gills onions sustainability marketing and communications: 2009 - 2010

Sustainability in Marketing & Communications

for Gills Onions2009 - 2010

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“Gills Onions is committed to continuous process

improvement in all areas of Sustainability as we enter the second decade of the century. Achieving Zero Waste, improving Water Conservation, and even

developing effective Nutraceuticals from onion waste are all achievable

goals in the near term. We’re excited about our future.”

Steve GillCo-Founder Gills Onions

2009 Highlights

2009 Highlights

Event/Launch

Presentations

NET WT 7 oz (198 g) Product of USA

Grower Direct



Fresh DicedYellow Onions

Fresh DicedRed Onions

Fresh DicedCelery &Onions



Fresh SlicedRed Onions

Fresh SlicedSweet Yellow Onions

Grower Direct Grower Direct

Grower DirectGrower DirectThis container is made from eco-friendly, recyclable PLA material derived from plants, not oil - to reduce fossil fuel use and Green House Gas (GHG) emissions.It will biodegrade when composted and can be used as a valuable soil amendment.

Gills Onions is a 25-year old, family owned and operated grower and food processor with the largest fresh onion processing plant

in the world. Through our Sustainability efforts, we’ve reduced our Green House Gas (GHG) emissions by up to 30,000 tons per year – roughly equivalent to the annual GHG emissions of 5,000 cars.

For more about our Sustainability efforts,visit www.gillsonions.com/sustainability.

Oignons jaunesfrais, en désFresh DicedYellow Onions

Céleri et oignonsfrais, en désFresh DicedCelery & Onions

Oignons rougesfrais, en désFresh DicedRed Onions

Cultivateur direcGrower Direct



Gills Onions Sustainability efforts have reduced our Green House Gas (GHG) emissions by up to 30,000 tons per year. For more about our Sustainability efforts, visit www.gills onions.com/sustainability.

Les initiatives de Gills Onions en matière de durabilité lui ont permis de réduire ses émissions de gaz à effet de serre jusqu’à concurrence de 30

000 tonnes par année. Pour des renseignements sur ces initiatives, rendez-vous à www.gillsonions.com/sustainability.

This container is made from eco-friendly, recyclable PLA material derived from plants, not oil - to reduce fossil fuel use and Green House Gas (GHG) emissions. It will biodegrade when composted and can be used as a valuable soil amendment.

Ce contenant est fait de PLA, matériel recyclable et respectueux de l’environnement dérivé de végétaux, et non du pétrole, ce qui permet de réduire l’usage de ce

combustible fossile ainsi que les émissions de gaz à effet de serre. Biodégradable et

198g Product of U.S.A. Produit des E.-U. 198g Product of U.S.A. Produit des E.-U. 198g Product of U.S.A. Produit des E.-U.

compostable, le contenant pourra servir à l’amendement du sol.Grower DirectThis container is made from eco-friendly, recyclable PLA material derived from plants, not oil - to reduce fossil fuel use and Green House Gas (GHG) emissions.It will biodegrade when composted and can be used as a valuable soil amendment.

Gills Onions is a 25-year old, family owned and operated grower and food processor with the largest fresh onion processing plant

in the world. Through our Sustainability efforts, we’ve reduced our Green House Gas (GHG) emissions by up to 30,000 tons per year – roughly equivalent to the annual GHG emissions of 5,000 cars.

For more about our Sustainability efforts,visit www.gillsonions.com/sustainability.


Fresh OrganicDiced YellowOnions

113301-20110Die: R1659/ U/W#: 3

Size: 3" x 3"MTRL: SEMIGLOSS

PAPER/FREEZER

BLACK 099RED PMS 485

GREEN PMS 348YELLOW PMS 124

AF56262 GILL’S ONIONS 6/02/10

Fresh DicedCelery & Onions

Céleri et oignonsfrais, en dés

Fresh DicedCelery & Onions

Céleri et oignonsfrais, en dés Grower Direct

Cultivateur directGrower Direct

Cultivateur direct

Ingredients: Celery, Onions - Ingrédients: Céleri, OignonsIngredients: Celery, Onions - Ingrédients: Céleri, Oignons198g Product of U.S.A. Produit des E.-U.198g Product of U.S.A. Produit des E.-U.

Keep Refrigerated – Garder au réfrigérateurGILLS ONIONS OXNARD, CA, USA 93030

Keep Refrigerated – Garder au réfrigérateurGILLS ONIONS OXNARD, CA, USA 93030

Retail Packaging

FRESHONIONS

Grower Direct

FRESHONIONS

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to Gills Onions in Oxnard, CA for the unveiling of our new Advanced Energy Recovery System (AERS)

See the first fresh cut onion processing facility in the worldto produce ultra-clean energy on-site from its own waste!

