A Kawerau paper mill has found a new power source as New Zealand struggles with a looming winter power crunch.
A newly released briefing to the Minister shows electricity supply is tight, and gas supply needs to be maintained until suitable alternatives are found.
Essity’s Kawerau Paper Mill has become the first in the world to create a machine that runs entirely on geothermal steam.
Essity General Manager Mark Stevens told Kerre Woodham that the main area of benefit is sustainability – with the mill producing the same amount of paper with 66% less carbon output.
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Episode Transcript
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Speaker 1 (00:06):
You're listening to the Carrywood and Morning's podcast from news
Talks hed B.
Speaker 2 (00:11):
New Energy Minister Simon Watts to taking a bit of
a change of direction. You might have heard the story
on that this morning with Mike Coskin. Is being warned
of the risk of winter power outages and potential business closures,
and newly released briefing to the minister shows electricity supply
is tight and gas supply needs to be maintained until
(00:33):
suitable alternatives are found. Also says some households and businesses
are finding energy unaffordable. Well interestingly enough, and I was
going to talk to Mark anyway, but this is topical
given the briefing paper. I was at the BS Global
Federation conference last week and heard a very positive story
(00:53):
from Sidy's Carwardo paper Mill. They've launched the world's first
shoe machine that runs entirely on geothermal steam. And to
tell us about it, I'm joined by sd General Manager
b to B Sales Marks. Even's a very good morning
to you, Mark Kerry High.
Speaker 3 (01:10):
Hi, nice to talk to you.
Speaker 2 (01:11):
So it only opened last week, didn't it. I think
you were there in Cowdo other day before the conference.
Speaker 3 (01:16):
Yes, the official opening was last week. We yeah, correct,
we had the machine. Obviously, it was a three month project,
a major rebuild of the existing machine for us to
convert it to being the first machine in the world
to be one hundred percent gfmal stem at the drying
end of the machine, which is where all the energy
it's consumed and papermaking.
Speaker 2 (01:36):
And so how much has it reduced cost by? How
much has it reduced your carbon output by? What's the
benefit to the company.
Speaker 3 (01:46):
Well, the benefit is mainly in the area of sustainability obviously,
so it's reduced This one project has reduced the mills
carbon output by twenty five percent since twenty ten when
we started the gsm or journey. We're making the same
amount of paper, but we reduced our total outlook of
carbon from the middle by sixty six percent, so it's
(02:09):
definitely a carbon story. Is a global hygiene and health
giant and one of our We are a member of
the Sustainable Business Targets Initiative, which means we get committed
to a reduction of thirty five percent of carbon by
twenty thirty and to net zero by twenty fifty. So
obviously the project had to pay for itself. But the
(02:30):
driver was essentially around saving our output of carbon, reducing
our output of carbon.
Speaker 2 (02:36):
Right, So and that's continuing. It's a global brand and
that's continuing despite the change of power and.
Speaker 3 (02:43):
The years. Yeah, yeah, I know. We're we're based in
We're a Swedish based company. Well there we go here
and look from a cost perspective, very obviously GSM was
going to have any talent benefit, but the main issue
for us is sustainability and also consistency. Obviously electricity in
New Zealand, the national grid, I mean, you know, it
(03:03):
went from five dollars a gig of what at the
beginning of last year I think eight hundred in the
middle of the winter and back down again. So it's
really hard for businesses in New Zealand to handle that.
And I think, you know, it was definitely a contributing
factor in the other you know, unfortunate mill closures we
saw in the middle of the larstity end of last year.
Speaker 2 (03:21):
That's exactly what they said. It was the supply, consistency
of supply and the cost. So did you have to
buy a special machine that could handle geo thermal energy or.
Speaker 3 (03:34):
We didn't, yes, sort of. Yeah, so definitely most machines
are set up to use natural gas or carbon fuels,
so that that's what ours were. And over the last
period we've converted this machine was an investment twenty million
dollars plus investment by ourselves plus a million dollar two
million dollars from echa contribution from the government which was
(03:55):
which was gratefully received, and we had to basically rebuild
the existing machine. So it's been there for thirty years. Wow.
