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How much energy
goes into making
a loaf of bread?
Lessons learned from
13 energy audits
in Ukrainian industrial bakeries
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:
© GIZ 2020
2
© GIZ Ukraine 2020, outline bakeries
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: Natasha Blumer, Alina Rekrutiak, Hanna Bodnar, Kateryna Bystrytska, Anatolii Cherniavskiy
Design: Kateryna Yashyna
Image credits: the Gate agency
GIZ is responsible for the content of this publication.
3
Contents
What is this handout 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 baking industry
What subsections of the production consume the most energy?
How much money is spent on energy in industrial bakeries?
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 needed to make a loaf of bread?
Take away messages
04
05
06
09
10
12
14
15
16
22
26
27
28
30
© GIZ Ukraine 2020, outline bakeries
4
What is this handout about?
Dear reader,
If you are familiar with bread produc-
tion, then you might know that it takes
about 750 grams of flour and 7 hours of
work to bake one loaf of bread. Howev-
er, do you know exactly how much
energy it takes to bake a loaf? How
much money is spent on energy to
produce this loaf, or rolls, or pastries?
Are you aware which production areas,
relevant energy-saving potentials are
waiting to be discovered, and how
cost-reducing energy saving measures
with rapid returns can protect the
environment and your wallet?
This short outline provides insight into
energy consumption, energy costs,
energy-saving potential, concrete ener-
gy-saving measures, and the green-
house gas impact of industrial bakeries
in Ukraine. It reports the results of a
series of energy audits provided by the
Deutsche Gesellschaft für International
Zusammenarbeit (GIZ) and demon-
strates 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, com-
pany owners, managers, and investors
in the Ukrainian bakery 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 com-
plex technical issues simplified.
© GIZ Ukraine 2020, outline bakeries
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 bakeries
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 imple-
What is the Advisory Services for Energy Efficiency
in Companies project?
mented 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 bakeries
7
The current outline is a byproduct of
these activities, taking advantage of
assessing 13 industrial bakeries, and
identifying their energy use patterns to
determine promising energy-saving
measures. The outline reveals typical
consumption profiles as a first ap-
proximation, which contributes to a
better understanding of energy effi-
ciency 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 effi-
ciency into practice.
© GIZ Ukraine 2020, outline bakeries
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 bakeries
9
According to state statistics, each year
the Ukrainian bakery industry de-
creased by 10% compared to the previ-
ous year. As a result, there is a nearly
threefold reduction in production
compared to 2000 (2.5 million tons
then, and about 850-860 thousand in
2019). Thus, the average annual con-
sumption of bread has decreased
from 50 to 26 kilograms per person.
This is caused by a decline in popula-
tion, diversification of production and
market players, a large number of
mini-bakeries, imports of frozen
bread, semi-finished products, a
change in the culture of nutrition, and
other factors.
Challenging economic environment and its impact on
energy efficiency
What has energy efficiency to do
with the decline in production?
Doesn’t less production equal a
reduction of energy use to the same
extent? Unfortunately, this equation
doesn’t always apply because
production facilities and supply
systems have been designed for an
assigned load. Working at half
capacity, relevant energy consum-
ers are not operating in their opti-
mal production mode and therefore
are not energy efficient. In the
following chapter concrete ener-
gy-saving measures are presented
that consider this factor, revealing
the significant potential to optimize
production costs.
© GIZ Ukraine 2020, outline bakeries
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 emis-
sions 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 con-
sumed between 1.7 and 17.4 GWh of
energy in 2018. The inclusion of both
large industries and smaller
Ukrainian bakeries in the auditing
process accounts for the striking
difference between the smallest
and largest value.
Most of the industries rank in the
middle, somewhere from 1.7 to 7.6
GWh/year. The only exceptions beyond
this are three enterprises that consu-
med 11.7, 13.5, and 17.4 GWh/year. This is
due to the fact that they are large
enterprises that consistently produce
significant volumes of bread and
pastries over the year. On average,
these industries consumed 6.3 GWh/-
year.
© GIZ Ukraine 2020, outline bakeries
11
Figure 1, Electricity and gas consumption 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
13,2
4,3
2,8
0,5
2,7
0,3
4,4
1,3
5,2
1,8
10,5
1,2
0,9
0,8
0,9
0,8
2,2
0,1
12,6
1,2
1,6
0,1
6,4
1,3 4,7
0,4
5,2
1,1
As seen in figure one, each bar stands for an individual bakery's production, revealing its specific annual consumption of electricity (blue) and natural gas (red)
in GWh in 2018. The total energy consumption (black) and carbon dioxide emission in thousands of tons of carbon dioxide is highlighted in green.
17,4 3,3 2,9 5,7 7,0 11,7 1,7 1,8 2,2 13,8 1,7 7,6 5,1 6,3
6,6 1,0 0,8 2,5 2,7 3,2 0,9 1,0 0,5 3,6 0,4 2,5 1,3 2,1
What sources of energy are used and in which quantity?
© GIZ Ukraine 2020, outline bakeries
12
Electricity consumption
Natural gas consumption
The next pie chart reveals the share of
the main energy sources - electricity
and natural gas in 2018.
Figure two shows that the bakery indus-
try is highly dependent on natural gas
(84%), in comparison to electricity (16%).
