nichinan, Japan Votorantim (VCP) —Jacarei, Brasil Oji — Jufutsu, Japan Domtar (Eddy Forest) — Espanola, Ontario, Canada Votorantim (VCP) — Luiz Antonio, Brasil Votorantim (VCP) —Jacarei, Brasil Wisaforest— Pietersaari, Finland Wisaforest— Pietersaari, Finland SAPPI — Ngodwana, South Africa The incorporation of an ozone stage in combination with an existing chlorine dioxide stage in the fiberline is relatively simple with low space requirements. Of greater cost and space requirements is the ozone generation system to provide compressed ozone gas to the system. The basic system configuration is shown on the next page, and comprises the following additions/modifications: 1. New MC Pump to feed the ozone mixer 2. Sulfuric acid delivery system modifications 3. New Ozone Gas Mixer 4. New piping and pressurized upflow tube for Z stage 5. Gas separation system and potential tie-in to ozone gas recovery system 6. Tie-in to existing D1 mixer and tower CONFIDENTIAL 30 e Ozone Reactor Gas to Destruct 10 F fGas Separator Compressed Ozone ,L n Pulp to CIOz Tower CONFIDENTIAL 31 VGBI 7. Complete ozone gas generation 8. Ozone gas compression system 9. Piping and controls for ozone gas delivery to Z stage 10. New gas monitoring, safety training and procedure development 11. Ozone gas destruct and potential oxygen recovery system A system of this design has recently been installed and started-up at Domtar's in Espanola, Ontario, Canada. This is the best reference to cite due to the amount of performance data already published, including data on color reduction. In summary, "the ZD stage incorporated in Espanola's hardwood modernization has improved bleaching economy, improved pulp quality, and reduced the effluent load from the bleach plant. Incorporation of ozone into the ECF bleaching sequence has: • Reduced ECF bleaching chemical cost by 8% while increasing final brightness by 0.5% • Reduced DCM extractives content by 30-50% • Reduced pulp TOX content by 50-70% • Had no impact on pulp mechanical strength or viscosity • Reduced hardwood bleach plant effluent AOX by 65% • Reduced hardwood bleach plant effluent COD by 18% • Reduced total mill effluent color by 27%"(20) However, this mill is rather unique in that the major species processed on the hardwood line is birch, which is known to be difficult to bleach. Historically, a kappa factor of 0.4-0.45 was required to achieved final bleached pulp brightness in this bleaching line. Therefore, it is difficult to extrapolate these results to other hardwood bleach plants without further study. Hot Peroxide Stage The use of hydrogen peroxide continues to steadily increase in ECF bleaching. This technology was first implemented to overcome the decrease in effectiveness of Dloo versus chlorination stages. It has since been demonstrated in most mills that a small quantity of hydrogen peroxide (0.2-0.3% on pulpyis very effective in reducing the total active chlorine demand in replacement ratios such that lower bleaching cost is achieved. There are, however, some-mills in which this practice has not been successful. The benefit in the use of hydrogen peroxide in the Eo stage is to achieve a reduction in the kappa factor in the first stage, and not necessarily in the final bleaching stage. Generally, the technology is not as attractive for mills that tend to use a very high kappa factor, or those who attempt to reduce the final chlorine dioxide stage charge. CONFIDENTIAL 32 Iv GIN More recently, the advent of hot pressurized peroxide stages(311-13,21-30) has been demonstrated to be capable of consuming significant quantities of peroxide (up to 2-3% on pulp) and to significantly reduce the total active chlorine demand. Most of these stages have been installed primarily to operate in fiberlines where totally chlorine fr6e (TCF) pulp is produced either continuously, or in campaigns. Generally, the use of high quantities of hydrogen peroxide in the first alkaline extraction stage does not reduce bleach chemical cost. However, the relative cost.of chlorine dioxide and hydrogen peroxide has been changing such that the operating cost penalty is reduced or eliminated at some mills. This economic situation is geographically dependant, as well as dependant on the stage of purchase contracts for hydrogen peroxide and chlorate. This technology uses high temperature and extended retention time to effectively consume the peroxide in the stage. The temperature of this stage is generally in the range of 90-110°C (195-230°F), with retention time from 1-3 hours. There are two technologies proposed for practice of this technology: 1. The use of a pressurized 60-180 minute reactor vessel, very similar to an oxygen reactor is used in place of the Eo stage. This is commonly referred to as a (PO) stage. 2. The use of a short, high temperature upflow tube, in combination with an existing atmospheric downflow tower for added retention. The combination of a 10-20 minute high temperature upflow tube, followed by 30-120 minutes of atmospheric retention has been shown in laboratory studies to achieve results similar to those achieve with high temperature pressurized retention throughout the entire reaction time. This is commonly referred to as a PHT stage. In both cases, alkali, hydrogen peroxide, and a viscosity protector are added ahead of a steam mixer and a chemical mixer. Steam is added to achieve reaction temperature, and oxygen gas may or may not be required to achieve best results, depending on the position of the stage in the fiberline. A simplified schematic of the PHT design is shown on the next page. (The (PO) stage design is the same as a single oxygen delignification system, but. . without added washers.) r The use of chelants for proper management of trace metals is important to improve effectiveness and selectivity of peroxide, oxygen and ozone stages in both ECF and TCF bleaching. In both cases of hot peroxide bleaching stage design, the use of chelants for proper management of trace metals and/or the use of magnesium salts for preservation of viscosity must be considered. CONFIDENTIAL 33 V GUY e Upflow Section: Pressurized: 4 bar Temperature: 90 - 130°C Downflow Section: Atmospheric Condition Temperature: 95 - 980C Pump Mixer CONFIDENTIAL 34 VGIN TCF Bleachinq In the early 90s, there was a strong trend towards the implementation of non- chlorine, or totally chlorine free (TCF) bleaching, particularly for those mills furnishing pulp and paper into the Germanic speaking countries of Europe. The first implementation of TCF bleaching was in sulfite mills in Europe. Sulfite pulps have inherently higher bleachability compared to kraft pulps, and most mills were able to achieve this goal using only oxygen and peroxide. The growth rate for ECF and TCF pulps is shown in the figure above. In the last 5 years, the growth rate of TCF pulps has slowed, while.the growth rate of ECF pulps has increased. 60 Other N N 40 0 w 0 N F —5 mt/y c 20 TCF 0 _ -- - ____�..___ -- _ ._0_1 mt/y 1988 1990 1992 1994 1996 Year The development of quality TCF pulps from the kraft was proven to be more problematic, especially when targeting the same brightness and pulp quality targets of conventional kraft ECF pulps. There continue to be number of mills, especially in Scandinavia that produce TCF pulps from hardwood and softwood on a continuous basis. However, some mills have displaced some production to be "ECF-Light" pulps, where only a very small amount of chlorine dioxide is used, but higher brightness and quality can be achieved compared to TCF pulps. In North America, there is only one kraft mill producing TCF pulp from softwood pulps, in Samoa, California. In this mill, oxygen, alkali, chelants, and hydrogen peroxide are used as the active bleaching chemicals. The bleaching cost is extraordinary high, as this mill typically uses 4-5% peroxide on pulp. CONFIDENTIAL 35 AO- Although technically, TCF pulp can be produced at the Canton mill, there is no published commercial experience with this technology in the world to produce the paper and paperboard grades manufactured at Canton. The sequence QPZP is used for reference in this study. A typical schematic for a similar sequence AEQPZQPHT is shown on the next page for reference. A detailed laboratory investigation is necessary to define the optimum TCF sequence that may be used for this pulp. The basic system configuration shown requires the following additions and/or modifications for the conversion of the Canton bleach sequences to TCF pulp production: 1.. Implementation of an acid soak or chelation step after the post oxygen washers (potential relining of the high density storage tower) 2. Conversion of both chlorine dioxide towers to peroxide towers 3. Conversion of the existing EQP tower to a chelation step 4. Addition of chelant supply and control system (including pH control loops 5. Sulfuric acid delivery system modifications 6. New Ozone Gas Mixer 7. New piping and pressurized upflow tube for Z stage 8. Gas separation system and potential tie-in to ozone gas recovery system 9. Complete ozone gas generation 10. Ozone gas compression system 11. Piping and controls for ozone gas delivery to Z stage 12. New gas monitoring, safety training and procedure development 13. Ozone gas destruct and potential oxygen recovery system 14. Expansion of peroxide delivery and control system, 15. Addition of pressurized upflow tube(s) to the D stages for conversion to PHT stage(s), [or replacement of D towers with pressurized reactors for (PO) stage(s)]. BFR® Process for Hardwood Line The BFR® Process has been demonstrated to significantly improve the effluent qualtiy on the softwood line at the Canton mill due to reuse of bleach effluent for oxygen washing. This process can be incorporated on the rardwood line, and the results can be expected to be similar. However, this approach is similar to pursuing external treatment options, as there will be-9 high capital cost required for implementation, and the operating cost of the mill will increase. CONFIDENTIAL 36 V GLA AEOPZEQPHT (or "QPZP") Bleach Plant NaOH ° ° e ° ° EDTA I EoP PHT so°c 1 1o°ci A Q se°c sa°c 7o°c y RA 0A H2SO4 NaOH Eoa OZ Oz H202 03 ZoNaOH PHT 02 EDTA Acid Purge CONFIDENTIAL 37 VGIN Emerging Pulping and Bleaching Technologies There are a number of other developing technologies which may be considered in the future for implementation at the Canton mill. These technologies are not included in the evaluated options, as we believe that there has not been sufficient commercial experience to implement at this time and assure performance in color reduction or financial benefit will be achieved. LIGNOX The LIGNOX process is one of several processes that use chelating agents, oxygen delignification and hydrogen peroxide treatments. These types of processes, as well as (PO) and PHT stages, are becoming more widely used as efforts to reduce chlorine-containing compounds are increased. Enzymes The potential for use of enzymes has been decreased as other technologies such as extended delignification and oxygen delignification are implemented. However, some mills have implemented this technology on a full time basis (10- 20 mills globally). Most mills who have implemented this technology did so due to limitations in the application of chlorine dioxide in the bleach plant. There are some mills, however, that have found a slight reduction in operating cost, particularly on hardwood pulps. The success of enzymes in a particular mill is very dependent on the wood species processed. This technology could be incorporated by adding enzymes and controlling pH in the brown stock high density storage tower. However, the viability will also depend on the cleanliness of the pulp, the actual temperature of the pulp, and the temperature variations encountered in normal operation at the high density storage tower. Molybdate Activated Peroxide Delignification and NetFloc® Recovery Process Addition of acidic peroxide activated by catalytic amounts of a molybdate(31) (mP) is an alternate delignification method that can be used on hardwood pulps after oxygen delignification. The reaction may be carried out in the brown stock storage tower (if metallurgy is acceptable)with no large capital investment required. If the effluent is either used for back washing or sent to the secondary treatment as an acid stream, only the equipment for charging the chemicals, sulphuric acid, hydrogen peroxide and molybdate is needed. The reaction is done at 10%-12% consistency for 2-4 hours at 70-90°C, and pH 4-5. Besides decreasing the kappa number 4 to 5 units of the kraft hardwood pulp the mP treatment removes hexenuronic acids and bound COD thus reducing the formation of oxalate in the following stages. Mill scale results have shown a usage of 2.6 lbs. hydrogen CONFIDENTIAL 38 V GLAI peroxide per unit kappa number drop. Molybdate usage is 0.8 lbs. but may be recovered with some new schemes now being tested. Accompanying the decrease in Kappa number of 4-5 units the kappa factor would also decrease to 0.20 from the initial value of 0.30. Thus, for an oxygen, Mp, washed delignified pulp kappa number 5, the chlorine dioxide charge in the D, stage would be 7.6 Ibs CI02/ton of pulp. This means the AOX would be further reduced while color may be decreased by 5700 Ibs/ton. The Kemira Company, which provides chemicals for the mP technique also, endorses the NetFloc( 2) process (the use of polyethylene oxide as a flocculant) to remove extractives, non-process elements, and color from process effluent. Recovery of the molybdate and color from this stage as well as from the Eop stage is being tested at a mill site. This technology is in the early phases of commercial demonstration in Finland. It is expected that this technology will be quite sensitive to black liquor carryover, so further study should be made before considering this technology. Peracids Distilled peracids have proven to be viable for use in chlorine and chlorine-free bleaching sequences. The pulp quality parameters are generally as good or better than for ozone, but the low capital costs are attractive particularly as mills assess the viability of ozone. Peracids have been evaluated in both pilot plant stage and are now used in four mills in Finland. This is potentially