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How much energy
goes into making
a block of cheese?
Lessons learned from
13 energy audits
in Ukrainian dairy plants
Published by:
Advisory Services for Energy Efficiency in Companies
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
Commissioned by:
German Federal Ministry for Economic Cooperation and Development (BMZ)
Registered offices:
16b Antonovycha St., 01004, Kyiv, Ukraine
Т.: +380 44 594 07 60
https://www.giz.de/ukraine-ua
Overall Project Management: Ricardo Külheim
Concept and text: Stefan Landauer
Data analysis: Pavlo Pertko - ENERGOMANAGEMENT PRO LLC
With contribution by: Alina Rekrutiak, Anatolii Cherniavskiy, Hanna Bodnar, Svitlana Chebotaryova
Design: Kateryna Yashyna
Image credits: the Gate agency, https://www.shutterstock.com/
GIZ is responsible for the content of this publication.
© GIZ 2020
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© GIZ Ukraine 2020, outline dairy plants
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Contents
What is this brochure about?
GIZ work in Ukraine
What is the Advisory Services for Energy Efficiency
in Companies project?
Challenging economic environment and its impact
on energy efficiency
What sources of energy are used and in which quantity?
Energy use in the dairy industry
What subsections of the production consume
the most energy?
How much money is spent on energy consumed by dairy plants?
What are energy-efficiency measures and where is the largest
savings potential?
Relevant energy efficiency measures
What is the CO2eq reduction/investment ratio through the
implementation of energy efficiency measures?
Energy consumption, potential savings
How much energy is stored in dairy products we buy?
Take away messages
04
05
06
09
10
12
14
15
16
22
26
27
28
30
© GIZ Ukraine 2020, outline dairy plants
4
What is this brochure about?
Dear reader,
If you are familiar with dairy production then
you might know that it takes a cow between
50 and 70 hours to produces 8 gallons of milk
per day, which equals over 100 glasses of
milk. That to make one gallon of ice cream, it
takes 12 pounds of whole milk, 10 lb to make 1
ls of cheese, and 21.2 lb to make 1 lb of butter.
But do you know how much energy it
takes to turn raw milk into final product.
How much money is spent on the energy
needed to produce every pound of ice
cream, cheese, or butter? Do you know
which dairy processes are most
energy-intensive and what is the
energy-saving potential of the dairy indus-
try? Or what short-, medium- and
long-term energy-saving measures
should be viably implemented, and with
which effect? Finally, are you aware of
ways thet will help protect the environ-
ment and save your wallet?
This short outline provides insight into the
energy consumption, energy costs, energy-
saving potential, specific energy-saving
measures, and the greenhouse gas impact
of dairy industries in Ukraine. It reports the
results of a serial of energy audits, provided
by the Deutsche Gesellschaft für Interna-
tional Zusammenarbeit (GIZ) GmbH and
demonstrates the impact of GIZ projects
currently being implemented within the
energy efficiency and climate sector in
Ukraine. Therefore, the content of this short
report is of interest to CEOs, company
owners, managers, and investors in the
Ukrainian dairy industry. Relevant to all
stakeholders, this outline is not targeted at
energy efficiency experts only; hence, the
use of technical jargon has been minimized,
and complex technical issues are simplified.
© GIZ Ukraine 2020, outline dairy plants
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The Deutsche Gesellschaft für Interna-
tionale Zusammenarbeit (GIZ) GmbH, is
a German development agency. Active
in 120 countries around the world, GIZ is
a provider of international cooperation
services for sustainable development
and international education work and
strives towards a more sustainable
future. GIZ has over 50 years of experi-
ence in a wide variety of areas, includ-
ing economic development and
employment, energy, environment,
peace, and security. GIZ diverse exper-
tise is in high demand around the globe
and it continues to collaborate with the
German Government, European Union
institutions, the United Nations, the
private sector, and governments of
other countries. GIZ collaborates with
businesses, NGOs, and research institu-
GIZ work in Ukraine
tions, fostering interaction between
development policy and other policy
fields and areas of activity. The German
Federal Ministry for Economic Coopera-
tion and Development (BMZ) is GIZ main
commissioning party.
GIZ has been assisting Ukraine since
1993 in its transition to a democratic
state based on the rule of law. Current-
ly, 308 national and 60 international
employees and one development
worker are working in the office and on
projects. Located in Kyiv, the country
office opened in 2009.
Ukrainian-German cooperation cur-
rently focuses on good governance,
energy efficiency, and sustainable
economic development.
© GIZ Ukraine 2020, outline dairy plants
6
Economics is the principal driver for
industry and, subsequently, the largest
incentive for increasing energy efficiency is
to lower total operating costs. Fortunately,
there are numerous opportunities for
increasing efficiency in small- to
medium-sized companies. Studies have
shown that up to 35% of energy
consumption within the entire Ukrainian
industry could be reduced in the near term
throughcost-effectiveefficiencymeasures.
The Federal Ministry for Economic
Cooperation and Development of
Germany (BMZ) pledged its support for
the Ministry for Development of
Economy, Trade and Agriculture of
Ukraine (MDETA) and has since
What is the Advisory Services for Energy Efficiency
in Companies project?
implemented a range of measures to
bolster means for improving energy
efficiency. One of them is the project
Advisory Services for Energy Efficiency
in Companies that GIZ has been
implementing since 2017, on behalf of
the German Government.
The project provides direct technical
support to Ukrainian industries, which
includes conducting energy audits and
developing pilot projects, which are
specifically tailored to the needs of
local industries. The results of these
energy audits enable Ukrainian
industries to develop technically and
economically sound energy efficiency
investment measures.
SinceOctober2018,ateamofnationaland
international certified energy auditors has
assessed the level of energy efficiency of
65 industries according to ISO standard
50002, Part 2. This audit phase was
completed in July 2019, with a focus on
industrial sectors such as bakeries, dairy
production, and non-metallic building
materials. As a result, 20 companies were
selected to be audited for investment
gradeaccordingtoISO50002type3,which
was concluded in March 2020.
were audited according to
ISO standard 50002
65 industries
© GIZ Ukraine 2020, outline dairy plants
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The current outline is a byproduct of
these activities, taking advantage of
assessing 13 dairy plants, and identifying
their energy use patterns to determine
promising energy-saving measures.
The outline reveals typical consumption
profiles as a first approximation, which
contributes to a better understanding
of energy efficiency in the Ukrainian
industrial sectors. In turn, this also
provides greater comparability amongst
sectors. Subsequently, this document
has the potential to stimulate and
encourage decision-makers to put
energy efficiency into practice.
© GIZ Ukraine 2020, outline dairy plants
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What is an energy
audit according
ISO 50002?
What is an investment-grade audit?
Owners or managers of industrial parks
and factories are not always aware of
the possibilities for energy efficiency
improvements. Conducting an energy
audit is the first step to investigate the
opportunities for energy savings, priori-
tizing projects, tracking progress, and
making system adjustments after
investments.
ISO 50002 specifies the process require-
ments for carrying out a comprehen-
sive energy audit. It is applicable to all
types of establishments and organiza-
tions, and all forms of energy and
energy use. This standard also specifies
the principles of carrying out energy
audits, requirements for the common
processes during energy audits.
An investment-grade audit is the most
detailed energy audit. It analyzes the
financial aspects of energy savings and
the return on investment from potential
changes or upgrades. A building opera-
tor typically uses the investment-grade
audit as a budgeting tool when planning
facility upgrades.
© GIZ Ukraine 2020, outline dairy plants
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The dairy industry plays an important role in
ensuring food security in Ukraine. However,
over the past five years, the volume of
productionintheUkrainiandairyindustryhas
decreased.Thisisprimarilyduetothereduc-
tionofrawmilksupplytodairyfactories.Thus,
at the end of the first half of 2020, dairy
processing enterprises of Ukraine received
1,800,000 tons of basic fat milk, which is 7.1%
less than in the same period last year1
. The
mainreasonbehindthisisraisingmilkquality
standardsandreducedprofitabilityofhouse-
hold cattle keeping. The decrease in dairy
productionisalsoattributedtoareductionin
annual per capita consumption of dairy
productsduetoadecreaseinthepurchasing
powerofthepopulation.Thedropinproduc-
tionvolumesofdairyfactoriessignificantly
Challenging economic environment and its impact on
energy efficiency
affected their operating mode, the workload
of production departments, technological
lines,andenergy-intensiveequipment.This,in
turn, led to an increase in specific energy
consumptionpertonofproducts.Andtaking
into account rising energy costs in recent
years, we observe a significant increase in
production costs. Therefore, in order to
reduce energy expenses, it is necessary to
implement an energy management system
in dairy factories in accordance with the
international standards (ISO 50000). This will
allow an ongoing optimization of energy
consumption and help implement energy
efficiency measures. The following chapters
of this outline present the key indicators of
the most promising energy efficiency
measuresfordairyenterprisesinUkraine.