Friday, July 17th, 2009 • 8:30 AM - 2:00 PM

Check In/Breakfast Reception: 8:30 – 9:30Program Begins: Promptly at 10AM

Welcoming Remarks and Introduction of Honored Guests by:Steve Gill - Co-Founder, Gills Onions

RemarksNikki Rodoni - Sustainability Coordinator, Gills Onions

Remarks and Introduction of:Linda Adams - California Secretary of EPA

AG Kawamura - California Secretary of AgricultureHal Synder - Sempra Energy Utilities

Gills Onions Video TourAward Presentations:

Bill Deaton, Deaton and Associates, Nikki Rodoni, Gills OnionsRibbon Cutting: 12:00 PM

Informal Project ToursLunch: Begins at 12:30 PM

Entertainment: Mariachi Band throughout the afternoon

By Invitation OnlyPlease RSVP by July 3rd to: Nikki Rodoni, Sustainability Coodinator, (831) 771-0699,

[email protected], Lodging, etc. - http://www.gillsonions.com/eventinfo

A Zero Waste EventThe AERS unveiling event is sponsored by: Biothane, Deaton and Associates, EventRents, Farm Credit West,

FuelCell Energy, Hartigan/Foley, HDR, Vantage Point Media and Westlake Marketing Works.

Gills Onions is 25-year old, family-owned and operated grower and food processor devoted to achieving maximum levels of energy efficiency, waste reduction and water conservation

through sustainable business practices and technology.

The AERS project is a sustainable waste-to-energy solution, allowing Gills Onions to convert 100% of 150 tons a day of onion processing waste into ultra-clean, renewable energy and

high-value cattle feed, eliminating up to 30,000 tons per year of CO2 equivalent emissions and providing up to 100% of our base-load electricity requirements – 600 kW.

With virtually no GHG emissions, the AERS project provides for annual savings of $700,000 in electricity costs as well as $400,000 annual savings in diesel fuel to haul the waste for land

application – making this waste-to-energy solution a successful model for Sustainable Agriculture and Food Production facilities worldwide.

800-348-2255 • 1051 S. Pacific Avenue, Oxnard, CA 93030 • www. gillsonions.com

Gills Onions Video TourAward Presentations:

Bill Deaton, Deaton and Associates, Nikki Rodoni, Gills OnionsBill Deaton, Deaton and Associates, Nikki Rodoni, Gills OnionsRibbon Cutting: 12:00 PM

Informal Project ToursLunch: Begins at 12:30 PM

Entertainment: Mariachi Band throughout the afternoonEntertainment: Mariachi Band throughout the afternoonEntertainment: Mariachi Band throughout the afternoon

By Invitation OnlyPlease RSVP by July 3rd to: Nikki Rodoni, Sustainability Coodinator, (831) 771-0699, Please RSVP by July 3rd to: Nikki Rodoni, Sustainability Coodinator, (831) 771-0699, Please RSVP by July 3rd to: Nikki Rodoni, Sustainability Coodinator, (831) 771-0699,

[email protected], Lodging, etc. - http://www.gillsonions.com/eventinfoDirections, Lodging, etc. - http://www.gillsonions.com/eventinfo

A Zero Waste EventThe AERS unveiling event is sponsored by: Biothane, Deaton and Associates, EventRents, Farm Credit West, The AERS unveiling event is sponsored by: Biothane, Deaton and Associates, EventRents, Farm Credit West,

FuelCell Energy, FuelCell Energy, Hartigan/Foley, HDR, Vantage Point Media and Westlake Marketing Works.

Gills Onions is 25-year old, family-owned and operated grower and food processor devoted to achieving maximum levels of energy efficiency, waste reduction and water conservation

through sustainable business practices and technology.

The AERS project is a sustainable waste-to-energy solution, allowing Gills Onions to convert 100% of 150 tons a day of onion processing waste into ultra-clean, renewable energy and

high-value cattle feed, eliminating up to 30,000 tons per year of COproviding up to 100% of our base-load electricity requirements – 600 kW.

Miscellaneous Communications

Sales Materials

Advanced Energy Recovery System (AERS)Ribbon Cutting Ceremony Agenda

Friday, July 17th, 2009 • 8:30 AM - 2:00 PM

Check In/Breakfast Reception: 8:30 – 9:30Program Begins: Promptly at 10AM

Welcoming Remarks and Introduction of Honored Guests by:Steve Gill - Co-Founder, Gills Onions

RemarksNikki Rodoni - Sustainability Coordinator, Gills Onions

Remarks and Introduction of:AG Kawamura - California Secretary of Agriculture

Linda Adams - California Secretary of EPAHal Snyder - Sempra Energy Utilities

Gills Onions Video TourAward Presentations - Bill Deaton, Deaton and Associates, Nikki Rodoni, Gills Onions

Ribbon Cutting: 12:00 PMInformal Project Tours

Lunch: Begins at 12:30 PM

Entertainment: Mariachi Band throughout the afternoon

Professional Energy SolutionProusysSouthern California EdisonSouthern California Gas CompanyUniversity of California, Davis

BiothaneCalifornia Energy CommissionCity of OxnardDeaton & AssociatesFarm Credit West

Fuel Cell EnergyGas Technology InstituteGill OnionsHartigan & FoleyHDR

Advanced Energy Recovery System (AERS)

Printed on recycled paper

Gills Fresh-Cut Sweet Onions are known for their mild, even sugary, taste and are now available from April through September. They’re California grown to provide the ultimate in fl avor, quality and convenience. It’s like giving your customers fresh, wholesome Farmer’s Market produce every day of the week.