a promising new area of pulp bleaching research and it is possible that peracids will become an additive or alternative to CI02, ozone or peroxide when used in conjunction with ECF and TCF sequences. At present, however, the use of peracids generally results in an increase in operating cost, so their use today is primarily in mills that are producing TCF pulps. Acid Hydrolysis The use of a hot (>95°C, >200°F), long retention time (2-4 hours) acid hydrolysis stage (pH < 3) prior to the bleach plant has been shown to remove the majority of the hexenuronic acids from the pulp. These hexenuronic acids, if retained in the pulp, consume active bleaching chemicals in the bleaching. This technology is most effective on hardwood pulps, and particularly those hardwood pulps with a high xylan content. There are a few commercially operating systems in the world today. The major issues with this technology are yield, corrosion, and scaling. It is difficult to assess changes in yield in a laboratory environment, and much more difficult to assess yield in a mill operation; however, some detailed evaluations show significant yield loss by this acid hydrolysis which is not fully offset by CONFIDENTIAL 39 reduced yield loss in subsequent bleaching. The application of sulfuric acid at high temperature creates a very corrosive environment, and some mills have reported failures of austenetic stainless steel equipment and piping. Where this effluent is recycled to the post-oxygen washing, care must be taken to prevent scale buildup on equipment and piping. Hot Chlorine Dioxide Stage Recently, laboratory work has shown the benefits of increased temperature in combination with extended retention time in the first chlorine dioxide stage. Chlorine dioxide savings of 10-20% have been reported when operating the stage at 70-800C (160-175°F) for 1-2 hours retention time. This technology is not included as a primary option in this study as there are currently no commercial installations, and it is known that the Canton mill has a limitation in steam supply that would make it difficult to practice. Pulp Washing and Effluent Flow Reduction The only reason there is any process effluent from a bleach plant is that we wash the pulp after each bleaching stage and there is the need to purge dissolved solids from the system which, if retained, would inhibit production, consume chemicals, or adversely affect product properties. If these contaminants could be completely removed through internal systems such as BFR®, there would be no need for process effluent; the mill water effluent system would be substantially decreased. However, to date, no technology, including the BFR® process has been demonstrated to eliminate liquid effluent from kraft pulp bleach plants. Notwithstanding some of the findings from previous work (33-35) washing in the modern bleach plant is important in that more costly bleaching chemicals are being used, especially in TCF bleaching. In addition, hydrogen peroxide, peracids, and ozone are very sensitive to transition metals. Finally, efficient washing must be used if the industry is to achieve the 'low effluent flow bleach plant'. Over the last two decades, the pulp and paper industry has made significant gains in its efforts to use recycled effluent to reduce fresh water usage and minimize effluent discharges. The effluent quantity from bleached kraft pulp mills has also been reduced, while the effluent quality, as measured by toxicity, BOD, COD, color, odor and foam, has been improved. This is especially true if bleach plant closure is made part of the comparison where it has been shown that the old filter bleach plant which used to emit 12,000 gal/ton, is modernized to a filter ECF bleach plant, the volume would decrease to 2,880 gal/ton. For the same degree of filtrate closure CONFIDENTIAL 40 it has been shown that a corresponding press-based bleach plant would only emit 1,920 gal/ton(36) The Canton mill is one of the most modern mills in the world relative to water reuse, minimization of effluent flow, and minimization of environmental impact from the bleach plant effluent. There are a number of principles of pulp washing and water reuse that are pertinent to any modern mill; most if not all of these have been addressed or are practiced at the Canton mill. A review of these principles may be of value in planning future potential changes to the mill operation. Conventional washing techniques include (a) direct counter-current, (b) split flow and (c)jump-stage counter-current which were all tried to effect lower fresh water use. "The key to filtrate recycling is remembering that 'like goes with like'. For example, if pulp is going into a Dion stage, D100 filtrate can be used for dilution, similarly for the other stages. If the washer showers allow for two different filtrates to be used for washing, the top or last shower can use filtrate from a following stage. To avoid mixing acid and alkaline filtrates, it is important to not break through the pulp sheet with the filtrate from the subsequent stage. Breakthrough will not occur if the last shower flow is more than half the total shower flow, where the total shower flow is about a dilution factor of 2. The philosophy of using two different filtrate flows for showers is employed with the split-flow counter-current washing system. Direct countercurrent recycling is generally not recommended as it may increase chemical consumption and may cause pitch and foaming problems."(3 The following is a list of some opportunities for water reduction that can typically be found in pulp mills today(38) a. For all washing stages, improving the discharge consistency of the washer will improve pulp washing. Discharge consistency drops on older and overloaded washers. The most common operating problems on vacuum drum washers are low operating vacuum, improper application of wash water, high washer speed, low discharge consistency, inadequately or unevenly washed pulp and difficult pulp discharge. b. Improving the wash shower type to get better shower disf ibution and more efficient washing. c. Replacing older washer drums with new drums having anti-rewet decking will result in several points increase in discharge consistency and offer the potential for reducing wash water requirements. CONFIDENTIAL 41 d. Use of filtrates on wire cleaning showers and operating the cleaning showers intermittently can reduce water consumption. e. Use recycled filtrates for repulper dilution and any standpipe dilution (often a 16% washer discharge is diluted to 12% with repulper dilution). Generally pump standpipe dilution can operate on the filtrate from the following washing stage, although this is often connected to hot or warm water for ease of start- up. Non-compatible construction materials may be an issue. f. Water doctors can often be replaced with air doctors or operate on washing filtrate for that stage. Sometimes this will require installation of fiber filters. g. It may be possible to recycle excess white water from the pulp or paper machine or bleach screening system to showers where hot or fresh water is being used. h. The bleached pulp screen room can be closed. i. Typically, washer showers are set at a constant flow but flow control can be installed to enable wash ratio or dilution factor control. j. Washer seal tanks should be put on level control to avoid spillage for effective level control. However, seal tanks are often too small to make this practical in older mills. k. Converting the D/C or D,00 stage from low to medium consistency can improve the water economy. I. In general, organic material carried forward (black liquor solids from brownstock washing) into the first bleaching stage (C, C/D, D or even Z) appears to use two to four times more chemical than organic solids carried back from an Eo or EZ stage. Reductions in carry over can reduce chemical application and the volume of water associated with the chemicals. m. If an open wash stage is used before the bleach plant, then the filtrate flows can be reused in the brownstock areas, effectively extending.the brownstock washing system into the bleach plant. Split showers on this washer may allow for future use of D/C filtrate here. n. Spill recovery is generally for fiber only, but filtrates could also be recovered and returned to the high-density dilution or possibly back to the brownstock screen room. CONFIDENTIAL 42 vGLAI o. It may also be possible to leave washers out, for example by converting a D100EoDED sequence to a D100EoPDD sequence. The direction of the industry is to ever greater recovery of the filtrates from the kraft process and reduce water usage. The application of extended delignification during pulping and oxygen delignification (which reduce the amount of organic material in the remaining effluent) are already being used in some mills. One reason often stated as a major cause for not applying tight water usage — the build-up of chlorides - has already been dealt with effectively in coastal mills where chloride-laden logs are used in the pulping process. By the appropriate design and operation of the recovery process and by not returning all the chloride-rich electrostatic precipitator dust to the process, a steady-state chloride level can be maintained and a certain amount of chloride can be tolerated in the recovery system. This operating experience shows that it is unnecessary to totally eliminate chlorides from the filtrates which are to be recycled and that a certain usage of chlorine dioxide could be tolerated in a closed-cycle mill. The Key Elements in Achieving Water Reduction in a Mill are: • Decrease effluent volume (this will permit economic treatment of the effluent) • Decrease process water (in washing and raising consistency of bleaching stages) • Reuse evaporator condensate • Reuse machine white water • Recover and reuse heat from process • Standardize temperature. Based on the site survey undertaken by the authors of this report, most, if not all, of the principles of water reduction have been addressed and are being practices at the Canton mill. One observation made on site is that the water use on the washers seems to be at a flow that is borderline to achieve best economic operation of the fiberline. Specific recommendations on some current problem areas have been made in the "Site Audit and Performance Review" section of this report. An increase in water use should be studied as a means to reduce bleach chemical consumption and thus reduce operating cost. The "Bleach Filtrate Recycle" process (BFR) which was developed at, and is currently practiced at the Canton mill is a benchmark for low effluent flow in the worldt39 Another system of closed cycle bleach plant operation while still using chlorine dioxide was the source of a technical presentation at a recent meeting("). The new technology developed jointly by Jaakko Pbyry, Stora Billerud and Eka Nobel CONFIDENTIAL 43 VGVV claim water volume reduction (to 10-15 m3/ADt) and uses electrodialysis to purge chlorine and inorganics from the filtrate. Capital cost for 1000 adtpd bleached softwood mill is estimated at $35 million with an operating cost of $15/ton. External Treatment Options Jacobs Study Commentary Blue Ridge has engaged the Jacobs Engineering Group Inc. to evaluate and report on end-of-pipe color technology. A comprehensive report(41) on eight different color technologies clearly delineated to what extent color removal could be expected and the economics associated with a particular technology was sent to the mill in early spring of 2001. The technologies reviewed were: Alum Color Removal System Lime Color Removal System Polyamine Color Removal System Ultrafiltration System Carbon Adsorption System Storage and Time Release System Ozonation System Crystallization System The basis of the analysis of these systems was the mill data on: Average flow 24.8 MG/Day Peak flow 28.7 MG/Day Average color 41,188 lbs/day Maximum color 65,888 Ibs/day A summary of the results of the above-mentioned review is reproduced on the next-page. It is not the intention of the authors of this report to further describe each of the eight technological systems mentioned in the Jacobs Engineering report. We agree with comments that the end of pipe color treatments are not economically feasible because they require high capital investment and ongoing operations expenses. However, some thoughts and concerns- are stated in the next several pages particularly relative to treatment of individual bleach effluent streams using similar technology. All of these technologies have the same disadvantage as the "End-of-Pipe" options in that they incur capital to install and result in increased operations and maintenance costs for the mill. Thus they are not favored in light of alternative in plant process changes. CONFIDENTIAL 44 GIB/ Emerging External Treatments Chemical Destruction The mineralization of AOX is the hydrolysis of organic chlorine compounds under alkaline conditions to produce inorganic chlorides. Subjecting E-stage ultrafiltration concentrates at pH's up to 12.5 to high temperature (100°C) decreases AOX concentrations by up to 50%(4i.42). AOX reduction by hydrolysis also will take place in a conventional wastewater treatment plant when chlorination effluent is subjected to an alkaline pH, increased temperature and time(43). At usual bleach plant operating temperatures (60 to 800C),AOX removal of from 54 to 67% was obtained at pH of 11 using Ca(OH) or NaOH respectively. Substituting weak black liquor for NaOH increased the AOX removal by up to 30% more 44). Increasing the temperature to 1500C and pressure to 475 kPa increased the AOX removal to 80%44). Biological Treatment Certain fungi such as white-rot fungus, Phanerochaete Chrysosporium in a rotating biological contactor has been found to remove AOX and color for a bleach plant effluent stream. Most methods using biological treatment depend upon treating selected bleach plant effluent or concentrated streams of effluent from active carbon adsorption or ultrafiltration processes(45,46) White-rot fungus dechlorinates the bleach plant effluent by converting the organically bound chlorine to inorganic chloride. Color and AOX destruction by the fungus is accomplished by