© GIZ Ukraine 2020, outline dairy plants
1. http://avm-ua.org/uk/post/ponad-tretina-moloka-viroblenogo-na-mtf-ekstra-akosti
10
Carbon dioxide (CO2
) is a colorless gas formed during the combustion of any
material containing carbon and important greenhouse gas.
Carbon dioxide equivalent CO2
eq is a measure used to compare the emissions
from various greenhouse gases based upon their global warming potential.
For example, the global warming potential for methane over 100 years is 21.
This means that emissions of one metric ton of methane equivalent to emis-
sions of 21 metric tons of carbon dioxide.
What sources of energy are used and in which quantity?
The 13 assessed industries consumed
between 2.3 and 49.5 GWh of energy in
2018. The inclusion of both large
industries and smaller dairy plants in
the auditing process accounts for the
striking difference between the
smallest and largest value.
The enterprises can be split into two
groups by their energy consumption
levels, the one consuming from 2.3 to
8.6 GWh a year, and the one with
consumption between 17.3 and 49.5
GWh/year. The annual average repre-
sented by the last bar to the right
makes 16.8 GWh, which is closer to the
lower margin of the upper group.
© GIZ Ukraine 2020, outline dairy plants
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Figure 1, Electricity, natural gas, wood, and coal by each
production facility in GWh and emissions in thousands of
tCO2
eq in 2018
Gigawatt hours, abbreviated as GWh, is a unit of energy repre-
senting one billion (1 000 000 000) watt-hours and is equivalent
to one million kilowatt-hours.
Electricity GWh/year
Natural gas GWh/year
Emissions in thousands tCO2
eq/year Total consumption GWh/year
1 2 3 4 5 6 7 8 9 10 11 12 13 Average
26.1
7.0 15.5
10.1
36.9
12.6
7.8
2.2
4.4
1.5
5.0
2.8
21.9
5.9
0.1
1.5
4.1
0.6
6.2
2.4 1.9
0.8
2.2
0.1
6.5
7.6 10.2
7.4
1.6
3.3
11.8
2.3
4.3
As seen in figure one, each bar stands for an individual production site revealing its specific annual consumption of electricity (blue), natural gas (red), wood, and coal
(yellow) in GWh in 2018. The total energy consumption and carbon dioxide emissions in thousands of tons of CO2
eq is highlighted in green.
What sources of energy are used and in which quantity?
© GIZ Ukraine 2020, outline dairy plants
33.1 25.6 49.5 17.3 5.9 7.8 29.4 4.9 4.8 8.6 2.7 2.3 26.0 16.8
11.6 12.4 19.0 6.5 2.3 3.6 10.5 2.7 2.3 3.5 1.1 1.0 13.0 6.9
Wood, and coal GWh/year
12
Electricity consumption
Natural gas consumption
Wood consumption
Coal consumption
The next pie chart reveals the share of the
main energy sources represented by
electricity,naturalgas,wood,andcoalin2018.
As Figure 2 shows, the dairy industry is
highly dependent on natural gas as its
primary energy carrier (57.8%) with
electricity trailing well behind (31.4%). This
is due to the extensive use of gas in the
production processes, e. g., for separation,
homogenization, thermal treatment, and
pasteurization. Other natural gas consum-
ing processes are: steam production, area
heating, water heating for business needs,
Figure 2, Shares of electricity, natural gas, wood,
and coal in 2018.
31.4%
3.1%
7.7%
57.8%
Energy use in the dairy industry
© GIZ Ukraine 2020, outline dairy plants
etc. Wood and coal are mostly used for
heating and hot water supply purposes
accounting for 10.8% of total energy
consumption.
Production equipment is the principal
natural gas consumer.
The key electricity consumers are produc-
tion equipment, compressors, refrigerat-
ing equipment, milk preparation phase,
and lighting.
13
Energy use in the dairy industry
Energy consumption for heating and hot
water supply (HWS)
Energy consumption in production
processes
Energy losses
Figure 3, Energy consumption shares
among production processes,
infrastructure and losses in 2018.
2.8%
80.2%
17.0%
Energy losses occur throughout
the energy supply and distribution
system. Energy is lost in power
generation and steam systems,
both off-site at the utility and
on-site within the plant boundary,
due to equipment inefficiency and
mechanical and thermal limita-
tions. Energy is lost in distribution
and transmission systems carry-
ing energy to the plant and within
the plant boundaries. Losses also
occur in energy conversion sys-
tems (e.g. heat exchangers, pro-
cess heaters, pumps, motors)
where efficiencies are thermally
or mechanically limited by materi-
als of construction and equip-
ment design.
The chart on Fig. 3 indicates how much
energy is consumed by a typical dairy
plant for production, heating, and hot
water supply purposes.
As can be seen, 80.2 % of the energy is
consumed by the production processes
with the heating and hot water supply
systems using about 2.8 %, mostly of
wood and coal, and the remaining 17 %
are considered as losses.
© GIZ Ukraine 2020, outline dairy plants
0
14
AsitisshowninFig.4,theaverageelectric-
ity consumption of the main production
equipment stands at 29.3 %, compressors
consume 34.8 %, and other consumers,
35.9 %. The maximum and minimum
electricity consumption values are includ-
ed in numeric format. It should be noted
some production equipment had to be
includedunder‘otherconsumers’asitwas
not possible to separate it due to the lack
of technical metering systems. Electricity
losses have been included here, too.
Figure 5 shows the main groups of
consumers of natural gas (used mostly
for production purposes like dryers,
evaporators, pasteurizers, etc.) and
wood, and coal. The range of production
equipment also includes boiler plants
immediately supplying production
Whatsubsectionsoftheproductionconsumethemostenergy?
Figure 4, What are the relevant users
of electricity?
Figure 5, What are the relevant users
of natural gas, wood, and coal ?
Total consumption of electricity
/natural gas/wood, and coal
(Average)
Minimum values Maximum values
0
20%
40%
60%
80%
25%
50%
75%
100%
69.3%
29.3%
15.3%
85.5%
77.8%
33.6%
27.6%
12%
15% 5.2%
3.8%
0.4%
9.1%
3.4%
1%
42.8%
34.8%
19.2%
39.9%
35.9%
18.7%
Technical
equipment
Losses Others Heating
Technical
equipment
Compressors Others
© GIZ Ukraine 2020, outline dairy plants
processes with steam. The average
consumption share of the production
equipment is at 77.8 % while heat losses
stand at 15 %, other consumers that
couldn’t be separated take 3.8 %, and
the heating accounts for 3.4 % energy.
15
Purchase price of electricity
Purchase price of natural gas
Purchase price of wood and coal
44.6%
(7.0 million UAH)
46.8%
(7.3 million UAH)
8.6%
(1.3 million
UAH)
Howmuchmoneyisspenton energyconsumedbydairyplants?
Energy costs depend upon the amount of
energy consumed, whilst the prevailing
energy price scale and fixed costs for the
supply installation are subject to
fluctuations over time. Typical purchasing
prices on electricity and natural gas per
consumedMWhfortheyears2016to2019
are highlighted in table one.
While for electricity the average price
per MWh had increased from 2100 UAH
in 2016 steadily to 2460 UAH in 2019, the
Figure 6, Purchasing costs of
electricity, natural gas, wood, and coal
for a dairy plant in 2018.
price for natural gas dropped in 2018
from 1220 UAH to 690 UAH in 2019.
Figure six shows the total and the share
between costs spent on natural gas,
wood, coal, and electricity by a typical
dairy plant in 2018. That year 7.3 million
UAH (46.8% energy costs) were spent on
natural gas, 7 million UAH (44.6% energy
costs)wereusedtopayforelectricityand
1.3 million UAH (8.6% energy costs) were
paid for wood and coal.
Table 1, Costs of
energy from 2016 to
2019 in UAH/MWh
* The price of natural gas has
been reduced due to
amendments by the Cabinet of
Ministers of Ukraine # 293.
© GIZ Ukraine 2020, outline dairy plants
Electricity
Year Natural gas
2100
2016 690
2180
2017 1030
2460
2018 1220
2460
2019 690*
Wood and coal
750
800
896
893
16
What are energy-efficiency measures and where
is the largest savings potential?