GROWER DIRECT

1-800-348-2255 • www.gillsonions.com©Gills Onions, LLC 1051 South Pacifi c Avenue, Oxnard, CA 93030 USA

Grower Direct – Gills Onions, established in 1983, is a family-owned business that grows and operates the largest, most state-of-the-art, sustainable fresh onion processing plant in the world.

• Unsurpassed fl avor and quality

• Convenient, eco-friendly, compostable packaging

• If your customers are still cutting onions, it’s a crying shame!

FreshSliced Onions

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Gills Onions introduces its next generation of Eco-Friendly PLA packaging in a smaller size to give your customers more convenience and better value, and to give you more profi ts and a sustainable solution for produce marketing and sales.

Now you can capitalize on the increasing consumer demand for green and sustainable produce by carrying our Fresh Cut Onions. Quality, Convenience, and Value from the nation’s leading grower and processor of fresh cut onions to help you build

high-margin sales while helping the planet. To learn more, visit us at PMA Booth #3082.

*PLA packaging is just one of our many Sustainability efforts to reduce

Green House Gas (GHG) emissions, conserve water, reduce energy

consumption, protect valuable farmland, and reduce waste.

Visit: www.gillsonions.com/sustainability.

For more information or to place orders please call: 800-348-2255 • www.gillsonions.com1051 South Pacifi c Avenue, Oxnard, CA 93030

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New, Eco-FriendlyPackaging For the Ultimate inConvenience Profi ts, and Sustainability.*

Fresh Cut,Grower Direct Onions

Gills Onions introduces its next generation of Eco-Friendly PLA packaging for Canadian Retailers in a smaller size to give your customers more convenience and better value, and to give you more profits and a sustainable solution for produce marketing and sales.

Now you can capitalize on the increasing consumer demand for green and sustainable produce by carrying our Fresh Cut Onions. Quality, Convenience and Value from the world’s leading grower and processor of fresh cut to help you build high-margin sales while helping the planet.

The Ultimate Convenience

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New, Eco-Friendly Packaging

For the Ultimate in Convenience

Profits, and Sustainability.* Fresh Cut,Grower Direct Onions for Canadian Retailers

DICED YELLOW ONIONSGreat for any cooking needs including any recipe calling for chopped or diced onions.Fresh onions spice up any recipe.UPC# 6 43550 00044 3diced onions.Fresh onions spice up any recipe.

DICED RED ONIONSGreat for stews, soups, chili and other homemade sauces. Top a baked potato or

add color and texture to tuna, chicken or seafood salads.UPC# 6 43550 00045 0

DICED CELERY & ONIONSGreat for stuffing, tuna salad, stir fry, salad, meatloaf, dips, potato salad & other picnic salads.UPC# 6 43550 00046 7

Gills Onions lance sa nouvelle génération d’emballages en PLA, respectueux de l’environnement et destinés aux détaillants du Canada. De taille réduite, ils procurent à vos clients commodité et valeur accrues, et vous offrent une solution durable pour le marketing et la commercialisation de produits frais.

Vous pouvez désormais tirer profit de la demande croissante de produits écologiques témoignant de méthodes durables en offrant nos oignons frais coupés. Le premier producteur-transformateur de produits frais coupés au monde vous offre qualité, commodité et bon rapport qualité-prix pour vous aider à obtenir une marge élevée tout en contribuant à la santé de la planète.

Le maximum de commodité

De nouveaux emballages

respectueux de

l’environnement pour un

maximum de commodité,

de profits et de durabilité.*Des oignons frais coupés pour les détaillants du Canada, directement du producteur.

en contribuant à la santé de la planète.

Le maximum de commodité

OIGNONS JAUNES EN DÉSDans un format idéal pour la cuisine, en particulier pour les recettes exigeant des oignons en dés ou hachés. Les oignons frais relèvent le goût de tous genres de plats.CUP 6 43550 00044 3oignons en dés ou hachés. Les oignons frais relèvent le goût de tous genres de plats.

OIGNONS ROUGES EN DÉSExcellents dans les ragoûts, les soupes, les sauces chili et d’autres sauces

maison. Ils peuvent garnir les pommes de terre cuites au four ou ajouter couleur et texture aux plats de thon et de poulet ou aux salades de fruits de mer.

CUP 6 43550 00045 0

CÉLERI ET OIGNONS EN DÉSMélange idéal pour les farces, les salades de thon, les sautés, les salades de légumes, les pains de viande, les salades de pommes de terre et autres salades à déguster en pique-nique.CUP 6 43550 00046 7

FINI LEGASPILLAGE!

Advertising/Marketing

Gills Fresh Cut Onions are California grown and available at your local retailer to provide the ultimate in fl avor, quality and convenience. It’s like having access to fresh, wholesome Farmer’s Market produce every day of the week.