So you have to come. There's like the length of
a football field. They're dinormous. They have lots of steam
and stuff coming off them and there's big bits of cats. Yeah,
and so we had to essentially take it out offline
(04:16):
for three months. We had to cut a hole in
the roof of our building and take out the significant
working part of the machine, which is called the Yankee
cylinder and put a new one in which came from
Meatley Pop that and about seventy tons each and so
you know, a major rebuild an existing machine and it's
all New Zealand technology where it was a world first
and yeah, we're really really proud of it.
Speaker 2 (04:40):
So why not electricity if you're looking at sustainability, did
you were you concerned about the cost and the consistency
of supply.
Speaker 3 (04:48):
Yeah, I don't think the way it works is at
the end of the machine you need hoty acted to
dicey could have electricity doing that, it would be prohibitively,
experience might suggest. And again in New Zealand, you just
go from one to the other. So we're the only
manufacturer of tissue products Zealand, so you'll go to the supermarket.
(05:08):
I mean, I look after our B to B brands
plan Talk, which you'll see in your radio station or
offices or airports or schools. But if you go to
the supermarket you'll see Handy, Purex and Sortment, which are
our brands and New Zealand brands for a long time.
And we're the only manufacturer in New Zealand, so you know,
we can take essentially what's a waste product pulp from
the lumber industry, use local ingenuity in that and make products.
(05:32):
So it's a real success story. We're very proud it
really is.
Speaker 2 (05:36):
However, when I was looking at the briefing document to
Simon Watts, the Energy Minister, it said New Zealand's likely
to get very high levels of renewable electricity in the
medium term, but gas and coal will needed for some
time yet. However, thermal generation is aging and so at
(05:56):
a risk of suffering outages or coming to the end
of its life. Since when did these stop making thermal energy?
Speaker 3 (06:04):
Is he talking about thermal or giuse? Thermal could relate
to Huntly where they're burning coal.
Speaker 2 (06:09):
That's true, that's true, I.
Speaker 3 (06:11):
Think so, yeah, yeah, yeah, So the car hours of
town was established where it was because it's sitting on
a huge geothermal basin, I guess in New Zealand, and
I mean Mercury's just built a one megawatt power station
down the road. Now we get our gas off NATI
too far to geo thermal assets. So there are local
(06:32):
ee owned companies, so you know they've got they've got
plenty of gas going forward. And one of the great
things of courses at all of the product the guests,
the steam we buy off in the benefits go back
to the local community. So it's a really really nice
Yeah it is. We actually do pump the steam back
into the ground when we finish with it.
Speaker 2 (06:51):
So why is a geothermal mentioned at all? Only thermal generation, which,
as you say, is the coal.
Speaker 3 (06:56):
Yeah, I didn't hear Minister Watson to view this willing. Sorry,
but I think that's what he's referring to. Because geo thermal,
the use of geo them in New Zealand definitely increasing. Are
all we're world readers have been since the nineteen thirties
us in Italy of all places. So yeah, no, it's
definitely our ambition would be to convert. We've got two
(07:18):
machines on site and the second one is fifty percent
of them or so ambition all be to convert that
as well. And you know, so they's got about fifty
plants around the world and we are not quite the
lowest I think that's powered by nuclear power, but in
carbon output terms we are we are one of the last.
Speaker 2 (07:36):
And so other businesses that are looking to take that
sustainability box as well as look at continuity of supply.
Which ones would be suitable for having? Do you think geothermal?
Obviously those that are within the geothermal.
Speaker 3 (07:49):
Fields, But that's one limitation. You've got to be nearby
to actually use the raw material. I mean, as I said,
you know, you can build a geothermal power station and
then the eletricity goes anywhere but or in the national good.
But you've got to be nearby to make that happen,
and it is happening. People are building power stations nearby
under a dairy factory opening up down the road, so
(08:10):
people will move to the area to make it happen,
which is great for the Eastern by a plenty, and
and for the town of.
Speaker 2 (08:17):
Carl brilliant, absolutely brilliant. Thank you Mark. Yesterday, general manager
B to B Sales talking about the geothermal generation as
an alternative to electricity, as an alternative to coal, as
an alternative to gas, and it's working well.
