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A public‐private partnership for sustainable water use in the Kingdom of Saudi Arabia 1 Middle East Paper Company Success Story for Industrial Water Recycling Case Summary Sector: Paper Production Company Name: Middle East Paper Company Water saved 4 200 000 m 3 /year An additional 1 200 000 m 3 /year planned. Financial outlook: ~ 1 523 500 SR/year savings (payback time: 25 months) Additional 600 000 SR planned (payback time: 16 years) Efficiency means: Internal‐recycling Reuse Key Success Factors: Substantial growth of a water intensive industry in an area with highly limited water resources; Top management being familiar with water saving measures; Solid commitment to continual improvement; General manager of the company having strong technical knowledge on water management; Company and Story Overview Middle East Paper Company (MEPCO) provides a fascinating win‐win example of creating economic value while also reducing waste generation and environmental impact. The company produces paper products using waste paper, and therefore serves an important function in closing resource flows. For MEPCO, locating its production in Jeddah offered some key advantages with regards to logistics of waste paper as well as finished products. However, these advantages are shadowed by the fact that Jeddah lacks sufficient surface or underground water sources for their water intensive operations. The importance of water scarcity was well‐understood both by the founders of the company and by local environmental authorities, who limit granting operation permits to water intensive industry. The company overcame this difficulty with some innovative approaches and has continuously been improving its water productivity. First, it made necessary modifications and sourced all of its water needs from treated domestic wastewater. In addition, the company has significantly improved its water efficiency, reducing its specific water consumption from 20 m3/ton of product to 8 m3/ton of product. It has further ambitions to lower this value to 4 m3/ton of product. This is the story of MEPCO’s success. Managerial Approaches The top management of the company has a strong awareness about and genuine interest in water productivity. The top management of the company has a history with water rationalization and the General Manager has an environmental engineering background and has a proven track record in water rationalization in industry. In addition, the company has been recruiting experts who have worked in other parts of the worlds in paper mills that are considered among the best in their class when it comes to water productivity. Last, but not least, the company has been successful in raising awareness among its employees, who understand the importance of water efficiency and their role in achieving it.

Mr.Sami Ali Al Safran-- Mepco CEO

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Middle East Paper Company (MEPCO) provides a fascinating win‐win example of creating economic  value while also reducing waste generation and environmental impact.  The company produces paper  products using waste paper, and therefore serves an important function in closing resource flows. For MEPCO, locating its production in Jeddah offered some key advantages with regards to logistics of  waste paper as well as finished products.  However, these advantages are shadowed by the fact that  Jeddah lacks sufficient surface or underground water sources for their water intensive operations.  The importance of water scarcity was well‐understood both by the founders of the company and by  local environmental authorities, who limit granting operation permits to water intensive industry.

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Page 1: Mr.Sami Ali Al Safran-- Mepco CEO

 A public‐private partnership for sustainable water use in the Kingdom of Saudi Arabia 

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Middle East Paper Company 

Success Story for Industrial Water Recycling 

Case Summary 

Sector:  Paper Production Company Name: 

Middle East Paper Company 

Water saved  4 200 000 m3/year An additional 1 200 000 m3/year planned.  

Financial outlook: 

~ 1 523 500 SR/year savings (payback time: 25 months) Additional 600 000 SR planned (payback time: 16 years) 

Efficiency means: 

• Internal‐recycling • Reuse 

Key Success Factors: 

• Substantial growth of a water intensive industry in an area with highly limited water resources;  

• Top management being familiar with water saving measures;  • Solid commitment to continual improvement; • General manager of the company having strong technical knowledge on 

water management; 

Company and Story Overview 

Middle East Paper Company (MEPCO) provides a fascinating win‐win example of creating economic value while also reducing waste generation and environmental impact.  The company produces paper products using waste paper, and therefore serves an important function in closing resource flows. For MEPCO, locating its production in Jeddah offered some key advantages with regards to logistics of waste paper as well as finished products.  However, these advantages are shadowed by the fact that Jeddah lacks sufficient surface or underground water sources for their water intensive operations. The importance of water scarcity was well‐understood both by the founders of the company and by local environmental authorities, who limit granting operation permits to water intensive industry.  The company overcame this difficulty with some innovative approaches and has continuously been improving its water productivity.  First, it made necessary modifications and sourced all of its water needs from treated domestic wastewater. In addition, the company has significantly improved its water efficiency, reducing its specific water consumption from 20 m3/ton of product to 8 m3/ton of product.  It has further ambitions to lower this value to 4 m3/ton of product.  This is the story of MEPCO’s success.  

