Harnessing the hidden value of by-products to capture carbon credits Bob Carss, Group Environment Manager, VION Food Group Limited Stephen Woodgate, Chief Executive, Food Chain and Biomass Renewables Association Presentation Overview Introduction to Vion Introduction to Fabra The by-products sector Joining forces Summary VION Food Group: Profile • International Food Concern • € 9.0 billion turnover • 27,000 employees • Head Office • Eindhoven, The Netherlands • Core activities • Food • Ingredients • Mission • VION wants to anticipate and fulfill customer and consumer needs with high quality and innovative Food and Ingredients • Objective • VION wants to become a leader in (selected) Food and Ingredients market segments • Credo • “Passion for Better Food” VION Locations VION Food Netherlands VION Food Germany VION Food International VION Food UK VION Ingredients Profile of VION UK • • • • • • 46 facilities across the UK 14,000 employees (FTE) 70% revenue from retailers Happy Pigs welfare programme #1 in Chicken Agriculture #1 UK meat processor • #2 in Pork, Chicken and Beef • #1 in Bacon, Lamb and Sausages • Cooked Meats • Turkey • Pizza • Other (Agri) VION Organisational Chart ZLTO / NCB Ontwikkeling ZLTO is a Farmers Union with approximately 18,000 members Supervisory Board VION Executive Board FOOD INGREDIENTS Fresh pork, beef, poultry, lamb and convenience products Ingredients e.g. fat, proteins, gelatin 21,000 employees 6,000 employees NL DE UK Int. NL DE BE Int. Rousselot Green Energy Park Ecoson € 20 million investment in sustainable energy Digester Capacity: 8,000 MWh 36,000 MWh thermal energy electricity Electricity consumption per average household is ± 3.5 MWh per year (Source: NIBUD) Energy Own use + Rendac Back to electricity grid Flotation sludges Raw material Digester Process Water WWT-installation Digestate Rendac End products Application Development of green electricity production Digester input Sludge trade to 3rd party 45000 40000 35000 30000 25000 20000 15000 10000 5000 0 180.000 160.000 thousand (ton/year) MWh per year Electricity production 140.000 120.000 100.000 80.000 60.000 40.000 20.000 2005 2006 2007 2008 2009 2010 2011 2012 2005 2006 2007 2008 2009 2010 2011 2012 • Key for success: Integration with C1 facilities, permits and subsidy programs • Additional investment in 2011 in 2nd post digester and a fourth motor and electricity generator • After these investments Ecoson is the Netherlands Nr 1 in green electricity production from Biogas Refinery and Biodiesel Current capacity: 50.000 MT De-acidified fat 5 million liters Biodiesel Animal fat Refinery Fatty Acids CHPs/ steam boilers Rendac De-acidified fat Raw material Biodiesel Biodiesel Truck fleet B100/ B20 installation Glycerin Digestation End products Application Process page 10 VION Summary • VION are using current engineering technology to use the by-products of food production for Renewable Energy generation • Energy Savings/ Efficiencies/ Climate change benefits • In our UK approach we are looking to utilise such products to replace more carbon intensive alternatives. • We hope to move this forward through the work we are undertaking with FABRA and Harper Adams by validating the carbon footprint aspects of our products. Introduction to Fabra Fabra members collect, process and utilise more than 2/3rds of the Animal by-Products [ABP] originating in UK. Fabra is committed to maximising the value of ABP by using the best technology operated to the highest standards. Introduction to Fabra Introduction to Fabra Fabra are members of EFPRA (European Fat Processors and Renderers Association) Many of the initiatives discussed are part of EFPRA’s ongoing scientific , technical and promotional work Fabra are members of the WRO ( World Renderers Organisation)... Many of the common themes are adopted by WRO Stephen Woodgate is a member of the EFPRA Executive Board and is currently 2nd Vice-President of the WRO The origin of animal by-products Live Animals Slaughter Fallen Stock Hide and Skin Food – meat and edible offal Animal By-Products Amounts of Animal By-products Total amount of UK animal by-products ~ 2.25 million tonnes per annum Rendering: Simplified Process Flow diagram Raw material Sizing Drying/Cooking Pressing Decanting Cooling Grinding Centrifuge Processed Proteins “MBM” or “PAP” Rendered Fat “Tallow” Processing Systems in Practice Category1 Category2 By-Product Processing [Rendering] MBM Rendered Fat Category 3 Bio Fuel By-Product Processing [Rendering] PAP Rendered Fat A carbon footprint “toolkit” for the rendering industry Angel Ramirez Calculating the carbon footprint Land use change Methane Transpor t fuel Crop growing for feed production Fertiliser Transpor t fuel Animal husbandry Energy Energy * Transpor t fuel Animal Slaughterhouse Animal By-product processing Energy Fertiliser Energy Additives Focus on By-Products Rendered animal fats * Processed animal protein Meat and bone meal * The Rendering Process: Boundaries Summary: Rendering Carbon Footprint (so far) What we have learned so far from the Rendering industry study* Products: Rendered Fat Category 1 Category 3 “Carbon Footprint” kg CO2 / kg product - 0.77 0.15 *Preliminary data: Fuel 25% Natural gas:75% rendered fat Engineering aspects: Ability to use Renewable fuels in thermal installations Focus on Energy efficiencies in the process Ability to develop Carbon Credits and gain ROC’s Joining the pieces together...... Joint work with Vion and Harper Adams will consider wider perspectives.... From “day old” chick through to use of Poultry PAP in Aquafeeds: Broiler Poultry Production Feed Milling Slaughter Results of CFP Assessment – Food / Feed Comparison Rapeseed Oil Soybean Oil Palm Oil Cat 3 Mixed Fat Cat 3 Poultry Fat Foodgrade Fat 0 500 1.000 1.500 2.000 2.500 3.000 Carbon Footprint (kg CO2 eq per tonne) 3.500 4.000 Acknowledgement and Thank you to Angel Ramirez Bob Carss bob.carss@vionfood.com Stephen Woodgate swoodgate@fabra.co.uk