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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About Molycop

Molycop is the largest and most experienced manufacturer and supplier of grinding media to mining operations worldwide. Molycop is striving for greater sustainability through superior resource efficiency and defining a new standard of environmental performance.

How we helped

Since 2006, the Northmore Gordon Newcastle team has helped Molycop achieve annual energy cost savings and maximise their return on investment in energy projects through:

• Energy management strategy
• Energy audits
• Project development support
• Grants and funding options
• Energy and carbon reporting
• Energy and carbon certificates

The Challenge

Molycop is the largest and most experienced manufacturer and supplier of grinding media to mining operations worldwide. Whilst energy has always been important, and compliance with regulation critical, the Waratah site has since expanded its focus to form a long-term goal of decarbonisation through an end-toend energy strategy.

With over 20 years of experience and extensive knowledge in the steel sector, Northmore Gordon was selected to help Molycop develop their comprehensive portfolio of energy projects. Northmore Gordon consultants worked closely with the client’s energy and operations teams to investigate their processes and identify opportunities for improving efficiency. More recently, Northmore Gordon’s Energy and Carbon experts have been assisting Molycop to plan towards a low carbon emissions steel-making process.

The Process

Northmore Gordon adopted a systematic approach to identifying and prioritising energy and carbon management opportunities. This included investigating capital projects, low cost process improvements, government funding and revenue from energy and carbon certificates.

Our Energy and Carbon Consultants helped Molycop access over one million dollars worth of revenue through the NSW government’s Energy Saving Scheme and capital grants. Northmore Gordon also assisted Molycop in their purchasing of renewable energy through a corporate Power Purchase Agreement.

Some projects that have been implemented include:

• Installing Variable Speed Drives on large fans and pumps, including high voltage motors
• Modifying controls on fume extraction and cooling systems
• Improving yield
• Improving furnace controls
• Reducing pilot flame gas consumption
• Upgrade bag house
• Improving furnace heat recovery system
• Installing heat recovery on ladle preheating equipment
• Cooling tower upgrades

Outcome

Through Northmore Gordon’s multi-disciplinary approach, Molycop’s energy savings has grown to over $1.5M per annum. The consequential reduction in Greenhouse gas emissions has resulted in 15K tonnes of corresponding carbon emissions abatement each year. This has resulted in over $12M in energy costs and certificate revenue over the course of the project.

Do you need help developing a decarbonisation strategy? Contact: c.morgan@northmoregordon.com

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The Australian government has recently declared that it will reach net-zero emissions by 2050.

This commitment sounds nice… but what does it actually entail? Considering the Australian government has made a lot of statements supporting hydrogen technology while also maintaining plans to develop new gas-fired power stations, what could the energy mix of Australia’s future look like?

If Australia is serious about its commitment to reach net-zero emissions and maintain energy security, there should be a commitment to:

– Incentivise electrification

– Deliver more clean renewable energy

– Implement long-duration energy storage

– Develop hydrogen solutions for hard-to-abate sectors

Electrification of Society — Moving From Gas To Electricity

Electrification is transitioning a process from being powered by thermal energy, such as natural gas or oil, to being powered by electricity. While some heavy industry will be difficult to decarbonise through electricity, there are many household & commercial appliances as well as industrial processes that will need to modernize and transition to electric power. Beyond being good for the environment, this electrification also grants greater energy security as Australian oil refineries and reserves have taken a serious hit.

For residential homes and commercial buildings, solar systems with battery storage will become the norm. To optimise the use of solar power, homes and buildings will have to embrace electric cooking appliances and heat pumps for air conditioning and hot water needs.

For transport, greater adoption of electric vehicles will decarbonise the transportation sector. Both personal vehicles and the smaller commercial fleet will go electric, and a modern recharging station powered by a clean-energy grid will empower drivers with the freedom of travel without pollution. Long haul vehicles may end up using green hydrogen as their fuel source.

