waitrose innovation forum presentation

1 Waitrose Innovation Forum – 17th Feb 2010

Energy efficiency in protected cropping

Chris Plackett


Things we do• Energy Services

– Energy contract finder– Energy contract management

• Advice & Consultancy– Energy audits– Project management

• Climate Change Levy– Horticultural Agreement

Administration

• Near Market R&D– Development & field testing of new

energy techniques


A few questions?

• Why is energy efficiency important?

• How efficient are we now?

• How efficient can we get?

• What tools can we use?


GHG Emissions Analysis

CO2, 9%

Methane, 38%

Nitrous Oxide, 53%

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Relative Importance of Emissions from Agriculture“The errors in national

inventories of gaseous emissions from agriculture are typically about 30%” 1

1 Williams, A.G., Audsley, E. and Sandars, D.L. (2006) Determining the environmental burdens and resource use in the production of agricultural

and horticultural commodities. Main Report. Defra Research Project IS0205. Bedford: Cranfield University and Defra


Why PC is different

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Greenhouse gas equivalent CO2 emissions

CH4

N2O

C02


• UK PC Horticulture’s energy saving record since 2004– 22% energy saving– £34 million cost reduction– Data from Climate Change Levy

PC’s success to date?


Current & future issues?

• Energy costs– Volatility

• Energy taxation– Carbon reduction incentives

• ‘Carbon Footprint’– Easy to calculate the impact of energy saving

• Develop a sustainable business for the future?– Alternative energy systems– Move away from fossil fuels?


Review of energy prices


Future Prices – Gov’t projections


How efficient are we now?

Mix & Misc

Other Edibles

Young

Ornamentals etc.

Cucumbers

Tom, Cuc, Pep

Tomatoes

Mushrooms

All

30.0 60.0 120.0 240.0 480.0 960.0

Range of Specific Energy Consumption (SEC) for different Grower Categories

1st quartile 2nd quartile 3rd quartile 4th quartile

SEC kW/m2 per annum


1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 330

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800

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1000

Annual Energy Use of Sites in the Tomato Sector

small sites medium sites large sites

Position

kWh/

m2


Typical performance?

• Boiler only sites*– Range 398 to 675 kWh/m2

– ‘Best Practice’ = 426 kWh/m2

– Upper Quartile Average = 630 kWh/m2

Data from Climate Change Levy Returns. ‘Whole business’

consumption for tomato only sites

• What about a Dutch Nursery?– Range = 390 to 490 kWh/m2


• Evolution– Refine our existing knowledge– Develop the tools we have now

• Revolution– Sealed greenhouse systems– Advanced heating & cooling

systems

Evolution or revolution?


• Dutch project with tomatoes– 250 kWh/m2/year gas use– 60 kg/m2 yield– Mission accomplished in 2009

• How?– Double / triple screens– “Relaxed” humidity control– Intelligent CO2 enrichment policy

• “Alternative” CO2 sourcing

How far can we go?


• Single screens only• ‘Conservative’ with humidity control• Some progress on CO2 dosing

– But where are the alternatives?– Particularly problematic with renewable energy

So evolution still has much to offerBut the returns are getting progressively smaller

What about the UK


• Ducted Air Systems– Seen in sealed greenhouse– But have a role in conventional systems

• Why?– More uniform greenhouse conditions– Quicker response– Save energy– More crop?

Evolving technology


• HDC Project at Mill Nurseries, Humberside– Side by side comparison of 2 x 1 Ha greenhouse

blocks– 3 year project

• Challenges!– Operation & control– Temperature uniformity– Electricity costs

Do they work?


• 13% heat saving – 59 kWh/m2 gas use reduction

• 7.6% yield increase

• But……….– 11 kWh/m2 additional electricity use

• Double the electricity use in a conventional greenhouse

– Temperature uniformity problems

Verdict …..the potential is on show, but can do

better!

End of Term Report - Year 2


• Ducted systems can make better use of lower grade heat sources– Important for alternative & renewable energy sources

Using lower grade heat


Where in the future?

Use less?or

Generate?


Save it v Generate it

• The business case; save or generate?– whatever is cheaper !

• The environmental case; save or generate?– whatever is cheaper !

• So the case is just the same

“Exploiting the synergy between PC energy

demands and alternative energy could be the

key to a sustainable future…..”


Assess ‘whole life’ returns

Capital cost

Energy price

Management

Work rate

Payback


• Until recently energy prices have favoured energy efficiency

• First came ROCs– Designed to increase the returns for

renewable electricity generators• Now we have Feed in Tariffs (FIT’s) & the

Renewable Heat Incentive (RHI)– Multiplying returns by up to 6x ?

The effect of energy price


Feed In Tariffs (FITs)

• Disadvantage of ROCs– Seen to be for the ‘big boys’– Complex administration– Perceived lack of support for

smaller projects• FITs

– Simple– Stability / certainty of income– Start in April 2010


How FITs work

Mains import25,000kWh

11kW TurbineGenerate

25,000kWh

Used on site10,000kWh

Export to mains

15,000kWh

Mains import15,000kWh

FIT paid on all of this


Proposed Generation Tariffs


Renewable Heat Incentive

• Due to start April 2011• Will pay a tariff on heat generated

– Banded rates based on technology• Consultation document published in January

2010• Designed to give ROI of 12% or better


Proposed RHI Rates


For larger sites


Biomass example

• 1MW boiler and ancillaries costing £250,000– Operating for 3,000 hours per year

• Requires 700 Tonnes of woodchips / year (£75/t – 2.2p/kWh)– Cost = £65,000

• Savings in gas purchase costs @ 2.0p/kWh– =£59,000

• Benefit = - £6,000: Not viable• With RHI

– @ 1.6p/kWh, RHI payments = £47,272– payback = 5.3 years


Management

• We conveniently forget about maintenance and management – But Nothing is maintenance and management free

Technology Utilisation

Digester & biomass boiler High

Wind Medium

Photovoltaics Low


Pulling it together

• The winner has always been energy efficiency– But returns are limited to a proportion of what

you use– Law of diminishing returns applies

• And NOW – the playing field has changed– Feed in Tariffs (FIT’s)– Renewable Heat Incentive (RHI)


Summary

• Energy has a role for GHG savings for PC– It makes business sense– It makes environmental sense– It is the key to a sustainable future

• Consider both energy saving and renewable generation technologies– Be realistic and even handed– Do your homework and consider whole life costs

and returns• Think to the future – can energy get cheaper?


Thank you & any questions

waitrose innovation forum presentation

Technology

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alternative energy systemsmove

review of energy prices

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