Resource use efficiency in food chains Priorities for water, energy and waste opportunities Report to Department for Environment Food and Rural Affairs (Defra) Restricted Commercial AEAT/ENV/R/2457 (ED05226) Issue Number 1 January 2007 Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Title Resource use efficiency in food chains Priorities for water, energy and waste opportunities Resource use efficiency in food chains Priorities for water, energy and waste opportunities Customer Department for Environment Food and Rural Affairs (Defra) (Sustainable Farming and Food Sciences Division, and Food and Drink Industry Division) Customer reference WU0103, Contract reference number CSA 7107 Confidentiality, copyright and reproduction This report is the Copyright of Department for Environment Food and Rural Affairs (Defra) and has been prepared by AEA Technology plc under contract to Defra dated 11 May 2006. The contents of this report may not be reproduced in whole or in part, nor passed to any organisation or person without the specific prior written permission of Defra. AEA Technology plc accepts no liability whatsoever to any third party for any loss or damage arising from any interpretation or use of the information contained in this report, or reliance on any views expressed therein. File reference M:\Projects\Defra\Defra Policy Support\Defra Food Chains Project\Defra Food Chains Reference number AEAT/ENV/R/2457 (ED05226) Final Report (Issue 1) AEA Energy & Environment The Gemini Building Fermi Avenue Harwell International Business Centre Didcot OX11 0QR t: 0870 190 6533 f: 0870 190 6318 AEA Energy & Environment is a brand of AEA Technology plc AEA Energy & Environment is certificated to ISO9001 and ISO14001 Authors Name Approved by Name Prab Mistry*, James Cadman, Simon Miller, Steve Ogilvie, Mike Pugh * Project Manager Geoff Dollard Signature Date AEA Energy & Environment 15 January 2007 iii Resource use efficiency in food chains Priorities for water, energy and waste opportunities iv Restricted – Commercial AEAT/ENV/R/2457 (ED05226) AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Resource use efficiency in food chains Priorities for water, energy and waste opportunities Executive summary Defra commissioned AEA Energy & Environment to undertake scoping studies to identify opportunities for improving resource use efficiency, and for reducing waste generation in key parts of the food production chain, comprising agricultural production, manufacturing, wholesale distribution and retail. The studies are intended to inform Defra’s Sustainable Farming and Food Sciences and Food and Drink Industry programmes; providing a prioritised list of potential research projects that would provide cost-effective ways to encourage reduction of water and energy consumption and waste generation within the Food production chain. The scoping studies are limited to consideration of resource stream opportunities in the following parts of the food production chain: • • • • Water-specific opportunities in the food processing industry. Energy-specific opportunities in food processing, distribution and retailing. Waste-specific opportunities in food production, processing, distribution and retailing. Integrated and synergistic opportunities covering two or more of the resource streams within the food production chain, as defined (see Section 2.1). Little is known, collectively, about current energy and water usage and waste production in the food production chain. It became apparent early in the study that there was a dearth of real data with which to map resource flows with any confidence. The challenge has therefore been to identify areas within the food production chain where resource use efficiency might be cost-effectively improved, without the benefit of a firm evidence base. Opportunities for resource efficiency in the food production chain may be characterised as: • Low cost, often short-term opportunities: including basic process controls, management focus and education and awareness programmes. • Medium-cost opportunities: usually comprising retrofitting of solutions. • Long-term opportunities: primarily examining the dynamics and solutions involved in moving the sector as a whole towards application of more appropriate, better or best available technology and associated techniques. There are numerous constraints and barriers to realising these opportunities, including, principally: • An inherent reluctance to change, driven by the higher priority to produce products to rigorous quality and hygiene specifications in a market of narrow margins. • The relative insignificance of the current cost to businesses of resource consumption/waste management. • Current lack of public/government pressure to reduce resource use. The study has identified more than 40 potential projects across the three resource streams, which may broadly be categorised as covering: • • • • Provision of management tools and support. Enhancing the take up of existing technologies and techniques. Development of emerging technologies. Encouragement of response to consumer demand for change. In the absence of hard numbers, a qualitative basis for prioritising the potential projects has been developed, in terms of their anticipated risk of failing to deliver expected (but un-quantified) resource savings. The report also recommends, as a matter of priority, that baseline studies be initiated to obtain essential data on current resource consumption/waste production within sub-sectors of the food and drink industry, on which to base the justification of the R&D programme, and against which to measure success of initiatives to improve resource use efficiencies. AEA Energy & Environment v Resource use efficiency in food chains Priorities for water, energy and waste opportunities vi Restricted – Commercial AEAT/ENV/R/2457 (ED05226) AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Resource use efficiency in food chains Priorities for water, energy and waste opportunities Table of contents Executive summary.................................................................................................. v 1 Introduction ...................................................................................................... 1 1.1 1.2 2 Study approach ................................................................................................ 3 2.1 2.2 2.3 2.4 2.5 3 3.2 3.3 Water use data ............................................................................................................... 11 3.1.1 Overview.............................................................................................................. 11 3.1.2 Total and regional water use ............................................................................... 12 3.1.3 Data on potential reductions in water use ........................................................... 14 Techniques and technologies for water saving ......................................................... 15 3.2.1 Processes that use water in the F&D industry .................................................... 15 3.2.2 Techniques and technologies.............................................................................. 15 Prioritisation of water projects..................................................................................... 16 Energy opportunities ......................................................................................20 4.1 4.2 4.3 4.4 5 Overall scope and methodology .................................................................................... 3 Approach to mapping of resource flows....................................................................... 4 Identification of opportunities ........................................................................................ 5 2.3.1 Types of opportunity.............................................................................................. 5 2.3.2 Barriers to implementation .................................................................................... 5 2.3.3 Key stakeholders ................................................................................................... 6 Identification of potential projects ................................................................................. 7 2.4.1 Turning opportunities into specific projects ........................................................... 7 2.4.2 Strategic instruments............................................................................................. 7 Approach to prioritisation of projects ........................................................................... 8 Water opportunities ........................................................................................11 3.1 4 Background ...................................................................................................................... 1 Format of the report ........................................................................................................ 2 Energy use data ............................................................................................................. 20 Techniques and technologies for energy saving ....................................................... 22 Current support ............................................................................................................. 23 4.3.1 Support from the Carbon Trust............................................................................ 23 4.3.2 Carbon Trust’s Applied Research Programme ................................................... 23 4.3.3 Short to medium-term opportunities .................................................................... 24 Prioritisation of energy projects .................................................................................. 25 4.4.1 Short to medium term.......................................................................................... 25 4.4.2 Longer term projects ........................................................................................... 26 4.4.3 Summary ............................................................................................................. 28 Waste opportunities........................................................................................31 5.1 5.2 5.3 Waste data ...................................................................................................................... 31 5.1.1 Agricultural waste ................................................................................................ 31 5.1.2 Waste from the food processing industry............................................................ 33 5.1.3 Distribution and retail waste ................................................................................ 36 Techniques and technologies for waste management.............................................. 37 5.2.1 Introduction.......................................................................................................... 37 5.2.2 Waste minimisation/prevention ........................................................................... 38 5.2.3 Re-use ................................................................................................................. 40 5.2.4 Recycling ............................................................................................................. 41 5.2.5 Energy recovery .................................................................................................. 42 5.2.6 Disposal............................................................................................................... 44 Prioritisation of waste projects .................................................................................... 45 AEA Energy & Environment vii Resource use efficiency in food chains Priorities for water, energy and waste opportunities 6 Integrated opportunities .................................................................................47 6.1 6.2 6.3 6.4 6.5 7 Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Introduction .................................................................................................................... 47 Baseline studies ............................................................................................................ 47 6.2.1 Central Government data on resource efficiency in the F&D industry ................ 47 Multi-stream opportunities ........................................................................................... 48 6.3.1 Techniques and technologies.............................................................................. 48 6.3.2 Consumer pressure............................................................................................. 48 Projects for multi-stream resource reduction ............................................................ 49 Prioritisation of integrated projects and key recommendations .............................. 51 Summary and conclusions.............................................................................53 7.1 7.2 7.3 Summary......................................................................................................................... 53 Conclusions ................................................................................................................... 59 Glossary of abbreviations............................................................................................. 60 Appendix 1: Background information....................................................................62 Appendix 2: Example sector profile.......................................................................66 Appendix 3: Water saving techniques and technologies.....................................81 Appendix 4: Water data...........................................................................................86 Appendix 5: Energy saving techniques and technologies ..................................88 Appendix 6: Energy data.........................................................................................90 Appendix 7: Waste data ..........................................................................................93 viii AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) 1 Introduction 1.1 Background Resource use efficiency in food chains Priorities for water, energy and waste opportunities In 2002, the Government’s Strategy for Sustainable Farming and Food: Facing the Future, set out how industry, Government and consumers could work together to secure a sustainable future for farming and food industries. In April 2006, Defra published a document The Food Industry Sustainability Strategy (FISS), which built on the earlier work and set out the key priority areas for action beyond the farm gate. It added value by ensuring that all parts of the food chain are encouraged to improve their sustainability and adopt best practice under an industry-wide framework. This is particularly important given the significant environmental and social impacts for which the sectors concerned – food manufacturing, retailing, wholesale and food service – are responsible. The FISS quantifies these impacts, indicating that the UK’s food industry accounts for: • About 10% of all industrial use of the public water supply. • About 14% of energy consumption by UK businesses. • About 10% of the industrial and commercial waste stream. Further background information is provided in Appendix 1. In support of the FISS, Defra set up a range of programmes to inform programmes in the Sustainable Farming and Food Sciences (SFFS) Division. The aim of the programme was to: • Enable those through the food chain to make better use of resources and to reduce waste. • Achieve this through greater use of existing technology and through the development of new technologies. • Engage fully with stakeholders to ensure the research programme is complementary to all related work, is relevant to the needs of the industry and can be translated into measurable improvements. To meet the aims of the programme, Defra commissioned AEA Energy & Environment to undertake scoping studies to identify opportunities for improving resource use efficiency, and for reducing waste generation throughout the food production chain. A number of other ongoing studies are focused on parts of the food chain, and thus the scope of this study was limited to: • Water use in food production (excluding agriculture). • Energy use in food production (excluding agriculture). • Waste generation through the food production chain (including agriculture). The areas of the food chain covered by each resource stream are more fully defined in Section 2. The general objectives of the project and the technical and scientific aims of the research are: • To outline a broad assessment of the UK food and drink (F&D) industry resource consumption with respect to its food production chain, sectors and geographical regions and confirm the full work programme as part of the project inception. • To review and assess food sector sizes, growth trends and to resource-map food chains by sector and geographical areas. • To identify opportunities for reducing water consumption in food processing (excluding agriculture). • To identify opportunities for reducing energy consumption in food processing and retail (excluding agriculture). • To identify opportunities for reducing waste throughout the food production chains. • To collate all opportunities (from C, D and E above) and further identify ‘integrated opportunities’ that maximise reduction of resource use. AEA Energy & Environment 1 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Restricted – Commercial AEAT/ENV/R/2457 (ED05226) This report forms the final deliverable of the project entitled: Scoping studies to identify opportunities for improving resource use efficiency and for reducing waste through food production chain (WU0103). The study has been undertaken in two parts. The first was based on mapping of water, energy and waste flows in food chains. The second part was based on the identification of opportunities for reducing water use, energy use and waste generation throughout the food production chains, and the 1 formulation of research projects that might support their implementation. Little is known, collectively, about current energy and water usage and waste production in the food industry. Therefore, one of the first tasks of the study was to assess the extent of information 2 available within those areas of the food chain covered by these studies. A report was prepared at the commencement of the studies, which generally confirmed the paucity and low quality of information in many areas. Defra and the food industry have created action plans based on the headline targets in the FISS. Industry-led Champions Groups have been established to identify where progress towards meeting these targets can be made. These groups are examining best practice, looking at ways of working and identifying barriers that may discourage the industry from behaving in a more sustainable way. The scoping studies covered in this report provide support to these groups, and presentations were made to three of the FISS Champions Groups. Feedback from these and other sources has enabled the study team to focus its attention to address areas of highest priority. 1.2 Format of the report The report first provides a discussion on the approach and methodology used in undertaking the studies, highlighting the issues related to the characterisation of the food industry sectors, the identification of opportunities for bringing about resource use efficiencies, and developing a basis for prioritising research projects (Section 2). The report then considers opportunities for achieving resource efficiencies (and barriers to their implementation) in each of the three resource streams – water, energy and waste (Sections 3, 4 and 5 respectively) – and potential benefits in two or more of these areas derived from single interventions (Section 6). Each of these sections then identifies potential projects (such as studies, R&D, demonstration) that might move these opportunities towards implementation and assigns a risk rating to each for their successful outcome. The four sections each conclude with a listing of the identified research projects prioritised by these risk ratings The report then ends with a summary and principal conclusions about the way forward. Throughout this report, reference to ‘food’ should be interpreted to cover, where appropriate, food and drink and ‘food chain’ to cover agricultural food production, processing, distribution and retail. Appendices to this report provide background information and data compiled as part of this study. 1 2 ‘Research Projects’ include any work that needs to be undertaken, prior to implementation. Data Availability Report, 31 May 2006 2 AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Resource use efficiency in food chains Priorities for water, energy and waste opportunities 2 Study approach 2.1 Overall scope and methodology Food production and the UK supply chain is a complex web of resource flows from farm to consumer. For the purpose of this study we have divided the supply chain into discrete units for consideration. Figure 2.1 shows these units (with linking arrows representing transportation) and the scope of study that has been undertaken. Figure 2.1 Schematic showing the scope of resource stream considerations WASTE ENERGY WATER AGRIC. PRODUCTION FOOD PROCESSING DISTRIBUTION & RETAIL 3 Food transportation is a significant issue in its own right and is not part of this project. In addition, resource management and behaviour of consumers (including restaurants and other catering establishments) are beyond the scope of food production and were therefore excluded from this study. The study was desk-based, with research based on gathering and analysing data available from open literature as well as from sector associations (listed in Appendix A1; Table A1). In addition, knowledge of industrial processes, sectors, market as well as technical issues in water efficiency, energy efficiency and waste minimisation has been used to derive a recommended and structured programme of projects that Defra could take forward. The integrated nature of resource use in food production lent itself to a standardised approach to analysing resource flows. These data need to be comparable between sectors so as to develop an overview of the opportunities. The overall approach to the project was to undertake data gathering and assessment in a combined exercise for all three resource streams (water, energy and waste), before separately identifying resource conservation opportunities, as illustrated in Figure 2.2. Where an identified opportunity would impact favourably on more than one stream its benefit would be enhanced. Therefore, such ‘integrated’ opportunities were likely to be more attractive to industry. It became apparent early in the study that there was a dearth of real data with which to map resource flows with any confidence. Therefore, the challenge was, from the opportunities identified, to identify a prioritised programme of research projects, for support or actioning by Defra. Sections 2.2 to 2.5 set out the approach taken in mapping resource flows, identification of opportunities and projects and their prioritisation. 3 The Validity of Food Miles as an Indicator of Sustainable Development a study by AEA Technology Environment commissioned by Defra, July 2005; http://statistics.defra.gov.uk/esg/reports/foodmiles/default.asp AEA Energy & Environment 3 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Figure 2.2 Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Overall approach to examination of resource use opportunities (A) Project inception and sector scoping (B) Mapping resource flows (by sector, regions) (C) Water opportunities (D) Energy opportunities (E)Waste opportunities (F) Integrated opportunities It is worth noting that many of the issues covered by this project are linked to the key areas of the Integrated Pollution Prevention and Control, regulated by the Environment Agency, through the PPC Regulations 2000 (eg waste minimisation and effective management, water use and energy use). Although these Regulations apply to around only 400 company sites, ‘recent’ impact of the Regulations on these companies provides an indication as to whether lessons could be transferred to the whole of the food industry. 2.2 Approach to mapping of resource flows The food chain comprises agricultural production, manufacturing, wholesale distribution and retail. An 4 estimate of the separate businesses involved in the UK food chain is 300,000, which are represented by around 50 sector associations, of which the Food & Drink Federation (FDF) represents a significant proportion of the manufacturing businesses. Since there are limited centrally published data on resource use in the F&D industry, the most effective approach to supplementary data gathering was thought to be by direct approach to the FDF and other sector associations. To present findings on resource flows, the F&D sector needed to be subdivided in some way. The SIC code breakdown provides a nationally recognised basis: the F&D processing industry being covered by SIC code 15. The principal sub-sector divisions are: 15.1 - Production, processing and preserving of meat and meat products. 15.2 - Processing and preserving of fish and fish products. 15.3 - Processing and preserving of fruit and vegetables. 15.4 - Manufacture of vegetable and animal oils and fats. 15.5 - Manufacture of dairy products. 15.6 - Manufacture of grain mill products, starches and starch products. 15.7 - Manufacture of prepared animal feeds. 15.8 - Manufacture of other food products. 15.9 - Manufacture of beverages. However, while this breakdown was appropriate for certain data, the SIC code classification is not congruent with the representation of the industry’s sector associations. As such, the approach taken was to seek information from the sector associations and to integrate the data to the first digit SIC codes above. 4 Derived from FISS 2006 4 AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Resource use efficiency in food chains Priorities for water, energy and waste opportunities To supplement published data on resource flows and information on issues related to resource use efficiency, standard ‘sector profiles’ were developed in draft for discussion with key sector 5 associations . These profiles summarised available published information and pointed to gaps in information. Recipients of the profiles were invited to comment on each of a number of statements therein, as to whether they were: • Consistent with their own understanding. • Different to their own understanding (and, if so, in what way). • The respondent had no information on which to base a comment (the ‘don’t know’ option). An example sector profile is given in Appendix 2. Recipients of the profiles were interviewed either by telephone or face to face to gather information about their sector’s resource use and other related matters. In many areas, the sector profiles presented opinions for comment, particularly with regard to water and waste, where hard data were most notably absent. This encouraged dialogue with the sector associations and industry champions, but considered responses were generally limited and the view was taken, in view of the project programme, not to pursue this line of enquiry further. 2.3 Identification of opportunities 2.3.1 Types of opportunity Opportunities for resource efficiency in the food production chain may be characterised as: • • • Low-cost, often short-term opportunities: including basic process controls, management focus and education and awareness programmes. Medium-cost opportunities: usually comprising retrofitting of solutions. Long-term opportunities: primarily examining the dynamics and solutions involved in moving the sector as a whole towards application of more appropriate, better or best available technology 6 (BAT) . and associated techniques. These opportunities would be encouraged by a range of drivers, including: • • • • • Consumer demand for resource efficiency (eg packaging). Rising energy and water costs. Rising costs of waste disposal. Availability of new technologies. Legislative pressures. A wide range of such opportunities were identified for each sub-sector, for each resource stream and included in the draft sector profiles for comment. Unfortunately, the response from industry representatives was generally limited. Where an opportunity had the potential to benefit more than one resource stream, this was noted and flagged as an integrated opportunity. Other opportunities were identified that would result in resource use efficiencies generally through the application of consumer pressure down the food chain. 2.3.2 Barriers to implementation In food manufacturing, product quality, safety and hygiene standards are top priority concerns for managers of any production facility. Resource use efficiency issues are of secondary concern, primarily because the cost of energy and water still represent a rather small proportion of the overall 5 17 sector associations, identified in Appendix 1, were approached, and issued with one or more of the draft sector profiles prepared, as relevant to their member companies. Some of the major retailers were also sent retail sector draft profile. 6 This is a relative term used, to provide an impetus on continuous improvement, in the PPC Regulations and is elaborated on in food sector guidance documents from the Environment Agency and the European Bureau of Integrated Pollution Prevention and Control (EIPPCB). AEA Energy & Environment 5 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Restricted – Commercial AEAT/ENV/R/2457 (ED05226) manufacturing cost (cost of energy is around 2% but rising and the cost of water is around 1%). The relatively low impact of resource costs in production has meant that the industry, in general, has been reluctant to take steps that might impact on its product quality. However, in some of the food sectors the profit margins are equally small. Barriers to the adoption of new technology, which could reduce water use, energy use and waste production during processing therefore include: • • • • • • • Inherent reluctance to change when attempting to produce products to rigorous quality and hygiene specifications in a market of narrow margins. Lack of investment capital for new equipment. Sunk costs in existing technology. 7 Product price vs environmental protection conflict. Price tends to win every time . Lack of public/government pressure to reduce resource use. Data quality - difficult to obtain robust data on resource consumption (especially from SMEs – which make up a large part of the industry) SMEs and resource constraints - with the general trend for an increased proportion of larger companies, some smaller sites are being forced to close because they are unable to benefit from the economies of scale enjoyed by larger sites. SMEs are generally resource constrained and they don’t have the manpower to investigate or even have time to implement water-, energy- or waste-related saving opportunities. Other factors to consider are the seasonality, nature and scale of operations that may prevent some of the opportunities to be implemented readily. A wide range of such barriers and constraints were identified for each sub-sector, applicable to each resource stream, and were included in the draft sector profiles for comment. Unfortunately, no feedback was received from sector associations on the barriers and constraints identified. Nevertheless, these risks to successful implementation of resource saving opportunities that these barriers and constraints might pose were fully recognised in assessing research priorities for specific projects. 2.3.3 Key stakeholders Implementing resource efficiency measures will involve many organisations as well as the companies and personnel involved therein. The following list is not exhaustive: General: Defra, Department of Trade and Industry (DTI), sector associations (SA), Knowledge Transfer Networks (KTNs), special interest groups (SIG), Market Transformation Programme (MTP), consultancy organisations, equipment manufacturers, equipment suppliers and consultants. Water: Envirowise, Water companies, Waterwise. Energy: The Carbon Trust. Waste: Waste Resource Action Plan (WRAP), National Farmers Union (NFU), National Industrial Symbiosis Programme (NISP). Any project to improve resource utilisation, at its inception, needs to ensure that relevant parties are involved and that its ultimate beneficiary(ies) would implement the associated opportunities at the appropriate time. 7 Food & drink sector spent £500 million on environmental protection (2002) against a total consumer spend on F&D of around £140 billion (Defra/FDF study on Environmental Impacts of the F&D Industry. 