This is due to the extensive use of gas in
the production processes. For example,
baking bread uses tunnel ovens that
consume a lot of natural gas. Other
Figure 2. Shares of electricity and
natural gas in 2018
16%
84%
Energy use in the baking industry
consumers of natural gas are steam
production, area heating, and crate
washers. Whereas cooling process,
air-conditioning, dough preparation,
lighting, and compressed air require the
highest amounts of energy in the
production.
© GIZ Ukraine 2020, outline bakeries
13
Energy use in the baking industry
Energy consumption for heating and hot
water supply (HWS)
Energy consumption in production
processes
Energy losses
Figure 3, Energy consumption in 2018
shares among production processes,
infrastructure, and losses
31%
64%
5%
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 equipment
design.
Chart three indicates how much
energy is consumed by a typical
bakery for production, heating, and hot
water and how much energy is lost.
As expected, 64% of the energy is
consumed within the production
processes. The heating systems and
hot water supply use about 31%, mainly
natural gas, and the remaining portion
of 5% are considered as losses.
© GIZ Ukraine 2020, outline bakeries
0
50%
100%
14
On average, the production ovens
consume 26.5%, dough preparation
25.3%, hot water supply 11.2%, the venti-
lation system 11.5%, electric devices
20.5%, and others 5.0% of electricity, as
indicated in figure 4. Maximal and
minimal values are found as numeric
values, too.
Figure 5. shows the two main consum-
er groups of natural gas. On average,
the production furnaces consume 42.4
%, steam boilers 44.6% and others 13%
of the natural gas. Maximal and
Minimal values are found as numeric
values, too.
Furnaces are shown in both charts, as
some use electricity, other - natural
gas.
Whatsubsectionsoftheproductionconsumethemostenergy?
Figure 4. What are the
relevant users of
electricity?
Production
furnaces
Dough
preparation
Hot water
supply
Ventilation Electrical
devices
Others
Figure 5. What are the
relevant users of
natural gas?
Total consumption of electricity
/natural gas (Average)
Minimum values Maximum values
0
20%
40%
60% 63%
26.5%
10.6%
97.8%
42.4%
20.3%
58.6%
44.6%
30.1%
16%
13%
10%
61%
25.3%
16.8%
23.7%
11.2%
10.1%
Tunnel
furnaces
Steam
boilers
Others
24.8%
11.5%
10.6%
27.2%
20.5%
20% 10%
5%
3%
© GIZ Ukraine 2020, outline bakeries
15
Purchase price of electricity,
%/million UAH
Purchase price of natural gas,
%/million UAH
27.6%
(1.95 million UAH)
72.4%
(5.12 million UAH)
Howmuchmoney isspentonenergyinindustrialbakeries?
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 consumed MWh
for the years 2016 to 2019 are
highlighted in table one.
While for electricity the average price
per MWh had increased from 2100 UAH
Figure 6, Purchase costs for
electricity and natural gas in 2018 in
the bakery industry
in 2016 steadily to 2460 UAH in 2019, the
price for natural gas dropped in 2018
from 1220 UAH to 690 UAH in 2019.
Figure 6. shows the total and the share
between costs spent on natural gas
and electricity for a typical bakery
facility in 2018. In 2018, 5.12 million UAH
(72.4% of the energy costs) were spent
on natural gas and 1.95 million UAH
(27.6% of the energy costs) on
electricity.
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.
Electricity Year Natural gas
2 100 2016 690
2180 2017 1030
2460 2018 1220
2460 2019 690*
© GIZ Ukraine 2020, outline bakeries
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
6 Production
processes
© GIZ Ukraine 2020, outline bakeries
17
51
42
33
6
139
Heat generation and distribution
Compressed air
Electrical devices
Ventilation and air-conditioning*
Lighting
Production processes
What are the potential annual energy savings?
* Includes thermal curtains
Figure 7, What are relevant areas of energy savings in industrial bakeries?
The following figure shows potential
annual energy savings in MWh ar-
ranged in different groups of con-
sumers as an average of the 13
assessed industrial bakeries.
The most relevant consumer groups in
regard to potential savings are led by a
large margin with 308 (MWh/year) of
heat generation and distribution,
followed by production processes
(139), compressed air (51), electric
devices (42), ventilation and air-condi-
tioning (33); lighting (6) takes the last
place.
308
© GIZ Ukraine 2020, outline bakeries
18
What are the relevant areas of cost
savings in industrial bakeries?
The next chart indicates potential
yearly cost savings, achieved when
implementing EEMs. Due to the fact
that energy costs are directly related
to energy consumption, the ranking is
led again by heat generation and dis-
* Includes thermal curtains
Figure 8, What are the relevant areas
of energy cost savings in industrial
bakeries?
tribution (354 T UAH/year) followed by
improvements in the production pro-
cesses (207). Next compressed air
(123), electrical devices (112), ventila-
tion, and air-conditioning (47), and
again lighting takes the last place (18).
Heat generation and distribution
Compressed air
Electrical devices
Ventilation and air-conditioning*
Lighting
Production processes
123
112
47
18
207
354
© GIZ Ukraine 2020, outline bakeries
19
What are the investment opportunities
for implementing proposed energy
saving measures?
