15 June 2010 Nick Hall-Stride

Industrial Energy Efficiency Accelerator

Innovation opportunities for the meat processing industry

Who we are… What we do…

The Carbon Trust is a not-for-profit company with the mission to accelerate the move to a low carbon economy. We provide specialist support to help business and the public sector cut carbon emissions, save energy and commercialise low carbon technologies. 

• By providing specialist advice and finance to help organisations cut carbon

• By setting standards for carbon reduction

• By opening markets for low carbon technologies

• By leading industry collaborations to commercialise technologies

• By investing in early stage low carbon companies

Carbon Trust products you maybe familiar with will continue…

The IEEA programme is a new, differentiated offering…

There are still CO2 reduction opportunities in industrial processes…

Industrial CO2 emissions account for 25% of the UK total. Despite the UK’s overall emissions falling between 2006 and 2007, industrial emissions continued to rise, by 9.5%1

Policy measures that impact industry (CCL, CRC) are insufficiently strong and/or slow acting e.g. the EU ETS may not stimulate the desired action in all cases.

Opportunities to reduce emissions in industry lie in multiple relatively small process improvements2

Targeting sector-specific processes alongside traditional energy efficiency opportunities motivates industries whose energy use is mostly consumed by these processes.

1 DECC, 2007 Greenhouse Gas Emissions Final Figures, February 2009

2 Committee on Climate Change Report, December 2008

The IEEA programme aims to unlock those opportunities…

The IEEA programme is a new sector based approach recently piloted by the Carbon Trust

The target is industrial sector-specific processes

Identify practical, replicable, cost-effective carbon saving opportunities

We identified a significant number of opportunities for CO2 reduction in three pilot sectors1 which would save an average of 28% CO2 emissions per sector (160,000 tonnes CO2)

To deliver a step change reduction in CO2 from industrial processes by accelerating innovation in process control

and the uptake of low-carbon technologies.

1 animal feed, plastics blow moulding, asphalt production

IEEA Process “Black Box”

IEEA PROCESS BLACK BOX

Energy Intensive Elements

Operational Variables

Different Products

Different Hardware

People

• Raw Materials

• Energy: gas, electricity, heat

• Scheduling

• Management

Services e.g. cooling water, compressed air, boilers, conveying, ventilation

NOT

Lighting or space heating

Training and awareness

Transport

Renewables

By-products e.g. heat, waste, recyclables, secondary feedstocks

Products

3.5-4 Mt CO2 emissions reduction identified by 2012 across industrial sectors

2.5-3 Mt CO2 emissions reduction implemented by 2014

– traditional carbon management approach achieves implementation rates of 30-40% in 9-18 months.

– pilot sector experience suggests the IEEA approach should be capable of doubling the implementation rate in an accelerated time-frame.

Pro-active Trade Associations...Active industry membership…

Collaborative climate change aware companies…

Are invited to participate.

The prize…

We work closely with Trade Associations and Member Companies…

IEEA approach piloted in 2008/09Average 28% savings identified

Animal Feed

Milling

Asphalt Production

Plastic Blow Moulding

BOCM PaulsAB AgriNoble FoodsDavidson BrosCarrs-Billington

Agricultural Industries Confederation

TarmacHansonAggregate IndustriesLafargeCemex

Mineral Products Association

Highland SpringMcBrideBritvicRPC

British Plastics Federation

New sectors recently added ...

Arla FoodsBV Dairy Dairy CrestRobert WisemanGlanbiaDairy UK

Allied BakeriesIrwin’s BakeryJacksons BakeryPremier FoodsFood & Drink Federation

Dairies Bakeries

HansonMichelmersh WienerbergerIbstockBritish Ceramics Confederation

BricksPaper

Smurfitt Kappa St RegisArjo WigginsJames CropperConfederation of Paper IndustriesPITA

Brewing

CarlsbergTennent CaledonianInBevMarstonsDiageoBritish Beer and Pub Association

And more…

CadburyNestleTangerineFood & Drink Federation

DiageoMolson CoorsMunton’sBaird’s MaltMorrison Bowmore Distillers

Confectionery Malting

MicroElectronics

SeagateNXPNational SemiconductorInternational Rectifier+…National Microelectronics Institute

Highland DistillersCrisp MaltingSimpson’s MaltThomas FawcettMaltsters Association of Great Britain

Laundries

Sunlight Textile

Johnson Service

Fishers Services

Cannon Hygiene

Paragon Laundry

Textile Services Association

The approach…

Investigation and Solution Identification

Implementation Replication

Examination of specific processes in depth to

understand energy use and interfaces with

other systems.

Demonstration of the cost-effectiveness and

carbon saving potential of the

identified solutions such as equipment

upgrades and process optimisation.

Dissemination and replication of results

throughout the industry sector and potentially also to

other relevant industry sectors.

Identification of solutions that improve

energy efficiency based on this investigation.

Stage 1 Stage 2 Stage 3

Collect the evidence to build a business case

6 months 12-24 months Ongoing…….

Opportunities identified typically occur in three areas…

1

2

3

Structured approach designed to…

Increase breadth– 20 new sectors enrolled in Stage 1 by September 2010,

pro-active trade associations, collaborative member companies, black-box process consensus – fully funded by Carbon Trust

Increase depth – develop business case to facilitate transition from Stage

1 to Stage 2

Build relationships, disseminate, implement – sector guides, business and energy drivers, CO2

reduction opportunities, data and analysis. Sector wide roll-out, implementation support

An integrated part of the Carbon Trust landscape…

Targeting new sectors through 2010…

Dairies

Bakeries

Confectionery

Bricks & ceramics

Paper, printing, packaging

Microelectronics manufacturing

Laundries

Contract catering

Malting

Brewing

Distilling

Meat processing

Rubber & polyurethane products

Metal forming/ packaging

Particle board & wood panel

Flour milling

Meat, Fish, Poultry Ready Meals

Packaging & films

Foundries/ casting

Composites

Pharmaceuticals/ healthcare

Water/ waste water treatment

Textile manufacturing

Speciality chemicals

Coatings/ paints/ dyes/ inks

Summary of IEEA Benefits..

A new ‘industry sector specific’ initiative - Stage 1 fully funded. Progress into Stage 2 is dependent upon success of Stage 1. Existing Carbon Trust offerings on a company/site basis e.g. carbon management, energy efficiency surveys, loans, R&D etc are not being withdrawn - the IEEA stands as a differentiated new offering. The programme has Government and Carbon Trust Board support – and substantial budget (£15 million) comparable to recent high profile initiatives Offshore Wind and Marine Energy Accelerators. Spend on Stage 1 typically the order of £135,000 per sector.Spend on Stage 2 could be £250,000 to £500,000 per project. We are looking to the Trade Associations and their Industry Members to take the lead – agree to collaborate, reach a consensus on your priorities, identify processes that you know need looking at, and if it fits the IEEA Framework [‘black box’, industry specific, replicable, cost-effective] we’ll resource it. It is an initiative that will be supported for at least three years. We are aiming to have 20 new sectors enrolled into Stage 1 by September 2010.

Nick Hall-StrideTechnology Acceleration Manager

T: 020 7832 4585nick.hall-stride@carbontrust.co.uk

IEEA@carbontrust.co.uk

The Carbon Trust, 6th Floor, 5 New Street Square, London EC4A 3BF