a family of enzymes the fungus excretes; there are some 15 extracellular enzymes that are produced by the fungus(47). These enzymes which can degrade lignin and lignin modified during pulping and bleaching are called peroxidates(47). To decrease the potentially high cost of this type of treatment ($6-$8/adt), the white-rot fungus was immobilized on granular activated carbon. One major problem was the dissociation of the hydrogen peroxide produced by the fungus on the activated charcoal carbon structure. Research on bench scale fluidized fungal experimental systems where the fungi is immobilized on granular activated carbon and employing a recirculating reactor loop showed that the chlorinated organics were reduced to below the limits of detection within eight hours(49). Photo-oxidations Photo-degradation reactions are initiated when bonding electrons absorb a quantum of light whose energy corresponds to an energy difference in the electronic state of the absorbers °). Results of studies showed that when whole mill effluent was irradiated at 254 nm in the presence of an oxidant catalyst, Ti02, CONFIDENTIAL 46 VG1W the degradation of the effluent was greatly increased at 50°C; the degradation is strongly dependent on the intensity of the irradiation. Aeration of the effluent by oxygen not only maximizes the degradation but cause the rate to be independent of pH, improving the techniques applicability to different bleaching effluent streams. Under the best present known condition a dark colored mill effluent can be treated by photo-oxidation to produce a clear solution with low or no toxicity in less then 30 minutes(49). Thermal Destruction As bleached kraft mills move towards closed mill technologies using either polymer, resin, ultrafiltration or activated carbon treatment they will produce concentrated effluent streams that may contain high concentrations of chlorinated organic and inorganic chlorides(51). Presently the only mill technology for treating these concentrates is by treatment in multiple-effect evaporators followed by burning in the recovery furnace. This raises the problem of the high chloride residual in the various process streams and the possible corrosion of the evaporators. As an alternate technology the thermal destruction approach in equipment other then a kraft recovery furnace is now under investigation. Initial results were obtained by examining effluent concentrates obtained by ultrafiltration and reverse osmosis. These concentrates were analyzed for their solid content, color, AOX, total organic carbon, metals, heating value and ash content. Ultrafiltration concentrates were found to be more desirable as a fuel then the reverse osmosis concentrates due to the higher level of carbon organic to inorganic ratio, heating value and lower levels of ash. The heating values of ultrafiltration concentrates are in the range of 12,000 to 19,200 kJ/kg which are in the same range as that of black liquor solids. The organic content to inorganic content also effect the heating values, since the organics are major contributors to the net heating value while the inorganics are not. It is important to note that the air emission should be monitored for potential PCDD/PCDF emissions which may be eliminated when the effluent concentrates are mixed with a small quantity of black liquor or other suitable absorbers are used(51). Thermal destruction technologies include: rotary kiln incinerators, circulating fluidized bed combustors, gasification of waste to medium or low BTU fuel gas, and co-firing waste with other fuel, such as black liquor bark, coal, oil and gas. CONFIDENTIAL 47 VGU/ Methods for Recycling Effluent Other methods of closing up existing mills, as well as in Greenfield mill, include technologies for bleach plant in-plant and external control using: • Membrane process: ultrafiltration and reverse osmosis • Resin process • Activated carbon adsorption • Chemical coagulation: (a) lime (b) alum (c) ferric chloride or sulfate (d) organic polymer treatment Paper machine white water reuse in the bleach plant • New bleaching sequences Membrane Processes 1. Ultrafiltration is a membrane process that can decrease color and AOX in the effluent. The process involves a physical separation of the components by applying pressure to the fluids being cleaned. The selectivity of the membrane depends upon its pore size. Ultrafiltration is usually done in the 10 to 175 psi pressure range and the molecular weight separation can be varied from 1,000 to 1,000,000. Ultrafiltration is used primarily on extraction stage filtrate, where approximately 80 to 90% of the color, 70% of the COD and 25% of the BOD are removed(52) It has also been reported that a significant fraction of the resin and fatty acid are removed but low molecular chlorinated phenolics are not removed(53). Typical operating costs are $6/adt for the filtration equipment and $15-20 million for installation cost excluding incremental evaporation capacity. 2. Reverse osmosis is a high pressure membrane process in which dissolved solids are separated from water by applying a pressure higher than the osmotic pressure. Applying pressure to the feed stream of effluent, water will permeate through the membrane from the area of high dissolved solids concentrated to the area of low solids concentration, producing clean water. Reverse osmosis membranes are made from a multitude of materials including acetate, polyacrylic acid, cellulose and other cross-linked polymers. The reserve osmosis system usually operates at'pressures of 100 to 1500 psi. Information from laboratory and pilot plant studies have been reported(54) and a full-scale reverse osmosis system was installed at a NSSC corrugating mill(55) but later abandoned due to the unavailability of suitable membranes. Cost of operating a reverse osmosis system in conjunction with ultrafiltration or diafiltration or freeze concentration of the concentrated material ranges CONFIDENTIAL 48 VGIN from $10-30/adt with a capital investment on $40 million for a 1000 t/d mill(53,56) Areas of Further Research • Evaluation of different membranes for various applications as membrane fouling results in flux reduction. • Low flux rates and a decline in flux rates with time of membrane operation. • Effect on the recovery system on burning ultrafiltration and reverse osmosis concentrates. The effect of air emissions. Resins Resins, through ion exchange or sorption, remove selected chemicals from a solution.—The resin-technology involves pretreatment of the effluent to remove large particles and to effectively optimize the effluent pH from pH 2.5 to 7 depending on the type of resin used. The effluent is then passed through a resin column where color and some organic compound ions are removed. When the removal rate of the column drops it is replaced and the resin regenerated. The material collected from the regeneration process is concentrated and eliminated from the system. Processes tested and reported upon are the Rohm and Haas process(57), the Dow process(58) and the Billerud-Uddeholm pro'cess(59) for color reduction. The latter process is said to also remove organic material (chlorinated phenols and guaiacols), therefore decreasing effluent toxicity. Color reductions from 80 to 90% are achieved, while BOD decreases of 50% have been reported(59). The estimated operating cost in 1981 was between $7.75-10.25/adt assuming a 2-year life of the resin. The equipment and installation costs were $1,300,000 for a 1000 AD/t pulp production. Area of Further Research Evaluation of different resins for various applications, including removal of other chemical components. Active Carbon Adsopition The use of activated carbon for removing organics from effluent streams has been known for many years. Activated carbon characterized by a very large surface area per unit mass (450 to 1800 m2/g) has an extreme)y,high capacity for surface adsorption of organic molecules with relatively low water solubility. It has been reported that activated carbon in laboratory and pilot glant studies removed greater than 90% of the color from extraction stage filtrates 0,61) and that the spent carbon could be regenerated several times with caustic before thermal regeneration was required. CONFIDENTIAL 49 VGLAI The annual operation cost, including depreciation and capital cost recovery for this system, was estimated to be $42 million (1987 costs) while the cost of installation of an activated carbon system at a mill to treat the entire secondary effluent was said to be $117 million(6 2). Further Research Needs Problems to be solved include: • Frequent plugging of carbon beds with suspended solids • Absence of a reliable technology for treating the concentrates from carbon regeneration at bleached kraft Mills. • Biological growth in carbon columns along with gassing off. —Chemical Coa ulation----- — - Chemical coagulants such as lime, alum, ferric salt, ferric chloride and ferric sulfate, along with organic polymer (polyelectrolyte), are known to destabilize large organic molecules contributing to the color of the effluent and produce flocs. The resulting flocs can be separated from the water by settling or air flotation and thus removed. Only lime treatments will be discussed since all the above processes remove color, but lime has been shown to also remove AOX. Lime Treatment Several massive lime treatment processes are known and the results from the International Paper Company's mill at Springhill, Louisiana study reported(63) slaked lime was applied to a colored extraction filtrate and allowed to settle out in a primary clarifier. The clarifier effluent was recarbonated with CO2 to recover the soluble lime. The results show that 90-95% of the color can be .removed. Recently(64), it was shown that 80% of the AOX can also be removed by massive lime treatment. Only one such system is presently operating. Cost for operating this system was estimated to be $23 million a year, which included depreciation and capital recovery. The cost for installing a lime color removal system was estimated to be $55 million (1987 cost). Further Research Needs Given the sludge from the clarifier would be dewatered and sent to the lime kiln, the effect of chloride ions along with other metals would have to be fully examined. The effect of increased dissolved solids resulting from implementing this technology is not known and would have to be elucidated. CONFIDENTIAL 50 IvGIN Paper Machine White Water Reuse in the Bleach Plant To decrease fresh water use in several mills, the bleach screen room and paper white water are used for diluting pulp entering the bleach plant from the HD storage chest but usually for diluting pulp leaving the final bleach plant washer. Some mills reported using machine white water on showers of the chlorination and extraction stage washers. Shower washers are required to operate a large number of sprays. The quality of water coming from the paper machine was both screened and clarified to remove impurities that may affect the bleaching process. References 1. Sjoblom, K., Mjoberg, J., and Hartler, N. - Paperi ja Puu 65:227 (1983). 2. Axegard, P., and Wiken, J.E. - Svensk Papperstidning (86):R178 (1983). 3. Hartler, N., and Olsson, L.A- Svensk Papperstidning (75):Nr13 (1972). 4. Bennington, C.P.J. and Pineault, I., Pulp & Paper Canada 100:12(1999). 5. Germgard, U., and Norden, S„ "OZP - Bleaching of Kraft Pulps to Full Brightness", 1994 International Bleaching Conference, Vancouver, BC, TAPPI, SPCI, EUCEPA, and CPPA, p. 53-58. 6. Tibbling, P. and Dinner, B., 'TCF Bleaching can be Carried Out with Difference Bleaching Systems", 25th EUCEPA Conference, 1993 Vienna, Austria, 842 pp. 7. Dillner, B., and Tibbling, P., "Optimum Use of Peroxide and Ozone in TCF Bleaching", 1994 International Bleaching Conference, Vancouver, BC, TAPPI, SPCI, EUCEPA, and CPPA, pp. 319-333. 8. Sjodin, L., Ssolverg, N., and Bomar, R., "Extended Delignification in Oxygen and Hydrogen Peroxide in ECF and TCF Sequences", Proceedings of the 1994 TAPPI Pulping Conference, San Diego, pp.21-27. 9. Basta, J., Holtinger, L., Lundgren, P., Fasten, H., Freddksson, R., "Alternatives for Achieving High Brightness TCF Pulps". Proc. of Non- Chlorine Bleaching, Amelia Island, FL, USA, 1994. 10. Axegard, P., Ekholm, U., `Peroxide-Based TCF Bleaching Basics and New Development", Workshop on Emerg. Pulp Tech., Durham, April 1995. CONFIDENTIAL 51 VGU/ 11. Basta, J., Holtinger, L., Hermansson, W., and Lundgren, P., "Metal Management in TCF Bleaching", 1994 Int. Pulp Bleaching Conference, Vancouver, BC, TAPPI, SPCI, EUCEPA, and CPPA, p. 29. 12. Basta, J., Holtinger, L., Lundgren, P., and Persson, C., "Emerging Technologies in TCF Bleaching". Proceedings of the 1995 TAPPI Pulping Conference, Chicago, p. 53-57. 13. Breed, D., Shackford, L.D., Pereira, E.R., and Colodette, J.L., "Cost- Effective Retrofit of Existing Bleach Plants to ECF and TCF Bleached Pulp Production Using a Novel Peroxide Bleaching Process". Proceedings of the 1995 TAPPI Pulping Conference, Chicago, p. 779-788. 14. Liebergoft, N., 'The Use of Ozone in the Bleaching and Brightening of Wood Pulps", 1979 Preprints of Fundamentals of Ozone Technology Seminar, The Center for Professional Advancements, East Brunswick, NJ, July 23-25, 1979. 15. Lachenal, D., Taverdet, M.T., Muguet, M., "Improvement in the ozone Bleaching of Kraft Pulps", Intern. Pulp Bleaching conference, SPCI, Stockholm, 1991, pp. 33-43. 16. Dillner, P., and Tibbling, P., "Use of ozone at medium consistency for fully bleached pulp. process concept and effluent characteristics. TCF bleaching can be carried out with different bleaching systems", Intern. Pulp Bleaching Conference, SPCI, Stockholm, 1991, pp. 59-73. 17. Tsai, T.Y., US Pat. No. 4,959,124 (Sept. 25, 1990). 18. Lachenal, D., Muguet, M., "Degradation of Residual Lignin in Kraft Pulp with Ozone", Nordic Pulp & Pap. Res. Journal, No. 1/1992, pp. 25-29. 19. Liebergott, N.L., Ozone Tutorial. Preprints of the 1996 INCBC, Orlando, Florida. 20. Munro, F., and Griffiths, J., "Operating Experience with n Ozone Based ECF Bleach Sequence. 