Gas with Panache Don Allen
Don Allen
© Don Allen: Gas with Panache; 2013
1
There was an emerging emphasis on science & technology by institutions like Roseworthy
Carbonic maceration was researched & practiced
Fornachon, Hickinbotham & later Rankine started to extensively research the role of oxygen
New gases & gas technology emerged; new supply options were being introduced (generation; new gas mixers; spargers; diffusers etc).
The emphasis was on the application of technology in winemaking; innovation & creating value Winemakers started to better understand & practice DO management.
The effective use of inert gases, starting with dry ice, CO2 & mixed gas was studied & implemented. Gas performance was researched & trialled
Gas lectures at University & TAFE level were introduced along with practical sessions (“hands on” gas use).
It made a difference; It created a winning edge The approach was noticed & widely copied globally.
The industry was collecting & reusing fermentation CO2
© Don Allen: Gas with Panache; 2013
2
The world market has changed, as have the market needs, calling for low alcohol; organic; lighter, more aromatic styles. New varieties are emerging. Export market is “volatile”, $AUD impact increased.
“New world” wine producing countries have emerged with lower cost structures, competing in the same markets with wines of equal quality. The “traditional” wine producing countries started to adapt rapidly to the new requirements; “regaining iconic status”
Production has become an issue; (undersupply, oversupply, yields). Many wineries & vineyards are surviving by winding down assets. The industry structure changed; ownership changed; focus changed. We gained a reputation for “cheap & cheerful” Carbon emissions & sustainability have become global issues
© Don Allen: Gas with Panache; 2013
3
market drivers Elegance
Refinement
Balance
Delicacy
Harmony
Finesse (single vineyard / premium wines) In gas terms, balance is assisted by management of (a) dissolved oxygen (DO), (b) total package oxygen (TPO) and (c) dissolved carbon dioxide (DCO2). It’s a refinement & re-application of the Roseworthy technology and research:-
Target; Innovative wine production!
© Don Allen: Gas with Panache; 2013
4
cost drivers Quality
Versatility/ Assets utilisation
Profitability Efficiency
Labour & operating costs © Don Allen: Gas with Panache; 2013
5
Gas selection; N2 generation; “real” gas cost
Deoxygenation; Gas mixes; Barrel blasting?
Total package oxygen (TPO)
Cost control; Efficiency; Innovative wine production; Balance; Finesse; Aroma;
Field Crush; Sustainability
Must cooling options Inerting options; press/centrifuge. Flotation
Ferment CO2 & Aroma recovery
Carbon emissions; BOD control; pH control
Tools: Process &/or Gas & Applications audit
© Don Allen: Gas with Panache; 2013
6
% of total gas 54% 5.7 l/l
46% 4.9 l/l
N2
CO2
1.8 1.6 1.4
Fully saturated
1.2 1.0 Crisp 0.8
Gas use split is Australian average, all winery sizes, from survey. The CO2 is a critical element in the profile of the wine. It needs managing, not eliminating, but the carbon emission figure (CO2e) and end cost can be influenced.
0.6
Prickling
0.4
Developing
0.2
Flat 0.0 DCO2 G/L
© Don Allen: Gas with Panache; 2013
7
The real cost of gas needs to be used to get an accurate overall cost picture. It comprises: The product cost Converted to equivalent cubic metres with CO2 to The delivery cost get an accurate comparison with N2 (1kg = 0.533m3) Monthly rental/facility costs The gas usage / efficiency factor / specific gravity (SG)
Nitrogen generation cost comprises: Capital; maintenance; overheads; ROI; back up costs Electricity usage (specific energy = Kw/m3) & cost Utilisation Tools; Gas & Process summary audit; Generator cost analysis.
© Don Allen: Gas with Panache; 2013
8
In order to get an accurate comparison, everything should be converted to equivalent m3 of gas. Figures are general industry, based on 2012 feedback. Gas/SG/Usage NITROGEN (SG 0.97; 3 v/v)
Unit Cost
Cost/M3
“Real” Cost/M3
Cylinder
$4.00
$4.00
$12.00
Bulk
$1.00
$1.00
$3.00
$1.05
$3.15
Generator CARBON DIOXIDE (SG 1.52; 1.5 v/v) ARGON (SG 1.38; 1.2 v/v) 50/50 GAS MIX (SG 1.25; 2.2 v/v)
Cylinder
$2/75/kg
$5.15
$7.72
Bulk
$1.00/kg
$1.88
$2.82
Dry Ice
$3.75/kg
$7.00
$10.50
Cylinder
$6.00
$6.00
$7.20
Bulk
$2.10
$2.10
$2.52
Cylinder
$4.50
$9.90
Mix ex Bulk
$1.44
$3.17
Mix ex Generator
$1.46
$3.21
The generator is a purchased PSA unit, taken as producing 28m3/hour @99.5%.