6 AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Resource use efficiency in food chains Priorities for water, energy and waste opportunities 2.4 Identification of potential projects 2.4.1 Turning opportunities into specific projects Having identified a range of opportunities, it was then necessary to consider what steps would be needed to cause them to be realised. Specifically, consideration was given to the type of intervention that might be initiated through Defra’s SFFS and other Divisions Programmes. Potential research projects to target resource use efficiency within the F&D industry fall essentially into the three main categories identified in Section 2.3.1, namely: • • • Management tools, support and process optimisation. Technology implementation related to process improvement. Technology development that often leads to process change(s). Management tools and support include education and awareness of the opportunities that are available to reduce resource consumption at little or no cost, and thereby to improve profitability. Another area would be better management information systems that provide data on current resource consumption/waste generation. This would imply the need to establish baselines on which to set improvement targets and appropriate monitoring programmes. Numerous technologies and techniques are available within the industry to reduce water and energy usage and to minimise the production of process wastes or to re-use or recycle certain waste streams. There are other tried-and-tested technologies, applied in other industrial sectors, which are not at present applied within the F&D industry, but which could lead to useful savings in resource use. Take up of these technologies could increase within the industry through a programme of information dissemination within the industry. Possible vehicles for this would include sector associations and government-funded industry support programmes such as Envirowise and Waterwise. There are a number of process-related technologies in various stages of development, some of which would have application within the F&D industry, that promise to provide solutions at significantly lower unit cost or higher reliability than conventional processes. In many instances, the associated water and energy consumptions and process wastes produced would be lower. For those food-related technologies that are at an advanced state of development, it may be appropriate to consider cofunding application research projects: pilot studies, case studies and the like. 2.4.2 Strategic instruments Policy or economic instruments are outside the scope of this project. However, we allude to areas where ‘creating the right environment’ could help to increase implementation of the measures that lead to greater resource use efficiency. Examples of those already in place and having a significant impact are: • • • Landfill Tax – introduced in 1996 to provide incentive for waste reduction, recovery and recycling. The rate of the tax was £15 per tonne in 2004/5 and will increase annually at £3 per tonne until it reaches £35 per tonne. The Producer Responsibility Obligations (Packaging Waste) Regulations – introduced in 1997, they implement the recovery and recycling targets given in the EU Directive on Packaging and Packing Waste. The targets set were to recover 60% and recycle 55% of the packaging wastes by 2008. Climate Change Levy (CCL) and Climate Change Agreements (CCAs) were formally started in 2001. The CCL is a levy on energy purchases with the aim of stimulating energy efficiency across sectors. CCAs enable companies to claim 80% discount on the levy provided they are progressing in line with their agreed energy efficiency targets. Along similar lines to above, the following could be considered: • Economic Instruments for Water Use - a scheme similar to Climate Change Agreement can be applied to water use in industry. The industry, including the food industry, will benefit. AEA Energy & Environment 7 Resource use efficiency in food chains Priorities for water, energy and waste opportunities • Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Tradable Permits for Organic Waste - in England, a system of tradable permits exists to reduce the amount of biodegradable waste sent to landfill. Local authorities (LA) in England have been allocated permits that allow them to landfill organic waste up to the number of permits they hold. To landfill more, the LAs need to purchase additional permits or face the possibility of a fine at the end of the fiscal year to the tune of £150/t landfilled, in excess of permits held. Better performance (ie permits in excess of the amount of organic waste landfilled can be sold to other LAs). It is possible that this scheme can be extended to the disposal of organic waste by all manufacturing companies. 2.5 Approach to prioritisation of projects The budget for this area of work is finite. Thus, it is necessary to prioritise the identified potential research projects that compete for this fund. Research projects may be prioritised on a number of factors including: • • • • • • • • Cost to Defra. Indicative cost of implementation. Likely take-up by industry and timescale to realisation. Potential benefit (in terms of the economic or environmental benefit to the nation) in its take-up by industry. Cost/benefit ratio. Potential application for other sectors. Level of innovation. Potential for industry-sponsored R&D. In the absence of data on current industry-wide consumption of all three resource streams, or the extent to which resource consumption may be reduced, it is not possible to assess quantitatively either the costs of, or the potential benefits that may be derived from, implementations associated with each of the potential research projects. At the current level of scoping of the potential research projects, their associated R&D costs are unquantified, and their potential for industry sponsorship (which would be indicative of the perceived benefits) is also unknown. Without further extensive research into other industry sectors, the potential for wider application in industry is similarly unquantified. Nevertheless, some basis for prioritising the research projects must be found on which to develop a shortlist of candidate R&D projects. Defra would not wish to invest in projects that may be expected to have a low expectation of take up within the F&D industry. ‘Likelihood of take up’ (which would reflect a judgement of potential benefit relative to cost) would therefore be a useful qualitative measure by which to assess the investment risk. A further measure, that would provide a proxy indication of acceptability, lead time to implementation and cost of development, would be the level of innovation involved to realise the resource saving. These two factors, subjectively evaluated, could be used to provide a basis for assessment of risk of failure of a research project to have a successful outcome. The objective of applying such an evaluation approach would be to favour projects that had a high likelihood of take up, but a low requirement for innovation, as indicated in the matrix below. 8 AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Resource use efficiency in food chains Priorities for water, energy and waste opportunities High Aim of research priorities Low Likelihood of take up ⇒ Figure 2.3 Risk matrix Low High Degree of innovation ⇒ Contributory characteristics that might be used to assess high, medium or low levels of likelihood of take up and innovation are indicated in Table 2.1 and Table 2.2. Table 2.1 High Medium Low Table 2.2 Low Medium High Definition of ‘Likelihood’ of take up Short-term payback Little or no investment Costs are mostly staff time Medium term payback technology or technique (2-5 years) Medium cost (that require approval of capital from senior managers) Demonstrates ‘environmental credentials’ of operator Medium term payback (2-5years) Requires large investment (that would require a feasibility study prior to any consideration by senior managers) Demonstrates clear ‘environmental commitment’ of the operator Definition of ‘Degree of innovation’ needed towards successful implementation Technique or technology applied with successful outcome in other sectors Ready for exploitation in food sectors Likely application although some work is required before operators will consider the application (of technique or technology) Considerable research, development or testing required before it can find route to implementation in the food industry The matrix in Figure 2.3 can be interpreted to group projects into a tool for assessment of investment risk (high, medium or low), with a rudimentary hierarchy of actions, as indicated below. AEA Energy & Environment 9 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Hierarchy of actions that lead to implementation of resource efficiency measures Likelihood of take up ⇒ Figure 2.4 Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Low risk 1: Target operators with focus on training and implementation Low risk 2: development and demonstration (with stakeholders) Med risk 1: High priority research areas Low risk 3: Training and awareness (with possible market instruments) Med risk 2: Development and demonstration (with possible market instruments) High risk 1: Watching brief Med risk 3: General awareness and information dissemination High risk 2: Watching brief High risk 3: Watching brief Degree of innovation ⇒ This methodology is used as a tool for classifying technologies and appropriate actions for Defra in the following sections on opportunities in water, energy and waste, and integrated (multi-stream) opportunities. 10 AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) 3 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Water opportunities In this section, water and wastewater opportunities are considered in the food chain with respect to industrial processing only (see Section 2.1). 3.1 Water use data 3.1.1 Overview Historically, water data for the F&D industry have been of limited availability and low granularity (ie data cannot be attributed to specific sites and processes). 3 8 Envirowise has calculated that the UK F&D sector water usage is currently 307 million m /year . This equates to 24% of the total water consumed by industry and commerce in the UK and nearly 5% of total water consumed in the UK. To set this consumption rate in context, Table 3.1 indicates how the water used by the F&D industry compares to other large water–using sectors. As can be seen, F&D is a major user of water. Table 3.1 Sector Annual water usage for a selection of large water-using industries 8 Textiles and leather Plastic and rubber Paper and board Hotels and restaurants Food and drink Electronics Chemicals Agriculture Annual water usage (millions m3) 63 83 155 138 307 241 273 742 9 The Ashact report for Envirowise sub-divides the F&D sector into six key categories - breweries, distilleries, dairies, soft drinks, meat production and ‘other’, the 307 million m³ of water is divided between the categories as shown in Table 3.2. Table 3.2: Water use by F&D sub-sectors Sub-sector Other Breweries Distilleries Dairies Soft drinks Meat Estimated volume (millions m³/year8) 172.7 35.2 25.9 39.0 27.5 7.2 The predominance of consumption by ‘other’ sub-sectors (66%), prevents the allocation of this demand to other sub-sectors, severely limiting the value of this analysis. However, more recent data are expected, as Envirowise has commissioned a report to gather data on water use in the sector, 10 which is expected to form a useful overview of the sector (expected to be completed by December 2007). This will be an update of the 2001 report, which was used in the initial development of the FISS. 8 9 Envirowise – EN368 – A Review of Water Use in Industry and Commerce The report does not state why, it can only be assumed that these are the major water consuming sectors of the food and drink industry Personal communication – Stuart Ballinger, Envirowise 10 AEA Energy & Environment 11 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Restricted – Commercial AEAT/ENV/R/2457 (ED05226) In terms of using SIC codes, the following data are available: Use, million m3 per year SIC Sector 15.1 Production, processing and preserving of meat and meat products 7 8 15.2 Processing and preserving of fish and fish products 6 11 15.3 Processing and preserving of fruit and vegetables Unknown 15.4 Manufacture of vegetable and animal oils and fats Unknown 15.5 Manufacture of dairy products 39 11 15.6 Manufacture of grain mill products, starches and starch products Unknown 15.7 Manufacture of prepared animal feeds Unknown 15.8 Manufacture of other food products Unknown 15.9 Manufacture of beverages 88.5 Total 25112 - 369 11 11 Extensive efforts have been made to gather more comprehensive and detailed data. For the SIC subsectors above, more extensive sets are available for SIC15.5 from Dairy UK and SIC15.9 from the British Beer and Pub Association (BBPA). The Dairy UK data were gathered from roughly half of its members through a collaborative data collection exercise with Envirowise; they are undertaking further data collection in 2006/7. The BBPA undertook a Utilities and Environment Survey in 2005, which builds on data collection over the previous 30 years. Moreover, the dairy and beverage data are gathered per unit production (litres in both cases), which enables benchmarking and measurement of improvement. 3.1.2 Total and regional water use Envirowise has also estimated the water usage for the F&D industry by region, as shown in Figure 3.1. 3 Figure 3.1 Summary of annual UK water use by water supply area (million m /year) 50 30 20 Folkestone West of Scotland North of Scotland East of Scotland Wales Northern Ireland Portsmouth Bournemouth Water Supplier Sutton South Staffs Essex & Suffolk Mid Kent South East Bristol Southern South West Three Valleys Yorkshire Anglian United Utilities Severn Trent 0 Wessex 10 Thames Northumbrian Million m3 / year 40 It is clear that the main areas of water use in the UK F&D industry are the NW of England (United Utilities), the Midlands (Severn Trent), East Anglia (Anglian) and Yorkshire (Yorkshire Water). The first two of these generally being under less water stress than the next two. 11 12 UK Food and Drink Processing – Mass Balance, C-Tech Innovation Ltd with contribution from Sustainable Technology Solution Ltd, 2004 Calculated from FISS document 12 AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Resource use efficiency in food chains Priorities for water, energy and waste opportunities 13 The following graphs depict trends in water source, usage and treatment in the F&D industry. However, it must be remembered that the sample size is relatively small. Figure 3.2 Sources of incoming water Figure 3.3 Treatment applied to incoming water 70 50 Mainswater Mainswater & Borehole Mainswater & River River Mainswater & Groundwater filtration chlorination boiler softening borehole-potable HS370 none 45 40 50 Percentage of usage percentage of source used 60 40 30 20 35 30 25 20 15 10 10 5 0 0 2000 2005 2000 Year 2005 Method or standard Figure 3.2 shows a trend between 2000 and 2005 of decreasing mains water use with a concomitant increase in private abstractions (borehole and river water). This will be due to rising water costs and the desire for a greater control of one’s own water supply and its quality. The treatment of incoming waters has changed dramatically between 2000 and 2005. It appears that whereas in 2000, 34% of use was not treated at all, in 2005 all water is treated in some way. For example, far more filtration is now performed, up from 5% to 45%. As noted above with regard to Figure 3.1, the extra levels to which incoming water is treated are a sign of more demanding needs to attain higher purity standards for process waters and, hence, the quality of the final product, before they are used in F&D production. The daily average water use for the F&D industrial sites has increased over the period 2000 to 2005 by roughly 10%, from 621 to 678 m3/day. However, the underlying statistics show that the range of 3 3 water use has decreased and narrowed: from 30 – 6,500 m /day in 2000, to 110–1,900 m /day in 2005. Although the average has risen, what is more interesting is that the range is significantly lower in 2005, indicating more efficient use of resources over the intervening five-year period though changes to processes, practices and equipment. Figure 3.4 clearly depicts the trend towards more on-site treatment of the wastewater effluent created by the F&D industry to save costs. This will be due to rising wastewater discharge costs levied by water utilities and the enforcement of more and tougher discharge consents to surfaces water by the Environment Agency. Figure 3.4 Proportion of wastewater treated in 2000 compared to 2005 60 50 2000 2005 % treated 40 30 20 10 0 none 50% or less 50%-99% 100% Amount treated 13 British Water Survey, December 2005, http://www.britishwater.co.uk/html/2005_06_survey_results.html AEA Energy & Environment 13 Resource use efficiency in food chains Priorities for water, energy and waste opportunities 3.1.3 Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Data on potential reductions in water use A large proportion of the water consumed in the F&D industry is used for cleaning and washing operations and is usually used on a once-through basis. This is primarily due to a lack of awareness and use of wide ‘safety margins’ to ensure hygiene standards are met. Total effluent production for the industry is cited at 20 million m3/year14. Typically, effluent from the sector has high biochemical oxygen demand (BOD) and chemical oxygen demand (COD) levels due to the high organic matter content. Issues relating to effluent can be sub-sector specific. For example, dairy effluent has a high fat content, in addition to high COD and BOD. Effluent from meat production can be pathogenically contaminated and also has a high fat content. The Envirowise Business Impacts on the Environment study (GG331) identified four sub-sectors that have the greatest impact on the water environment (in terms of consumption and effluent): Brewing. Dairy. Meat. Soft drinks. • • • • Attitudes and Opportunities Survey 2000, undertaken by Envirowise, identified that there is potential to make average savings of 5% within the sector through low and no-cost approaches to resource efficiency. Benchmarking studies undertaken by Envirowise have generated a number of water benchmarks for the F&D industry. These benchmarks can be used as a starting point to drive best practice in water reduction. Table 3.3 Water benchmarking data for the F&D sector Sector Bakery Brewing Confectionary Dairy Fish Fruit and vegetables Meat Pet food Poultry Soft drinks m3/tonne product 2 m3/m3 product m3/employee Other 56 7.3 3.3 164 14 7.8 5 2 197 857 260 20 m3/bird 3.5 To date, Envirowise has achieved reductions in water consumption of 1.5 million m3 and £910,000 in 3 cost savings, and reductions in effluent production of 850,000 m and £684,000 in cost savings. The reduction in water use achieved to date equates to 0.5% of the total water consumed by the sector. Due to the large variations in water use across the food and drink sector setting a target for water reduction for the sector as a whole is problematic. Targets for individual sub-sectors would be more suitable. Data taken from PPC returns show emissions grouped according to European Waste Catalogue. 16 Although these data are a small sample of the industry (around 90% of which consists SMEs ), it shows that around 10% produce sludge wastes generated by onsite treatment. These sites can be identified and figures of production compared against other sites not treating on site to investigate patterns, and to determine whether potential exists to promote onsite treatment to specific sites. 14 15 16 Scoping Study on Water and Waste in Food and Drink SMEs. Food Technology Centre, 1997. EN305 Attitudes 2000 - Attitudes and Barriers towards Improved Environmental Performance (Envirowise, 2000) Personal communication with NISP 16 th November 2006 14 AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Resource use efficiency in food chains Priorities for water, energy and waste opportunities Additional work on water use in the F&D industry is expected by Envirowise and by the Environment Agency (EA). The EA has pledged to complete its research ’to examine the impact of produce protocols on water use and land management, and to continue to work with farmers, food processors 17 and supermarkets to find ways to reduce the impacts of food production on the environment.’ 3.2 Techniques and technologies for water saving 3.2.1 Processes that use water in the F&D industry Table 3.4, although not an exhaustive list, outlines the main operations that consume water in the F&D industry: from when the food ‘raw’ materials enter the factory to when they have been processed into final products. This gives some perspective as to the very important role water has to play across all aspects of F&D production and starts to indicate where potential efficiencies and savings are possible. Table 3.4 Examples of key water using processes in the F&D industry Product preparation Processing Preservation Packing Equipment cleaning Site facilities Washing Mixing Freezing Canning Cleaning in place (CIP) Site maintenance Cleaning Steaming Heating Bottling Rinsing Vehicle washing Peeling Pumping/ transferring Boiling Washing Staff facilities Cutting Water-inproduct Sterilisation As can be seen, water is used for many functions at all stages throughout the processing of foodstuffs, which include cleaning the food, cooking it, preparation of containers and subsequent cleaning of equipment. 3.2.2 Techniques and technologies There are several techniques and technologies available for water efficiency, which come under the four generic headings of: • • • • Efficiencies - no/very low-cost ‘quick wins’. Efficiencies - technical solutions. Re-use and recycling - technical solutions. Effluent reduction and treatment. Table 3.5 gathers the main examples of techniques and technologies that come under these four headings. Outlines of each of the techniques and technologies identified in Table 3.5 are provided in Appendix 3. 17 Environment Agency Water resources for the future - annual review 2005 AEA Energy & Environment 15 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Table 3.5 Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Key water-saving techniques and technologies appropriate to the F&D industry Short term (no/low cost) Medium to longer term (medium to high cost) Efficiency – Management Efficiency - technical solutions Re-use and recycling – technical solutions Effluent reduction/treatment – technical solutions Training ‘Water pinch’ (process integration) Rainwater harvesting Pigging Good practice CIP optimisation systems Countercurrent rinsing Slurry dewatering/drying Metering and online analysers Mechanical seal water management Mechanical seal water management Electro-coagulation Raise awareness of Envirowise and water technology list (WTL) Pigging Membrane filtration Anaerobic digestion Floor washers Ozone/UV Online analysers Closed transfer equipment Vehicle washers Dosing equipment Closed transfer equipment UV/ozone Sand filters, dissolved air flotation 3.3 Prioritisation of water projects Through research and consultation, it has been possible to devise potential projects for water efficiency in the F&D industry. Though there are significant gaps in basic data on water consumption within the F&D sector, these research areas have been assessed for their risk of failure, using the methodology outlined in Section 2. Wtr 1: Water Efficiency Quick Wins: Data Collection Project To capture data on water use and water quality at various stages in the processing of food and drinks to benchmark the industry, improve knowledge of best practice by using meters and online analysers. The large water consumers and those with higher loads are key stakeholders, such as dairy and drinks manufacturers. This is not a new technology and thus is fairly low in terms of innovation. Uptake is perceived to be moderate as financial payback justification would need to be sought to initiate a monitoring and targeting project. Therefore, this is classified as a Low 3 Project: Training and awareness of metering, monitoring and targeting procedures. Wtr 2: Water Efficiency Quick Wins: Training and Awareness Raising / Best Practice This project would promote staff training and awareness of environmental issues, in particular water efficiency measures that can be easily implemented, such as: brushing waste away rather than washing, emptying drain traps before washing; and turning off hoses, significantly reduce water use and effluent loading. Ideally, it would be worked in alongside existing health and safety training and be given the same level of importance and credence for maximum effect. In terms of innovation, this rates low as it is a long-standing practice and easy to implement. The level of uptake is not only dependent on willingness to train staff even further but also on maintaining the knowledge through refresher courses and as such uptake is probably moderate, giving an overall rating of Low 3: Training and Awareness. 16 AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Resource use efficiency in food chains Priorities for water, energy and waste opportunities Wtr 3: Water Efficiency Technical Solutions: Process Integration Opportunities Project Process integration (‘water pinch’) is about assessing where efficiencies can be made across the whole food/drink processing line in a holistic way. By using data gathered on the various subprocesses, one can deduce where efficiencies could be made and thus save water. There are many case studies of this in the literature already. The technology is not innovative and the level of uptake is adjudged to be moderate so this project has been assessed as Medium 2: Development and demonstration, to show the advantages of process integration to those firms and sectors not already using it. Wtr 4: Water Efficiency Technical Solutions: – Process Cleaning There is scope within the F&D industry for increasing the use of technical water efficiency measures, especially in the field of cleaning process machinery. One such technology is cleaning-in-place whereby vessels and pipework can be automatically cleaned with water and detergents without the need for opening vessels or human contact. If the systems are optimised and greywater recycled for treatment for uses elsewhere in the plant then significant savings can be made. Even though this technique has been in use in the F&D industry for some two decades there is still potential for increasing its penetration further into the sector. A suitable project could be envisaged whereby the technology and its potential for savings could be promoted. The degree of innovation is thus low whilst the potential for uptake is believed to be relatively medium, giving a project appraisal of Low 3: Training and awareness. Wtr 5: Water Efficiency Technical Solutions: Pipe Cleaning – ‘Pigging’ Other cleaning methods exist in the F&D industry that also could enjoy greater uptake, such as pigging. This is a method in which pipes are cleaned out more efficiently using one of two main techniques, namely a solid pig (generally made of plastic, rubber or ice) or pressurised air. Using these methods enables more efficient cleaning of pipes between batch processes. The benefits are that reduced volumes of water are needed for rinsing, less detergent is needed and wastewater loads are decreased, whilst extra product is collected that would otherwise have been put to sewer in the wash water. The technique in general has been available for some time now, although there are continual improvements and refinements. Uptake depends on the processes involved and whether they are suitable for pigging. A demonstration project would work with industry to show the benefits of ice pigging, air vortex cleaning and describe the water and product savings that could be won: Medium 2: development and demonstration project. Wtr 6: Water Efficiency Technical Solutions – Product Cleaning There is scope for a project that engages both the F&D industry and the retail sector in improving the use of water saving measures in food cleaning operations. One such application that can be used for making better use of rinse water in the cleaning of fruit and vegetables for example is counter-current rinsing. In this process food products are progressively washed in cleaner water, whilst the greywater is re-used for washing dirtier food further up the cleaning process, rather than being disposed. Savings can be in the order of 40 – 50% of water used. The technology is not all that new while the uptake could well be high; Low 2: development and demonstration with sector associations. Wtr 7: Water Efficiency Technical Solutions: Recycling and Re-use There are many technologies available in the marketplace for re-using water, such as rainwater harvesting, greywater recycling and collecting wash waters for recycling. A project could be established to raise awareness of these technologies within the F&D industry, demonstrate their worth in saving water and money and encourage their use. The technology exists and would require some changes to manufacturing processes and as such is deemed to be of moderate innovation. Similarly, take-up is reckoned to be moderate as it will only be suitable for firms who can make use of rainwater and/or greywater in their processes, giving a rating of Medium 2: Development and demonstration. Wtr 8: Water Re-use and Recycling: Membrane Technology Promotion AEA Energy & Environment 17 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Membrane separation technology has many applications: for example it can be used for end-of-pipe cleaning of wastewaters so that they can be re-used elsewhere in the process or it can be used to purify raw materials to achieve the right level of solutes. Once installed, membranes can make financial savings for the process operator; by recycling wastewater to be used for other applications thus use reducing the need for as much clean water in whilst simultaneously reducing wastewater going to sewer that could potentially have high costs associated with high effluent loads. Industries with high water use and wastewater production, especially if these have high effluent loads (COD, SS) are most suitable to using membrane technology for reducing water use and costs (eg the dairy sector). As the technology is well established in the marketplace a development and demonstration project would be appropriate, focused on those industries applicable to membrane technology: Medium 2: Development and demonstration. Wtr 9: Water Effluent Reduction Solutions: Anaerobic Digestion Anaerobic digestion (AD), and ancillary process such as sludge dewatering and drying, are wellestablished techniques in the wastewater industry for treating solid sewage waste products. By doing so any waste products from food processing with potentially high pathogen levels are also rendered safer. Using such processes can save money in terms of disposal costs of waste solid material, either by disposing a more benign product or even the possibility of selling it on as a soil improver to agriculture. Furthermore energy costs can be reduced if the methane produced by the AD mechanism is captured and burnt as fuel. A project is envisaged whereby general awareness is raised in those sectors with suitable wastewater effluent loads and large enough volumes to make AD viable, such as dairy and meat sectors: Medium 3: General awareness and information dissemination. The projects described above have been mapped onto the risk assessment matrix in Figure 3.5 to show their relative degree of innovation and likelihood of uptake. Figure 3.5 Low 1 Mapping water projects onto the risk-prioritisation matrix Low 2 Med 1 Wtr 6 Low 3 Med 2 Wtr 1 Wtr 2 Wtr 4 Wtr 3 Wtr 5 Wtr 7 Wtr 8 Med 3 High 2 High 1 High 3 Wtr 9 Historically, water has been seen as a low-cost resource in comparison with other raw materials. It has always been widely available with low purchase and treatment costs. However, more recently, there has been a greater focus on resource efficiency, primarily with energy and waste due to the CCL and landfill tax, to name but two measures. Water resources are however becoming ever more pressurised both for industrial, commercial and domestic uses. Furthermore, as demand constantly rises, supply must increase to meet this, and water supply systems are getting closer to capacity in some areas of the UK. 18 AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Resource use efficiency in food chains Priorities for water, energy and waste opportunities The effects of increasing energy prices is having a knock-on effect on costs of water supply and treatment as these processes are energy intensive in themselves with associated costs being passed on to water customers. As the projects above describe, the main areas for reducing water demand lie in efficiency of use, recycling of wastewaters and the application of good housekeeping measures. By treating and then re-using wastewaters elsewhere within F&D manufacturing processes large financial savings can be made as well as the concomitant reduction in water consumption. Most of the technologies to enable this already exist and have done so for some years. What appears to be the barrier is the informed knowledge about these technologies: where they are appropriate, what they can achieve, what the cost implications are and how they can simultaneously benefit business and the environment, (ie some form of cost-benefit analysis). The projects outlined above are intended to go some way to achieving this. Projects for water efficiency can be summarised and ordered by the risk category shown in Table 3.6. Table 3.6 List of water projects Risk category Low 2 Low 3 Med 2 Med 3 Projects • Wtr 6: Water Efficiency Technical Solutions – Product Cleaning • Wtr 1: Water Efficiency Quick Wins: Data Collection Project • Wtr 2: Water Efficiency Quick Wins: Training and Awareness Raising / Best Practice • Wtr 4: Water Efficiency Technical Solutions: – Process Cleaning • Wtr 3: Water Efficiency Technical Solutions: Process Integration Opportunities Project • Wtr 5: Water Efficiency Technical Solutions: Pipe cleaning – ‘Pigging’ • Wtr 7: Water Efficiency Technical Solutions: Recycling and Re-use • Wtr 8: Water Re-use and Recycling: Membrane Technology Promotion • Wtr 9: Water Effluent Reduction Solutions: Anaerobic Digestion AEA Energy & Environment 19 Resource use efficiency in food chains Priorities for water, energy and waste opportunities 4 Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Energy opportunities In this section, energy opportunities are considered with respect to the following parts of the food chain: industrial processing, wholesale distribution and retail; see Section 2.1. 