• Unsurpassed fl avor and quality

• Convenient, Eco-friendly, compostable packaging

• Doing business in Ventura County since 1983

GROWER DIRECT

1-800-348-2255 • www.gillsonions.com

©Gills Onions, LLC 1051 South Pacifi c Avenue, Oxnard, CA 93030 USA

Grower Direct – Gills Onions, established in 1983, is a family-owned business that grows and operates the largest, most state-of-the-art, sustainable fresh onion processing plant in the world.

COME TELL US WHERE YOU SHOP

AND WIN AN iPad!

Peeling Onions is a Dirty Job -

Let Gills do it for you!

Gills Fresh Cut Onions are California grown and available at your local retailer to provide the ultimate in fl avor, quality and convenience.

GILLS ONIONS SUSTAINABILITYWaste-to-Energy: The Advanced Energy Recovery System (AERS)

SUSTAINABILITY - NOW AND FOR THE BENEFIT OF FUTURE GENERATIONS

Executive Summary

On July 17, 2009, our Advanced Energy Recovery System (AERS) became fully operational, making Gills Onions the first food processing facility in the world to produce ultra-clean energy from its own onion waste. The genesis for this energy-saving concept actually began with the founding of Gills Onions in 1983, when La Victoria, a jarred salsa manufacturer, asked us to provide diced onions for its products. We developed propriety equipment, processes and a facility to peel, slice, dice, and deliver the first fresh-cut onions.

When an onion is peeled, 35 – 40% is waste. We generate up to 300,000 lbs of onion waste per day. 75% of this waste is extracted by the AERS as juice and transformed into energy using a high-rate anaerobic digestion system to produce methane-rich biogas that powers two 300-kilowatt fuel cells. The remaining 25% of the waste is compressed fibrous solids we sell as high value cattle feed.

The result: AERS converts 100% of our daily onion waste into ultra clean, virtually emissions-free electricity to provide up to 60% of our annual power requirements at our Oxnard facility – enough to power 460 homes annually. The AERS combines energy and waste reduction goals into a successful model for Sustainable Agriculture and Food Production facilities worldwide.

The AERS is a solution to some specific environmental issues for Gills Onions:

• Energy Efficiency – according to UC Davis, food processing is the third largest industrial energy user in the state. Electricity prices are a significant cost factor for Gills Onions as our processing facility requires extensive cooling and refrigeration.

• Waste Reduction - Prior to AERS, Gills Onions followed industry practice of hauling and spreading the waste in the field. Such disposal practices produce GHG’s, create odors, attract pests, and may eventually lead to groundwater contamination.

• GHG emissions reduction compliance – the AERS allows us to success fully address AB32 – California Global Warming Solutions Act of 2006 and Executive Order S-06-06 – BioEnergy Action Plan for Biomass to Electricity and for Biofuels.

For more information:

1-805-240-1983Fax: 1-805-240-1932www.gillsonions.com

Recognition:

• Winner of the 2009 Governor’s Environmental and Economic Leader ship Award (GEELA), California’s highest and most prestigious environmental honor

• Recipient of the 2010 Green California Leadership Award at the Green California Summit and Exposition on March 30, 2010

• American Council of Engineering Companies (ACEC) awarded our AERS project its celebrated Grand Conceptor Award on April 27, 2010

• Go to: www.gillsonions.com/validation for other awards and recognition received for the AERS

GILLS ONIONS SUSTAINABILITYWater Conservation


Executive Summary

Less than 1% of the planet’s water is availabe for human use: to grow crops, cool power plants, and supply drinking & bathing water for households. Of the available fresh water, two-thirds is used to grow food. Given that our growing and processing operations not only depend on this precious resource, but are located in an increasingly water-challenged region of the world, Gills Onions embarked on a multi-tiered water conservation effort several years ago.

Over the years we have converted 99% of our conven-tional irrigation methods to drip irrigation, reducing water consumption by 40%. Next, as part of our 2009 Zero Waste initiative, we quantified our water consumption and wastewater discharges at our Oxnard processing, warehouse, and office facilities. Finally, as part of a new Sustainable Farming Strategies program in concert with the Bren School of Environmental Science & Management at the University of California Santa Barbara, we are mea-suring the water inputs of our current farming operations - quantity, sources, irrigation practices – including water quality issues and water consumption.

The result:



Other Key Facts

• There are 9.25 million trillion gallons of fresh water on the planet. Nearly 70% of it is locked in snow and ice. 30% of it is in groundwater aquifers. 0.3% of it is in lakes, rivers, and wetlands – and includes water in plants, animals, and the atmosphere.