Usage from INRA; Montpellier, France (1992) & DA field trials, 1972 – 2012 (Australia, NZ, Sth Africa). © Don Allen: Gas with Panache; 2013
9
NITROGEN GENERATOR COMPARISON
CUSTOMER NAME
Consumption
Estimated annual gas req:
91,000
Peak hourly rate required
Minimum pressure required kPa Monthly gas req: Avg running hours/year: Avg running hours/month: Avg m3/hour (when running): Avg Weeks/Year: Avg Days/Week: Avg Hours/Day:
7,583 3,840 320 23.7 48 5 16
System comparison: Purchased
System capacity m3/hr Generator run hours Specific energy Total electricity kW Total electricity $/year Carbon emissions (tonnes)
Purchased System Details Component m3/hr Generator MAXI 112 42 Compressor Kw 22 Kaeser 1500 System Buffer L 10000 Storage Buffer L Activated carbon filter Drier & Oil detection Dewpoint dependant switching (option) Installation Total Capital Requirement
Rental System Details Component m3/hr Generator M752 28 Compressor kW 22 Buffer Telemetry Flowmeter Gas Mixer Installation Lease term (years) Annual Cost
Cost $71,000 $22,000 $4,000 $18,000 inc inc $3,000 $10,000 $128,000
42 2,167 1.00 91,000 $13,650 91
System capacity m3/hr Generator run hours Specific energy Total electricity kW Total electricity $/year Carbon emissions (tonnes)
CO2e Factors
28 3,250 1.00 91,000 $13,650 91
Electricity $/kW Hr
Annual Operating Costs Purchased System (1) Cost of capital (per year) Depreciation CAPEX Purchased System Back up gas cost Maintenance, system Maintenance, compressor Breakdown Mtc. Allowance Registrations, inspections etc Electricity cost purchased Overheads 10% Cost of CO2e OPEX Purchased system TOTAL ANNUAL REAL COST Real cost per M3
$9,600 $25,600 $35,200 $15,925 $8,000 $5,000 $1,500 $1,000 $13,650 $3,520 $2,103 $43,198 $78,398 $0.86
$/month $3,700 $0 $0 $0 $0 $0 $0 5 $44,400
Input Cells
System capacity: Rented
Today, at least an impartial analysis is required when considering rental or purchase of a generator. © Don Allen, 2012
Date
Rented / Leased System (2) Rent / Lease cost $44,400
Back up gas cost Maintenance, system Maintenance, compressor Breakdown Mtc. Allowance Registrations, inspections etc Electricity, rented system
$3,413 $0 $0 $0 $0 $13,650
Cost of CO2e OPEX Rental system TOTAL ANNUAL REAL COST Real cost per M3
$2,103 $19,166 $63,566 $0.70
SA VIC NSW WA SA VIC
1.005 1.35 0.98 0.93 $0.150
Financial Assumptions Interest rate % 7.5% Depreciation Yrs 5 Overheads % 10% Maint cost %/capital 10% Back up; purch. % 7.0%
Back up; rented. % Back up; Purch $/m3 Back up; rent $/m3
© Don Allen: Gas with Panache; 2013
3.0% $2.50 $1.25
10
N2 generation $2.25 ~32% Util ~65% Util
$2.00 $1.75
$1.50 e.g. A 28m3/hr system is 38% cheaper, utilised > 65%
$1.25 $1.00 $0.75 $0.50 $0.25 6M3/hr
14M3/hr
28M3/hr
42M3/hr
57M3/hr
86M3/hr
“Real” cost of generated N2. (Purchased system). 5 yr depreciation, capital @7.5%, electricity @ $0.15/kw, full system inc buffers etc, plus maintenance, back up & CO2e @ $23/t. 32% utilisation = ~2,200-2,800hrs/yr; 65% = 4,800-5,200hrs/yr. (allows for 10% system down time = ~7,900 hrs max)
© Don Allen: Gas with Panache; 2013
11
External Supply Easy; generally cheaper for all but large High purity (>99.5% to global standards) Supply dependant on storage size
Dependant on supply line CO2e issues (supply dependant) Monthly facility fees apply
Off Shore Gas/Oil plants (Vic, WA) Extraction from power/fertiliser/chemical Fermentation (breweries/distilleries) CO2 generation plants
Underground (natural) sources (Vic, SA)
© Don Allen: Gas with Panache; 2013
12
Partial Ferment Supply Recover only annual requirement Smaller plant requirement Purity can be set to suit (>99.5% may not be required) Known technology Choice of plants Maintenance is winery responsibility 8000 Power/refrigeration cost
CO2 (tonnes) from fermentation (depending on conditions)
6000
560 3,740
4000 Red figures 2000 are industry 0 typical
7,480
7.5
15
60
37
75
374
500t
1000t
5000t
120
280 1,870
748
10000t 25000t 50000t 100000t
© Don Allen: Gas with Panache; 2013
13
Dual Ferment Tanks Collects fermentation CO2 in same tank as the ferment CO2 can be reused for selective extraction Pre fermentative skin contact &/or maceration possibilities Can be used as a “variable” capacity tank
Salcheto Winery, Italy
(Ganimede Fermenter); typical process; 1. Gap saturation 2. Opening by-pass (cap flooded) 3. Delestage 4. Leaching & Static Dripping Benefits; aroma, colour, fruit.