21. Stromberg, B., and Szopinski, R., "Pressafized Hydrogen Peroxide Bleaching for Improved TCF Bleaching", 1994 International Bleaching Conference, Vancouver, BC, TAPPI, SPCI, EUCEPA, and CPPA, pp. 199- 209. CONFIDENTIAL 52 1- tGnI 22. Wiltshire, K., Steffes, F., and Reeves, R., "Pressurized Peroxide - A Good Fit for both the Bleach Plant of Today and the Future", Proc. 1995 Spring Conf. CPPA Technical Section, Whistler, BC, Canada. Preprints. 23. Str6mberg, B., 'Pressurized Hydrogen Peroxide Bleaching for Improved TCF Bleaching", 1995 TAPPI Emerging Pulping and Bleaching Technol. Workshop, Durham, NC. preprints. 24. Devenyns, J., Desprez, F., and Detroz, R., "Enhanced Hydrogen Peroxide Bleaching Stages for Chemical Pulps". 1995 TAPPI Emerging Pulping and Bleaching Technol.Workshop, Durham, NC. Preprints. 25. Boman, R., Reeves, R., and Nordgren, B'., "Pressurized Peroxide Bleaching - An Important Tool for Modern ECF and TCF Bleach Sequences", Proc. Nonchlorine Bleaching Conf., Amelia Island, FL, USA, March 5-9, 1995. Preprints. 26. Breed, D., Colodette, J.L., "Pushing the Peroxide Window", 1995 TAPPI Emerging PUlping and Bleaching Technol. Workshop, Durham, NC. Preprints. 27. Reeves, R., Boman, R., and Norden, S., 'Impact of Sequence Position for Pressurized (PO) Stages in ECF Bleaching", Proceedings of the 1995 TAPPI Pulping Conference, Chicago, p. 264-279. 28. Roy, B.P., van Lierop, B., Berry, R.M., and Audet, A., "High Temperature Alkaline Peroxide Bleaching of Kraft Pulps". Proceedings of the 1995 TAPPI Conference, Chicago, pp. 771-778. 29. Hill, R.T., Walsh, Walker, S.D., and Dutton, D.B., "An Evaluation of Pressurized Hydrogen Peroxide Systems for Delignification and Bleaching". Proceedings of the 1995 TAPPI Conference, Chicago, PP. 789-806. 30. Wigren, G.A., Canadian Patent 769,631 (Oct. 17, 1967). 31. Paren, A and Jakara, J. Molybdate Activated Peroxide in ECF Bleaching of Hardwood Kraft Pulps, Preprints of the 10th International Symposium on Wood and Pulping Chemistry, June 1999. 32. Roberts, J. "The Organ of Closure", Pulp and Paper Europe, July/August, 1999 33. Gullichen, J., "Displacement Bleaching", The Bleaching of Pulp, TAPPI, Atlanta, GA, 1979, Chapter 10, pp. 275-291. CONFIDENTIAL 53 VGIN 34. Cook, R.A., "A Bleaching Process for Minimizing AOX Discharges", Appita 44:(3), p. 179, 1991. 35. Lachenal, D., and Magent, M., "Reducing TOCI with OXO with the OXO Process". Pulp Pap. Mg. Can. 92:12, T297-301, 1992. 30. Histed, J.A., "Simplified Bleaching Process", US Patent 4,238,281, Dec.. 9, 1980. 36. Germgard, U., and Steffes, F., "Pulp Washing in a Closed Bleach Plant". Preprints, Minimum Effluent Mill Symposium, Atlanta, GA, Jan. 22-24, 1996, p. 115. 37. Luer, M. and Cunnington, R., "Pulp Washing — Controlling Water Use", Tech. 95 Bleaching Course Notes, CPPA Tech.Sect. 1995. 38. Turner, P., "Water Use Reduction in the Pulp and Paper Industry", 1st edition, 1994. 39. Manninen, D. Status Report— another step forward towards the effluent-free mill. Finnish Trade Review, pp. 14-15, April 1993. 40. Johansson, N.G., Fletcher, D.E. and Clark, F.E. New technology developments for closed cycle bleach plant. Minutes of the 1995 Spring Meeting of Tech. Sect.CPPA Bleaching Committee meeting. Castlegar, BC, May 1995. 41. Blue Ridge Paper Products Inc.: 2001 Color Removal Technology Assessments. 42. SUN, Y.B., ET AL, Tappi 72(9):209(1989). 43. German Pat. 3620980 KRAUSE, T. ET AL "Continuously Processing Pulp- Bleach Effluent", Jan. 14, 1988. 44. DORICA, J., "Removal of AOX from Bleach Plant Ef Iluents by Alkaline Hydrolysis", JPPS 18:6 P J 231, Nov. 1992. 45. EATON, D. ET AL, "Fungal Decolourization of Kraft Bleach Plant Effluent the Chromophoric Material", Tappi 64(9):145, 1980. 46. MATSUMOTO, Y., YIN ET AL "Degradation of Chlorinated Lignin and Chlorinated Organics by White-Rot Fungus". Proceedings of the 1985 CONFIDENTIAL 54 vGIN International Symposium on Wood and Pulping Chemistry, Vancouver BC, Canada, Aug. 26-30. 47. HAMMEL, K. ET AL "Oxidation of Aromatic Pollutant by Phanerachaete Crysosporium Ligninese". Proceedings of the International Seminar on Lignin Enzymatic and Microbial Degradation, Paris April 23-24 1987. 48. KIRK, J., 'Enzymatic Combustion: The Degradation of Lignin by White-Rot Fungi". Proceedings of the International Seminar on Lignin Enzymatic and Microbial Degradation, Paris, April 23-24 1987. 49. NCASI TECHNICAL BULLETIN NO. 609, "In-plant and Closed Cycle Technologies R&D Program-Add On Control Technologies", May 1991. 50. RANBY, B. ET AL, Photodegradation, Photo-Oxidation and Photostabilization of Polymers", Wiley-Interscience, N. Y.(1975). 51. ADAMS, T.N. et al "Kraft Recovery Boiler Physical and Chemical Processes", The American Paper Institute, New York, NY, (1988). 52. Lundahl, H. and Manssin, I., "Ultrafiltration for Removing Color from Bleach Plant Effluent", TAPPI 63:4, p.97, April 1980. 53. Dorica, J., et al, "Complete Effluent Recycling in the Bleach Plant with Ultrafiltration and Reverse Osmosis", TAPPI 69:5, p. 122, May 1963. 54. Morris, D.C., et al, "Recycle of Papermill Waste Water and Application of Reverse Osmosis", US EPA, WCRS Report No. 12040 FUB, January 1972. 55. MacLeod, J.M., Will Achieves Maximum Reuse of Water with Reverse Osmosis", Pulp and Paper(48):12, pp. 62-64, November 1974. 56. Rock, S.L. et al, "Decolourization of Kraft Mill Effluent with Polymeric Adsorbent:. TAPPI Environmental Conference, April 17-19, 1974. 57. Chamberlain, T.A. et al, "Colour Removal from Bleached Kraft Effluents", TAPPI Environmental Conference Preprint, pp. 35-45, Mdy'14-16, 1975. 58. Lindberg, S. and Lund, L.B., "A Non-Polluting Bleach Plant", TAPPI (63):3, p. 65, March 1980. 59. Timpe, W.G. and Lang, E.W., "Activated Carbon Treatment of Unbleached Kraft Effluent for Reuse. Pilot Plant Results", TAPPI Environmental Conference Proceedings, pp. 203-218, May 1973. CONFIDENTIAL 55 VGIN 60. Lang, E.W., "Activated Carbon Treatment of Unbleached Kraft Effluent for Reuse: Final Report on Part 1", EPA/660/2-76-004, April 1975. 61. Report by Sirrine Environmental Consultants, "Effluent Color Treatment, Carbon Adsorption — Color Removal'. Canton Mill, Champion International Corporation Mill, North Carolina, April 1987. 62. Oswalt, J.L. and Land, J:G., "Color Removal from Kraft Pulp Mill Effluent by Massive Lime Treatment', US EPA Environmental Protection Technology Series, report No. EPA-R-2-73-086 (EPA 12040DYD), February 1973. 63. Dorica, J., Private Communication. 64. Narum, Q.A. and Moaller, D.J., "Water Quality Protection at the Shasta Mill", TAPPI Environmental Conference Proceedings, April 1977. CONFIDENTIAL 56 VG Options for Improved Environmental Performance Basis for Study The Blue Ridge Paper Products Inc. mill includes a pulp mill with a nominal production capacity of 1420 ADBT/day of softwood and hardwood pulp. Prior to its being purchased by Blue Ridge Paper Products Inc from Champion International, a major modernization project was undertaken to reduce the effluent outfall from the mill, and improve the effluent quality. Included in this modernization was the complete rebuild of the hardwood and softwood fiberlines and the incorporation of novel technology to improve environmental performance. Since the mill was purchased from Champion, Blue Ridge Paper Products Inc. has continued to improve its environmental performance through process changes and incremental operating practice improvements. An overview of the current softwood pulp production specifications is as follows: Softwood Pulp Production = 655 ADBT/Day Digester K#= 17.5 Post-Oxygen K#= 10.5 CEK# = 2.2 Final Quality Targets 86 % ISO Brightness 15.5 cP viscosity 3 Dirt Count The mechanical equipment on the softwood line includes conventional batch digesters, knotting system, brown stock washers, single stage oxygen delignification, post-oxygen washers, fine screening system, a vacuum decker followed by unbleached pulp storage. The bleach plant includes a pre-bleach washer followed by a conventional D1EoPD2 bleach plant. All washers are Compaction Baffle Washers, except for the second stage post-oxygen washer (decker) after screening, which is a vacuum washer. The softwood fiberline is unique in the world due to: the incorporation of the Bleach Filtrate Recycle (BFR) process. in this process, the D, filtrate is treated in-a Metals Removal Process (MRP), after which is recycled for washing on the bleach pre-washer and the D, washer as shower water. Metals are purged from the system in the acid effluent. The EoP filtrate is largely recycled to the decker filtrate. This process results in the transfer of a high level of chlorides to the recovery cycle. An additional component of the BFR® process is a Chlorides CONFIDENTIAL 57 10GLAI Removal Process (CRP) installed at the electrostatic precipitator. It is at this point that chlorides are removed from the system to prevent buildup of chlorides in the recovery cycle and prevent potential boiler corrosion. This process has been optimized such that 80% of the bleach effluent is recycled to the recovery process, thus achieving a very low effluent volume, and subsequently less discharge of undesirable characteristics, in particular color and toxicity. An overview of the current hardwood pulp production specifications is as follows: Hardwood Pulp Production = 765 ADBT/day Digester K# = 11.0 Post-Oxygen K#= 6.5 CEK# = 2.4 Final Quality Targets 86% ISO Brightness 18 cP viscosity 3 Dirt Count The mechanical equipment on the hardwood line includes equipment that had largely been in operation prior to the major modernization project, but with reconfiguration and upgrades to key pieces of machinery for improved performance. The line includes conventional batch digesters, knotting system, four stage vacuum brown stock washers, single stage oxygen delignification system, a vacuum first�post-oxygen washer followed by screening and two deckers in parallel, followed by unbleached pulp storage. The bleach plant includes a pre=bleach vacuum washer followed by a conventional DrEoDZ bleach plant. All washers are vacuum washers. A copy of'a recent presentation on the past and present configuration of the Blue Ridge Paper Products Inc. mill is included as Appendix 3 in this report. Based on the current configuration of the mill, and the operating practices reviewed during the Site Audit, we have evaluated seMral options for consideration for reducing color discharges, while not increasing effluent toxicity. The commercial status of each of these technologies are summarized in the previous section of this report entitled "Overview of Technology Options". Except for the option to convert to TCF bleaching, all of these technologies may be considered commercially demonstrated, and may achieved the projected performance with a high level of confidence. However, any option which is deemed of interest to Blue Ridge Paper Products Inc. must be studied in further CONFIDENTIAL 58 VGIN detail, including comprehensive laboratory simulations and in some cases, mill scale trials in advance of any decision to proceed. The basis upon which effluent color reductions are based is as follows, and is based on data given by the mill. Should a different baseline be identified, the color reductions will increase or decrease in direct proportion to the change in the baseline: Pine Sewer Stage Color, #/day Color, #/ton D, 7020 10.4 Eop 2690 4.0 D2 1120 1.6 Total 10,830 #/day 16 #/t Hardwood Sewer Stage Color, #/day Color, #/ton DI 7460 8.9 EoP 6810 8.1 Total 14,270#/day 17 #/t Combined Total 25,100 #/day Acid (from Bleach Stages) Stage Color, #/day Pine Di 7020 D2 1120 HW D1 7460 Total 15,600 #/day Alkaline (from Bleach Stages) Stage Color, #/day Pine Eo 2690 HW Eo 6810. Total 9,600 #/day Combined Total 25,100#/day All environmental impact projections are based on outflow from the bleach plant to the effluent treatment plant. CONFIDENTIAL 59 V Options Studied for In-Process Changes Several of the technologies described in the previous section have been commercially demonstrated sufficiently to make reasonable projections on the impact that these technologies may have on the Canton mill. Each of these technologies appear to be viable technologies for implementation at the Canton mill, but we recommend that each case be studied in further detail to confirm logistics of implementation, and confirm availability of power and other utilities that may be required for operation. The technologies that have been reviewed are: Process Optimization Conversion to Extended Delignification Conversion to Two Stage Oxygen Delignification Conversion to ZD Stage (Add Ozone in the First Bleaching Stage) Conversion of Eop Stages to Hot Peroxide Stages Implementation of the BFR®process on the Hardwood Line Conversion to Totally Chlorine Free (TCF) Bleaching In each case, we have quantified the impact on bleach chemical use, water use, and effluent flow, and commented on other impacts which will need to be assessed in greater detail, such as space requirements, utilities required (steam, power, etc.). In addition to the impact on color in the effluent, we have summarized in tabular form,,for each option, the impact on the water use, effluent flow, AOX, Toxicity, Temperature, and Pulp Quality. We have also categorized the level of commercial experience with each technology as it relates to the products manufactured at the Canton mill site. Low 0-3 similar installations in operation Moderate 4-10 similar installations in operation High >10 similar installations in operation. During the site audit, it became apparent that there are a number of current limitations at the mill regarding space and utilities supply. In many cases, the changes which may be considered for the Canton mill may require incremental utilities (steam and power), or may increase the load-�on the existing infrastructure (causticizing and lime kiln). At this level of detail in a study of this nature, it is difficult to arrive at capital cost estimates with any significant level of confidence. Installation costs at existing mills are very site specific and require the development of process flowsheets and preliminary layouts of equipment. However, as requested, we have included CONFIDENTIAL 60 V and preliminary layouts of equipment. However, as requested, we have included a rough estimate of capital cost for each option, and have identified a category of possible capital cost