• 83 million more people are added to the Earth each year

• California’s population is expected to grow from 38 million residents in 2010 to over 50 million by 2040

• Americans use on average 100 gallons of water at home each day

• Drip irrigation conserves enough water in our fields to meet the annual needs of 2,400 homes in California

• Development of water conservation measures to decrease water consumption at our Oxnard facility by 30% in 2010

• Reuse of 10 million gallons of water at our Oxnard facility in 2010

• Potential annual savings of $215,000

• Anticipated recommendations by 2011 for Gills Onions and other California growers to reduce their environmental impacts and water consumption in their farming operations

Next Steps:



• California’s population is expected to grow from 38 million residents in 2010 to over 50 million by 2040

• Americans use on average 100 gallons of water at home each day

GILLS ONIONS SUSTAINABILITYZero Waste: Sustainable Innovation and Waste Management


Executive Summary

At Gills Onions, sustainability means taking full responsibility for identifying reduction and diversion opportunities for all materials produced or consumed in our operational processes. To this end, we set a goal of achieving zero waste in our processing, warehouse, and office facilities in Oxnard, California by 2010. Zero waste creates the framework for us to lower our costs, minimize our waste, and reduce our greenhouse gas emissions.

Through a partnership with the Bren School of Environmental Science & Management at the University of California, Santa Barbara, we created a comprehensive inventory of all our waste streams and developed strategies to move us closer to our zero waste goal. As a result of this collaboration, we were able to establish the baseline of waste generation, quantify our usage of materials, expand our waste reduction initiatives and implement a comprehensive recycling program.

At Gills Onions, onion waste represents 99 percent of the solid waste generated. This waste stream is being diverted from disposal to create renewable energy and nutritive cattle feed. Although material waste comprises only 1 percent, we are implementing strategies to reduce, reuse, or recycle this waste. We set a target to double

landfill diversion of material waste to 50 percent by 2010 and to reduce the overall amount of waste generated by at least 10 percent.

The result:

We estimate that by implementing a comprehensive recycling program, expanding our waste reduction initiatives and quantifying material use, waste diversion will amount to 99.5 percent by the end of 2010. According to the results from a waste characterization conducted in January 2010, we are on target to achieve our goal: material waste has declined by 12 percent, diversion from landfill has increased from 25 percent to 53 percent, and 100 percent of our onion waste (1.5 million pounds per week) is being diverted from disposal to create renewable energy and nutritive cattle feed.



Further reduction of landfill waste:

All of our retail packaging has been converted to PLA (Polytctic Acid) - a bio-based plastic alternative to petrochemical based films. It’s made from 100% renewable and compostable resources to reduce landfill waste.

GILLS ONIONS SUSTAINABILITYAir and Climate Change


Executive Summary

Gills Onions achieved the environmental leadership status of Climate Registered™ by successfully registering our comprehensive greenhouse gas (GHG) emissions inventory according to the rigorous standards of The Climate Registry. We are a founding member of The Climate Registry, a nonprofit collaboration among North American states, provinces, territories and Native Sovereign Nations that sets consistent and transparent standards to calculate, verify and publicly report greenhouse gas (GHG) emissions into a single registry.

Participation in The Registry’s voluntary program demonstrates Gills Onions pioneering role within California’s Agriculture and Food Processing industries and quantifies how we are becoming a more earth-friendly, sustainable grower and processor.

By establishing a clear and consistent inventory of GHG emissions, we’ve gained insight into our energy expenses, gained a better understanding of our emissions sources and decided how to continue to reduce our emissions inventory. Gills Onions is also better prepared for the potential impact of new regulations and risk management strategies.

In 2008, our total verified Entity-Wide Emissions amounted to 6,894 tons of CO

2e (equivalent)

Air and Climate Change Results

• GHG emissions will be reduced by 14,500 metric tons of CO2e in 2010

• Consumption of diesel fuel for waste disposal activities has been reduced by 40,000 gallons and 121 metric tons of CO2e annually

• Purchased electricity demand will be reduced by 47% - $700,000 - at our Oxnard processing in 2010 as well as indirect CO2e emissions

emissions. With this as our benchmark, we anticipate a significant reduction in our carbon footprint for 2009 due to the implementation of many new sustainability measures being undertaken.

Reducing GHG Emissions

In July of 2009, we began operating our Advanced Energy Recovery System (AERS) to convert 100% of our daily onion waste – up to 150 tons – into ultra-clean, virtually emissions-free power from two 300 kW fuel cells to provide power for our Oxnard processing facility.

Currently, we have embarked on a Zero Waste program to further reduce waste and GHG emissions resulting from waste disposal activities in all our operations, and are designing water conservation and recycling systems to reduce and reuse water requirements for processing – that will ultimately reduce further GHG emissions.

For more information please visit: www.theclimateregistry.org. Or download our Carbon Footprint Report from our website at: www.gillsonions.com/sustain-resources#education.

For more information:1-805-240-1983Fax: 1-805-240-19321051 South Pacific Avenue Oxnard, CA 93030 www.gillsonions.com

© 2010 Gills Onions, LLC


comprehensive greenhouse gas (GHG) emissions inventory according to the rigorous standards of The Climate Registry. We are a founding member of The Climate Registry, a nonprofit collaboration among North American states, provinces, territories and Native Sovereign Nations that sets consistent and transparent standards to calculate, verify and publicly report greenhouse gas (GHG) emissions into a single registry.