© Don Allen: Gas with Panache; 2013
14
Full Ferment Recovery Large plant requirement + storage Liquefaction required
Existing technology (breweries) High purity possible Economy based on high CO2 usage Maintenance, power, refrigeration costs to consider CO2 recovery / liquefaction was being used in the wine industry over 40 years ago (removed). Low pressure fermentation recovery/reuse is still being used (gas bag) System suppliers include; Haffmans; Wittemann, GEA, ASCO, Praxair, Greenlime etc. All have a grape fermentation questionnaire available to assist system sizing.
© Don Allen: Gas with Panache; 2013
15
Depends on: Whether you recover only the annual CO2 requirement or all available. Whether you only use it as a low pressure gas (e.g. a gas balloon) or as high pressure (liquid); The purity required (95%, 98%, 99%, >99.5% etc). Electricity cost and usage.
Full recovery will need to factor in a CO2 storage vessel, (can be an expensive proposition)!
Recovery is widely done with large, uniform production plants (e.g. breweries). It is also the subject of on-going research (UC Davis) The newest option, capture and sale for other products (sodium bicarbonate; calcium carbonate) is not considered here (nor is sequestration) although it may ultimately add to cost effectiveness (refer Chateau Smith Haut Lafitte, Bordeaux and Skyonic, USA).
© Don Allen: Gas with Panache; 2013
16
the broad overview Purchased Purchased CO2vsCost/Kg Manufactured (product+delivery+rental) CO2 Cost/Kg ) $3.00 $6.00
$2.50 $5.00 $2.00 $4.00 $1.50 $3.00
Cost/Kg Cost/Kg Mfg Cost/Kg#
$1.00 $2.00 $0.50 $1.00
$0.00 5T/Yr 10T/Yr 10T/Yr 15T/Yr 15T/Yr25T/Yr 25T/Yr50T/Yr 50T/Yr 100T/yr200T/Yr300T/yr400T/Yr500T/Yr 100T/yr 200T/Yr 300T/yr 400T/Yr 500T/Yr 3 year depreciation; capital cost 7.25%; $50K to $150K system cost; $35K to $100K vessel cost; electricity $0.15/kw; maintenance included; overheads 10%; 5% back up supply included.
© Don Allen: Gas with Panache; 2013
17
The ~800 volatile compounds lost during the must’s fermentation into wine represent a natural part of the winemaking process (part of the finesse?). The capturing and analysis of these compounds that are purged with the CO2 flow during the gas exhaust of the fermentation stage is the subject of considerable global study e.g: Colibaba et al, University of Ag. Sciences, Romania Macedo et al, University Nova de Lisboa Gomez et al, University of Cadiz Frederick Teye, Virginia Polytechnic Institute & State University AWRI Etc
Many are referring to the use of supercritical fluid extraction using CO2 (SFE). © Don Allen: Gas with Panache; 2013
18
Supercritical CO2 is a fluid state of carbon dioxide where it is held at or above its critical temperature and pressure. In this form, the CO2 is not solid, liquid or gaseous. In this supercritical state it retains the high solvent potency of its liquid state, but benefits from the lower viscosity and higher diffusion of its gaseous form.
Separate phases (gas & liquid) meniscus easily observed Photos courtesy of Leeds University
With temperature increase the meniscus begins to diminish.
Increased temperature causes gas & liquid densities to become more similar. Meniscus less easily observed.
Critical temperature & pressure achieved, the liquid & gas phases are not visible. The “supercritical” phase shows both liquid & gas properties
© Don Allen: Gas with Panache; 2013
19
Basic phase diagram of CO2 Extraction Condensation Separation
© Don Allen: Gas with Panache; 2013
20
Evonik SFE System
The process consists of exposing starting material and CO2 to very precise pressure & temperature settings. The raw material is first loaded in a vessel, while temperature is brought to a minimum of 31C & pressure increased to 74 bars minimum. The supercritical CO2 flows through the material and targets and captures soluble aroma molecules. The accuracy can be adjusted by altering the pressure. The flow moves to a separator where pressure & temperature are brought back to conditions where the supercritical CO2 reverts back to its gaseous state. It can be recovered, stored and reliquefied. © Don Allen: Gas with Panache; 2013
21
Perfect fit as a building block for compounded flavours in: Beverages: Primary flavour Dairy: Ice Cream; Yoghurt Bakery: Pastries; Fillings Confectionary Wine Vanilla Enhancement In Summary: As part of that overall target of achieving finesse, SFE at least needs to be fully researched and trialled in the wine industry, to assess the full possibilities.