for each option as follows: Low <$1 million Moderate $1-5 million High $5-10 million Very High >$10 million In some cases, the capital cost of support facilities (steam and power, in particular) may be far greater than the cost of the changes to the fiberline. The categories of capital cost consider only the changes to the fiberline. CONFIDENTIAL 61 VGBI PROCESS OPTIMIZATION CONFIDENTIAL 62 �J INGUll Process Optimization Based on the audit, we believe that there is significant opportunity to improve'the performance of the current fiberline by implementing recommendations listed in the "Site Audit and Performance Review" section of this report. The following table provides projections on potential bleach chemical cost savings and the impact on environmental parameters. Current Benchmark Hardwood Softwood Hardwood Softwood D, Kappa Factor (KF) 0.30 0.25 0.22 0.20-0.22 CI02 1.1% 1.4% 0.8 1.1-1.2% Reduction 27% 18% A AOX(kg/t) - - -0.16 -0.11-0.16 A Color (#/day) (20% CIOz savings) 0-770 0-400 Epp NaOH (% on pulp) 1% 2.2% 1% 2.2% Reduction - - 0% 0% 02 (% on pulp) 0.50 0.70 0.30 0.50 Reduction - - -40% -30% H2O2(% on pulp) - 0.5 0.3 0.5 Reduction NA 0% D2 CI02 0.7 1.4 0.6 1.1 Reduction - -14% -21% Total Active Chlorine, #/t 95 147 74 118 -22% -20% Commercial Experience Moderate Moderate Operating Cost decrease decrease Capital Cost Low Low A projection on color reduction is included, however, there is no significant operating data from other mills to quantify the actual results that may be achieved. We estimate that up to 20% of the reduction in CI02 savings in the first D stage may be achieved in color reduction. The key benefit of the process optimization is to reduce bleach chemical costs, although there may be a small concurrent benefit in effluent color and AOX. This is a relatively low cost project, but will require significant internal and potentially external personnel resources for training and monitoring of results. CONFIDENTIAL 63 VGIN CONVERSION TO EXTENDED DELIGNIFICATION CONFIDENTIAL 64 IvGIN Conversion to Extended Delignification Most major rebuilds of fiberlines today include digester designs that are capable of extended delignification. The strategy in operation of the cooking system; however, is site specific. The optimum kappa number for any given pulp is dependent on the yield characteristics of the wood, the steam/power balance in the mill, and the bleaching sequence/bleach chemical costs. Extended delignification may be implemented at the Canton mill with low risk, but high capital cost. Hardwood Softwood Kappa Digester 15.4 25 Post-02 10.1 14.3 Future Digester 11-12 18-20 Post-02 8 9-10 Bleach Chemical Kf 0.30->0.30 0.25 D, 1.12->0.9 1.4->0.9 Eo/Eop NaOH 1.02->0.09 2.2-1.8 D2 0.6-0.7->0.6-0.7 1.5-1.3 Color Current#/Day 14,270 10,830 Reduction % 20% 20% Reduction #/Day -2,850 -2170 Impact Water Use N/C N/C Effluent Flow N/C N/C AOX kg/t -0.11 -0.26 Toxicity N/C N/C Temperature N/C N/C Pulp Quality Significant Increase Significant Increase Commercial Experience High High Operating Cost decrease decrease Capital Cost Very High Very High The replacement of the conventional batch digesters at the Canton mill will have a major, positive impact on the overall energy balance of the mill. Modern displacement batch and modern continuous digesters have been demonstrated to have very low steam use (about 0.5 and 0.9 t steam/t pulp, respectively), and produce high quality, high yield pulps. The barrier to cooking to lower kappa numbers is usually that most mills are recovery boiler limited, and therefore do not have the capacity for additional solids load to recovery. This is not the case CONFIDENTIAL 65 - VON at Canton, and it is expected that the incremental solids load can be handled with minimal capital cost. There is, however, an incremental load in white liquor use to produce low kappa pulps, which may require concurrent investment in the causticizing and lime kiln area. Although the benefits are listed in the table separately for hardwood or softwood pulp, it is assumed that a single cooking system would be installed to replace all of the existing batch digesters at the mill. The key benefits to Canton for replacement of the cooking system is: Significant decrease in steam use Significant increase in pulp strength Minimizing the peak steam demand in cooking Lower kappa variability (lower standard deviation) More uniform pulp quality Lower rejects Reduced bleach chemical consumption Reduced effluent outfall Increased yield Modern cooking systems to practice extended delignification can be either continuous digesters (Kvaerner and Ahlstrom) or displacement batch (GL&V, Valmet, and Lenzing). All of the benefits listed above apply to both technologies, although continuous or batch technology may have an advantage in any specific mill and application. The major differences between the two technologies as it applies to the Canton mill are as follows: Continuous digesters require significantly less space for installation Displacement batch digesters have a significant advantage in quality (minimum off-quality pulp) for a mill that produces both hardwood and softwood pulp. CONFIDENTIAL 66. CONVERSION TO TWO STAGE OXYGEN DELIGNIFICATION CONFIDENTIAL 67 - IGIN Conversion to Two Stage Oxygen Delignification The design of commercial oxygen delignification stages has evolved significantly since its introduction in the 1970s. Most new installations are operated at medium consistency, with the majority of the operating installations being single stage with nominally 60 minutes retention time. Recently, two stage oxygen delignification systems have become well accepted in the industry, especially for softwood pulps. In addition to bleach chemical cost savings, environmental benefits can be achieved due to the lower kappa number entering the bleach plant. Hardwood Pine Current Kappa To OZ 15.4 25 To Bleach Plant 10.1 14.3 Delignification, % 34% 42.8 2-Stage 02 kappa 9.1 12 0 Kappa 1.0 2.3 Delignification 41% 52% Color Current#/Day 14,270 10,830 Reduction % 10% 16% Reduction #/Day -1,430 -1,730 Impact Water Use N/C N/C Effluent Flow N/C N/C AOX kg/t -0.06 -0.115 Toxicity N/C N/C Temperature N/C N/C Pulp Quality/Viscosity Potential improvement Potential improvement Impact on Operating Cost -0.1% CI02 -0.23% CIOZ -0.1% NaOH -0.23% NaOH +Steam +Steam +Power +Power +02 chemicals +Oz chemicals Commercial Experience High High Operating Cost decrease decrease Capital Cost Moderate Moderate CONFIDENTIAL 68 -- - - V iGnt The conversion to a two stage oxygen delignification system requires an upgrade to the pressure capability of the medium consistency pump feeding a new reactor vessel. The new reactor vessel will be sized for 15-30 minutes retention time, and will be a straight walled cylindrical upflow vessel, similar to the existing oxygen reactors in the mill. A second point of addition of steam, oxygen, and alkali, with their associated controls will be necessary. A simplified schematic of this conversion is shown on the next page. The implementation of a second oxygen reactor ahead of the existing oxygen reactor is simple in principle, but particularly on the softwood line, installation may be very difficult due to space constraints. On the softwood side, it may be necessary to install a second medium consistency pump due to a potential remote location of the new first stage oxygen reactor. The capital cost for implementation of this technology is estimated to be $1.5-2 million for the hardwood line, and $2-3 million for the softwood side. From an operating standpoint, this conversion will result in the following changes: Increased steam use Increased oxygen and alkali use Increased power use (pump and mixers) Increased maintenance costs Lower kappa to the bleach plant Reduced bleach chemical costs Reduced environmental impact Increased solids load to recovery There are a number of commercial installations of two stage oxygen systems in North America, with at least two operating on hardwood pulp and at least 7 operating on softwood pulp. Generally, it is difficult to justify the second oxygen reactor on hardwood pulp, as the incremental kappa number reduction is quite small. This makes this technology commercially demonstrated, and operating mills can be visited to verify applicability to the Canton Mill. CONFIDENTIAL 69 Retrofit of a Single Stage Oxygen Delignification System to a Two Stage System 60 Min. Reactor Discharger Pul in 10-30 Min. P Pre- Reactor NaOH, > F— LP Steam 1 ' �w ti NaOHs I pwr r <bFl 02 wY... 02 I r Steam _ u. I Med % HI-Shea HI-ShearrM I Mixer I Mixer Blowtank MP Steam CONFIDENTIAL 70 G St CONVERSION TO ZD STAGE CONFIDENTIAL 71 Conversion to ZQ Stage Ozone gas has been known to be a very powerful delignification and bleaching agent. A key barrier to its commercialization has been the loss in viscosity when applying large quantities of ozone on pulp. More recently, ozone in combination with chlorine dioxide in the first stage of bleaching has been commercialized. The use of a low quantity of ozone in a position in the fiberline with relatively high residual lignin avoids this barrier, as viscosity losses are very low. The application of ozone significantly decreases the active chlorine demand, and reduces environmental impact. Hardwood Pine Kappa to Bleach Plant 10.1 14.3 Kappa factor(KF) 0.30 0.25 Repl. Ratio - #CI02/#03 1-2.5 (1.7) 1-3.4 (1.7) 03 required #/T 6 6 C102 current use 1.1% = 22 #/t 1.4% = 24 #/t Reduction in C102 use -10.3 #/t —10.3 #/t Future C102 use 11.7 #/t 17.7 #/T Future kappa factor 0.152 0.162 NaOH current use 1% = 20 #/t 2.2% = 44#/t Reduction in NaOH in Eo -2#/t -4 #/t Added NaOH for ZD stage +2#/T +2 #/t Net NaOH reduction 0 -2 #/t -H2SO4 use N/C N/C Color Current#/Day 14,270 10,830 Potential Reduction % 25%* 20%** Future Reduction #/Day -3550 #/Day -2760 #/Day Impact Water Use N/C N/C Effluent Flow N/C N/C AOX kg/t -0.27 -0.27 Toxicity N/C N/C Temperature N/C N/C Pulp QualityNiscosity N/C N/C Commercial Experience Moderate Moderate Operating Cost decrease decrease Capital Cost Moderate/High** Moderate/High** CONFIDENTIAL 72 V GLA * Color reduction for the hardwood line is generally based on published data from Domtar at Espanola, Ontario, Canada; however, this is a unique installation which requires consideration before making projections for other installations: 1. Domtar produces birch pulp, known to be very difficult to bleach, requiring a high kappa factor (0.40-0.45). 2. The replacement ratio at Domtar has been reported to be as high as 3.4, however actual projections from laboratory studies show a more realistic replacement ratio for design is 1.7. Data on birch pulp at 9.5 kappa showed the following: ODEoD color= 16 #/t O(DZ)EoD color = 12 #/t Reduction = 25% Therefore, color reduction for Canton hardwood is predicted to be 25%, although this could be higher in commercial operation, if Domtar type results are achieved. ** Color reduction projections for the softwood line needs to take into consideration the recycle of filtrates due to the BFR® process. Estimated reduction: D1 = 7020 #/Day at 25% reduction = 5265 #/Day (1755 #/Day reduction) Eop = 2690 #/Day at 15% reduction = 2287 #/Day ( 403 #/Day reduction) D, = 1120 #/Dav at 0% reduction = 0 #/Day ( 0#/Dav reduction) 10,830 #/Day at overall reduction of 20%, or 2760#/Day reduction *** The capital cost of the system could be "moderate' or "high", depending on whether an ozone generation system is purchased. There is a possibility that a gas supplier would be willing to enter into a long term contract for providing ozone "over the fence". In this case, we estimate that the fiberline equipment may be installed for $0.8-$1.2 million; however, the added cost for the installation of an ozone generation system is likely to be in the range of $4-5 million. The addition of ozone to the first bleaching stage at Canton will have a major impact on chlorine dioxide use in the first stage. The major benefits reported at Domtar, for the conversion of the hardwood line only to ZD technology are: Reduced bleaching cost while increasing final brightness Reduced DCM extractives in the pulp Reduced pulp TOX content No impact on pulp strength or viscosity Reduced AOX, COD, and color in effluent CONFIDENTIAL 73 tlGO/ Although all of these benefits should be realized at the Canton mill as well, the absolute magnitude of the impact of this change will need to be projected based on detailed laboratory evaluations. The fiberline equipment required for installation of ozone in the first bleaching stage is: Ozone pulp mixer Ozone reactor Ozone gas separator Ozone destruct unit (may be near fiberline or near ozone generator) In addition, the sulfuric acid delivery system must be reviewed to assure homogeneous mixing of the acid with the pulp for good pH control, and the medium consistency pump will likely need to be upgraded or replaced to provide sufficient pressure to feed the ozone mixer and reactor. It is technically feasible to install an ozone stage on either or both the hardwood and softwood lines at Canton. The space requirement for equipment is small, so it is likely a location for the mixer, reactor, and gas separator can be located in close proximity to the existing D, towers. A general schematic of the fiberline equipment required is shown on the next page. To support this installation, an ozone generation system must be installed. This must include multiple ozone generators, oxygen gas supply, power supply, chilled water supply, ozone gas compressor, and ozone destruct unit, and oxygen plant. In conjunction with this installation, and as ozone gas is a "new" chemical to be used in the mill, safety procedures must be developed, and adequate alarms and interlocks must be installed to prevent dangerous concentrations of ozone gas being emitted to the atmosphere. The key issue for commercial installation at Canton is power use. Incremental power required for fiberline = 400-500 HP (300-375 kW) Power required for ozone generation = 69-81 kWh/t Hardwood line only = 53,000-62,000 kWh Softwood line only = 45,000-53,000 kWh Thus the incremental power load at the mill site-will be 2.5-2.9 MW for the hardwood line and 2.3-2.6 MW for the softwood line. There are currently at least 5 "ZD" installations operating, with several additional systems currently being installed. These systems are operating on hardwood, CONFIDENTIAL 74 vGIN softwood, and eucalyptus pulps. It is possible for the Canton team to visit commercial installations to determine the viability of this technology for the Canton mill. CONFIDENTIAL 75 IN GN Ozone Reactor Gas to Destruct 0 Gas Separator Compressed Ozone 1 ! Pulp to C102 Tower CONFIDENTIAL 76 V GB CONVERSION OF Eo/Eop STAGES TO (PO)/PHT STAGES CONFIDENTIAL 77 V G1N Conversion of Eop Stages to Hot Peroxide Stages The use of a small quantity of hydrogen peroxide in the first oxidative extraction (Eo) stage has been well established in the industry to reduce chlorine dioxide use and overall bleach chemical cost. Recently, some mills have incorporated more aggressive peroxide stages in this, and other positions in the bleach plant for dramatic reductions in chlorine dioxide use. Although, as far as we know, this technology has not to date been deployed for color reduction, we believe it has good potential for low cost retrofit of this stage to reduce color at the Canton mill. Hardwood Pine Current Kappa to Bleach Plant 10.1 14.3 Kappa Factor (KF) 0.3 0.25 Potential KF future 0.15 0.13 Chemical Use Impact H2O2/ton 16 16 Repl. Ratio#act.Cl/#HZOZ 1.9 2.2 Added NaOH +10#/t +10#/t Added 02 +0#/t +0#/t Added MgSO4 2-4#/t 2-4#/t Color Current#/Day 14,270 10,830 Reduction, % 33% 26% Reduction, #/Day -4700 -2800 Impact Water Use N/C N/C Effluent Flow N/C N/C AOX kg/t -0.3 -0.36 Toxicity decrease decrease Temperature increase increase Pulp Quality/viscosity N/C N/C Commercial Experience Moderate Moderate Operating Cost increase increase Capital Cost (PO)/PHT Moderate/Low Moderate/Low Although this technology has not yet been applied for color reduction, there is substantial laboratory data that supports a significant decrease in color using this technology. Most data is on non-oxygen pulps, but shows reduction in total bleach effluent color in the range of 25 and 45% for softwood and hardwood pulps, respectively for the use of 10 #H2O2/ton addition. Data on oxygen pulps, although limited, suggests a reduction of greater than 35% can be achieved with CONFIDENTIAL 78 vGLAI this technology. A very recent study shows the conversion of an EoP to a PHT stage on softwood pulp resulting in a total bleach color reduction of 60% when the peroxide charge is increased form 12 #/t to 24 #/t (+12 #/t). For Canton, we suggest the total peroxide use of 16 #/t, which is an increase of 16 #/t on hardwood, and an increase of 10 #/t on softwood. This will allow a 50% reduction in kappa factor in the D, stage, thus reducing Di stage color significantly. Based on these peroxide applications, we project a reduction in color from the Eo/EoP stages of 45% for hardwood and softwood. The net reduction in total effluent color will be 33% and 26% for hardwood and softwood, respectively. These reductions need to be confirmed by laboratory studies. There are two technologies that can be implemented to achieve the benefits of increased peroxide use in the Eo stage. There is significant commercial experience with the use of the (PO) stage technology. This technology is very similar to an oxygen delignification stage, where the pulp is treated in a pressurized upflow tower for 1-3 hours at relatively high temperature (>900C). An alternative technology has been developed, in which high temperature is applied only in the first 10-20 minutes, after which, the pulp is discharged to an atmospheric retention tower. This concept is shown on the next page. The implementation of a (PO) stage in the Canton mill will be a relatively high capital cost project, and will be difficult, especially on the hardwood side due to the space requirements for the (PO) reactor. For simplicity, we will describe an overview of the system changes required to implement PHT technology at the Canton mill. It should be recognized, however, that (PO) technology is currently operating on hardwood, softwood, and eucalyptus pulps in mills today, while there is no "true" PHT stage in operation to date. All installations that have the mechanical configuration of the PHT technology, are unable to operate at the specified time, temperature, and/or pressure. The implementation of the PHT technology requires the following steps: 1. Upgrade or replacement of the medium consistency pump feeding the stage 2. Addition of steam sparger and/or steam mixer to add steam to the pulp to achieve a temperature of 195-205°F (90-951C), along with piping and controls for"addition of medium pressure steam to this stage 3. Replacement of the current upflow tube with a pressurized upflow tube designed for 10-20- minutes retention time 4. Upgrade or installation of new magnesium preparation and delivery system 5. Upgrade or installation of new hydrogen peroxide delivery system 6. Upgrade or maintenance of Eo mixer CONFIDENTIAL 79 IvGIN The implementation of the PHT technology in the softwood line should be relatively easy, due to the available space around the existing Eo tower; however, the opposite is true for the hardwood line. It is likely that the new upflow tube for the hardwood line would need to be constructed in place, which will dramatically increase the cost of the installation. In either case, we anticipate the cost of the conversion to PHT technology may be in the range of $1 million, while the conversion to (PO) technology is likely closer to $2 million. This technology is one that could be tested at mill scale at the Canton mill using existing equipment, even with its limitation in retention time. For such a trial to be valid, a means to add magnesium, sufficient quantities of hydrogen peroxide, and a means to increase the temperature to 195-205OF is necessary. Laboratory studies could then be used to predict the benefit of increased retention time in the upflow tube. CONFIDENTIAL 80 e V GIW Upflow Section: Pressurized: 4 bar Temperature: 90 - 130°C Downflow Section: Atmospheric Condition Temperature: 95 - 98°C Pump Mixer CONFIDENTIAL 81 VGU/ IMPLEMENTATION OF THE BFR° PROCESS ON THE HARDWOOD LINE CONFIDENTIAL 82 VGIN Implementation of the BFR° Process on the Hardwood Line The BFR® Process has been commercialized on the pine line at Canton, and it is the only commercial installation of its type in the world. It seems clear that this technology can also be applied to the hardwood line, but at a very high capital cost and significantly increased operating cost. Hardwood Color Current#/Day 14,270 Reduction, % 38 Reduction, #/Day -5400 Impact Water Use, gal/ton 0* Effluent Flow, gal/ton -2200 AOX, kg/t -0.16 Toxicity N/C Temperature increase Pulp QualityNiscosity N/C Commercial Experience Low Operating Cost increase Capital Cost Very High * Condensate use will be reduced by the amount of bleach filtrate used on the oxygen washers. The use of treated mill water will not be affected. The color reduction for this technology is achieved by recycling filtrate back to recovery versus sewering the entire flow from the D, and Eop stages. The projection of color reduction is based on the results achieved on the softwood side when this process was incorporated on that fiberline. The incorporation of this technology will require a new Metals Removal Process (MRP), a new or an upgrade of the existing Chlorides Removal Process (CRP), and an upgrade to the evaporators. It is uncertain how the purge from the CRP will need to be changed to manage chlorides in the recoveryprocess. It is likely that the purge flow will need to be increased, which will increase the color discharged due to this stream. This increase will offset whatever color reductions are achieved in the bleach plant effluent. The BFR® process is estimated to require a capital cost of about $25 million, and will result in operations and maintenance cost increase of about$3-5/ton. CONFIDENTIAL 83 CONVERSION TO TOTALLY CHLORINE FREE (TCF) BLEACHING CONFIDENTIAL 84 gVGLN Conversion to Totally Chlorine Free (TCF) Bleaching There are 22 TCF (kraft hardwood, softwood, eucalyptus and sulfite pulps) bleach plants operating in the world today. Most of these mills operate a TCF sequence only to satisfy market demand; otherwise they operate an ECF or "ECF-Light" sequence. Experience is acceptable quality on kraft hardwood pulps (5 operating) with mixed results on kraft softwood pulps (7 operating). The major issue in commercial operation is the operating cost and flexibility to achieve consistent final brightness and quality. Hardwood Pine Kappa to Bleach Plant 10.1 14.3 Final Brightness, %ISO 87 86 Bleach Chemical, #/ton Q DTPA 4 4 PHTH2O2 30 40 NaOH 30 40 MgSO4 10 10 DTPA 4 4 Z H2SO4 15 15 03 6 6 P H2O2 24 30 NaOH 24 30 MgSO4 10 10 DTPA 4 4 Color Current#/Day 14,270 10,830 Reduction, % 90% 90% Future Reduction, #/Day -12,850 -9,750 Impact Water Use, gal/ton -2400 -2400 Effluent Flow, gal/ton -1900 -1900 AOX kg/t Reduced to background Reduced to background level level Toxicity Associated with metals Associated with metals purge stream i purge stream Temperature increased increased Pulp QualityNiscosity reduced reduced Commercial Experience Low Operating Cost increase Capital Cost Very High CONFIDENTIAL 85 vGIN The sequence selected as an example is the (A or Q)EopZQ(PO or PHT) sequence. This sequence is generally regarded as a conservative design sequence that is easily retrofitted into an existing four stage bleach plant. In the case of Canton, which operates a three stage bleach plant with a pre-washer, the first stage (A or Q) would need to be performed in the existing brown stock high density storage. The steps required for commercial implementation at Canton are the following: 1. Conversion of the brown stock high density storage tower to serve as an A or Q stage 2. Conversion of the D, and D2 stages to P/Eop and (PO)/PHT stages 3. Conversion of the Eo/Eop stage to a ZQ stage 4. Reconfiguration of piping and control schemes 5. Addition of oxygen plant and ozone generation facility Several issues that will be important to consider for this implementation at Canton are: 1. There will continue to be an effluent flow necessary for metals removal, and this purge is likely to be in the range of 500-1000 gal/ton on each line. 2. There is a possibility that the existing BFR® process may be able to serve this purpose on the pine line; alternatively, this process may be shut down to reduce operating cost. 3. There will be a significantly higher energy load for TCF bleaching due to the high temperature peroxide stage(s), potential cooling required for the ozone stage, and the added ozone stage. 4. Space must be made available for the oxygen plant and the ozone generation facility. 5. Pulp Quality will be adversely affected; it is uncertain whether the pulp properties that may be achieved can be suitable for production of the paper and paperboard grades manufactured at Canton. 5.1 The viscosity of the final pulp will likely be reduced by about 15%. 5.2 There is a potential loss in tear strength, which will be directly related to the amount of ozone applied in the ozone stage. 5.3 TCF pulps will require optimization of refining strategy in the stock preparation area. 5.4 The final pulp will have a higher kappa number. CONFIDENTIAL 86 AEoPZEQPHT (or "QPZP") Bleach Plant NaOH ° o 0 0 ° ETA Eop PHT 90°C 110°C/ A Q 98*C 60T 70°C 4 414A1 RIO- HzSOa NaOH 03 NaOHOZ ❑ Oz A HZp2 Eoa O rza N PHT Oz a EDTA Acid Purge CONFIDENTIAL 87 APPENDICES CONFIDENTIAL 88 GUt APPENDIX 1 CONFIDENTIALITY AGREEMENT CONFIDENTIAL 89 CONFIDENTIALITY AGREEMENT BETWEEN BLUE RIDGE PAPER PRODUCTS INC., CLEAN WATER FUND OF NORTH CAROLINA (on behalf of the "Environmental Coalition on BRPP"), LIEBERGOTT & ASSOCIATES CONSULTING, INC., AND GL&V PULP GROUP, INC. Blue Ridge Paper Products Inc., with offices at Main Street, Canton, NC, 28716, Clean Water Fund of North Carolina, with offices at 29% Page Street, Asheville, NC 28801, Liebergott & Associates Consulting, Inc., with offices at 5825 Shalom Avenue, Suite 802, Cote St. Luc, Quebec, Canada H4W 3A5, and GL&V Pulp Group, Inc., with offices at 150 Burke Street, Nashua, NH 03060, USA, (hereinafter collectively referred to as "Parties"), desire to enter into an Agreement which allows them to execute a Bleach Environmental Process Evaluation and Report. WHEREAS, Liebergott & Associates Consulting Inc. and GL&V Pulp Group, Inc., desire to perform a Bleach Environmental Process Evaluation and Report for compensation, and WHEREAS, Blue Ridge Paper Products Inc. and Clean Water Fund of North Carolina and the Environmental Coalition on BRPP, desires that Liebergott & Associates Consulting Inc. and GL&V Pulp Group, Inc., perform a Bleach Environmental.Process Evaluation and Report, and WHEREAS, in the course of the execution of this Evaluation, it will be necessary for Blue Ridge Paper Products Inc. disclose to the other Parties to this Agreement sensitive and confidential business and technical information, THEREFORE, the parties agree as follows: 1. The Parties may have disclosed or may disclose information and may have loaned or may loan material and documents to the other Parties containing certain confidential informa- tion and other technical and business information and material concerning and/or embodying the technical and financial operation of the Pulp and Paper Manufacturing Facility at Canton, NC, (hereinafter referred to individually and collectively as the In- formation"), which may be made available by written and/or verbal communication, as well as by visual observation and shall be presumed to be confidential. 2. The Parties agree not to communicate the disclosed Information to any third party who is not a signatory to this Agreement, without the prior written authorization of the party furnishing such Information, and shall not use the Information nor circulate it within their own organizations except in connection with activities arising out of this Agreement. 3. The Clean Water Fund of North Carolina certifies that it has the authority to enter into this Agreement on behalf of the "Environmental Coalition on BRPP", and agrees that it will have in place, prior to any disclosure of any Information, a Confidentiality Agreement with obligations at least as strong as the obligations in this Agreement. 