The Client

The client is a privately owned Australian company which produces and distributes poultry products throughout the country. The company is one of Australia’s largest poultry processing companies, and has a vertically integrated model, meaning they control and manage production process from start to finish.

The Project

The client is a large energy user with a correspondingly large GHG emissions footprint. This means that they are likely to be impacted as the state, national and global economies transition to net zero emissions over the coming decades. The company has already noted that these impacts are already starting to be felt, in particular from supply chain pressures from their major customers, who have made public net zero emissions commitments and are therefore requiring their suppliers to provide information on their current emissions and their emissions reduction plans. In order to ensure business continuity and profitability during this transition to a net zero emissions world, they recognised the need to prepare a corporate carbon emissions reduction strategy.

Our Role

Northmore Gordon developed a Corporate Carbon Emissions Reduction Strategy for the client, including:

• Identifying strengths and gaps in the client’s current approach to managing carbon emissions;
• Conducting a series of workshops with a range of stakeholders across the organisation to review key carbon management concepts and frameworks, including the Greenhouse Gas Protocol, Science Based Targets initiative (SBTi), Climate Active, and the Task Force on Climate-related Financial Disclosure (TCFD)
• Establishing a baseline carbon emissions footprint, covering all relevant scope 1, 2 and 3 greenhouse gas emissions
• Identifying opportunities to reduce carbon emissions across the organisation;
• Modelling various emissions reduction pathways, including Marginal Abatement Cost Curves (MACC);
• Defining emissions reduction targets with timeframes and implementation pathways
• Developing engagement tools to communicate the strategy internally and externally

The Outcome

“With Northmore Gordon’s help we were able to establish a carbon footprint and develop a strategy, we can now share to our key stakeholders and most importantly our customers. We believe it is our responsibility to work in a manner that reduces harm to the environment and had already been doing a lot to reduce our impacts. We are now able to set ambitious targets, understand our footprint and collaboratively work together with our customers and suppliers towards zero emissions.”

For more information contact: c.morgan@northmoregordon.com

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The Client

Greenham is a large-scale family-owned livestock business with three sites across Australia; Smithton (TAS), Tongala (VIC), and Moe (VIC). Rising energy costs and the need for alternative energy sources encouraged them to seek an energy expert to develop an end-to-end energy and carbon management strategy.

How We Helped

• Renewing annual data
• Energy productivity audits
• Cogeneration support
• Carbon credit monetisation and government grants
• Energy and carbon reporting
• Energy efficiency certificate creation

The Challenge

Greenham is a large-scale family-owned livestock business with three sites across Australia; Smithton, Tongala, and Moe. Rising energy costs, ageing infrastructure, and the search for alternative energy sources encouraged them to seek an expert to help them with their energy and carbon management strategy.

The Process

Smithton

Northmore Gordon was first engaged in 2014 to assist with a switch from coal to renewable biomass in the boiler at the Smithton site. Northmore Gordon registered the project for carbon off sets through the Emissions Reduction Fund (ERF), negotiated sale of off sets to a buyer, and submitted the first off sets report. Knowledge of measurement and verification methods in the Carbon Farming Initiative enables Northmore Gordon’s Energy and Carbon Performance Consultants to create Australian Carbon Credit Units (ACCU) every year, delivering a total of over $175K of value to Greenham. This involves intensive data analysis, modelling, liaising with the Clean Energy Regulator, participating in ACCU Auctions, and negotiating with buyers on the secondary market.

Further to the creation of ACCUs, Greenham was investigating a replacement for their biomass boiler which was nearing the end of its life. Northmore Gordon prepared a detailed specification of the new boiler and identified capable supply and installation contractors. A new state-of-the-art model is now operating at 15-20% greater efficiency, leading to a fuel cost saving of $50K per annum.

Tongala

Following the work at Smithton, Greenham was interested to assess the viability of embedded solar PV at Tongala. Northmore Gordon performed a solar feasibility analysis and investigated the suitability of a 2MW solar farm quoted by an external supplier. With complex electrical and thermal systems it was determined that other options should be investigated before proceeding. Subsequently Northmore Gordon performed an energy audit to provide a comprehensive review of the facility’s energy performance and renewable energy generation options. Although solar was considered, the audit revealed that cogeneration powerfully aligned with the energy profile and needs of the business. Funding through Sustainability Victoria supported the cost of the audit.

