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Cleantech Capability Teams, 19th February 2013 Meeting

MINUTES Venue

TEAM VENUE DATE, TIME Manufacturing (MAN)

The offices of AusIndustry, Level 9, 63 Pirie Street,

Adelaide

3:00 - 5:00pm Tuesday

19 February 2013

Mining & Resources (MIN)

Built Environment (BE)

Developing Countries (DC)

Food & Beverage (F&B)

Registered Attendees TEAM MEMBERSHIP Name Organisation BE MAN DC F&B MIN IN PERSON 1. Marc Newson Cleantech Supplier Advocate 1 1 1 1 1 2. John O'Brien Australian CleanTech 1 1 1 1 1 3. Sean McDonald DIISRTE 1 1 1 1 1 4. Roger Carthew, Carthew Corporation Pty Ltd 1 1 1 1 1 5. Clementine Phelep Carthew Corporation Pty Ltd 1 1 1 1 1 6. Thomas Man Neuplex - WiSE Division 1 1 1 1 1 7. WT Lee Soniclean 0 1 1 1 0 8. Taffy Horwood SMAC Technologies 1 0 0 0 0 9. Don Perugini Intelligent Software Development 1 0 1 0 0 10. Julian Smith Soniclean 0 1 0 1 1 11. Andy Chambers Green Ochre 1 1 1 1 1 12. Kenneth Burt Thermoview 1 1 0 0 1 13. Marc Newson Cleantech Supplier Advocate 1 1 1 1 1 14 Mike Duggan EC3 Global 0 0 0 1 0 15 Rob Fischer IMAGINiT Technologies 1 1 1 1 1 16 Jan Antonides ELWA 1 1 1 1 1 17 Jeff Watson EYE Lighting 0 1 0 1 1 18 Phil Blythe GreenSync 1 1 0 1 1 19 Jenny Paradiso SunTrix 1 0 0 1 0 19 Geoff Fussell SunTrix 1 0 0 1 0 20 Garry Williams Prozess 1 1 1 1 1 21 Eddie Ivar ICN 22 Jo Galley DMITRE 23 Catherine Barnett FoodSA (SPEAKER) 24 Linda Kwok FoodSA 25 Katie Porter FoodSA 26 David Monck Enterprise Connect 27 Dr Rachel Sparks Flinders University

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TEAM MEMBERSHIP Name Organisation BE MAN DC F&B MIN 28 Aisha Sirop Flinders Partners 29 Nic Jacobson (CHAIR) 0 0 1 0 0 30 Mike Duggan (CHAIR) EC3 Global 0 0 0 1 0 31 David Buetefuer The Solar Project 1 1 0 1 1 32 Simon Kibble Adchem Australia (SPEAKER) 33 Paul White Zerella Fresh (SPEAKER) VIA TELECONFERENCE 18 17 14 20 16 34 Jürgen Schneider (CHAIR) Futuris Automotive 0 0 0 0 1 35 Dominic Da Cruz Enigin Western Australia 1 1 1 1 1 36 Erwin Boermans Comfortid.com Pty. Ltd. 1 0 0 0 0 37 Stuart Eastaugh F Cubed Australia 0 1 1 0 1 38 Ian Gardner AVT Services 1 1 0 1 1 39 Mike Sewell Enterprise Connect 0 1 0 1 0 40 Victor Hartig Optimal Group 1 1 0 1 0 40 TOTAL ATTENDING 22 22 16 24 20 APOLOGIES 41 Dexter Clarke (CHAIR) Futuris Automotive 0 1 0 0 0 42 Nick Christy CINTEP 1 0 0 0 1 43 Richard Maerschel Berryessa 1 1 0 0 1 44 Michael Cochran Ecco Consulting 1 0 1 0 1

