MWV (MeadWestvaco) Energy Efficiency Virginia Governor’s Conference on Energy Bob Fledderman Manager, Emerging Issues MWV Business: Packaging (83%), Specialty Chemicals (14%), Land Management (3%) Global employees: 16,000 Global sales: $US 5.46 billion (2012) About 50% from outside US Corporate headquarters: Richmond, VA Paperboard mills: US - Covington, VA; Evadale, TX; Cottonton, AL Brazil - Tres Barras, Santa Catarina India - Vapi, Gujarat; Morai, Gujarat Over 50 manufacturing facilities in 18 countries Governor's Conference on Energy, October 2013 2 Corporate Energy Targets • Reduce fossil fuel use by 25% by 2015 • Reduce CO2 emissions by 25% by 2015 from a 2010 baseline Governor's Conference on Energy, October 2013 3 Biomass Boiler & Turbine Generator Covington, VA • Cost $285 million • Displaces over 200,000 tons of coal with forest and mill residual biomass (bark, limbs, tops) • Combined heat & power (CHP) • Capacity 75 MW (electric) • Capacity 650,000 lbs/hr (steam) • Reduces power purchases • Significant reductions in SO2, NOx and PM10 & PM2.5 emissions. • Can use waste material (WWT sludge) previously landfilled Governor's Conference on Energy, October 2013 4 Relighting Project Covington, VA • Cost $5.5 million • Saves 19,500 MWh/year • $950,000 EPACT rebate • Improved or replaced over 15,000 fixtures • Donated recycled scape fixtures to a local enterprise the employs disabled • Continuing to Low Moor, VA facility (additional 1.1 MWh/year savings • Considering continuing to Covington, VA Specialty Chemical Plant Governor's Conference on Energy, October 2013 5 New Printing Press Lannett, AL • Cost $14 million • Saves 2,000 MWh/year • Reduces waste by 800 tons/year • Significantly reduces set-up times Governor's Conference on Energy, October 2013 6 No/Low Capital Projects • Air system management (fix leaks/low resistance lines) • Steam trap management (more frequent checks/maintenance) • Additional electric meters (make power costs a front line responsibility) • Operating procedures (optimize energy use – winter/summer) • Advanced process controls (optimize energy use with automation) Governor's Conference on Energy, October 2013 7 Process Innovation • Paperboard light weighting Process change requires 6% less energy per square foot of paperboard • Energy efficient pulping Process is much more efficient regarding electric power than alternatives Governor's Conference on Energy, October 2013 8 Product Innovation • Light weight plastic spray triggers (10% less resin (polypropylene)/replaces steel with plastic) Versaplast All-Plastic Trigger Sprayer • Replace plastic with paperboard (weighs 40% less) ShellPak Renew (pharmaceutical package) Governor's Conference on Energy, October 2013 9 Property Assessed Clean Energy (PACE) • Zero up-front cash investment • Immediate positive cash flow • Long-term financing (up to 20 years) • PACE assessment stays with the property upon sale • Low interest rates • Preservation of borrowing capacity through off-balance–sheet financing Governor's Conference on Energy, October 2013 10 Thank You Bob Fledderman Manager, Emerging Issues robert.fledderman@mwv.com Governor's Conference on Energy, October 2013 11