waitrose innovation forum presentation
DESCRIPTION
Presentation given by Chris Plackett of Farm Energy to Waitrose Innovation Forum Greenhouse Gas Subject Day on 17th Feb 2010TRANSCRIPT
1 Waitrose Innovation Forum – 17th Feb 2010
Energy efficiency in protected cropping
Chris Plackett
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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
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A few questions?
• Why is energy efficiency important?
• How efficient are we now?
• How efficient can we get?
• What tools can we use?
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GHG Emissions Analysis
CO2, 9%
Methane, 38%
Nitrous Oxide, 53%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1
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
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Why PC is different
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Greenhouse gas equivalent CO2 emissions
CH4
N2O
C02
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• 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?
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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?
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Review of energy prices
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Future Prices – Gov’t projections
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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
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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
100
200
300
400
500
600
700
800
900
1000
Annual Energy Use of Sites in the Tomato Sector
small sites medium sites large sites
Position
kWh/
m2
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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
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• Evolution– Refine our existing knowledge– Develop the tools we have now
• Revolution– Sealed greenhouse systems– Advanced heating & cooling
systems
Evolution or revolution?
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• 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?
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• 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
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• 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
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• 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?
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• 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
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• Ducted systems can make better use of lower grade heat sources– Important for alternative & renewable energy sources
Using lower grade heat
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Where in the future?
Use less?or
Generate?
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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…..”
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Assess ‘whole life’ returns
Capital cost
Energy price
Management
Work rate
Payback
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• 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
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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
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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
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Proposed Generation Tariffs
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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
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Proposed RHI Rates
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For larger sites
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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
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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
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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)
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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?
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Thank you & any questions