Innovation to Improve
Doubling Australia’s Energy Productivity Energy Productivity in the Food Value Chain AUTHORSHIP OF REPORT acknowledge the amazing Authorship of report contribution made by Alan This report is published by Pears. the Australian Alliance for We also acknowledge Energy Productivity (A2EP). contributions of Mark Gjerek A2EP is an independent, (Move3ment) and Michael not-for profit coalition of Smith (Australian National business, government and University). environmental leaders promoting a more energy This document is a summary productive economy. of The Next Wave Phase 1 Report, which is available at The 2xEP program is an 2xep.org.au. industry-led project to double energy productivity in Australia ACKNOWLEDGEMENTS by 2030, supported by A2EP. A2EP would like to thank the 2xEP is guided by a Steering following agencies for financial Committee of business leaders. and in-kind support for this An innovation working group, work: reporting to the committee (comprising 50 representatives NSW: Department of Industry of industry associations, and Office of Environment and researchers, companies Heritage and government agencies), Victoria: Department of Doubling Australia’s provided significant input to Environment, Land, Water and Energy Productivity the Next Wave. A2EP thanks Planning members of the working group for their contributions. Queensland Department of Energy and Water Supply The views expressed in this report are those of A2EP and Commonwealth: Department do not necessarily represent of Environment and Energy, the position of all individual and ARENA working group members. Thank you for the support The members of the project in the form of funds and/or © Australian Alliance for team that compiled this report people for the Next Wave. Energy Productivity 2017 are: Level 11, UTS Building 10, Jonathan Jutsen (A2EP), Alan Note: acknowledgement of this 235 Jones Street, Ultimo, Pears (Senior Consultant), Liz support does not indicate that NSW 2007 Hutton (Senior Consultant) these agencies endorse the [email protected] and Milhara Kankanamge views expressed in this report. 02 9514 4948 (ARENA). www.a2ep.org.au In particular, the Board www.2xep.org.au and staff of A2EP gratefully ABN: 39 137 603 993
Doubling Australia’s Energy Productivity Innovation to Improve Energy Productivity in the Food Value Chain | p2 WHY THE 2XEP TARGET? project aims to define how to optimise these energy-using processes across the chain to maximise value created and reduce energy use. 2xEP (a doubling of energy productivity by 2030 in the Australian economy) is a voluntary WHAT IS ENERGY and aspirational target across the economy. PRODUCTIVITY? It is a stretch target that will require changes in products and services, business models, attitudes and practices. We can reasonably Energy productivity is the value delivered expect that significant innovation will per unit of energy. Economic productivity facilitate change and reduce costs. is a key driver of our international competitiveness and economic growth, 2xEP is a voluntary and aspirational target and Australia’s energy competitiveness has across the economy. It is a stretch target that been plunging in recent years. In late 2015, will require changes in products and services, COAG responded by establishing a target business models, attitudes and practices. for improving energy productivity and a We can reasonably expect that significant National Energy Productivity Plan. Initiatives innovation will facilitate change and reduce to improve energy productivity will also be costs. central to meeting Australia’s international Energy productivity is now a clearly identified commitments to reduce carbon emissions. policy priority for federal, state and territory governments. Improving energy productivity is about increasing the economic value created per physical, as well as monetary, unit of energy consumed. In a period of increasing ENERGY = VALUE ADDED electricity and gas prices in Australia, in PRODUCTIVITY ENERGY addition to volatility in the global oil market, a holistic approach to energy productivity can make a major contribution to Australia’s overall economic productivity and, hence, NUTRITION AND SHELTER competitiveness. VALUE CHAINS Energy is a substantial and growing cost to end-users – at $110 billion nationally in 2013, this was equivalent to about 8% We selected two value chains to explore in the of Gross Domestic Product (GDP). The first phase of the Next Wave project: energy productivity project is directed to food - from plate/export back to farm; and ensuring that every dollar spent on energy is economically effective. shelter - focused on construction materials and embodied energy. 2XEP AND THE NEXT WAVE The Next Wave Phase 1 report includes an international scan of technologies and business models. The Australian Alliance for Energy Productivity (A2EP) supports the 2xEP business coalition to double energy productivity in Australia by 2030. A key 2xEP project is the ‘Next Wave’, which explores opportunities for major improvements in energy productivity through innovation – deployment of new technologies and business models. The Next Wave project developed a ‘value chain’ methodology to examine energy productivity opportunities. This process examines key energy using processes required to deliver end use products and services, applying a circular economy approach to energy and material flows. The Next Wave
Doubling Australia’s Energy Productivity Innovation to Improve Energy Productivity in the Food Value Chain | p3 IMPROVING ENERGY PRODUCTIVITY THROUGH INNOVATION
FARM WHOLESALE FOOD FOOD PROCESSING STORAGE RETAIL PREPARATION PREPARATION COMMERCIAL HOME
TRANSPORT TRANSPORT TRANSPORT TRANSPORT BULK BULK BULK PRIVATE DELIVERY
Primary energy use Extension of shelf life by preservation/refrigeration Dewatering and Drying Process heat and cooking
The figure highlights primary energy use in the food value chain and key systems present along the chain. Primary energy is found to better correlate with carbon emissions and energy cost than final energy - the significance of using electricity (which involves inputs of three units of primary energy per unit of final energy) efficiently is emphasised.
