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Innovation to Improve Energy Productivity in the Food Value Chain

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Innovation to Improve Energy Productivity in the Food Value Chain 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.
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