PROJECT SUMMARY and ENVIRONMENTAL ISSUES For Visy Pulp and Paper, Tumut Mill Expansion pptx

2.2.1 Initial Installation Visy proposes to initially install a new Paper Machine, Fibre Line and Multi-fuel Power Boiler.. The proposed fuel for the multi-fuel boiler includes paper ma

PROJECT SUMMARY and ENVIRONMENTAL ISSUES

For Visy Pulp and Paper, Tumut

Mill Expansion Prepared for NSW Department of Planning

May 2006

TABLE OF CONTENTS

1 INTRODUCTION 1

1.1 Background 1

1.2 Increase in Production Capacity 1

1.3 Part 3A EP&A Act 1979 1

1.4 Concept Plan Approval Application 2

2 THE PROPOSED EXPANSION 3

2.1 Overview 3

2.2 Phased Installation 3

2.2.1 Initial Installation 4

2.2.2 Future Installation 5

2.3 Likely Environmental Impacts of the Expansion 8

2.3.1 Air Emissions 10

2.3.2 Odour Management 11

2.3.3 By-products 11

2.3.4 Traffic and Transport 12

2.3.5 Noise 13

2.3.6 Water Management 13

2.3.7 Wastewater Management 13

2.3.8 Socio-Economic Aspects 14

2.3.9 Other 14

2.4 Approvals Required for the Proposed Expansion 14

2.5 Environmental Impacts of Existing Operations 15

2.5.1 Environmental Management 15

2.5.2 Air Quality 15

2.5.3 Odour Management 17

2.5.4 Noise Management 19

2.5.5 By-products 19

2.5.6 Water/Wastewater Management 20

2.5.7 Traffic 21

2.5.8 Community Consultation 22

2.6 Other 23

2.7 Director General’s Requirements 23

Visy Tumut – Mill Expansion 1

The current timetable is as follows:

♦ Finalise Environmental Assessments by Q3/2006

1.2 Increase in Production Capacity

Visy Pulp and Paper wishes to increase paper production from its Tumut Plant from the currently approved 300,000 tonnes per annum to 700,000 tonnes per annum

While the existing Development Consent permits an increase of paper production to 450,000 tonnes per annum subject to a further approval in terms of that consent, a new approval is required

to increase paper production to 700,000 tonnes per annum

1.3 Part 3A EP&A Act 1979

The proposed development is a project within the terms of Part 3A of the Environmental Planning and Assessment Act 1979 It comes within Item 4 to Group 1 to Schedule 1 of the State Environmental Planning Policy Major Projects 2005 In this regard, it is a development having a capital investment value of more than $30 million for the purpose of the manufacture of paper pulp and involves paper recycling The estimated cost of the expansion of the plant is a maximum of

$450 million This amount will bring the overall investment in the plant to over $800 million, and see a further 50 jobs created at the mill and a further 350 flow on jobs in supply and service activities

1.4 Concept Plan Approval Application

For the reasons given below, Visy Pulp and Paper seeks the Minister’s authorisation to lodge an application for a concept plan approval which will give approval to commence specified aspects of the development on receipt of the approval

The concept approval approach is required for Visy Tumut’s future expansion as it is necessary to have up-front certainty for this project as it develops over time The facility itself is a complex one, which also exists within a complex wider framework For example, aspects of Visy’s operations are subject to ongoing changes in critical production technology, some of which are as yet only partly defined The plant is also exposed to changes in the relative availability of recycled paper fibre and virgin fibre, respectively In addition, important factors such as transport, which are external to the facility itself but which have a major bearing on long-term cost competitiveness and regional impacts, need to be taken into account during the project’s medium- to longer-term development

In terms of the facility itself, there are presently a mix of technologies and processing solutions required for the future aspects of the project which may necessitate a number of successive development phases being implemented Hence, some components may be able to be constructed immediately upon receiving approval, whilst others may not be required until later in the facility's overall development For example, the immediate future may require construction of a recycled fibre (RCF) plant, while an anticipated new fibre pulping line component might not be required until supplementary plantation-grown virgin fibre sources become available There are other aspects of the plant that fall within the "immediate" and "later development" classes

Visy’s expansion of its Tumut operation will require significant additional capital expenditure to be raised and committed Visy therefore requires the overall endorsement of the NSW Government, via the planning process, to enable the component parts of this project to proceed with both bankable security and with certainty as to the types of environmental assessments and controls that may be required for components to be developed at a later date than the immediate expansion elements Visy Pulp and Paper is in a good position to assess the likely environmental impacts of the proposed expansion given that it is an expansion of an existing plant which itself was the subject of thorough environmental assessments and was approved subject to a number of conditions

This document is designed to provide:

a An outline of the proposed development (its scale and nature);

b Likely environmental impacts of the proposed development if it is carried out;

c A list of other approvals that are required;