© Don Allen: Gas with Panache; 2013
22
World Resources Institute; Greenhouse Gas Protocol
© Don Allen: Gas with Panache; 2013
23
CO2e + Product Estimate. CO2e cost $0.023
SUMMARY
Winery Name 1 0.5
Nitrogen Carbon Dioxide CURRENT SUPPLY
Total kg CO2e Nitrogen 32,890 Carbon Dioxide 35,550 N2 Generator 0 TOTAL 68,440 Total "Real" Cost/M3 inc CO2e
NSW VIC SA
Total CO2e Cost $756 $818 $0 $1,574 $3.047
Assumptions Used: CO2 volume case 1 (current) = 50t. N2 = 23,000m3. Total 49,650m3 of gas. Case 2 (proposed); CO2 volume = 35t. N2 = 32,000m3. Total 49,650m3 of gas “Gas Cost Analysis” tool
0.9 1.23 0.72
Total Gas Cost $62,200 $87,500 $0 $149,700 $151,274
© Don Allen
CO2e + Product Estimate. CO2e cost Nitrogen $0.023 Carbon Dioxide PROPOSED SUPPLY
SUMMARY
Total kg CO2e Nitrogen 0 Carbon Dioxide 24,885 N2 Generator 39,360 TOTAL 64,245 Total "Real" Cost/M3 inc CO2e
Winery Name 1 0.5
NSW VIC SA
Total CO2e Cost $0 $572 $905 $1,478 $2.294
0.9 1.23 0.72
Total Gas Cost $0 $70,250 $44,480 $114,730 $116,208
© Don Allen: Gas with Panache; 2013
24
winery gas needs analysis: by application & gas winery data: Name total tonnes total litres total cases location
1,000 680,000 75,556
gas # of lots of each → Main or sub operation↓ Racking, tank Ullage mgmt Deoxygenation Micro Ox. Pigging
gas argon co2 dry ice gas mix nitrogen oxygen so2
$42.00 $63,943.28 $0.094
labour rate TOTAL OPERATIONS COST TOTAL COST PER LITRE
Nitrogen Gas Mix Nitrogen Oxygen CO2
price / volume inputs Price M3 kg
red
white
spark.
15
15
5
15 7 2 10 2
15 15 15 2 12
5 0 0 0 0
total ops.
525 330 255 180 210 0
$5.50 $2.06 $5.91 $1.55 $1.05 $2.75
m3
kg
man hrs per yr
labour cost
unit gas cost
525 495 127.5 90 210 0
$22,050.00 $20,790.00 $5,355.00 $3,780.00 $8,820.00 $0.00
$1.05 $1.55 $1.05 $2.75 $2.06
cost per litre
$1.10 $3.15
$0.00
operations per year by wine style litres man hrs total litres gas/op per op
2500 1000 2000 150 1500
volume
1312500 330000 510000 27000 315000 0
1 1.5 0.5 0.5 1
gas cost
operation total cost
$1,378.13 $511.50 $535.50 $74.25 $648.90 $0.00
$23,428.13 $21,301.50 $5,890.50 $3,854.25 $9,468.90 $0.00
Tools: Gas Needs Survey/Analysis (by gas & operation)
© Don Allen: Gas with Panache; 2013
25
Gas represents from 1 to 3 cents/bottle; Gas labour is up to 5 cents or more.
Bottling
2% $0.20
Marketing
12% $0.84
Oak
13% $0.85
Winemaking
15% $0.95
Main focus today
Fruit
25% $2.00
Cartons
33% $2.10
Cost range: $6.95 - $9.00/bottle.
Putting all the elements together; science, technology, oxygen management, gas selection, gas equipment utilisation, quality & selective automation, lead to improved efficiency & versatility; helping the focus for premium wines.
Source: Deloitte Benchmarking Survey; Average of all winery sizes
© Don Allen: Gas with Panache; 2013
26
Examples Versatility /
Quality 4
Assets utilisation
5 3
1
Profitability
5 2 4
2. WA Winery; DI & inefficient mixed gas system. Result less CO2. more mixed gas, ~-20% on costs. 3. VIC Winery; DI only. Result less CO2, lower labour, efficiency up, even allowing for mixed gas capital.
2
1
Efficiency
1. SA Winery; DI & under utilised generator. Result: less CO2, better asset utilisation
Labour & operating costs 3
For a winning edge you need sufficient data to make a decision, based on the latest knowledge & technology, plus conformation to (new) market needs & regulations. The Roseworthy model?
