The objective of this thesis is to understand the energy utilization and look for ways ofrnconservation for the Ethiopian pulp and paper S.co. To understand the process, a thoroughrnassessment of the production process was carried out, as it is a vital step to identify energyrnconservation opportunities. Job implementation reports of the factory were investigated and itrnwas found that, recently it is using around 15GJ/ton. World and European best practices werernalso investigated, and it was found out that in around 2000 G.C., 7.1GJ/ton to 7.64GJ/ton was arngood practice. A benchmark that was useful before 13 years is good enough for a developingrncountry like Ethiopia. To close the gap, energy conservation opportunities were also identifiedrnand listed out. One of the opportunities was selected on the basis of importance and a detailedrnaudit was carried out. Specifically, the primary drier section was quantitatively modeled. It wasrnfound out that 1.41Mw of waste heat was being ejected through the hood. It was also pointed outrnthat recovering of some of this waste heat would have a positive contribution towards closing therngap. Economic analysis of the recovery system suggested that it was economically feasible.rnEnergy loses due to: - rework, steam leakage, and condensate leakage, were also quantitativelyrnestimated. And it was found out that, potentially, about 1.924 GJ/ton or 1,572,500 birr per yearrncan be saved by using modern heat recovery system; 1.55GJ/ton or 809028 birr per year can bernsaved by avoiding rework; 0.204 GJ/ton or 106508 birr per year can be saved due to avoidingrnsteam leakage and 0.245 GJ/ton or 132795 birr per year can be saved by avoiding condensaternleakage.