There are ways electrification can occur in heavy industry as well. For example, cement manufacturers will likely need to look at alternate fuel options and electric plasma arc burners as a way forward. Heavy industry, such as cement and steel manufacturing, are hard-to-abate sectors that will likely be supported by natural gas for a number of years still. For these heavy industries, decarbonization through energy efficiency is key. This could involve improving steam system efficiency or capturing waste heat from industrial processes for direct use or for electricity generation. Energy efficiency is a great way for businesses to decarbonize and should be the first step in the decarbonization process. It reduces the amount of energy that must be produced in the first place and frees up cash for other purposes. In our experience there is still much to be achieved through energy efficiency in Australian manufacturing.

Where electrification proves difficult, opportunity opens up down the road for combinations of green hydrogen and biogas from waste treatment as a natural gas substitute.

Electrification of society will naturally increase electricity demand — and renewable energy sources provide the clean energy solutions to bring the supply.

Renewable Energy — Solar & Wind Dominant Electric Grid

Renewable energy sources have to make up a larger share of Australia’s energy profile. Currently, renewables only make up 7% of Australia’s energy consumption, and only 24% of Australia’s electricity generation comes from renewables. Biomass, photovoltaic solar, wind, and hydropower make up the overwhelming majority of that activity.

Biomass is currently the most heavily sourced renewable energy in Australia, but biomass carbon neutrality depends on regrowing plants to sequester atmospheric carbon, which may not make sense on a timetable that is relevant for keeping pace with the Paris Climate Agreement. The development of biomass should be a secondary choice behind other renewables like solar and wind power and requires careful regulation to ensure sustainable use.

Solar and wind both present huge potential, and they will be heavy players in the energy mix if Australia is to effectively decarbonise according to schedule. The good news is that solar and wind energy are trending in the right direction. Solar energy generation experienced a 42% increase in Australia over the past year while wind generation grew by 15%. That trajectory is set to continue as the development of Renewable Energy Zones progresses towards construction of thousands of megawatt solar and wind farms over the coming decade. Solar and wind are not only clean energy sources — they are also the lowest cost. Introducing more solar and wind capacity presents an excellent way for Australia to decarbonize while driving down energy costs.

In addition to utility-scale power, solar still has immense potential at the residential and commercial level. Solar provides Australians with the lowest levelized cost of energy. Beyond serving as a cheap, reliable, and clean energy source, residential solar offers benefits of distributed energy. It alleviates pressure on the larger grid, reduces the need for centralized power stations and increased capacity of transmission lines.

In some states, electricity generation contributes a significant portion of carbon emissions. In Victoria, for instance, half of all carbon emissions come from generating electricity. By transitioning from fossil-fuel based electricity to clean, renewable power sources, Australia can make considerable progress towards a net-zero emissions economy.

Renewable energy sources provide extensive benefits, yet one thing that becomes necessary for the reliable operation of a clean energy grid is heavy-duty energy storage.

Energy Storage — Long-duration Storage & Hydrogen

Energy storage cannot be overlooked in the energy mix of the future. Long-duration storage is a novel concept in the realm of utility-scale energy supply, with pumped hydro the only form used at scale. Hydrogen is a very abundant element and can be used to store energy but generating it cleanly is currently expensive. One way or another, some form of heavy-duty energy storage is critical for an energy grid dominated by intermittent energy sources like wind and solar.

Even though solar power is fairly predictable, we cannot control the coming of night, just as we can’t control how hard the wind blows onto wind farms. These factors highlight the importance of heavy-duty electricity storage which will be needed to supply electricity when direct supply is not available, such as at night or on windless days. Storage will also be needed to receive excess electricity so as not to destabilise the electric grid. Therefore, energy storage is important for both reliable electricity delivery and the smooth operation of an electricity grid powered by solar and wind.

There have been impressive advancements with lithium-ion battery technology, but that technology is best suited for emergency backup or peak-demand shaving due to the fact that lithium-ion batteries cannot deploy maximum output for more than 4-8 hours. Recent research has shown pathways to more environmentally friendly and cheaper battery storage for electricity.