4.1 Energy use data 18 The current energy use within F&D manufacturing industry is estimated to be 126,000 GWh/year . However, that used in the whole of the food chain is considerably higher. This can be inferred tentatively from Figure 4.1, which depicts greenhouse gas emissions associated with food 19 manufacturing alongside those from agriculture, food transport , food-related emissions at home, in retail and catering. It should be noted that agricultural emissions include methane emissions from livestock: enteric methane emission and waste management. Figure 4.1 20 Greenhouse gas emissions associated within the UK food chain (Source: FCRN ) Catering 10% Retail 6% Home food related 14% Agriculture 50% Transport (UK) 9% Food manufacturing 11% 21 In the rest of this section, energy data have been presented mainly as ‘primary’ energy to allow a true comparison of the energy use – accounting for any losses through conversion processes and transmission. There is a general lack of published data on energy consumption. However, there is generally good data held by relevant food sector associations (which are not generally published) on energy use in 22 food manufacturing. These are collected as part of the CCAs that allow companies to benefit from 80% discounts on the CCL. There are eleven separate sectoral agreements covering the F&D processing industry, with the largest being that with the Food and Drink Federation (FDF), which covers approximately 50% of the industry’s energy use. In 2004, FDF undertook a study to review all 23 CCA data from the F&D industry , which was submitted as evidence as part of the consultations 18 Food Industry Sustainability Strategy (FISS), published by Defra, April 2006. Excludes food related emissions from distribution centres and mobile refrigeration. , Food Climate Research Network, October 2006. 21 Conversion factors are used for converting from delivered energy (as metered) to primary energy. For fossil fuels delivered to food production sites the conversion factor remains 1; however, for electricity the factor is 2.6 (ie primary energy = 2.6 x delivered energy). 22 Which are generally managed by the relevant sector association or their representative organisations. 23 Defra/FDF study on environmental impacts of the food and drink industry – Final report, October 2004. 19 20 20 AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Resource use efficiency in food chains Priorities for water, energy and waste opportunities leading to the publication of FISS, in April 2006. It is based on headline sectoral energy figures from the CCA data from the food sectors. This has formed the basis of the energy breakdown presented in this report. Importantly, this information has been used, together with an understanding of the industry, to arrive at the current energy use and energy efficiency potential in the different sub sectors. Figure 4.2 shows the energy use by different parts of the F&D processing industry categorised by SIC codes. It can be seen that beverages, dairy products and meat processing represent some of the largest identified energy using sections of the industry. Each of the SIC code classified sectors has more than one sector association (see Table A1 Mapping of F&D industry by SIC codes, industrial processing and trade associations); this is important to understand when considering any approach towards implementation of energy efficiency opportunities. Figure 4.2 Distribution of total energy use in F&D industry, by SIC code classification 15.9 Beverages 16% 15.1 M eat proc & prod. 11% 15.2 Fish products 2% 15.3 Fruit & vegetables 5% 15.4 Oils & fats 3% 15.5 Dairy products 12% 15.8 Other food products 34% 15.6 G rain m illing & prod 7% 15.7 Anim al feeds 10% An estimated split of energy use by energy-using process technology is shown in Figure 4.3 below. It can be seen that fossil fuel for use in boilers that supply steam for the process, dominates at 49%. Also high is the use of energy for other heating processes, drying, cooking and baking; both fossil fuel and electricity is used for this. Electricity is predominantly used for providing the processes with compressed air, refrigeration and for other processes that use motors for mixing and stirring. The distribution and retail sector scope has been limited to the large retailers and their distribution depots in so far as they relate to food products. The large retailers include ASDA, Co-op, Marks & Spencer, Morrisons (including Safeway), Sainsbury’s, Somerfield, Tesco and Waitrose. There seems to be an increasing focus on large centralised / regional depots both operated on contract and used by a number of companies or run by the large retailers, which appear to be state-of-the-art in terms of storage, logistical and computer software technology. Some of the warehouses and distribution centres are focused on particular product types and, where appropriate, temperature controlled (for chilled and frozen products). The relevant trade associations approached to acquire information on warehousing and distribution were: UK Warehousing Association; the Chilled Foods Association; and the Cold Storage and Distribution Federation. However, the required information has not been made available. Defra has carried out analysis of the energy use in the food retail and catering sectors, using the DTI 24 energy data , by examining energy consumption in the hotel and catering, retail and a number of other sectors. However, the findings show that at present it is not possible to separate out energy consumption values in the retail sector. As such, the data have been presented based on the 24 Presentation by Rocky Harris of Defra, at the FISS Champions Group meeting on Energy, 12 October 2006, Nobel House, Defra. AEA Energy & Environment 21 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Restricted – Commercial AEAT/ENV/R/2457 (ED05226) manufacturing sector, though some of the energy opportunities identified later would also apply to the storage, distribution and retail part of the food chain. Figure 4.3 Fuel use by technology - the UK F&D industry Refrigeration 6% Compressed air 2% Direct heating (ele) 8% Other motors 16% Boilers 49% Direct heating (fuel) 19% 4.2 Techniques and technologies for energy saving There are many techniques and technologies available for energy efficiency, most of which are targeted by the Carbon Trust under its energy surveys and products’ and other client offerings (see also Section 4.3.5). Table 4.1 lists the main technique and technology areas related to energy consumption in food manufacturing, distribution and retail. Table 4.1 Key energy utilising areas in manufacturing, distribution and retail of food Food manufacturing • • • • • • • • • • • • • (Energy management and M&T) Combustion, boilers & steam supply (including cooking, baking etc) Refrigeration (processing and stores) Buildings and services (Process control) Fans Stirring and mixing Compressed air Drying Pumps and motors Heating, ventilation & air conditioning (HVAC) Distilling Environmental protection Distribution • • • • • Transport (outside scope) Chilled storage HVAC Lighting Conveying, forklifts, etc Retail • • • • Chilled storage HVAC Lighting Cooking (bakeries, etc) There is a great deal of information available from the Carbon Trust that is designed to inform and encourage industry to implement energy efficiency in food manufacturing. The collection of 22 AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Resource use efficiency in food chains Priorities for water, energy and waste opportunities publications and the consultant’s knowledge of the F&D industry have been used to outline the scope of sub-sectoral energy efficiency opportunities. In this approach, energy management, and monitoring and targeting (M&T) have been regarded as underpinning techniques. 4.3 Current support The desire among the industry to reduce energy has undoubtedly increased since the introduction of the CCL and the establishment of CCAs in most of the F&D sectors. However, there are also other drivers at present that lead the industry towards energy efficiency: energy costs, EU Emissions Trading, Energy Performance Commitment (potentially for smaller operators in future) and corporate social responsibility (CSR) 4.3.1 Support from the Carbon Trust As mentioned above, the Carbon Trust already provides a focus on energy efficiency in the food industry, based on the following broad strands: • Activities focused on large companies under its Carbon Management service offering. • The Survey Products (including the Initial Opportunities, Assessment, Specific Opportunities Assessment, Detailed Surveys, Design and other advice and CHP advice). • Activities that engage with sector associations and other trade bodies nationally and in the regions under its Networks programme. • Supply of general information via the Web site, and through a Helpline and a range of publications. The CT also engages with industry and suppliers of equipment or services companies, primarily through: • Interest-free energy efficiency loans for SMEs (£5,000 and £100,000 to replace or upgrade existing facilities). • The Enhanced Capital Allowance scheme for energy efficiency products included in the Energy Technology List. 4.3.2 Carbon Trust’s Applied Research Programme Grant support for new technologies is provided by the Carbon Trust’s Applied Research Programme. It supports the UK businesses and research institutions in the development and commercialisation of ‘low carbon’ technologies that have the potential to reduce UK carbon dioxide emissions. The grants are required to be supplemented, with a minimum of 40% funding from industry or equipment developers. See: http://www.carbontrust.co.uk/technology/appliedresearch/default.htm As can be seen from above, the Carbon Trust is providing a range of support to the industry, including the businesses engaged in food manufacturing, distribution and retail. However, scope for specific assistance or targeted areas should be explored based on the areas later suggested in Sections 4.3.3 and 4.4.2. AEA Energy & Environment 23 Resource use efficiency in food chains Priorities for water, energy and waste opportunities 4.3.3 Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Short to medium-term opportunities The Carbon Trust currently provides a range of products to help manufacturing industry, including the food manufacturing, to identify and assist with the implementation of energy (and carbon) saving opportunities. Figure 4.4 is intended to indicate the likely technology areas for energy savings from the F&D sector companies. This has been derived by estimating the percentage of energy use in each sector and technology and then associating likely saving opportunities to a short list of the projects given in Table 4.2. In this approach energy management and M&T have been regarded as underpinning techniques and therefore they do not feature in the technology list. Figure 4.4 Short-medium term energy savings opportunities use by technology Distilling 2% Cooling systems 4% Boilers & steam 15% Pumps 7% Drying 7% Refrigeration 14% Compressed air 8% Stirring and mixing 9% Buildings 12% Fans 10% Process control 12% The chart above is particularly useful in identifying the current technology areas for the Carbon Trust. Other areas where energy resource efficiency and recovery would be enhanced are: • Improved efficiency of humidity control (impacting on sectors such as baking and malting) • Application of alternative processes for energy-intensive operations (eg using localised air delivery along conveyor belts to replace blast chilling after packaging or operating the whole area at a low temperature). Figure 4.5 shows the short to medium term opportunities that might be achieved by focusing on the technology areas within the F&D manufacturing industry only (those for distribution and retail could not be included due to lack of relevant data). 24 AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Figure 4.5 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Energy use and (Short-Medium term) saving potential by F&D industry sectors 7,000 Total Primary Energy (GWh) Saving potential (GWh) Primary energy (GWh/y) 6,000 5,000 4,000 3,000 2,000 1,000 929 781 521 520 497 452 424 400 379 325 317 278 270 217 195 194 177 153 142 126 113 Su ga rm B an ake uf ry ac tu re Am D bi a en ir tF y o C Br od on ew fe ct ing io ne ry I c Me e a c t Pe rea m t Fr A Fo ui nim od t& a s ve l fe ge ed t C abl ol es d st o Po r e M u illi lt r ng S y & pi pr rits od uc M ts O alti ils ng Bu lk R & fa H en ts an d dl ere 'g r & s Fi So Sto sh ft r pr drin oc k s es si ng - The chart suggests that the highest energy efficiency gains in the short to medium term might be made in the following (descending order) sectors: Industrial bakeries, Sugar manufacture, industrial dairies etc (see also Appendix 6, Table A5 Energy use and saving potential of F&D industry sectors). Overall, the suggested saving potential amounts to 12%. 4.4 Prioritisation of energy projects 4.4.1 Short to medium term Through research and consultation it has been possible to devise potential projects for energy efficiency in the manufacturing, distribution and retail parts of the food chain. These projects have been risk assessed, using the methodology outlined in Section 2.5, to understand their potential for impacting on energy use reduction. Ene 1: Boiler and Heat Distribution System – Education, Awareness and Practical Assistance Almost all of the sub-sectors in the F&D processing industry need some form of process heating. This is often supplied by on-site boilers. The boilers may be installed to supply hot water or steam (at various temperatures and pressures) depending on the process requirements. Canning, malting, baking and distilling sectors are some of the biggest users of steam. They use steam in cookers, roasters, baking ovens, dryers and evaporators. There is a range of support available from the Carbon Trust that the food companies can access. A review of the support provided to date would indicate if any change in direction of focus are required. The project risk is assessed as Low 1 as it is largely about assisting the industry with current knowledge and advice. Ene 2: Dissemination of energy performance enhancement techniques There have been several energy benchmarking studies for specific industrial sectors (industrial baking and dairy) that are based on the original Good Practice Guide (GPG352) An introductory guide to energy performance assessment – analysing your own performance. This approach also leads to effective monitoring and targeting system on site. To accelerate the uptake of the techniques involved AEA Energy & Environment 25 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Restricted – Commercial AEAT/ENV/R/2457 (ED05226) in energy performance assessment that operators can benefit from suggestion around ‘sectoral’ video is made that can introduce and illustrate the technique being applied on a site in the given sector. This should be started with the sectors where good case study exists. The project risk is assessed as Low 1: as it requires focus on practical but passive training alone. Ene 3: Refrigeration - Education, Awareness and Practical Assistance The F&D industry is one of the largest users of refrigeration technology. Many businesses within the sector will find that refrigeration costs make up a significant proportion of their energy bill. A recent survey, undertaken on behalf of the Carbon Trust, has shown that there are some 2,000 F&D manufacturing sites where refrigeration forms a vital part of the production process. The majority of the refrigeration plants provide freezing and chilling duties, and use about 50% of all electricity used at the sites. Without refrigeration these companies will not be able to meet the customers’ specifications on food products. Several recent projects have been taken to undertake development of the refrigeration technology and energy efficiency issues in the F&D sectors. However, continued assistance from the CT is much required, particularly towards practical assistance to the food manufacturing sites. The project risk is assessed as Low 1 as it is largely about assisting the industry with current knowledge and advice. Ene 4: Energy integration link to on-site (contracted) nitrogen supply services Many food-manufacturing sites use liquid nitrogen either for chilling/freezing purposes or for the production of inert atmospheres within packaging. The liquid nitrogen is either delivered by tanker (at large sites) or might be generated on site. On-site generation will usually be done as a contracted out service provided by a company such as BOC or Air Products, and will typically discharge waste heat to atmosphere. Research should be carried out to determine the scale of the issue in the UK, investigate scope towards productive use of waste heat produced by the on-site compression plant as well as determine the environmental benefits/disbenefits, using life cycle methodology, of the options of providing liquid nitrogen. The project risk is assessed as Low 2 as it would primarily be a desk study followed by a possible development and demonstration project. Ene 5: Options for fuel supply security in food manufacture Biofuels are generally defined as fuels made from biomass resources. The F&D industry also produces large quantities of biomass waste, which has the potential to supply a significant source of fuel or energy to the industry. The aim here is to examine options to secure energy supply in the production and supply of basic foods in the UK during the likely scenarios of energy shortage. The project risk is assessed as High 1 as it will require a wide-ranging and major research project. Ene 6: Application and demonstration of Sonic Wave Processing A novel technology known as ‘PDX Sonic’ (by the developer Pursuit Dynamics), has been applied at a brewery site, in association with the UK Brewing Research International. There is great interest from the brewing industry, as it seems to provide more efficient means of supplying heat to liquors. The developer claims to save operators time and money by heating, entraining, mixing and pumping mixture in a very efficient and effective manner – by accelerating steam to three times the speed of sound and sending a supersonic shockwave through the processing chamber. Savings of up to 30% energy are claimed for brewing applications. It is thought that the technique will be particularly suited to small breweries. The aim is to verify and demonstrate the application of PDX Sonic technology in brewery applications. The project risk is assessed as Med 2: as it has been demonstrated at experimental stage and the technology seems ready for application demonstration. 4.4.2 Longer term projects In the longer term, there is also likely to be scope for more radical opportunities. One example is changes to the mixing and dividing process within plant bread making. This could result in substantial energy savings, but which would be expensive to research and would require an overhaul of assumptions built up over many years as to the need for a certain level of energy expenditure during the mixing stage to ensure product quality. 26 AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Resource use efficiency in food chains Priorities for water, energy and waste opportunities In the same way as before potential projects are outlined. Ene 7: Challenging the principles of process design This project will require examination of the process requirements from first principles and will also require working alongside equipment designers and suppliers. Depending on the success of the outcome it may also require demonstration of the technology, before applications are adopted by the industry. The project risk is assessed as High 1: high priority research area. Ene 8: Direct firing of gas to supply process heat Direct firing of gas to supply process heat in industrial bakeries (instead of that via centrally generated steam). Some bakeries have adopted but scope could be wider. (Additional use of radio frequency for baking evenly is another possibility). Another example would be to investigate the feasibility of changing to direct-fired coppers in the brewing industry or ovens in industrial bakeries, with direct heating by gas. An initial survey of the scope of implementation will be required but once the applications are identified development and demonstration will be required. The project risk is assessed as Low 2: Development and demonstration with stakeholders. Ene 9: Scoping study to assess the introduction of anaerobic treatment at food manufacturing sites with aerobic treatment As water use minimisation strategies are applied at food processing sites, there will be instances where the effluent concentration increases (ie it will be less diluted). Many sites currently operate aerobic treatment plants, which require supply of air or oxygen, produce sludge and use a great deal of energy. However, as the concentration of pollution increases there will be circumstances where anaerobic treatment (digestion) becomes more attractive or becomes the first choice if they were considering a new effluent treatment plant. Besides reducing energy use and sludge production, anaerobic systems will produce methane rich biogas, a source of energy that can be utilised for process heat/electricity generation. The aim will be to undertake a review of wastewater treatment at food processing sites, with a particular focus on whether anaerobic treatment plants could replace existing aerobic treatments. This will be a desk study and any implementation will require a form of awareness among the companies that could benefit from this - hence risk scored as Low 3. Ene 10: Options for utilising methane from small-scale anaerobic digestion plants In the F&D industry many plants treat organic waste in an aerobic digestion plant. With measures in place for tightening of water usage and therefore more concentrated wastewaters, the scope for using of anaerobic digestion becomes more attractive (see Project Ene 9). However, in many cases the methane produced is likely to be in quite small quantities and therefore unlikely to be used in boilers or CHP schemes dedicated to biogas utilisation. However, there are practical and emerging techniques that may find applications in such circumstances: offsetting a proportion of natural gas fuel usage, micro generation or source of hydrogen for fuel cell system. The aim will be to review current and developing methods that allow effective use of small quantities (~ 10-50kW) of biogas. The project risk is assessed as High 2 as it probably only requires a watching brief before the above project. Ene 11: Appropriate and advanced cooling techniques Rapid Cooling Techniques: Plate and Air Blast Chilling and Freezing and Immersion Chilling and Freezing. The food is chilled / frozen by immersing in cold fluid. Trials held in the meat industry show great promise and benefits look significant, especially in comparison with large air-blast chillers. They allow greater temperature control of product, reduce energy required and allow greater throughput. There are other cooling techniques too. The aim is to undertake feasibility studies for wider application of these cooling techniques, with demonstration projects to establish savings. The project risk is assessed as Med 2 as this is a research and demonstration based project. Ene 12: Examination of scope for CHP during boiler overhaul CHP is a highly effective way of achieving energy efficiency gains and the food industry has a high potential in its application. Although economics are not favourable at present, there are instances AEA Energy & Environment 27 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Restricted – Commercial AEAT/ENV/R/2457 (ED05226) when its consideration could prove beneficial; for instance, where boilers are due for major retrofit or replacement. The CHP systems are conventional power generation systems with the means to make use of the energy remaining in exhaust gases, cooling systems, or other streams. This energy can then be converted to useful heat for up-stream processes, down-stream processes, space heating, community heating etc. If the heat can be utilised on site, CHP has the benefits of achieving approximately 35% reduction in energy use as well as ensuring a secure supply of electricity (and that from an independent source of power). The aim is to encourage food companies to consider the installation of a CHP system when boilers are due for a major overhaul or a replacement. It will also help to avoid stand-by generators and increases energy security. The project risk is assessed as Med 3 as the uptake is likely to remain low under current energy prices. Ene 13: Comparative assessment of Air Cycle Refrigeration Air cycle refrigeration systems use air as their refrigerant, compressing it and expanding it to create heating and cooling capacity. Air cycle refrigeration is one possible route to savings in energy and therefore carbon dioxide and cost. This represents a technology that has been developed for many years but is not widely used in industry, with very few applications in the F&D industry. In general, the attractions of using air as a working fluid are that air is free, safe and harmless to environment. Air cycle refrigeration is particularly suited for applications where cooling and heating are required simultaneously. The aim is to undertake a comparative analysis of air cycle v existing technologies in food refrigeration in terms of overall carbon emission impact. The project risk is assessed as Med 2 as it would require a degree of development and demonstration. Ene 14: Review of scenarios for Tri-generation (Combined Heat Power and Refrigeration) The process of combining refrigeration, heating and electricity generation into a single process is known as tri-generation and could convert up to 90 per cent of the energy contained in the primary fuel into usable form of energy with a huge reduction in carbon dioxide emissions. Generally, trigeneration process uses absorption refrigeration and the economics are particularly favourable when this type of refrigeration is coupled with CHP system. By combining on site generation of electricity with the provision of refrigeration, hot water and heating, the CHPR (Combined Heat and Power and Refrigeration) system can provide total energy solution with significant reduction in running costs. The aim is to undertake feasibility study examining economics of the trigeneration in comparison with scenarios currently found in food industry. The project risk is assessed as Med 2 as it would require a degree of awareness and training if the approach looks attractive in specific locations. Further opportunities for energy saving would become apparent by closer discussion of the issues with the sector associations and some of the leading food companies (eg scope for spinning disk reactors in food manufacture, non heat sterilisation techniques). 4.4.3 Summary Energy saving requires a rigorous management process to be able to minimise any wastage in the food chain. The majority of the food manufacturers, food distribution and retailers have signed up to CCAs and have a degree of focus on their energy efficiency targets. Due to energy price rises many of the voluntary means are undertaken to save energy. It is possible that 12-15% saving potential is 25 possible in the short to medium term (ie up to five years), provided ‘all’ companies adopt. Research projects that are appropriately targeted can help reduce barriers (or even eliminate them) thereby facilitating increased adoption of better energy efficiency measures. In the longer term, further energy price rises are possible that will ensure continued emphasis on the energy efficiency. If this fails to materialise then perhaps a form of government intervention may be required (eg increasing the CCL rate) to meet the targets of 20% as given in FISS. There are many ways in which known opportunities could be taken towards implementation projects. For the more generic opportunities such as those related to education and awareness, training and management, it is appropriate to work with the relevant sector associations as they have the 25 The majority of the medium and large manufacturing companies belong to one of the sector CCAs and hence are included in the data sets presented in the report. However, there are many small size companies, whose overall energy contribution is relatively small and are not included. 28 AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Resource use efficiency in food chains Priorities for water, energy and waste opportunities knowledge of their members needs and concerns at heart. This forms a key part of the Carbon Trust’s Networks programme (see Section 4.3.1). The potential projects identified in Sections 4.4.1 and 4.4.2 above have been prioritised according to likely uptake and level of innovation, as outlined earlier in Section 2, and are presented in Figure 4.6 and priorities ordered in Table 4.2. Figure 4.6 Mapping energy projects into the risk prioritisation matrix Low 1 Low 2 Ene 1 Ene 4 Ene 8 Med 1 Figure 5: 2 Mapping of energy projects Ene onto the risk based prioritisation matrix Ene 3 Low 3 Med 2 High 1 Ene 9 Ene 6 Ene 11 Ene 13 Ene 14 Ene 5 Ene 7 Med 3 High 2 High 3 Ene 12 Ene 10 AEA Energy & Environment 29 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Table 4.2 List of energy projects Priority order Low 1 Low 2 Low 3 Med 1 Med 2 Projects • Ene 1: Boiler and heat distribution - education, awareness and practical assistance • Ene 2: Energy performance enhancement - sectoral video training • Ene 3: Refrigeration - education, awareness and practical assistance • Ene 4: Energy integration link to on-site (contracted) nitrogen supply services • Ene 8: Direct firing of gas to supply process heat • Ene 9: Scoping study to assess the introduction of anaerobic treatment at food manufacturing sites with aerobic treatment • • • • Med 3 High 1 High 2 Restricted – Commercial AEAT/ENV/R/2457 (ED05226) • • • • Ene 6: Application and demonstration of Sonic Wave (PDX) Processing technology in Brewing Ene 11: Appropriate and advanced cooling techniques Ene 13: Comparative assessment of Air Cycle Refrigeration Ene 14: Review of scenarios for Tri-generation (Combined Heat Power and Refrigeration) Ene 12: Examination of scope for CHP during boiler overhaul Ene 5: Options for fuel supply security in food manufacture Ene 7: Challenging the ‘principles’ of process design Ene 10: Options for utilising methane from small-scale anaerobic digestion plants High 3 30 AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) 5 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Waste opportunities In this section, waste opportunities are considered with respect to the food chain comprising agricultural production, manufacturing, wholesale distribution and retail. See also Section 2.1. 5.1 Waste data Waste from the food industry has been considered at three stages along the food chain, namely: • Agriculture (non-biodegradable, except for straw and carcasses). • F&D product processing. • Distribution and retail. 5.1.1 Agricultural waste This section describes the types of agricultural wastes and then provides quantitative arising values for the UK as whole (estimates for the regions (England, Wales, Scotland and Northern Ireland) are provided in tables presented in the Appendices. The main sources of information for agricultural waste data include: • • • • Agricultural Waste Survey (Environment Agency, Defra, 2003). Opportunities for saving money by reducing waste on your farm (BOC Foundation, Defra, 2001). Agricultural Waste (SEPA). United Kingdom Food and Drink Processing - Mass Balance (Biffaward, 2004). Many of these provide data related to certain segments of the agricultural activities as such their use is limited. However, the most comprehensive coverage of waste arisings was provided by a study on the management of non-natural agricultural waste on farms carried out by the Environment Agency in 2003, which estimated the total quantity of such wastes at around 450,000 t/year for Great Britain, and about 780,000 t stored on holdings. This survey, taken from a structured sample of 380 registered agricultural holdings in Great Britain (Total number of holdings: 201,926), also provided National and UK estimates of agricultural waste arisings – derived from the ‘Agricultural Waste Estimate Model’ – for 1998. AEA Energy & Environment is currently conducting a waste minimisation study in Scottish agriculture. As a part of this study, data are being collected on waste streams produced associated with a range of agricultural enterprises. The waste production data for our sample farms have been extrapolated to form a picture of UK-based waste production. Overall, the most recent census figures have been used to obtain details of farms and enterprises within the UK. This covers data on crop residues and livestock carcasses (details provided in Appendix 7). Figure 5.1 and Figure 5.2 illustrate the estimated arisings for farm packaging wastes and nonpackaging wastes. These are generally processing wastes. Usually, anything directly accountable to primary production is not measured and applied to land. Tables supporting these figures are provided in Appendix 7. AEA Energy & Environment 31 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Figure 5.1 Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Farm packaging waste estimates (UK) 14000 12000 Tonnes p.a. 10000 Plastics Paper & Card Metal, Glass & Wood 8000 6000 4000 2000 Glass Oils Pallets Silage Wrap Boxes Misc Packaging Oil Containers Animal Health packaging Animal Feed Bags Seed Bags Batteries Figure 5.2 Fertiliser Bags Agrochemical Packaging 0 Farm non-packaging waste estimates (UK) 140,000 120,000 Tonnes pa 100,000 80,000 60,000 40,000 20,000 Asbestos/cement roofing Sheep Dip Tree Guards Other Horticultural Mulch film and crop Cover Silage Plastic 0 The forms of the agricultural wastes and their current disposal routes are summarised in Table 5.1. 