Doubling Australia’s Energy Productivity Innovation to Improve Energy Productivity in the Food Value Chain | p4 THE FOOD VALUE CHAIN
The food value chain includes the Inputs may include machinery, Some preliminary analysis was major activities involved from the equipment, consumables, carried out to establish ‘ball park’ production and transformation of chemicals, and maintenance estimates of the amounts of energy raw food to the provision of edible services. Waste may be an output consumed in each stage of the food consumed by people. These that incurs disposal costs and food value chain. This assisted activities include agriculture, impacts, or may be convertible into with identification of potentially food processing, wholesaling and energy or saleable co-products. significant aspects of the value retailing of food and commercial and Co-products may include food chain on which the literature scan domestic food preparation. Transport products, organic materials and and engagement with specialists between these activities is also chemicals. was based. considered.
Food consumed Reduce waste Food to home Food waste Repurpose (reuse/ resell) Food to supermarket Food rejected Use for energy generation Food to distribution/processing Food lost in process Compost Agriculture Food damaged/rejected
Earlier / enhanced dewatering to Reduce fertilizer reduce mass
Waste cycle in the food value chain highlights materials flows: as raw materials move upstream greater quantities of waste are generated. The waste and co-products have the potential to be reduced, captured, reused and repurposed. Reducing waste, saves energy and resources along the whole value chain.
Doubling Australia’s Energy Productivity Innovation to Improve Energy Productivity in the Food Value Chain | p5 Energy productivity improvement opportunities
REFRIGERATION DEWATERING, DRYING, • High efficiency electric AND PRESERVATION PROCESS HEATING AND technologies (which can be supplied from renewable electricity) INDUSTRIAL COOKING and renewable heat sources. For Refrigeration is a major contributor example, mechanical dewatering to energy use across the value Reduce water content for: food by centrifuging and ultrafiltration; chain, including in transport. The preservation; processing and heat pumps providing heating energy productivity and climate transport efficiency; and enhancing locally and recovering waste impacts of refrigeration relate flavour and nutrition. Evaporation heat; and, microwave heating and high pressure processing. to energy efficiency, impacts on of water is very energy intensive and product quality, refrigerant leakage, thermal processes using fossil fuel • Improved quality and consistency of and secondary impacts. boilers and steam reticulation often product resulting from use of highly Energy productivity improvement have very poor energy efficiency. controllable new technologies. opportunities from innovation Dewatering earlier in the value chain include: reduces material to be transported and processed. • Replace plant with smaller, more energy efficient natural Energy productivity improvement refrigerant systems after opportunities from innovation implementing measures below include: to minimise cooling loads. • Optimise process and product temperatures using low cost sensors and improved controls. • Reduce amount of material to be cooled, e.g. partial dewatering of milk at farm. • Reduce need for cooling, e.g. vacuum packaging. • Pre-cool using ambient air, residual cold from product, evaporative cooling. • Reduce heat gains in storage: improved insulation, smart monitoring and controls. • Smart monitoring: identify deviations from performance and emerging problems.