4. NZ Winery; DI, CO2 gas, underutilised generator. Efficiency & profitability up. 5. NZ Winery. Di only. Efficiency & profitability target achieved.
© Don Allen: Gas with Panache; 2013
27
Thank you
© Don Allen: Gas with Panache; 2013
28
© Don Allen: Gas with Panache; 2013
1
There was an emerging emphasis on science & technology by institutions like Roseworthy
Carbonic maceration was researched & practiced
Fornachon, Hickinbotham & later Rankine started to extensively research the role of oxygen
New gases & gas technology emerged; new supply options were being introduced (generation; new gas mixers; spargers; diffusers etc).
The emphasis was on the application of technology in winemaking; innovation & creating value Winemakers started to better understand & practice DO management.
The effective use of inert gases, starting with dry ice, CO2 & mixed gas was studied & implemented. Gas performance was researched & trialled
Gas lectures at University & TAFE level were introduced along with practical sessions (“hands on” gas use).
It made a difference; It created a winning edge The approach was noticed & widely copied globally.
The industry was collecting & reusing fermentation CO2
© Don Allen: Gas with Panache; 2013
2
The world market has changed, as have the market needs, calling for low alcohol; organic; lighter, more aromatic styles. New varieties are emerging. Export market is “volatile”, $AUD impact increased.
“New world” wine producing countries have emerged with lower cost structures, competing in the same markets with wines of equal quality. The “traditional” wine producing countries started to adapt rapidly to the new requirements; “regaining iconic status”
Production has become an issue; (undersupply, oversupply, yields). Many wineries & vineyards are surviving by winding down assets. The industry structure changed; ownership changed; focus changed. We gained a reputation for “cheap & cheerful” Carbon emissions & sustainability have become global issues
© Don Allen: Gas with Panache; 2013
3
market drivers Elegance
Refinement
Balance
Delicacy
Harmony
Finesse (single vineyard / premium wines) In gas terms, balance is assisted by management of (a) dissolved oxygen (DO), (b) total package oxygen (TPO) and (c) dissolved carbon dioxide (DCO2). It’s a refinement & re-application of the Roseworthy technology and research:-
Target; Innovative wine production!
© Don Allen: Gas with Panache; 2013
4
cost drivers Quality
Versatility/ Assets utilisation
Profitability Efficiency
Labour & operating costs © Don Allen: Gas with Panache; 2013
5
Gas selection; N2 generation; “real” gas cost
Deoxygenation; Gas mixes; Barrel blasting?
Total package oxygen (TPO)
Cost control; Efficiency; Innovative wine production; Balance; Finesse; Aroma;
Field Crush; Sustainability
Must cooling options Inerting options; press/centrifuge. Flotation
Ferment CO2 & Aroma recovery
Carbon emissions; BOD control; pH control
Tools: Process &/or Gas & Applications audit
© Don Allen: Gas with Panache; 2013
6
% of total gas 54% 5.7 l/l
46% 4.9 l/l
N2
CO2
1.8 1.6 1.4
Fully saturated
1.2 1.0 Crisp 0.8
Gas use split is Australian average, all winery sizes, from survey. The CO2 is a critical element in the profile of the wine. It needs managing, not eliminating, but the carbon emission figure (CO2e) and end cost can be influenced.
0.6
Prickling
0.4
Developing
0.2
Flat 0.0 DCO2 G/L
© Don Allen: Gas with Panache; 2013
7
The real cost of gas needs to be used to get an accurate overall cost picture. It comprises: The product cost Converted to equivalent cubic metres with CO2 to The delivery cost get an accurate comparison with N2 (1kg = 0.533m3) Monthly rental/facility costs The gas usage / efficiency factor / specific gravity (SG)
Nitrogen generation cost comprises: Capital; maintenance; overheads; ROI; back up costs Electricity usage (specific energy = Kw/m3) & cost Utilisation Tools; Gas & Process summary audit; Generator cost analysis.
© Don Allen: Gas with Panache; 2013
8
In order to get an accurate comparison, everything should be converted to equivalent m3 of gas. Figures are general industry, based on 2012 feedback. Gas/SG/Usage NITROGEN (SG 0.97; 3 v/v)
Unit Cost
Cost/M3
“Real” Cost/M3
Cylinder
$4.00
$4.00
$12.00
Bulk
$1.00
$1.00
$3.00
$1.05
$3.15
Generator CARBON DIOXIDE (SG 1.52; 1.5 v/v) ARGON (SG 1.38; 1.2 v/v) 50/50 GAS MIX (SG 1.25; 2.2 v/v)
Cylinder
$2/75/kg
$5.15
$7.72
Bulk
$1.00/kg
$1.88
$2.82
Dry Ice
$3.75/kg
$7.00
$10.50
Cylinder
$6.00
$6.00
$7.20
Bulk
$2.10
$2.10
$2.52
Cylinder
$4.50
$9.90
Mix ex Bulk
$1.44
$3.17
Mix ex Generator
$1.46
$3.21
The generator is a purchased PSA unit, taken as producing 28m3/hour @99.5%.