32 AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Table 5.1 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Aspects of the farm waste streams and their current disposal routes Waste stream by sector Crop production Substance Chemicals Plastics Oils Horticulture Other waste (not associated with individual enterprise) Disposal Pesticide residues, Inorganic fertiliser Seed and fertiliser bags, Chemical containers Tractor oil, grease, fuel oil Small amounts of waste occur. Applied to land Sent for recycling. (Can be burnt in Scotland only under strict guidance) Re-used on farm or collected by licensed waste collector Regarded as a useful by-product. Either bailed and sold or used on farm or chopped and incorporated post harvest for nutrient value Re-use and recycle Organic ‘waste’ Straw Plastic crop covers Plastic packaging Carcasses Ground covers and polytunnels Agrochemical packaging, flower pots, fertiliser and seed bags Pesticide residues, Inorganic fertiliser Animal carcasses Veterinary and medical Needles, syringes, medicine packaging, etc Sheep dip Plastics Liquid waste from dipping process Silage plastics, feed bags Organic waste Effluent and livestock manures Scrap metals Redundant machinery and parts Various Tyres, asbestos, building materials, batteries Chemicals Livestock production Form Sent for recycling. (Can be burnt in Scotland under strict guidance) Small amounts of waste occur. Applied to land Dead animals must be collected from farm by a licensed agent Classed as Hazardous waste. Should be collected and farmer should be issued with hazardous waste transfer note Must be handled and disposed of by a licensed agent. Re-used or Sent for recycling. (Can be burnt in Scotland under strict guidance) Disposed of to land as they have a nutrient value. Inorganic fertiliser rates should be adjusted accordingly Taken to merchant when the price is satisfactory. Much of the scrap has been disposed of in the last few years Disposed of in accordance with legislation. The introduction of waste regulation for certain agricultural wastes has not been sufficiently publicised and methods of disposal for farmers are costly to the extent they are inhibitive in the current financial situation. The situation, as we see it, is that unless either a carrot or stick approach is applied farmers will continue to dispose of waste as they always have done. 5.1.2 Waste from the food processing industry The source of data for wastes from the food processing industry was the Environment Agency’s Waste 26 Survey 1998/9 . Total food industry wastes were estimated at about 5.5 Mt. Data tables are given in Appendix 7. Despite covering only a 3% sample of all businesses, this survey data are considered to be the best currently available. The issues of improving the quality of waste data in this sector and establishing the confidence levels for waste data are being considered currently by the FISS 27 Champions Group on Waste . Data provided in Environment Agency PPC returns can provide a more accurate insight into wastes generated by larger food industry companies. A summary of these returns for 2005 is presented in Appendix 7. However, this only covers about 400 large food companies out of a total number of around 7,000 food industry companies nationwide. Therefore, it is questionable whether these data are representative of the whole food industry. However, with around 2.6 Mt reported as released to recovery and disposal, it would appear that those companies covered by PPC account for just under 26 It should be noted that a more recent survey data are also available but the older survey was chosen in agreement with the FISS Champions Group on Waste (at a meeting held on 10 October 2007) – the older survey had a larger sample of food companies. 27 FISS Champions Group: Data Sub-Group. AEA Energy & Environment 33 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Restricted – Commercial AEAT/ENV/R/2457 (ED05226) half of food processing industry wastes and about a third of the total estimated waste arisings from the F&D chain. Other studies have attempted estimates of the wastes from the food industry. Most notable are the UK Mass Balance studies funded by Biffaward which contain a wealth of waste information compiled specifically sector by sector, covering Agricultural waste, the F&D industry, and more general mass balances for the Regions. The study reports provide very readable information together with clear diagrams and charts at the 3-digit SIC code level. (Some tables appear to have been derived from the older Environment Agency survey). Data for Scotland and Northern Ireland has been obtained from the statistical publications of the Scottish Executive Statistical Services and Department of Agriculture and Rural Development (DARD) in Northern Ireland. Numerous trade and industry associations and individual companies have been helpful in providing further estimates of inputs, outputs and wastes for particular sub-sectors of food processing. These include data derived from independent output and wastes surveys, company specific experience, and industry summaries of official statistics. For the purposes of producing a UK mass balance, statistics relating to England and Wales or Great Britain have been scaled up in proportion to the numbers employed in food processing the UK as a whole. This particularly applies to the EA Waste Survey, which covered only England and Wales. The following pie charts illustrate the wastes generated by the food industry (SIC Code 15), the types of wastes produced and the ways in which these wastes were treated. These pie charts are based on data from the Environment Agency’s 1998/9 Waste Survey. Data tables are provided in the appendices. Out of total estimated arisings of around 5.5 Mt, the proportions generated by each sub-sector of the food industry (SIC code 15) are illustrated in Figure 5.3. Note: The survey data for wastes from the processing of fish and fish products (SIC code 15.2) estimated an arising of around 10,000 t/year. However, the Seafood Industry Association has estimated that this figure is more likely to be around 300,000 t/year. The large difference in the two estimates is probably caused by the effect of small sample size for the Environment Agency survey. Although 18,600 returns (~3% of all industries) were received by the Agency, it is understood that the 28 number of returns under SIC code 15.2 had been very small . Consequently, scaling-up is very unreliable from such a small base. Therefore, the latter figure from the Seafood Industry Association is probably a more realistic estimate. 28 Private communication, Alan Bell, Environment Agency. 34 AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Figure 5.3 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Waste by Sub-Sector (Environment Agency Waste Survey 1998/9) 15.1 Production & processing of meat and poultry 17% 15.9 Manufacturing of beverages 20% 15.2 Processing and preserving of fish and fish products 0% 15.3 Processing and preserving of fruit and vegetables 15.4 Manufacturing of 13% vegetable and animal oils and fats 1% 15.5 Manufacturing of dairy products 6% 15.8 Manufacturing of other food products 35% 15.7 Manufacturing of prepared animal feeds 4% 15.6 Manufacturing of grain mill products starches and starch products 4% More than half of the wastes generated are of an organic nature. This is illustrated in Figure 5.4. Figure 5.4 - Waste types generated (Environment Agency Waste Survey 1998/9) Animal & mixed Biodegradable 19% Other waste 39% Soil 1% Non-animal biodegradable 31% Glass 0% Metals 2% W ood, composites etc. 3% Paper, card 4% Plastics, rubber, large EPS boxes, plastic film 1% Around three quarters of the wastes generated is treated, re-used, or used for some form of recovery. The remainder goes to landfill for final disposal (see Figure 5.5). AEA Energy & Environment 35 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Figure 5.5 Restricted – Commercial AEAT/ENV/R/2457 (ED05226) How the wastes were treated (Environment Agency Waste Survey 1998/9) Treatment 6% Transfer 1% Land Disposal 25% Thermal 1% Recycled 24% Land Recovery 11% Re-used 32% Where wastes are of an organic, biodegradable nature, the levels of treatment, re-use and recovery achieved are much higher, with only about 8% of these types of waste being consigned to landfill disposal. (see Figure 5.6). Figure 5.6 How the biodegradable fractions were treated (Environment Agency Waste Survey 1998/9) Transfer 2% Treatment 6% Land Disposal 8% Thermal 0% Land Recovery 11% Recycled 21% Re-used 52% 5.1.3 Distribution and retail waste Data for this stage of the food chain are also available from the Environment Agency’s waste survey. The relevant SIC codes are: • • 36 52.1 - Retail sale of food, beverages and tobacco in non-specialist stores. 52.2 - Retail sale of food, beverages and tobacco in specialised stores. AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Resource use efficiency in food chains Priorities for water, energy and waste opportunities However, data are only available at the 3-digit level. This means that SIC52.1 and SIC52.2 data will contain not only food-derived wastes, but also non-food derived wastes, thereby making interpretation difficult. Figure 5.7 Estimated breakdown of retail wastes (SIC 52.1 & 52.2) (Environment Agency Waste Survey 1998/9) Packaging waste 45% Paper and card 26% Food waste 15% Other waste 7% Mixed waste 7% Overall quantities of wastes from retail were estimated at around 4.5 million t/year. To summarise, overall estimates for food waste from retailing are 455,000 t/year. Packaging wastes (1,400,000 t/year) and paper and card (800,000 t/year) are partly food-related and partly non-food related. Information on this split was not available. Due to the lack of precision, these above estimates should be considered as a guide only. 5.2 Techniques and technologies for waste management 5.2.1 Introduction Judging by the data currently available on the wastes generated through the food chain, it is apparent that the general levels of re-use, recycling and recovery achieved are good, but there appears to be scope for further progress. Certain actions are already in place for this to happen. For example, the increasing recycling and recovery targets demanded by the Packaging and Packaging Waste Regulations will ensure further reduction in the amounts of packaging waste disposed of. A comprehensive assessment of the likely impacts of potential waste projects is not possible due to the general lack of information on the scale of the perceived problem. Impact of changing definitions of what is/not waste In addition, other issues can introduce further complications. For example, for any project set up to improve waste data knowledge, the changes over time on what should/should not be regarded as waste can add further lack of clarity to the situation. The Environment Agency has recently held discussions with Defra over whether certain by-products from the production of F&D are 'waste', in accordance with the definition of waste in Article 1(a) of the Waste Framework Directive, as interpreted by the European Court of Justice (ECJ) in recent cases. In the light of these discussions and consideration of ECJ case law, the Agency has concluded that materials resulting from the manufacture of food or drink which are passed on directly to another undertaking for processing into food or drink (for human or animal consumption) are NOT waste. The AEA Energy & Environment 37 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Restricted – Commercial AEAT/ENV/R/2457 (ED05226) rationale behind this view is that raw materials are being processed in a series of stages (albeit by different undertakings) to extract nutritional value for a number of different purposes, all of which are aimed at manufacturing food or drink from the materials. In these circumstances, the Agency considers that it is appropriate to regard these F&D by-products as not being discarded as waste but simply as another food or drink product obtained from the original raw materials. In the Agency’s view, this conclusion is compatible with the aims of the Waste Framework Directive and the need to ensure its effectiveness is not undermined. This reasoning applies, for example, to brewers’ grains and spent yeast, where they are used to make animal feed or yeast-based products, and to molasses and other derivatives from sugar manufacturing where they are used to make animal feed. However, where residues from the manufacture of food or drink are disposed of, or are used for a different purpose, which amounts to a waste recovery operation (eg use of olive residues as fuel), they will be considered as waste. This reasoning also does not affect the question of whether off-specification or out of date food or drink products are waste. In principle, it is likely that they would be considered as waste within the meaning of Article 1(a) of the Waste Framework Directive – they are identified as a category of waste in Annex 1 to the Directive and any producer will seek to limit their production. This change of definition of waste will have serious implications for establishing a consistent baseline for waste from the food industry against which progress towards FISS targets can be measured. Improvements in waste management Various opportunities exist to exploit improved resource reduction and resource conservation – guided by the waste hierarchy, which seeks to minimise final disposal whilst promoting higher and more sustainable management options towards maximising resource efficiency. Figure 5.8 Waste hierarchy (Defra - Review of Waste Strategy 2000) The following sub-sections each take one of the waste hierarchy stages in turn, discussing areas of opportunity for waste management initiatives and providing thumbnail descriptions of 14 potential projects. 5.2.2 Waste minimisation/prevention Optimising packaging systems and pack sizes A significant proportion of packaging is used for food distribution and retail. Action is already in place to address the issue of minimising / preventing packaging waste through the Courtauld Commitment. 38 AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Resource use efficiency in food chains Priorities for water, energy and waste opportunities Courtauld Commitment The Courtauld Commitment is between 13 major retailers and Waste & Resources Action Programme (WRAP), and was developed in partnership with Defra, the Scottish Executive, the Welsh Assembly Government, the British and Scottish Retails Consortia and the IGD. At a Ministerial meeting at the Courtauld Gallery in 2005 with Environment Minister Elliot Morley and WRAP Chief Executive Jennie Price, senior representatives from Asda, Boots, Budgens, the Cooperative Group, Londis, Iceland, Kwik Save, Marks & Spencer, Morrison's, Sainsbury's, Somerfield, Tesco and Waitrose pledged their commitment at executive level to supporting WRAP in achieving its objectives: • To design out packaging waste growth by 2008. • To deliver absolute reductions in packaging waste by March 2010. • To identify ways to tackle the problem of food waste. As a consequence, Asda and Sainsbury’s have set packaging reduction targets of 10% by 2008 and 5% by 2010 respectively, and Waitrose has put in place targets to keep future packaging levels below those of 2002, and has cut packaging waste growth by 15% in the last year. The type of innovations already on the shelf include: • • • • • • 30% lighter ready meal packaging from Marks & Spencer. Lighter salad bags at Asda, delivering a 14% material saving. Reduced packaging around Iceland’s own brand pizzas. The cartons removed from Co-op’s tomato puree. 18% less packaging for Boots Botanics shower gel. Spirits bottled for Tesco in lighter weight bottles. The retailers have suggested follow up action on three issues: • Food waste. • Biopolymers and compostable packaging. • Cconsistent on-pack recycling information for consumers. Heinz, Northern Foods and Unilever, were the first brand-owners that WRAP has persuaded to sign up to the Courtauld Commitment. Extended ‘sell-by’ dates Extension of shelf life of products could potentially lead to reductions in the amounts of food wastes generated. However, it is clear that careful targeting of suitable products is required to ensure that real gains are made. In some cases, this has not been successful. For example, Somerfield tried a project with WRAP in which more packaging was used for products like fruit to cut down on food waste. However, the project did not work because it was reported: ‘the fruit was too wet – and often is if it is British fruit – and didn't end up extending the shelf life.’ Potential projects Wst 1 Use of Life Cycle Assessment (LCA) for Improving Resource Efficiency LCA can provide an objective overview of the key environmental burdens and resource consumption issues faced by the food industry, and can help target resource use minimisation more generally. There is a dearth of useful data currently and a move towards acquiring these data and information is required of key food products. Given the complexity of the food chains, studies should be conducted at Sector-level using an LCA-type approach to indicate where the resource efficiency 'hot-spots' are occurring, and indicating the options for improvements. (Low 1) Wst 2 Packaging Specification for Resource Efficiency AEA Energy & Environment 39 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Restricted – Commercial AEAT/ENV/R/2457 (ED05226) The basis on how particular packaging systems are specified is not clear. The perception is that resource efficient packaging is some way off (for example, consumers often say they hate packaging!) Assessment is needed of whether or not specified packaging systems are achieving the maximum possible with respect to resource efficiency, by way of a) review and research into how packaging starts its cycle, b) ascertain on what basis is it specified and what is specified, c) whether it is marketing led or consumer opinion led, and d) ascertain what research and surveys have been done (Low 2) Wst 3 Impacts of Changing Consumption Patterns What would be the impacts on resource efficiency of the increasing promotion of a healthier and / or vegetarian diet and a move away from 'junk food'? Study needed to assess the projected consumption patterns and the impacts of changes in consumer behaviour and the implications for the food industry, and to recommend ways forward for improved resource efficiency. Such a study may involve an element of computer predictive modelling of scenarios. (Med 1) Wst 4 Improved Waste Data There is a general consensus that the levels of confidence in waste data currently reported are wider than the KPI reductions set down in the FISS strategy. This undermines the purpose of setting such waste reduction targets. A reliable baseline figure urgently needs to be established for 2006 food waste data. A study is needed on data from a range of sources to establish a baseline figure with associated confidence limits. This issue is currently being addressed by the Data Sub-group of the FISS Waste Champions Group, but will require resources committed to the data gathering and data analysis exercise. (Low 3) Wst 5 Raise Farmer awareness of Agricultural Waste Regulations There are varying degrees of awareness among the farming community about the Agricultural Waste Regulations. While most farmers are aware of the regulations, they do not have a clear understanding of how it impacts on them. As a result, most farmers are continuing to dispose of controlled waste in the same way as they did prior to the Regulations. In consequence, the implementation of new waste regulations has had a limited effect on practise due to a lack of awareness and also due to lack of access to clear and concise information and advice. While relevant advice may be purchased by large agricultural (landlord) businesses, it is not available to those farmers, perhaps a majority, who do not use commercial advisory services. Furthermore, farmers tend to be reluctant to approach the EA or SEPA due to perceptions and concerns of the enforcement body. Relationship management needs improving alongside provision of free advice. (Med 3) Wst 6 A Scoping Study of the practicality of the Agricultural Waste Regulations Due to the individual and often remote nature of the agricultural industry there are often logistical issues in waste legislation compliance. For example, plastics recycling costs farmers significant amounts of money as there are few registered recycling contractors and in order to make the collection from farms viable they need to charge for the service, the cost increasing with distance. In addition, potential measures to enable individual farm collections are restricted due to waste movement regulations. Assessment is needed of the practical limitations to the successful uptake of the Agricultural Waste Regulations and the extent to which they may be compromising the aim of agricultural wastes being handled and disposed of in an environmentally sound manner. (Med 3) 5.2.3 Re-use The legislation on the composition and marketing of animal feed (which covers feed for farmed livestock as well as horses, pet food and farmed fish) is derived mainly from EU measures - enforced in England by the Feeding Stuffs Regulations 2005 (with separate but parallel legislation applying in Scotland, Wales and Northern Ireland.). The Animal By-Products Regulation (EC) No. 1774/2002 prohibits catering waste from being fed to farmed animals. This applies in all EU member states and applied from 1 May 2003. The aim is to ensure that foot and mouth disease and other diseases that can be spread by infected meat products cannot be introduced into the livestock population by the feeding of swill. Animal by-product wastes can no longer be sent to landfill and must be managed by 40 AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Resource use efficiency in food chains Priorities for water, energy and waste opportunities prescribed treatment and disposal routes. Disposal must be by incineration or one of five processing methods prescribed in the Regulation. Catering waste can continue to be landfilled and may also be treated in a composting or biogas plant in accordance with specified process conditions. Defra have produced a number of official publications and guidance notes which are intended to clarify Defra’s 29 policies on animal by-products . The legislation on animal by-products has had a major effect on the animal feeds and pet food 30 industries in the last few years. Raw meat and fish, former foodstuffs and catering waste all become animal by-products (ABPs) when they are no longer intended for human consumption. An indication of such intent could be when produce is removed from sale because it has passed its sell by date or use by date, or because it is damaged, soiled or contaminated to an extent that it is no longer appropriate to display it for sale. The decision as to whether a product is no longer intended for human consumption will rest with the premises manager or anyone nominated on the premises to take such decisions. Opportunities in segregation – low cost with immediate returns. Separation obviously aids recycling. Most majors are already doing this (but 90% of companies in the industry are SMEs). If the waste left after segregation is vegetarian, there may be scope to direct it towards animal feed. However, suitability is highly dependent on the nutritional value of the material and could also fall foul of the Feed Materials Assurance Scheme (FEMAS) requirements. The FEMAS aims to assure the safety of feed materials. Potential projects Wst 7 Non-disposal Options for Food Beyond ‘Sell-by’ Date Whatever or however the sell-by date is established, there will always be some unavoidable food wastage. Rather than sending this straight to disposal, it makes more environmental sense to seek to recover maximum value from these wastes where possible. Some retailers are already making the commitment to achieve zero waste (ie zero waste to landfill) by certain dates in the future. This issue is very much on the agenda for the big supermarket chains. Perhaps, significantly less so for the smaller retailers who have less influence on what happens to their wastes. A study is needed to review current status and likely trends to establish whether or not more needs to be done in this area. (Med 2) 5.2.4 Recycling Recycling food waste to animal feeds/petfoods. (May have limited opportunities - See re-use above.) Composting The production of composts derived from food wastes provides an alternative route away from landfill disposal. Low-risk (so-called category 3) animal by-products can be treated in an approved composting or biogas plant. Animal by-products need to be treated to the EU standard set out in the Regulation, which is treatment at 70°C for 1 hour, with a maximum particle size of 12mm. Alternative treatment standards must demonstrate capability to meet a specified level of pathogen reduction. Restrictions also apply to the application of composts derived from animal by-products. Livestock must not be allowed access to land to which compost or digestion residues have been applied for prescribed minimum time periods, and similarly, animals must also not be fed with anything cropped from land to which compost or digestion residues have been applied, for the same time periods. Packaging Wastes For packaging wastes, the main driver is the Packaging and Packaging Waste legislation. Targets have been set for recovery and recycling of packaging wastes through imposition of producer responsibility obligations on businesses that handle packaging (Raw material producers, packaging manufacturers/converters, packer/fillers and retailers). As the targets are increased, ‘producers’ are driven to examine possibilities for making improvements to their packaging systems (waste 29 30 http://www.defra.gov.uk/animalh/by-prods/guidance/index.htm 'former foodstuffs of animal origin, or former foodstuffs containing products of animal origin AEA Energy & Environment 41 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Restricted – Commercial AEAT/ENV/R/2457 (ED05226) minimisation, re-use etc.) and provide the finance to ensure that greater quantities are recovered and recycled (for example, through subscription costs for joining a compliance scheme). Potential projects Wst 8 Feasibility of Producer Responsibility for waste in the Food Industry As with end-of-life vehicles, packaging wastes and waste from electrical and electronic equipment (WEEE), 'producers' (i.e. manufacturers, importers, distributors and retailers) are required to take fuller responsibility for their products when they become waste. So, why not a similar requirement for the food industry? Such producer responsibility could impose obligations on food ‘producers’ to report on their wastes and achieve prescribed levels of waste minimisation, recovery and recycling. A scoping/feasibility study is needed to assess the potential for applying extended producer responsibility in the food industry and its likely impacts and effectiveness in achieving improved resource efficiency. (Med 2) Wst 9 Consistent Messages on Biodegradable Packaging The wisdom of using biodegradable packaging for certain applications has been questioned (eg the use of biodegradable plastics for mineral water bottles has been criticised because of the perceived adverse effects that it could have in plastic bottle recycling processes). Good, practical advice is needed to ensure that biodegradable polymers are used in packaging systems where they can achieve improved sustainability. An authoritative study is required on the beneficial use of biodegradable packaging - where it is best used: where it should be avoided. (Low 2) Wst 10 Economies of scale in agricultural waste management by farms working together A very wide range of waste materials have been identified on farms. These range from agrochemical and feed packaging, both plastic and paper, oil drums, batteries, silage wrap and carcasses. On most farms these wastes are not available in sufficient amounts to justify any treatment. For example, wooden pallets can be used as a fuel, but the amounts available to an individual farm are extremely unlikely to justify the installation of a boiler utilising scrap wood. However, if a number of farms are prepared to operate together it is possible that sufficient amounts of the waste materials may be available to be put to a constructive use or effectively recycled. An assessment is needed of the economies of scale that could be achieved in agricultural waste management by farms working together. (Low 2) Wst 11 Conversion of straw into animal feed Conversion of straw into animal feed (eg by treating with urea to increase digestibility) and blending with other materials, could solve straw disposal problems on those farms that grow cereals but where livestock manures are handled as liquids. It would also reduce resources going into animal feed which could lead to useful reductions in the amount of land needed to produce concentrates. The land could then be used for environmentally friendly alternatives such as biofuels or woodland. At present available straw may be preferred as a bedding material. It would also be useful to assess whether the savings in feed costs from substitute feeding would justify investing in liquid manure handling facilities and anaerobic digestion. A review is needed of the approaches to using straw as a livestock feed to assess the overall environmental impacts and potential benefits to livestock enterprises. (Med 2) 5.2.5 Energy recovery The recent sharp rises in energy prices are helping to drive increased interest in energy recovery from wastes. NISP is active in this area helping to establish links between waste producers and the technology suppliers. The NISP programme is interested in building long-term collaborative relationships with and between its members. These can be around specific material issues, or a series of individual projects based around a single company or site or even a geographically oriented opportunity. Energy Recovery from combustion (EfW – Energy from waste) 42 AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Resource use efficiency in food chains Priorities for water, energy and waste opportunities Incineration is a highly attractive option, with it being able to accommodate a wide range of waste (ie wood pallets, plastics, meat contaminated material etc). Also it can be used to generate steam and power. However, costs are an issue and public antipathy with concerns over emissions, etc impact on availability of planning consents. If used to dispose of meat-contaminated wastes there is also a requirement to actively monitor temperatures and stack emissions to ensure regulatory compliance. All this adds to the costs, due to capital and management costs incurred. Anaerobic Digestion (AD) Results in generation of methane gas and residual solids and liquids. Methane can be used to generate heat and power, enabling the residual wastes to be sterilised using this and making it suitable for digesting meat contaminated wastes (thermophilic digesters). In mesophilic digesters, temperatures do not get sufficiently high and these cannot accept Associated By-Products (ABP). AD facilities are relatively large due to the amount of time to digest the material and requires active management of material feedstock to ensure the microbial ecosystem is not adversely disturbed. The end solids can be sold as fertiliser. The electricity produced qualifies for the Renewable Obligations Certificate (ROC) and so attracts a government rebate, enhancing the potential profitability of such an approach. Very few commercial AD facilities exist currently. The Carbon Trust ‘Waste4Energy’ offshoot has been set up to improve the uptake of this technology. Some Regional Development Agencies (RDAs) are understood to be looking to incentivise the uptake of AD technology further through capital grant funding. Gasification o This technology centres on the heating (to 800 C) of waste to generate gases (hydrogen and CO), which are then burnt and used to power the system as well as produce power and steam. This can quickly process all types of waste, including plastic and wood. However, the technology is capital intensive. Pyrolysis o Lower temperature process than gasification (ca.430 C) and does not use steam to help break down waste. Produces gas that is used to drive the process (and produce power which is ROC certifiable) and carbonised solid that can be used for solid fuel. As with gasification can deal with a range of wastes but due to lower operating temperatures is not so capital intensive. Such disposal technologies may not be practical for SMEs (90% of the market) due to cost and space requirements. On a cooperative basis, however, it may be possible to set gate fees below that of landfill and ‘enable’ this revenue to provide the capital for the plant to be set up. The added advantage of the energy recovery technologies is that they simultaneously offer a cheaper waste treatment solution with the additional possibility of generating cheaper, cleaner renewable energy. Making it happen For example, Insource Energy (IE) is a new business within Carbon Trust Enterprises Limited. IE are an energy and waste management business that provides tailored, on-site solutions for F&D manufacturers in the UK, through the provision of various technologies, such as biomass boilers and anaerobic digestion coupled with combined heat and power (CHP) units. Insource Energy reduces waste and energy costs and saves carbon. Insource Energy can finance, develop, build, own and operate energy and waste systems. They are not linked to any technology provider; instead they provide an independent service that utilises the best available technology and the best suppliers to meet our customers’ specific requirements. Potential projects Wst 12 Resource Efficient Supermarkets (through uptake of energy recovery options) The major supermarkets are in a position to inform, educate and encourage a significant proportion of suppliers (and customers) on improving resource efficiency, particularly when leading by example. For instance, this promotional power could be applied to the issue of energy recovery for use in their supermarkets. In this case, encouragement is needed for the large supermarket chains to implement (and / or encourage local operators to implement) the use of anaerobic digestion (AD) or energy from AEA Energy & Environment 43 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Restricted – Commercial AEAT/ENV/R/2457 (ED05226) waste (EfW) plants as a means of recovering energy from their wastes for use in their supermarkets. 