Energy Efficiency Measures (EEMs)
are energy-using appliance, equip-
ment, control system, or practice
whose implementation results in
reduced energy use while main-
taining a comparable or higher
level of service. EEMs decrease the
amount of energy needed to pro-
vide the same level of comfort or
utility (e.g. a heating or cooling
system that provides the same
comfort with less fuel or electricity;
a boiler of comparable size and
features that uses less gas).
To manage the diversity of potential EEMs, we classified them into the following subgroups of consumers:
1 Heat generation
and distribution
2 Compressed
air
3 Electrical
devices
4 Ventilation and
air-conditioning
5 Lighting
7 Production
processes
© GIZ Ukraine 2020, outline dairy plants
Refrigerating
systems
6
17
651
16
264
28
333
527
Heat generation and distribution
Compressed air
Electrical devices
Ventilation and air-conditioning
Lighting
Production processes
What are the potential annual energy savings?
Figure 7, Respective energy saving areas in the dairy sector
The next figure shows potential yearly
costs saving in MWh grouped per
consumer types and averaged for the
13 assessed plants.
The group of most relevant consumers
in terms of their energy-saving poten-
tial comprises, first of all, compressed
air systems (651 MWh/year) followed by
production processes (527), boiler
plants and heat distribution networks
(428), refrigerating systems (333), heat-
ing and ventilation (264), and lighting
(28). Electric motors rank the last (16).
428
© GIZ Ukraine 2020, outline dairy plants
Refrigerating systems
18
What are the relevant cost-saving areas in dairy industries?
The next figure shows the potential
yearly costs savings achieved when
implementing EEMs. Due to energy
costs being directly related to energy
consumption and places in which the
most energy losses are sustained, the
ranking is led by production processes
Figure 8, Relevant areas of energy
cost savings in dairy industry.
(1,329 UAH/year) followed by boiler
plants and the heat distribution (516),
and compressed air system (486).
Refrigerating systems (321), ventilation
and air-conditioning (299), and lighting
(52) come next with electric motors
taking the last place (46).
© GIZ Ukraine 2020, outline dairy plants
486
46
299
52
321
1329
Heat generation and distribution
Compressed air
Electrical devices
Ventilation and air-conditioning
Lighting
Production processes
516
Refrigerating systems
19
What are the investment opportunities
for implementing proposed
energy-saving measures?
Figure9presentsthepotentialinvestment
opportunities for EEMs within the energy
audit for each consumer subgroup.
The consumer group comprising boiler
plants and heat distribution leads by
the figure of total required
investments (3,329 UAH); it is followed
by production processes (1,851),
refrigeration systems (1,144)
ventilation and air conditioning (615),
compressed air (382), lighting (91), and
electric motors (50).
Figure 9, What are investment opportunities of implementing proposed
energy-saving measures?
© GIZ Ukraine 2020, outline dairy plants
382
50
615
91
1144
1851
Heat generation and distribution
Compressed air
Electrical devices
Ventilation and air-conditioning
Lighting
Production processes
3329
Refrigerating systems
Human-induced warming reached
approximately 1°C (likely between
0.8°C and 1.2°C) above pre-indus-
trial levels in 2017, increasing at
0.2°C (likely between 0.1°C and
0.3°C) per decade (high confi-
dence).1
Global warming has brought
about possibly irreversible
alterations to Earth's geologi-
cal, biological and ecological
systems. These changes have
led to the emergence of large-
scale environmental hazards
to human health, such as
extreme weather, ozone deple-
tion, increased danger of wild-
land fires, loss of biodiversity,
stresses to food-producing
systems, and the global spread
of infectious diseases. In addi-
tion, climatic changes are
estimated to cause over
150,000 deaths annually.2
20
How can your industry contribute to mitigating climate change?
The implementation of energy effi-
ciency measures will strengthen your
competitiveness as it reduces your
operational costs. In the same breath, it
addresses another, all overlaying and
pressing challenge: Climate change.
The rise in global average tem-
perature is attributed to an increase in
greenhouse gas emissions. There is a
link between global temperatures,
greenhouse gas concentrations –
especially CO2
– and its emission due
to the use of fossil energy sources in
industries.
1) Global Warming of 1.5 ºC, IPCC, March 2020,
https://www.ipcc.ch/sr15/
2) Effects of global warming on humans,
Wikipedia, March 2020,
https://en.wikipedia.org/wiki/Effects_of_global_w
arming_on_humans
© GIZ Ukraine 2020, outline dairy plants
21
How can your industry contribute to mitigating climate change?
Figure 10, Emission reductions of tCO2
eq/year, implementing energy saving-measures
recommended in the energy audit report
Figure 10 shows the potential tCO2
eq
reduction, if the proposed energy saving
measures are implemented in a typical
industrial dairy plant.
The most significant CO2
eq emission
reduction potential have EEM to be
implemented in the refrigerating systems
group (304 tCO2
eq/year), compressed air
(137), production processes (129), boiler
plant and heat distribution (104),
ventilation and air conditioning (36),
lighting (25), and electric motors (15).
© GIZ Ukraine 2020, outline dairy plants
137
15
36
25
304
129
Heat generation and distribution
Compressed air
Electrical devices
Ventilation and air-conditioning
Lighting
Production processes
104
Refrigerating systems
Relevant energy efficiency measures
Every industrial dairy plant is unique
and requires tailored approaches to
improve its energy efficiency. Never-
theless, the assessment of the 13
dairy plants revealed clear patterns
in regard to promising improvements.
The most relevant energy-saving
measures in terms of investment
opportunities, energy savings, costs
savings, payback period, and savings
of tCO2
eq are presented in Table 2.
22
© GIZ Ukraine 2020, outline dairy plants
23
© GIZ Ukraine 2020, outline dairy plants
Table 2
Сapital
expenditures
thousand UAH
Thermal insulation of boilers
and heat transport lines
Dry return to the boiler plant
Utilisation of heat energy
from NH3 compressors
Installation of frequency control
devices on electric motors
Modernization of the lighting system
Insulation of ice water pipelines
Installation of waste heat exchangers
on freon condenser units
Artificial fog use on
freon condenser units
Savings
thousand UAH
Energy savings
MWh average
Simple payback
period years
Savings
tCO2
eq*
156 158 199 1.5 43
1,492 529 462 3.4 95
273 701 967 0.9 195
50 46 16 1.8 15
88 37 26 1.5 24
202 11 26 4.2 24
3,954 1,219 1,036 2.9 258
387 18 44 4.2 40
Typical EEMs in dairy industry
* Emission factor per 1 MWh of electricity - 0.912 tCO2
eq; per 1 MWh of natural gas - 0.202 tCO2
eq; per 1 MWh of coal- 0.354 tCO2
eq.
https://publications.jrc.ec.europa.eu/repository/bitstream/JRC90405/part%20ii%20ru%20new%20pubsy%20.pdf
Table 3, Energy efficiency measures developed in the framework of energy audits, stratified by payback period
24
As Table 3 demonstrates, a large
proportion of proposed investment
opportunities have a short payback
period.
of the energy savings can be
reached by implementing
energy-saving measures with
a simple cost recovery period
below 2 years
45%
< 2 years
2 to 5 years
> 5 years
Number of EEMs
Simple Payback
period
Energy Savings
MWh/year
Share Energy savings Emission reduction
tCO2
eq
3-4 1,021 45% 247
2-3 779 35% 268
1-2 446 20% 101
© GIZ Ukraine 2020, outline dairy plants
In typical dairy production, the imple-
mentation of up to two energy-saving
measures, with each investment costs
of below 60,000 UAH would contribute
to 0.09% total potential energy savings.
Three measures with investment cost
from 60,000 UAH to 300,000 UAH each
would bring a potential saving of
16.64%, and three measures with
investment above 300,000 UAH each
could save 83.37% of the total energy
consumed.
Table 4, Energy-saving measures
developed in the context of
cost-based energy audits
25
EEM with investment cost <60,000 UAH
EEM with investment cost from 60,000 – 300,000 UAH
EEM with investment cost >300,000 UAH
Number of
EEMs
Energy
Savings
MWh/year
Share
Energy
savings
Emission
reduction
tCO2
eq
EEM 1-2 22 0.99% 14
Electricity 1-2 14 0.60% 12
Natural Gas 0-1 6 0.27% 1
wood, coal 0-1 3 0.11% 1
EEM 2-3 351 15.64% 94
Electricity 1-2 36 1.61% 25
Natural Gas 0-1 287 12.79% 58
wood, coal 0-1 28 1.25% 11
EEM 2-3 1,873 83.37% 507
Electricity 1 257 11.43% 138
Natural Gas 1-2 1,362 64.64% 275
wood, coal 0-1 254 11.31% 94
© GIZ Ukraine 2020, outline dairy plants
Or in other words, what measures have
the greatest impact leading to the
highest reduction of greenhouse gas
emissions in relation to the specific
investment?