Figure 9. presents the potential
investment opportunities for EEMs
within the energy audit for each
consumer subgroup.
Heat generation and distribution lead
the chart when it comes to required
investment total with an average of
693 T UAH, followed by production
processes (352), electrical devices
(302) ventilation and air-conditioning
(282), compressed air (170), and
lighting (15).
* Includes thermal curtains
Figure 9, What are the investment opportunities for implementing proposed
energy saving measures?
Heat generation and distribution
Compressed air
Electrical devices
Ventilation and air-conditioning*
Lighting
Production processes
693
170
302
282
15
352
© GIZ Ukraine 2020, outline bakeries
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, climate 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
efficiency measures will strengthen
your competitiveness as it reduces
your operational costs. In the same
breath, it addresses another, all over-
laying 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 bakeries
21
How can your industry contribute to mitigating climate change?
* Includes thermal curtains
Figure 10, Emission reductions of tCO2
eq/year, implementing energy saving-measures
recommended in the energy audit report
Figure ten shows the potential tCO2
eq
reduction if the proposed energy-saving
measures were implemented in a typical
industrial bakery.
Heat generation and distribution
Compressed air
Electrical devices
Ventilation and air-conditioning*
Lighting
Production processes
67
46
38
10
6
28
The most significant potentials to
reduce CO2
eq emission are realized
through the implementation of EEMs
in heat generation and distribution (67
tCO2
eq/year), followed by compressed
air (46), electrical drives (38), produc-
tion processes (28), ventilation and air
conditioning (10) and lighting (6).
© GIZ Ukraine 2020, outline bakeries
Relevant energy efficiency measures
Every industrial bakery is unique and
requires its tailored approaches to
improve energy efficiency. Neverthe-
less, the assessment of the 13 bakeries
revealed clear patterns in regard to
promising improvements. The most
relevant energy-saving measures with
an investment opportunity, energy
savings, costs savings, cost recovery
period, and savings of tCO2
eq, are
depicted in table two.
22
© GIZ Ukraine 2020, outline bakeries
23
© GIZ Ukraine 2020, outline bakeries
Table 2
Сapital
expenditures
thousand UAH
Boiler burner
adjustment
Compressor
Replacement
Installation of frequency
control devices
Installation of thermal
curtains
Modernization of the
lighting system
Organization of
mechanical ventilation
Performing of oven
tuning
Restoration of oven
thermal insulation
Savings
thousand UAH
Energy savings
MWh average
Simple payback
period years
Savings
tCO2
eq*
53 171 121 1.7 25
170 123 51 1.4 46
302 112 42 3.6 38
226 67 49 7.5 10
76 151 63 0.5 58
388 38 24 10.1 4.9
79 260 224 0.7 45
28 25 92 0.5 19
Typical EEMs in industrial bakeries
* Emission factor per 1 MWh of electricity - 0.912 tCO2
eq; per 1 MWh of natural gas - 0.202 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 cost payback period
24
A large proportion of proposed
investment opportunities have a short
cost recovery period.
of the energy savings can be
reached by implementing
energy-saving measures with
a simple cost recovery period
below 2 years
79%
< 2 years
2 to 5 years
> 5 years
Number of EEMs
Simple Payback
period
Energy Savings
MWh/year
Share of Energy
savings
Emission reduction
tCO2
eq
2-3 517 79% 124
1-2 75 11% 21
1-2 67 10% 17
© GIZ Ukraine 2020, outline bakeries
In a typical bakery production, the
implementation of up to two energy
saving-measures, with each invest-
ment costing less than 60,000 - UAH
would contribute to 14% of the energy
savings.
Up to three measures with investment
costing from 60,000-300,000 UAH each
have a potential savings of 59% and up
to two measures with an investment
cost of more than 300,000 UAH each,
could save 27% of the 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 of
Energy
savings
Emission
reduction
tCO2
eq
EEM
Electricity
Natural Gas
1-2
1
1
93
0.42
93
14%
0.06%
14%
19
0,38
19
EEM
Electricity
Natural Gas
1-3
1
1-2
388
34
354
59%
5,2%
54%
103
31
72
EEM
Electricity
Natural Gas
1-2
0-1
1-2
177
23
154
27%
3.5%
23%
37
21
16
© GIZ Ukraine 2020, outline bakeries
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?
Furnace thermal insulation leads the
bulk chart (674 g CO2
eq/year and
invested UAH), followed by adjust-
ments of the furnace burner (576),
modernization in the lighting (390),
compressor replacement (271), fre-
quency control devices (126), boiler
burner adjustments and thermal
curtains (both 46).
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
Restoration of furnace thermal
insulation
Optimization of furnace
operation
Modernization
in the lighting
Installation of thermal
curtains
Frequency control
devices
Optimization of compressed air
system
Оptimization of boilers
operation
674
576
390
46
126
271
46
© GIZ Ukraine 2020, outline bakeries
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.
Thehighestelevationofthebulkindicatestheenergy
27
Typical consumption, GWh/year Saving through implementation of
suggested measures, GWh/year
Potential savings, GWh/year
Figure 12, What are typical consumptions,
potential savings, and savings through the
implementation of suggested measures?