Speaker 1 (08:32):
For more from Kerry Wood and Mornings, listen live to
News Talks A B from nine am weekdays, or follow
the podcast on iHeartRadio
You're listening to the Carrywood and Morning's podcast from news
Talks hed B.
Speaker 2 (00:11):
New Energy Minister Simon Watts to taking a bit of
a change of direction. You might have heard the story
on that this morning with Mike Coskin. Is being warned
of the risk of winter power outages and potential business closures,
and newly released briefing to the minister shows electricity supply
is tight and gas supply needs to be maintained until
(00:33):
suitable alternatives are found. Also says some households and businesses
are finding energy unaffordable. Well interestingly enough, and I was
going to talk to Mark anyway, but this is topical
given the briefing paper. I was at the BS Global
Federation conference last week and heard a very positive story
(00:53):
from Sidy's Carwardo paper Mill. They've launched the world's first
shoe machine that runs entirely on geothermal steam. And to
tell us about it, I'm joined by sd General Manager
b to B Sales Marks. Even's a very good morning
to you, Mark Kerry High.
Speaker 3 (01:10):
Hi, nice to talk to you.
Speaker 2 (01:11):
So it only opened last week, didn't it. I think
you were there in Cowdo other day before the conference.
Speaker 3 (01:16):
Yes, the official opening was last week. We yeah, correct,
we had the machine. Obviously, it was a three month project,
a major rebuild of the existing machine for us to
convert it to being the first machine in the world
to be one hundred percent gfmal stem at the drying
end of the machine, which is where all the energy
it's consumed and papermaking.
Speaker 2 (01:36):
And so how much has it reduced cost by? How
much has it reduced your carbon output by? What's the
benefit to the company.
Speaker 3 (01:46):
Well, the benefit is mainly in the area of sustainability obviously,
so it's reduced This one project has reduced the mills
carbon output by twenty five percent since twenty ten when
we started the gsm or journey. We're making the same
amount of paper, but we reduced our total outlook of
carbon from the middle by sixty six percent, so it's
(02:09):
definitely a carbon story. Is a global hygiene and health
giant and one of our We are a member of
the Sustainable Business Targets Initiative, which means we get committed
to a reduction of thirty five percent of carbon by
twenty thirty and to net zero by twenty fifty. So
obviously the project had to pay for itself. But the
(02:30):
driver was essentially around saving our output of carbon, reducing
our output of carbon.
Speaker 2 (02:36):
Right, So and that's continuing. It's a global brand and
that's continuing despite the change of power and.
Speaker 3 (02:43):
The years. Yeah, yeah, I know. We're we're based in
We're a Swedish based company. Well there we go here
and look from a cost perspective, very obviously GSM was
going to have any talent benefit, but the main issue
for us is sustainability and also consistency. Obviously electricity in
New Zealand, the national grid, I mean, you know, it
(03:03):
went from five dollars a gig of what at the
beginning of last year I think eight hundred in the
middle of the winter and back down again. So it's
really hard for businesses in New Zealand to handle that.
And I think, you know, it was definitely a contributing
factor in the other you know, unfortunate mill closures we
saw in the middle of the larstity end of last year.
Speaker 2 (03:21):
That's exactly what they said. It was the supply, consistency
of supply and the cost. So did you have to
buy a special machine that could handle geo thermal energy or.
Speaker 3 (03:34):
We didn't, yes, sort of. Yeah, so definitely most machines
are set up to use natural gas or carbon fuels,
so that that's what ours were. And over the last
period we've converted this machine was an investment twenty million
dollars plus investment by ourselves plus a million dollar two
million dollars from echa contribution from the government which was
(03:55):
which was gratefully received, and we had to basically rebuild
the existing machine. So it's been there for thirty years. Wow.
So you have to come. There's like the length of
a football field. They're dinormous. They have lots of steam
and stuff coming off them and there's big bits of cats. Yeah,
and so we had to essentially take it out offline
(04:16):
for three months. We had to cut a hole in
the roof of our building and take out the significant
working part of the machine, which is called the Yankee
cylinder and put a new one in which came from
Meatley Pop that and about seventy tons each and so
you know, a major rebuild an existing machine and it's
all New Zealand technology where it was a world first
and yeah, we're really really proud of it.
