Arizona Chemical A World of Good Ideas

Industry Perspective on Air Issues

Richard Lee, Environmental Manager

• Wholly owned by International Paper

• World-class supplier ofpine chemicals

• 1,800 employees worldwide

• 14 manufacturing facilities worldwide

• 3 manufacturing facilities in Florida

• Headquarters in Jacksonville, Florida

• Welcome and respectedcorporate citizen

Who is Arizona Chemical?

United States

Where are we located?

FLORIDAPanama CityPort St. JoePensacola

GEORGIASavannahValdosta

MISSISSIPPIPicayune

OHIODover

1930 International Paper & American Cyanamid JV formed

1936 Begin crude sulfate turpentine fractionation in Panama

City

1949 Begin crude tall oil fractionation in Panama city

1985 Wholly-owned subsidiary of International Paper

1986 Sylvachem acquisition, Port St. Joe

1989 Reichhold/Newport division acquisition, Pensacola

History

KRAFTPULPING

Crude Turpentine(CST)

Crude Tall Oil(CTO)

BetaPinene

OtherDistillates

PressureSensitiveAdhesives

SpecialtyPackagingAdhesives

NonwovenAdhesives

AniseFlavoring

AlphaPinene

OtherDistillates

Tall OilFatty Acids

Tall OilRosin

Paints & Coatings

Flexographic Inks

Ink Solvents

Adhesives

Packaging

Nonwovens

Bookbinding

Tapes

LithographicInks

LithographicGravure Inks

Chewing Gum

SyntheticRubber-making

Pine Oil Cleaners

PackagingAdhesives

PressureSensitiveAdhesives

PolymerAdditives

ChewingGum

Ore FlotationRubber ProcessingEmulsifiers

• Adhesives

• Agriculture

• Automotive

• Chewing Gum

• Coatings

• Construction

• Flavor & Fragrance

• Food & Beverages

• Graphic Arts

• Lubricants

• Metalworking

• Mining

• Oil Field

• Paper

• Polymer Additive

• Rubber

• Soaps & Cleaners

• Textiles

Customer Industries

• 80+% reduction in TRI emissions (EPA Hammer Award)

• 60+% reduction in hazardous waste generation

• 51% reduction in consumptive use of well water

• 300+ TPY reduction in air emissions (VOCs and TRS)

Panama City Plant P2 Activities

Factors Affecting the Project

• Major production units installed prior to air permitting regulations

• Major production units remained unregulated in the Title V Permit issued in 1998

• Very high potentials to emit for these unregulated units.

• EPA’s PSD reinterpretation

• Challenge to increase production quickly

Options

• Modify process only (Construction Permit required)

• Modify the process and install new pollution control equipment (Construction Permit required)

• Emission increase, decrease, or no change

• Complete or partial emissions control

Our Solution

• Installation of pollution control device pictured at the right

• Partial control of process emissions

• Emissions reductions exceeding 300 TPY

• Increase in allowable production rates of >25%

• Met project timelines

Thermal Oxidizer Process Flow

Lessons Learned

• Involve FDEP early and often

• If possible, treat your regulator as a project team member

• Put yourself in the regulator’s place, the more you can offer the faster the project timeline

• Make sure that all parties involved are getting something from the project