© GIZ Ukraine 2020, outline bakeries
1 2 3 4 5 6 7 8 9 10 11 12 13 Average
consumption (average 6.3 GWh/year), the value
below shows potential savings in general (average
1.48 GWh/year), and below that the value indicates
energy savings specifically evaluated in the energy
monitoringaudits(average0.73GWh/year).
17.4
3,3 2,9
5,7
7,0
11,7
1,7 1,8 2,2
13,8
1,7
7,6
5,1
6,3
4.4
2.6
0.5
0.1
0.5
0.2
0.9
0.3
2.1
1.3
5.6
1.1
0.3
0.2 0.3
0.1 0.5
0.2
3.2
1.3
0.4
0.1
2.3
1.5 1.3
0.5
1.5
0.7
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 needed to make a loaf of bread?
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 bakeries
How much energy is needed to make a loaf of bread?
The next chart indicates the energy consumption per 1 kg of product (mix)
Figure 13, Energy consumption in
kWh per production of 1 kg of
product in 2018
29
1 2 3 4 5 6 7 8 9 10 11 12 13
The energy consumption regarding the product volume of the 13
assessed bakeries ranged from 2.31 to 0.42 kWh/kg in 2018; the average
value is 0.98 kWh/kg.
0,5
1
0.98
1,5
2
2,5
0
0.42 0.46
1.06
0.70
1.68
0.92
0.75
1.05
0.58
0.84
2.31
0.85
1.12
© GIZ Ukraine 2020, outline bakeries
Take away messages
30
The total annual energy
consumption of the 13 assessed
bakeries ranged from 1.7 to 17.4 GWh
in 2018; the average value is 6.3 GWh.
The bakery industry is
highly dependent on na-
tural gas as an energy
source, with 84% of ener-
gy coming from gas as
opposed to only 16%
coming from electricity.
Significantusersofelectricityare
production furnaces (27%), dough
preparation (25%), hot water supply
(11%), ventilation systems (12%), and
electric devices (21%).
While for electricity the average
price per MWh increased from 2100
UAH in 2016 steadily to 2460 UAH
in 2019, the price for natural gas
dropped from 1220 UAH in 2018 to
690 UAH in 2019.
A typical bakery facility spent
5.12 million UAH (72% of the energy
costs) on natural gas and 1.95
million UAH (28%) on electricity in
2018.
Relevant consumer groups for
potential savings are heat genera-
tion and distribution (308 MWh/-
year), followed by production
processes (139), compressed air
(51), electric devices (42), ventilation
and air-conditioning (33), and light-
ing (6) takes the last place.
64% of the energy
consumption can be as-
sociated with the pro-
duction processes. The
heating systems and hot
watersupplydevourabout
31%, mainly natural gas.
27 25 11 12 21
The main consumer
groups of natural gas are
productionfurnaces(42%)
and steamboilers(45%).
45% 42%
53 24 9 6
8 1
%
16%
84%
64%
31%
5%
28%
72%
%
© GIZ Ukraine 2020, outline bakeries
31
Potential yearly costs savings -
when implementing EEMs suggest-
ed in the energy audits - are in heat
generation and distribution (354 T
UAH/year), improvements in the
production processes (207), com-
pressed air (123), electrical devices
(112), ventilation and air conditioning
(47) and lighting (18).
Significant potentials to reduce
tCO2
eq emission can be achieved
through the implementation of
energy efficiency measures in heat
generation and distribution (67
tCO2
eq/year), compressed air (46),
electrical drives (38), production
processes (28), ventilation and
air-conditioning (10) and lighting (6).
79% of the energy savings
can be reached by imple-
menting energy-saving mea-
sures with a cost recovery
period of below 2 years.
The energy consumption
regarding the product volume
of the 13 assessed bakeries
ranged from 2.31 to 0.42
kWh/kg in 2018; the average
value is 0.98 kWh/kg.
In a typical bakery production,
the implementation of up to two
energy saving measures, with each
investment costing under 60,000 -
UAH would contribute to an
energy savings of 14%.
Up to three measures with invest-
ment costs from 60,000-300,000
UAH each have a potential savings
of 59% and up to two measures
with an investment cost of more
than 300,000 UAH each, could
save 27% of the energy consumed
Promising Energy saving mea-
sures are boiler burner adjustment
(costs recovered in 1.7 years), com-
pressor replacement (1.4), oven
tuning (0.7), and restoration of oven
thermal insulation (0.5).
41 24 14 13 5 2 34 24 19 14 5 3
59 27 14
38 19 17 16 9 1
79%
Heat generation and distribu-
tion lead in regard to required
investments total with an average
of 693 T UAH, followed by production
processes (352), electrical devices
(302) ventilation and air-condition-
ing (282), compressed air (170), and
lighting (15).
%
%
%
%
© GIZ Ukraine 2020, outline bakeries
A small selection of energy-saving actions
1 Turn-off campaigns for conveyors.
(optimization of conveyor operation).
2 Shutdown procedures for major
plants, e.g. provers, ovens, coolers.
3 Compressed air management
practices.
4 More efficient air compressor plant
including variable speed drive units.
5 Reduction of compressed air
leakage rate.
6 High-efficiency lighting
applications – the installation of
T5 fluorescent high-frequency
systems in production areas.
7 Occupancy control of lights in
lower use areas such as offices,
meeting rooms, storage and rooms
within the plant.