There were 15 potential areas of optimisation around the site, which would provide an estimated cost savings of $1M per annum. Greenham wished to further investigate three of these areas, upgrading the hot water system, cogeneration and conversion to High Voltage supply. These stand-alone business cases required further engineering design work and engaging suppliers. Greenham progressed with the cogeneration opportunity, which would also help alleviate hot water complications. Northmore Gordon also identified that cogeneration could be funded under a government grant, and Victorian Energy Efficiency Certificates (VEECs) could be created based on the energy savings. The grant was secured and the project registered for VEECs, improving the business case. The final design included 2MW of cogeneration units running off natural gas and biogas captured from the wastewater treatment system. This will provide electricity and hot water to the site and will augment the existing gas-fired hot water heaters.

Outcome

Greenham is now positioned as a leader in energy and carbon performance in the livestock processing sector and there are even more opportunities to improve. By entrusting Northmore Gordon to help improve carbon and energy performance, Greenham has drastically reduced energy costs, reduced greenhouse gas emissions, and improved energy productivity at their sites. Northmore Gordon worked extremely hard to unlock funding to help finance energy productivity and decarbonisation projects. This has been achieved through the annual creation of ACCUs at Smithton with a final value of over $175K. At the Tongala site the cogeneration project NG has been able to generate over $4.5M in total for Greenham from an upfront grant and from the VEU program for project implementation.

With the help of experts, you can help transform your energy performance and dramatically reduce costs.

For more information contact: c.morgan@northmoregordon.com

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“Northmore Gordon worked alongside the boiler installation company as well as AJ Bush Manufacturing to complete the project. Northmore Gordon went above and beyond to get the project done and were able to work under difficult circumstances to make sure AJ Bush Manufacturing was able to access the credits for this project.”- Nick Lawrance – Plant Engineer

The Client

AJ Bush & Sons (Manufactures) is Australia’s largest east coast protein recovery provider operating rendering and manufacturing plants in NSW and QLD. The plants specialise in processing animal by-products for the meat/butchery industry. The NSW (Riverstone) plant’s collection area, in addition to Sydney Metro, ranges from Nowra in the south to Canberra, Dubbo and Bathurst inland and up to Newcastle and Tamworth in the north. The material collected is recycled into products used for livestock, pet food, aquaculture, fertiliser and biofuels.

Key Facts

Equipment Upgraded: Gas-fired boiler (50y.o originally oil-fired)
Annual Energy Savings: 11,790 GJ p/a Opex: > $80,000
Certificate Value: $120,000
Project Payback Period: 15 Years
Program: NSW Energy Savings Scheme
Method: Installation of High-efficiency Appliances for Business (IHEAB)

The Project

AJ Bush Manufacturing Plant (NSW) operates 24/6 processing red meat and poultry by-products, making it extremely important that the boiler runs reliably and efficiently. An earlier energy audit in the plant identified a number performance improvements and highlighted the advantages of a boiler replacement. The plant had already made a number of services and repairs but it was determined the boiler was at the end of its serviceable life and the decision was made to replace the unit. The upgrade from the 7.3MW boiler to a new 10 MW boiler for extra capacity included many efficiency options including an economiser, oxygen trim, electronic air/gas ratio, and automatic TDS blowdown. Northmore Gordon is a leader in environmental certificate creation and trading. We have created the most certificates of all Accredited Persons under the Victorian Energy Upgrades program, an Accredited Certificate Provider in the NSW Energy Savings Scheme, and registered agent under the Federal Renewable Energy Target.

Challenges

Project was completed and done in conjunction with production as AJ Bush operates 24/6

Outcomes

7.3MW Gas boiler was replaced with 10MW boiler

Our Role

Northmore Gordon were engaged during the specification of the boiler and were able to calculate the value in energy saving certificates for various options (such as the economiser and blowdown controls). Working under Northmore Gordon’s direction AJ Bush collected much of the evidence required to meet the NSW ESS program requirements. In addition Northmore Gordon provided a price hedge to protect against adverse changes in the certificate price during the finalisation of the claim and the audit process.

