Russian Forestry and Wood Supply Operations Analysis slide image

Russian Forestry and Wood Supply Operations Analysis

50 PULP AND PAPER INDUSTRY PULP AND PAPER INDUSTRY Fig. 7. Essential sections, promising technologies, and expected results of the implementation of the Development of industrial biotechnologies in the FTS segment Production of new types of wood semi-finished products and other materials 12 - up to 100,000 tons/year of nano pulp, wood composite materials, biopolymers for biodegradable materials, xanthan, arabinogalactan, and quercetine from larch - up to 200,000 tons/year of anti-corrosion heat insulation coatings New "green" chemistry $10 - up to 90,000 tons/year of tall oil and pitch, turpentine, and other terpenes - up to 9,000 tons/year of drilling muds, bitumen emulsions, and synthetic oils - up to 1,000 tons/year of camphor and aroma compounds from terpenes and terpenoids - up to 6,000 tons/year of medical preparations Updating of P&PI, implementation of BAT 07 - up to 2 million tons/year of new kinds of paper and cardboard (including biodegradable ones) and products made of them - complete changeover to bleaching without using elemental chlorine - bringing the secondary fiber utilization rate to 55% - reduction of specific electric power consumption per ton of product by 30%, and water consumption, by 50% Forest bioenergy 3 - bringing the proportion of energy from P&PI waste to 70% of the total consumption - production of liquid biofuels of wood origin, up to 200,000 cu m/year Environmental protection; disposal of solid P&PI waste production of up to 1 million tons/year of biofertilizers for agriculture from P&PI waste - bioremediation and bioreclamation of dumps and slurry/sludge tanks - implementation of integrated waste water and gas emission treatment systems Number of technologies The Russian forest technology platform, being a form of public-private enterprise, should unite and harmonize the efforts of the state, science, and business to create a bioeconomy. The goal is to provide up to 1% of Russia's GDP through the use of biotechnologies. To implement this plan, a "Road map for the development of industrial biotechnologies in the forestry and timber sector" was developed, #6 (2015) RUSSIAN FORESTRY and approved by the RF Government in June 2013. According to it, 36 new technologies are to be implemented. The governmental program "Industry Development and Competitiveness Enhancement" (a subprogram of "Industrial Biotechnologies") provides for the growth of biotechnological product output by 23.3 billion rubles by 2016, and by 62 billion rubles by 2020 (Fig. 7). The development of new diversified technologies and the outfitting of laboratories and institutes with the necessary equipment for replica/ pilot tests will require a lot of effort, funds and time. I believe it will be like this not only in the implementation of the Russian forest technology platform, but also with other industrial platforms. After many years of discussion of the necessity to implement a process rationing system based on international experience of implementation of the best accessible technologies (BAT), amendments to the Environmental Protection Law and some statutory acts of the Russian Federation were adopted on 21.07.2014. The main goal of the changeover to process rationing is the stage- by-stage reduction of environment pollution by implementing BAT. The use of the process rationing system will enable the enterprises to evolve from an "end-of-pipe" strategy to the strategy of "pollution prevention" at its source, and to achieve high environmental efficiency along with economic gains. To implement this, several legislative and regulatory initiatives have been provided. By resolution of the RF Government, a package of measures to discard inefficient technologies and to switch to BAT has been approved. A draft resolution of the Russian Federation Government has been prepared for implementation of the switchover to the BAT principles, defining the functions and relationships of governmental agencies coordinating the development of BAT information handbooks. Rosstandart is appointed as the authorized agency of the executive power for BAT implementation. To manage the switchover to the BAT principles, the Ministry of Industry & Trade established an Interdepartmental Board for switchover to the BAT principles headed by First Deputy Minister Gleb Nikitin. The Interdepartmental Board has supported the initiative of pulp and paper makers - Ilim Group, and Arkhangelsk and Solikamsk mills to implement BAT and switchover to the weight method of water and air pollution recording. The whole sector's goal for 2015 is to develop a BAT handbook and regulatory/procedural documentation. This will enable P&PI companies to avoid non-productive environmental penalties. On the instruction of the Interdepartmental Board, a technical task team (TTT) is being built, with representatives of federal executive authorities, research facilities, public organizations, and industrial companies on its list. The functions of the TTT are data collection and analysis to select a BAT technology, and development and updating of a BAT handbook. Also, a BAT board is being formed, to coordinate the activity of TTT, manage the expert assessment of the BAT handbook developed by TTT, and submit the developed handbook to the authorized body, i.e. Rosstat. With regard to the opinions of companies/ enterprises, RAO Bumprom has submitted its proposals for the namelist of TTT for the pulp and paper industry. The implementation of BAT will require sizeable funds. Article 17 of the Federal Law "On amendments to the Federal Law "On Environmental Protection" and to some statutory acts of the Russian Federation, provides for measures of governmental support to activities aimed at the implementation of BAT and other efforts to reduce negative environmental impact. However, the regulatory documents have not been developed until now. ADVANCED DEVELOPMENT ZONES In the entire 25-year period of economic reform of the Russian forestry and timber sector, not a single pulp and paper mill was built on a separate site. The main reasons are the ill-considered investment policy and problems with accessibility and cost of long-term construction loans. Finally, in 2014 the Government started setting up mechanisms to support such investment projects. For this purpose, a law on advanced development zones (ADZ) is currently being prepared, which provides for a maximum favorable mode for the regions' economic potential development. TDZ is a part of a region with special modes of legal activities. Such areas provide the best competitive conditions to their residents. The changeover of P&PI to a process rationing system based on BAT will help to: • achieve a high economic efficiency of production, get additional economic gains, and have the domestic P&PI products certified, which will enhance their competitiveness; ⚫ reduce the level of gross and specific discharges and emissions of pollutants, and to reach the rated figures step by step; • reduce the prime cost of products by using energy and material saving solutions and by cutting operating costs; . improve the finished product quality, and thus increase the profit from their sales. When working out the law, the best practices of countries with high paces of development (China, South Korea etc.) were studied in regard to the legislative and tax domain. The package of measures to build such TDZ includes: • Infrastructure building using budget funds. Broad tax preferences granted. • • Faster VAT refunding mechanism; lower land, property etc. tax rates. . No administrative barriers for business. The start of activities of such a TDS in the Far East is already planned in 2015. After two or three years of operation under the new conditions, the law will be extended to Russia's northern regions. Summing up, I would like to say the following. There is a growing understanding in Russian governmental circles that the existing situation in the Russian economy and the forestry and timber sector in particular, has to be radically changed. Certain actions have already been taken and now a great deal depends on the business community, on their ability to consolidate their efforts and develop a common stance on several strategic issues. The time has come to take stock. Governmental support for the programs and the will of business to undertake their practical implementation must become priority issues. Only then will the forestry sector really become a sector of the economy that conforms to the concept of sustainability and adopts a form of up-to-date environmental-friendly production. Vladimir A. CHUIKO, Chairman of the Management Board, RAO Bumprom RUSSIAN #6 (2015) 51 FORESTRY
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