44 TOTAL ATTENDING & APOLOGIES 25 24 17 24 23

236 REGISTERED TEAM MEMBERS 151 114 91 86 125 17%

% ATTENDING 15% 19% 18% 28% 16%

19%

% RESPONSES 17% 21% 19% 28% 18%

Team Member Growth

0

50

100

150

200

250

Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13

Number of Team Members

TOTAL TEAM BE TEAM MAN TEAM DC TEAM F&B TEAM MIN

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Meeting Notes Ref Topic Detail Action

1. Current & Future Activities

The Cleantech Capability Teams presented the activities that are currently planned and options for future activities, CURRENT ACTIVITIES

1. Clean Energy Council Workshops, Adelaide and Brisbane

o National Off-grid Mining Showcases - Adelaide 21st February, Brisbane 14th March

• AusIndustry Workshops, Adelaide o Adelaide 21st February – Food Industry o Adelaide 22nd February – Manufacturing Industry

2. Resource Industry Supply Chain Index Workshops

o Mining industry readiness workshop, to be held in Sydney and Melbourne 1Q13

3. Mining Australia Exhibition, Perth, 20 - 22 March 2013 o 20 companies exhibiting as part of the Cleantech Pavilion

4. Manufacturing Week Expo, 7-10 May 2013

o There are still a few opportunities remaining to be included in the Cleantech Pavilion at this event. Contact John O'Brien if you want to get involved.

FUTURE POSSIBLE ACTIVITIES

1. Potential IP Strategy Workshops to include: i. Business value of IP, ii. Overview of IP types iii. Sources of IP information. iv. Overview of IP strategy. By the end of the 3 hour workshop, participants will have:

Elucidated the business case for IP protection Recognised the most likely form for IP protection for new

technology Understood the implications of a competitor’s patent Developed an IP strategy for a hypothetical cleantech invention

The team members present were supportive of this initiative and this will now progress towards setting dates and advertising to members.

2. Potential Social Media Strategy Workshops

Participants would come away with:

• A clear understanding of PR, social media, content marketing, online marketing and website marketing.

• A clear understanding of the importance of marketing and the role it plays in growing successful companies

• How to use the latest marketing tools for investment attraction and

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Ref Topic Detail Action customer lead generation

• The best marketing strategies, tools and tactics for young Companies

• The top marketing essentials for companies short on time and funds

• How to use the most effective and proven tools and tactics as well as some of the latest options

The team members present were supportive of this initiative and this will now progress towards setting dates and advertising to members.

3. Potential Cleantech Pavilion at Total Facilities Expo, Sydney on 5-6 June and Melbourne on 10-11 September

The team members present were supportive of this initiative and further discussions will progress with the conference organisers on commercial terms.

4. Showhouse Opportunity in Shanghai

An opportunity for Australian cleantech companies to participate in the Eco House & Garden Cleantech Parkland in Shanghai, China. The project is managed by Eco Access (www.ecoaccess.com.au) with their partners House and Garden Building Materials Supermarket Ltd Co (Shanghai) (www.haoshijia.com.cn). Eco Access will present at the next meeting and more information on the opportunity can be DOWNLOADED FROM HERE. For more information email info@ecoaccess.asia

5. Gladstone Regional Workshops Exploring opportunities to deliver a workshop in Gladstone with the local government to access the large industrial projects in the region. Further information will be provided as it is developed. Members who expressed an interest in being involved were ELWA, EYE, GreenSync and Thermoview.

2. Meeting Presentations

The Combined Presentation Slides for all four presenters are attached to these minutes as Attachment 1 and are also available at: www.auscleantech.com.au/PDF/other/networks/Capability%20Teams/Feb-13%20-%20CCT%20Meeting%20Presentations.pdf

2.1 Meeting Presentation

1. Simon Kibble, GM, Technology & Development , Adchem Australia, Australia's Largest Copper Processing Plant: Cleantech Needs for Industrial Processing

The key points from the presentation were:

• Adchem installed an RO Plant 3 years ago to recycle its process wastewater and reduce the use of potable water by over 50%

• They delivered the project as a D&C contract with Osmoflo who now also undertake the O&M contract

• Residual water sent to evaporation ponds. This was a big capex cost as part of the project. For a future greenfield project, there would be a good

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Ref Topic Detail Action case for using technologies that could reduce the volume of residual water.