Dewatering, drying, Refrigeration and Freight Commercial process heating and preservation transport cooking industrial cooking
Current primary energy use in each opportunity area.
Doubling Australia’s Energy Productivity Innovation to Improve Energy Productivity in the Food Value Chain | p6 FREIGHT TRANSPORT • Electrification of urban COMMERCIAL COOKING delivery vehicles facilitated by improved battery technology. Development of micro-turbine The energy used for freight Commercial cooking is frequently drivetrains and battery electric transport of food is primarily carried out in a very energy hybrid system for diesel provided by diesel fuel and occurs inefficient manner as the varied at multiple points in the value chain. locomotives. nature of demand often results in There is technical potential for a 30- • Autonomous vehicle technology small batches of food cooked at low 60% improvement in fuel efficiency to accelerate and integrate efficiency. Gas cookers may be only in road transport through measures opportunities above. 35-40% efficient, while traditional such as engine and drivetrain electric cookers achieve around • Developments in intelligent improvements, aerodynamics, tyres 60% efficiency. In addition, the heat transport systems to allow and light-weighting. generated by cooking may result vehicles to communicate with in high requirements for space Energy productivity improvement each other and infrastructure, conditioning. opportunities from innovation reducing traffic congestion include: and enabling new road pricing New technology, such as induction cooktops can achieve over 80% • Reducing the number of trips, models to better recover costs end-use efficiency, and improved and shift behaviour. e.g. digital freight matching to cooking equipment efficiency, optimise logistics and increase • Second and third generation enhanced monitoring and control back-loading and ’Uberisation’ biofuels, particularly diesel from can reduce energy waste. of the freight task. algae, and biogas as a transport • Shift from road to rail, which fuel source (in lieu of fossil gas uses only a third to a half of the in compressed natural gas and energy per unit of freight (tonne- liquefied natural gas). km). • Improve driving and vehicle management practices supported by on-line performance monitoring and driver advisory systems to provide feedback to the driver (in real time, or after a trip).
Doubling Australia’s Energy Productivity Innovation to Improve Energy Productivity in the Food Value Chain | p7 ASSESSMENT CRITERIA technologies that are ready for with renewable energy commercial deployment, or will (electricity and thermal) be within a few years, if they are to • Mechanical dewatering versus have a major impact by 2030. Many drying; dewatering earlier Primary Criteria of the business model changes that in process to reduce cooling The first two primary assessment make the priority list actually use and transport of water criteria reflect the nature of energy existing commercial technologies, • High frequency e.g. microwave/ productivity: improvement in and the innovation is in the high pressure processes. value (or economic benefit) per combination and deployment of 4. Transition to high efficiency unit of energy consumed. Using these technologies in novel ways to commercial cooking and food energy more efficiently (input cost gain energy productivity benefits. display systems. reduction) and/or capturing greater economic benefit from energy HIGH POTENTIAL 5. Step change reduction in consumed (yield and profit), or INNOVATIONS refrigeration energy use through: a combination, improves energy • Transition to optimally sized, productivity. The third primary high efficiency, low global criterion considers interactions 1. Optimisation of service delivery warming potential refrigeration with the global economy and technologies with Internet of • Optimise refrigeration use Things (IoT), communications and employment implications within across the ‘cold chain’. cloud computing applications. Australia: this reflects the linkage of energy productivity to overall 2. Integrated clean energy (ICE): productivity, and productivity optimally bringing together of labour and capital. The final energy productivity (including primary criterion reflects the electrification and demand impact of innovations on carbon management), renewables, storage, mitigation. and ‘smart’ systems. 1 Secondary Criteria 3. Electrification of food processing replacing thermal processing, The secondary criteria explore boiler, steam, hot water systems: the practical issues involved in implementing the measures. • Heat pump heating and (latent) The focus clearly must be on heat recovery, mechanical vapour recompression combined 2 Enhanced savings Enhanced value Economic opportunity Enhanced savings Reduced climate impact Enhanced value Economic opportunity 3 Reduced climate impact Readiness Enhanced savings Economic/trendsEnhanced value Risk Economic opportunity Readiness Reduced climate impact Economic/trends Risk 4