Speaker 2 (04:40):
So why not electricity if you're looking at sustainability, did
you were you concerned about the cost and the consistency
of supply.
Speaker 3 (04:48):
Yeah, I don't think the way it works is at
the end of the machine you need hoty acted to
dicey could have electricity doing that, it would be prohibitively,
experience might suggest. And again in New Zealand, you just
go from one to the other. So we're the only
manufacturer of tissue products Zealand, so you'll go to the supermarket.
(05:08):
I mean, I look after our B to B brands
plan Talk, which you'll see in your radio station or
offices or airports or schools. But if you go to
the supermarket you'll see Handy, Purex and Sortment, which are
our brands and New Zealand brands for a long time.
And we're the only manufacturer in New Zealand, so you know,
we can take essentially what's a waste product pulp from
the lumber industry, use local ingenuity in that and make products.
(05:32):
So it's a real success story. We're very proud it
really is.
Speaker 2 (05:36):
However, when I was looking at the briefing document to
Simon Watts, the Energy Minister, it said New Zealand's likely
to get very high levels of renewable electricity in the
medium term, but gas and coal will needed for some
time yet. However, thermal generation is aging and so at
(05:56):
a risk of suffering outages or coming to the end
of its life. Since when did these stop making thermal energy?
Speaker 3 (06:04):
Is he talking about thermal or giuse? Thermal could relate
to Huntly where they're burning coal.
Speaker 2 (06:09):
That's true, that's true, I.
Speaker 3 (06:11):
Think so, yeah, yeah, yeah, So the car hours of
town was established where it was because it's sitting on
a huge geothermal basin, I guess in New Zealand, and
I mean Mercury's just built a one megawatt power station
down the road. Now we get our gas off NATI
too far to geo thermal assets. So there are local
(06:32):
ee owned companies, so you know they've got they've got
plenty of gas going forward. And one of the great
things of courses at all of the product the guests,
the steam we buy off in the benefits go back
to the local community. So it's a really really nice
Yeah it is. We actually do pump the steam back
into the ground when we finish with it.
Speaker 2 (06:51):
So why is a geothermal mentioned at all? Only thermal generation, which,
as you say, is the coal.
Speaker 3 (06:56):
Yeah, I didn't hear Minister Watson to view this willing. Sorry,
but I think that's what he's referring to. Because geo thermal,
the use of geo them in New Zealand definitely increasing. Are
all we're world readers have been since the nineteen thirties
us in Italy of all places. So yeah, no, it's
definitely our ambition would be to convert. We've got two
(07:18):
machines on site and the second one is fifty percent
of them or so ambition all be to convert that
as well. And you know, so they's got about fifty
plants around the world and we are not quite the
lowest I think that's powered by nuclear power, but in
carbon output terms we are we are one of the last.
Speaker 2 (07:36):
And so other businesses that are looking to take that
sustainability box as well as look at continuity of supply.
Which ones would be suitable for having? Do you think geothermal?
Obviously those that are within the geothermal.
Speaker 3 (07:49):
Fields, But that's one limitation. You've got to be nearby
to actually use the raw material. I mean, as I said,
you know, you can build a geothermal power station and
then the eletricity goes anywhere but or in the national good.
But you've got to be nearby to make that happen,
and it is happening. People are building power stations nearby
under a dairy factory opening up down the road, so
(08:10):
people will move to the area to make it happen,
which is great for the Eastern by a plenty, and
and for the town of.
Speaker 2 (08:17):
Carl brilliant, absolutely brilliant. Thank you Mark. Yesterday, general manager
B to B Sales talking about the geothermal generation as
an alternative to electricity, as an alternative to coal, as
an alternative to gas, and it's working well.
Speaker 1 (08:32):
For more from Kerry Wood and Mornings, listen live to
News Talks A B from nine am weekdays, or follow
the podcast on iHeartRadio
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