The document discusses renewable energy technologies in Scottish whisky distilleries. It outlines the scale of waste produced by the industry and alternative technologies used such as anaerobic digestion (AD). Several distilleries have implemented AD with mixed results, as the technology faces challenges with odor, corrosion and ammonia. The document also examines the financial considerations around AD projects, noting variable factors like energy prices and subsidies that impact returns. It predicts AD will see increased adoption in the industry as the technology progresses towards more automated and scaled-down solutions.

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Renewables in DistilleriesRenewables in Distilleries
Alan G WolstenholmeAlan G Wolstenholme
Caledonian Solution Ltd.Caledonian Solution Ltd.
2121stst
May 2013May 2013

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AgendaAgenda
 Expectations in the Whisky IndustryExpectations in the Whisky Industry
 Technologies and experienceTechnologies and experience
 Financing an AD project (ROI)Financing an AD project (ROI)
 Expectations for the futureExpectations for the future

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Expectations in the WhiskyExpectations in the Whisky
IndustryIndustry
 Scale of issueScale of issue
 Feedstock(s)Feedstock(s)
 Alternative technologiesAlternative technologies
 Efficiency and cost reductionEfficiency and cost reduction

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Scotch Whisky IndustryScotch Whisky Industry
Structure 2013Structure 2013
 7 Grain Distilleries - 300mlpa7 Grain Distilleries - 300mlpa
 100+ Malt distilleries – 200mlpa100+ Malt distilleries – 200mlpa
 2 Dominant players2 Dominant players
 2 Major players2 Major players
 About 8 multi distillery playersAbout 8 multi distillery players
 About 20 single distillery ownersAbout 20 single distillery owners

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Products of Whisky IndustryProducts of Whisky Industry
 500mlpa500mlpa
 1,250,000 tonnes Draff1,250,000 tonnes Draff
 4 billion litres of Pot Ale4 billion litres of Pot Ale
 2 billion litres of Spent Lees etc.2 billion litres of Spent Lees etc.

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Alternative TechnologiesAlternative Technologies
 Land/LSO consented PA disposal + DraffLand/LSO consented PA disposal + Draff
 Evaporation/drying to DDG/PASEvaporation/drying to DDG/PAS
 (Both above may involve transport)(Both above may involve transport)
 Ability of local markets to cope withAbility of local markets to cope with
tonnagetonnage
 Combustion : Roseisle,C’Bridge & CORDeCombustion : Roseisle,C’Bridge & CORDe

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Technologies and ExperienceTechnologies and Experience
 (Highland Park and Tamnavulin)(Highland Park and Tamnavulin)
 Girvan, North British and CameronbridgeGirvan, North British and Cameronbridge
 Roseisle, Glen Ord and DaluaineRoseisle, Glen Ord and Daluaine
 BruichladdichBruichladdich
 (Starlaw and CORDe)(Starlaw and CORDe)

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Technologies/Experience (AD)Technologies/Experience (AD)
 3 Grain Distilleries (Top 4 Companies)3 Grain Distilleries (Top 4 Companies)
 3 Diageo Malt Distilleries3 Diageo Malt Distilleries
 Large and often contracted outLarge and often contracted out
 Part of an integrated solution.Part of an integrated solution.
 Aerobic etc. required downstreamAerobic etc. required downstream

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Technologies/Experience-Technologies/Experience-
IssuesIssues
 Residence time (liquid/solid)Residence time (liquid/solid)
 Hydrogen SulphideHydrogen Sulphide
 AmmoniaAmmonia
 NOx/SOxNOx/SOx
 OdourOdour
 Not for the amateur!Not for the amateur!

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Technologies/Experience-Technologies/Experience-
OpportunitiesOpportunities
 Gasfired boilerGasfired boiler
 ““Jenbacher”engine & generatorJenbacher”engine & generator
 Steam raising from exhaust gasesSteam raising from exhaust gases
 (Steam expander generation)(Steam expander generation)
 Warm water (if need exists)Warm water (if need exists)

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Financing an AD project (ROI)Financing an AD project (ROI)
 ROI may be relative/negativeROI may be relative/negative
 ““Least bad solution” for RTOLeast bad solution” for RTO
 Long term variables impossible to predictLong term variables impossible to predict
 Oil, gas, biofuel and electricity pricesOil, gas, biofuel and electricity prices
 Grain, Animal feedstuffs and transportGrain, Animal feedstuffs and transport
 Single company or combinationSingle company or combination

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Commercial FactorsCommercial Factors
 Energy YieldEnergy Yield
Capital ExpenditureCapital Expenditure
Cost/source of capitalCost/source of capital
Contract out (ESCO)Contract out (ESCO)
Running CostsRunning Costs
Value of Energy (ROCs & FITs)Value of Energy (ROCs & FITs)
ActivityActivity

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Expectations for the futureExpectations for the future
 Significant increase in the uptake of ADSignificant increase in the uptake of AD
 Progress in scaling downProgress in scaling down
 Automation – Fit and forget?Automation – Fit and forget?
 Linkage to other (bio) technologiesLinkage to other (bio) technologies

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ConclusionsConclusions
 AD can be part of well designed solutionsAD can be part of well designed solutions
 Requires experience and knowledgeRequires experience and knowledge
 Historic slow uptake in Whisky IndustryHistoric slow uptake in Whisky Industry
now past “Tipping point”now past “Tipping point”

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Alan WolstenholmeAlan Wolstenholme