Participation in The Registry’s voluntary program demonstrates Gills Onions pioneering role within California’s Agriculture and Food Processing industries and quantifies how we are becoming a more earth-friendly, sustainable grower and processor.

By establishing a clear and consistent inventory of GHG emissions, we’ve gained insight into our energy expenses, gained a better understanding of our emissions sources and decided how to continue to reduce our emissions inventory. Gills Onions is also better prepared for the potential impact of new regulations and risk management strategies.

In 2008, our total verified Entity-Wide Emissions amounted to 6,894 tons of CO

2e (equivalent)

• Consumption of diesel fuel for waste disposal activities has been reduced by 40,000 gallons and 121 metric tons of CO2e annually

• Purchased electricity demand will be reduced by 47% - $700,000 - at our Oxnard processing in 2010 as well as indirect CO

due to the implementation of many new sustainability measures being undertaken.

Reducing GHG Emissions

In July of 2009, we began operating our Advanced Energy Recovery System (AERS) to convert 100% of our daily onion waste – up to 150 tons – into ultra-clean, virtually emissions-free power from two 300 kW fuel cells to provide power for our Oxnard processing facility.

Currently, we have embarked on a Zero Waste program to further reduce waste and GHG emissions resulting from waste disposal activities in all our operations, and are designing water conservation and recycling systems to reduce and reuse water requirements for processing – that will ultimately reduce further GHG emissions.

For more information please visit: www.theclimateregistry.org. Or download our Carbon Footprint Report from our website at: www.gillsonions.com/sustain-resources#education.

For more information:1-805-240-1983Fax: 1-805-240-19321051 South Pacific Avenue Oxnard, CA 93030 www.gillsonions.com



materials, expand our waste reduction initiatives and implement a comprehensive recycling program.

At Gills Onions, onion waste represents 99 percent of the solid waste generated. This waste stream is being diverted from disposal to create renewable energy and nutritive cattle feed. Although material waste comprises only 1 percent, we are implementing strategies to reduce, reuse, or recycle this waste. We set a target to double

energy and nutritive cattle feed.



GILLS ONIONS SUSTAINABILITYTransportation and Shipping


Executive Summary

Transportation

In 2009, through our partnership with the Bren School of Environmental Science & Management at the University of California, Santa Barbara, we were able to create a 2008 baseline for our transportation energy consumption and emissions and a comprehensive inventory of on road vehicles and fuel usage.

Gills Transport and Rio Farms are sister companies of Gills Onions and responsible for delivering raw onions from the field, disposing of onion waste, and delivering approxi-mately 30% of our finished, fresh-cut onion products to customers within a 300 mile radius of our Oxnard facility. We learned that these two services, essential to our core business, were responsible for 38.4% of our total energy consumption, for 94.6% of our total mobile source fuel demand, and relied almost exclusively on diesel fuel – 98.7% - for energy.

The energy used annually for Transportation services equals the same amount of energy consumed by 960 households annually.

Results

• By converting our fleet of trucks to Freightliners with DD-15 engines, and using “Super Single” tires, Gills has been able to reduce the energy used for transportation by 20%

• Consumption of diesel fuel has been reduced by 40,000 gallons and 121 metric tons of CO

2e emissions annually

• Waste oil, used oil filters, and vehicle batteries are recycled. Used tires are taken out of service and the casings are used for recapping

• Increasing load capacity of refrigeration units from 48 to 53 feet and using double open bed trailers trailers has increased our fuel efficiency per load of onions

• Using ultra-low sulfur diesel (ULSD) fuel in all our engines has further reduced GHG emissions

• By converting Gills Transport entire fleet of 22 trucks to Freightliner engines, Gills is already meeting California’s 2017 Smog regulations

• Elimination of 750 annual truck trips for disposing of onion waste by converting the waste into on-site electricity and high-value cattle feed

• Increasing the fuel efficiency and optimization of Gills Transport vehicles to reduce the energy used for Transportation

• Planned operation of a future onion processing facility in San Joaquin, California, will place processing capabilities 230 miles closer to two of three growing regions (King City and San Joaquin) relative to our current Oxnard facility and reap additional reductions in diesel consumption and GHG emissions

Recommendations:

Shipping

At the same time we were developing transportation energy baseline and inventories, we developed new Delivered Programs for delivery of fresh-cut onion products to our many retail and foodservice customers located beyond the range of our own Transportation services. We reduced Shipping duplication through integra-tion of services with CH Robinson, the supply-chain and transportation partner of Western Growers. This allowed us to cross-dock with other Western Grower members and use our Oxnard location as a ship point to combine Shipping tonnage and reduce costs and GHG emissions

For more information:1-805-240-1983Fax: 1-805-240-19321051 South Pacific AvenueOxnard, CA 93030 www.gillsonions.com


March-April 2009

Turning Onion Juice Into a Power

HouseFederal research engineer explores the potential of nanoparticles to reduce the

chiller demand.

By Lyn Corum

Rising energy and waste disposal costs are plaguing California’s vibrant and valuable food processing industry. Gills

Onions invested time and research to identify technologies that will eliminate and reduce those costs.