Usage from INRA; Montpellier, France (1992) & DA field trials, 1972 – 2012 (Australia, NZ, Sth Africa). © Don Allen: Gas with Panache; 2013
9
NITROGEN GENERATOR COMPARISON
CUSTOMER NAME
Consumption
Estimated annual gas req:
91,000
Peak hourly rate required
Minimum pressure required kPa Monthly gas req: Avg running hours/year: Avg running hours/month: Avg m3/hour (when running): Avg Weeks/Year: Avg Days/Week: Avg Hours/Day:
7,583 3,840 320 23.7 48 5 16
System comparison: Purchased
System capacity m3/hr Generator run hours Specific energy Total electricity kW Total electricity $/year Carbon emissions (tonnes)
Purchased System Details Component m3/hr Generator MAXI 112 42 Compressor Kw 22 Kaeser 1500 System Buffer L 10000 Storage Buffer L Activated carbon filter Drier & Oil detection Dewpoint dependant switching (option) Installation Total Capital Requirement
Rental System Details Component m3/hr Generator M752 28 Compressor kW 22 Buffer Telemetry Flowmeter Gas Mixer Installation Lease term (years) Annual Cost
Cost $71,000 $22,000 $4,000 $18,000 inc inc $3,000 $10,000 $128,000
42 2,167 1.00 91,000 $13,650 91
System capacity m3/hr Generator run hours Specific energy Total electricity kW Total electricity $/year Carbon emissions (tonnes)
CO2e Factors
28 3,250 1.00 91,000 $13,650 91
Electricity $/kW Hr
Annual Operating Costs Purchased System (1) Cost of capital (per year) Depreciation CAPEX Purchased System Back up gas cost Maintenance, system Maintenance, compressor Breakdown Mtc. Allowance Registrations, inspections etc Electricity cost purchased Overheads 10% Cost of CO2e OPEX Purchased system TOTAL ANNUAL REAL COST Real cost per M3
$9,600 $25,600 $35,200 $15,925 $8,000 $5,000 $1,500 $1,000 $13,650 $3,520 $2,103 $43,198 $78,398 $0.86
$/month $3,700 $0 $0 $0 $0 $0 $0 5 $44,400
Input Cells
System capacity: Rented
Today, at least an impartial analysis is required when considering rental or purchase of a generator. © Don Allen, 2012
Date
Rented / Leased System (2) Rent / Lease cost $44,400
Back up gas cost Maintenance, system Maintenance, compressor Breakdown Mtc. Allowance Registrations, inspections etc Electricity, rented system
$3,413 $0 $0 $0 $0 $13,650
Cost of CO2e OPEX Rental system TOTAL ANNUAL REAL COST Real cost per M3
$2,103 $19,166 $63,566 $0.70
SA VIC NSW WA SA VIC
1.005 1.35 0.98 0.93 $0.150
Financial Assumptions Interest rate % 7.5% Depreciation Yrs 5 Overheads % 10% Maint cost %/capital 10% Back up; purch. % 7.0%
Back up; rented. % Back up; Purch $/m3 Back up; rent $/m3
© Don Allen: Gas with Panache; 2013
3.0% $2.50 $1.25
10
N2 generation $2.25 ~32% Util ~65% Util
$2.00 $1.75
$1.50 e.g. A 28m3/hr system is 38% cheaper, utilised > 65%
$1.25 $1.00 $0.75 $0.50 $0.25 6M3/hr
14M3/hr
28M3/hr
42M3/hr
57M3/hr
86M3/hr
“Real” cost of generated N2. (Purchased system). 5 yr depreciation, capital @7.5%, electricity @ $0.15/kw, full system inc buffers etc, plus maintenance, back up & CO2e @ $23/t. 32% utilisation = ~2,200-2,800hrs/yr; 65% = 4,800-5,200hrs/yr. (allows for 10% system down time = ~7,900 hrs max)
© Don Allen: Gas with Panache; 2013
11
External Supply Easy; generally cheaper for all but large High purity (>99.5% to global standards) Supply dependant on storage size
Dependant on supply line CO2e issues (supply dependant) Monthly facility fees apply
Off Shore Gas/Oil plants (Vic, WA) Extraction from power/fertiliser/chemical Fermentation (breweries/distilleries) CO2 generation plants
Underground (natural) sources (Vic, SA)
© Don Allen: Gas with Panache; 2013
12
Partial Ferment Supply Recover only annual requirement Smaller plant requirement Purity can be set to suit (>99.5% may not be required) Known technology Choice of plants Maintenance is winery responsibility 8000 Power/refrigeration cost
CO2 (tonnes) from fermentation (depending on conditions)
6000
560 3,740
4000 Red figures 2000 are industry 0 typical
7,480
7.5
15
60
37
75
374
500t
1000t
5000t
120
280 1,870
748
10000t 25000t 50000t 100000t
© Don Allen: Gas with Panache; 2013
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Dual Ferment Tanks Collects fermentation CO2 in same tank as the ferment CO2 can be reused for selective extraction Pre fermentative skin contact &/or maceration possibilities Can be used as a “variable” capacity tank
Salcheto Winery, Italy
(Ganimede Fermenter); typical process; 1. Gap saturation 2. Opening by-pass (cap flooded) 3. Delestage 4. Leaching & Static Dripping Benefits; aroma, colour, fruit.