Visy Tumut – Mill Expansion 3

Project summary

d An outline of the existing operations of the mill; and

e In doing so, provide information to assist the Department to determine applicable General’s requirements for the project

Director-2 THE PROPOSED EXPANSION

2.1 Overview

Visy Pulp and Paper proposes to expand the existing facility at Tumut NSW by installing a second paper machine and associated pulping capacity This would bring the total approved site production of paper to 700,000 tonnes per year

A number of product options are currently being investigated for proposed mill expansion in order

to address the export market including:

1) A lightweight Kraft Liner Board (as produced by current mill)

2) A lightweight “Kraft Top” sheet, moving to Kraft Liner Board depending on wood supply

availability in the future (mainly recycle sheet with kraft top layer)

3) A white liner

A phased approach is proposed for the mill expansion This will enable some plant components to

be installed immediately, with others being progressively installed over time to meet the project’s expected production milestones Note that it is anticipated to achieve 700,000 tonnes per annum paper production as quickly as possible and required changes will come about from feedstock flexibility A summary of the nature and scope of the proposed development is outlined below

2.2 Phased Installation

Set out below is an indicative description of the expansion phasing and is not intended to be prescriptive The exact phasing of the proposal in terms of the combination of components installed at each phase, and timing of the installation will be subject to the availability of virgin fibre

as well as economic and market forces at the time Therefore, prospects for the “Future Installation” contemplated in 2.2.2 may be brought forward to the “Initial Installation” phase

described in 2.2.1 and subsequently enhanced as supplementary wood fibre becomes available

As such it will be necessary that the approval for the expansion takes into account this need for flexibility

The environmental impacts may change between the phases, based on the installed components but the “maximum impact case” will be the benchmark adopted for the purposes of the environmental assessments That is the environmental assessments will be based on the combination of the greatest impacts of each phase, even though the final configuration may not necessarily result in all such impacts

2.2.1 Initial Installation

Visy proposes to initially install a new Paper Machine, Fibre Line and Multi-fuel Power Boiler Production through the existing pulp mill would be increased from 750t/day to 1000t/day This would include modification to the existing Recovery Boiler, Fibre Line, Digester, Lime Kiln, Recasuticising Plant and Evaporation Plant to allow for the increased production The woodyard will be expanded to allow for the increased tonnage of pulpwood, saw mill chips and boiler fuel The mill will continue to operate 24 hours per day, 7 days per week and chipping and debarking operations in the woodyard will continue to run 15 hours per day 7 days per week

Wood and Wastepaper Supply

Depending on availability, the initial installation will utilise approximately 60% virgin fibre and 40% wastepaper This will consist of sawmill residues, softwood pulp logs from State Forests and private plantations, and waste paper from kerbside collections from Sydney and Melbourne In order to produce the white liner product, approximately 30,000 tonne per year of white purchased

pulp will be used

Energy and Steam

Initially a new multi-fuel power boiler is proposed for power and steam generation The proposed fuel for the multi-fuel boiler includes paper machine residues from the existing mill including coarse residues, de-inking and de-ashing sludge De-inking and de-ashing sludge are two streams of residues that are not currently produced by the existing mill and are associated with the use of a higher proportion of wastepaper that is derived from kerbside collection Additionally it is also proposed to utilise paper machine residues from Visy’s existing mills in Sydney and Melbourne as fuel for the multi-fuel boiler The multi-fuel power boiler will be designed to utilise this increased quantity of non standard fuels and will include best available technology for emissions controls There will be an additional stack installed for the emissions from the new multi-fuel power boiler

Water and Wastewater

Fresh water will be supplied via the existing pipeline from Tumut River and stored in the existing fresh water dam onsite The additional quantity of fresh water can be accommodated by the existing pipeline capacity and fresh water dam on site A maximum of 1,600 ML/year of additional

Visy Tumut – Mill Expansion 5

Utilities

Natural gas will be utilised as the auxiliary fuel for the new multi-fuel power boiler The additional natural gas requirements can be accommodated by the existing capacity of the natural gas pipeline and metering system on site

A second transformer will be required and, together with associated high voltage equipment; this transformer will be housed in the existing substation on site A connection agreement with Transgrid will be required when activation of the transformer is needed

Stormwater and drainage associated with mill expansion will be connected to the current system since the new components will be within the existing mill footprint The stormwater detention pond may need modification and run off from the expanded woodyard areas may require an additional woodyard first flush dam

2.2.2 Future Installation

When sufficient virgin fibre is available, Visy proposes to shift the fibre mix to approximately 80% virgin fibre and 20% wastepaper and install additional pulp mill capacity This would involve the installation of a new Recovery Boiler, Lime Kiln and Recausticising Plant, Evaporation Plant, and Batch Digester Plant Mill operating hours would continue as per existing operations It is noted that the paper production will remain at 700,000 tonnes per annum

