October 4, 2022
6 min read

On-site power generation for Shanghai Orient Champion Paper

In response to China's coal-to-gas policy, Shanghai Orient Champion Paper Co, Ltd. decided to start its own power generation in 2015. The company searched for various solutions and finally decided on the Siemens SGT-300 gas turbine, setting a completely new benchmark in China.

A future-oriented technology is finding its way into the Chinese market – our industrial gas turbines were the first to be used in the Chinese pulp and paper industry. Today’s operation proves that it was the right decision: The plant was able to reduce its carbon footprint by 60 percent and now saves 20 percent of its energy costs annually.

Kang Di

General Manager Sales of Power Generation, Gas and Power, Siemens Ltd., China

From politics to a new industrial benchmark in China

As part of China's efforts to reduce coal consumption nationwide, it became crucial for the Shanghai Orient Champion Paper in 2015 to respond to the government's coal-to-gas policy. The company produces face tissues, paper and kitchen towels, toilet paper and paper rolls for the printing industry. Paper production is considered one of the five most energy-intensive industries. Until then, the company, which has the capacity to produce 140,000 tons of paper annually, had operated its eight paper machine production lines with grid power and externally generated coal-fired high quality steam.

Protecting the environment and saving energy costs

Following Shanghai Orient Champion Paper's mission, the management decided to invest in its own clean power generation and began to explore the option of clean and efficient gas-fired combined on-site heat and power generation.

Not an easy task, as the demanding production of paper requires a reliable and highly flexible power supply that can always adapt to load shifts. To avoid downtimes, the company was also looking for a solution that was particularly service-friendly.

140,000 tons of paper production capacity per year

The mission of our company is to provide consumers with safe and caring quality products and services, employees with a healthy and stable workplace, shareholders with excellent achievements in sustainable development, and a responsible corporate image to the community.

Xu Mingyan

Deputy General Manager of Shanghai Orient Champion Paper Manufacturing Center

A trailblazer in the Chinese paper market

Shanghai Orient Champion Paper took a close look at several turbine types various Siemens competitors. The SGT-300, an industrial gas turbine that has proven itself particularly in the oil and gas industry, was not initially on the list. No one in the country had ordered the turbine before, and it would also be the first to be used in the Chinese pulp and paper industry. But impressed by the turbine's thermoelectric ratio and convinced by the expertise of Siemens, the management decided to be the first operator of the SGT-300 in China. After all, by then the turbine had already proven itself in many different industries worldwide.

In terms of distributed energy supply in Shanghai, this project can be described as a benchmark project.

Chen Chaofeng

Manager of the Power Department of Shanghai Orient Champion Paper

Highest efficiency and lower emissions thanks to two turbines

In 2017, two SGT-300 single-shaft packages were ordered, together providing 15.8 megawatts of energy. The turbines have been in operation since spring 2018 and are now generating electricity and process steam efficiently, reliably and flexibly. After several months of completely trouble-free and stable operation, the company finally decided to cancel the external power and heat supply completely. 

A brave decision pays off

The decision to install a Siemens SGT-300 makes Shanghai Orient Champion Paper a green pioneer in one of China's most important industries.

Carbon dioxide reductionLess energy consumptionEnergy savings per year

It’s the technology that makes the difference

Shanghai Orient Champion Paper benefits from the high exhaust temperature and class-leading steam-raising capability of the SGT-300. Its NOx and CO2 emissions fully comply with the province’s environmental regulations. The accessibility of the combustion chambers, flame tubes and ignitors for higher availability and serviceability are additional critical features that help the operator optimize operation and reduce costs.

Regional partnering is crucial for the successful implementation of this future-oriented technology. Zhuzhou AECC PST Nanfang Gas Turbine Co., Ltd, a Siemens designated partner for industrial power applications in China, supplies an extensive package and power plant scope. They ensure the optimal balance between Siemens and locally sourced equipment and services. This made it possible for Siemens not only to supply the products, but also to ensure time-optimized, reliable commissioning and long-term support of operations.

After the SGT-300 was first put into operation in early 2018, the 2018 annual energy consumption was decreased by about 12,000 tons, carbon dioxide emission could be reduced by more than 60,000 tons compared to the coal fired energy solution.

Chen Chaofeng

Manager of the Power Department of Shanghai Orient Champion Paper

A proven, robust gas turbine

The SGT-300 is a proven, robust gas turbine performing successfully for many years in power generation and combined heat and power applications. The single-shaft turbine has an electrical power output of 7.9 megawatts. The compact arrangement, on-site or off-site maintainability, and inherent reliability of the SGT-300 make it an ideal gas turbine for demanding industries.

The SGT-300 is a proven unit for all electrical power generation and cogeneration applications.

  • Over 150 units have been sold, with more than 5.6 million equivalent operating hours
  • Excellent steam-raising capability with best-in-class exhaust temperature
  • Dry Low Emissions (DLE) with capability of <15ppmV for NOx and CO
  • Best-in-class for fuel flexibility
  • Rapid core engine exchange minimizes downtime
  • Ideal for industrial power generation

It is an honor for me to be involved in the production of environmentally friendly and healthy paper products.

Chen Fenghui

Energy Plant Manager of Shanghai Orient Champion Paper