THE ENER-G GUIDE TO CHPFood & Beverage

FDF Members Special Edition

www.energ-group.com

Contents

Clean Sweep:

How F&D manufacturers are meetings emissions targets

Pg. 4

Keep it clean:

How can anaerobic digestion provide my business with cheaper, cleaner energy?

Pg. 28 Pg. 30

Plant life:

Why it’s time to act now on biogas

Pg. 32

Manufacturing

3.92

Other

3.00

Household

7.00

Biogas by numbers:

A summary of the key figures involved in the production of biogas from food waste via anaerobic digestion.

How to cut energy costs in your food and drink manufacturing plant

Pg. 6 Pg. 12

10 Ways to reduce waste energy in your production line

Pg. 16

5 Food and drink manufacturers making chp work

Healthy diet

How to turn your food waste into clean, renewable energy

Pg. 22

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Installing a biogas project with anaerobic digestion and biogas CHP will reduce your greenhouse gas emissions by replacing power generated from fossil fuels with cleaner, cheaper renewable energy.

Reduce energy, reduce emissions The main sources of greenhouse gas emissions from manufacturing sites relate to the use of energy. This includes direct emissions from the burning of fossil fuels, to produce heat and steam, and indirect emissions, including the use of grid electricity and power production equipment. Making production processes more energy efficient will reduce both conventional energy use and emissions. Using low-carbon technologies will reduce energy and emissions even further. On-site cogeneration of electrical power and heat energy from a combined heat and power (CHP) unit fuelled by natural gas will reduce carbon emissions by up to 30%. Reduce energy, reduce emissions CHP can also operate with alternative fuel sources with an even greater impact on emissions savings.

Biodegradable organic food waste treated in an anaerobic digestion (AD) process will produce biogas. This combustion fuel can be used to generate renewable electricity and heat energy from a CHP unit. Reducing transport emissions This area may not be quite as significant as the emissions from energy use, but the transport of food materials still contributes to the industry’s carbon footprint. Biofuels for transport Biogas can also be cleaned and upgraded to biomethane. In gaseous form it can be sold for injection into a natural gas grid, or if compressed and liquefied, sold as a renewable transport fuel for vehicles running on compressed or liquefied natural gas. Make sure your biogas project is fully scoped out by visiting our blog.

Clean Sweep: How F&D manufacturers are meeting emissions targets

Visit our blog

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Energy efficiency means doing more with less, but sometimes you need to spend money to save money.

HOW TO CUT ENERGY COSTS IN YOUR FOOD AND DRINK MANUFACTURING PLANT

Energy efficiency is a priority for UK businesses, but many are reticent to go beyond the low hanging fruit because of fears that there won’t be sufficient returns on investment. This has been referred to as the energy efficiency paradox. There are a myriad of reasons for this, including:

Energy landscape

Commercial electricity prices have rocketed over recent years from just over 4.2p/kWh to just below 9.1p/kWh. That’s an increase of 115%, compared with general price inflation of 22% over the same period. According to the Government’s Committee on Climate Change, this meant electricity costs as a proportion of total costs increased from 0.28% in 2004 to 0.38% in 2011. For heavy users of energy, like manufacturing, energy is between 3% and 6% of costs.

Under the Department for Energy & Climate Change’s central scenario for fossil fuel prices, bills will increase by around 15% by 2020. There could be additional rises due to green levies too.

Food manufacturers will also need to be mindful of Electricity Market Reform measures that could push costs up by anything between £3/MWh and £25/MWh, according to some estimates. That’s up to another 20% on your energy bill.

The perception of risk

A suspicion of ‘hidden’ costs

A lack of strategic direction within the

company

An unwillingness to change equipment

before time

! ?

7

Energy efficiency, after all, is about achieving

more with less

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The bottom line is that almost no business – large or small – will be left unscathed. The price rises will undoubtedly hit competitiveness. In fact, a survey by EEF, the manufacturers’ association, found one in four manufacturers may consider investing in facilities overseas.