Heat utilization with ammonia com-
pressors leads the bulk chart (716 g
CO2
eq/year and UAH invested); it is
followed by frequency regulation of
electric drives (292), thermal insulation
of boilers and heating pipes (277), dry
return to the boiler room, and lighting
modernization (272 each), insulation of
ice water pipes (118), artificial fog for
freon condenser units (103), and heat
recovery units in production processes
(65).
What is the CO2
eq reduction/investment
ratio through the implementation of EEMs?
26
Figure 11, reduction emission grams of CO2
eq/year and invested UAH
Thermal insulation of boilers and
pipes
Restore dry return to the boiler
room
Utilization of thermal energy of
ammonia compressors
Frequency regulation in electric
motors
Modernization of the lighting
system
Insulation of the ice water
pipelines
Installing the heat recuperator
on the dryer
277
272
716
292
272
118
The use of artificial fog
formation on condensation
freon blocks
103
65
© GIZ Ukraine 2020, outline dairy plants
Energy consumption, potential savings
The figure above shows the proportions among energy
consumption, and the potential savings if the proposed
energy-saving measures were implemented.
For better detail, the diagram has been split depending on
energy consumption per plant from 2.26 to 8.65 GWh/year
andfrom17.3to49.5GWh/year.
27
Energy consumption GWh/year Energy savings GWh/year
Figure 12, What are typical consumptions,
potential savings, and savings through the
implementation of suggested measures?
© GIZ Ukraine 2020, outline dairy plants
Thetotalenergyconsumption(16.8GWh/yearonaverage).
Lower values indicate the total saving potential (4.45
GWh/year on average); one figure further down indicates
the energy saving volume achievable by implementing the
saving measures suggested in energy audits (2.13
GWh/yearonaverage).
1 2 3 4 5 6
0
10
20
30
40
50
33.1
8.3
6.2
49.5
12.4
6.9
25.6
5.1
1.2
17.3
4.3
3.3
26.0
9.1
4.8
29.4
7.4
0.1
1 2 3 4 5 6 7
0
2
4
6
8
10
5.92
1.5
0.6
4.85
2.6
0.8
4.77
1.2
1.1
2.73
0.8
0.6
2.26
0.7
0.2
8.65
1.3
0.6
7.81
3.3
1.4
Saving through the implementation of suggested measures GWh/year
Examples of EnPIs are energy
consumption per time, energy con-
sumption per unit of production, and
multi-variable models.
The given values are to be understood
as a rough reference, not directly
comparable due to the different
product range, product mix, and pro-
duction processes of each industry.
But they can serve as stimulation for
managers in companies to develop
their own specific set of EnPIs.
How much energy is stored in dairy products we buy?
28
To address this question, we will
have to introduce a few terms that
might be new to you.
According to the ISO 50001 standard,
“energy performance is the measur-
able result related to energy efficien-
cy, energy use, and energy consump-
tion.” The energy management sys-
tem performance can be measured
using Key Performance Indicators
(EnPIs). “Energy performance indica-
tor is a quantitative value or measure
of energy performance, as defined by
theorganization.”Itisimportanttoset
appropriate EnPIs for monitoring and
measuring the energy performance
because they show how well the
system is functioning.
© GIZ Ukraine 2020, outline dairy plants
1,17
How much energy is stored in dairy products we buy?
The next chart indicates the energy consumption per kg of dairy product (mix).
Figure 13, Energy consumption in
kWh per production of 1 kg of
fermented dairy products in 2018
29
1 2 3 4 5 6 7 8 9 10 11 12 13
Specific energy consumption per production unit at 13 assessed
enterprises in 2018 ranged from 0.13 to 3.29 kWh/kg; the average value
is 1.17 kWh/kg.
1.00
2.00
3.00
4.00
0
2,41
0,29
0,56
1,01
0,27
3,29
0,40
0,68
3,13
0,13
0,40
2,47
0,22
© GIZ Ukraine 2020, outline dairy plants
Take away messages
30
The total annual energy con-
sumption of the 13 assessed dairy
plants in 2018 ranged from 2.3 to 49.5
GWh with the average value of 16.8 GWh.
The dairy industry is
highly dependent on natu-
ral gas as its energy
source, which makes for
57.8% of total consumption
with electricity being twice
as less at 31.4%. Wood and
coal account for 10.8%.
Respectively, relevant users of
electricity are production equipment
(29.3%), compressors (34.8%), and
other (35.9%).
While the average price for electricity
steadily increased from 2100 UAH per
MWh in 2016 to 2460 UAH per MWh in
2019, the price for natural gas dropped
from1220UAHin2018to690UAHin2019.
In 2018 a typical dairy plant 3.7
million UAH (48% of the energy costs)
on natural gas, 7 million UAH (44.6%) on
electricity, and 1.3 million UAH(8.6%) on
wood and coal.
Relevant consumer groups from
the standpoint of potential savings
are compressed air (651 MWh/year)
followed by production processes
(527), boiler plants and heat distribu-
tion (428), refrigeration systems (333),
ventilation and heating (264), and light-
ing (28). The electric motors occupy
the last place (16).
80% of the energy
consumption can be asso-
ciated with the production
processes. The heating
systems and hot water
supplytakeabout3%(mostly
from wood and coal) with
the remaining 17% deemed
losses.
Themainconsumergroup
of natural gas, wood and
coal is the production equip-
ment that consumes 77.8% of
energy. Heat losses stand at
15% while other consumers
use 3.8%, and 3.4% is spent on
on heating.
29 23 19 12
15 1 1
29,3 34,8 35,9
%
10,8%
57,8%
31,4%
80%
17%
3%
© GIZ Ukraine 2020, outline dairy plants
77,8%
48%
44,6%
8,6%
%
31
Potential yearly costs savings
achievable with the implementation of
EEMs suggested in the energy audits
are production processes – 1,329 (UAH/-
year); boiler plants and heat distribution
system (516); compressed air systems
(486). Further down are refrigeration
systems (312), ventilation and air-condi-
tioning (299), lighting (52), and electric
motors (46) in the last place.
The biggest emission reduction
potential (in tCO2
eq) can be
unleashed with EEMs implemented in
the group of refrigeration systems
(304 tCO2
eq/year), compressed air
production (137), production processes
(129), boiler plant and heat distribution
systems (104), then ventilation and
air-conditioning (36), lighting (25) and
electrical motors (15).
45% of energy savings can be
reached by implementing energy-sav-
ing measures with a payback period of
less than 2 years.
In 2018, the specific energy consump-
tion per unit of fermented milk products
at 13 assessed dairy plants ranged from
0.13 to 3.29 kWh/kg with an average
value of 1.17kWh/kg.
In typical dairy production, the imple-
mentation of two energy saving mea-
sures with the investment cost of less
than 60,000 UAH each would contrib-
ute to 0.99% of the total possible
energy savings. Three measures with
the investment cost from 60,000 UAH
to 300,000 UAH each would give a
potential saving of 16.64%, and three
measures with the investment cost of
more than 300,000 UAH each would
save 83.37% of the energy consumed.
Prospective energy efficiency mea-
suresinclude: heat recovery from ammo-
nia compressors (repayment period of 0.9
years), insulation of boiler plants and heat
transport lines (1.5), lighting modernization
(1.5), and installation of frequency-based
controls on electric motors (1.8).
The heat distribution group leads
in the amount of required invest-
ments with 3,329 UAH; it is followed
by production processes (1,851),
refrigeration systems (1,114), air
conditioning and ventilation (615),
compressed air production (382),
lighting (91) and electrical motors
(50).
© GIZ Ukraine 2020, outline dairy plants
44 17 16 11 10 2
2
%
45 25 15 8 5 1
1
%
41 18 17 14 5 3 2
%
83,37%
16,64%
0,99%
14
Space heating control improvements – office
wet systems temperature compensation and
boiler optimization; process area convector
heater advanced controls for convection
heaters in the production areas
A small selection of energy-saving actions
1
Turn-off campaigns for conveyors.