8 Monitoring and targeting
programs.
9 Improved insulation of major
processing plants such as ovens
and provers.
10 Reducing the amount of air
entering dispatch areas – by
improving and air curtains.
11 Space heating control improvements
– office wet systems temperature
compensation and boiler
optimization; process area convector
heater advanced controls.
12 Variable speed drives (VSDs) on
bakery ventilation systems.
13 Improved insulation of steam and
chilled water distribution systems.
14 Energy awareness campaigns.

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How much energy goes into making a loaf of bread?y_en

  • 1. How much energy goes into making a loaf of bread? Lessons learned from 13 energy audits in Ukrainian industrial bakeries
  • 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: © GIZ 2020 2 © GIZ Ukraine 2020, outline bakeries 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: Natasha Blumer, Alina Rekrutiak, Hanna Bodnar, Kateryna Bystrytska, Anatolii Cherniavskiy Design: Kateryna Yashyna Image credits: the Gate agency GIZ is responsible for the content of this publication.
  • 3. 3 Contents What is this handout 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 baking industry What subsections of the production consume the most energy? How much money is spent on energy in industrial bakeries? 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 needed to make a loaf of bread? Take away messages 04 05 06 09 10 12 14 15 16 22 26 27 28 30 © GIZ Ukraine 2020, outline bakeries
  • 4. 4 What is this handout about? Dear reader, If you are familiar with bread produc- tion, then you might know that it takes about 750 grams of flour and 7 hours of work to bake one loaf of bread. Howev- er, do you know exactly how much energy it takes to bake a loaf? How much money is spent on energy to produce this loaf, or rolls, or pastries? Are you aware which production areas, relevant energy-saving potentials are waiting to be discovered, and how cost-reducing energy saving measures with rapid returns can protect the environment and your wallet? This short outline provides insight into energy consumption, energy costs, energy-saving potential, concrete ener- gy-saving measures, and the green- house gas impact of industrial bakeries in Ukraine. It reports the results of a series of energy audits provided by the Deutsche Gesellschaft für International Zusammenarbeit (GIZ) and demon- strates 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, com- pany owners, managers, and investors in the Ukrainian bakery 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 com- plex technical issues simplified. © GIZ Ukraine 2020, outline bakeries
  • 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 bakeries
  • 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 imple- What is the Advisory Services for Energy Efficiency in Companies project? mented 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 bakeries
  • 7. 7 The current outline is a byproduct of these activities, taking advantage of assessing 13 industrial bakeries, and identifying their energy use patterns to determine promising energy-saving measures. The outline reveals typical consumption profiles as a first ap- proximation, which contributes to a better understanding of energy effi- ciency 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 effi- ciency into practice. © GIZ Ukraine 2020, outline bakeries
  • 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 bakeries
  • 9. 9 According to state statistics, each year the Ukrainian bakery industry de- creased by 10% compared to the previ- ous year. As a result, there is a nearly threefold reduction in production compared to 2000 (2.5 million tons then, and about 850-860 thousand in 2019). Thus, the average annual con- sumption of bread has decreased from 50 to 26 kilograms per person. This is caused by a decline in popula- tion, diversification of production and market players, a large number of mini-bakeries, imports of frozen bread, semi-finished products, a change in the culture of nutrition, and other factors. Challenging economic environment and its impact on energy efficiency What has energy efficiency to do with the decline in production? Doesn’t less production equal a reduction of energy use to the same extent? Unfortunately, this equation doesn’t always apply because production facilities and supply systems have been designed for an assigned load. Working at half capacity, relevant energy consum- ers are not operating in their opti- mal production mode and therefore are not energy efficient. In the following chapter concrete ener- gy-saving measures are presented that consider this factor, revealing the significant potential to optimize production costs. © GIZ Ukraine 2020, outline bakeries
  • 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 emis- sions 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 con- sumed between 1.7 and 17.4 GWh of energy in 2018. The inclusion of both large industries and smaller Ukrainian bakeries in the auditing process accounts for the striking difference between the smallest and largest value. Most of the industries rank in the middle, somewhere from 1.7 to 7.6 GWh/year. The only exceptions beyond this are three enterprises that consu- med 11.7, 13.5, and 17.4 GWh/year. This is due to the fact that they are large enterprises that consistently produce significant volumes of bread and pastries over the year. On average, these industries consumed 6.3 GWh/- year. © GIZ Ukraine 2020, outline bakeries