31 This could be promoted and demonstrated through suitable pilots / demonstration projects . (Low 2) Wst 13 Small scale Sustainable Treatment Technologies According to the Seafood Industry Association, fish related wastes amount to around 300,000 t/year. Around 80% of this is fin-fish waste, the bulk of which arises at the main fish landing ports. Much of this waste is treated in 3 specialist fishmeal plants at Grimsby, Aberdeen and Shetland (ie close to source of the waste). The situation is not so convenient for shell-fish waste (20% of the total), which comes ashore at more diverse points. A feasibility study is needed focused on local-scale sustainable waste management of fish waste. Options for small-scale seafood waste management could include: rendering, MBT, autoclaving, alkaline hydrolysis, pharmaceuticals / cosmetics, collagen / gelatine, fish protein, enzymes & leather. These options require investigation as to whether or not marketable products can be produced and markets are readily available. Opportunities for co-treatment with other small-scale food wastes should also be considered. (Med 1) 5.2.6 Disposal Final disposal to landfill is considered the least attractive option in the waste hierarchy. The largely organic content of food industry wastes can contribute significantly towards the detrimental aspects of landfill (for example, as a source of methane emissions from anaerobic decomposition within the landfill). Landfill Directive The EC Landfill Directive sets targets to reduce the amounts of biodegradable wastes (biodegradable municipal wastes) consigned to landfill – the first target has to be achieved by 2010 (for the UK). Waste disposal authorities have been set landfill allowances for the landfilling of biodegradable municipal waste (BMW) and a system of landfill allowance trading has been set up to provide a flexible way for waste disposal authorities to achieve their prescribed targets. Landfill tax escalator The landfill tax aims to encourage waste producers to produce less waste, recover more value from waste, for example through recycling or composting and to use more environmentally friendly methods of waste disposal. The tax is charged by weight and there are two rates. Inert or inactive waste is subject to the lower rate. The standard rate of landfill tax is currently £21 per tonne. The lower rate of tax, which applies to inactive wastes disposed at landfill, as listed in the Landfill Tax (Qualifying Material) Order 1996, remains unchanged at £2 per tonne. In Budget 2004 the Government announced that the standard rate of Landfill Tax would increase by £3 per tonne to £18 per tonne in 2005-06, and by at least £3 per tonne in the years thereafter, on the way to a medium to long term rate of £35 per tonne. This provides a very strong driver to encourage businesses to take action to reduce their waste sent for landfill disposal. Most noticeably, the landfill tax escalator appears to have brought about an ~10% reduction in the tonnages of standard rate waste landfilled in the two years between 2003/4 and 2005/6. This shows that a key policy, closely linked to reduction of waste disposal, is working. Potential projects Wst 14 Feasibility of Setting Disposal Quotas The concept of waste recycling and disposal quotas (similar to Producer Responsibility and Landfill Allowance Trading) in the Food Chain that places limits on the amounts of waste disposed merits further exploration. In a situation where companies are limited in the amounts of food waste that they can dispose of, a scheme of tradable permits could operate whereby efficient low waste companies could sell excess permits to less efficient higher waste producing companies. This would provide the economic 'spur' to encourage companies to improve their efficiency. This could take the form of 31 Note: Defra already provides support for the installation of biomass-fuelled heat and combined heat and power projects through the Bio-energy Capital Grants Scheme. The 3rd round for applications for support closes on 9th March 2007. 44 AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Resource use efficiency in food chains Priorities for water, energy and waste opportunities Voluntary Targets agreed between Government and the food industry. Dialogue could take place to identify specific areas for Government/industry discussions on target setting. (High 1) 5.3 Prioritisation of waste projects Waste can arise at any stage in the food chain. Food manufacturers do not want avoidable waste (as it adversely affects the ‘bottom line’). Thus, there is the need to prevent, minimise waste and, where it is inevitable, make best use of it. Economic and other barriers can often prevent companies from adopting improvements that reduce waste. Research projects that are appropriately targeted can help reduce barriers (or even eliminate them) thereby facilitating increased adoption of better waste reduction measures. In other areas, more government intervention may be required, especially where legislative requirements (eg EU legislation) need to be met. The pay-off from better waste management is improved competitiveness through greater efficiency. The pay-off from more sustainable waste management is the capacity for continuance in the longterm. The key to improved sustainable waste management is the waste hierarchy. Companies should strive for higher levels of the hierarchy BUT retain flexibility and keep options open for further improvements. The potential projects identified in Section 5.2 above have been prioritised according to likely uptake and level of innovation as described earlier in Section 2.5 and are presented in Figure 5.9 and Table 5.2. Detailed information on wastes can help identify where the major waste problems lie and consequently be managed more appropriately. Therefore, it is not surprising that the potential projects identified above that seek to improve on existing data and information feature highly in the prioritisation. Figure 5.9 Mapping waste projects onto the risk prioritisation matrix Low 1 Low 2 Med 1 Wst 1 Wst 2 Wst 9 Wst 10 Wst 12 Wst 3 Wst 13 Low 3 Med 2 High 1 Wst 4 Wst 7 Wst 8 Wst 11 Wst 14 Med 3 High 2 High 3 Wst 5 Wst 6 AEA Energy & Environment 45 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Table 5.2 List of waste projects Priority order Low 1 Low 2 Low 3 Med 1 Med 2 Med 3 High 1 46 Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Projects • Wst 1 Use of Life Cycle Assessment (LCA) for Improving Resource Efficiency • Wst 2 Packaging Specification for Resource Efficiency • Wst 9 Consistent Messages on Biodegradable Packaging • Wst 10 Economies of scale in agricultural waste management by farms working together • Wst 12 Resource Efficient Supermarkets (through uptake of energy recovery options) • Wst 4 Improved Waste Data • Wst 3 Impacts of Changing Consumption Patterns • Wst 13 Small-scale Sustainable Treatment Technologies • Wst 7 Non-disposal Options for Food Beyond ‘Sell-by’ Date • Wst 8 Feasibility of Producer Responsibility for waste in the food industry • Wst 11 Conversion of straw into animal feed • Wst 5 Raise Farmer awareness of Agricultural Waste Regulations • Wst 6 A Scoping Study of the practicality of the Agricultural Waste Regulations • Wst 14 Feasibility of Setting Disposal Quotas AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) 6 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Integrated opportunities In this section opportunities related to more than one resource stream are considered. Consequently, the opportunities may be related to any part of the food chain - agricultural production, manufacturing, wholesale distribution and retail. 6.1 Introduction The preceding sections have identified a number of opportunities for improving resource use efficiency in one stream, the implementation of which would achieve reduction in other resource use, thereby achieving greater environmental benefit. Such Win-Win interventions would encourage take-up within the industry and would attract a higher benefit cost ratio for an R&D project to support the opportunity, and thus would be rated higher in priority in the Defra’s R&D Programme. Candidate research projects that are aimed to facilitate opportunities that offer such multiple benefits are identified within Sections 3, 4 and 5. A further area of opportunity, currently limited in its take up within the F&D industry, is the recovery of energy from agricultural and process wastes, which would both offset the demand for primary energy and reduce the quantity of waste requiring disposal. In addition to these there are a number of areas where the F&D industry may be encouraged to implement resource efficiency measures through customer-driven pressures. However, to provide an evidence base on which to focus such initiatives, and indeed to justify and prioritise the research projects already identified for each resource stream, there is a need to take stock of all existing and planned R&D programmes and to develop a sound understanding of what is currently happening in industry. Each of these areas is discussed below. 6.2 Baseline studies 6.2.1 Central Government data on resource efficiency in the F&D industry Review of food research and support There are many government initiatives and programmes that support research, development, 32 demonstration and commercialisation work in the food industry . While much good work is being done, there may be worthwhile areas falling between programmes and not being supported. Quite possibly, areas for research identified under this study may already be adequately covered by an existing research programme: either within government or in the private sector. There is therefore a need to review the scope of such support programmes, both government-backed and industry-led, both in the UK and world-wide. A possible spin off from this review would be to provide, perhaps through appropriate web links, a definitive guide for sign-posting researchers, developers, equipment manufacturers, suppliers and users to access right level support and advice to advance innovation in food chains. Baseline data collection This study has identified the almost total lack, in some areas, of baseline data on resource consumption within the F&D industry. Clearly, to assess the efficacy of any initiative to effect resource use efficiencies within the food chains, it is essential to have a firm understanding of the current situation. Of the three resource streams, the least is known about water consumption and waste production. While there is better information on energy consumption, this is concentrated in the larger companies that have opted for CCAs and the information (regarded as sensitive) is held by the sector associations. There are fewer data available from SMEs. Baseline studies, on a sub-sector basis, should be accorded the highest priority. 32 For example, projects supported by the UK Government under schemes such the Carbon Trust’s Applied Research Programme to identify technologies at concept and development stages. AEA Energy & Environment 47 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Restricted – Commercial AEAT/ENV/R/2457 (ED05226) 6.3 Multi-stream opportunities 6.3.1 Techniques and technologies Centralised waste treatment facilities Biodegradable wastes are generally produced in food processing plants in quantities too small to justify on economic grounds the recovery of energy, either through anaerobic digestion or by incineration or other thermal process. There may, however, be situations where a number of such establishments, located within a reasonable distance of each other, might between them generate sufficient waste to make their centralised treatment for energy recovery economically viable. Where such clusters are located in reasonable proximity to farms that generate significant quantities of 33 biodegradable wastes then these too might contribute to, and even provide the premises for a centralised energy from waste facility. Process measurement and control. Process measurement and control refers to a range of techniques that can be used to improve the performance of processes. The secret of a good and economic operation depends on reducing process variability and operating close to specification limits. Process measurement and control helps to achieve this by maintaining effective operation and efficient production and thereby reduce energy and water consumption but also reduce their wastage by increasing their overall operational efficiency. Larger food processing facilities already have extensive instrumentation control and automation (ICA) systems in operation. The technique could effect significant savings in SMEs 6.3.2 Consumer pressure Sustainable food procurement 34 The UK Government spends £3.2 billion a year on food . Due to this high spend and potentially high risk to media focus (on social factors, eg Jamie Oliver campaign) the Government has highlighted food 35 as a priority area in the sustainable procurement agenda . Up until now, it has focused on social, health and economic factors surrounding the food that they procure. However, it should now look 36 actively at the environmental considerations too . There has been at least one sustainable food 37 procurement project (NHS Food for Cornwall Project ) from which to build on. ‘Take-up’ by the F&D industry would not be voluntary: if suppliers sought to win government procurement contracts, they would have to comply. However, having adapted to a sustainable product line, there would be commercial incentives to promote this to their wider customer base. Corporate social responsibility (CSR) The general public is increasingly aware of the effects of climate change and the impact that it has on the environment. It is important for all food businesses to demonstrate their commitment to sustainability by reducing carbon emissions, water use and waste production to ensure that they retain consumer confidence and maintain their position in the marketplace. It may also be important for businesses to demonstrate this commitment to their suppliers as well as to their customers and shareholders. Retailer incentivisation could be through a well publicised and supported awards scheme, delivering awards for commensurate categories such as: the most resource efficient store; the most improved store; the store that introduces the most innovative method of increasing resource efficiency; the chain 33 Consideration of biodegradable waste in agriculture was excluded from the brief for this study; however a Defra study that examined the scope for treating livestock wastes with a proportion of industrial wastes should be considered here; see http://www2.defra.gov.uk/research/project_data/More.asp?I=AC0402&SCOPE=0&M=CFO&V=AEA 34 ‘Procuring the Future’ - Sustainable Procurement National Action Plan: Recommendations from the Sustainable Procurement Task Force; Defra publication June 2006. 35 http://www.sustainable-development.gov.uk/publications/procurement-action-plan/documents/full-document.pdf 36 http://www.defra.gov.uk/farm/policy/sustain/procurement/index.htm 37 http://www.sustainable-development.gov.uk/what/documents/nhs-food-cornwall1.pdf 48 AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Resource use efficiency in food chains Priorities for water, energy and waste opportunities that helps its suppliers save the most energy/water; the supplier that introduces the most effective consumption reduction practice; the supplier that utilises its waste in the most innovative manner. Enhanced product labelling, to include resource use metrics With the current and ongoing media coverage of the climate change debate, water shortages in parts of the country and local issues on waste management, consumers are becoming increasingly interested in all areas allied with sustainability, and in considering the environmental impacts of the goods that they purchase. This interest combines with recent trends, of an increase in the amount of information provided with food products, for example in the area of health, or of the origin of the product, satisfying consumer desire to make informed choices. The display of such information, and its adoption as a methodology for product differentiation/discrimination, could also put pressure on manufacturers to reduce energy intensity where possible. The usefulness of such an initiative, if adopted, is supported by evidence of market demand for 'low carbon products' following a Carbon Trust-commissioned survey that found 67% of all consumers said 'carbon footprints' would influence their choice of product There is an opportunity to widen the current remit of product labelling to include metrics pertaining to the resources used in the production of a particular food product (kWh of energy per kg of product, litres of water per kg). A systematic approach to benchmarking of products would require far and wide management changes (through EMS, resource management and environmental information management system). Major retailers are well placed to exert pressure through their supply chains to speed the introduction of this sort of labelling. 6.4 Projects for multi-stream resource reduction Int 1: Review of food research and support This would take the form of a desk study to identify all past, current and planned R&D into each of the areas that might be covered by the prioritised research projects identified in this study. Such investigations would normally be undertaken at the commencement of any R&D project, but by initiating it at an even earlier stage, it could avoid wasted time and expense in commissioning poorly scoped, or worse, unnecessary work. The study should identify work commissioned by central government and the private sector, both in the UK and worldwide. The format of the deliverable(s) from this work should recognise its potential for wider dissemination over the Internet. The project does not lend itself to prioritisation by reference to the take-up/innovation matrix (although put into the risk category Low 1). Its value, to Defra alone, in aiding the development of its range of programmes, would nevertheless appear to be considerable. Int 2: Baseline data collection The project should collect and collate data on current water and energy use and waste production within the F&D industry at a level of resolution necessary to assess potential resource use savings, and the impact of uptake of projects at national, sector and sub-sector levels. From the limited response that was forthcoming in the data gathering exercise undertaken in this study there appears to be an urgent and important need to engage with each of the relevant sector associations representing the food industry in pursuit of the baseline data. A statistically representative sample of establishments would need to be surveyed, with full confidentiality assurance, ideally by emailed or on-line questionnaire, though inevitably follow-up by telephone may be necessary. The draft Sector Profiles prepared during this study (see example in Appendix 6) contain useful reference data and would act as a good starting point. Sector associations should be able to provide a wide range of statistical data about their members. AEA Energy & Environment 49 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Again, the project does not lend itself to prioritisation by reference to the take-up/innovation matrix. However, its value to Defra is immeasurable, since without a sound baseline, there is nothing against which any of the projects identified in this study can be judged. Int 3: Centralised waste treatment facilities Some practical and social research is required to see how farmers and industrial processors could be encouraged to co-operate (possibly using a ‘carrot and stick’ approach) to recycle waste or direct towards energy schemes. There would be a number of practical, social, legal and contractual issues to be resolved and feasibility studies would be needed to consider mechanisms that could make such an approach work. Uptake would be limited to areas where establishments are clustered, and would probably need one or two demonstration projects to provide tangible evidence of the cooperation working in practice. For this reason, the project risk is rated Medium 2. Int 4: Process Measurement and Control As part of general F&D industry education and awareness, a research project would identify areas of food manufacturing where improved process control can be implemented. The project could include a scoping study to identify the type of sensors and process applications aimed at resource use efficiency. Those related to water and wastewater quality, energy (temperature) sensors are already available; but those for food manufacturing processes are at R&D stage. The project might build from or contribute to the Food Sensors Network, a joint undertaking between Food Processing KTN and Sensors KTN, which brings together users and suppliers of sensing technology and includes large industry, SMEs, academics and researchers to provide an explicit focus on sensing within the food industry. The project could attract interest from the more numerous SMEs and would be relatively inexpensive to implement. For this reason it is rated Low 2 risk. Int 5: Sustainable Food Procurement In the first instance, a scoping review could be undertaken into how the UK Government, with its high buying power, might specify procurement in favour of sustainability that specifically reduces the consumption of water and energy and reduces waste generation from the food chains. As a first step, the review should develop a database of all current food procurements, by type, and value for each department/agency, noting any environmental performance requirements (such as those incorporated in the NHS Food for Cornwall Project). This project would sit well with the work being undertaken by Defra’s Market Transformation Programme (MTP). Take-up by the F&D industry would be directly related to the level of implementation by government agencies, though it would be limited to the proportion of the market taken up by such contracts. This project is therefore rated as Low 1 risk, for potential inclusion in Defra’s R&D Programme. Int 6: Corporate Social Responsibility (CSR) criteria The objective of this project would be to develop guidelines for distribution to industry for the inclusion of measured resource impacts to be included in company annual reports. The project would start with a review of environmental statements in Annual Reports from leading companies within the F&D industry to appreciate the current level of voluntary disclosure of quantified resource consumption. Consultation with a number of such companies would be needed to appreciate barriers to further declarations (for example, commercial confidentiality, availability of data, cost of collection and analysis). The aim of the project would be to identify a range of appropriate metrics and roll out a programme to encourage all major food chain companies to adopt a form of CSR reporting. Uptake will be further improved through good advice, demonstration projects and case studies, delivered to suppliers and retailers to show the advantages, cost-savings and importantly, tangible CSR benefits, that can be won from enhanced resource efficiency. Appropriate support/endorsement 50 AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Resource use efficiency in food chains Priorities for water, energy and waste opportunities from Science and Technology parts of government will encourage the uptake of suitable resource saving technologies. This project is therefore rated as Low 2 risk, for potential inclusion in Defra’s R&D programme Int 7: Feasibility of enhancing product labelling, to include resource use metrics The viability of such an initiative would need to be demonstrated through a structured assessment of the feasibility of its introduction. The initial steps would require the development of an evidence base, to capture current market variation in performance for products to be covered by such a scheme, to determine the variation in unit consumption, from which to identify a possible banding (green/amber/red). This assessment would need to be life cycle-based up to the point of sale (at least). It may well be appropriate for MTP to execute the initial feasibility study. Consultation with industry would be crucial, as any voluntary scheme would rely wholly on its cooperation. Discussions would be needed on the most appropriate methodology to assess resource footprints, and the need for auditing procedures (eg EMAS) to be in place The project would be the first in a series of steps towards the goal of introduction of resource use data on product labels. If eventually adopted by the industry, as an indication of the level of its CSR, takeup could be extensive, however a purely voluntary scheme may only attract interest from companies who expect to have highly rated products. As a concept, requiring environmental information to be displayed on products is not innovative. The project risk is therefore rated as Low 3. 6.5 Prioritisation of integrated projects and key recommendations The projects described above have been mapped onto the risk assessment matrix below to show their relative degree of innovation and likelihood of uptake. For completeness, the two baseline study projects are included in the matrix, assigned a risk assessment of Low 1*, though in reality, as noted above, they are so basic to the R&D programme, that with the exception of the additional scope of Project Int.1 to develop an R&D Web site, they are almost obligatory. AEA Energy & Environment 51 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Figure 6.1 Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Integrated – research, development and implementation priorities Low 1 Low 2 Int 1* Int 2* Int 5 Int 4 Int 6 Low 3 Med 2 Int 7 Int 3 Med 3 High 2 Med 1 High 1 High 3 The resulting priority order for consideration of integrated projects within the range of Defra’s R&D programmes is indicated below: Table 6.1 List of integrated projects Priority order Low 1* Low 1 Low 2 Low 3 Med 2 52 Projects • Int 2: Baseline data collection • Int 1: Review of food research and support • Int 4: Process Measurement and Control • Int 5: Sustainable Food Procurement • Int 6: Corporate Social Responsibility (CSR) criteria • Int 7: Feasibility of enhancing product labelling, to include resource use metrics • Int 3: Centralised waste treatment facilities AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Resource use efficiency in food chains Priorities for water, energy and waste opportunities 7 Summary and conclusions 7.1 Summary General Food production and the UK supply chain is a complex web of resource flows from farm to consumer. A number of simplifying assumptions have been made to tackle the scope of this project. In food manufacturing, product quality, safety and hygiene standards are top priority concerns for managers of any production facility. Resource use efficiency issues are of secondary concern, also because the cost of energy and water still represent a rather small proportion of the overall manufacturing cost (the cost of energy in processing and retail is reported as being around 2% but rising, and the cost of water in food processing is around 1%). There are no estimates of the cost of waste management at any point in the food production cycle. The relatively low ‘perceived’ impact on costs in production has meant that the industry has been slow to take steps to reduce resource consumption or waste production. However, this situation is changing due to increasing prices for energy, water and waste disposal, and emphasis on environmental sustainability. The primary barrier to the adoption of new technology or techniques, which could reduce water and energy use, and waste production during processing, is the food industry’s inherent reluctance to change due to its ‘conservative nature’ and the ‘perceived negative impact’ on hygiene requirements, product quality and potential loss of market. Paucity of data Little is known, collectively, about current energy and water usage and waste production in the food industry. It became apparent early in the study that there was a dearth of real data with which to map resource flows with any confidence. The challenge was therefore significant to provide a priority based research areas with estimates of the impact on resource use. The study has collected data available from open literature as well as from sector associations, where readily available. In addition, knowledge of industrial processes, sectors, market as well as technical issues in water efficiency, energy efficiency and waste minimisation has been used to derive potential elements of a structured programme of projects that Defra could take forward. Some of these may be through routes other than Defra’s research programmes, but where it can help to provide an initial lead. In the absence of data on current industry-wide consumption of all three resource streams, it is not possible to assess quantitatively the potential impact on resource use. Nevertheless, a method for prioritising the research projects has been developed and adopted, to develop a short list of candidate R&D projects. Water opportunities and candidate projects Historically, water data for the F&D industry have been of limited availability. Envirowise has 3 38 calculated that the UK F&D sector uses at 307-million m water per year . This equates to 24% of the total water consumed by industry and commerce in the UK and nearly 5% of total water consumed in the UK. A large proportion of the water consumed in the F&D industry is used for cleaning and washing operations and is usually used on a once-through basis, despite the potential for re-use. This is primarily due to a lack of awareness and use of wide ‘safety margins’ to ensure hygiene standards are met. Very few sectors are known to collect information on water use, with some exceptions, notably Dairy UK and BBPA. The Envirowise Business Impacts on the Environment study (GG331) identified four sub-sectors that have the greatest impact on the water environment (in terms of consumption and effluent): Brewing, Industrial Dairy, Meat processing and Soft drinks manufacture. 