CHENG LOONG

To promote air pollution reduction, in addition to the regular testing of the boiler equipment and exhaust pipe, major Mill set up automated and continuous air quality monitoring facilities and connected them to the equipment of the competent authority to ensure compliance of the emissions with laws and regulations. Improvement measures are taken for the pollutants on an ongoing basis and the following 3 phases are designed for the improvement: source management, process system optimization, and end control. The source management includes reducing the consumption of coal, heavy oil, and other fossil fuels by integrating energy resources. We have also set long-term reduction targets to reduce air continuously.

Following the construction of an indoor coal yard at the Houli paper mill in 2019 to reduce particulate matter dispersion at the coal storage site, we continued in 2020 to enhance dust control by adding dust suppression equipment at the top entrances and exits of coal silos, installing water mist dust suppression equipment, and adding baghouse dust collectors for fly ash pneumatic conveying systems. CLC also installed multiple sets of SCR prevention equipment*. Additionally, to improve air quality, the Tayuan Mill installed biogas desulfurization equipment at the wastewater treatment mill, the Houli Mill reduced load on the G2, and high-quality coal was continuously procured, significantly reducing SO_x emissions. Compared to 2019, the sulfur content of coal purchased in 2023 has been reduced to 0.62%, a decrease of 23%. The Paper Products Division also completed the conversion of all oil-fired boilers to natural gas in 2020, not only saving on fuel costs but also greatly improving air quality, achieving a win-win effect for environmental sustainability and corporate growth.

*SCR (Selective Non-Catalytic Reduction) is the technology to remove NOx from flue gas

Taiwan's 1^st mill with an indoor coal yard

Houli Mill initiated the construction of the new indoor coal yard in 2017 and was completed in March 2019, the Chupei Mill also established a similar facility. The coal bunker consists of 3 sections and care store 3 different types of coals for use by boilers from different burning characteristics to enhance bunker control efficiency and prevent spontaneous combustion of coal through turning prevention.

Taiwan's 1^st papermaker using gas boilers in all container box plants

Since 2013, CLC has initiated the replacement of oil-fired boilers with natural gas boilers in all paper product plants across Taiwan, completing the transition in 2020. With the adoption of natural gas boilers, combustion efficiency has increased by more than 5%, greenhouse gas emissions have decreased by 27%, nitrogen oxide emissions have been reduced by 63%, and total suspended particulate emissions have decreased by 93%*.

* Calculated according to the “Regulations Governing the Emission Coefficients, Control Efficiency, and Other Quantification Rules for the Declaration of the Air Pollution Control Fees for Particulates, Lead, Cadmium, Mercury, Arsenic, Hexavalent Chromium, and Dioxin at Public and Private Stationary Pollution Sources.”

To resolve the odor problems in paper mills, our efforts in process improvement and system optimization have borne fruit. All units also inventory the odor sources and make the odor maps to focus on the improvement countermeasures. In endpoint control, we build high-efficiency air pollution control equipment to effectively control air pollution emissions. In 2023, the Company receive no fine for odors from air pollution.