Primary Secondary Readiness Economic/trends Risk Primary Secondary
5
Doubling Australia’sPrimary Energy Productivity Secondary Innovation to Improve Energy Productivity in the Food Value Chain | p8 CASE STUDY A CASE STUDY B
Utilisation of radio-frequency identification and Dewatering in the dairy industry: Yanakie Dairy digital temperature recorders: Walmart Farm, Gippsland In its pursuit of lower consumer prices Walmart A research project into the feasibility of removing investigated the use of radio frequency identification water from milk using an ultrafiltration membrane was (RFID) technology and digital temperature recorders carried out by Tetra Pak Pty Ltd in 2011. The project to revolutionise its cold supply chain inventory successfully extracted water from milk at 400 litres tracking system, to monitor and manage the effects per hour and concentrated milk to 50% of its volume. of various temperature conditions on perishable It was estimated that transport savings related to produce, decrease food spoilage, and respond faster delivering milk to milk factory would be approximately to equipment failure. RFID and digital temperature $30 per kilolitre. There are also benefits of feeding recorder solutions, like those used by Walmart have cleaned water to cows and doubling effective capacity the potential to greatly improve energy productivity for milk storage, reducing volume for refrigeration, as across the manufacturing supply chain, by matching well as delivering process energy savings for drying supply and demand needs of businesses. at the plant. It was estimated that the project could pay back in two years based on benefits for the farmer www.iifiir.org/userfiles/file/publications/notes/ alone. notefood_04_en.pdf www.clearwater.asn.au/resource-library/smart-water- fund-projects/on-farm-milk-de-watering-system-for- reuse.php
Doubling Australia’s Energy Productivity Innovation to Improve Energy Productivity in the Food Value Chain | p9 CASE STUDY C CASE STUDY D
Innovative business models reducing energy High-pressure processing, process heat and cooking: consumption Preshafood and CSIRO Food Innovation Centre Ferguson Plarre Bakehouses invested in a range of Preshafood manufactures fruit juices, fruit blends, energy efficiency improvements resulting in a more smoothies and vegetable juices using high pressure than 60% reduction in energy use (62% electricity processing (HPP). HPP is an emerging technology which consumption and 76% gas consumption). uses very high pressures instead of heat processing The bakery replaced outdated equipment with the to kill yeasts, moulds and bacteria. HPP extends shelf most energy efficient ovens and cooking equipment life without the use of preservatives. HPP saves energy sourced from Europe. These were strategically placed compared to traditional process heat technology. Juices to capture and concentrate heat and reduce energy produced using this method can be stored up to five use. The bakery pre-heats water entering hot water times longer than other chilled juices. systems with energy recovered from equipment and a HPP technology is also applicable to meat, poultry, solar hot water system was also built on premises. seafood, fruit and vegetable products, meal solutions, The bakery began using diesel hybrid trucks to dips and sauces. The technology can extend the shelf- deliver baked goods from the central bakehouse life of cooled perishable products and provide improved to shop fronts, and reduced the number of trips safety, taste, texture, quality, fresh-like characteristics by half. This improved fuel efficiency by 25-30%. A and nutritional value, without chemical preservatives. fully programmable and automated energy efficient www.preshafruit.com.au lighting system was also installed and an accredited offsetting scheme was used to mitigate emissions. The bakery also started monitoring real time water and energy consumption, and greenhouse emissions through a fully integrated supervisory control and data acquisition system. www.naturaledgeproject.net/Documents/Factor5-Foo dandHospitalityOnlineSectorStudy.pdf
Fresh fruit squeezed and juiced
Bottled in a triangular- shaped bottle
Cold high-pressure processing – never heat pasteurised
Pure fresh tasting juice
Doubling Australia’s Energy Productivity Innovation to Improve Energy Productivity in the Food Value Chain | p10 ACTION PLAN