There are a number of companies looking to solve the long term storage problem, which has led to the development of some innovative technologies and processes. One company that is emerging with promising technology is Form Energy, which has stated that its essential process involves the rusting and un-rusting of iron. In October 2020, a coalition of community choice aggregators in California, US — a progressive state that has repeatedly pushed the envelope on US environmentalism — released a request for proposals for 500 megawatts of long-duration storage capacity. This is a hallmark move for the industry, for once this problem is solved, it will make possible the development of a 100% clean-energy electric grid.

Hydrogen presents another solution to long-duration storage. Green hydrogen results from using clean energy sources to power the electrolysis of water to separate its oxygen and hydrogen constituents. This green hydrogen can then be deployed later in a gas turbine or fuel cell to generate electricity.. Some of the drawbacks of hydrogen are its high burning temperature and its low volumetric-energy density, unique qualities that will have to be considered when integrating it into existing energy infrastructure.

Hydrogen is not currently cost-competitive as a general energy source and has a large cost gap to overcome. Innovation, time, and effective market mechanisms will be important to make hydrogen a more viable option. This is crucial, as hydrogen will undoubtedly have an important role in providing long-duration energy storage within a clean energy grid.

Green Hydrogen Economy — Hydrogen to Tackle Hard-To-Abate Sectors

For those hard-to-abate sectors — heavy industry and heavy-duty transport which contribute roughly 30% of global CO2 emissions — there is significant opportunity for hydrogen to step in where electrification seems unfeasible.

Chemical feedstock — Hydrogen is already widely used as a chemical feedstock for many industrial processes, such as oil refining and ammonia production. Although hydrogen is extremely abundant, it’s not found in nature as an isolated element. Hydrogen must be extracted from compounds in an energy-intensive process and unfortunately, most of the hydrogen in Australia (and the rest of the world) is extracted from fossil fuel sources, resulting in carbon emissions. Because it’s produced from fossil fuel sources, it is called grey hydrogen. By replacing grey hydrogen with green hydrogen, Australia can decarbonise processes that are already heavily hydrogen dependent.

Steel manufacturing — Steel is a primary material used in construction, manufacturing, and transport. Manufacturing steel typically involves using carbon as a reducing agent to remove oxygen from iron ore — a process that creates CO2 emissions. This emission heavy process could be significantly decarbonised by replacing carbon with green hydrogen as the reducing agent.

Apart from serving as the reducing agent, hydrogen can also be the fuel source to generate the high process heat needed for steel production.

A steel production process using green hydrogen as the fuel source and reducing agent is currently being developed in Sweden with the aim of developing a commercial scale process for fossil-free steel around 2026. The first batch has already been produced in the pilot plant.

Transportation fuel — Hydrogen can play a role in aviation and long-haul shipping. Given its drawbacks, it seems unlikely that pure hydrogen will be widely adopted for commercial aviation. Airports would need to build new airport infrastructure to accommodate hydrogen storage. The low energy density of hydrogen gas means that using it as a fuel source aboard planes would require heavy and complex storage and an increase in the size of aeroplanes. Considering these costs it seems much more likely that hydrogen will be used as a precursor ingredient to produce synthetic jet fuel.

Shipping, on the other hand, doesn’t encounter the same problems as aviation when facing hydrogen’s low energy density. By using green hydrogen to power gas turbines or fuel cells, the shipping industry can drastically reduce its greenhouse gas emissions.

A 100% clean-energy economy requires a radical transformation of both demand-side and supply-side behaviour. While there is still a need for innovative development to fully realize this future energy mix, many technologies are already available today. Through energy efficiency improvements, electrification, and the adoption of renewable energy, businesses and organizations can make leaps toward reaching their own decarbonisation goals… achievements that will play into the broader narrative of Australia’s journey to net-zero emissions.

With low carbon technologies and solutions available today, it requires the will of people and businesses to create Australia’s energy future — a future that will establish economic prosperity, energy security, and a thriving legacy for our country.

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