38 Envirowise – EN368 – A Review of Water Use in Industry and Commerce AEA Energy & Environment 53 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Water is used for many functions at all stages of the food processing, including cleaning the food, cooking it, preparation of containers and subsequent cleaning of equipment. There are several techniques and technologies available for greater water efficiency. A semi-quantitative analysis of the techniques shows that pigging and membrane filtration show a significant promise in water saving, followed by: general good practice, cleaning in place, water pinch and various forms of wastewater treatment devices that would allow re-use of reduction of water. To date actions undertaken under Envirowise programme have achieved reductions in water 3 3 consumption of 1.5 million m and reductions in effluent production of 850,000 m . The reduction in water use equates to 0.5% of the total water consumed by the industry, although the scope could be around 30% based on simple to moderate cost options that the industry could take up. A total of 11 potential projects have been formulated that respond to the wide range of opportunities identified, covering: data acquisition, management awareness and staff training, technology R&D and demonstration. These are identified in Section 3 above and listed in Table 7.1 in order of decreasing expectation of successful outcome (take up and resulting increase in water use efficiency within the industry). Energy opportunities and candidate projects There is generally good data held by relevant food sector associations (which are not generally published) on energy use in food manufacturing. These are collected as part of the self-monitoring of energy saving targets as part of Climate Change Agreements (of which there are eleven in the food industry). Some of the warehouses and distribution centres are focused on particular product types and, where appropriate, temperature controlled (for chilled and frozen products). The Cold Storage and Distribution Federation represent many of these, whose main energy use here is in lighting and refrigeration. Process heating and cooling costs are generally a large part of any food manufacturing utility bill, and simple energy saving measures will help to cut these significantly. In addition, process control technologies such as fans, stirring and mixing, compressed air, drying, pumps, cooling systems and distilling could be targeted. In many of the food manufacturing sectors (typically sugar manufacture, industrial dairies, brewing, meat processing, spirits soft drinks) on-site wastewater treatment plants, based on activated sludge treatment, also contribute to energy use. Energy saving requires a rigorous management process to be able to minimise any wastage in the food chain. A large proportion of the medium to large food manufacturers, food distribution and retailers belong to the CCAs and have a degree of focus on their energy efficiency targets. Due to energy price rises many of the voluntary means are undertaken to save energy. It is possible that 1215% saving potential is possible in the short to medium term (ie up to five years), provided all companies are able to access help and adopt the simple and short-medium term measures. Research projects that are appropriately targeted can help reduce barriers (or even eliminate them) thereby facilitating increased adoption of better energy efficiency measures. In the longer term, further energy price rises are possible, which will ensure continued emphasis on the energy efficiency. If this fails to materialise then perhaps a form of government intervention may be required (eg increasing the CCL rate) to help meet higher targets. There are many ways in which known opportunities could be taken towards implementation projects. The Carbon Trust provides a range of support to the industry, including the businesses engaged in food manufacturing, distribution and retail. For the more generic opportunities such as those related to education and awareness, training and management, it is appropriate to work with the relevant sector associations as they have the knowledge of their members needs and concerns at heart. The 14 potential projects, covering the full spectrum of types of intervention (management awareness and training, technology development and demonstration), identified in Section 4.2 above, have been listed in Table 7.1 in order of decreasing expectation of successful outcome (take up and resulting increase in water use efficiency within the industry). 54 AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Resource use efficiency in food chains Priorities for water, energy and waste opportunities Waste opportunities and candidate projects Waste from the food industry has been considered at three principal stages of the food production chain: agriculture (non-biodegradable only); food & food product processing; and retail. The source of data for wastes from the food processing industry was the Environment Agency’s Waste Survey 1998/9. Despite covering only a 3% sample of all businesses, this survey data are considered to be the best currently available. Judging by the data currently available on the wastes generated through the food chain, it is apparent that the general levels of re-use, recycling and recovery achieved are good, but there appears to be scope for further progress. Certain actions are already in place; for example, the increasing recycling and recovery targets demanded by the Packaging and Packaging Waste Regulations will ensure further reduction in the amounts of packaging waste disposed of. A comprehensive assessment of the likely impacts of potential waste projects is not possible due to the general lack of information on the scale of the perceived problem Recent changes to the definition of waste, has also added further to the lack of clarity of the situation. Wastes can arise at any stage in the food chain. Food manufacturers do not want avoidable waste (as it reflects inefficient use of raw materials which, together with the cost of disposal, adversely affects the ‘bottom line’). Thus there is the need to prevent, minimise waste and, where it is inevitable, make best use of it. Economic and other barriers can often prevent companies from adopting improvements that reduce waste. Research projects that are appropriately targeted can help reduce barriers (or even eliminate them) thereby facilitating increased adoption of better waste reduction measures. In other areas, more government intervention may be required, especially where legislative requirements (eg EU legislation) need to be met. A further area of opportunity, currently limited in its take up within the F&D industry, is the recovery of energy from agricultural and process wastes, which would both offset the demand for primary energy and reduce the quantity of waste requiring disposal. The pay-off from better waste management is improved competitiveness through greater efficiency. The pay-off from more sustainable waste management is the capacity for continuance in the longterm. The key to improved sustainable waste management is the waste hierarchy. Research projects have therefore been identified that would assist companies to strive for higher levels of the hierarchy, while retaining flexibility and keeping options open for further improvements. The 14 potential projects identified in Section 5 above are listed in Table 7.1. Integrated opportunities and candidate projects It is also possible to identify candidate research projects that provide benefits across multiple resource streams. A number of these have been identified and considered in the section of this report covering the stream that gains the most impact. A powerful driver to improve resource use efficiency throughout the food production chain, across all resource streams, is consumer pressure. Three potential avenues have been identified, where this mechanism might be mobilised through intervention projects: • Sustainable food procurement. • Corporate social responsibility. • Inclusion of resource use metrics in product labelling. This study has identified a critical gap in the knowledge base on resource use within the F&D sector, namely the almost total absence of reliable data on current consumption in many sub-sectors. If any project aimed at improving resource use efficiency is to be measured against current levels, these levels need to be firmly established. A pre-cursor set of baseline studies therefore needs to be commissioned as a matter of priority. It is likely that a number of the identified research projects have already been (or are currently being) researched within government, in the private sector or elsewhere in the world. While any research project to be sponsored by Defra would most likely include a review of current findings, it might be AEA Energy & Environment 55 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Restricted – Commercial AEAT/ENV/R/2457 (ED05226) prudent to initiate such investigations in advance of commissioning any of the projects to finalise the R&D programme. The results of such a research status study might be made available to research bodies worldwide through Defra’s Web site. A complete listing of all candidate projects identified under this study is presented in Table 7.1. 56 AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Table 7.1 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Candidate projects by resource stream and risk of failure Risk order Low 1 Water projects Low 2 • Wtr 6: Water Efficiency Technical Solutions – Product Cleaning Energy projects • Ene 1: Boiler and heat distribution education, awareness and practical assistance • Ene 2: Energy performance enhancement - sectoral video training • Ene 3: Refrigeration - education, awareness and practical assistance • • Ene 4: Energy integration link to onsite (contracted) nitrogen supply services Ene 8: Direct firing of gas to supply process heat Waste projects • Wst 1 Use of Life Cycle Assessment (LCA) for Improving Resource Efficiency • • • • Low 3 • • • Wtr 1: Water Efficiency Quick Wins: Data Collection Project Wtr 2: Water Efficiency Quick Wins: Training and Awareness Raising / Best Practice Wtr 4: Water Efficiency Technical Solutions: – Process Cleaning • Ene 9: Scoping study to assess the introduction of anaerobic treatment at food manufacturing sites with aerobic treatment Med 1 • • • Med 2 • • Wtr 3: Water Efficiency Technical Solutions: Process Integration Opportunities Project Wtr 5: Water Efficiency Technical Solutions: Pipe cleaning – ‘Pigging’ AEA Energy & Environment • • • Ene 6: Application and demonstration of Sonic Wave (PDX) Processing technology in Brewing Ene 11: Appropriate and advanced cooling techniques Ene 13: Comparative assessment of • • • Integrated projects • Int 1: Review of food research and support • Int 2: Baseline data collection • Int 5: Sustainable Food Procurement Wst 2: Packaging Specification for Resource Efficiency Wst 9: Consistent Messages on Biodegradable Packaging Wst 10: Economies of scale in agricultural waste management by farms working together Wst 12: Resource Efficient Supermarkets (through uptake of energy recovery options) Wst 4: Improved Waste Data • Wst 3: Impacts of Changing Consumption Patterns Wst 13: Small scale Sustainable Treatment Technologies Wst 7: Non-disposal Options for Food Beyond ‘Sell-by’ Date Wst 8: Feasibility of Producer Responsibility for waste in the Food Industry Wst 11 Conversion of straw • 57 • • • Int 4: Process Measurement and Control Int 6: Corporate Social Responsibility (CSR) criteria Int 7: Feasibility of enhancing product labelling, to include resource Int 3: Centralised waste treatment facilities Resource use efficiency in food chains Priorities for water, energy and waste opportunities • • Med 3 High 1 • cleaning – ‘Pigging’ Wtr 7: Water Efficiency Technical Solutions: Recycling and Re-use Wtr 8: Water Re-use and Recycling: Membrane Technology Promotion Wtr 9: Water Effluent Reduction Solutions: Anaerobic Digestion • Air Cycle Refrigeration Ene 14: Review of scenarios for Trigeneration (Combined Heat Power and Refrigeration) • Ene 12: Examination of scope for CHP during boiler overhaul into animal feed • • • • High 2 Restricted – Commercial AEAT/ENV/R/2457 (ED05226) • Ene 5: Options for fuel supply security in food manufacture Ene 7: Challenging the ‘principles’ of process design • Wst 5: Raise Farmer awareness of Agricultural Waste Regulations Wst 6: A Scoping Study of the practicality of the Agricultural Waste Regulations Wst 14: Feasibility of Setting Disposal Quotas Ene 10: Options for utilising methane from small-scale anaerobic digestion plants High 3 58 • • • • AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) 7.2 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Conclusions There are several areas where the F&D industry may be encouraged to implement resource efficiency measures. However, there are issues that need to be expedited, as recommended below: There is a strong need to provide an evidence base on which to focus resource use efficiency initiatives, and indeed to justify and prioritise the potential research projects already identified for each resource stream. There is a need to take stock of all existing and planned R&D programmes and to develop a sound understanding of what is currently happening in industry. Defra and the food industry are in the process of creating action plans based on the headline targets in the FISS. Industry-led champions groups are examining best practice and looking at ways to encourage industry to behave in a more sustainable way. The evidence from these groups should be used to outline further projects for consideration by Defra. Of the three resource streams, the least is known about water consumption and waste production. While there is better information on energy consumption, this is concentrated in the larger companies that have opted for CCAs. There are fewer data available from SMEs. A co-ordinated set of actions need to be expedited to acquire water-, energy- and waste-related data from the sector associations (of which there might be some 16 to target). There is also increased interest in energy recovery from wastes. NISP is active in this area helping to establish links between waste producers and the technology suppliers. The scope of geographical clusters, that could provide attractive waste to energy plants, should be explored. Defra should also explore co-ordinated strategies with suppliers of packaging materials that may provide major gains; for example use of green glass instead of white glass to allow greater proportion of recycling. While this approach will reduce energy use, the impact will not be ‘direct’ in the food chains. There are many government initiatives and programmes that support research, development, 39 demonstration and commercialisation work in the food industry . While much good work is being done, there may be worthwhile areas falling between programmes and not being supported. Quite possibly, areas for research identified under this study may already be adequately covered by an existing research programme: either within government or in the private sector. Therefore, there is a need to review the scope of such support programmes - government-backed and industry-led, in the UK and worldwide. A possible spin off from this review would be to provide, perhaps through appropriate web links, a definitive guide for sign posting researchers, developers, equipment manufacturers, suppliers and users to access right level support and advice to advance innovation in food chains. 39 For example, projects supported by the UK Government under schemes such the DTI’s SMART Award and Carbon Trust’s Applied Research Programme to identify technologies at concept and development stages . AEA Energy & Environment 59 Resource use efficiency in food chains Priorities for water, energy and waste opportunities 7.3 Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Glossary of abbreviations ABP AD AIC BBPA BFFF BMPA BMW Bo Associated By-Product Anaerobic digestion Agricultural Industries Confederation British Beer and Pub Association British Frozen Food Federation British Meat Processors Association Biodegradable Municipal Waste 3 Methane producing potential of the manure, expressed as cubic metres (m ) of methane per kg of VS. Also referred to as the maximum methane-producing capacity for the manure. It varies by animal species and diet. BOD Biochemical oxygen demand (expressed as mg/l) BPC British Poultry Council (formerly, British Poultry Meat Federation) BRC British Retail Consortium CCA Climate Change Agreement CCL Climate Change Levy CH4 methane (gas*) CIP Cleaning in Place CSDF The Cold Storage and Distribution Federation COD Chemical oxygen demand (expressed as mg/l) CO2 carbon dioxide (gas*) CSR Corporate Social Responsibility CT The Carbon Trust d days DARD Department of Agriculture and Rural Development in Northern Ireland DF Discount factor DCF Discounted cash flow Defra Department for Environment Food and Rural Affairs DTI Department of Trade and Industry DUK Dairy UK (formerly, Dairy Industry Association Ltd) ECA Enhanced Capital Allowance scheme ECG European Court of Justice EF Emission factor ETL Energy Technology List EU European Union FDF Food and Drink Federation FEMAS Feed Materials Assurance Scheme FYM Farm yard manure g gram(s) GJ Giga oules GWh Gigawatt-hours GV Gross Value GVA Gin and Vodka Association GVA Gross Value Added GWP Global Warming Potential HACCP Hazard Analysis and Critical Control Point HFC Hydro Fluoro Carbons HCFC Hydro Chloro Fluoro Carbons ICA The Ice Cream Alliance kg kilogram(s) kJ kilo joule(s) KPI Key Performance Indicator(s) KTN Knowledge Transfer Network kW kilowatt(s) kWh kilowatt-hour(s) LATS Landfill Allowance Trading Scheme LCA Life Cycle Analysis 60 AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Resource use efficiency in food chains Priorities for water, energy and waste opportunities M&T Monitoring and Targeting MAGB Maltsters’ Association of Great Britain MCF methane conversion factors for each manure management system MF Micro filtration MWh Megawatt-hours 3 * m cubic metres of gas o o Mesophilic temperatures of AD between 35 C and 40 C MJ Megajoule(s) MSW municipal solid waste MTP Market Transfer Programme NAMB National Association of Master Bakers NF Nano Filtration NFFO Non Fossil Fuel Obligation NISP National Industrial Symbiosis Programme PFMA Pet Food Manufacturers Association R&D Research and Development RDA Regional Development Agency RD&D Research, Development and Demonstration RO Renewables Obligation RO Reverse Osmosis SA sector associations SEPA Scottish Environmental Protection Agency SFIA Sea Fish Industry Authority SIG Special interest group SWA Scottish Whisky Association tpa Tonnes per annum o Thermophilic temperatures of AD above ~55 C TWh Terrawatt-hours UF Ultra Filtration UKRA UK Renderers Association VFA Volatile fatty acids (intermediate compounds in the breakdown of organics by AD) VMW Veterinary and Medical Waste VS Volatile solids (ie degradable organic material in livestock manure) VSD Variable Speed Drive(s) W4E Waste for Energy WEEE Waste from Electrical and Electronic Equipment WRAP Waste & Resources Action Programme WTL Water Technology List y year All costs should be read as those as at 2003-4 unless otherwise stated. AEA Energy & Environment 61 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Appendix 1: Background information The F&D industry is one of the two largest manufacturing sectors in the UK, with gross output of £66 billion, accounting for 14% of the total manufacturing sector. It employs some 500,000 people in around 8,000 businesses representing 13% of all manufacturing workforce in the UK. Distribution of F&D manufacturing companies Figure A1 shows the distribution of F&D manufacturing companies by size. It shows that the majority of the companies are small to medium size. Figure A1 F&D manufacturing companies in the UK as a function of their size and by regions (ONS, 2003) 500 500+ employees 450 100-400 employees 400 No. of companies 20-99 employees 350 300 250 200 150 100 50 Sc ot la nd N .I re la nd al es W SW Lo nd on SE En gl an d M id s E W M id s E Y& H N E N W 0 Food chain covered by this project Agricultural production was considered only as far as its waste production is concerned, and covers the following areas: • • • • • • • Cereal production (wheat, barley, oats, other cereals). Other crops (potatoes, oil seed rape, other). Horticulture (vegetables, fruit, nursery stock). Livestock products (milk, eggs for food, wool) Finished livestock (finished cattle, finished sheep/lambs, finished pigs, poultry, other livestock) Store livestock (store cattle, store sheep/lambs, Breeding livestock (dairy cows, beef suckler cows, ewes) Industrial food manufacturing sectors are given in Table A1; as can be seen it shows the industry classification by SIC codes as well as the trade associations. As far as distribution and retail are concerned, the scope was limited to the large retailers and their distribution depots as far as they relate to food products. The large retailers include ASDA, Co-op, Marks & Spencer, Morrisons (including Safeway), Sainsbury’s, Somerfield, Tesco and Waitrose. 62 AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Table A1 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Mapping of F&D industry by SIC codes, industrial processing and trade associations Classification food & drink Production/process industry (by SIC code) classification Trade associations British Meat Processors Association 15.1 Production, processing Slaughterhouses, meats & British Poultry Council and preserving of meat and meat products, Poultry meat products meats & products, Rendering Food and Drink Federation UK Renderers’ Association 15.2 Processing and preserving of fish and fish products Fresh fish, frozen fish British Frozen Food Federation Sea Fish Industry Authority Food and Drink Federation 15.3 Processing and preserving of fruit and vegetables Canned foods, frozen fruits and vegetables Food and Drink Federation British Soft Drinks Association 15.4 Manufacture of vegetable and animal oils and fats Oils and fats Food and Drink Federation 15.5 Manufacture of dairy products Dairy, ice-creams Dairy UK The Ice Cream Alliance Food and Drink Federation 15.6 Manufacture of grain mill products, starches and starch products Cereal products Food and Drink Federation 15.7 Manufacture of prepared animal feeds Animal feeds, pet foods Agricultural Industries Confederation Pet Food Manufacturers Association 15.8 Manufacture of other food products 15.9 Manufacture of beverages Crisps, confectionery, craft bakeries, industrial bakeries, cereal products, biscuits, canned foods, chilled meals, Food and Drink Federation frozen meals, sugar, National Association of Master-Bakers glucose, meal enhancers, preserves and spreads, starch Scotch Whisky Association Gin and Vodka Association Food and Drink Federation Malting, brewing (including cider), distilling, soft drinks British Beer and Pub Association Maltsters Association of Great Britain British Soft Drinks Association Food chain and value added Given the rather diverse nature of the food production chain it is useful to understand the nature of the businesses in terms of the gross value (GV) added and how it is related by site as well as by employee. Figure A2 shows the GV added by stages of food chain; whereas Figure A3 shows that per manufacturing site and employee. Overall, it shows that wholesale suppliers, manufacturing sites and wholesale distributors present the ‘best value’ opportunities for targeting the resource saving as the economic value added per site or by employee is among the highest. AEA Energy & Environment 63 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Figure A2 Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Gross value added in UK food chain by different stages of food chain (drawn from data in FISS, April 2006) 60 51.9 Gross value added (£ billion) 50 40 31.4 30 20.9 20 10 7.5 1.2 0 Supplies (agri & import) Figure A3 Wholesale supplies Manufacturing Wholesale distribution Catering, retail & export Gross value added per enterprise site and per employee by different stages of food chain (drawn from data in FISS, April 2006) 2,347 1,000 900 800 GVA/enterprise (£k) GVA/Job (£k) 700 £k 600 546 500 400 318 300 200 100 142 99 55 36 50 39 20 Supplies (agri & import) Wholesale supplies Manufacturing Wholesale distribution Catering, retail & export Project scope and requirements under PPC Regulations Many of the issues covered by this project are in line with the principles of the Integrated Pollution Prevention and Control, and regulated through the PPC regulations 2000, which applies to some 400 food processing sites. The Environment Agency (the Agency) has sought to ensure that the implementation of BAT does not compromise hygiene and food safety issues which are of fundamental importance to the sector. This is particularly relevant in relation to pollution prevention measures relating to water use, cleaning and re-use and recycling of water. PPC is an integrated approach to environmental legislation, regulating emissions to air, land and water. The emphasis is on pollution prevention and consequently the system strives for process efficiency, using the best systems and techniques appropriate to the site and to the sector. PPC brings about two main benefits, a reduction in emissions and a marked improvement in competitiveness by providing a clear structure and methodology with which operators 40 need to apply : 40 Taken from the F&D sector guidance on PPC Regulations. 64 AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Resource use efficiency in food chains Priorities for water, energy and waste opportunities Waste minimisation: as product loss accounts for a significant proportion of the sectors environmental impact. Water use: it’s estimated the industry consumes approximately 900 megalitres per day, (enough water to supply almost three-quarters of all customers' needs in London each day). Even in those sectors where water is a major component of the product (eg beer and soft drinks), only 20 – 30% of total water consumed leaves in the product. Energy use: although the industry has entered into a Climate Change Agreement with the Government, it is required to implement basic energy requirements for the purposes of IPPC. Emissions to air: many F&D processes release Volatile Organic Compounds (VOC) and odour, for example from cooking and drying processes. Emissions of dust and particulate can also be a factor from activities such as mixing, grinding, milling and transfer of materials. Effluent management: most F&D processes generate wastewaters, the composition of which is highly variable, dependant on the activity, working patterns, product wastage and cleaning systems. The key preventative measure is keeping raw materials, intermediates, product and by product out of the wastewaters, by controlling product wastage and cleaning processes. Accident risk: many materials used by the sector have high oxygen demand and spills; leaks into the water environment can be serious events. In 1999/00 the F&D industry contributed 12.5% of substantiated category 1 and 2 (ie the most serious) Industrial Water Pollution Incidents in England and Wales. An overall assessment of the key best available techniques (BAT) issues indicates that there are no areas where there is a fundamental clash between good environmental practice and good business practice. AEA Energy & Environment 65 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Appendix 2: Example sector profile Meat Processing and Products (Sic Code: 15.1) – Sector Profile Please note This draft sector profile has been compiled using some of the published information. While it forms part of a study that will inform Defra’s future work programme on sustainability in the food industry, its findings will hopefully provide insight into potential ways of reducing production costs within your sector. We will contact you in the next few days to seek your views on the issues covered herein. For information, the personnel engaged on this project are: Prab Mistry (Project Manager) – 0870 190 6533 Steven Fitzpatrick – 0870 190 5287 Steve Ogilvie (Waste) – 0870 190 6543 Prab Mistry/Mike Doble (Energy) – 0870 190 6533/6100 Simon Miller/James Cadman (Water) – 0870 190 2883/6425 66 AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) 1 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Sector summary The SIC code 15.1 (Production, processing and preserving of meat and meat products) comprises the following sub-categories: 15.11 15.11/1 15.11/2 15.11/3 15.12 15.13 15.13/1 15.13/9 Production and preserving of meat Slaughtering of animals other than poultry and rabbits Animal by-product processing Fellmongery Production and preserving of poultry meat Production of meat and poultry meat products Bacon and ham production Other meat and poultry meat processing Sector definitions as we understand are: Poultry meat – includes facilities belonging to the British Poultry Meat Federation Processing sector, if it is a facility in which the predominant activity is one of the following: a) the slaughtering of poultry and/or the processing of poultry meat, or, b) the manufacture of animal feeds for use on poultry farms. Red meat – includes facilities belonging to the meat-processing sector if it is a facility in which the predominant activity is the slaughtering of animals or the processing of red meat. Rendering – includes facilities belonging to the Rendering Sector if it is a facility which is engaged in rendering animal material not used for human consumption, by utilising heat treatment to reduce moisture content and separation of animal protein from tallow by centrifuging and pressing. 1.1 Legislation The key environmental regulations are the Pollution Prevention and Control Regulations (PPC) (for England and Wales), which consist of two parallel systems, ‘Part A’ and ‘Part B’. Larger scale operations will be regulated under ‘Part A’ (1) of Schedule 1 of the PPC Regulations (for England and Wales), whereby they are required to control emissions to all media and to manage noise, energy consumption and site restoration. The Regulations aim to prevent, or where this is not practicable to reduce, emissions to air, water and land. Part A, section 6.8 of the PPC Regulations, states that industries treating and processing materials intended for the production of food products from: (i) Animal raw materials (other than milk) at plant with a finished product production capacity greater than 75 t/day. (ii) Vegetable raw materials at plant with a finished product production capacity greater than 300 t/day (average value on a quarterly basis) will require compliance with the PPC Regulations. Since existing installations have a year from the issue of the permit to comply with the Regulations, it is thought that all sites will now be compliant, as the last day for applying for a permit was 31st March 2005. Smaller scale industries will be controlled by the ‘Part B’ regime of Local Air Pollution Prevention and Control (LAPPC), which focuses on air emissions only. The Animal-By-Products Regulations (ABPR) target entire bodies or parts of animals or products of animal origin not intended for human consumption, including ova, embryos and semen. The ABPR divides animal by-products into three categories and stipulates the means of collection, transport, storage, handling, processing and use or disposal for each category. The new Food Hygiene (England) Regulations 2006 were introduced in January and require food business operators to implement and maintain hygiene procedures based on the Hazard Analysis and Critical Control Point (HACCP) principles. The HACCP system is internationally accepted as the system of choice for food safety management. It provides a systematic way of identifying food safety hazards and making sure that they are being controlled day-in, day-out. AEA Energy & Environment 67 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Restricted – Commercial AEAT/ENV/R/2457 (ED05226) On 1 January 2006 the new Producer Responsibility Obligations (Packaging Waste) Regulations 2005 came into force. The 2005 Packaging Regulations consolidate the original 1997 Regulations with all of the subsequent amending Statutory Instruments, and they also incorporate the changes made to the Regulations in 2005 as a result of public consultation. Any business that handles more than 50 t/year of packaging and has a turnover of more than £2 million/year is obligated (ie affected by the regulations). The regulations set targets for the recovery and recycling of packaging waste. 1.2 Geographical issues The industry currently consists of a core of 7,320 farm businesses served by 21 feed mills and 226 slaughterhouses. Pig production is generally located in the arable areas of the UK, in the East, which is consistent with the historical role of an industry integrated within agriculture generally, for the use of products from other agricultural sub sectors. It is also apparent that feed mills are located close to cereal growing areas/ports/pig growing areas on the east of the UK, and slaughterhouses close to consumer/pig production in the north east and south west of the UK. 41 Poultry production is concentrated in East Anglia and the East Midlands (inferred from Defra data) . 1.3 Common barriers to improvement in resource efficiency Barriers to the adoption of new technology, which could reduce water and energy use, and waste production during processing include: • Inherent reluctance to change when attempting to produce products to rigorous quality and hygiene specifications in a market of narrow margins. • Lack of investment capital for new equipment. • Sunk costs in existing technology. 42 • Product price vs. environmental protection conflict. Price tends to win every time . • Data quality - Difficult to obtain robust data on resource consumption (especially from SMEs – which make up a large part of the industry). • SMEs and resource constraints - With the general trend for an increased proportion of larger companies, some smaller sites are being forced to close because they are unable to benefit from the economies of scale enjoyed by larger sites. SMEs are generally resource constrained and they don’t have the manpower to investigate energy saving opportunities. 1.4 Common opportunities for improvement in resource efficiency • Market differentiation through improved environmental performance. 1.5 Sector process resource consumption and waste arisings 41 Regional distribution of poultry meat production, page 31 of the Mass Balance Study of the Poultry Industry. http://www.biffaward.org/downloads/projectfiles/1639-00390.pdf 42 Food & Drink sector spent £500 million on environmental protection (2002) against a total consumer spend on F&D of around £140 billion (Defra/FDF study on Environmental Impacts of the F&D Industry. 