transfer of high efficiency Accelerate introduction of cooking and hot food technologies and business display in commercial models to improve energy and residential sectors. productivity in the food value 5. Pilot model agro-industrial chain processing in regional 1. Optimise the cold chain. towns off the natural gas Conduct feasibility studies grid using high efficiency and pilots utilising smart electric technologies and monitoring and diagnostic renewable energy such as sensors and controls to biogas produced from waste. track product temperatures 6. Promote development and across the chain. Benefits adoption of integrated would include reduced clean energy (ICE) solutions energy use and improved including energy productivity product quality related to (+ electrification), energy avoidance of overcooling and storage, on-site renewable identification of equipment generation, smart demand faults in real time. management, monitoring 2. Government and industry and diagnostics. cooperation to ensure 7. Join International Energy replacement of refrigeration Agency Heat Pump Centre, plant, accelerated by phase to best exploit heat out of HFCs and HCFCs, drives pump applications. a step change in energy performance. Also, promote 8. Integrate energy productivity use of high efficiency programs with materials refrigeration (including efficiency and waste cascade compressors) reduction programs. Target and high performance food waste through the food insulation in the commercial chain, including measures sector and homes. to produce new products from by-products, or utilise 3. Promote technology waste to produce on-site transfer and deployment and regional energy. of electric technology in food processing to replace 9. Develop better data to low efficiency thermal support value chain analysis systems for dewatering, and implementation drying and cooking. of energy productivity Utilise forced evaporation, improvements. The current, membranes, centrifuging, very poor data quality on microwave heating and energy and mass flows high pressure processing; hampers quantification upgrade waste heat using of costs and benefits. heat pumps or mechanical vapour recompression. 4. Promote technology
Doubling Australia’s Energy Productivity Innovation to Improve Energy Productivity in the Food Value Chain | p11 KEY CONCLUSIONS FROM THE • Innovation opportunities that will lead to NEXT WAVE – PHASE 1 PROJECT significant job creation in Australia will generally be around targeted technical • The value chain analysis process applied in innovations combined with delivery of this project is a valuable methodology for integration services, which can be exported. defining energy and resource productivity For example: opportunities, and can provide an excellent ◆ Expertise in using Internet of Things overview of the flows and interactions and cloud computing for optimising of energy and materials and associated cold chains, and for optimising freight carbon emissions. This methodology can be energy performance and logistics. applied equally well to other value chains. ◆ Integration of energy efficiency with • Doubling energy productivity is an achievable renewables and storage, using Internet objective in the value chains reviewed. of Things to link them together Innovation provides the scope to fill the gap ◆ Building on international research from what can be done based on existing into fundamental processes and new best commercial practices, provided business materials in new ways. Apply principles, and governments take a proactive approach design and adapt technologies and new to accelerate change to gain the energy business models into novel applications productivity benefits that are on offer. and solutions to deliver energy productivity benefits through • The best opportunities to significantly products and services. improve energy productivity have the following characteristics: ◆ They are not incremental improvements – instead they apply new business models and often NEXT STEPS operate across sector boundaries. ◆ They generally involve innovative The full detailed report for Phase 1 of Next Wave and integrated applications of multiple Project, including the next steps for the project, can technologies, which provide far greater be found at benefits than individual technologies www.2xep.org.au/innovation-the-next-wave.html. alone. The interplay between technologies The Food Value Chain Summary and Shelter Value amplifies and enhances the benefits. Chain Summary are also available for download ◆ They often involve both energy here. and materials savings e.g. dewatering and waste reduction decrease mass to be transported and processed. • There are some windows of opportunity that must be exploited in a timely manner. For example: ◆ The HFC phase out will drive increased turnover of refrigeration plant in the next 10 years. New refrigeration must be properly sized, smart and efficient. Doubling Australia’s ◆ New buildings have very long lives, Energy Productivity so failure to incorporate high efficiency © Australian Alliance for Energy and adaptability ‘locks-in’ longer term Productivity 2017 higher emissions and costs, and a need for more investment in energy supply Level 11, UTS Building 10, infrastructure that could be avoided. 235 Jones Street, Ultimo, NSW 2007 [email protected] phone: 02 9514 4948 a2ep.org.au 2xep.org.au ABN: 39 137 603 993
Doubling Australia’s Energy Productivity Innovation to Improve Energy Productivity in the Food Value Chain | p12