Rising concerns

As an energy manager or facilities manager, the pressure is on. You’re not alone. Over three quarters (77%) of those responsible for energy in food and drink manufacturing say managing energy is a business-critical issue. More widely, the projected energy price rises could reduce the competitiveness of 53% of manufacturers.

?77%

53%

Measuring your energy use will also provide an indication on where efforts should be focused – that is, in areas where the most energy can be saved for the least amount of capital expenditure.

9

Budget pain

Some 63% of food and drink manufacturers increased investment in energy management in the past 12 months (to September 2014). Meanwhile, 74% have purchased energy saving technology. Almost two thirds, 63%, have invested in renewable/self-generation technology.

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Cost savings

The first step for businesses wanting to cut energy use is to understand when and why they use energy. This provides a starting point from which progress can be measured and assessed.

Nearly 75% of board directors, senior management and energy managers are seeing the benefits to the bottom line from energy saving measures.

Much of this will be the low-hanging fruit: changing lightbulbs; the re-assessment of heating priorities and perhaps even changes to shift patterns. This is undoubtedly where the initial priorities should be.

CHP adds up

According to the Department for Energy and Climate Change, CHP is, for many organisations;

“the measure that offers the most significant single opportunity to reduce energy costs and to improve

environmental performance”.

11

You need to determine feasibility

For example, a CHP unit can only deliver these savings when it is running and when there is a coincidental demand for heat and power, typically for at least 5,000 hours a year. For those that have invested in CHP – food manufacturers, hospitals, hotels and leisure centres – they see it as a safe bet with certain return on investment.

Summary

Low hanging fruit to long-term strategy. With energy prices set to rise by at least 15% by 2020, the pressure is on to deliver efficiencies.

Paradox pain. Business investments in energy efficiency generally appear to require very high rates of return; in some circumstances much higher than other investments with comparable risks.

Money talks. Energy is a boardroom priority and board members understand the bottom line. Any energy company should be able to provide detailed projections for your investment.

Do the maths. Some technologies, including CHP, will deliver outstanding returns, but the levels will depend on your business and its energy needs.

15%

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Optimising the use of refrigeration and chilling, which can account for up to 50% of a site’s energy costs.

• Prevent overcooling to minimise energy costs and improve efficiency.

• Maintain systems and pipework - ensure they are not blocked, dirty or leaking.

• Upgrade or replace inefficient equipment.

• Switch off lighting in refrigeration areas when not in use.

• Keep refrigeration doors closed and prevent cool air from escaping.

1.

Ensuring pipework is well insulated (refrigeration, heating and steam systems).

3.• Pipework should take the shortest route to minimise potential energy losses.

• Insulation should be in good condition.

Follow these 10 tips to improve production line efficiency in food and drink manufacturing and cut energy costs in your plant as well as meeting industry sustainability targets.

Reducing energy waste in manufacturing and improving production line efficiency is essential if manufacturers are to comply with mandatory greenhouse gas emissions regulations and EU targets - and it’ll also help lower energy bills.

Here are 10 ways that energy and facilities managers can improve the efficiency of their production line.

4.• Switch off idling air compressors, as they can still use 40% of their full load.

• Reduce the system pressure wherever possible.

• Carry out regular maintenance.

Operating costly compressed air systems efficiently.

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10 WAYS TO REDUCE WASTE ENERGY IN YOUR PRODUCTION LINE

Regularly maintaining boilers and heating distribution systems. Poorly operating boilers add 30% to heating costs.

2.

• Ensure burners are working efficiently, or replace them.

• Switch off burners when not required - install automatic controls.

• Upgrade or replace inefficient boilers to improve efficiency in the production line.

• Fit heat recovery systems to boilers (especially gas), e.g. reclaim heat energy for use in process preheating.

• De-steam non-critical systems and replace with less expensive hot water systems.

Improving lighting systems.5.• Fit high efficiency lighting and controls - this can

reduce energy costs by 30%.

• Fit motion sensors in unoccupied areas to automatically switch off lights.

6.• Switch off motors when not in use - fit auto sensors to control operation. • Install higher efficiency motors.