• The main driver for the project was both the rising cost of water and environmental improvements to the operations. The budgeted payback for the project was 6-7 years which meant that there had to be more than just economic reasons to do the project.

• The biggest challenge with the project has been the variable water quality which has increased operating costs with RO membrane life being reduced in some instances from the budgeted 3-5 year life to less than 1 year.

• Greatest costs for the operations are gas, labour and electricity. • One of the Energy Efficiency opportunities is the use of low grade waste

heat. o Have reviewed a number of options and likely to proceed with a

reciprocating cogen unit from Clarke Energy. o Reviewed ORC engines and found that there was a concern

regarding the lack of installation sin Australia and the company needs to have a simple, proven low risk operation with easy maintenance and spares available.

2.2 Meeting Presentation

2. Paul White, GM, Zerella Fresh, Leading Grower and Processor of Potatoes, Onions and Carrots: Cleantech Needs for Food Processing

The key points from the presentation were:

• Zerella operates 56,000 Ha of growing land • Mainly uses pivot irrigation systems • Annual bill for electricity, diesel and LPG = $5.6m • The company is always aiming to harvest at two locations

simultaneously for supply redundancy and reduce the risk of supply interruption.

• The processing plant is highly mechanised. • Operate lots of coolroom storage and currently exploring energy storage

using phase change materials and offpeak power • Farm equipment uses lots of diesel and LPG motors • One of the priorities for the company is increasing the utilisation of its

existing facilities. • Water is a big issue for the business. Aim to use only bore water and

treated wastewater with no take from River Murray water. This was undertaken primarily on the basis of supply risk management.

• Power outages can be a big issue. Recent power loss for 12+ hours at Virginia sheds lost produce worth over $100k.

• The company has an onsite manufacturing group that build machines to the company's specifications. They are also then built knowing that the same team has to maintain them so it ensures high quality.

• Company is not classed as a 'Manufacturer' by AusIndustry and so is ineligible for Cleantech Investment Program grants. This does not seem reasonable to the company.

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Ref Topic Detail Action

2.3 Meeting Presentation

Catherine Barnett, CEO, FoodSA, Business Case for Energy Efficient Equipment (BCEEE) Toolkit & Mentoring Program. The key points from the presentation were:

• The Food industry in general is very keen on cleantech solutions to help them reduce their costs and improve environmental outcomes.

• FoodSA has 200 members, having grown from just 70 in 2010 • FoodSA is unique in Australia with other food associations just covering

a small region or a specific food type. • There is a view that 'it's got to be a crisis for people to pay attention to a

specific issue'. The current circumstance of rising costs and strong dollar is a crisis for many in the food industry and so now is the opportunity to provide education and solutions on resource efficiency and cleantech.

• FoodSA is delivering a program of enterprise level consulting to help companies identify opportunities for savings. This is being used in preference to running workshops as it is more effective for those involved.

• Major cleantech related issues for members include: o The phasing out of R22 refrigerant o Capturing waste heat from processing o Cooking with increased energy efficiency o Trade waste and the risks of onsite treatment through DAF

plants. What other solutions exist? o Access to finance for upgrades

• Concern over availability of Food & Foundries Grant money availability. FoodSA is encouraging its members to apply as soon as possible.

3. Membership

• Good growth in team membership

since last meeting with an additional 14 organisations joining since the December meetings.