68 AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Resource use efficiency in food chains Priorities for water, energy and waste opportunities The following table indicates those processes that have resource consumption (energy and or water) and produce waste arisings, denoting the level of consumption as high, medium or low. Process Categories 1. Preliminary processes Processes Sorting Cleaning Deskinning Rendering Stunning Scalding Butchering Evisceration 15.1 Production, processing and preserving of meat and meat products Water Energy Waste H M H M H H L M M H M M L L M M H M M M 2.Conversions M M M H H L Cutting Slicing Dicing Cooking Roasting Smoking L 3. Preservation techniques Chilling Freezing H L H H 4. Separation techniques M H Packaging Storage prior to distribution M 5. Packaging and storage 6. Site maintenance Cleaning H Vehicle washing L Total Glossary • Deskinning: the process of removing a carcass’ skin. • Rendering: at various stages in meat processing, inedible by-products such as bone, fat, heads, hair and condemned offal are generated. These materials are sent to a rendering plant either on site or off site for rendering into meat and bone meal (MBM) and tallow. • Evisceration: a process, which removes the viscera, the soft internal organs of the carcass. AEA Energy & Environment 69 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Restricted – Commercial AEAT/ENV/R/2457 (ED05226) 2 Waste 2.1 Waste - current situation Landfill is often the easiest option in the absence of alternative treatment facilities (eg anaerobic digestion). Conventional outlets as animal feeds have been severely disrupted by the BSE crisis. 2.2 Waste data The Environment Agency estimated total waste arisings from this sector to be 947,000 t/year (England 43 and Wales only) . 44 UK poultry industry produced 1.2 Mt of product in 2002 . 45 UK pig market industry produced 1.9 Mt of product in 2006 . Market uncertain due to competition from imports. UK farmers supply over 2 million cattle, 10.5 million pigs and 14.5 million sheep annually for 46 processing into meat and meat products . According to the Meat and Livestock Commission, wastes from primary processing of livestock vary between 35 and 42% of the incoming animal weight. Average weight of a pig in 2005 was 75 kg 48 Average weight of a cow is 537kg 49 Average weight of a sheep is 68 kg 47 Assuming an average 39% wastage, then waste arisings would be as follows: Type Cattle Sheep Pigs Numbers Unit wt (kg) Total wt (kg) Total wt (tpa) Wastage (tpa) 2,000,000 537 1,074,000,000 1,074,000 418,860 14,500,000 68 986,000,000 986,000 384,540 10,500,000 75 787,500,000 787,500 307,125 46 Total tallow (fat) production in the UK is around 250,000 t/year . The UK produces 150,000 t/year of 44 feathers . These are by-products of processing rather than wastes. 46 Paper, card Wood, composites Metal Glass 57 33 42 3 2 1 Total Plastics, rubber 816 Other, unidentified Non-animal biodegradable 15.1 Meat and Meat Products Soil Food processing class Animal & Mixed biodegradable The table below shows waste types generated by the meat processing industry (Kt) . 281 1,235 43 Environment Agency, Strategic Waste Management Assessment 1998/99. Mass Balance of the UK Poultry Industry Biffaward, www.Biffaward.org Mass Balance of the UK Pig Industry Biffaward, www.Biffaward.org 46 UK Food and Drink Processing – Mass Balance, C-Tech Innovation Ltd with contribution from Sustainable Technology Solution Ltd, 2004 47 http://www.thepigsite.com/articles/7/markets-and-economics/1606/uk-eu-pig-statistics-march-2006 48 http://www.bseinquiry.gov.uk/report/volume13/chapterg.htm 49 http://a257.g.akamaitech.net/7/257/2422/01feb20061500/edocket.access.gpo.gov/cfr_2006/janqtr/pdf/9cfr54.6.pdf 44 45 70 AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Resource use efficiency in food chains Priorities for water, energy and waste opportunities The above table shows the most significant waste type arising from the meat processing sector is animal and mixed biodegradable waste. Note: For the purposes of producing a UK picture in the above table, statistics relating to England & Wales were scaled up (in proportion to the numbers employed in food processing the UK as a whole). The following table identifies a range of management options for wastes from this sector. Though the descriptions are somewhat unclear, the indication is that a significant proportion is disposed to land. 2.3 Re-used Recycled Thermal Transfer Treatment Total 15.1 Meat & Meat Products Land Recovery Food Processing Class Land Disposal Amount to waste management option (Kt) 283 285 205 146 17 65 234 1,235 Waste-specific geographical issues The economics of any centralised waste treatment will depend to an extent upon the proximity of animal/meat processing plants, which from above implies a location in the English East Midlands or East Anglia primarily. 2.4 Waste-specific barriers to improvement in resource efficiency Barriers to reducing waste arisings during processing include: • • • • • Lack of waste data recorded by operators. Poor comprehension of the waste legislation by producers. Lack of sorting of waste at source. Product returns as a result of supermarket standards. Lack of treatment facilities. AEA Energy & Environment 71 Resource use efficiency in food chains Priorities for water, energy and waste opportunities 2.5 Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Recommendations, opportunities and savings for waste reduction Type of opportunity The opportunities Short term Improve day-to-day waste 50 management . (Implementation within 1 year; requiring little or no cost) Priority Seek advice on better waste management practice (eg. Envirowise for SMEs). Obtaining better waste data – for establishing baseline figures for FISS KPIs of waste efficiency (eg Obtaining waste data from the Environment Agency for installations covered by IPPC, and better data from sub sectors and retail/distribution sector). Awareness raising on waste legislation for SME. Medium term (Implementation 1-3 years; requiring investment with payback of under 2 years) Seek alternative markets/outlets for specific/sorted wastes. Seek to establish meat sector voluntary waste reduction targets. Development & dissemination through Sector Associations of best practice case studies at sub-sector level. Long term (Implementation >3 years – requiring ‘sizeable’ capital investment) Consider potential for Producer Responsibility for waste reduction and/or tradable allowances for waste (whilst taking account of competitiveness against imports/exports). To provide a true representation of your sector please enter your waste data into the table provided in section 5 (Appendix 2). 50 Envirowise claims potential £1000 pa per employee savings possible through better day-to-day waste management (~4.5% of annual turn over). 72 AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Resource use efficiency in food chains Priorities for water, energy and waste opportunities 3 Energy 3.1 Energy - current situation Thermal energy, in the form of steam and hot water, is used for cleaning and sterilising and for rendering. Electricity is used for the operation of machinery and for refrigeration, ventilation, lighting and the production of compressed air. Like water consumption, the use of energy for refrigeration and sterilisation is important for ensuring good keeping quality of meat products. Storage temperatures are often specified by regulation. As well as depleting fossil fuel resources, the consumption of energy causes air pollution and greenhouse gas emissions, which have been linked to global warming. 3.2 Energy data The table below shows the delivered and primary energy used in the sector, and associated CO2 emissions. These figures have been extrapolated from the F&D sector as a whole. However, more accurate data (eg from CCA based monitoring) would be desirable. The available energy data originate from CCA data where the categorisation differs from SIC and consequently inaccuracies will arise. Delivered energy (GWh/year) Red meat Poultry meat Renderers Total 2,027 1,577 901 4,505 Total primary energy (GWh/year) 2,788 2,169 1,239 6,196 CO2 emissions (t/year) 516,695 401,874 229,642 1,148,212 To calculate the CO2 emissions, the following figures where used: Coal = 2% Petroleum products = 8% Natural gas = 66% Electricity (delivered) = 23% Please provide actual fuel mix for your sector, if known – [This will be different for the three trade associations here.] 3.3 Energy-specific geographical issues As far as we are aware there are no particular geographic factors relating to energy. Most plants are located in rural or semi-rural areas or on urban fringes. Are there any issues of fuel availability such as access to mains gas? 3.4 Energy-specific barriers to improvement in resource efficiency The desire among the industry to reduce energy and carbon emissions has undoubtedly increased since the introduction of the CCL and the establishment of CCAs in this sector. However, barriers remain to the take-up of energy efficiency, which need to be addressed to achieve the full savings potential. AEA Energy & Environment 73 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Restricted – Commercial AEAT/ENV/R/2457 (ED05226) The main barriers are: • Competitiveness – Low profit margins. The concern that some companies have about their profits and stability mean they are reluctant to invest in energy efficiency improvements. • Lack of time to spend on energy issues. Companies don’t have time or enough data to (mathematically) describe how energy is consumed on site. This has relevance, especially when CCA companies need to justify their good energy management practices against ‘transient’ impacts, which adversely affect their business (eg lower production level). • Supermarkets - they are major customers and increasingly powerful. They demand changes to product lines at short notice. Any energy saving measures may be hampered by frequent changes to product lines. • EU Specifications - Complying with legislation concerning product quality and hygiene can increase the energy required to produce a product. Understanding these barriers can, in many instances, present further opportunities for saving energy. 3.5 Recommendations, opportunities and savings for energy efficiency In our approach to identifying opportunities, we have tried to allocate the savings by technologies such as boilers and steam system, refrigeration, process control, building management etc. These savings have been derived by estimating the percentage of energy use associated with each technology area, and then associating likely saving opportunities to it, based on experience. In this approach, energy management and monitoring and targeting (M&T) have been regarded as underpinning techniques and therefore they do not feature in the technology list. Overall, some 13.7% of primary energy saving potential is likely in the short to medium term (~3 years). This is largely based on our broad experience across the whole of the F&D sector and would appreciate your comments on how it compares with your sector in practice. Technology areas Boilers & steam Compressed air Drying Fans Buildings Cooling systems Pumps Refrigeration Stirring and mixing Process control Total saving potential GWh 101 59 56 95 91 33 53 170 82 107 847 Please comment on the key opportunities listed in the table below, adding others where possible. 74 AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Type of opportunity Short term (Implementation within 1 year; requiring little or no cost) Resource use efficiency in food chains Priorities for water, energy and waste opportunities The opportunities Improved energy management practices, including M&T. Improved housekeeping and management of boilers for steam and hot water, and refrigeration plants will provide some short-term savings from improved controls, leak reduction and lagging. Improvements, heating, lighting and ventilation. In rendering especially, motor management policy and ‘stop motor when not in use policy’. Medium term (Implementation 1-3 years; requiring investment with a payback of under 2 years) Some small plant improvement, compressed air systems. Process change away from blast chilling. Some motor saving opportunities. Compressed air zoning systems. Improved process control (eg through more accurate, robust and intelligent sensors). Long term (Implementation >3 years – requiring ‘sizeable’ capital investment) Scope for combined heat and power (CHP), including biomass fuelled. Process efficiency improvements – throughout the process lines. Refrigeration technology improvements and operation optimisation. Some heat recovery opportunities. Some variable speed drive (VSD) opportunities. On-site renewables (wind, solar thermal, biomass, anaerobic digestion of waste arisings). Application of devices such as blowguns and nozzles that amplify compressed air generated at lower pressure to a higher pressure for low volume use (the idea is to operate at low pressure generally and amplify pressure where necessary). Integration of absorption chilling to use low-grade heat on site (especially in conjunction with CHP plant). The table above shows that in the sort to medium term, energy management, M&T, industrial buildings and process control are particularly relevant. In the long term, however, more specific technological improvements or new technologies are likely to provide significant savings. Energy Management and M&T Improved energy management can be expected to provide companies with energy savings of between 5 and 10% depending on the general state of the manufacturing plants, and will include: • Appointment of energy manager - shows commitment to reducing energy use on site. • Housekeeping - can be seen as part of good energy management. AEA Energy & Environment 75 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Restricted – Commercial AEAT/ENV/R/2457 (ED05226) • M&T - often there is a great deal of energy data collected that are used for accounting. However, there is very little analysis carried out, apart from ensuring utility invoices are correct. M&T can help to provide good and continuous savings opportunities. • Employee awareness campaign – to allow all staff involvement. • Energy awareness training – very important, especially with new initiatives. Industrial buildings The buildings generally use a significant proportion of energy as electricity and there are many areas where energy costs can be cut by using energy efficient systems and technologies. By encouraging an integrated approach to the building fabric and services, including a better use of improved controls and consideration of how energy waste can be minimised, considerable energy and carbon savings could be seen. CHP In the medium to longer term, greater use of CHP may offer significant opportunities within the sector. Although over recent years the economics of CHP have not been favourable, there are signs that the price differential between electricity and gas is now increasing (possibly due to the implementation of EU-ETS scheme) which will make CHP more attractive. Process Control The energy saving measures from improvements in process control for the F&D sector fall into several categories: • Controllers - a controller is often set to manual for good reasons but most controllers should be on automatic control during normal operations. • Measurements - all control systems depend on good measurement and should have a minimal lag before the control action is being taken. • Production – often there are visible signs that need to be acted on (for instance due to changes in feed quality or rate or upsets elsewhere in the process). • Inconsistent operation – often shows up by excessive resource consumption and production of offspecification product sometimes, especially if one process might be compensating for inconsistent operation elsewhere. To provide a true representation of your sector please enter your energy data into the table provided in section 5 (Appendix 2). 76 AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) 4 4.1 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Water Water - current situation 3 The estimated water use by the meat processing industry is 7 million m /year, of which 1.2 million is in 51 the Anglian Water supply area. One of the most obvious environmental issues common to all abattoirs is the discharge of large quantities of effluent. Abattoir effluent contains blood, fat, manure, undigested stomach contents and cleaning agents. It is typically characterised as having a high level of organic matter, fat, nitrogen, phosphorus and salt (sodium). Blood has the highest COD (400,000 – 900,000 mg/litre) of all effluents produced from abattoirs. Gut 52 washing also produces effluent with high COD at about 80,000mg/litre . For plants located near urban areas, effluent may be discharged to municipal sewage treatment systems. This is the case in much of Europe. However, in rural areas effluent is often treated on site and irrigated to land. If irrigation is not managed correctly, dissolved salts contained in the effluent can adversely affect soil structure and cause salinity problems. Nitrogen and phosphorus can also leach into underlying groundwater and affect its quality. In some locations effluent may be discharged directly into water bodies. However this is generally discouraged as the high levels of organic matter can deplete oxygen levels and thus degrade water quality. Hygiene standards necessitate the use of large quantities of fresh water. Water is used for watering and washing livestock, cleaning process equipment and work areas and washing carcasses. Cleaning, in particular, is a major area of water use. Containment of infectious diseases is also of paramount importance to the industry, and transport vehicles are washed upon site entry and exit. 4.2 Water-specific geographical issues There are 295 sites in vulnerable areas (South East, London and East) where there will be pressure to minimise water use. There is a high distribution of facilities in the North West and Yorkshire and Humberside which are expected to be under less pressure to minimise water use due to the relatively high water availability in these regions. 4.3 Water-specific barriers to improvement in resource efficiency These are similar to energy-specific barriers, which are detailed in section 3.4 of Appendix 2. 51 52 Envirowise – EN368 – A Review of Water Use in Industry and Commerce. Envirowise – EN368 – A Review of Water Use in Industry and Commerce. AEA Energy & Environment 77 Resource use efficiency in food chains Priorities for water, energy and waste opportunities 4.4 Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Recommendations, opportunities and savings for water efficiency Type of opportunity Short term (Implementation within 1 year; requiring little or no cost) The opportunities Priority Metering - key first step to reducing water use is monitoring water use on site. Sub-meters can record water use in different parts of the sites, and can be connected to data loggers to match production and cleaning shifts to water use. Metering is especially useful to determine baseline data, and to ensure that there are no leaks on site during down time such as site closure. Meters are available on the WTL. Online analysers – Similar to metering, online analysers can provide site information. Analysers can be used to record effluent content (such as COD) leaving the site. This data may exist for IPPC registration purposes, but should be used by the site manager to monitor effluent loading against site production to optimise processes. Staff training – washing processes need to be optimised to achieve cleanliness and hygiene but should not be excessive. Softer issues such as training to brush waste away rather than washing, emptying drain traps before washing, and turning off hoses significantly reduce water use and effluent loading. In the meat industry employees are becoming progressively more diverse and good practice on site can be jeopardised by language barriers. Poor literacy and numeracy skills are estimated to cost businesses ~£500 per employee 53 per year Drain covers – ensure fine mesh covers drains to prevent scraps and other solid waste entering effluent stream. 53 Skills for Life – improving literacy and numeracy at work. Department for education and skills 78 AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Medium term (Implementation 13 years; requiring investment with payback in under 2 years) Resource use efficiency in food chains Priorities for water, energy and waste opportunities Effluent reduction – rerouting drains to stop blood entering the sewer; collection trays to catch scraps falling from machinery. Cleaning procedures – processes and systems should be optimised to increase efficiency. Opportunities exist to map water use on site and reuse water for dirty rinses (eg first wash down of manure from floor), and counter current rinsing may be suitable for larger vessels. Cleaning in place – technical improvements are available for CIP systems. Optimised control and programmes minimise water use, and nozzle selection reduces flow rate without compromising function. CIP units are available on the WTL. Vehicle washing – vehicle washing can use up to 5% 54 of water needed at red meat abattoirs . Sites should ensure that washing processes are optimised and, where appropriate, washwater can be treated and recycled. Rainwater harvesting – significant water supply can be gathered from rainwater harvested from roofs on site. Underground or aboveground tanks can be used for storage. Products needed for building rainwater-harvesting systems are available on the WTL. Long term (Implementation >3 years – requiring ‘sizeable’ capital investment) Membranes – effluent streams can be treated through membrane systems by microfiltration, ultrafiltration, nanofiltration or reverse osmosis. Contaminants can be treated and removed to produce water of drinking water quality which is suitable for re-use on site. The ECA scheme supports membrane systems which treat water and re-use ≥40% on site. To provide a true representation of your sector please enter your water data into the table provided in section 5 (Appendix 2). 54 GG234 Reducing water and effluent costs in red meat abattoirs. Envirowise AEA Energy & Environment 79 Resource use efficiency in food chains Priorities for water, energy and waste opportunities 5 Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Sectoral information To provide a true representation of your sector we would appreciate it if you could provide the following information, or parts thereof, as available. National Regional England North East Number of companies Production (t/year) Primary energy use* Water use (m3/year) Total waste** (t/year) North West Yorkshire and the Humber East Midlands West Midlands East of England London South East South West England total Wales Scotland Northern Ireland Total * Specify units, as appropriate ** If you have data, please provide further breakdown of waste into the following categories: Biodegradable, plastics and rubber, paper and cardboard, wood, metal, glass, etc. Number of local units in VAT-based enterprises in all industries in 2005 in the UK55 North East North West Yorkshire and The Humber East Midlands West Midlands East London South East South West Wales Scotland Northern Ireland TOTAL Government Office Region 1511 Prod/preserving meat 20 35 50 30 30 30 10 20 45 25 55 25 380 1512 Prod/preserving poultry meat 0 10 40 15 30 25 5 5 10 10 15 15 175 1513 Prod meat & poultry meat products 30 110 70 60 80 70 75 55 70 40 65 45 770 Class 55 Office of National Statistics, UK Business 2005. 80 AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Resource use efficiency in food chains Priorities for water, energy and waste opportunities Appendix 3: Water saving techniques and technologies Efficiency – managementTraining This involves training staff on techniques for reducing water usage and encouraging them to waste as little water as possible. This could include anything from holding meetings to inform staff about best practice procedures, to training seminars to teach staff how to operate and clean equipment properly. The aim of this is to ensure that staff are aware of the issue of resource efficiency and are using best practice procedures to reduce water wastage. This approach is most effective when it is part of a continued plan of resource efficiency rather than a one-off training session. Good practice Good practice means establishing a systems and methods of undertaking operations that ensure that the existing measures to minimize water use are being used. Good practice measures can include using equipment in an efficient way, turning the hoses off when not in use, and ensuring that 56 equipment is bunded correctly. The good practice system should be implemented at all levels of the business and linked in with the training programme to ensure that staff members are using the equipment as efficiently as possible. Metering The use of meters is the first step to reducing water use on site. Sub-meters can record water use in different parts of the sites, and can be connected to data loggers to match production and cleaning shifts to water use. Metering is especially useful to determine baseline data, and to ensure that there are no leaks on site during down time such as site closure. Meters are available on the Water Technology List (WTL), which promotes water efficient appliances under the Enhanced Capital Allowance (ECA) scheme. Efficiency - technical solutions Water Pinch Water Pinch is a systematic technique for analysing water networks and reducing water costs for processes. It uses advanced algorithms to identify and optimise the best water re-use, regeneration, and effluent treatment opportunities. It has also helped to reduce losses of both feedstock and valuable products in effluent streams. Typical reductions in effluent flows that can be achieved are in the range of 20 to 60%. This technique can help reduce charges on water volume and should be used in conjunction with online analysers and dosing equipment (below) in reducing effluent loads as well (BOD and COD) as charges are also based on pollution load. CIP optimisation systems Cleaning-in-place (CIP) systems offer a highly efficient way of cleaning large vessels or tanks that require regular cleaning. CIP systems incorporate spray balls/nozzles/rotating heads and generally use high-pressure cleaning. As there is no human contact, stronger detergents ensure more efficient cleaning and water use is optimised. If fitted with partial solvent recirculation, these systems can increase washing efficiency by 90%. Mechanical seal water management A mechanical seal is a device which helps join systems or mechanisms together by preventing leakage (eg in a plumbing system), containing pressure, or excluding contamination. A mechanical seal can be used around pumps and other rotating equipment and promotes savings from effective control of flush and quench water (waters used to wash out batch systems for example). Mechanical seals use 12 litres of water per minute on average but this can be cut by 75%. Floor washers 56 Bunding is a method for isolating specific plant or operations to capture any spills or fugitive emissions or discharges and can be as simple as a brick wall surrounding a piece of machinery to prevent any spills contaminating surface or ground waters AEA Energy & Environment 81 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Industrial floor cleaning equipment is used in many applications in buildings. Water efficient scrubber/driers have integrated wash water recovery equipment, which accepts the dirty water in the recovery tank and processes it so that it can be reintroduced to the scrubber/drier solution tank for reuse. Similar equipment may be used in conjunction with a pressure-washing unit to the same end, though the collection of the dirty water is more difficult. Here, the dirty water must collect in a belowfloor reservoir and be pumped back into the system. Re-use and recycling – technical solutions Rainwater harvesting Rainwater Harvesting is the collection of water that would otherwise have gone down the drainage system, into the ground or been lost to the atmosphere through evaporation. Installing rainwater harvesting equipment in a factory can provide rainwater for use as non-drinking water applications such as toilet flushing and washing machines, process or cooling water, or cleaning water. Countercurrent rinsing This is a well-established technique in other industries, but much less applied on food manufacturing plants. Rinse water can often be more effectively used by moving a product through a series of tanks or stages. Instead of each of these stages being supplied with fresh ‘make-up’ water, countercurrent rinsing can be employed, so long as hygiene standards are ensured. In counter-current rinsing, the product is rinsed first in grey water and then in progressively cleaner water. At the same time, the rinse water moves progressively from the last rinse (clean water) towards the first rinse (grey water). Typical savings in water use are between 40 and 50%. Membrane separation A membrane is a thin physical barrier through which materials can either pass (the permeate) or be rejected and retained (the retentate). The structure and character of the membrane determine the nature of the separation. Membranes have many uses in the F&D industry: apart from recovering water, they can be used to concentrate or purify product and recover raw materials and product from waste streams. Membrane filtration systems are characterised into four main categories according to the pore sizes of the membranes. (Enhanced Capital Allowance is offered on membrane filtration systems used for water re-use.) Microfiltration (MF) is a pressure-driven process that is used to separate micron-size or sub-micron particles from the effluent stream by a membrane. Pore sizes of MF membranes are in the range of 0.05 to 3 µm. MF is the most open membrane and separates macro-materials and suspended solids. Typical materials removed by MF are starch, bacteria, moulds, yeast and emulsified oils. Ultrafiltration (UF) concentrates suspended solids and solutes of molecular weight greater than 1,000. Colloids, emulsions and molecules, with a particle range size of between 0.005 and 0.1 µm, are retained by the membrane. The permeate has low molecular weight organic solutes and salts. The membrane will concentrate high molecular weight species while allowing dissolved salts and lower molecular weight materials to pass through the membrane. UF membranes are used in a variety of industries for concentration and clarification of large process streams and in municipal applications for potable water treatment. Nanofiltration (NF) is capable of allowing monovalent salts such as sodium chloride and alcohol to pass whilst retaining divalent salts such as sodium sulphate. It is possible to generate a purified solvent (water) from an effluent stream containing solutes. The unique separation capability of NF provides the opportunity to selectively concentrate either valuable or undesirable substance from a process stream with greater effectiveness, consistency, reliability and economy. Nanofiltration can perform separation applications such as demineralisation, colour removal, and desalination. Reverse osmosis (RO) membranes are non-porous and separation is achieved through solute solubility differences in the membrane. The RO membrane, while allowing water and solvents to pass, concentrates low molecular weight organic materials and salts. This often means that high pressures 82 AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Resource use efficiency in food chains Priorities for water, energy and waste opportunities of about 35-100 bar are required to overcome the high osmotic pressures of high concentrations in the feed streams. However, there are some membranes designated low pressure RO, which can operate at pressures below 10 bar providing the osmotic pressure of the feed is correspondingly low. RO membranes are characterised by their retention properties, for example, 99% salt retention. The quality of water or permeate produced by RO and NF are generally (depending on the stream) much higher than that from UF or MF which are more open membranes. Vehicle washers Products in this area are designed to help reduce the amount of water used in the vehicle washing process; this is most effectively done through recycling the water used but can involve making alterations to minimise the amount of water used per cycle. For example, vehicle washing can use up 57 to 5% of water needed at red meat abattoirs . For reclaim and recycle purposes, it most commonly features a trap that lies underneath the vehicle to catch most, if not all, the water running off postwashing. After the water has been collected it is then filtered and purified. The water is usually pumped across a settlement process to rid it of larger dirt particles and undergoes a more thorough refinery process if the water needs to be fully reclaimed. Effluent reduction and treatment Pigging Pigging is a technique used for removing blockages in water pipes and sewers and cleaning pipes in the chemicals industry and is ideal as the pipe does not need to be opened. It is often used in connection with clean-in-place (CIP) systems. The technique uses a solid object, such as a rubber or plastic plug or lump of ice, or it can use pressurised air to force out any remaining product from the pipe from the last process batch and thus clean it ahead of the next batch. There are several benefits from pigging. By using this technique large quantities of water can be saved when cleaning transfer pipes between batch productions. Product efficiencies are also important and can be made by capturing the final amounts of the process batch, which can be incorporated into the final product. If cleaning materials are used, their quantities can likewise be reduced. Finally, wastewater loads can be reduced because the product that was once being washed out to sewer, with high COD and suspended solids, is now being included with the rest of the product. In terms of pig materials, ice is more flexible in going round pipework and for when pipe diameters reduce and ice can of course be incorporated into final food products in most cases. Slurry dewatering/drying This is a broad technique commonly used for reducing the volumes of water held by slurries and sludges from various industries. Technologies include centrifuging, belt presses and high temperature driers to drive off excess water. The resulting solid is often described as ‘cake’ with an appropriate percentage of dry solids, indicating the amount of water in the material. The main aim is reduce the weight and volume of slurry or sludge so that transport costs and volumes are lower. Electro-coagulation Electro-coagulation is used to clean wastewater by using electricity to precipitate out dissolved material and suspended solids. After going through this process the resulting cleaner water can then be used in many applications, such as for on-site facilities and cleaning operations. By doing so costs for both clean water in and wastewater out are reduced due to lower volumes. Furthermore, the costs for electro-coagulation are lower in comparison to conventional chemical coagulation as there is not the operational need for chemical addition and subsequent smaller sludge volumes to dispose. Anaerobic digestion In the absence of air, sludges and slurries are broken down by bacteria to form composted material. The process is usually accelerated by heating the sludges. The resulting solid product can be used as a soil improver on agricultural land, or if further dried to around 95% dry solids content, used as a fuel for incineration and energy recovery. Methane is given off as a by-product as part of the digestion process, which can be captured and used for power generation and is often used to heat the initial sludges to the optimal temperature for digestion, thus requiring less fuel (eg natural gas) to be bought in specifically for this process. 