Wood and Wastepaper Supply

As outlined above, this installation will utilise approximately 80% virgin fibre and 20% wastepaper

On site de-inking of wastepaper is proposed as a process mechanism to enable replacement of

purchased white pulp

Energy and Steam

In addition to the multi-fuel power boiler, an additional recovery boiler will be installed The emissions from the new recovery boiler will be directed to the stack servicing the emissions from the multi-fuel power boiler and the new lime kiln A natural gas turbine is proposed to be installed

which would result in the mill being 100% self generating with the excess power exported to the grid The emissions from the natural gas turbine will be directed to a separate new stack

Water and Wastewater

The freshwater demand and effluent production will not increase from the initial installation

A list of the additional plant components proposed for the mill expansion is provided in Table 1 over the page A preliminary layout showing existing plant and the proposed expansion components is illustrated in Figure 1

Table 1: Mill Expansion – Proposed Plant and Equipment for Phased Installation

ƒ Paper Machine–400,000TPY capacity

ƒ Fibre Line

ƒ 80t/hr Multi-fuel Power Boiler fuelled by standard fuel and non standard fuels such

as urban wood residues and paper machine residues from Visy Tumut, Sydney and

Melbourne Mills

ƒ Emissions stack servicing emissions from new Multi-fuel Boiler

ƒ Log Crane, Stacker Reclaimers, Chipper and fibre storage areas

ƒ Recycled Stock Preparation Line

ƒ 3 additional cooling towers

ƒ Transformer, switch gear and cabling

ƒ Digester (Batch or Continuous)

ƒ 750t/day Black Liquor Recovery Boiler

ƒ Recausticising Plant and Lime Kiln

ƒ Additional Evaporation Line

ƒ 2 additional cooling towers

ƒ Recrystallisation Plant

ƒ Wastepaper de-inking plant

ƒ 40MW Natural Gas Turbine and waste heat boiler

ƒ Emissions stack servicing emissions from Natural Gas Turbine

ƒ Visy Logistics truck staging facility on Hume Highway to regulate the movements of finished paper and wastepaper to and from the site

Expand/Modify Existing Components

ƒ Wastepaper Storage Yard

ƒ Wastewater Treatment Plant

ƒ Winter Storage Dam and Irrigation Areas

ƒ Onsite stormwater drainage

ƒ Natural Gas supply arrangement – pipeline and metering station on site for natural gas turbine

ƒ NCG Collection System

ƒ Condensate Treatment System

1Note that some components of the Future Installation Phase may be brought forward to the Initial Installation Phase subject to wood fibre availability

Visy Tumut – Mill Expansion 8

Project summary

2.3 Likely Environmental Impacts of the Expansion

Expansion of the mill will have a number of general environmental impacts associated with it These include:

• Increase in energy and steam requirements for the process therefore an increase in air emissions associated with combustion sources such as boilers and lime kiln

• Increase in noise levels from mill processes due to additional plant and equipment

• Increase in freshwater demand as production is increased

• Increase in fibre resource requirements

• Increase in traffic movements associated with additional fibre resources, boiler fuel, and finished product etc

• Increase in liquid effluent production Associated with this is increasing irrigation infrastructure and irrigation area for the treated effluent

• Increase in the production of solid wastes from the process

Table 2 over the page outlines the maximum key operating parameters for the expanded mill

Table 2: Maximum Key Plant Operating Parameters for Expanded Mill

(Maximum input/output)

Wood Demand (incl pulp logs, saw mill residue and purchased pulp)

(Green TPY)

1,950,000

1 Internal Fuel = Bark, fines and Tumut Mill paper machine residue

2 Includes de-inking sludge from proposed future de-inking plant

3 External Fuel = UWR, forest residues, saw mill residues, paper machine residues from Visy Mills in Sydney and

Melbourne

4 Preliminary traffic movements for the mill expansion assumes no back loading and a combination of the maximum

tonnages from the immediate and future installation phases

5 This includes power boiler fly ash and bottom ash, dregs, grits, lime mud, and saltcake Paper Machine residues

from the current Tumut paper machine and the new Tumut paper machine including coarse residues, de-ashing

sludge and de-inking sludge are assumed to be used as fuel for the Multi-fuel Boiler proposed for the mill expansion

The amount of by-products may decrease in the future as virgin fibre sources become more available and less

wastepaper is used which results in reduced production of paper machine residues and therefore less fly ash and

bottom ash is produced

Visy Tumut – Mill Expansion 10

Project summary

2.3.1 Air Emissions

There will be additional combustion sources introduced to the site as part of the mill expansion which will result in an increase in the total volume of air emissions to atmosphere The following combustion sources will contribute to the increased emissions volume:

Figure 2: Mill Expansion Combustion Sources

The existing power boiler utilises the mill’s paper machine residues as fuel together with woodyard residues and is permitted to use up to 50% urban wood residues A broader utilisation of non standard fuels is proposed for the multi-fuel power boiler including urban wood residues, paper machine residues from the Visy Tumut paper mills and residues from other Visy paper mills in Sydney and Melbourne Utilising these fuels has the benefit of landfill avoidance of these materials

as well as fossil fuel avoidance thereby minimising fossil fuel based carbon dioxide emissions to atmosphere

Existing Power Boiler

Existing Recovery Boiler

Existing Lime Kiln

Main Stack

Increase flow

by 33%

Initial Installation

New Multi-fuel Power Boiler

Stack

#2

Future Installation

Existing Power Boiler

Existing Recovery Boiler

Existing Lime Kiln

Main Stack

Flow returns to current levels

New Multi-fuel Power Boiler

Stack

#2

New Recovery Boiler

New Lime Kiln

Stack

#3

New Natural Gas Turbine

Existing Power Boiler

Existing Recovery Boiler

Existing Lime Kiln

Main Stack

Increase flow

by 33%

Initial Installation

New Multi-fuel Power Boiler

Stack

#2

Existing Power Boiler

Existing Recovery Boiler

Existing Lime Kiln

Main Stack

Increase flow

by 33%

Initial Installation

New Multi-fuel Power Boiler

Stack

#2

New Multi-fuel Power Boiler

Stack

#2

Future Installation

Existing Power Boiler

Existing Recovery Boiler

Existing Lime Kiln

Main Stack

Flow returns to current levels

New Multi-fuel Power Boiler

Stack

#2

New Recovery Boiler

New Lime Kiln

Stack

#3 New Natural

Gas Turbine

The installation of the natural gas turbine will result in the mill being completely energy self sufficient In terms of environmental impact, natural gas is the cleanest of the fossil fuels, particularly compared to coal fired generation in terms of:

• Low Nitrogen Oxides

• Low Particulate Matter without particulate matter control

Process design and pollution control equipment will ensure emissions will be compliant with the NSW Protection of the Environment Operations Act and ambient air quality objectives will be met Holmes Air Sciences has been commissioned to conduct air dispersion modelling in accordance

with DEC (2005) Approved Methods for the Modelling and Assessment of Air Pollution in NSW

2.3.2 Odour Management

Odour management will continue to be a high priority for the expanded operations The NCG collection will be replicated for the expanded plant All odour improvements works that have been made to the existing mill will be incorporated into the design of the new components including the new Multi-fuel Boiler as secondary NCG management to the Recovery Boiler Subject to performance confirmation, the recently installed condensate treatment system will be replicated for expanded operations to minimise odours from sources such as the Paper Machine, Cooling

Towers and Cooling Ponds Odour modelling will be conducted in accordance with DEC (2005) Approved Methods for the Modelling and Assessment of Air Pollution in NSW and DEC (2001) Technical Notes – Draft Policy: Assessment and Management of Odour from Stationary Sources in NSW

2.3.3 By-products

There will be an increase in the quantity of process by-products from the mill expansion including:

• Power Boiler Fly Ash

• Power Boiler Bottom Ash

• Lime Mud

• Grits and Dregs

• Recrystallised Recovery Boiler Fly Ash

• Paper Machine Residues

• Wastewater Plant Sludge

Initially the new paper machine may utilise a larger proportion of wastepaper which is derived from kerbside collections as opposed to box plant clippings which are used by the current paper machine This will produce two types of residue streams, both of which are proposed as fuel for the new multi-fuel boiler The de-inking plant will generate an additional sludge stream which is also proposed as a fuel for the multi-fuel boiler The amount of paper machine residues produced

Visy Tumut – Mill Expansion 12

Table 1 in Appendix A shows the maximum expected tonnages of the above by-products from the

mill during the expanded mill operations

2.3.4 Traffic and Transport

There will be an increase in the overall existing traffic movements associated with the mill operations This is associated with the increase in transport of raw materials such as wood fibre, boiler fuel, wastepaper and chemicals as well as an increase in the production of finished product and wastes The use of B-doubles will be maximised and back loading of trucks will be carried out

as much as possible to minimise truck movements The existing routes to and from the mill will be utilised The following table outlines the number of truck movements (two way daily truck movements) predicted in the original EIS for the current operation, actual movements from weighbridge data for current operations, original EIS predictions for the mill expansion and a preliminary estimation of movements from the expanded plant based on the combined maximum of both the initial and future installation phases

Table 3: Two Way Traffic Movements–Original EIS, Current Operations and

Mill Expansion Estimate

Current Operations Mill Expansion EIS Actual

(2005)

EIS Prediction for Mill Expansion 1

Estimated w back loading 2

Estimated w/out back loading 2