Steven Gill and his brother David have been growing onions on 15,000 acres of their family-owned land in southern

California for 25 years, along with other vegetables. Moreover, Steven Gill has a special affinity for finding technologies

that can grow the business and manage it more effectively.

Looking to eliminate the hauling of onion waste to his fields, he began a search six years ago, for an anaerobic digester

that could turn onion waste into digester gas that could, in turn, be burned in an onsite power generator. That search

culminated in the startup of fuel cell operations in December 2008. The state-of-the-art anaerobic digester will start

operating by summer 2009. What Gill saw as a business opportunity, may provide the food processing industry a new

set of tools to reduce costs and join California’s drive to convert one-third of the state’s power resources to renewable

resources.

Natural gas and electricity prices have become a significant cost factor in California’s fruit and vegetable processing

industry, valued at $50 billion a year. Furthermore, coproduction of wastes and its associated liabilities has become a

significant cost factor, and a limiting factor to the growth of operations, Gill testifies.

To put all of this in perspective, according to the California Institute of Food and Agricultural Research at the University

of California, Davis (UC Davis), food processing is the third largest industrial energy user in the state. As such, it is an

important, diverse, and dynamic sector of California’s economy. Furthermore, California is the nation’s leading producer

of fruit and vegetables in the US.

Using Technology to Grow the Business

When the Gill brothers decided to grow and process onions at their Oxnard, CA, plant at the request of La Victoria

—which wanted diced onions for its salsa—there was no way to wash, skin, slice, and dice onions outside a kitchen

counter. “Nobody knew anything about onions, and learning how to shred onions took a long time,” says Steven Gill. It

took them two years to develop the equipment through trial and error. “Now this is the largest fresh onion processing

plant in the world,” he remarks.

Gill’s onions are skinned, diced, sliced, or bagged whole, and shipped in small and large packages all over the

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Gills Onions finds power in the peel

Oxnard grower transforms waste to a resource

By Allison Bruce

Friday, July 17, 2009

In a blending of economic and environmental goals, Gills Onions in Oxnard has built the world’s first fuel cell

system powered by onion juice.

Gills Onions peels the onions that come into its facility from its farms around the state. Each day, that yields from

200,000 to 300,000 pounds of waste. In the past, the company just worked the peels back into the ground, but it got

to a point where there was too much waste and too much expense hauling it out to the fields, said Steven Gill,

co-owner of the company.

So about 10 years ago the leadership at Gills Onions started thinking about alternatives. All that work — including

dead ends and trial and error — has led to the creation of its $9.5 million Advanced Energy Recovery System,

which takes onion peels and turns them into energy and cattle feed.

Today, Southern California Gas Co. will recognize Gills Onions’ energy system by giving the company a $2.7

million incentive, which stems from the state’s self-generation incentive program. To date, the Gills Onions system

is one of the largest self-generation incentive program projects.

The gas company has done a lot of projects with Gills Onions. Over the years, it has found that if the analysis makes

sense, the family-run company moves forward to do it, something refreshing when compared with the layers of

approval other companies might need, said David Carrell, a senior account executive with Southern California Gas.

The system takes onion waste, extracts the juice and lets it ferment in an anaerobic digester system that emits

methane gas that the farm can use to power two 300-kilowatt fuel cells. That creates a $700,000 savings in annual

electricity costs by covering 35 percent to 40 percent of the plant’s power needs.

The power generated annually is equivalent to powering 460 homes for a year.

The remaining pulp from the onion waste is turned into high-value cattle feed.

Once it’s fully operational — the bacteria in the digester are still getting established — the system will run 24 hours

a day, seven days a week.

Southern California Gas estimates the system will reduce greenhouse gas emissions by up to 30,000 tons a year.

Gills Onions also will save about $400,000 a year on the cost of hauling the waste to the fields. Gill expects the

facility could pay back its cost in five to six years.

Much of the system is automated. Gill said the company, which has about 400 employees, has been able to use

current employees for monitoring the system. Some of the work — such as the fuel cell maintenance and digester

analysis — is contracted out to companies that provided the equipment.

Though simple to explain, the system is quite complex. The waste has to have the sulphur extracted — what makes

Gills Onions finds power in the peel http://www.venturacountystar.com/news/2009/jul/17/gills-onions-finds...

1 of 2 7/17/09 2:15 PM

Today, Southern California Gas Co. will recognize Gills Onions’ energy system by giving the company a

million incentive, which stems from the state’s self-generation incentive program. To date, the Gills

is one of the largest self-generation incentive program projects.

The gas company has done a lot of projects with Gills Onions. Over the years, it has found that if the

sense, the family-run company moves forward to do it, something refreshing when compared with the laye

approval other companies might need, said David Carrell, a senior account executive with Southern Cali

The system takes onion waste, extracts the juice and lets it ferment in an anaerobic digester system t

methane gas that the farm can use to power two 300-kilowatt fuel cells. That creates a $700,000 saving

electricity costs by covering 35 percent to 40 percent of the plant’s power needs.