(optimization of conveyors operation)
2 Compressed air management practices
3
Installation of more efficient frequency-
regulated air compressor plant
4
Surveying of compressed air systems to
identify and eliminate leaks
5 Using artificial fogging machines
6 Heat utilization from cooling towers
7
Using the cooling potential of the whey
after the nano-filtering process
8
Replacing freon-based compressors
with NH3 ones
9 High-efficiency lighting applications – the
installation of T5 fluorescent high-frequency
(or LED) systems in production areas
10
Occupancy control of lights in lower use
areas such as, offices, meeting rooms,
stores and plant rooms
11
Energy performance monitoring and
targeting programs
12
Improved insulation of cold-water
pipes and tanks.
13
Reducing the amount of ambient air entering
dispatch areas – by installing seals and air
curtains
14
15 Using variable speed drives (VSDs) in
enterprise ventilation systems
16 Improved insulation of steam distribution
lines
17
Energy-saving and energy efficiency
awareness-raising campaigns for the staff
and other stakeholders

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How much energy goes into making a block of cheese?_en

  • 1. How much energy goes into making a block of cheese? Lessons learned from 13 energy audits in Ukrainian dairy plants
  • 2. Published by: Advisory Services for Energy Efficiency in Companies Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ) Registered offices: 16b Antonovycha St., 01004, Kyiv, Ukraine Т.: +380 44 594 07 60 https://www.giz.de/ukraine-ua Overall Project Management: Ricardo Külheim Concept and text: Stefan Landauer Data analysis: Pavlo Pertko - ENERGOMANAGEMENT PRO LLC With contribution by: Alina Rekrutiak, Anatolii Cherniavskiy, Hanna Bodnar, Svitlana Chebotaryova Design: Kateryna Yashyna Image credits: the Gate agency, https://www.shutterstock.com/ GIZ is responsible for the content of this publication. © GIZ 2020 2 © GIZ Ukraine 2020, outline dairy plants
  • 3. 3 Contents What is this brochure about? GIZ work in Ukraine What is the Advisory Services for Energy Efficiency in Companies project? Challenging economic environment and its impact on energy efficiency What sources of energy are used and in which quantity? Energy use in the dairy industry What subsections of the production consume the most energy? How much money is spent on energy consumed by dairy plants? What are energy-efficiency measures and where is the largest savings potential? Relevant energy efficiency measures What is the CO2eq reduction/investment ratio through the implementation of energy efficiency measures? Energy consumption, potential savings How much energy is stored in dairy products we buy? Take away messages 04 05 06 09 10 12 14 15 16 22 26 27 28 30 © GIZ Ukraine 2020, outline dairy plants
  • 4. 4 What is this brochure about? Dear reader, If you are familiar with dairy production then you might know that it takes a cow between 50 and 70 hours to produces 8 gallons of milk per day, which equals over 100 glasses of milk. That to make one gallon of ice cream, it takes 12 pounds of whole milk, 10 lb to make 1 ls of cheese, and 21.2 lb to make 1 lb of butter. But do you know how much energy it takes to turn raw milk into final product. How much money is spent on the energy needed to produce every pound of ice cream, cheese, or butter? Do you know which dairy processes are most energy-intensive and what is the energy-saving potential of the dairy indus- try? Or what short-, medium- and long-term energy-saving measures should be viably implemented, and with which effect? Finally, are you aware of ways thet will help protect the environ- ment and save your wallet? This short outline provides insight into the energy consumption, energy costs, energy- saving potential, specific energy-saving measures, and the greenhouse gas impact of dairy industries in Ukraine. It reports the results of a serial of energy audits, provided by the Deutsche Gesellschaft für Interna- tional Zusammenarbeit (GIZ) GmbH and demonstrates the impact of GIZ projects currently being implemented within the energy efficiency and climate sector in Ukraine. Therefore, the content of this short report is of interest to CEOs, company owners, managers, and investors in the Ukrainian dairy industry. Relevant to all stakeholders, this outline is not targeted at energy efficiency experts only; hence, the use of technical jargon has been minimized, and complex technical issues are simplified. © GIZ Ukraine 2020, outline dairy plants
  • 5. 5 The Deutsche Gesellschaft für Interna- tionale Zusammenarbeit (GIZ) GmbH, is a German development agency. Active in 120 countries around the world, GIZ is a provider of international cooperation services for sustainable development and international education work and strives towards a more sustainable future. GIZ has over 50 years of experi- ence in a wide variety of areas, includ- ing economic development and employment, energy, environment, peace, and security. GIZ diverse exper- tise is in high demand around the globe and it continues to collaborate with the German Government, European Union institutions, the United Nations, the private sector, and governments of other countries. GIZ collaborates with businesses, NGOs, and research institu- GIZ work in Ukraine tions, fostering interaction between development policy and other policy fields and areas of activity. The German Federal Ministry for Economic Coopera- tion and Development (BMZ) is GIZ main commissioning party. GIZ has been assisting Ukraine since 1993 in its transition to a democratic state based on the rule of law. Current- ly, 308 national and 60 international employees and one development worker are working in the office and on projects. Located in Kyiv, the country office opened in 2009. Ukrainian-German cooperation cur- rently focuses on good governance, energy efficiency, and sustainable economic development. © GIZ Ukraine 2020, outline dairy plants
  • 6. 6 Economics is the principal driver for industry and, subsequently, the largest incentive for increasing energy efficiency is to lower total operating costs. Fortunately, there are numerous opportunities for increasing efficiency in small- to medium-sized companies. Studies have shown that up to 35% of energy consumption within the entire Ukrainian industry could be reduced in the near term throughcost-effectiveefficiencymeasures. The Federal Ministry for Economic Cooperation and Development of Germany (BMZ) pledged its support for the Ministry for Development of Economy, Trade and Agriculture of Ukraine (MDETA) and has since What is the Advisory Services for Energy Efficiency in Companies project? implemented a range of measures to bolster means for improving energy efficiency. One of them is the project Advisory Services for Energy Efficiency in Companies that GIZ has been implementing since 2017, on behalf of the German Government. The project provides direct technical support to Ukrainian industries, which includes conducting energy audits and developing pilot projects, which are specifically tailored to the needs of local industries. The results of these energy audits enable Ukrainian industries to develop technically and economically sound energy efficiency investment measures. SinceOctober2018,ateamofnationaland international certified energy auditors has assessed the level of energy efficiency of 65 industries according to ISO standard 50002, Part 2. This audit phase was completed in July 2019, with a focus on industrial sectors such as bakeries, dairy production, and non-metallic building materials. As a result, 20 companies were selected to be audited for investment gradeaccordingtoISO50002type3,which was concluded in March 2020. were audited according to ISO standard 50002 65 industries © GIZ Ukraine 2020, outline dairy plants
  • 7. 7 The current outline is a byproduct of these activities, taking advantage of assessing 13 dairy plants, and identifying their energy use patterns to determine promising energy-saving measures. The outline reveals typical consumption profiles as a first approximation, which contributes to a better understanding of energy efficiency in the Ukrainian industrial sectors. In turn, this also provides greater comparability amongst sectors. Subsequently, this document has the potential to stimulate and encourage decision-makers to put energy efficiency into practice. © GIZ Ukraine 2020, outline dairy plants