  • 11. 11 Figure 1, Electricity and gas consumption 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 13,2 4,3 2,8 0,5 2,7 0,3 4,4 1,3 5,2 1,8 10,5 1,2 0,9 0,8 0,9 0,8 2,2 0,1 12,6 1,2 1,6 0,1 6,4 1,3 4,7 0,4 5,2 1,1 As seen in figure one, each bar stands for an individual bakery's production, revealing its specific annual consumption of electricity (blue) and natural gas (red) in GWh in 2018. The total energy consumption (black) and carbon dioxide emission in thousands of tons of carbon dioxide is highlighted in green. 17,4 3,3 2,9 5,7 7,0 11,7 1,7 1,8 2,2 13,8 1,7 7,6 5,1 6,3 6,6 1,0 0,8 2,5 2,7 3,2 0,9 1,0 0,5 3,6 0,4 2,5 1,3 2,1 What sources of energy are used and in which quantity? © GIZ Ukraine 2020, outline bakeries
  • 12. 12 Electricity consumption Natural gas consumption The next pie chart reveals the share of the main energy sources - electricity and natural gas in 2018. Figure two shows that the bakery indus- try is highly dependent on natural gas (84%), in comparison to electricity (16%). This is due to the extensive use of gas in the production processes. For example, baking bread uses tunnel ovens that consume a lot of natural gas. Other Figure 2. Shares of electricity and natural gas in 2018 16% 84% Energy use in the baking industry consumers of natural gas are steam production, area heating, and crate washers. Whereas cooling process, air-conditioning, dough preparation, lighting, and compressed air require the highest amounts of energy in the production. © GIZ Ukraine 2020, outline bakeries
  • 13. 13 Energy use in the baking industry Energy consumption for heating and hot water supply (HWS) Energy consumption in production processes Energy losses Figure 3, Energy consumption in 2018 shares among production processes, infrastructure, and losses 31% 64% 5% 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 equipment design. Chart three indicates how much energy is consumed by a typical bakery for production, heating, and hot water and how much energy is lost. As expected, 64% of the energy is consumed within the production processes. The heating systems and hot water supply use about 31%, mainly natural gas, and the remaining portion of 5% are considered as losses. © GIZ Ukraine 2020, outline bakeries
  • 14. 0 50% 100% 14 On average, the production ovens consume 26.5%, dough preparation 25.3%, hot water supply 11.2%, the venti- lation system 11.5%, electric devices 20.5%, and others 5.0% of electricity, as indicated in figure 4. Maximal and minimal values are found as numeric values, too. Figure 5. shows the two main consum- er groups of natural gas. On average, the production furnaces consume 42.4 %, steam boilers 44.6% and others 13% of the natural gas. Maximal and Minimal values are found as numeric values, too. Furnaces are shown in both charts, as some use electricity, other - natural gas. Whatsubsectionsoftheproductionconsumethemostenergy? Figure 4. What are the relevant users of electricity? Production furnaces Dough preparation Hot water supply Ventilation Electrical devices Others Figure 5. What are the relevant users of natural gas? Total consumption of electricity /natural gas (Average) Minimum values Maximum values 0 20% 40% 60% 63% 26.5% 10.6% 97.8% 42.4% 20.3% 58.6% 44.6% 30.1% 16% 13% 10% 61% 25.3% 16.8% 23.7% 11.2% 10.1% Tunnel furnaces Steam boilers Others 24.8% 11.5% 10.6% 27.2% 20.5% 20% 10% 5% 3% © GIZ Ukraine 2020, outline bakeries
  • 15. 15 Purchase price of electricity, %/million UAH Purchase price of natural gas, %/million UAH 27.6% (1.95 million UAH) 72.4% (5.12 million UAH) Howmuchmoney isspentonenergyinindustrialbakeries? 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 consumed MWh for the years 2016 to 2019 are highlighted in table one. While for electricity the average price per MWh had increased from 2100 UAH Figure 6, Purchase costs for electricity and natural gas in 2018 in the bakery industry in 2016 steadily to 2460 UAH in 2019, the price for natural gas dropped in 2018 from 1220 UAH to 690 UAH in 2019. Figure 6. shows the total and the share between costs spent on natural gas and electricity for a typical bakery facility in 2018. In 2018, 5.12 million UAH (72.4% of the energy costs) were spent on natural gas and 1.95 million UAH (27.6% of the energy costs) on electricity. 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. Electricity Year Natural gas 2 100 2016 690 2180 2017 1030 2460 2018 1220 2460 2019 690* © GIZ Ukraine 2020, outline bakeries
  • 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 6 Production processes © GIZ Ukraine 2020, outline bakeries
  • 17. 17 51 42 33 6 139 Heat generation and distribution Compressed air Electrical devices Ventilation and air-conditioning* Lighting Production processes What are the potential annual energy savings? * Includes thermal curtains Figure 7, What are relevant areas of energy savings in industrial bakeries? The following figure shows potential annual energy savings in MWh ar- ranged in different groups of con- sumers as an average of the 13 assessed industrial bakeries. The most relevant consumer groups in regard to potential savings are led by a large margin with 308 (MWh/year) of heat generation and distribution, followed by production processes (139), compressed air (51), electric devices (42), ventilation and air-condi- tioning (33); lighting (6) takes the last place. 308 © GIZ Ukraine 2020, outline bakeries
  • 18. 18 What are the relevant areas of cost savings in industrial bakeries? The next chart indicates potential yearly cost savings, achieved when implementing EEMs. Due to the fact that energy costs are directly related to energy consumption, the ranking is led again by heat generation and dis- * Includes thermal curtains Figure 8, What are the relevant areas of energy cost savings in industrial bakeries? tribution (354 T UAH/year) followed by improvements in the production pro- cesses (207). Next compressed air (123), electrical devices (112), ventila- tion, and air-conditioning (47), and again lighting takes the last place (18). Heat generation and distribution Compressed air Electrical devices Ventilation and air-conditioning* Lighting Production processes 123 112 47 18 207 354 © GIZ Ukraine 2020, outline bakeries