Managerial Approaches 

The top management of the company has a strong awareness about and genuine interest in water productivity.  The top management of the company has a history with water rationalization and the General Manager has an environmental engineering background and has a proven track record in water rationalization in industry.  In addition, the company has been recruiting experts who have worked in other parts of the worlds in paper mills that are considered among the best in their class when it comes to water productivity.  Last, but not least, the company has been successful in raising awareness among its employees, who understand the importance of water efficiency and their role in achieving it.  

Page 2: Mr.Sami Ali Al Safran-- Mepco CEO

 A public‐private partnership for sustainable water use in the Kingdom of Saudi Arabia 

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Technical Approaches 

 When the company was first established in 2002, it had a production capacity of 100 000 t/year and it used effluents of the nearby Khumrah wastewater treatment plant handling the domestic wastewaters of Jeddah city.  The effluents from Khumrah were further treated by chemical precipitation (i.e. coagulation and flocculation) and by reverse osmosis membranes.  At this time, MEPCO used around 20 m3 of water for every ton of product.  In 2006, the company extended its capacity to 300 000 t/year and therefore was in need of substantially more water.  This expansion increased the need rationalizing the water use within the company boundaries.  MEPCO took the issue very seriously, and systematically screened all the inefficiencies and thoroughly assessed all effluent streams for their recycling potential.  The company installed screens, drum filters, two dissolved air floatation units, and gravity filters which allowed to recycle a large share of the water internally and reduce its specific water consumption to 8 m3/ton of product.  This system also allowed the recovery of fibers and boosted the plants fiber conversion efficiency from 80 to 90%.    The company also plans to install a biological treatment unit, which will reduce the organic loading in the effluents and allow for further recycling.  Once this unit is operational, the company will be able to reduce its specific water consumption to 6 m3/ton of product.  

Water Saving 

With the introduction of the additional steps that allowed the internal recycling of water, the company is able to reduce its water consumption by 4 200 000 m3/year.  Once the biological treatment unit becomes operational the company will be saving an additional 1 200 000 m3/year.  

MEPCO forms a good example where eco‐efficiency is seen as a journey rather than a destination.  The company is planning to expand its capacity by an additional 250 000 t/year in 2010. Along with such expansion, an anaerobic treatment unit is being planned for effluents with high organic content (measured in terms of COD).  When operational, this unit will improve the quality of effluents so that they can be discharged directly to sea.  In addition, the methane gas that will be produced in anaerobic treatment will be used as a supplementary fuel in the company’s highly efficient combined heat and power production units.  This will result in partial substitution of fossil fuels with renewable biogas, and will help reduce the CO2 emissions.    

After the introduction of internal recycling system specific water consumption is reduced to 8 m3/ton.

Earlier stages of production when the company used 20m3 of water per ton of production

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 A public‐private partnership for sustainable water use in the Kingdom of Saudi Arabia 

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Financial Outlook 

In order to reduce the water consumption from 20 m3/t to 8 m3/t the company had to make a total investment of 3,250,000 SR.  Such investments provided the company with annual savings of 1,523,200 SR resulting in a payback time just above two years.   The projected biological treatment unit will cost the company an additional 10,000,000 SR and will allow annual savings of 600,000 SR.  This initiative will have a payback time in the range of 16 years.    

Key Success Factors 

• Substantial growth of a water intensive industry in an area with highly limited water resources;  

• Top management being familiar with water saving measures;  • Solid commitment to continual improvement; • General manager of the company having strong technical knowledge on water management; 

Further Information 

For further information about this case please contact:   Eng. Sami Safran – General Manager T: + 966 2 2311150 e‐mail: [email protected]