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Waitrose Innovation Forum Presentation



Presentation given by Chris Plackett of Farm Energy to Waitrose Innovation Forum Greenhouse Gas Subject Day on 17th Feb 2010

Presentation given by Chris Plackett of Farm Energy to Waitrose Innovation Forum Greenhouse Gas Subject Day on 17th Feb 2010



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Waitrose Innovation Forum Presentation Waitrose Innovation Forum Presentation Presentation Transcript

  • Energy efficiency in protected croppingChris 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
    “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
  • PC’s success to date?
    UK PC Horticulture’s energy saving record since 2004
    22% energy saving
    £34 million cost reduction
    Data from Climate Change Levy
  • Current & future issues?
    Energy costs
    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?
  • 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
    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
    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 offer
    But the returns are getting progressively smaller
    What about the UK
  • Ducted Air Systems
    Seen in sealed greenhouse
    But have a role in conventional systems
    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
    Operation & control
    Temperature uniformity
    Electricity costs
    Do they work?
  • 13% heat saving
    59 kWh/m2 gas use reduction
    7.6% yield increase
    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?
  • 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
  • The effect of energy price
    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 ?
  • Feed In Tariffs (FITs)
    Disadvantage of ROCs
    Seen to be for the ‘big boys’
    Complex administration
    Perceived lack of support for smaller projects
    Stability / certainty of income
    Start in April 2010
  • How FITs work
    FIT paid on all of this
    11kW Turbine
    Used on site
    Mains import
    Export to mains
    Mains import
  • 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
    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
  • 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