  • 8. 8 What is an energy audit according ISO 50002? What is an investment-grade audit? Owners or managers of industrial parks and factories are not always aware of the possibilities for energy efficiency improvements. Conducting an energy audit is the first step to investigate the opportunities for energy savings, priori- tizing projects, tracking progress, and making system adjustments after investments. ISO 50002 specifies the process require- ments for carrying out a comprehen- sive energy audit. It is applicable to all types of establishments and organiza- tions, and all forms of energy and energy use. This standard also specifies the principles of carrying out energy audits, requirements for the common processes during energy audits. An investment-grade audit is the most detailed energy audit. It analyzes the financial aspects of energy savings and the return on investment from potential changes or upgrades. A building opera- tor typically uses the investment-grade audit as a budgeting tool when planning facility upgrades. © GIZ Ukraine 2020, outline dairy plants
  • 9. 9 The dairy industry plays an important role in ensuring food security in Ukraine. However, over the past five years, the volume of productionintheUkrainiandairyindustryhas decreased.Thisisprimarilyduetothereduc- tionofrawmilksupplytodairyfactories.Thus, at the end of the first half of 2020, dairy processing enterprises of Ukraine received 1,800,000 tons of basic fat milk, which is 7.1% less than in the same period last year1 . The mainreasonbehindthisisraisingmilkquality standardsandreducedprofitabilityofhouse- hold cattle keeping. The decrease in dairy productionisalsoattributedtoareductionin annual per capita consumption of dairy productsduetoadecreaseinthepurchasing powerofthepopulation.Thedropinproduc- tionvolumesofdairyfactoriessignificantly Challenging economic environment and its impact on energy efficiency affected their operating mode, the workload of production departments, technological lines,andenergy-intensiveequipment.This,in turn, led to an increase in specific energy consumptionpertonofproducts.Andtaking into account rising energy costs in recent years, we observe a significant increase in production costs. Therefore, in order to reduce energy expenses, it is necessary to implement an energy management system in dairy factories in accordance with the international standards (ISO 50000). This will allow an ongoing optimization of energy consumption and help implement energy efficiency measures. The following chapters of this outline present the key indicators of the most promising energy efficiency measuresfordairyenterprisesinUkraine. © GIZ Ukraine 2020, outline dairy plants 1. http://avm-ua.org/uk/post/ponad-tretina-moloka-viroblenogo-na-mtf-ekstra-akosti
  • 10. 10 Carbon dioxide (CO2 ) is a colorless gas formed during the combustion of any material containing carbon and important greenhouse gas. Carbon dioxide equivalent CO2 eq is a measure used to compare the emissions from various greenhouse gases based upon their global warming potential. For example, the global warming potential for methane over 100 years is 21. This means that emissions of one metric ton of methane equivalent to emis- sions of 21 metric tons of carbon dioxide. What sources of energy are used and in which quantity? The 13 assessed industries consumed between 2.3 and 49.5 GWh of energy in 2018. The inclusion of both large industries and smaller dairy plants in the auditing process accounts for the striking difference between the smallest and largest value. The enterprises can be split into two groups by their energy consumption levels, the one consuming from 2.3 to 8.6 GWh a year, and the one with consumption between 17.3 and 49.5 GWh/year. The annual average repre- sented by the last bar to the right makes 16.8 GWh, which is closer to the lower margin of the upper group. © GIZ Ukraine 2020, outline dairy plants
  • 11. 11 Figure 1, Electricity, natural gas, wood, and coal by each production facility in GWh and emissions in thousands of tCO2 eq in 2018 Gigawatt hours, abbreviated as GWh, is a unit of energy repre- senting one billion (1 000 000 000) watt-hours and is equivalent to one million kilowatt-hours. Electricity GWh/year Natural gas GWh/year Emissions in thousands tCO2 eq/year Total consumption GWh/year 1 2 3 4 5 6 7 8 9 10 11 12 13 Average 26.1 7.0 15.5 10.1 36.9 12.6 7.8 2.2 4.4 1.5 5.0 2.8 21.9 5.9 0.1 1.5 4.1 0.6 6.2 2.4 1.9 0.8 2.2 0.1 6.5 7.6 10.2 7.4 1.6 3.3 11.8 2.3 4.3 As seen in figure one, each bar stands for an individual production site revealing its specific annual consumption of electricity (blue), natural gas (red), wood, and coal (yellow) in GWh in 2018. The total energy consumption and carbon dioxide emissions in thousands of tons of CO2 eq is highlighted in green. What sources of energy are used and in which quantity? © GIZ Ukraine 2020, outline dairy plants 33.1 25.6 49.5 17.3 5.9 7.8 29.4 4.9 4.8 8.6 2.7 2.3 26.0 16.8 11.6 12.4 19.0 6.5 2.3 3.6 10.5 2.7 2.3 3.5 1.1 1.0 13.0 6.9 Wood, and coal GWh/year
  • 12. 12 Electricity consumption Natural gas consumption Wood consumption Coal consumption The next pie chart reveals the share of the main energy sources represented by electricity,naturalgas,wood,andcoalin2018. As Figure 2 shows, the dairy industry is highly dependent on natural gas as its primary energy carrier (57.8%) with electricity trailing well behind (31.4%). This is due to the extensive use of gas in the production processes, e. g., for separation, homogenization, thermal treatment, and pasteurization. Other natural gas consum- ing processes are: steam production, area heating, water heating for business needs, Figure 2, Shares of electricity, natural gas, wood, and coal in 2018. 31.4% 3.1% 7.7% 57.8% Energy use in the dairy industry © GIZ Ukraine 2020, outline dairy plants etc. Wood and coal are mostly used for heating and hot water supply purposes accounting for 10.8% of total energy consumption. Production equipment is the principal natural gas consumer. The key electricity consumers are produc- tion equipment, compressors, refrigerat- ing equipment, milk preparation phase, and lighting.
  • 13. 13 Energy use in the dairy industry Energy consumption for heating and hot water supply (HWS) Energy consumption in production processes Energy losses Figure 3, Energy consumption shares among production processes, infrastructure and losses in 2018. 2.8% 80.2% 17.0% Energy losses occur throughout the energy supply and distribution system. Energy is lost in power generation and steam systems, both off-site at the utility and on-site within the plant boundary, due to equipment inefficiency and mechanical and thermal limita- tions. Energy is lost in distribution and transmission systems carry- ing energy to the plant and within the plant boundaries. Losses also occur in energy conversion sys- tems (e.g. heat exchangers, pro- cess heaters, pumps, motors) where efficiencies are thermally or mechanically limited by materi- als of construction and equip- ment design. The chart on Fig. 3 indicates how much energy is consumed by a typical dairy plant for production, heating, and hot water supply purposes. As can be seen, 80.2 % of the energy is consumed by the production processes with the heating and hot water supply systems using about 2.8 %, mostly of wood and coal, and the remaining 17 % are considered as losses. © GIZ Ukraine 2020, outline dairy plants
  • 14. 0 14 AsitisshowninFig.4,theaverageelectric- ity consumption of the main production equipment stands at 29.3 %, compressors consume 34.8 %, and other consumers, 35.9 %. The maximum and minimum electricity consumption values are includ- ed in numeric format. It should be noted some production equipment had to be includedunder‘otherconsumers’asitwas not possible to separate it due to the lack of technical metering systems. Electricity losses have been included here, too. Figure 5 shows the main groups of consumers of natural gas (used mostly for production purposes like dryers, evaporators, pasteurizers, etc.) and wood, and coal. The range of production equipment also includes boiler plants immediately supplying production Whatsubsectionsoftheproductionconsumethemostenergy? Figure 4, What are the relevant users of electricity? Figure 5, What are the relevant users of natural gas, wood, and coal ? Total consumption of electricity /natural gas/wood, and coal (Average) Minimum values Maximum values 0 20% 40% 60% 80% 25% 50% 75% 100% 69.3% 29.3% 15.3% 85.5% 77.8% 33.6% 27.6% 12% 15% 5.2% 3.8% 0.4% 9.1% 3.4% 1% 42.8% 34.8% 19.2% 39.9% 35.9% 18.7% Technical equipment Losses Others Heating Technical equipment Compressors Others © GIZ Ukraine 2020, outline dairy plants processes with steam. The average consumption share of the production equipment is at 77.8 % while heat losses stand at 15 %, other consumers that couldn’t be separated take 3.8 %, and the heating accounts for 3.4 % energy.