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Food & beverage manufacturers play a vital role in the economy’s supply chain. These facilities involve energy-intensive processes to transfer ingredients as well as blend, heat, cool, store,  pack and deliver their products. With most organisations attributing over 15% of their operational costs to energy consumption, there is an immense opportunity for improved energy efficiency to lower their organisational operating costs and contribute toward corporate emission reduction targets.

Read on to discover the six energy efficiency strategies that food and beverage organisations should consider for their facilities. 

Strategy 1 — Review Compressed Air Distribution System and Compressed Air Use

Optimising a manufacturing plant’s compressed air distribution system is an effective way for the plant to reduce its carbon footprint and save a considerable amount on operational expenses. For food and beverage plants, it is common for 10-40% of total energy costs to go toward the generation and distribution of compressed air.  Considering that energy costs make up 80% of an air compressor’s total cost of ownership, it is clear how efficient equipment and system maintenance can lead to significant savings.

To optimise the compressed air system, it is important to eliminate the amount of compressed air lost through leakage. It is not uncommon for a facility to lose up to half of the energy expended to generate compressed air on leakages. Identifying leaks and repairing these enables facilities to improve their energy efficiency and reduce consumption. Although identification of major air leaks can be detected by listening for the leaks in non-production periods, a more robust and detailed analysis typically requires specialised equipment and an experienced technician.

Another issue is that a plant may use compressed air inappropriately. For instance, some operators may use compressed air to clean equipment, which is wasteful and can potentially give rise to Occupational Health and Safety (OHS) issues. Instead,  vacuuming or sweeping away debris is a safer and more energy-efficient means of cleaning.

Strategy 2 — Review Steam System

Due to the integrated role steam has throughout a facility, it is critical to have a comprehensive understanding of the plant’s heat flow and temperature requirements to make effective improvements to the plant’s thermal energy processes.

Like compressed air distribution systems, steam piping and valves are subject to leakage and subsequent wasted energy. Repairing leaks is a sensible start to reducing a facility’s steam requirement. Insulating steam piping and valving to prevent heat loss will also reduce demand on the boiler, which lowers fuel consumption and creates a safer work environment.

Beyond insulation and leak repair, there are several other energy-efficiency best practices that can be used to optimise steam generation systems:

• install an economiser on the boiler to utilise untapped energy from the boiler waste heat stream
• install an oxygen trim on the boiler to monitor and adjust combustion air to maximise combustion efficiency through the minimisation of excess air.  Not only does this enhance overall boiler efficiency, but it can assist with stack emissions compliance.
• install variable speed drives (VSDs) on the induced draft and force draft fans to adjust the fan speed in accordance with demand
• optimise boiler sequencing in multi-boiler installations through a boiler management system
• maximise condensate return

Industrial heat exchange, or heat recovery, provides a source of clean, reliable thermal energy. Capturing and utilising the energy potential of a return heating stream is an effective way to reduce boiler demand, save on fuel costs, and reduce emissions. Because it is more energy-efficient to create hot water than it is to generate steam, it is also worth assessing heating requirements to determine if hot water can replace steam.

Strategy 3 — Consider Implementing Heat Pumps

A heat pump can potentially provide for many of a facility’s hot and chilled water needs. For hot water needs up to 90°C, an industrial heat pump is extremely efficient, requiring only a third of the energy needed to power a traditional hot water heater. For more domestic needs, such as hot water for staff amenities, a commercial heat pump set at 60 – 65^oC can be used.

Commercial heat pumps can also chill water, some creating temperatures as low as -9°C. Using CO₂ as a natural refrigerant instead of a chemical alternative, commercially available heat pumps also help improve a facility’s carbon footprint. In many cases, the operational efficiency of heat pumps make them a viable alternative to be considered when determining how to reduce carbon intensity and cut energy costs. 