• Fit variable speed drives to pumps and fans.

Correctly sizing motors and drives for their application. This can reduce running costs by 3%-5%.

7.• Ensure water systems are well maintained.

• Recycle process water.

• Fit self-closing taps.

Initiating water saving measures.

8.• Ensure process equipment is utilised and controlled

efficiently. • Equipment should be regularly calibrated.

Using process measurement and control – this can cut energy costs by up to 10%.

9.• Fit meters to electrical equipment to monitor

system efficiencies and determine where further energy savings can be made.

• Turn off equipment when not in use, i.e. at night and on weekends.

Integrate energy management systems.

10.• Achieve energy cost savings of up to 40% and reductions in CO2

emissions of up to 30%.

• Install CHP as a replacement for inefficient boilers or alongside existing boilers – generate efficient electricity and heat energy from a single on-site process.

Consider Combined Heat and Power (CHP).

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With a turnover of £92bn (including exports of £19bn - £14.4bn to Europe), food and drink (F&D) manufacturing is the UK’s largest manufacturing sector.

£92bn

5 FOOD AND DRINK MANUFACTURERS MAKING CHP WORKFood and drink manufacturers are making CHP work for them, find out how.

To help meet the Food and Drink Federation’s (FDF) target for sustainable growth of 20% by 2020, the following 5 F&D manufacturers have already recognised the main benefits of investing in Combined Heat and Power (CHP).

20%

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Adams FoodsLeek

The unit produces:

225kW150kWof heat - used for pre-heating washing and cleaning water.of electricity

At their new state-of-the-art cheese packing facility, the dairy products company world famous for Kerrygold butter, have installed a CHP system to generate reliable energy supplies.

Operating 24 hours a day, the 15,500m2 site has been achieving carbon savings of 476 tonnes per annum, equivalent to an environmental benefit of 47,600 trees.

Adams Foods have also implemented a number of other energy saving measures to help future

proof the CHP system.

Tangerine Confectionery Pontefract

The unit produces:

225kWTrigeneration providing site with electricity, heating and cooling.

Cogeneration providing electricity and heat energy.

500kW

The facility will benefit annually from:

Cost savings £200,000.

Carbon savings of 630 tonnes (equivalent to 63,000 trees).

CO2

The leading UK independent manufacturer of sugar confectionery (including Butterkist popcorn) are using two energy efficient CHP systems at their production plant.

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McCain Foods Whittlesey

The global fizzy drinks brand are planning a world-wide installation of CHP at 20 sites by 2015. Having installed CHP at bottling plants in the USA, Italy and Northern Ireland, Coca-Cola are also planning a CHP at their site in Wakefield, which is the largest soft drinks plant in Europe.

Target: to cut the site’s greenhouse gas emissions by 5.6%, with carbon savings of 1,500 tonnes per annum. CHP will produce high-efficiency clean electricity, heat, chilled water and CO2.

In addition to using biogas to fuel its steam boilers, the well-known manufacturer of potato-based products also runs its CHP on biogas produced from the site’s anaerobic digestion (AD) treatment lagoon.

The 1 MWe CHP provides 10% of the site’s electrical load and the heat energy is used to warm the lagoon.

Other companies are considering the combination of CHP with AD to accumulate further savings by using fuel produced from site waste.

CHP works well when it’s partnered up with other renewable energy solutions.

A 500 kWe CHP system and 1,000 kW steam boiler have been installed alongside the new AD plant at the whisky distillery, which is world-famous for producing Famous Grouse and Johnnie Walker Black Label.

5.6% carbon savings per annum

1,500tof greenhouse gas emissions cut

500kWe 1000kWCHP system Steam boiler

✓Saves energy and reduces energy costs.

✓Almost twice as efficient as conventional energy generation.

✓On-site generation provides more reliable and secure energy supplies.

✓Reduced greenhouse emissions offsetting the impact of Carbon Reduction Commitment (CRC).

✓Avoids Climate Change Levy (CCL).

✓Qualifies for government incentives – eligibility for Enhanced Capital

Allowances and reduced tax liabilities.