4. The obligations set forth in Paragraph 2 hereof shall terminate with respect to any particular portion of the Information when the receiving Party can document that: a) it was in the public domain at the time of its receipt from a Disclosing Party; b) it entered the public domain through no fault of the Receiving Party subsequent to the time of its receipt from a Disclosing Party; c) it was in the Receiving Party's possession free of any obligation of confidence at the time of its receipt from a Disclosing Party, and was not previously acquired directly or indirectly from another party to this Agreement; or d) it was rightfully communicated to the Receiving Party by a third party, free of any obligation of confidence, subsequent to the time of its receipt from a Disclosing Party. 5. All materials including, without limitation, samples, documents, drawings, models, apparatus, sketches, designs, and lists furnished to a Receiving Party by a Disclosing Party and which contain Information, shall remain the property of the Disclosing Party and shall be returned to the Disclosing Party promptly at its request with all copies made thereof. 6. This Agreement is effective commencing on April 01, 2001, and the Parties obligations under this Agreement shall expire on March 31, 2006. 7. Nothing in this Agreement shall give any Party the right to use the Information of the Disclosing Party in processes or systems, or to manufacture, or have manufactured, processes, systems, equipment or parts utilizing the Information. 8. This Agreement shall be constructed and enforced in accordance with the laws of the S to of KM lCOtG3l, United States of America. /�, / L ��Na�' h Carolina �1/�$�rLs /U/ JlC T�17.��0 � kks y/Lma/ Rie�'a er Product, Inc. Liebergo &Associat s Consulting Inc. i By: By: r! Title: /floor /fir r/ls Title: I Date: ///19,Q// aS� �p7/ Date: Y b b Clean W er Fund of No h Carolina GL&V Pulp Group, Inc. B . By: A lJ Title: x-c • W , Title: Iwc /Aa1OEM' Date: � ?,&D Z Date: 13 -,VA 41 V APPENDIX 2 STUDY PARTICIPANT RESUMES j CONFIDENTIAL 93 vGIN NORMAN LIE13ERGOTT Ph.D. Norman Liebergott was formerly. a Senior Scientist at the Pulp and Paper Research Institute of Canada (Paprican). He is presently the President of Liebergott & Associates Consulting Inc. and a Special Consultant to Paprican and many pulp and paper companies in the world. Dr. Liebergott is also an adjunct professor of the Department of Chemical Engineering at McGill University, Montreal, Quebec, teaching in a Master and Ph.D program in bleaching of chemical wood pulps and non wood pulps, as well as mechanical and secondary fibre pulps. During his 45 years of service to the pulp and paper industry Dr.Liebergott has distinguished himself as a leader in pulp bleaching processes. His contributions include instrumental work using oxygen, alkali and peroxide to decrease and/or eliminate the use of chlorine and chlorine-containing chemicals in the bleaching sequence of chemical pulps. His work in this area has centred on developing, implementing, and promoting the oxygen-alkali delignification, activated oxygen delignification, oxygen-peroxide re-enforcement of the alkali extraction stage and ozone and per-acid delignification and oxidative bleaching processes. He also has been conducting research on sulphite, kraft, kraft AQ-polysulphide pulping. Dr. Liebergott has developed bleaching techniques using reducing and oxidizing chemicals to enhance the pulp properties of mechanical and secondary fibre pulps. Dr. Liebergott has been involved with over 200 different mills in helping them to better control the bleaching process and to meet environmental regulations. His research in the area of pulp bleaching processes and environmental control has earned him 39 patents and he has published over 100 scientific articles. He has reported his work at over 150 scientific meetings and has been invited to numerous mills in Canada, United States, South Africa, Chile, Argentina, Brazil, Russia and China to provide technical assistance. Over the past several years he has been contracted by different mills to audit the mills by undertaking an evaluation of the bleach plant lines, chemical usage and procedures used by these mills in their bleach plants as well as updating the knowledge of bleach plant operators by providing in-house bleaching technology training Dr. Liebergott has been awarded two Weldon medals and the Douglas Jones Environmental Award from the Canadian Pulp and Paper Association and the Russel O. Blosser Best Paper Award from the Environmental Conferences of the Technical Association of the pulp and paper industry, as well as the Pulp Manufacturers Division Award and the CFC Ritter prize. He also received Paprican's President's Citation Award. In 1991 he was named a Technical Association of Pulp and Paper Industry (TAPPI) Fellow. In the community service area, for the past 28 years Dr. Liebergott was elected as a school board commissioner and has served as either chairman of the Council of Commissioners or the Executive Committee of the Laval, North Island and Laurenval School Boards. In appreciation for his many years of devoted service for his support for the staff, and for his value for public education and the love of children he was recently honoured with the Laurenval School Boards "Distinguished Service Awards" in the field of public education. CONFIDENTIAL 94 VGBI Lewis D. Shackford Vice President GL&V Pulp Group. Inc. Education B.S. Chemical Engineering with minor in Paper Engineer, Magna Cum Laude University of Lowell (formerly Lowell Technological Institute), Lowell, MA Professional Engineering Licensed Professional Engineer, State of New Hampshire (#5823) Affiliations TAPPI Member(Alkaline Pulping Committee since 1973, Brown Stock Washing Subcommittee member since 1981; Pulp Manufacture Division Officer since 1996, currently Chairman) CPPA, APPITA, ABTCP, AIChE, NSPE Summary of Experience Experienced in performing tasks, and/or leading engineers or scientists, as individuals or as teams, towards goals to improve organizations' financial results. Nearly 25 years' experience in pulp mill fiberline systems design and operation, with particular expertise in the areas of pulping, washing, delignification, bleaching, industry and regulatory trends, and emerging process technology. Strong background in proposal preparation, presentation, and benefits analysis for conventional or advanced machinery and technology. Negotiation of agreements for technical and business cooperation and management of agreements with alliance partners has been a key responsibility. Extensive experience in commercialization of new product and process technology, and process risk management. Extensive experience in preparing and presenting technical reports on process design and optimization, technical and business process training, and technical papers for industry conferences. Numerous mill process start-ups and optimization efforts have been undertaken with successful results. General knowledge in woodyard operations, recycled fiber, stock preparation, power/recovery and effluent treatment. Typical Proiect Experiences Leadership of machine and process design for an innovative pulp washer, supervision of installation, and leadership of the start-up and optimization efforts (Southeast U.S. mill). CONFIDENTIAL 95 - - VGB/ Evaluation of the operations of a multiple line kraft mill (several brown stock washing lines and bleaching lines), and development and presentation of strategy to optimize financial results in the mill (Southeast U.S. mill). Participation in high and medium consistency ozone bleaches pilot plants and commercial installations' start-up and optimization (six occasions U.S. and Canada). Start-up and optimization of the first integrated medium consistency oxygen delignification system in North America (Mid-West U.S. mill). Optimization of two stage medium consistency oxygen delignification system (B.C., Canada mill). Development of recommended technical strategy for achieving compliance with USEPA Cluster Rule (several U.S. mills). Optimization of brown stock washing bleaching (plants and unit operations) in numerous American mills. Other Experience and Contributions Continuing Education — "The Professional Manager" and "Managing Business Strategies"—Indiana Executive Program, Bloomington, Indiana. Numerous publications and presentations in the fields of pulp cooking and washing, ECF and TCF bleaching, and issues regarding the closure of mill filtrate cycles to approach TEF operation. List available on request. Patents -4 U.S. issued, 7 pending (32 global issued or pending) TAPPI Pulp Manufacture Division Leadership and Service Award Recipient, 1995. TAPPI Short Course Contributor since 1979 Brown Stock Short Course (Chairman and Instructor), Bleach Plant Operations Short Course (Instructor), Improving Screening and Cleaning Efficiencies Short Course, Oxygen Delignification Symposium (Paper Presenter), Mixing Symposium CONFIDENTIAL 96 vGIN William J. Miller Process Manager Chemical Pulping GL&V/ IMPCO-JONES Inc. Education Bachelor of Science, Pulp and Paper Science and Engineering, S.U.N.Y College of Environmental Science and Forestry at Syracuse University, Syracuse NY 1972. Professional Activities TAPPI member since 1982 Member TAPPI Bleaching Committee 1992- present Instructor for TAPPI B.P.O.S. 1991 -present Presentedrinstructed in ABTCP, Miller Freeman, PIMA, and TAPPI conferences. Named to "Finest Faculty" of TAPPI instructors for 1996 Summary of Experience: Over twenty five years of technical and production experience in pulping and bleaching. Expertise in applying practical research to mill operations. Extensive experience in mill operations, operator training, system start-ups and optimization Development of business plans, based on industry trends Process areas of expertise include: oxygen delignification, bleaching systems, washing systems; Kraft recovery liquor cycles. 1988-present: GL&V/Impco-Jones, Inc., Nashua. N.H. Process Manager-Chemical Pulping Primarily responsible for the development, marketing and performance of pulp bleaching process equipment and systems, including oxygen delignification, chlorine dioxide, reinforced extraction, ozone and hydrogen peroxide systems. This involves equipment and process development, business planning, directing operator tr is ping, process and equipment start-ups, planning and conducting process optimization. Recent projects include bringing economical equipment (TRI-PhaseTM mixer) and process solutions to the marketplace for achieving "Cluster Rule" compliance levels. CONFIDENTIAL 97 vGLAI 1988-present: GLBV/Impco-Jones, Inc., Nashua. N.H. (continued) Other responsibilities include: Fiberline system design, environmental impact and process guarantees World wide technical sales support Brownstock and post oxygen washing systems ECF bleach plant conversions and optimization Presenter/Trainer for industry seminars and conferences Process consulting and troubleshooting for customer mills 1972-1988 Technical and production supervisory positions for two major pulp/paper companies. Experience included: Evaporator/Recovery boiler operations and maintenance --- ----Recausticizing operations, maintenance and upgrades Bleach plant, brownstock system start ups and optimization Chemical manufacturing and handling, including R-3 and R-8 CI02 start ups and optimizations All aspects of operator training, including safety sessions and Involvement Teams Publications "Effect of Entrained Black Liquor Solids on Medium Consistency Oxygen Delignification", TAPPI 74(2) 117 (1991) "Effect of Kraft Pulping on Oxygen Delignification Kinetics", TAPPI 82(10) (1999) Patents US Patent No. 5,916,415, "Oxygen Delignification of Medium Pulp Slurry", (1999) CONFIDENTIAL 98 APPENDIX 3 GLOSSARY OF TERMS f CONFIDENTIAL 99 - � VGLAI Active Cl2 —The expression used in oxidative bleaching technology to express concentration of different oxidizing agents in terms of chlorine oxidation equivalents. ADMT—Air Dry Metric Tons (pulp) - Refers to the weight of dry pulp/paper in equilibrium with the atmosphere. Though the amount of moisture in dry pulp/paper will depend on the atmospheric condition of humidity and temperature, as a convention, 10% moisture is assumed in air dry pulp/paper. AOX — Adsorbable Organic Halides — A measure that describes the total amount of organochlorine (reported as Cl) in effluent. BOD — Biochemical Oxygen Demand —When effluent containing biodegradable organic matter is released into a receiving water, the biodegradation of the organic matter consumes dissolved oxygen from the water. The BOD of an effluent is an estimate of the amount of oxygen that will be consumed in 5 days following its release into a receiving water; assuming a temperature of 20°C. CPPA—Canadian Pulp and Paper Association COD — Chemical Oxygen Demand — measures the oxygen equivalent of the organic matter content of a sample that is susceptible to oxidation by a strong chemical oxidant. Delignification — The removal of lignin, the colored material that bonds wood fibers together, during the chemical pulping process. ECF— Elemental Chlorine Free (bleaching) - ECF papers are made exclusively with pulp that uses chlorine dioxide rather than elemental chlorine gas as a bleaching agent. This virtually eliminates the discharge of detectable dioxins in the effluent of pulp manufacturing facilities. Exotherm -A chemical reaction giving off heat. ISO— Intemational Standards Organization, unit of measure for bleaching (%) Kappa Factor — Ratio of equivalent chlorine bleaching chemicals applied to the lignin content of the pulp in the Do bleaching stage. Kappa Number—A term used to define the lignin content in pulp. NCASI —National Council for Air and Stream Improvement TCF — Totally Chlorine Free (bleaching) - Totally chlorine free applies to virgin fiber papers that are processed with a bleaching sequence that includes no chlorine or chlorine derivatives. Transition metals— noted for their variability in oxidation state, these metals differ from other metals in that their valence electrons are in more than one shell. Interfere with efficiency of certain oxidative bleaching