To further reduce heating and cooling demand, the required temperatures for various applications should be assessed. It may be that cooler temperatures will suffice for various hot water applications, such as using 60^oC water in place of 70^oC water for cleaning purposes. In some cases, warmer temperatures – or even ambient temperature water – may suitably serve a plant’s cooling water requirements. Changing the temperature of a heating or cooling medium may result in larger heat transfer areas being required, longer heating and cooling times, and proof of cleanliness being compromised. Therefore, several factors need to be considered before making these temperature adjustments to ensure the continuation of quality operations.

If deemed viable, adjusting the water temperature profile across the processes and maximising heat regeneration across the plant will help reduce heating and cooling energy requirements, aiding energy conservation, emissions reductions, and cost savings.

Strategy 4 — Reduce Cooling Requirements

To reduce the cooling requirements for refrigerated rooms, it is imperative to minimise cold air escape. Firstly, it is important to limit the time that the refrigerated room is directly exposed to ambient air, which occurs whenever the door to a refrigerated room opens to an ambient space. When this happens, cool air migrates to the warmer environment, leaving a void to be filled by fresh air that needs to be chilled through the refrigeration system. One way to limit this exposure to the outside environment is to install roll fast doors that are activated using push buttons or vehicle sensors in the floor. Another strategy is to incorporate an airlock between the refrigerated room and the warmer external space.

Additionally, it is important to ensure proper insulation around doors and other penetrations to prevent cold air from escaping through holes and cracks. An infrared gun can be used to identify cold spots resulting from a leak.

Lastly, a facility should assess if it keeps its refrigerated space at an appropriate temperature. If the temperature can be slightly raised — from 1°C to 3°C, for instance — then the facility will require less energy to maintain suitable conditions.

Strategy 5 — Enable Pump Systems to Match Demand

Prioritising energy efficiency is important when considering a pump, fan, or other pieces of motor-driven equipment. Pumps are used for transporting ingredients, products, utilities, and effluent, making them one of the most frequently installed pieces of equipment in food and beverage plants. It is common for pumps to account for 25-50% of a facility’s total electrical usage. Reviewing and optimising the operating conditions of pumps and similar equipment can therefore have a significant impact on a plant’s energy efficiency and operational expenses.

Significant opportunities exist to reduce pumping system energy consumption through smart design, retrofitting, and operating practices. In particular, pumping applications with variable-duty requirements offer great energy and cost savings potential. Pump systems are often oversized, many by more than 20%. If a pump demand varies, retrofitting oversized systems with VSDs can better match pump output to system requirements. This retrofit can save considerable amounts of energy, as well as enhance performance, improve reliability, and reduce life cycle costs. If a process’ flow requirement is constant, then a properly-sized replacement pump may be a consideration, or alternatively, the existing pump could be throttled through flow rate control to conserve energy.

Similar to pumps, fan motors can benefit from the installation of VSDs. Whether the fans are on boilers, refrigeration units, or other equipment, a VSD enables the fan motor to conserve energy while more accurately meeting demand. 

Strategy 6 — Maximise Capacity

Processes are generally most efficient when equipment is operating at maximum capacity. For instance, it is more efficient for a two-boiler system to have one boiler running at maximum capacity rating (MCR) with the other on standby than to have both boilers operating simultaneously at 50% MCR. Similarly, organisations that produce the same product at different sites, such as sprayed dried whole milk powder, should consider conducting long runs at one site while the other location temporarily shuts down. This has the potential to be more efficient than doing short runs across both sites as frequent equipment startups and shutdowns lead to an increased amount of non-productive energy and resource consumption, resulting in less energy-efficient operations. 

For industrial food and beverage facilities, there is often a significant opportunity to improve energy efficiency with existing infrastructure. By exploring ways to improve thermal energy retention and optimise systems to meet energy demand, facilities can identify strategies that result in considerable cost savings and improved energy efficiency.

Northmore Gordon helps industrial food and beverage facilities realise these savings. Our team of energy experts can help to identify and implement energy-saving strategies as well as to measure their impact. We are committed to finding energy solutions that meet industrial facilities’ corporate needs. Contact our team to enhance your facility’s energy efficiency strategy.   

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