  • 19. 19 What are the investment opportunities for implementing proposed energy saving measures? Figure 9. presents the potential investment opportunities for EEMs within the energy audit for each consumer subgroup. Heat generation and distribution lead the chart when it comes to required investment total with an average of 693 T UAH, followed by production processes (352), electrical devices (302) ventilation and air-conditioning (282), compressed air (170), and lighting (15). * Includes thermal curtains Figure 9, What are the investment opportunities for implementing proposed energy saving measures? Heat generation and distribution Compressed air Electrical devices Ventilation and air-conditioning* Lighting Production processes 693 170 302 282 15 352 © GIZ Ukraine 2020, outline bakeries
  • 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, climate 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 efficiency measures will strengthen your competitiveness as it reduces your operational costs. In the same breath, it addresses another, all over- laying 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 bakeries
  • 21. 21 How can your industry contribute to mitigating climate change? * Includes thermal curtains Figure 10, Emission reductions of tCO2 eq/year, implementing energy saving-measures recommended in the energy audit report Figure ten shows the potential tCO2 eq reduction if the proposed energy-saving measures were implemented in a typical industrial bakery. Heat generation and distribution Compressed air Electrical devices Ventilation and air-conditioning* Lighting Production processes 67 46 38 10 6 28 The most significant potentials to reduce CO2 eq emission are realized through the implementation of EEMs in heat generation and distribution (67 tCO2 eq/year), followed by compressed air (46), electrical drives (38), produc- tion processes (28), ventilation and air conditioning (10) and lighting (6). © GIZ Ukraine 2020, outline bakeries
  • 22. Relevant energy efficiency measures Every industrial bakery is unique and requires its tailored approaches to improve energy efficiency. Neverthe- less, the assessment of the 13 bakeries revealed clear patterns in regard to promising improvements. The most relevant energy-saving measures with an investment opportunity, energy savings, costs savings, cost recovery period, and savings of tCO2 eq, are depicted in table two. 22 © GIZ Ukraine 2020, outline bakeries
  • 23. 23 © GIZ Ukraine 2020, outline bakeries Table 2 Сapital expenditures thousand UAH Boiler burner adjustment Compressor Replacement Installation of frequency control devices Installation of thermal curtains Modernization of the lighting system Organization of mechanical ventilation Performing of oven tuning Restoration of oven thermal insulation Savings thousand UAH Energy savings MWh average Simple payback period years Savings tCO2 eq* 53 171 121 1.7 25 170 123 51 1.4 46 302 112 42 3.6 38 226 67 49 7.5 10 76 151 63 0.5 58 388 38 24 10.1 4.9 79 260 224 0.7 45 28 25 92 0.5 19 Typical EEMs in industrial bakeries * Emission factor per 1 MWh of electricity - 0.912 tCO2 eq; per 1 MWh of natural gas - 0.202 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 cost payback period 24 A large proportion of proposed investment opportunities have a short cost recovery period. of the energy savings can be reached by implementing energy-saving measures with a simple cost recovery period below 2 years 79% < 2 years 2 to 5 years > 5 years Number of EEMs Simple Payback period Energy Savings MWh/year Share of Energy savings Emission reduction tCO2 eq 2-3 517 79% 124 1-2 75 11% 21 1-2 67 10% 17 © GIZ Ukraine 2020, outline bakeries
  • 25. In a typical bakery production, the implementation of up to two energy saving-measures, with each invest- ment costing less than 60,000 - UAH would contribute to 14% of the energy savings. Up to three measures with investment costing from 60,000-300,000 UAH each have a potential savings of 59% and up to two measures with an investment cost of more than 300,000 UAH each, could save 27% of the 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 of Energy savings Emission reduction tCO2 eq EEM Electricity Natural Gas 1-2 1 1 93 0.42 93 14% 0.06% 14% 19 0,38 19 EEM Electricity Natural Gas 1-3 1 1-2 388 34 354 59% 5,2% 54% 103 31 72 EEM Electricity Natural Gas 1-2 0-1 1-2 177 23 154 27% 3.5% 23% 37 21 16 © GIZ Ukraine 2020, outline bakeries
  • 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? Furnace thermal insulation leads the bulk chart (674 g CO2 eq/year and invested UAH), followed by adjust- ments of the furnace burner (576), modernization in the lighting (390), compressor replacement (271), fre- quency control devices (126), boiler burner adjustments and thermal curtains (both 46). 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 Restoration of furnace thermal insulation Optimization of furnace operation Modernization in the lighting Installation of thermal curtains Frequency control devices Optimization of compressed air system Оptimization of boilers operation 674 576 390 46 126 271 46 © GIZ Ukraine 2020, outline bakeries
