STUDY NO. 184 MARCH 2020 INDUSTRIAL COMPETITIVENESS AND ENERGY EFFICIENCY

1) Pulp and paper production • The pulp and paper manufacturing sector’s contribution to Canada’s GDP is CAD$7-9 billion annually • The industry consumes about 24% of the energy consumed in Canada’s manufacturing sector, and there are cost-effective options to improve the energy efficiency of pulp and paper manufacturing by up to 20% • The sector’s chemical pulp production subsector has the highes. [...] For each of the energy efficiency improvement options, we estimate the energy intensity reduction potential (measured in GJ of energy saved per unit of product) and the cost of conserved energy (CCE) that measures the average cost of reducing a unit of energy. [...] March 2020 Industrial Competitiveness and Energy Efficiency 15 Energy Efficiency Supply Curve for the Pulp and Paper Industry The calculated cost of conserved energy (CCE) for each technology option presented in Table 3.4 is used to construct the energy efficiency supply curves for the pulp and paper industry. [...] To March 2020 Industrial Competitiveness and Energy Efficiency 17 identify the cost-effective technologies, the energy efficiency supply curve is compared with the cost of energy of the pulp and paper sector. [...] Cost-effective energy efficiency improvement options can lower the energy intensity of the pulp and paper sector by 11.75 GJ/t, compared to the average energy intensity of the pulp and paper sector in 2017 of 59.5 GJ/t.