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Full Ferment Recovery Large plant requirement + storage Liquefaction required
Existing technology (breweries) High purity possible Economy based on high CO2 usage Maintenance, power, refrigeration costs to consider CO2 recovery / liquefaction was being used in the wine industry over 40 years ago (removed). Low pressure fermentation recovery/reuse is still being used (gas bag) System suppliers include; Haffmans; Wittemann, GEA, ASCO, Praxair, Greenlime etc. All have a grape fermentation questionnaire available to assist system sizing.
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Depends on: Whether you recover only the annual CO2 requirement or all available. Whether you only use it as a low pressure gas (e.g. a gas balloon) or as high pressure (liquid); The purity required (95%, 98%, 99%, >99.5% etc). Electricity cost and usage.
Full recovery will need to factor in a CO2 storage vessel, (can be an expensive proposition)!
Recovery is widely done with large, uniform production plants (e.g. breweries). It is also the subject of on-going research (UC Davis) The newest option, capture and sale for other products (sodium bicarbonate; calcium carbonate) is not considered here (nor is sequestration) although it may ultimately add to cost effectiveness (refer Chateau Smith Haut Lafitte, Bordeaux and Skyonic, USA).
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the broad overview Purchased Purchased CO2vsCost/Kg Manufactured (product+delivery+rental) CO2 Cost/Kg ) $3.00 $6.00
$2.50 $5.00 $2.00 $4.00 $1.50 $3.00
Cost/Kg Cost/Kg Mfg Cost/Kg#
$1.00 $2.00 $0.50 $1.00
$0.00 5T/Yr 10T/Yr 10T/Yr 15T/Yr 15T/Yr25T/Yr 25T/Yr50T/Yr 50T/Yr 100T/yr200T/Yr300T/yr400T/Yr500T/Yr 100T/yr 200T/Yr 300T/yr 400T/Yr 500T/Yr 3 year depreciation; capital cost 7.25%; $50K to $150K system cost; $35K to $100K vessel cost; electricity $0.15/kw; maintenance included; overheads 10%; 5% back up supply included.
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The ~800 volatile compounds lost during the must’s fermentation into wine represent a natural part of the winemaking process (part of the finesse?). The capturing and analysis of these compounds that are purged with the CO2 flow during the gas exhaust of the fermentation stage is the subject of considerable global study e.g: Colibaba et al, University of Ag. Sciences, Romania Macedo et al, University Nova de Lisboa Gomez et al, University of Cadiz Frederick Teye, Virginia Polytechnic Institute & State University AWRI Etc
Many are referring to the use of supercritical fluid extraction using CO2 (SFE). © Don Allen: Gas with Panache; 2013
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Supercritical CO2 is a fluid state of carbon dioxide where it is held at or above its critical temperature and pressure. In this form, the CO2 is not solid, liquid or gaseous. In this supercritical state it retains the high solvent potency of its liquid state, but benefits from the lower viscosity and higher diffusion of its gaseous form.
Separate phases (gas & liquid) meniscus easily observed Photos courtesy of Leeds University
With temperature increase the meniscus begins to diminish.
Increased temperature causes gas & liquid densities to become more similar. Meniscus less easily observed.
Critical temperature & pressure achieved, the liquid & gas phases are not visible. The “supercritical” phase shows both liquid & gas properties
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Basic phase diagram of CO2 Extraction Condensation Separation
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Evonik SFE System
The process consists of exposing starting material and CO2 to very precise pressure & temperature settings. The raw material is first loaded in a vessel, while temperature is brought to a minimum of 31C & pressure increased to 74 bars minimum. The supercritical CO2 flows through the material and targets and captures soluble aroma molecules. The accuracy can be adjusted by altering the pressure. The flow moves to a separator where pressure & temperature are brought back to conditions where the supercritical CO2 reverts back to its gaseous state. It can be recovered, stored and reliquefied. © Don Allen: Gas with Panache; 2013
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Perfect fit as a building block for compounded flavours in: Beverages: Primary flavour Dairy: Ice Cream; Yoghurt Bakery: Pastries; Fillings Confectionary Wine Vanilla Enhancement In Summary: As part of that overall target of achieving finesse, SFE at least needs to be fully researched and trialled in the wine industry, to assess the full possibilities.
