MWV (MeadWestvaco) Energy Efficiency

Virginia Governor’s Conference on Energy

Bob FleddermanManager, Emerging Issues

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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

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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

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Biomass Boiler & Turbine GeneratorCovington, 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

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Relighting ProjectCovington, 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

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New Printing PressLannett, 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

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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

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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

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Product Innovation

Governor's Conference on Energy, October 2013

• 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)

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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

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Thank You

Bob Fledderman

Manager, Emerging Issues

robert.fledderman@mwv.com

Governor's Conference on Energy, October 2013