• Current team member locations: State/Territory

ACT 7 NSW 54 NT 5 QLD 44 SA 43 VIC 55 WA 28 Total 236

• Current team member sectors: Sector

Renewable Energy 37 Energy Efficiency 34 Air Quality 1 Water 16 Waste and Remediation 8 Green Buildings 30 Energy Storage 1 Transport Fuels & Technologies 7 Environmental Services 8 Carbon Offsets 5 Engineering & Project Management 25 Research 6 Government 22 Customer 6 Internal Services 30 Total 236

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Ref Topic Detail Action

4. 2013 Meeting Schedule

The 2013 meeting schedule is as follows: • 11 April in Sydney • 12 June in Melbourne • 20 August in Perth • 14 November in Brisbane

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ATTACHMENT 1 - Slides from Meeting Presentations

Simon Kibble, GM, Technology & Development, Adchem Australia

Australia's Largest Copper Processing Plant Cleantech Needs for Industrial Processing

PRESENTATION

2/21/2013

1

ADCHEM (AUSTRALIA)Pty Ltd

Manufacturers of copper chemicalsfor the global market

ISO 9002 quality accredited.

F12 Annual Sales

Copper Oxide (CuO) 10,200 mt

Basic Copper Carbonate (BCC) 1,200 mt

ADCHEM AUSTRALIA

2/21/2013

2

Commenced manufacturing in SouthAustralia in 1970

Largest production facility for CuO in theworld. Utilises ammonia leach technology.

Single leach circuit for both products.

Consumes 800 KL water per day.

54 employees in Burra.

ADCHEM AUSTRALIA

2/21/2013

3

Supply copper chemicals to over 25 countries

Major markets include USA, Europe,Australia/NZ, Asia & South America.

Major applications include Timberpreservation, agriculture, catalyst,electronics & chemical production

Privately owned and operated.

ADCHEM AUSTRALIA

2/21/2013

4

Adchem Reverse OsmosisWastewater Treatment Plant

2/21/2013

5

Water Source•process wastewater at pH 10•containing NaCl (3500 ppm) & NH3 (500 ppm)

Osmoflo Design & Construct• microfiltration/ reverse osmosis• 700 KL per day capacity (July 2012)• 87.5% recovery•Adchem owned, Osmoflo O & S Agreement

Reject Stream• ~100 KL per day @ 22,000 ppm• evaporation ponds

ROWTP – Evaporation Ponds

- 2 ponds @ 160 by 120 by 1.5m- evaporative capacity 100 KL/ day average

2/21/2013

6

0.0

50.0

100.0

150.0

200.0

250.0

300.0

F09 F10 F11 F12 F13

Q4

Q3

Q2

Q1

SA Water Consumption - Last 5 YearsML per quarter

Project Outcome• 55% reduction in mains water consumption• improved steam raising• further optimisation ongoing

Project Challenges• water source not constant• membrane life- consumable?• maximise use of resource

Other Challenges• energy/ carbon tax•Cogen/ efficiency improvements

Paul White, GM, Zerella Fresh Cleantech Needs for Food Processing

PRESENTATION

February 2013

PYE Business Magnitude

2

South Australia Victoria NSW Tasmania New Zealand

510 Employees

135,000 T pa 65,000 T pa 55,000 T pa

21,500 head

56,000 Hectares 150,000 units/week

31,000 head 5,400 head 5400 Hectares

3,000 T pa

Major Land Holdings

3

PYE Group Land Equivalent

4

5

6

7

BIN TIPPER

Chain & hydraulic driven system complete with position detection sensors 8

9

STONE REMOVER

Aerated “spa”, complete with conveyors. Potatoes float across whilst stones sink to bottom

10

WASH BARREL

Rotating water filled barrel to remove dirt

11

VEGETABLE POLISHER

A series of brusher shafts rotate in opposite direction to the barrel to polish the skin of the potatoes, remove matter from potato eyes and brush skin from carrots

12

HYDRO COOLER

Produce travels through a chamber where chilled water is circulated across chiller coils and over produce to lower the temperature and extend shelf life

13

OPTICAL SIZING & DEFECT GRADING

State of the art computerised grading system, which allows operator to designate the target size & quality for each packing station. Photos are taken of each piece and then a sophisticated distribution system allocates each piece to nominated conveyor

14

CONVEYOR SYSTEM

Extensive conveyor systems carry produce throughout the process

15

WEIGHHEAD & PACKING

Produce is weighed, packed and then check weighed

16

OTHER WEIGHING & PACKING STATIONS

17

EXTENSIVE COOL ROOMS

18

ENGINNERING WORKSHOP

Full equipped & professionally staffed workshop which designs, manufactures & maintains the majority of equipment in Zerella’s operations. 3rd party commercial work is also performed to provide a source of income

Catherine Barnett, CEO, FoodSA, Business Case for Energy Efficient Equipment

(BCEEE) Toolkit & Mentoring Program.