CHP’s main benefits to F&D manufacturers:

North British DistilleryEdinburgh

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DID YOU KNOW YOU CAN CREATE SUSTAINABLE ENERGY FROM YOUR FOOD WASTE?

It’s possible with a biological process known as anaerobic digestion (AD). With AD you can turn organic waste into biogas*– a methane-rich fuel.

HEALTHY DIETHOW TO TURN YOUR FOOD WASTE INTO CLEAN, RENEWABLE ENERGY

*Biogas is used as a combustion fuel for cogeneration: the on-site generation of electricity and heat energy using a small-scale Combined Heat and Power (CHP) unit.

SEE THE DIFFERENCE

Compare the fortunes of two energy managers:

Energy Manager 1The first manager looks after a food and drink manufacturing plant and uses conventional energy supplies from the national electricity and gas grids.

Typical Case

Efficiency

CONVENTIONAL GENERATION

Fuel

CO2

particulates

Organic food & drink waste

Evaporationincineration

water treatment

Liquid waste to sewer

Solid wastes to landfill site

Efluent disposal charges

Landfilltaxes*

Road Transport

65% WASTE

CH4 +CO2

emissions

Remote Thermal Power Station

On-site Boiler

This Facility

CO2

100% Fuel natural gas or coal

100% Fuel natural gas

5% LOSS

65% WASTE

30% POWER

75% HEAT

25% LOSS

CO2

CH4 +CO2

emissions

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Energy Manager 2Meanwhile, the second energy manager uses food waste to create biogas for cogeneration, leading to major energy cost savings and significant reductions in greenhouse gas emissions.

Typical Case

Efficiency

BIOGAS COGENERATION

1. Food and drink waste is processed by evaporation, incineration or water treatment (with high energy costs and greenhouse gas emissions).

2. It’s also sent to landfill (with all the transport fuel costs and emissions)*.

3. Any effluent is discharged into the sewer (resulting in high disposal charges).

1. Very high energy and production costs.

2. Very high greenhouse gas emissions.

3. Very high waste disposal costs.

With this approach: The Consequences:

85%

*Landfill tax is currently £82.60 per tonne for standard waste (April 2015)

CO2

carbon neutral

Export excess electricity

Tariffs(FiTs/RHI)

35% POWER

50% HEAT

15% LOSS

25% LOSS75% HEAT

This FacilityCogeneration

Anaerobic Digester

Biogas

To facility, or sell to local user

40% water

recycled back to

facility

Organic food & drink waste

Biomethane

Feedstock

Effluent treatment

Inject to Gas Grid

BiofertiliserTransport Fuel

Reduced waste disposal

Optional biogas boiler

CO2

carbon neutral

Digestate Storage

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1. Substantial cost savings.

2. A ‘greener’ image through the significant reductions in harmful greenhouse gas emissions*.

3. Major savings on waste disposal costs.

With this approach: The Consequences:

And Finally...

SUPPORT TARIFFS CAN MAXIMISE THE FINANCIAL GAINS OF BIOGAS CHP

Consider a food and drink producer operating on a 24-hour cycle. They have a biogas CHP unit operating at 92% availability, generating an electrical

output of 205 kWe and thermal output of 195 kWth.

Looking to make a difference? See what your food waste can do for you.

For the above F&D manufacturer, this will guarantee annual payments of:

£167,361 (FiTs) £117,866 (RHI) £285,227

That’s a total income over 20 years of £5.7 million

Renewable electricity

Feed-In Tariff (FiTs)

Renewable heat Renewable Heat Incentive (RHI)

10.13p per kWh

7.5p per kWh

(assuming full use of the heat in an eligible process)

(based on current rates)

Here are the tariffs available to them (April 2015):

1. AD means Energy Manager 2 can also create additional income streams to:

2. Maximise financial returns on tariffs (see example below)

3. Sell any excess electrical power generated to the electricity grid/local network

4. Sell excess heat energy to local users

5. Sell digestate - a by-product from the anaerobic digestion process - for use as a superior biofertiliser

6. Upgrade biogas to biomethane, and sell for injection to the gas grid or as road transport fuel.

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*The use of biogas is considered carbon neutral: the methane (CH4) in biogas is

completely combusted and there is a zero increase in CO2 in the exhaust gas

emissions

TAKEAWAYS:Make your waste work for you:

1. Convert it into renewable, efficient green energy

2. Use it to significantly reduce your greenhouse gas emissions

3. Make major savings on waste disposal costs

4. Take financial advantage of the additional income streams available

Keep it clean: How can anaerobic digestion provide my business with cheaper, cleaner energy?

