Sustaining Our Operation in a
Changing World
Michael Younis
October 16 2008
Business Case
¾Energy Consumption
9Cook
9Clean
9Refrigerate
¾Cost Escalation
92nd largest conversion cost
95.5% CAGR
¾Environmental Legislation
9“Inconvenient Truth”
9CA and NJ GHG programs
9Regional GHG Initiative
Business Case : Customer Focus
Customers – Millennial Generation
91% likely to switch to a brand associated with a good
cause
56% consider environmental impact a cause
Domestic
Climate Leaders
SmartWay Transport
California Climate Action Registry
Water Use
10% Energy Consumption Reduction
CO2 Advanced Purification System
Wastewater Land Application
Wind Power
Solar
Biomass
Baldwinsville Brewery
Capacity:
8.6mm bbls maximum capacity or the equivalent of 118 million
cases.
2008 budgeted volume is 7.2 million bbls or the equivalent of 100
million cases.
The brewery is operating near its effective capacity.
Employment:
Approximately 850 employees: The plant has never had a strike or
any permanent layoffs during 25 years in operation.
There 614 full time employees. The plant has additional employees
who work on weekends when the full time employees choose to not
work. We avoid any forced overtime work with this weekend staff.
Baldwinsville Brewery
Since it’s purchase in 1980 through the end of 2007,
Anheuser Busch has made over $1.1 billion in Capital
Investments at the Baldwinsville Brewery.
Since 2003, capital investments have averaged $34.4
million/year.
On average 75 to 80 building trade workers have been
employed in construction work at the facility during 2007.
The brewery and treatment plant are situated on 330 acres
of land in the Town of Lysander, Onondaga County.
The brewery and treatment plant have 1,600,000 sq. ft. of
buildings.
Renewable Energy Project
Cogeneration prohibited until January 1, 2012
Wood Fired Boiler
Fuel Study
Engineering and Economic Model
90% of Brewery Steam Demand
8 MW of electrical power
Renewable Energy Credits
Wood Supply Backhaul Opportunities
SUNY ESF - Willow
WWTP KWh/Month1995 to 2008
Fine Bubble Aeration – KWh Reduction 3,000,000
Biogas VFD – KWh Reduction 349,720
Lighting Upgrade – KWh reduction 542,063
1800000
1600000
M
o
n
th
2006
1400000
1200000
1000000
2007
800000
2008
600000
JAN
FEB
MAR
APR
MAY
JUN
JUL
KWH
AUG
SEP
OCT
NOV
DEC
Wastewater – Net Producer of Energy
Energy
Units
Value
Million BTU
Electricity
KWh
9,687,527
31,623
Natural Gas
ft3
5,926,805
6,371
Propane
gal
7,816
712
Diesel Fuel
gal
567
78
Total MMBTU’s
Generation of Biogas
38,784
1000 ft3
Net Production
Ratio Generated/Consumed
273,260
210,410
171,626
5.4
Ja
n0
M 3
ar
-0
M 3
ay
-0
3
Ju
l- 0
Se 3
p0
N 3
ov
-0
Ja 3
n0
M 4
ar
-0
M 4
ay
-0
4
Ju
l- 0
Se 4
p0
N 4
ov
-0
Ja 4
n0
M 5
ar
-0
M 5
ay
-0
5
Ju
l- 0
Se 5
p0
N 5
ov
-0
Ja 5
n0
M 6
ar
-0
M 6
ay
-0
6
Ju
l- 0
Se 6
p0
N 6
ov
-0
Ja 6
n0
M 7
ar
-0
M 7
ay
-0
7
Ju
l- 0
Se 7
p0
N 7
ov
-0
Ja 7
n0
M 8
ar
-0
M 8
ay
-0
8
Ju
l- 0
Se 8
p0
N 8
ov
-0
8
MMBTU
Biogas Production
Biogas
30000
25000
20000
15000
10000
5000
0
Biogas % of Total Fuel
Biogas % of Total Fuel
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
Jan03
Apr03
Jul03
Oct03
Jan04
Apr04
Jul04
Oct04
Jan05
Apr05
Jul05
Oct05
Jan06
Apr06
Jul06
Oct06
Jan07
Apr07
Jul07
Oct07
Jan08
Apr08
Jul08
Oct08
Process Hot Water
All 150 oF Process Hot Water is either heated or pre-heated with
reclaim heat.