PRESENTATION

Food South Australia Recipient of the Energy Efficiency Information Grant (EEIG)

Business Case for Energy Efficient Equipment (BCEEE) Toolkit & Mentoring Program.

Catherine Barnett

Chief Executive Officer

Discussion items for today

• What is Food SA? • Food SA and Zero Waste SA

• What are we developing for the SA food industry? •Participation •Key Issues •The challenge for you •The challenge for all •Where we expect to go

Introduction • Food SA is South Australia’s peak food industry association.

• Membership based and funded, including corporate sponsors and partners with State and Federal governments.

• Provides specific industry services and programs.

• Represents over 200 members (manufacturers, high value adding producers and service providers).

•We champion for the SA food industry.

What does Food SA offer?

•Food SA offers a wide range of services and programs to assist members and the wider SA food industry to become sustainable and profitable businesses.

• Food SA is the first point of contact for the industry from start up business to mature food manufacturers.

Environmental Partnerships Zero Waste SA supported the development of the ‘Guide to Sustainable

Business in Food’. The guide is available online and as a hard copies.

http://foodsouthaustralia.com.au/wp-content/uploads/2012/06/foodsa_sustainableguidetofoodbusiness.pdf

The guide can help new or existing food processing and food manufacturing businesses to adopt and practice environmental sustainability for their business.

In 2012 Food SA was awarded an EEIG with support from Zero Waste SA.

What are Food SA doing with the grant? A toolkit is being developed to guide the industry as follows:

a. How to undertake self guided, level 1 energy audits.

b. Ability to identify energy efficient equipment upgrades.

c. Determine the business capability to fund and implement the equipment upgrades.

In addition, mentoring is available to build a business case and determine Clean Technology Food and Foundry Investment Program eligibility.

Participation • 26 Companies engaged in the program.

• 400 consultation hours assigned for one on one mentoring

• 3 Clean Tech Food and Foundry applications submitted and 1 approved so far.

Industry sectors represented

- Seafood - 6 companies

- Meat and Smallgoods - 4 companies

- Bakery and Baked Goods – 5 companies

- Dairy, Drinks, Fruit and Veg – 5 companies

- Speciality Condiments, Jams - 6 companies

Key Issues - 1

1. Refrigeration systems • R22 Refrigeration phase out by 2015

• Businesses cannot articulate their needs and suppliers/providers are not able to provide accurate data

• Commercial decisions are often made on assumptions by the supplier

• Industry wide issue

Key Issue - 2

2. Accessibility to hot water and the costs associated with hot water usage. - Capturing waste heat

- Cost of heating water

- Largest area of concern is with meat processors

Key Issue - 3

3. Cooking – ovens and kettles • Accessibility of new oven technology

• Upgrading to new ovens – vacuum cooking

• General efficiency and economics need to be weighed up

• Affected industries include, condiments, packaged meals, drinks, sauces

The challenge for you

• Trade Waste issues – (not related to energy efficiency BUT has COST restrictions for business)

• Commercial decisions are often made on assumptions by the supplier

• High cost of DAF plants

• What information does the business need to supply to get the most cost effective, energy efficient solution

The challenge for all

• Access to finance

• Rapid increases in electricity prices and other utility costs

• Increasing high cost of manufacturing and processing – labour and resources

Industry involvement • The BCEEE aims to reach a large proportion of the food

businesses listed in South Australia

• We anticipate that up to 70% of companies engaged will apply for Clean Technology Food and Foundries Program Grants

• the BCEEE toolkit can help the food industry to be better

prepared for future plants and equipment replacements to become sustainable

Thank you