Energy Efficiency and Renewable Energy Opportunities for Wineries Mr Pramesh Maharaj WEA 2012 NZ

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Energy Efficiency and Renewable Energy Opportunities for Wineries 6-7 September 2012, Pramesh Maharaj Senior Business Projects Manager, EECA

Agenda Who is EECA

Business Sustainability in the New Zealand context Government’s energy policies and goals

EECA Business Strategy and support Case Studies

Questions

Who is EECA

Residential

Business

Inspiring energy efficiency Advancing renewable energy

Products

Government & local govt

Energy supply

What is Business Sustainability in the New Zealand context? NZ Market oriented, committed to free trade Our key exports include agriculture, forestry, wood products, fresh fruit, seafood, wine & tourism

Green miles, discerning overseas consumers/tourists What is Good business practice? Enhanced customer & supplier relationships Higher staff motivation, personal involvement Enhanced Brand value Increased Competitiveness Value is beyond energy and carbon savings Energy management is pivotal to business sustainability

Where does NZ GHG emissions come from

Where is NZ energy used

Energy efficiency and Wineries “Winemaking is a blending of old-world art with modern science” Dr Thomas Henick-King, Director, Viticulture and Enology Program, Washington State University “A winery’s success is deeply rooted in a healthy environment so it makes sense to do everything in the most energy efficient way”. “It appeals to discerning consumers who demand the respectable use of natural resources”

Case study: Yealands Estate http://www.eecabusiness.govt.nz/energyspot/episode-27/yealands-estate

Yealands Estate, a privately owned winery in Marlborough, has made sustainability a core business value. Using energy as efficiently as possible - including renewable alternatives - is an essential part of that. The company's approach to energy management won it the EECA small-medium sized business award in 2009, with judges praising the sound commercial basis underpinning its work. Yealands' energy innovations include: Solar-reflective, high insulation cladding on its new winery Recovery and recycling of heat energy from refrigeration Cool night air used to chill wine, reducing need for refrigeration Individual temperature control on winery tanks Motion sensors to control lighting and air-conditioning Installation of solar panels and wind turbines.

What is the Govt strategy to support sustainability? New Zealand Energy Strategy 2011-2021 90% of electricity to be generated from renewable resources by 2025 50% reduction in greenhouse gas emissions from 1990 levels by 2050

New Zealand Energy Efficiency and Conservation Strategy Technology focused

Partnerships with business and local government

The New Zealand Energy Efficiency and Conservation Strategy (NZEECS) Sector based targets:

By 2016, the efficiency of light vehicles entering the fleet has further improved from 2010 levels. By 2013, insulate 188,500 homes By 2016, extend minimum energy performance standards, labelling, and ENERGY STAR for products to line with major trading partners.

By 2016: An improvement in the commercial and industrial sector energy intensity level

Business Sector Strategy and support Three pronged approach Increase capacity and capability of business sector to embrace energy efficiency & renewables Training for energy and facilities managers Technology specific energy audits, base level and investment grade Provide access to Information Website, case studies, workshops Webinars through Waikato University and EMANZ Financial assistance to increase uptake Grant funding for audits and projects for specific technologies, up to 40% or $100,000 per site

Business sector technology focus Industrial Compressed air Pumps and Fans systems Process hot water and steam systems Refrigeration systems

Commercial Buildings HVAC Lighting Building management systems Business Transport Driver training, SAFED (safety=energy efficiency) Fleet audits Backhaul optimisation

Key technologies and opportunities in Wineries Refrigeration - temperature control, cold stabilisation -well maintained and insulated pipes -install variable speed drives on motors -rapid contact systems -electro dialysis

Heat recovery from chillers for heating

misc, 8% hot water, 7%

lighting, 10%

Tank Insulation to reduce heat gain Compressed air leak detection don’t oversize equipment use staging of plant sizes

Motors/pumps, 15%

Lighting- install skylights and high efficiency units with occupancy sensors Consider Renewable energy options solar hot water, Photovoltaic panels, bio-energy for heat and fuel,

Refrigeration, 60%

EECA Funding options Grants via accredited service providers and directly with EECA Projects must deliver savings that cost less than 8.5c/kWh, to avoid building new electricity generation. Energy audit grants – funding for base level and investment level audits for compressed air systems, pump and fan systems, steam and hot water systems, and industrial refrigeration, up to 40% or $20,000 per site. Project grants – funding for implementing energy efficiency and renewable energy projects, up to 40% or $100,000 per site.

EECA funding options: visit the website

Recent EECA supported projects Craggy Range: heat recovery project. Pernod Riccard: boiler upgrade and a lighting upgrade. Mt Difficulty Winery: wood fired boiler. St Helena Winery: heat recovery project. Yealands Estate: heat recovery project and vine prunnings boiler

New Zealand Wine Company: gasified vine prunnings.

Penrod Riccards hot water boiler New boiler used to heat water for cleaning is almost 12% more efficient than the steam boiler it replaced, and is expected to reduce natural gas use by 479,000 kWh a year.

Penrod Riccards lighting upgrade Annual lighting energy use reduced by 90% · Lighting cost savings of $100,000 per year · Approx. 3 year payback · Improved operator safety · Heat reduction led to further cooling energy savings (estimated at $12,000 pa)

a custom hi-bay fluorescent fitting, with long range occupancy sensors. (This reduced lighting demand from 128kW to a measured 5kW to 17kW • improved design to illuminate both the sides and tops of the crates. • improved light level in the roadways.

Yealands vine prunings boilers heating water and glycol in the winery. Boilers can produce over 500 KW of energy, and burn up to 30 bales per day.

Vine pruning for tractor fuel A prototype tractor to use a gasification process to turn the prunings into a usable fuel, allowing the company to cut diesel use and carbon emissions

Mt Difficulty Wine, 100kW woodchip boiler replaced LPG

Industrial heat with wood chips PH Kinzett tomatoes Existing coal fired 4MW boiler was converted to burn wood chip Simple payback is 3.2 years, with an IRR of 25%

CO2 savings are 2,100 tonnes per yr No change in labour cost

Industrial heat Radford Yarn Technologies New Zealand’s first industrial wood pellet fired boiler Benefits: Reduced electricity by 50,000 kWh/yr Reduced CO2 emissions by 350 tonnes/ yr Markets product as environmentally friendly ‘Supreme Winner’ at EECA Awards 2009

S.A.F.E Foundry 68 kW solar PV 360 photovoltaic panels with a maximum generation of 62.4kW. Six inverters change this electricity from DC to AC power required for S.A.F.E Ltd’s heat treatment furnaces, forging plant and CNC machines. Any surplus electricity is fed into the National Grid

Why energy efficiency and renewable energy makes sense Business drivers, competitive advantage Energy security - provides a buffer against international price shocks Branding and export opportunities, tourism drivers Climate change and international obligations Perception is a challenge for distant producers like NZ Need to go “the extra mile” on sustainability

Key to harnessing business sustainability Get top level support, Boardroom down Energy efficiency is the engine room Consider cost effective renewable options Set SMART goals - Measure and monitor Continuously improve Seek help Contact EECA www.eecabusiness.govt.nz Phone 04 470 2200 Or contact your energy retailer!

Thank You Questions Visit: Email:

www.eecabusiness.govt.nz [email protected] Phone 09 374 3806

Inspiring energy efficiency Advancing renewable energy