  • 15. 15 Purchase price of electricity Purchase price of natural gas Purchase price of wood and coal 44.6% (7.0 million UAH) 46.8% (7.3 million UAH) 8.6% (1.3 million UAH) Howmuchmoneyisspenton energyconsumedbydairyplants? Energy costs depend upon the amount of energy consumed, whilst the prevailing energy price scale and fixed costs for the supply installation are subject to fluctuations over time. Typical purchasing prices on electricity and natural gas per consumedMWhfortheyears2016to2019 are highlighted in table one. While for electricity the average price per MWh had increased from 2100 UAH in 2016 steadily to 2460 UAH in 2019, the Figure 6, Purchasing costs of electricity, natural gas, wood, and coal for a dairy plant in 2018. price for natural gas dropped in 2018 from 1220 UAH to 690 UAH in 2019. Figure six shows the total and the share between costs spent on natural gas, wood, coal, and electricity by a typical dairy plant in 2018. That year 7.3 million UAH (46.8% energy costs) were spent on natural gas, 7 million UAH (44.6% energy costs)wereusedtopayforelectricityand 1.3 million UAH (8.6% energy costs) were paid for wood and coal. Table 1, Costs of energy from 2016 to 2019 in UAH/MWh * The price of natural gas has been reduced due to amendments by the Cabinet of Ministers of Ukraine # 293. © GIZ Ukraine 2020, outline dairy plants Electricity Year Natural gas 2100 2016 690 2180 2017 1030 2460 2018 1220 2460 2019 690* Wood and coal 750 800 896 893
  • 16. 16 What are energy-efficiency measures and where is the largest savings potential? Energy Efficiency Measures (EEMs) are energy-using appliance, equip- ment, control system, or practice whose implementation results in reduced energy use while main- taining a comparable or higher level of service. EEMs decrease the amount of energy needed to pro- vide the same level of comfort or utility (e.g. a heating or cooling system that provides the same comfort with less fuel or electricity; a boiler of comparable size and features that uses less gas). To manage the diversity of potential EEMs, we classified them into the following subgroups of consumers: 1 Heat generation and distribution 2 Compressed air 3 Electrical devices 4 Ventilation and air-conditioning 5 Lighting 7 Production processes © GIZ Ukraine 2020, outline dairy plants Refrigerating systems 6
  • 17. 17 651 16 264 28 333 527 Heat generation and distribution Compressed air Electrical devices Ventilation and air-conditioning Lighting Production processes What are the potential annual energy savings? Figure 7, Respective energy saving areas in the dairy sector The next figure shows potential yearly costs saving in MWh grouped per consumer types and averaged for the 13 assessed plants. The group of most relevant consumers in terms of their energy-saving poten- tial comprises, first of all, compressed air systems (651 MWh/year) followed by production processes (527), boiler plants and heat distribution networks (428), refrigerating systems (333), heat- ing and ventilation (264), and lighting (28). Electric motors rank the last (16). 428 © GIZ Ukraine 2020, outline dairy plants Refrigerating systems
  • 18. 18 What are the relevant cost-saving areas in dairy industries? The next figure shows the potential yearly costs savings achieved when implementing EEMs. Due to energy costs being directly related to energy consumption and places in which the most energy losses are sustained, the ranking is led by production processes Figure 8, Relevant areas of energy cost savings in dairy industry. (1,329 UAH/year) followed by boiler plants and the heat distribution (516), and compressed air system (486). Refrigerating systems (321), ventilation and air-conditioning (299), and lighting (52) come next with electric motors taking the last place (46). © GIZ Ukraine 2020, outline dairy plants 486 46 299 52 321 1329 Heat generation and distribution Compressed air Electrical devices Ventilation and air-conditioning Lighting Production processes 516 Refrigerating systems
  • 19. 19 What are the investment opportunities for implementing proposed energy-saving measures? Figure9presentsthepotentialinvestment opportunities for EEMs within the energy audit for each consumer subgroup. The consumer group comprising boiler plants and heat distribution leads by the figure of total required investments (3,329 UAH); it is followed by production processes (1,851), refrigeration systems (1,144) ventilation and air conditioning (615), compressed air (382), lighting (91), and electric motors (50). Figure 9, What are investment opportunities of implementing proposed energy-saving measures? © GIZ Ukraine 2020, outline dairy plants 382 50 615 91 1144 1851 Heat generation and distribution Compressed air Electrical devices Ventilation and air-conditioning Lighting Production processes 3329 Refrigerating systems
  • 20. Human-induced warming reached approximately 1°C (likely between 0.8°C and 1.2°C) above pre-indus- trial levels in 2017, increasing at 0.2°C (likely between 0.1°C and 0.3°C) per decade (high confi- dence).1 Global warming has brought about possibly irreversible alterations to Earth's geologi- cal, biological and ecological systems. These changes have led to the emergence of large- scale environmental hazards to human health, such as extreme weather, ozone deple- tion, increased danger of wild- land fires, loss of biodiversity, stresses to food-producing systems, and the global spread of infectious diseases. In addi- tion, climatic changes are estimated to cause over 150,000 deaths annually.2 20 How can your industry contribute to mitigating climate change? The implementation of energy effi- ciency measures will strengthen your competitiveness as it reduces your operational costs. In the same breath, it addresses another, all overlaying and pressing challenge: Climate change. The rise in global average tem- perature is attributed to an increase in greenhouse gas emissions. There is a link between global temperatures, greenhouse gas concentrations – especially CO2 – and its emission due to the use of fossil energy sources in industries. 1) Global Warming of 1.5 ºC, IPCC, March 2020, https://www.ipcc.ch/sr15/ 2) Effects of global warming on humans, Wikipedia, March 2020, https://en.wikipedia.org/wiki/Effects_of_global_w arming_on_humans © GIZ Ukraine 2020, outline dairy plants
  • 21. 21 How can your industry contribute to mitigating climate change? Figure 10, Emission reductions of tCO2 eq/year, implementing energy saving-measures recommended in the energy audit report Figure 10 shows the potential tCO2 eq reduction, if the proposed energy saving measures are implemented in a typical industrial dairy plant. The most significant CO2 eq emission reduction potential have EEM to be implemented in the refrigerating systems group (304 tCO2 eq/year), compressed air (137), production processes (129), boiler plant and heat distribution (104), ventilation and air conditioning (36), lighting (25), and electric motors (15). © GIZ Ukraine 2020, outline dairy plants 137 15 36 25 304 129 Heat generation and distribution Compressed air Electrical devices Ventilation and air-conditioning Lighting Production processes 104 Refrigerating systems
  • 22. Relevant energy efficiency measures Every industrial dairy plant is unique and requires tailored approaches to improve its energy efficiency. Never- theless, the assessment of the 13 dairy plants revealed clear patterns in regard to promising improvements. The most relevant energy-saving measures in terms of investment opportunities, energy savings, costs savings, payback period, and savings of tCO2 eq are presented in Table 2. 22 © GIZ Ukraine 2020, outline dairy plants
  • 23. 23 © GIZ Ukraine 2020, outline dairy plants Table 2 Сapital expenditures thousand UAH Thermal insulation of boilers and heat transport lines Dry return to the boiler plant Utilisation of heat energy from NH3 compressors Installation of frequency control devices on electric motors Modernization of the lighting system Insulation of ice water pipelines Installation of waste heat exchangers on freon condenser units Artificial fog use on freon condenser units Savings thousand UAH Energy savings MWh average Simple payback period years Savings tCO2 eq* 156 158 199 1.5 43 1,492 529 462 3.4 95 273 701 967 0.9 195 50 46 16 1.8 15 88 37 26 1.5 24 202 11 26 4.2 24 3,954 1,219 1,036 2.9 258 387 18 44 4.2 40 Typical EEMs in dairy industry * Emission factor per 1 MWh of electricity - 0.912 tCO2 eq; per 1 MWh of natural gas - 0.202 tCO2 eq; per 1 MWh of coal- 0.354 tCO2 eq. https://publications.jrc.ec.europa.eu/repository/bitstream/JRC90405/part%20ii%20ru%20new%20pubsy%20.pdf
  • 24. Table 3, Energy efficiency measures developed in the framework of energy audits, stratified by payback period 24 As Table 3 demonstrates, a large proportion of proposed investment opportunities have a short payback period. of the energy savings can be reached by implementing energy-saving measures with a simple cost recovery period below 2 years 45% < 2 years 2 to 5 years > 5 years Number of EEMs Simple Payback period Energy Savings MWh/year Share Energy savings Emission reduction tCO2 eq 3-4 1,021 45% 247 2-3 779 35% 268 1-2 446 20% 101 © GIZ Ukraine 2020, outline dairy plants
