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Indonesia: Latest update of a world large new pulp mill in southern Sumatra

SouthSumatra

Recovery boiler: ANDRITZ to supply the world’s largest High Energy Recovery Boiler to OKI Pulp & Paper Mills, Indonesia

International technology Group ANDRITZ has received an order from OKI Pulp & Paper Mills to supply the world’s largest recovery boiler for OKI’s new kraft pulp mill in Indonesia. Start-up is scheduled for the second quarter of 2016. The order value amounts to approximately 120 million euros.

The total capacity of the ANDRITZ High Energy Recovery Boiler (HERB) is about 50% higher than of any other recovery boiler in operation today worldwide, reaching a black liquor firing capacity of 11,600 tons of dry solids per day. The maximum daily green electricity production of the boiler is equivalent to the average daily electricity power need of a European city of one million inhabitants.

The boiler will feature state-of-the-art solutions for optimizing power-to-heat ratios by operating at higher pressures and temperatures than conventional boilers. This allows pulp mills to maximize their environmental-friendly power generation.

The biomass boiler and dryer supplier  is Finnish company Valmet
Valmet supplies a part of pulp mill equipment and systems with a value of approximately EUR 340 million. The order is included in Valmet’s first quarter 2014 orders received. Commercial production expected to begin in 2016

The new mill is expected to produce approximately 2 million ADT (air dry tonne) of pulp annually. The commercial production is expected to begin in 2016. Valmet’s delivery includes the following parts of the pulp mill: two biomass
gasifiers, two biomass boilers, an evaporation system, two lime kilns and two pulp dryers.

Financing of the project is secured in China

Asia Pulp & Paper (APP) the owner of OKI Pulp & Paper Mills secured a $1.8 billion loan from China Development Bank (CDB) to finance the development of what will be Indonesia’s large pulp mill, according to a statement released by the company.

The total cost of the new mill, will be $2.6 billion. It will will have an annual capacity of 2 million metric tons of pulp and 500,000 tons of tissue paper, potentially South Sumatra’s pulp production by 36 percent.

Only plantation wood
The OKI mill will be constructed in an under-developed part of South Sumatra province and will have a projected annual capacity of 2 million tones of pulp and 500,000 tonnes of tissue.

As is the case with all APP mills, PT. OKI Pulp & Paper Mills will only use plantation wood for its raw materials, and is committed to zero deforestation in its supply chain. APP will also apply the principles of Free, Prior and Informed Consent (FPIC) as part of the mill’s development process. This commitment was launched by APP’s Chairman, Teguh Ganda Wijaya, in February 2013 as part of APP’s Forest Conservation Policy.

Mr. Wijaya said: “The Indonesian Government wants our sector to grow and we are committed to supporting them in this aim to cement the country’s position as a global player in pulp and paper. We are investing in the best technology available to create the world’s most advanced pulp and paper mill, manufacturing our products as efficiently as possible with the lowest possible environmental impact.

“We also hope our mill will give a boost to the people of South Sumatra, for many of whom there are currently very limited employment prospects.”

10,000 new jobs

The OKI mill is projected to create 10,000 new jobs. The mill will use the most advanced environmental technology and standards available in the world today. Clean and self sufficient energy generated from the pulp production process and other production waste such as wood bark will power the mill.

Local South Sumatra authorities have estimated that the investment will increase South Sumatra’s export by more than 36%, or an overall GDP growth of 9%. The investment is also welcomed by local authorities because strategically the development will include supporting infrastructure that improves access to the remote area. Additionally, local communities will have opportunities to be employed locally instead of having to migrate to other areas to look for jobs.

20140221/conBio.info/Lennart Ljungblom

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