Condensing Heat Exchanger Upgrade – 2004
Condensate Receiver Flash Steam Heat Recovery - 2007
60.0
150 oF Water Sources
100%
50.0
90%
80%
40.0
70%
60%
30.0
50%
40%
20.0
30%
20%
10.0
10%
0%
Direct Steam Heated Water
0.0
3
ay
-0
3
Ju
l- 0
Se 3
p0
No 3
v-0
Ja 3
n0
M 4
ar
-0
M 4
ay
-0
4
Ju
l- 0
Se 4
p0
No 4
v-0
Ja 4
n0
M 5
ar
-0
M 5
ay
-0
5
Ju
l- 0
Se 5
p0
No 5
v0
Ja 5
n0
M 6
ar
-0
M 6
ay
-0
6
Ju
l- 0
Se 6
p0
No 6
v-0
Ja 6
n0
M 7
ar
-0
M 7
ay
-0
7
Ju
l- 0
Se 7
p0
No 7
v-0
Ja 7
n08
1Q08
03
Condensate Receiver HX
2007
-0
2006
M
CHX w/Trim HX
2005
n-
Mash Cooler HX w/Trim HX
2004
ar
2003
Ja
Wort Cooler HX
2002
M
2001
Off Peak Power Consumption
Grains Unloading
Some Process Cooling
Finishing Modernization
2007 Average KW, 2006 Pattern and LBMP plus T&D
$120.00
15,000
14,500
$100.00
14,000
$80.00
13,500
$60.00
13,000
12,500
$40.00
12,000
$20.00
11,500
$0.00
1:
00
2:
00
3:
00
4:
00
5:
00
6:
00
7:
00
8:
00
9:
00
10
:0
0
11
:0
0
12
:0
0
13
:0
0
14
:0
0
15
:0
0
16
:0
0
17
:0
0
18
:0
0
19
:0
0
20
:0
0
21
:0
0
22
:0
0
23
:0
0
0:
00
11,000
2007 Actual Average KW
2006 Pattern
Average LBMP plus T&D
Lighting Upgrades
4,265 Fixtures throughout the brewery have been upgraded in the
past three years
2,700 Fixtures being upgraded during the course of the next year
LED Keg Cold Room
Five Separate Projects
EPAct05 Tax Incentives
Wastewater Facilities
Administration Building
Ancillary Buildings
Secondary Fermentation Area
Warehouse / Powerhouse
HVAC Upgrade
Hybrid System
Variable Air Volume
Terminal Reheat
Annual Energy Savings
1.6 Million KWh
5,000 MMBTUs
Fuel Consumption
2010 Goal – 10% Fuel Consumption Reduction
2005 Base Year
Baldwinsville met that in May 2007
Biogas meets19.5 % of our fuel need
2010 Total Fuel Goal
1,400,000
1,200,000
1,000,000
800,000
600,000
400,000
200,000
0
Dec-05 Mar-06
Jun-06
Sep-06 Dec-06 Mar-07
Jun-07
Sep-07 Dec-07 Mar-08
Jun-08
Sep-08 Dec-08
Electrical Power Consumption
2010 Goal – 10% Power Consumption Reduction
2005 Base Year
Baldwinsville met that in May 2008
2010 Goal Electricty
135,000
125,000
115,000
105,000
95,000
85,000
75,000
Dec-05
Mar-06
Jun-06
Sep-06 Dec-06
Mar-07
Jun-07
Sep-07 Dec-07
Mar-08
Jun-08
Sep-08 Dec-08
Other Projects
CO2 Advanced Purification System
Boiler Controls Upgrade
Operations Heating Controls Upgrade
Large Fans in Operations
Chemical Sterilization
Large Meeting Room
Regenerative Heating of Adjusted Water
Hybrid Security Vehicle
Administration Building LEED EB
Employee Suggestion Program
Utilities
Savings
2004 $244,203
2005 $631,837
2006 $814,580
2007 $840,564
2008 YTD $854,000
% of
Total
22.3%
72.5%
48.4%
42.0%
Employee
Participation
14.5%
14.5%
21.9%
24.9%
Backup
Utilities Web Page from
Baldwinsville Home Page
Estimated Utilities Cost
Estimated Utility Cost
Note the other useful tools
The Spreadsheet that
opens up.
California Climate Registry
Annual Emissions Report
Report Date: 05/05/2008 03:47 am PT
Contact: Audrey Bamberger
314-765-9248
audrey@anheuserbusch.com
Anheuser-Busch is one of the world's largest beer companies, and a leader in the entertainment and packaging industries. Anheuser-Busch operates in four segments:
Domestic Beer, International Beer, Packaging, and Entertainment. The company's interests also span aluminum beverage container recycling, malt production, rice
milling, real estate development, turf farming, label printing and transportation services. Anheuser-Busch is best known for the world's top two selling beers, Bud Light
and Budweiser.