57 GG234 Reducing water and effluent costs in red meat abattoirs. Envirowise AEA Energy & Environment 83 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Online analysers Online analysers can be used in wastewater treatment to ensure that the correct level for effluent load is attained in the process, often using Total Organic Carbon, TOC, as the key indicator. This is relevant for two reasons. It is important that wastewaters meet discharge consent values and thus do not incur punitive measures and so the manufacturer would use analysers to ensure that effluent loads are not exceeding their consents. A manufacturer however also wants to be sure that their wastewater is not being unnecessarily overly-treated beyond what is required, under the terms of their discharge consents for example, and therefore wasting money through energy costs for example. Analysers can also be used to measure the amounts of water being used and thus pinpoint where efficiencies in volume can be made. One key advantage is that online analysers are instant rather than needing a sampling and testing regime which adds delays into the process. Dosing equipment By optimising the dose of F&D ingredients to the correct amount there is less wastage of raw materials and subsequently less washing needed (ie less water required). Closed transfer equipment This is a technique whereby products are moved from one vessel to another without the need for direct contact. It therefore ensures minimisation of spillages between batch processes, prevents waste product from having to be washed out to sewer and reduces the chance for contamination. UV/Ozone Ozone gas and UV light are widely used in the treatment of water and wastewater to kill pathogens. They can also oxidise trace chemicals making them less harmful and easier to separate out. For wastewaters specifically this can be applied to reduce the effluent load and thus make the water more appropriate for re-use in other processes. Sand Filters Sand filters are a long-standing separation technology. Layers of fine and coarse sands and other materials are employed to filter wastewaters and physically remove suspended matter. Some dissolved material is also separated out through adsorption onto the surface of the filtration substance. The filter has to be backwashed periodically with clean water to ensure optimal performance, the resulting sludge then requiring further treatment or disposal. Dissolved Air Flotation (DAF) In combination with coagulation techniques, DAF can be used to separate out flocs and precipitates from the water by passing gas (usually air) upwards through the water. This pushes the suspended matter to the surface from where it can be scraped off for disposal. Likely impact of water saving methods The diagram below shows the potential for effluent treatment equipment in the F&D sector – the market has yet to reach maturity for clean water, wastewater and the brewing industry in particular, while it is mature for clean water and municipal wastewater (sewage) treatment. 84 AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Figure A4 Resource use efficiency in food chains Priorities for water, energy and waste opportunities 58 Market maturity trends in water treatment, by sectors Each method, technique or technology has been assessed in terms of the potential water savings that can be gained against the perceived difficulty of any given solution; perceived difficulty can be read as risk and includes the following aspects: • • • • • • Cost. Concerns over hygiene. Lack of knowledge. Market acceptance. Likelihood of uptake. Certainty of success. The output from this semi-quantitative analysis is the table below that plots resources savings potential vs. perceived difficulty. So, for example, a technique like online analysers has a low perceived difficulty and is well known, although in themselves they won’t achieve large resource savings they will assist the identification of where savings can be made. This shows that a strategic approach must be advised at company level. Figure A5 Likely impact on water use efficiency and ‘perceived difficulty’ of water saving techniques Pigging Membrane filtration Resource use savings Sealing devices Water Pinch CIP Electro coagulation Good practice (training and management) Mechanical dewatering Vehicle washers Anaerobic digestion Counter current rinsing Floor washers Closed transfer equipment Rainwater harvesting UV/ozone treatment Dosing equipment Online analysers Perceived difficulty 58 Frost & Sullivan, ‘Water and Wastewater Treatment in the Food Industry’, www.frost.com AEA Energy & Environment 85 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Appendix 4: Water data In the absence of detailed (and structured) sectoral data on water use, we provide the following information sectors within the F&D industry. Meat 15.1 3 It is estimated that the meat processing industry uses 7 million m of water per year, of which the 3 59 Environment Agency’s Anglian Water Supply Area accounts for some 1.2 million m , or 17% . The main environmental issue in terms of water for all abattoirs is the discharge of large quantities of high strength wastewaters. Abattoir effluent contains blood (COD between 400,000 and 900,000 mg/litres), fat, manure, undigested stomach contents and cleaning agents, contents comprising high levels of organic matter and minerals such as nitrogen, phosphorus and sodium. The meat sector has 295 sites in areas of water stress: South East England, London and East of England. There is a high distribution of facilities in the North West and Yorkshire and Humberside which are expected to be under less pressure to minimise water use due to the relatively high water availability in these regions. Fish 15.2 Similar to the meat industry, fish processing effluent streams also contain high loads of organic matter due to the presence of oils, proteins and suspended solids as well as high levels of phosphates and nitrates. Large volumes of water and subsequent effluents comes from a variety fish processing operations such as washing of fish products, gutting, scaling, fluming of fish and product around the plant in water, defrosting, portioning, filleting and canning. For operations where skinning is carried out, the effluent can have a high pH due to the presence of caustic. For fish meal and fish oil production, sea water is typically used for cooling and condensing air from the evaporators and scrubbers, and comparatively minor quantities of fresh water are used for the centrifuges, for producing steam and for cleaning. Concentration of processing sites in Yorkshire and Humber reduce the driver for increasing water efficiency at the national level. Fruit and vegetables 15.3 Sites involved with fruit and vegetable processing require very high volumes of water for washing and cleaning purposes. These requirements mean these sites have high demand curves. They typically also have high volumes of effluent with variable loading (including COD, suspended solids and residual pesticides). Sites performing blanching and canning/bottling operations can produce highly 60 acidic fruit and vegetable wastewaters which can cause corrosion problems. The volume of water 3 61 used per tonne product ranges from 2.5 to 9 m , and there is significant scope for minimisation . Dairy 15.5 There are two key points for consideration in the dairy sector. Firstly, milk has a high COD value of around 200,000 mg/litre, which means any product leaks significantly raise effluent loading and as such would threaten biodiversity in local waterways. Secondly, cleaning water accounts for 50-90% of 62 a site’s water consumption due to hygiene requirements and the nature of the liquid product. 59 Envirowise – EN368 – A Review of Water Use in Industry and Commerce. Envirowise – GG432 Water Account Pocketbook UK Food & Drink Processing – Mass Balance, C-Tech Innovation Ltd with contribution from Sustainable Technology Solutions Ltd., 2004 62 Envirowise – GG432 Water Account pocketbook 60 61 86 AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Resource use efficiency in food chains Priorities for water, energy and waste opportunities Beverages 15.9 The profile for water use in this sector must include the use of water in the product, which cannot be minimised. The approximate proportion of water used on site that is included in the product varies for 63 different product types : • • • • Brewing – 15%. Bottled water – 25%. Fruit juice – 25%. Dilutables/carbonates – 75%. It is estimated that the main drinks sub-sectors use the following amounts of water each year in the 64 UK : 3 • Breweries - 35 million m /year. 3 • Spirits industry - 26 million m /year. 3 • Soft drinks industry - 27.5 million m /year. In terms of effluent flows, fruit and vegetable juices are highly acidic and cause corrosion problems. Brewery effluent containing wort, beer and yeast can have a high COD load of 100,000 mg/litre or more due to the presence of soluble sugars, starches, alcohol and protein. 63 64 Envirowise – GG432 – Water Account Pocketbook Envirowise – EN368 – A Review of Water Use in UK Industry and Commerce AEA Energy & Environment 87 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Appendix 5: Energy saving techniques and technologies Energy management While investments in technological improvements are made, there will be a need to focus on energy 65 management. Improved energy management can be expected to provide companies with energy savings of between 5 – 25 % and would be very dependant on the level of work undertaken prior to improvement. These would be common to all sectors and would include: • Appointment of an energy manager. This shows commitment to reducing energy use on site. An energy manager can manage an energy management system and as a result, savings that could be expected in the first 12 months would pay for his/her time for two years (ie from all energy management and low cost measures). Work of the manager might include the introduction of a site energy policy, a motor management policy and running the site energy awareness scheme. • Monitoring and targeting (M&T). (Some M&T measures are required for IPPC). Often, there is a great deal of energy data collected which is used for accounting, however there is very little analysis carried out, apart from ensuring utility invoices are correct. Using this data and perhaps a number of additional metering points, an M&T system should be initiated. M&T can help to provide good indicators to savings opportunities simply by providing information on energy use. • Housekeeping. This can be seen as part of good energy management. This low-cost measure can provide high levels of savings without much effort. It does require commitment from the workforce and good promotional work is required. Examples of housekeeping measures include: closing doors to cold/hot rooms, switching lights off, stopping equipment when not in use, etc • Employee awareness campaign. As well as having staff involvement at the highest management level, there should be greater involvement at shop-floor level and this can best be achieved by a staff energy awareness campaign. This could be commissioned by the new energy manager and could provide further significant savings improvement of an improved energy management system. • Energy awareness training. To be effective, any new energy management initiative needs to provide key individuals with some training. Ideally all staff in the company should have at least a short introduction to energy savings. The energy manager can undertake some of this. The potential for making energy savings while minimising waste and recovering product, goes hand in hand with the implementation of IPPC regimes at food manufacturing sites. The strong links between IPPC and CCA has been of some help to the companies. The CCA introduced in 2001 suggests the companies to produce good quality action plans to identify energy efficiency measures and indeed the fact that a company had a CCA reduced the amount of work required in the application for an IPPC licence. Energy technologies Boilers and heat supply Heating and steam cost is generally a large part of any food manufacturing utility bill, and simple energy saving measures will help to cut these significantly. Boilers and steam systems have average efficiency at point of use of about 60-65% and the saving opportunities generally fall into the following categories: • Boiler design and operation. • Boiler and steam system maintenance. • Improvements through low cost retrofit technology. 65 According to the Carbon Trust publications, including Sector Overview (CTV004): Food and Drink Processing – Introducing energy saving opportunities for business 88 AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Resource use efficiency in food chains Priorities for water, energy and waste opportunities Refrigeration The F&D industry is one of the largest users of refrigeration technology. Many businesses within the sector will find that refrigeration costs make up a significant proportion of their energy bill. A significant proportion of this energy use can be saved. It is reasonable to assume that an energy savings potential of about 20% for existing plants and 30% for new developments. (Reducing refrigerant leaks, typically by 25%, would achieve a further saving of GHG emissions.) Industrial buildings The buildings within the F&D industry use a significant proportion of energy as electricity and there are many areas where energy costs can be cut by using energy efficient systems and technologies. From the total primary energy related to the F&D industry in Northern Ireland, between 2 and 20% can be attributed to buildings. By encouraging an integrated approach to the building fabric and services, including a better use of improved controls and consideration of how energy waste can be minimised, would result in considerable energy and carbon savings from industrial buildings. Other technologies Other technologies that can be targeted for energy efficiency are fans, stirring and mixing, compressed air, drying, pumps, cooling systems and distilling. Combined heat & power (CHP) In the medium to longer term, CHP may offer significant opportunities within the F&D industry. It will increase the energy saving potential further. In the short term, however, relatively small price differential between gas prices and electricity prices mean that investment in CHP is uneconomic. Environmental protection In many of the food manufacturing sectors (typically sugar manufacture, industrial dairies, brewing, meat processing, spirits soft drinks), on-site wastewater treatment plants, based on activated sludge treatment, are often used to treat biodegradable effluents. These plants use a great deal of energy to supply oxygen for the microbial degradation of the polluting substances. They also produce a large amount of sludge that need disposing off-site. However, it is possible that some of these plants could 66 be converted to anaerobic systems whereby saving energy use, reducing the generation of sludge and creating a supply of energy source, by way of biogas production. Process control The energy saving measures from improvements in process control for the F&D sector fall into several categories: • Controllers: a good way of quickly assessing the state of control on a plant is to see how many ‘automatic’ controllers have been set to manual. Although any controller can be set to manual for good reasons, most controllers should be on automatic control during normal operations. • Measurements: all control systems depend on good measurement and it must be appropriately linked (ie with least lag) with any control action. • Production: if the production is often interrupted, the common causes are changes in feed quality or rate, energy supply interruptions or upsets elsewhere in the process. Appropriate means to check these must be put in place. • Inconsistent operation: if energy consumption is excessive then there are often problems or delays during product changed. In addition to producing off-specification product, the plant might be compensating for inconsistent operation in other parts of the plant. A monitoring and targeting system will help to identify such problems. The benefits are generally wider than just energy. 66 Not least due to the efforts made to reduce water use that tend to increase the concentration of pollution in wastewaters , making anaerobic treatment more favourable. AEA Energy & Environment 89 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Appendix 6: Energy data The data presented in this section form the basis of estimating any energy saving potential associated with some of the opportunities. The data acquired during the course of this project are not comprehensive. The data presented here are from a Defra/FDF study, undertaken in 2004, to review all CCA data from the F&D industry, which was submitted as evidence as part of the consultations leading to the publication of FISS, in April 2006. This, together with an understanding of the industry, has been used to arrive at the current energy use and energy efficiency potential in the different sub sectors. The majority of energy data is presented as ‘primary energy’, which needs explaining in relation to ‘delivered energy’. Conversion factors are used for converting from delivered energy (as metered) to primary energy. The Primary energy is defined as the amount of energy produced from an energy source before losses through conversion processes and transmission. As such, the factors for purchased or delivered electricity change with time as they depend on the generating mix in any given year. For fossil fuels delivered to food production sites, the conversion factor remains 1. However, for electricity, the factor is 2.6 (ie primary energy = 2.6 x delivered energy). Table A3 gives energy consumption in the F&D industry. It excludes energy use in tobacco processing but includes on-site CHP generation. Table A4 gives the total energy consumption and saving potential by F&D industry, by SIC codes. Table A5 provides a comprehensive breakdown of energy use and associated CO2 emissions as well as saving potential in F&D sectors. Finally, Table A6 gives estimated energy saving potential by process technology areas. Table A3 Energy consumption in the UK F&D industry Fuel source Coal Petroleum products Natural gas Total fossil fuels Electricity consumed Electricity generated Net electricity Total energy use 90 Delivered energy GWh (2003) 1,078 3,824 29,584 34,486 11,687 1,986 10,566 45,052 Fuel mix 2.4% 8.5% 65.7% 76.5% 25.9% 4.4% 23.5% 100.0% Primary energy GWh (2003) 34,486 27,472 61,959 AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Table A4 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Total energy consumption and saving potential by F&D industry SIC codes F&D industry sectors Total PE (GWh) Saving potential (GWh) Estimated* Saving potential 13.7% 15.1 Meat processing 6,196 847 and production 15.2 Fish products 1,342 113 8.4% 15.3 Fruit & vegetables 3,201 317 9.9% 15.4 Oils & fats 1,859 177 9.5% 15.5 Dairy products 7,022 921 13.1% 15.6 Grain milling & prod 4,337 195 4.5% 15.7 Animal feeds 5,576 704 12.6% 15.8 Other food products 19,827 2683 13.5% 15.9 Beverages 9,294 1034 11.1% Storage/distribution** 3,304 420 12.7% Total F&D sector 61,958 7,411 12.0% * Estimate short to medium term opportunities by directing support to companies; excludes energy from waste schemes ** Although retail is part of this study, data were not available (except for the small part of the retail – that used in cooking in stores for baking products etc Table A5 Energy use and saving potential of F&D industry sectors Industry by SIC codes 15.1 Meat processing and production 15.2 Fish products 15.3 Fruit & vegetables 15.4 Oils & fats 15.5 Dairy products 15.6 Grain milling & prod 15.7 Animal feeds 15.8 Other food products 15.9 Beverages Storage & distribution Total F&D sector AEA Energy & Environment Manufacturing sector Meat Poultry Renderers Fish processing Fruit & vege. Oils & fats Dairy Ice cream Milling & products Animal feed Pet Foods Bakery Ambient Food Sugar manufacture Confectionery Spirits Brewing Malting Soft drinks Cold store Bulk storage and distribution Total primary (GWh) Total saving potential (GWh) Sectoral saving Saving of potential F&D (S-M)% industry 2,788 2,169 1,239 1,342 3,201 1,859 4,337 2,685 4,337 3,098 2,478 6,196 4,337 423.8 270.2 153.2 112.8 316.9 176.6 521.3 400.0 195.2 325.0 379.2 929.4 520.5 15.2% 12.5% 12.4% 8.4% 9.9% 9.5% 12.0% 14.9% 4.5% 10.5% 15.3% 15.0% 12.0% 0.7% 0.4% 0.2% 0.2% 0.5% 0.3% 0.8% 0.6% 0.3% 0.5% 0.6% 1.5% 0.8% 6,196 3,098 2,788 3,718 1,859 929 1,983 780.7 452.3 217.5 496.7 193.7 126.4 277.6 12.6% 14.6% 7.8% 13.4% 10.4% 13.6% 14.0% 1.3% 0.7% 0.4% 0.8% 0.3% 0.2% 0.4% 1,322 61,958 142.2 7,410.9 10.8% 12.0 % 0.2% 12.0 % 91 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Table A6 Estimated energy saving potential by technology areas Technology area Boilers & steam Refrigeration Buildings Process control Fans Stirring and mixing Compressed air Drying Pumps Cooling systems Distilling Total energy use 92 Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Saving potential in F&D industry GWh/year % 1,057 1.7% 1,026 1.7% 896 1.4% 862 1.4% 773 1.2% 680 1.1% 588 0.9% 525 0.8% 501 0.8% 331 0.5% 171 0.3% 61,958 12.0% AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Resource use efficiency in food chains Priorities for water, energy and waste opportunities Appendix 7: Waste data This appendix contains detailed extracts of data found from published reports. The source of data for the wastes arising during the agricultural stage of food production was the Environment Agency’s Agricultural Waste Survey 2003. This has been augmented with our estimates of arisings of livestock carcasses based on average animal weights, mortality rates and stock numbers. The data on food industry wastes was provided by the Environment Agency from their 1998/99 Waste Survey. This has been supplemented by data from PPC Returns for 2005 from the Food and Drink Industry, which we have aggregated and presented in summary form to illustrate the tonnages of wastes released by the larger Food and Drink companies. The data for food industry wastes occurring during the retail & distribution stage have been estimated from the Environment Agency’s Waste Survey 1998/99. Note: these should only be taken as a guide to the amounts of waste arising at this stage. Finally, the detailed data from HM Revenue and Customs is presented to demonstrate year by year total amounts of waste reporting to landfill disposal and annual the net tax receipts. AEA Energy & Environment 93 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Table A7 Farm packaging waste estimates Plastic packaging Agrochemical packaging Fertiliser bags Seed bags Animal feed bags Animal health packaging Oil containers Miscellaneous packaging Total Paper and cardboard packaging Agrochemical packaging Animal health packaging Animal feed bags Seed bags Silage wrap boxes Total Metal, wood and glass packaging Animal health metal and wood Glass Oil drums Pallets Total Total packaging 94 Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Source Predominately cereal and other crop production Cereal and other crop production, horticulture, livestock production Predominately cereal and other crop production Livestock production Livestock production Predominately cereal and other crop production Cereal and other crop production, horticulture, livestock production and other England Wales Scotland N Ireland UK total 1,720 30 276 374 2,400 8,748 840 6,419 444 501 984 15 1,283 105 47 1,654 134 2,019 124 84 815 12 1,680 76 38 12,200 1,000 11,400 750 669 2,063 20,734 331 2,794 1,166 5,457 240 3,235 3,800 32,219 Predominately cereal and other crop production Livestock production Livestock production Predominately cereal and other crop production Livestock production 1,146 148 3,378 1,511 156 6,340 20 35 675 26 75 832 184 41 1,063 240 73 1,601 249 25 884 22 31 1,212 1,600 250 6,000 1,800 335 9,985 Livestock production All Predominately cereal and other crop production All 5.9 444 873 16 1,339 28,413 1.4 105 81 2.1 190 3,717 1.7 124 147 4.2 277 7,335 1 76 66 2.7 145 4,592 10 750 1,166 25 1,951 44,156 AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Table A8 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Farm non-packaging waste estimates Non-packaging England Silage plastic Livestock production Greenhouse and tunnel film Wales Scotland N Ireland UK Total 12,425 5,016 5,029 2,530 25,000 Horticulture 468 10 12 11 500 Mulch film and crop cover Horticulture 3,738 30 657 76 4,500 Silage wrap cores Livestock production 703 339 327 138 1,506 Other horticultural plastics Horticulture 5,617 114 143 127 6,000 Baler twine and net wrap Predominately cereal and other crop production 7,934 821 1,683 662 11,100 Tree guards Horticulture 6,694 532 4,492 182 11,900 37,579 6,860 12,341 3,726 60,506 542 122 146 118 929 Total non-packaging plastics Cardboard cores for silage wrap Table A9 Livestock production Animal health products and other wastes Animal health products England Wales Scotland N Ireland UK Total Sheep dip Livestock production 56,537 23,598 27,959 8,360 116,454 Used syringes Livestock production 31 5 5 5 46 Other wastes Batteries All 2,228 222 362 N/A 2,812 Tyres All 20,680 1,981 3,312 N/A 2,812 Oils All 20,272 18,993 Scrap metal All 18,573 1,637 3,102 N/A Asbestos/cement roofing All 18,243 1,637 3,102 3,406 1,524 27,095 23,312 2,122 33,602 Organic waste Straw * Cereal production N/a N/a N/a N/a Carcasses* Livestock N/a N/a N/a N/a 10.9 million 165,089 t * 40% of wheat straw is currently ploughed in and 30% of straw is thought to be baled by farmers for their own use. The remaining 30% is straw currently produced for commercial purposes AEA Energy & Environment 95 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Animal and mixed biodegradable Non-animal biodegradable Plastics, rubber, large EPS boxes, plastic film Paper, card Wood, composites, etc Metals Glass Soil Other waste Totals 67 15.90.00 Manufacturing of beverages 15.80.00 Manufacturing of other food products TOTALS 590,066 2,285 18,047 7,916 106,258 102,933 13,409 186,033 3,314 1,030,261 43,559 2,025 364,921 3,736 42 49,978 29 489,694 784,156 1,738,140 733 - 8,424 231 9,760 119 2,550 13,388 16,500 51,705 9,497 253 26,206 1,858 23,478 6,712 3,215 106,377 23,367 274 2 65 78,169 778 1,898 56,867 4,521 1,363 57 49,078 461 1,710 841 5,028 23,951 9,196 437 4,622 93 395 - 8,328 1,537 58,798 13,772 13,772 300,774 5,873 240,341 39,225 78,820 41,221 210,086 1,015,455 254,956 946,702 10,495 707,110 53,887 306,565 202,582 236,215 1,952,100 1,123,554 200,963 142,574 91,685 24,562 77,192 2,186,751 5,539,210 Source: Environment Agency Waste Survey 1998/9 96 15.70.00 Manufacturing of prepared animal feeds 15.60.00 Manufacturing of grain mill products starches and starch products 15.50.00 Manufacturing of dairy products 15.40.00 Manufacturing of vegetable and animal oils and fats 15.20.00 Processing and preserving of fish and fish products Waste type 15.30.00 Processing and preserving of fruit and vegetables Waste types in the food industry (by sub-sector) t/year67 15.10.00 Production & processing of meat and poultry Table A10 Restricted – Commercial AEAT/ENV/R/2457 (ED05226) AEA Energy & Environment Restricted – Commercial AEAT/ENV/R/2457 (ED05226) Table A11 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Wastes from the food industry – treatment routes by sub-sector (t/year) 15 Totals Total 15.10.00 Total 15.20.00 Total 15.30.00 Total 15.40.00 Total 15.50.00 Total 15.60.00 Total 15.70.00 Total 15.80.00 Total 15.90.00 Grand total 15 AEA Energy & Environment Land Land Re-used Recycled Thermal Transfer Treatment Total Disposal Recovery 217,247 218,226 156,923 111,631 13,015 49,969 179,691 946,702 3,650 1,995 4,565 284 1 10,495 141,272 53,325 116,857 378,388 28 570 16,503 707,110 33,968 369 14,272 3,164 1,619 53,887 76,880 60,113 29,387 137,192 7 2,445 540 306,565 35,049 81,390 58,994 26,361 8 29 86 202,582 110,652 97,165 519 22,203 5 91 3,131 236,215 572,439 52,203 684,883 480,735 31,936 21,095 105,290 1,952,100 201,380 65,599 695,605 149,580 178 2,592 8,620 1,123,554 1,392,537 628,021 1,745,532 1,324,927 45,177 80,239 315,481 5,539,210 97 Resource use efficiency in food chains Priorities for water, energy and waste opportunities Table A12 Restricted – Commercial AEAT/ENV/R/2457 (ED05226) 68 Summary of PPC Returns from F&D industry EA Region Anglian region Midlands region NE region NW region Southern SW region Thames region Wales region Grand total - sum of quantities released (tonnes) Air Controlled waters 149,317 54 144,368 0 86,585 1,200 118,728 0 3 237 58,428 25 224 0 54,964 69 612,618 1,584 Disposal 246,184 165,394 122,960 82,039 11,637 84,869 12,861 63,849 789,792 Recovery 678,735 451,229 98,598 179,785 3,508 242,672 10,656 148,636 1,813,819 Sewer 1,568 79,676 4,026 2,697 0 683 108 1,414 90,172 Grand total 1,075,858 840,667 313,369 383,249 15,384 386,678 23,849 268,931 3,307,984 Notes: Data extracted and prepared on 18 July 2006 Details of releases and transfers from sites classified as 'Animal, Vegetable and Food' in 2005 as reported to the PI Only releases above the reporting thresholds have been included Waste figures reported are the quantities transferred of site for disposal or recovery. Liquid waste that is tankered straight to a waste treatment facility will be included in the controlled waters category 68 Data supplied by the Environment Agency to NISP 98 AEA Energy & Environment Retail Wastes Table A13 Retail wastes associated with SIC52.1 Summary Mixed and general waste Tonnes 1,582,325 Food waste 50,960 Packaging waste 1,022,850 Where the mixed waste can be broken down further into: Composition of general waste Tonnes Mixed waste 136,072 Food waste 326,728 Packaging waste 347,491 Paper and card 635,668 Other 136,366 This latter table was derived from asking survey respondents to provide an estimate in percentage terms of the composition of their mixed waste. The above tables suggest that, for SIC52.1, Food Waste is about 375,000 tpa and Packaging Waste is about 1,370,000 tpa but it is not possible to establish what proportion of this packaging waste is related to food retailing (and may contain distribution packaging). It is also not clear whether or not ‘paper and card’ contains any packaging. Table A14 Retail wastes associated with SIC52.2 Summary Tonnes Mixed and general waste Food waste Packaging waste 369,175 8,691 737 Where mixed waste has been broken down further to: Composition of general waste Tonnes Mixed waste 3,845 Food waste 70,518 Packaging waste 30,529 Paper and card Other 171,272 93,011 The above tables suggest that, for SIC52.2, food waste is about 80,000 t/year and packaging waste is about 31,000 t/year. However, again it is unclear whether or not ‘paper and card’ contains any packaging waste and what proportions of packaging waste are food related and tobacco related. AEA Energy & Environment 99 Table A15 Year 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 Landfill tax receipts and tonnages landfilled kt (at standard rate) 50,363 49,006 49,901 50,643 50,865 49,416 47,265 46,121 43,134 kt (at lower rate) 35,442 29,605 23,024 17,551 15,841 16,052 13,950 13,028 12,232 kt (exempt) 9,961 8,302 9,215 15,690 15,210 14,659 15,533 17,409 16,426 kt (total) 95,766 86,913 82,140 83,883 81,916 80,127 76,748 76,558 71,792 Net tax receipts (£millions) 361 333 430 462 502 541 607 672 733
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