Becoming more energy efficient is important to everyone, but it's critical for a Wisconsin paper mill.

The paper manufacturing industry is the largest user of electricity of any industry in the state. And many of our mills built around the turn of the 20th century face tough competition from foreign manufacturers with mills built in the 21st century.

No one knows this better than BPM Inc. of Peshtigo, a company formed in 2005 after a buyout of the Badger Paper Mills, which had gone into bankruptcy in large part because of a spike in energy prices that year.

Jim Koronkiewicz, BPM’s general manager who worked for the former Badger Paper Mills for 31 years, says his company spends in excess of $4.5 million per year on electricity and natural gas, which makes up 8 to 15 percent of BPM’s annual operating costs.

So when BPM received the Governor's Award for Excellence in Energy Efficiency in 2009, it was a lot more important than just bragging rights. BPM won the award for smaller mills while Flambeau River Papers of Park Falls received the honor for larger plants.

“BPM was head and shoulders above the other small mills in Wisconsin in completing their energy-efficiency projects,” says Gerry Awe, a Focus on Energy adviser for the paper industry. Focus on Energy, the state's agency that encourages energy efficiency through grants, loans and technical advice, was instrumental in helping BPM achieve its award.

“Focus on Energy helps us be the viable paper mill we are today,” says Koronkiewicz. “We wouldn't have found all the potential for energy savings without Focus.”

As of May, Focus had awarded more than $125,000 in financial incentives to BPM. This allowed the company to save more than 1.4 million kilowatt hours of electricity and 370,000 therms of natural gas annually. That amount of energy would be enough to power 525 homes. It saved BPM $470,000.

“We applaud their commitment to the environment and recognize them as positive examples for other businesses to follow,” adds Ken Williams of Focus.

Some of the steps BPM took to improve its energy efficiency included:

• Completing numerous feasibility studies to find innovative and cost-effective ways to save energy.

• Hiring Steve Peterich, a former employee of Badger Paper, as the on-staff engineer dedicated to completing energy projects.

• Updating lighting, steam trap, motor and compressed air systems throughout the mill.

• Improving equipment operating efficiency with continued preventive maintenance.

At BPM, Koronkiewicz says an acceptable return on investment for energy efficiency projects is two years or less. “However, Focus on Energy allowed the company to disregard this rule of thumb by helping finance items that didn't meet the ROI policy,” he adds.

BPM, with plants in Peshtigo and Oconto Falls, is a manufacturer of specialty and fine papers and packaging solutions. Its products are used in retail, commercial and office settings and it does the printing for various applications. The packaging products are used primarily by the confectionary, fast food, grocery and drug and pharmaceutical industries.

Badger Paper employed 143 at the time of its closing. BPM started out with 75 workers in 2005 and has expanded to a work force of 115, the second largest employer in Peshtigo.

And the company is not resting on its laurels. It continues to work with Focus and  Peterich continues to compile lists of potential projects. Last fall's list included an air compressor, reducing paper drying time and refiner improvements.

Koronkiewicz represented Save Energy Now in Washington, D.C., discussing energy issues with U.S. Department of Energy officials.

Awe says the issue for Wisconsin paper mills is not so much about reducing use of energy as it is in using energy effectively. “Too much power  is hard on equipment,” he says.

The collaboration of companies like BPM with Focus is an important part of changing how the industry uses energy.

By John Hill

You can contact John Hill by e-mail at jhoythill@sbcglobal.net.