Hydrolysis

Acidification

Acetogenesis

MethanogenesisCH4

Organic feedstock is broken down in a heated digester tank by the process bacteria and biogas is produced. The biogas can be used as:

1. Boiler fuel

2. For greater efficiencies - as the fuel for a Combined Heat and Power (CHP) unit, which generates electricity and heat for on-site use.

Anaerobic digestion is a four-stage process of:

Find out more information on the benefits of anaerobic digestion for your business by visiting our blog.

• Reduced greenhouse gas emissions by using carbon derived from an organic source with a short carbon cycle.

• Avoidance of CO2 emissions to the atmosphere by capturing and using methane in the food waste, that would otherwise end up in landfill.

• Displaced energy costs associated with conventional energy from fossil fuels.

• Reduced costs and emissions associated with the transport of waste.

Anaerobic digestion and biogas CHP units can provide UK food manufacturers with a sustainable, carbon-neutral source of clean,

cheap renewable energy:

CH4

View our Slideshare

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Plant life: why it’s time to act now on biogas

Act now to take advantage of financial incentives that encourage the installation of biogas plant to generate your own renewable energy.

Energy reduction targets by 2020 The UK government has made a commitment to meet challenging EU energy reduction targets: The benefits from financial incentives Feed-in Tariffs (FiTs), the Renewable Heat Incentive (RHI) and Renewable Obligation Certificates (ROCs) complement renewable energy savings with valuable revenue streams. The FiT and RHI tariffs present a fixed income for the life of the installation, based on the rate at time of construction. By visiting our blog, you can find out how to install biogas plants and read more about the financial incentives available.

Read more on our blog now

1. EU Renewable Energy • 15% of UK energy from renewable sources

• 10% of energy used in transport from renewable sources

• 35% reduction in biodegradable waste sent to landfill

• 35% reduction in CO2 emissions

EU Landfill Directive

Food and Drink Federation

2.

3.

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Biogas by numbers: A summary of the key figures involved in the production of biogas

from food waste via anaerobic digestion.

Almost 16 million tonnes of food waste in the UK per year comes from households and industry – 25% (3.92 Mt) comes from food and drink manufacturing, distribution and retail.

Grocery retail 0.43Wholesale 0.02

Hospitality 0.92

Manufacturing 3.92

Other3.00

Household 7.00

Total 15.28Mt(Data from: Food Statistics Pocketbook 2014)

Conventional energy generation efficiency

(grid electricity + natural gas boilers)

CHP generation efficiency

To optimise energy savings, biogas from food waste should be used to fuel a Combined Heat and Power (CHP) unit to generate on-site electrical and heat

energy.

ENERGY SAVINGS

85%52.5%+ Vs

Discover how your food waste can decrease your business’s energy bills, reduce your carbon footprint by visiting our blog.

Generated energy outputs can vary considerably with biogas composition. For example:

1 TONNE FOOD WASTE

100m3/HR BIOGAS YIELD

Generates 200kWh of Energy

WASTE MANAGEMENT COSTS WILL BE REDUCED:

• Costs associated with transporting waste to landfill will be eliminated.

• Some sites may be exempt from environmental permitting if their control of waste meets the required criteria.

• Energy generation using biogas from food waste instead of fossil fuels will reduce greenhouse gas emissions because the carbon in the food waste has been derived from an organic source with a short carbon cycle.

• The CHP’s CO2 emissions are not adding carbon to the environment.

CARBON SAVINGS

CO2

View the Infographic