  • 25. In typical dairy production, the imple- mentation of up to two energy-saving measures, with each investment costs of below 60,000 UAH would contribute to 0.09% total potential energy savings. Three measures with investment cost from 60,000 UAH to 300,000 UAH each would bring a potential saving of 16.64%, and three measures with investment above 300,000 UAH each could save 83.37% of the total energy consumed. Table 4, Energy-saving measures developed in the context of cost-based energy audits 25 EEM with investment cost <60,000 UAH EEM with investment cost from 60,000 – 300,000 UAH EEM with investment cost >300,000 UAH Number of EEMs Energy Savings MWh/year Share Energy savings Emission reduction tCO2 eq EEM 1-2 22 0.99% 14 Electricity 1-2 14 0.60% 12 Natural Gas 0-1 6 0.27% 1 wood, coal 0-1 3 0.11% 1 EEM 2-3 351 15.64% 94 Electricity 1-2 36 1.61% 25 Natural Gas 0-1 287 12.79% 58 wood, coal 0-1 28 1.25% 11 EEM 2-3 1,873 83.37% 507 Electricity 1 257 11.43% 138 Natural Gas 1-2 1,362 64.64% 275 wood, coal 0-1 254 11.31% 94 © GIZ Ukraine 2020, outline dairy plants
  • 26. Or in other words, what measures have the greatest impact leading to the highest reduction of greenhouse gas emissions in relation to the specific investment? Heat utilization with ammonia com- pressors leads the bulk chart (716 g CO2 eq/year and UAH invested); it is followed by frequency regulation of electric drives (292), thermal insulation of boilers and heating pipes (277), dry return to the boiler room, and lighting modernization (272 each), insulation of ice water pipes (118), artificial fog for freon condenser units (103), and heat recovery units in production processes (65). What is the CO2 eq reduction/investment ratio through the implementation of EEMs? 26 Figure 11, reduction emission grams of CO2 eq/year and invested UAH Thermal insulation of boilers and pipes Restore dry return to the boiler room Utilization of thermal energy of ammonia compressors Frequency regulation in electric motors Modernization of the lighting system Insulation of the ice water pipelines Installing the heat recuperator on the dryer 277 272 716 292 272 118 The use of artificial fog formation on condensation freon blocks 103 65 © GIZ Ukraine 2020, outline dairy plants
  • 27. Energy consumption, potential savings The figure above shows the proportions among energy consumption, and the potential savings if the proposed energy-saving measures were implemented. For better detail, the diagram has been split depending on energy consumption per plant from 2.26 to 8.65 GWh/year andfrom17.3to49.5GWh/year. 27 Energy consumption GWh/year Energy savings GWh/year Figure 12, What are typical consumptions, potential savings, and savings through the implementation of suggested measures? © GIZ Ukraine 2020, outline dairy plants Thetotalenergyconsumption(16.8GWh/yearonaverage). Lower values indicate the total saving potential (4.45 GWh/year on average); one figure further down indicates the energy saving volume achievable by implementing the saving measures suggested in energy audits (2.13 GWh/yearonaverage). 1 2 3 4 5 6 0 10 20 30 40 50 33.1 8.3 6.2 49.5 12.4 6.9 25.6 5.1 1.2 17.3 4.3 3.3 26.0 9.1 4.8 29.4 7.4 0.1 1 2 3 4 5 6 7 0 2 4 6 8 10 5.92 1.5 0.6 4.85 2.6 0.8 4.77 1.2 1.1 2.73 0.8 0.6 2.26 0.7 0.2 8.65 1.3 0.6 7.81 3.3 1.4 Saving through the implementation of suggested measures GWh/year
  • 28. Examples of EnPIs are energy consumption per time, energy con- sumption per unit of production, and multi-variable models. The given values are to be understood as a rough reference, not directly comparable due to the different product range, product mix, and pro- duction processes of each industry. But they can serve as stimulation for managers in companies to develop their own specific set of EnPIs. How much energy is stored in dairy products we buy? 28 To address this question, we will have to introduce a few terms that might be new to you. According to the ISO 50001 standard, “energy performance is the measur- able result related to energy efficien- cy, energy use, and energy consump- tion.” The energy management sys- tem performance can be measured using Key Performance Indicators (EnPIs). “Energy performance indica- tor is a quantitative value or measure of energy performance, as defined by theorganization.”Itisimportanttoset appropriate EnPIs for monitoring and measuring the energy performance because they show how well the system is functioning. © GIZ Ukraine 2020, outline dairy plants
  • 29. 1,17 How much energy is stored in dairy products we buy? The next chart indicates the energy consumption per kg of dairy product (mix). Figure 13, Energy consumption in kWh per production of 1 kg of fermented dairy products in 2018 29 1 2 3 4 5 6 7 8 9 10 11 12 13 Specific energy consumption per production unit at 13 assessed enterprises in 2018 ranged from 0.13 to 3.29 kWh/kg; the average value is 1.17 kWh/kg. 1.00 2.00 3.00 4.00 0 2,41 0,29 0,56 1,01 0,27 3,29 0,40 0,68 3,13 0,13 0,40 2,47 0,22 © GIZ Ukraine 2020, outline dairy plants
  • 30. Take away messages 30 The total annual energy con- sumption of the 13 assessed dairy plants in 2018 ranged from 2.3 to 49.5 GWh with the average value of 16.8 GWh. The dairy industry is highly dependent on natu- ral gas as its energy source, which makes for 57.8% of total consumption with electricity being twice as less at 31.4%. Wood and coal account for 10.8%. Respectively, relevant users of electricity are production equipment (29.3%), compressors (34.8%), and other (35.9%). While the average price for electricity steadily increased from 2100 UAH per MWh in 2016 to 2460 UAH per MWh in 2019, the price for natural gas dropped from1220UAHin2018to690UAHin2019. In 2018 a typical dairy plant 3.7 million UAH (48% of the energy costs) on natural gas, 7 million UAH (44.6%) on electricity, and 1.3 million UAH(8.6%) on wood and coal. Relevant consumer groups from the standpoint of potential savings are compressed air (651 MWh/year) followed by production processes (527), boiler plants and heat distribu- tion (428), refrigeration systems (333), ventilation and heating (264), and light- ing (28). The electric motors occupy the last place (16). 80% of the energy consumption can be asso- ciated with the production processes. The heating systems and hot water supplytakeabout3%(mostly from wood and coal) with the remaining 17% deemed losses. Themainconsumergroup of natural gas, wood and coal is the production equip- ment that consumes 77.8% of energy. Heat losses stand at 15% while other consumers use 3.8%, and 3.4% is spent on on heating. 29 23 19 12 15 1 1 29,3 34,8 35,9 % 10,8% 57,8% 31,4% 80% 17% 3% © GIZ Ukraine 2020, outline dairy plants 77,8% 48% 44,6% 8,6% %
  • 31. 31 Potential yearly costs savings achievable with the implementation of EEMs suggested in the energy audits are production processes – 1,329 (UAH/- year); boiler plants and heat distribution system (516); compressed air systems (486). Further down are refrigeration systems (312), ventilation and air-condi- tioning (299), lighting (52), and electric motors (46) in the last place. The biggest emission reduction potential (in tCO2 eq) can be unleashed with EEMs implemented in the group of refrigeration systems (304 tCO2 eq/year), compressed air production (137), production processes (129), boiler plant and heat distribution systems (104), then ventilation and air-conditioning (36), lighting (25) and electrical motors (15). 45% of energy savings can be reached by implementing energy-sav- ing measures with a payback period of less than 2 years. In 2018, the specific energy consump- tion per unit of fermented milk products at 13 assessed dairy plants ranged from 0.13 to 3.29 kWh/kg with an average value of 1.17kWh/kg. In typical dairy production, the imple- mentation of two energy saving mea- sures with the investment cost of less than 60,000 UAH each would contrib- ute to 0.99% of the total possible energy savings. Three measures with the investment cost from 60,000 UAH to 300,000 UAH each would give a potential saving of 16.64%, and three measures with the investment cost of more than 300,000 UAH each would save 83.37% of the energy consumed. Prospective energy efficiency mea- suresinclude: heat recovery from ammo- nia compressors (repayment period of 0.9 years), insulation of boiler plants and heat transport lines (1.5), lighting modernization (1.5), and installation of frequency-based controls on electric motors (1.8). The heat distribution group leads in the amount of required invest- ments with 3,329 UAH; it is followed by production processes (1,851), refrigeration systems (1,114), air conditioning and ventilation (615), compressed air production (382), lighting (91) and electrical motors (50). © GIZ Ukraine 2020, outline dairy plants 44 17 16 11 10 2 2 % 45 25 15 8 5 1 1 % 41 18 17 14 5 3 2 % 83,37% 16,64% 0,99%
  • 32. 14 Space heating control improvements – office wet systems temperature compensation and boiler optimization; process area convector heater advanced controls for convection heaters in the production areas A small selection of energy-saving actions 1 Turn-off campaigns for conveyors. (optimization of conveyors operation) 2 Compressed air management practices 3 Installation of more efficient frequency- regulated air compressor plant 4 Surveying of compressed air systems to identify and eliminate leaks 5 Using artificial fogging machines 6 Heat utilization from cooling towers 7 Using the cooling potential of the whey after the nano-filtering process 8 Replacing freon-based compressors with NH3 ones 9 High-efficiency lighting applications – the installation of T5 fluorescent high-frequency (or LED) systems in production areas 10 Occupancy control of lights in lower use areas such as, offices, meeting rooms, stores and plant rooms 11 Energy performance monitoring and targeting programs 12 Improved insulation of cold-water pipes and tanks. 13 Reducing the amount of ambient air entering dispatch areas – by installing seals and air curtains 14 15 Using variable speed drives (VSDs) in enterprise ventilation systems 16 Improved insulation of steam distribution lines 17 Energy-saving and energy efficiency awareness-raising campaigns for the staff and other stakeholders