The power generated annually is equivalent to powering 460 homes for a year.

The remaining pulp from the onion waste is turned into high-value cattle feed.

Once it’s fully operational — the bacteria in the digester are still getting established — the system

a day, seven days a week.

Southern California Gas estimates the system will reduce greenhouse gas emissions by up to 30,000 tons

Gills Onions also will save about $400,000 a year on the cost of hauling the waste to the fields. Gill

facility could pay back its cost in five to six years.

Much of the system is automated. Gill said the company, which has about 400 employees, has been able t

current employees for monitoring the system. Some of the work — such as the fuel cell maintenance and

analysis — is contracted out to companies that provided the equipment.

Though simple to explain, the system is quite complex. The waste has to have the sulphur extracted — w

http://www.latimes.com/business/la-fi-onions-fuel17-2009jul17,0,5226835.storyFrom the Los Angeles TimesENERGY

Onions produce tears and energy at an Oxnard plantA farming company uses juice from the vegetable to run a fuel cell. It's one of a growing number of businesses that use their waste to produce electricity.By Tiffany Hsu >>>

July 17, 2009

After more than 20 years farming onions, Steve Gill still breaks out in tears at his processing facility. ¶ Only now he's crying all the way to the bank. ¶ He recently began using juicefrom his pungent crop to create energy to run his refrigerators and lighting. That's slicing $700,000 annually off the electric bill at his 14-acre plant in Oxnard. He's also saving$400,000 a year on disposal costs. And he has secured more than $3 million in government and power company incentives to do it. ¶ Gill figures the $9.5-million system will payfor itself in less than six years while eliminating up to 30,000 tons of carbon dioxide-equivalent emissions a year. ¶ "It's a great sustainability story, but it was first a businessdecision to solve a waste problem," said Gill, 59, who co-owns the company with his brother David. "But in doing so, we solved a lot of environmental problems too." ¶ GillsOnions is one of a small but growing cadre of U.S. companies generating their own electricity on site with waste from their production processes. In addition to plant material, firmsare using a variety of feedstocks, including animal manure, vegetable oil, whey -- even beer.

The massive upfront costs limit the appeal of these so-called closed-loop systems. But volatile energy prices and the rising cost of waste disposal are compelling more firms totake a look.

Farmers and processors in California's $37-billion agricultural industry in particular are looking for ways to save money and reduce their environmental footprint, said Sonia Salas,science and technology manager for the Western Growers Assn.

"Many growers want technology that helps them handle waste," she said. "This is a concept that other operations can definitely use."

The system at Gills Onions, which will be unveiled to the public today, converts methane from fermented onion juice into energy burned in two on-site fuel cells.

The company has farms throughout California that send onions year-round to the Oxnard plant, where they are skinned, diced, sliced or packaged whole in a numbingly frigidfacility by 400 employees. The vegetables are then shipped all over the country to wholesalers and retailers such as Ralphs.

Machines slice off about 40% of each onion. That leaves 150 tons of waste a day. For years, the Gills spread these leavings as fertilizer over their fields or sold them as cattle feed.But the refuse was expensive to handle, and it posed a hazard to the atmosphere and groundwater.

So the brothers decided to turn it into energy instead.

Machines extract about 30,000 gallons of onion juice that is then sent to a 145,000-gallon holding tank kept at a toasty 95 degrees. Inside, bacteria purchased from anAnheuser-Busch beer brewery produce methane gas by feasting on the carbohydrates in the fermenting juice.

"It's like a big stomach," said project manager Bill Deaton.

The gas is purified, dehumidified and compressed, then burned in the fuel cells at temperatures that exceed 1,000 degrees. The 600-kilowatt system produces enough power tooperate the plant's refrigeration units and lighting.

The Gills are also looking into installing a battery at the plant that can store excess electricity from the fuel cells. Reserve energy could be used during peak hours in the summer,when electricity is more expensive.

"I didn't want to depend on anyone taking my waste for me," Gill said. "It was my problem, and I had to solve it. It's a relief to find a solution."

Producing biofuel for a single company's closed-loop system is one thing, but integrating the energy into the public grid is still a prohibitively expensive and difficult endeavor.

Fuel from organic matter, such as crushed palm nuts or fermented wheat, is rarely pure enough to blend with commercial energy sources, said Ross McCracken, editor of PlattsEnergy Economist.

As a result, companies would have to sink funds into cleaning the biogas and then invest in a pipeline or other delivery system to hook the fuel into the national pool.

And even large companies would struggle to produce enough fuel to make a significant contribution.

The drawbacks make many experts skeptical of the large-scale potential of any biogas.

"There's no silver bullet," McCracken said. "The technology isn't quite there.

Meanwhile, Gills Onions is keeping its eco-friendly aspirations close to home. Gill hopes to turn the plant into a zero-waste facility by revamping packaging and by recyclingemployees' lunch leftovers.

The company even cleans its own wastewater and funnels it into a cooling tower.

"We consider this a long-term investment for the company," Gill said.

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