  • 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. Thehighestelevationofthebulkindicatestheenergy 27 Typical consumption, GWh/year Saving through implementation of suggested measures, GWh/year Potential savings, GWh/year Figure 12, What are typical consumptions, potential savings, and savings through the implementation of suggested measures? © GIZ Ukraine 2020, outline bakeries 1 2 3 4 5 6 7 8 9 10 11 12 13 Average consumption (average 6.3 GWh/year), the value below shows potential savings in general (average 1.48 GWh/year), and below that the value indicates energy savings specifically evaluated in the energy monitoringaudits(average0.73GWh/year). 17.4 3,3 2,9 5,7 7,0 11,7 1,7 1,8 2,2 13,8 1,7 7,6 5,1 6,3 4.4 2.6 0.5 0.1 0.5 0.2 0.9 0.3 2.1 1.3 5.6 1.1 0.3 0.2 0.3 0.1 0.5 0.2 3.2 1.3 0.4 0.1 2.3 1.5 1.3 0.5 1.5 0.7
  • 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 needed to make a loaf of bread? 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 bakeries
  • 29. How much energy is needed to make a loaf of bread? The next chart indicates the energy consumption per 1 kg of product (mix) Figure 13, Energy consumption in kWh per production of 1 kg of product in 2018 29 1 2 3 4 5 6 7 8 9 10 11 12 13 The energy consumption regarding the product volume of the 13 assessed bakeries ranged from 2.31 to 0.42 kWh/kg in 2018; the average value is 0.98 kWh/kg. 0,5 1 0.98 1,5 2 2,5 0 0.42 0.46 1.06 0.70 1.68 0.92 0.75 1.05 0.58 0.84 2.31 0.85 1.12 © GIZ Ukraine 2020, outline bakeries
  • 30. Take away messages 30 The total annual energy consumption of the 13 assessed bakeries ranged from 1.7 to 17.4 GWh in 2018; the average value is 6.3 GWh. The bakery industry is highly dependent on na- tural gas as an energy source, with 84% of ener- gy coming from gas as opposed to only 16% coming from electricity. Significantusersofelectricityare production furnaces (27%), dough preparation (25%), hot water supply (11%), ventilation systems (12%), and electric devices (21%). While for electricity the average price per MWh increased from 2100 UAH in 2016 steadily to 2460 UAH in 2019, the price for natural gas dropped from 1220 UAH in 2018 to 690 UAH in 2019. A typical bakery facility spent 5.12 million UAH (72% of the energy costs) on natural gas and 1.95 million UAH (28%) on electricity in 2018. Relevant consumer groups for potential savings are heat genera- tion and distribution (308 MWh/- year), followed by production processes (139), compressed air (51), electric devices (42), ventilation and air-conditioning (33), and light- ing (6) takes the last place. 64% of the energy consumption can be as- sociated with the pro- duction processes. The heating systems and hot watersupplydevourabout 31%, mainly natural gas. 27 25 11 12 21 The main consumer groups of natural gas are productionfurnaces(42%) and steamboilers(45%). 45% 42% 53 24 9 6 8 1 % 16% 84% 64% 31% 5% 28% 72% % © GIZ Ukraine 2020, outline bakeries
  • 31. 31 Potential yearly costs savings - when implementing EEMs suggest- ed in the energy audits - are in heat generation and distribution (354 T UAH/year), improvements in the production processes (207), com- pressed air (123), electrical devices (112), ventilation and air conditioning (47) and lighting (18). Significant potentials to reduce tCO2 eq emission can be achieved through the implementation of energy efficiency measures in heat generation and distribution (67 tCO2 eq/year), compressed air (46), electrical drives (38), production processes (28), ventilation and air-conditioning (10) and lighting (6). 79% of the energy savings can be reached by imple- menting energy-saving mea- sures with a cost recovery period of below 2 years. The energy consumption regarding the product volume of the 13 assessed bakeries ranged from 2.31 to 0.42 kWh/kg in 2018; the average value is 0.98 kWh/kg. In a typical bakery production, the implementation of up to two energy saving measures, with each investment costing under 60,000 - UAH would contribute to an energy savings of 14%. Up to three measures with invest- ment costs from 60,000-300,000 UAH each have a potential savings of 59% and up to two measures with an investment cost of more than 300,000 UAH each, could save 27% of the energy consumed Promising Energy saving mea- sures are boiler burner adjustment (costs recovered in 1.7 years), com- pressor replacement (1.4), oven tuning (0.7), and restoration of oven thermal insulation (0.5). 41 24 14 13 5 2 34 24 19 14 5 3 59 27 14 38 19 17 16 9 1 79% Heat generation and distribu- tion lead in regard to required investments total with an average of 693 T UAH, followed by production processes (352), electrical devices (302) ventilation and air-condition- ing (282), compressed air (170), and lighting (15). % % % % © GIZ Ukraine 2020, outline bakeries
  • 32. A small selection of energy-saving actions 1 Turn-off campaigns for conveyors. (optimization of conveyor operation). 2 Shutdown procedures for major plants, e.g. provers, ovens, coolers. 3 Compressed air management practices. 4 More efficient air compressor plant including variable speed drive units. 5 Reduction of compressed air leakage rate. 6 High-efficiency lighting applications – the installation of T5 fluorescent high-frequency systems in production areas. 7 Occupancy control of lights in lower use areas such as offices, meeting rooms, storage and rooms within the plant. 8 Monitoring and targeting programs. 9 Improved insulation of major processing plants such as ovens and provers. 10 Reducing the amount of air entering dispatch areas – by improving and air curtains. 11 Space heating control improvements – office wet systems temperature compensation and boiler optimization; process area convector heater advanced controls. 12 Variable speed drives (VSDs) on bakery ventilation systems. 13 Improved insulation of steam and chilled water distribution systems. 14 Energy awareness campaigns.