chemicals. TSS—Total Suspended Solids—the portion of total solids retained by a filter. Viscosity — A measurement of the degree of polymerization of the pulp's cellulose, which is an indicator of pulp strength. Conversions: To convert m3 to gal, multiply by 264.2 CONFIDENTIAL 100, APPENDIX 4 TECHNICAL OVERVIEW OF BLUE RIDGE PAPER PRODUCTS INC CONFIDENTIAL 101 EVOLUTION OF FIBERLINES Blue Ridge Paper Products Canton, North Carolina HARDWOOD FIBERLINE (PAST) . • 7 - 3300 cubic feet batch digesters • 2 - Brownstock washer lines — Vacuum washers • Two stage fine screen room • 2 - Bleach lines — CEHD (Low Brightness) — CEHHD (High Brightness) HARDWOOD LINE SCHEMATIC PRE 1993 Brownstock Washing Screening Knotting 0 FInbleache Storage C E Centricleaners D High ® ® Hardwoo H H 7 (b I 4211) Centricleaners TOD Low ® ® ardwoo OPERATING CONDITIONS HARDWOOD (PAST) • 650 ADBT/Day • Digester K# = 10.0 • CEK = 4.0 i Final Quality — 80 & 82 ISO Brightness — 10 cps Viscosity — 20+ Dirt count SOFTWOOD FIBERLINE (PAST) • 11 - 3300 cubic feet batch digesters • 1 - Brownstock washer line — Vacuum washers • Two stage fine screen room • 2 - Bleach lines — CEHDH (Low Brightness) — CEHHDH (High Brightness) SOFTWOOD LINE SCHEMATIC PRE 1992 Brownstock Washing Screening C E nbleach d Storage ® C E JACentricleaners PD HrHh Centricleaners H PD HLow Pine OPERATING CONDITIONS SOFTWOOD (PAST) • 900 ABDT/Day • Digester K# = 21 .0 • CEK = 6.0 • Final Quality — 80 & 82 ISO Brightness — 13 cps Viscosity — 20+ Dirt Count i HARDWOOD FIBERLINE (PRESENT) • 9 - 3300 cubic feet batch digesters • Two stage Knotting • Vacuum Washers • 1 - Brownstock washer line — 4 Stage -Pre 02 - 3 Stage Post 02 • Four stage pressurized fine screening • 1 - Medium Consistency Bleach line — OD100TMEoD HARDWOOD LINE SCHEMATIC PRESENT Pre Oxygen Washers 02 Reactor Post Oxygen Washers Knotting Blow Screening Tank Pre-Bleach Washer D1 Washer Eo Washer D2 Washer D1 Eo D2 Y C OPERATING DESIGN HARDWOOD PRESENT • 765 ADBT/Day • Digester K# = It.0 • 02 K# = 6.5 • CEK = 2.4 • Final Quality — 86\IS0 Brightness — 18 cps Viscosity — 3 Dirt count SOFTWOOD FIBERLINE (PRESENT) ® 9 - 3300 cubic feet batch digesters • Two stage Knotting ® Compaction Baffle Washers • 1 - Brownstock washer line — 3 Stage Pre 02 - 3 Stage Post 02 • Four stage pressurized fine screening • 1 - Medium Consistency Bleach line — OD100TMEopD SOFTWOOD LINE SCHEMATIC PRESENT Washer/Decker 02 Reactor Pre-02 Washers Knotting Post 02 Washer Brown Screenin Stock i-Densi ® ®' Pre,-Bleach Washer Dl Washer Eo Washer I D2 Washer Bleached D1 Eo D2 Hi-Densi Storage OPERATING DESIGN SOFTWOOD (PRESENT) • 655 ADBT/Day • Digester K# = 17.5 • 02 K# = 10.5 • CEK = 2.2 • Final Quality — 86 ISO Brightness — 15.5 cps Viscosity — 3 Dirt Count CANTON MILL SECONDARY EFFLUENT ENVIRONMENTAL PERFORMANCE Pre - Modernization Post - Modernization • Effluent Flow • Effluent Flow — 45 MGD — 29 MGD • Effluent Color Effluent Color — 115 kg/tonne of — 30 - 35 kg/tonne of pulp Pulp Effluent BOD • Effluent BOD — 0.5 - 1.0 kg/tonne of — 1.6 kg/tonne of pulp pulp Canton Mill Secondary Effluent Color Annual Average 400000 350000 300000 ea 250000 200000 s. 0 0 150000 U 100000 50000 0 1988 1989 1990 1991 1992 1993 SOFTWOOD LINE SCHEMATIC PRE 1992 Brownstock Washing Screening E NCC nbleach d Fl Storage ® qC E Centricleaners H H D H High \ ® Pine �Centricleaners IH TD HLow Pine i OPERATING CONDITIONS SOFTWOOD (PAST) • 900 ABDT/Day • Digester K# = 21 .0 • CEK = 6.0 • Final Quality — 80 & 82 ISO Brightness — 13 cps Viscosity — 20+ Dirt Count HARDWOOD FIBERLINE (PRESENT) • 9 - 3300 cubic feet batch digesters • Two stage Knotting • Vacuum Washers • 1 - Brownstock washer line — 4 Stage Pre 02 - 3 Stage Post 02 • Four stage pressurized fine screening • 1 - Medium Consistency Bleach line — OD100TMEoD r - i HARDWOOD LINE SCHEMATIC PRESENT Pre Oxygen Washers 02 Reactor Post Oxygen Washers Knotting 0 Blow Screening Tank Pre-Bleach Washer D1 Washer Eo Washer D2 Washer Dl Eo D2 e o OPERATING DESIGN HARDWOOD (PRESENT) • 765 ADBT/Day • Digester K# = 11.0 • 02 K# = 6.5 • CEK = 2.4 • Final Quality i — 86\IS0 Brightness — 18 cps Viscosity — 3 Dirt count SOFTWOOD FIBERLINE (PRESENT) • 9 - 3300 cubic feet batch digesters • Two stage Knotting Compaction Baffle Washers 1 - Brownstock washer line — 3 Stage Pre 02 - 3 Stage Post 02 Four stage pressurized fine screening • 1 - Medium Consistency Bleach line — OD100TMEopD SOFTWOOD LINE SCHEMATIC PRESENT Washer/Decker 02 Reactor Knotting Pre-02 Washers Post 02 Washer Brown Screenin Stock i-Densi Pre?Bleach Washer DI Washer Eo Washer D2 Washer Bleached D1 Eo D2 Hi-Densi Storage OPERATING DESIGN SOFTWOOD (PRESENT) • 655 ADBT/Day • Digester K# = 17.5 • 02 K# = 10.5 • CEK = 2.2 • Final Quality — 86 ISO Brightness — 15.5 cps Viscosity — 3 Dirt Count CANTON MILL SECONDARY EFFLUENT' ENVIRONMENTAL PERFORMANCE Pre - Modernization Post - Modernization • Effluent Flow • Effluent Flow — 45 MGD — 29 MGD • Effluent Color • Effluent Color — 115 kg/tonne of — 30 - 35 kg/tonne of pulp pulp Effluent BOD • Effluent BOD 0.5 - 1.0 kg/tonne of — 1.6 kg/tonne of pulp pulp Canton Mill Secondary Effluent Color Annual Average 400000 350000 300000 ea 250000 200000 0 c 150000 U 100000 50000 0 1988 1989 1990 1991 1992 1993 SOFTWOOD LINE SCHEMATIC PRE 1992 Brownstock Washing Screening C E nbleach d Storage ® rci E Centricleaners H H T[D H High Pine Centricleaners H D H Low ® Pine OPERATING CONDITIONS SOFTWOOD (PAST) • 900 ABDTlDay • Digester K# = 21 .0 • CEK = 6.0 • Final Quality — 80 & 82 ISO Brightness — 13 cps Viscosity — 20+ Dirt Count HARDWOOD FIBERLINE (PRESENT) • 9 - 3300 cubic feet batch digesters • Two stage Knotting • Vacuum Washers • 1 - Brownstock washer line — 4 Stage Pre 02 - 3 Stage Post 02 • Four stage pressurized fine screening • 1 - Medium Consistency Bleach line — OD100TMEoD HARDWOOD LINE SCHEMATIC PRESENT Pre Oxygen Washers 02 Reactor Post Oxygen Washers Knotting 0 Blow Screening Tank Pre-Bleach Washer D1 Washer Eo Washer D2 Washer DI Eo D2 a o 3 F ii OPERATING DESIGN HARDWOOD (PRESENT) • 765 ADBT/Day • Digester K# = 11.0 • 02 K# = 6.5 • CEK = 2.4 • Final Quality — 86\IS0 Brightness — 18 cps Viscosity — 3 Dirt count SOFTWOOD FIBERLINE (PRESENT) • 9 - 3300 cubic feet batch digesters • Two stage Knotting • Compaction Baffle Washers • 1 - Brownstock washer line — 3 Stage Pre 02 - 3 Stage Post 02 • Four stage pressurized fine screening • 1 - Medium Consistency Bleach line — OD100TMEopD SOFTWOOD LINE SCHEMATIC PRESENT Washer/Decker 02 Reactor Knotting Pre-02 Washers Post 02 Washer Brown Screenin Stock i-Densi Storage Pre Bleach Washer D1 Washer Eo Washer D2 Washer Bleached Hi-Densi DI Eo D2 Storage ® '1 OPERATING DESIGN SOFTWOOD (PRESENT) • 655 ADBT/Day • Digester K# = 17.5 • 02 K# = 10.5 • CEK = 2.2 • Final Quality — 86 ISO Brightness — 15.5 cps Viscosity — 3 Dirt Count CANTON MILL SECONDARY EFFLUENT ENVIRONMENTAL PERFORMANCE Pre - Modernization Post - Modernization • Effluent Flow • Effluent Flow — 45 MGD — 29 MGD • Effluent Color Effluent Color — 115 kg/tonne of — 30 - 35 kg/tonne of pulp pulp • Effluent BOD • Effluent BOD — 0.5 - 1.0 kg/tonne of — 1.6 kg/tonne of pulp pulp Canton Mill Secondary Effluent Color Annual Average 400000 350000 300000 ee 250000 b 200000 0 0 150000 U 100000 50000 0 1988 1989 1990 1991 1992 1993 SOFTWOOD FIBERLINE (BFRTM) • Demonstration of Bleach Filtrate Recycle (BFRTM) — Chloride Removal Process — Metals Removal Process — Closure of first two bleach stages BFR CONCEPT FLOWSHEET BLACKfit isC ORIIE 4„} Q RECOVERY I �RMOVAU` ��LIQUOR ESP EVAPS BOILER '°EROCESS 110 Cl & K CAUSTICIZING WATER WOOD COOKING/ PULP D EO D WASHING/ OXYGEN SCREENING DELIG. � �RMOA sZ Ca & PfRO��ES�' M FILTRATE RECYCLING SCHEME TO DECKER FILTRATE TANK I I HOT WATER r - - - - - - - - - - - - - i , I WHITE- , WATER I 1 I I I I 1 I I I I I I I , I D1 EOP D2 I I 1 I I 1 1 I I I I I I I I \ 1 I L — — — — — — — — asr,t # - TO DECKER TO BLEACHED L _ _ _ METALS HIGH DENSITY SHOWERS PURGE STORAGE FIBERLINE OPERATION WITH BFRTM • Reduced bleach plant effluent from 19 m3/tonne to 6 m3/tonne • Increased operating cost ^40 % • No serious scaling issues to date • No detected change in corrosion OTHER IMPROVEMENTS • Spill Control and Collection — Installed new sump collection systems — Improved planning during outages • Hardwood Filtrate Recycle — Recycling �20 % of Eo filtrate — Evaluating D100 filtrate reuse CANTON MILL SECONDARY EFFLUENT ENVIRONMENTAL PERFORMANCE Post - Modernization BFRTM Operation • Flow - 29 MGD • Flowl - 29 MGD • Color - 30 - 35 • Color - 20 - 25 kg/tonne of pulp kg/tonne of pulp • BOD - 0.5 - 1.0 • BOD - 095 - U kg/tonne of pulp kg/tonne of pulp • AOX - 0. 13 - 0.22 AOX - 0.04 - 0. 12 kg/tonne of pulp kg/tonne of pulp Canton Mill Secondary Effluent Flow Annual Average 50.00 45.06 44.68 45.00 -- 42.67 -- -- - - A 40.00 - ------ o. 35.00 - - 32.72 30.00 - - 7.27 27.58 27,36 -25� ��� 2 .50 24.67 25.00 - -- -- - c 20.00 -- -- - - - -- 15.00 - - - - -- -- 3 10.00 -- --- -- - - - - - - w 5.00 - - - - -- - - - --- - 0.00 Canton Mill Secondary Effluent Color Annual Average 4009000 - 350,000 - - 3009000 - - 2509000 - - 2009000 - �, 1509000 - - 0 c 1009000 - - 509000 - - 00 00 C\ 01 C1 01 C1 C1 C1 C1 C1 C1 C1 CIN Canton Mill Secondary Eiffluent BOD Annual Average 2.50 - 2.00 1.92 - 1.65 C 1.50 - 1-34 A1.00 - -- --o:7s-._ O 0.62 0.68 0• 0.67 0.63 - 0.46 0.44 0.50 -- ------ -- - 0.00 - 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Canton Mill Secondary Effluent COD Annual Average 50.00 - 44.00 40.00 - --35:28----- ._ . ---- ---- - ._ C 0 30.00 -- ------ - 22.00 A 20.00 ® 12.28 10.59 9.70 8.40 U 10.00 - -- - -- 0.00 -- 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Canton Mill Secondary Effluent AOX Annual Average 0.20 - 0.17 0.15 a 0.15 — --- -- -- 0.11 0.09 0.09 0.10 0.10 — -- ------ - �C 0.05 — ---- 0.00 1995 1996 1997 1998 ' 1999 2000 I T=nba - 8om!mnd{m pue ialrwunul J 8umpuudnepwloleau!-q I svog!p—lgsn-p 9uw4 -]sw pmongrye 7a pmou-SOZ moo nsu aye 8owldapSpew "ism p;uoug M w Ie°ou- mJ ssaaod uo-pp am,ba'Aetq o u!g�pinom aulagas siyl T mJ—oos f go-ppe agnbw Sett' v '%SZ 'YS o7 OZ Aq assalw!m S1a101(SQ.0 mlw an!lel!m!sse papaw aql"811 OZ Ag---q m4mm(ScauD gH1wp;,gO=.plmmm0O1u3 T ws lou mm—u 21wOg8nO108mI 'm!s uo Peel TUQp -parbw SPHOS Page !p 1c1MUM uo puq lw!aylnsu!m anp Sq sasaaop moo nnu a Pjf anP Iwmbv m!s umgsumop -p 8om!uwdm;pull amenu!au1 T -pmnbal v4s vo pull lwug!nsv!m •0!ty aql plmb-m!s umansumoa ro 8ompumd ne peloT--,ut -P 'a1!s as Pull!]wuglnsu!Oq -p pam,bai 2OS unagsumad - 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J q)81E ZE 91 6S1 t'9 19 PflVirAM'IMJ1.M03M I %001 %58-08 VIN °/A6 %96 %09-O9 %06-08 %06-08 `V''Bgvavo NOI.LDncr"N010J SM9010NH331 WAOMH HO100 AO.LN3NSS3SSV I00Z 30 AUVLaAMS 1-I 211 V.L eurlareo yyoN Voluso 'aul slanllard Jaded 86P21 anlH _ luewssGWV Aftoug3a1 IVAOWB2l MOD IooZ �E I 2001 Color Removal Technology Assessment Blue Ridge Paper Products hic. Canton,North Carolina TABLE 1-1 SUMMARY OF 2001 ASSESSMENT OF COLOR REMOVAL TECHNOLOGIES NEW COLOR REDUCTION CAPABILITY 80-900/6 80-90% 50-WI 95% 90% N/A 80.85% ]00% THEORETICAL MAXIMUM 64 64 159 16 32 318 fore rmpn 64 290 EFFLUENT COLOR,color units 8) THEORETICAL AVERAGE .31 31 94 IO 21 208(before tni)rinp�' 36 190 EFFLUENT COLOR,color wits - DEMONSTRATED ABILITY TO CONSISTENTLY ACHIEVE NO NO NO YES YES YES NO NO 50 COLOR UNITS ' ESTIMATED ANNUAL $26,407,504 S19,341,523 $12,868,528 528,304,090 521,890,847 54,374,404 $6.647,723,. OPERATING COST $2,137,053 ESTIMATED CAPITAL COST S57,373,000 $60,994,000 $40,203,000 =$149,768,000 $9912891000 S34,789,000 $38,140,000 $11,151,000 ISSUES a No(mown commercial L No(mown co mnereial s. No(mown mnmietcial installations a. No Inrowm commercial a. No known cornmeircial L This technology does not remove L No(mown commereial No known commercial installations installations form application installations for an application for an application similar to the Canton installations for an application installations for an application color It relies on the assimiktive installations for an application foran application sbailar to the similar to the Canton MiLL similar to,the Canton Mill. Mill. ifinilar to the Canton Mill. siimbrtD the Cantou Mill. :olor capacity of the river similar to the Canton Mill. Canton Mill. 1 _ Plants using alum as an end-of- _ Fullsak lime treatment for b. Treatment process is incapable of b.Color reduction capability b. No pilot tests have been b.This technology is very sensitive .An extensive research b. Assures color remaining in waste- ipe color removal feCbhWlogy cobr removal a other facilities was achieving color target of 50 color mits. removal percent is based on an conducted using this technology. in increases in treated effluent color effort by EPRI and Bowater waterfteatrnent influent would still abandoned those,operations due to abandoned doe to inability to gmeeringjudgmet. and/ordroughtconditioars. Either achieved a much lower undergo a 25%color reduction across operatingilifficultiesand aebimc cokrobjective a Downstream site required don to - c.Color reduction capability tordition can result in a significant he mamerd plan inconsistent performance. insufficient land on site. c. Downstream site uucd due removal req percent is based on an increase in the required pond efficiency(25-30%removal). Downstream site required due to insufficient lard on site, wring judgment volume. a Assmrrs excess steam¢available i c. Dowustreamsite required due Do msuffideot land on site, it. Incinerator and air permitting a Downstream site required at the Mill. bo insufficient land on site required. L Ittimvatorand airpermitting d. Downstream site required don c.If the river Bow decreases by due to in a frcient land on d. Efuent total dissolved solids insufficient hnd out site. 13%(drought),the river will not site d. Effluentmmldisolvedsolids LIDS)Merely to unease by20to ve the needed assimilative color' . t (TDS)Irkelytoinaracby20to 5%. capacity- 25%. a. May require adds process for d. This scheme would result in e May rectum,add-on process for IDS removal at additional cost. nearly depleting the rives flew TDS removal at additional cost. during drought conditions f. incinerator and air permitting ' f. Incinerator and au permitting required. required. I � 1 I 1 I 1 ' 7