Description:
NAIC Code:
Industry Type: Other
One Busch Place
www.anheuser-busch.com
SIC Code:
Legend
Blue = required
Orange = optional
St. Louis, MO 63118 United States
Primary Calculation
Methodologies: See attached documentation
Reporting Scope: CA
Reporting Year: 2006
CERTIFIED EMISSIONS INFORMATION
Reporting Protocol: General Reporting Protocol, Version 2.2 (March 2007)
Baseline Year (Indirect Emissions):
Baseline Year (Direct Emissions):
California Climate Registry
Direct Emissions CO2e CO2 CH4 N2O HFCs* PFCs* SF6 Unit
Mobile Combustion 12,747.35 12,132.02 1.33 1.89 0*. 0*0 0.00 0.00 metric ton
Stationary Combustion 137,732.16 137,386.91 2.53 0.94 0.00 0.00 0.00 metric ton
Process Emissions 20,986.71 20,986.71 0.00 0.00 0.00 0.00 0.00 metric ton
Fugitive Emissions 0.00 0.00 0.00 0.00 0.00 0.00 0.00 TOTAL DIRECT 171,466.22 170,505.64 3.86 2.84 0.00 0.00 0.00 metric ton
* HFCs and PFCs are classes of greenhouse gases that include many compounds. These columns may reflect the total emissions of multiple HFC and PFC compounds,
each of which has a unique Global Warming Potential (GWP). Emissions of each gas are first multiplied by their respective GWP and then summed in the total CO2equivalent column.
Indirect Emissions CO2e CO2 CH4 N2O Unit
Purchased Electricity 147,421.94 146,936.42 5.10 1.22 metric ton
Purchased Steam 0.00 0.00 0.00 0.00 Purchased Heating and Cooling 0.00 0.00 0.00 0.00 TOTAL INDIRECT 147,421.94 146,936.42 5.10 1.22 metric ton
CERTIFICATION INFORMATION
Certification Company: Tetra-Tech EM Inc.
Page 1 of 2
California Climate Registry
This report includes emissions from California sources
Anheuser-Busch Companies, Inc.
Annual Emissions Report
Report Date: 05/05/2008 03:47 am PT
Basis of Certification Opinion: Tetra Tech EMI reviewed the greenhouse gas inventory submitted by Anheuser-Busch Companies, Inc. to the Registry through the Climate
Action Registry’s Reporting Online Tool. Based on this review, site visits, and independent evaluation of the data, Tetra Tech EMI concludes that the Anheuser-Busch
inventory meets the reporting standards presented in the General Reporting Protocol (V2.2, March 2007). Tetra Tech EMI certifies this data without qualification,
according to the General Certification Protocol
(V2, July 2003).
OPTIONAL INFORMATION
Information in this section is voluntarily provided by the participant for public information, but is not required and
thus, not certified under Registry protocols.
Optional Emissions CO2e CO2 CH4 N2O HFCs* PFCs* SF6 Unit
Other Indirect Emissions 0.00 0.00 0.00 0.00 0.00 0.00 0.00 TOTAL OPTIONAL 0.00 0.00 0.00 0.00 0.00 0.00 0.00 * HFCs and PFCs are classes of greenhouse gases that include many compounds. These columns may reflect the total emissions of multiple HFC and PFC
compounds, each of which has a unique Global Warming Potential (GWP). Emissions of each gas are first multiplied by their respective GWP and then summed in
the total CO2-equivalent column.
Utility initiatives. Anheuser-Busch is committed to a comprehensive energy strategy which includes energy conservation and increasing our use of
renewable fuels. We recently implemented a project to identify greenhouse gas impacts from capital projects. Carbon dioxide capture systems. Four of our breweries
currently use carbon dioxide advanced purification systems. This technology captures and reuses carbon dioxide earlier in and throughout the fermentation process
than would otherwise not be captured.
California Climate Registry
Transportation. Anheuser-Busch works with its wholesalers and suppliers to
reduce truck miles and the subsequent environmental impact.
Anheuser-Busch is committed to reducing transportation costs and
associated environmental impacts and evaluating non-fossil-based fuels
and advanced vehicle technologies for use in the transportation fleet.
Voluntary partnerships. Anheuser-Busch is partnering with groups such as
EPA (Climate Leaders, SmartWay Transport, WasteWise, Landfill Methane
Outreach and Energy Star programs), the California Climate Action
Registry, WestStart-CALSTART and The National Biodiesel Board to help us
better understand and manage climate and renewable fuel issues.
Emissions Management Programs:
Emissions Efficiency metric:
Emissions Reduction Projects:
Anheuser-Busch Companies has a company-wide absolute goal of reducing
greenhouse gas emissions 5 percent from a 2005 baseline by 2010. This
goal is part of our commitment to Climate Leaders.
Emissions Reduction Goals:
Title Author Publish Date
REFERENCE DOCUMENTS
Page 2 of 2
This report includes emissions from California sources