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World Resources Institute; Greenhouse Gas Protocol
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CO2e + Product Estimate. CO2e cost $0.023
SUMMARY
Winery Name 1 0.5
Nitrogen Carbon Dioxide CURRENT SUPPLY
Total kg CO2e Nitrogen 32,890 Carbon Dioxide 35,550 N2 Generator 0 TOTAL 68,440 Total "Real" Cost/M3 inc CO2e
NSW VIC SA
Total CO2e Cost $756 $818 $0 $1,574 $3.047
Assumptions Used: CO2 volume case 1 (current) = 50t. N2 = 23,000m3. Total 49,650m3 of gas. Case 2 (proposed); CO2 volume = 35t. N2 = 32,000m3. Total 49,650m3 of gas “Gas Cost Analysis” tool
0.9 1.23 0.72
Total Gas Cost $62,200 $87,500 $0 $149,700 $151,274
© Don Allen
CO2e + Product Estimate. CO2e cost Nitrogen $0.023 Carbon Dioxide PROPOSED SUPPLY
SUMMARY
Total kg CO2e Nitrogen 0 Carbon Dioxide 24,885 N2 Generator 39,360 TOTAL 64,245 Total "Real" Cost/M3 inc CO2e
Winery Name 1 0.5
NSW VIC SA
Total CO2e Cost $0 $572 $905 $1,478 $2.294
0.9 1.23 0.72
Total Gas Cost $0 $70,250 $44,480 $114,730 $116,208
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winery gas needs analysis: by application & gas winery data: Name total tonnes total litres total cases location
1,000 680,000 75,556
gas # of lots of each → Main or sub operation↓ Racking, tank Ullage mgmt Deoxygenation Micro Ox. Pigging
gas argon co2 dry ice gas mix nitrogen oxygen so2
$42.00 $63,943.28 $0.094
labour rate TOTAL OPERATIONS COST TOTAL COST PER LITRE
Nitrogen Gas Mix Nitrogen Oxygen CO2
price / volume inputs Price M3 kg
red
white
spark.
15
15
5
15 7 2 10 2
15 15 15 2 12
5 0 0 0 0
total ops.
525 330 255 180 210 0
$5.50 $2.06 $5.91 $1.55 $1.05 $2.75
m3
kg
man hrs per yr
labour cost
unit gas cost
525 495 127.5 90 210 0
$22,050.00 $20,790.00 $5,355.00 $3,780.00 $8,820.00 $0.00
$1.05 $1.55 $1.05 $2.75 $2.06
cost per litre
$1.10 $3.15
$0.00
operations per year by wine style litres man hrs total litres gas/op per op
2500 1000 2000 150 1500
volume
1312500 330000 510000 27000 315000 0
1 1.5 0.5 0.5 1
gas cost
operation total cost
$1,378.13 $511.50 $535.50 $74.25 $648.90 $0.00
$23,428.13 $21,301.50 $5,890.50 $3,854.25 $9,468.90 $0.00
Tools: Gas Needs Survey/Analysis (by gas & operation)
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Gas represents from 1 to 3 cents/bottle; Gas labour is up to 5 cents or more.
Bottling
2% $0.20
Marketing
12% $0.84
Oak
13% $0.85
Winemaking
15% $0.95
Main focus today
Fruit
25% $2.00
Cartons
33% $2.10
Cost range: $6.95 - $9.00/bottle.
Putting all the elements together; science, technology, oxygen management, gas selection, gas equipment utilisation, quality & selective automation, lead to improved efficiency & versatility; helping the focus for premium wines.
Source: Deloitte Benchmarking Survey; Average of all winery sizes
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Examples Versatility /
Quality 4
Assets utilisation
5 3
1
Profitability
5 2 4
2. WA Winery; DI & inefficient mixed gas system. Result less CO2. more mixed gas, ~-20% on costs. 3. VIC Winery; DI only. Result less CO2, lower labour, efficiency up, even allowing for mixed gas capital.
2
1
Efficiency
1. SA Winery; DI & under utilised generator. Result: less CO2, better asset utilisation
Labour & operating costs 3
For a winning edge you need sufficient data to make a decision, based on the latest knowledge & technology, plus conformation to (new) market needs & regulations. The Roseworthy model?
4. NZ Winery; DI, CO2 gas, underutilised generator. Efficiency & profitability up. 5. NZ Winery. Di only. Efficiency & profitability target achieved.
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Thank you
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