Key Areas of Action
Energy and Climate
1. Implementing Solar and Geothermal Processes
Energy efficiency and the switch to renewable energy sources are key challenges of the ecological transition and tackling climate change. A solution put forward by some practices is to develop and implement solar and geothermal processes in buildings. Additionally, training staff and raising awareness on energy efficiency allows behavioural change triggering a reduction in energy consumption.
In one example from France (case study 277 “French primary school opts for geothermal heating” in the Green Transition good practice database), a municipality renovated a school and took this opportunity to switch to geothermal energy. This enables heating the school in the winter and cooling the school in warmer times of the year.
In another example (case study 29 “Solar shading for energy efficient building”), the use of solar shading technology allows to control the amount of heat and natural light in a building, therefore allowing to manage energy use accordingly and improve a building’s energy performance. These technologies are part of the building envelope.
A third side of energy efficiency is behavioural, illustrated by the example of training of staff on energy efficiency practices (case study 83 “Training staff to improve energy efficiency”). For SMEs, this is an interesting practice, as the costs of training are balanced by operational costs savings, improved competitiveness, image, environment, and overall energy consumption. This includes savings on light use, heating, the use of smart energy saving devices, improved insulation or energy monitoring.
Impacts and benefits
Implementing solar and geothermal processes has several impacts on energy efficiency and carbon footprint. Indeed, regarding the switch to geothermal energy, this implies the use of a reversible system for all seasons.
In the specific case of the school building (case study 277 “French primary school opts for geothermal heating”) the annual capacity installed was of 130 kW, which delivers 70 MWh of renewable heating energy per year. The heat pump produces six times more energy for heating than it consumes in electricity. With these results, 85% of the heating needs of the building are covered by renewable energy. This system allows total energy cost savings of about 10% and reduces the annual CO2 emissions of the building by 24 tonnes. On the other hand, electricity consumption increased marginally (from 146 MWh to 150 MWh per annum).
As for shading (case study 29 “Solar shading for energy efficient building”) it delivers savings of up to 60 times the CO2 footprint of its installation over 20 years of the product’s life. The system maximises natural light in the building, keeps full colour rendering of transmitted light, reduces glare and filters daylight. This also limits the overconsumption in energy in terms of heating. In addition, when using a dynamic system of solar shading, savings on cooling energy are over 36% on average. This allows energy savings in terms of cooling, heating and artificial lighting.
Technical aspects and implementation
In terms of implementation, the example of the French school provides extensive details on how the system is set up. Geothermal vertical probes and wells were drilled to a depth of 100 metres. The latter draw energy from the ground and transmit it to a heat pump mounted above-ground. The heat pump produces water at a temperature of 45°C, used for the heating and cooling needs in the school.
As for the training of staff, suggested activities include:
- Creating a handbook guiding employees on the most effective energy efficiency measures that could be implemented;
- Organising mandatory training, workshops, and seminars to present new mechanisms in energy efficiency;
- Organising study tours and good practice visits for staff to enterprises where similar measures have been implemented;
- Presenting figures showing the company’s energy savings and efficiency so the benefits of training and staff efforts are clearly seen;
- Promoting the company and staff as energy efficient and responsible to improve its green image or credentials.
2. Sustainable Heating Systems
While all companies are facing the pressure of rising energy costs, heating expenses account for a significant portion of many businesses’ costs. By installing renewable and efficient heating systems, a company can reduce its energy consumption, thereby improve its cost-effectiveness and lower its carbon footprint. Additionally, a business can decrease the dependency on fossil resources.
There are different ways how to improve a heating system’s efficiency. Options refer either to the optimisation of the energy use or changing the source on which the energy production is based. For example, a company could install energy-efficient and automated thermostats as described in the case study 37 “Programmable heating systems to reduce energy use”. These programmable thermostats ensure that the heating and cooling are on at the right times and in the right places, and thus preventing energy waste. This in turn reduces the overall energy consumption and lowers the carbon footprint. Another solution to lower a company’s heating expenses is to increasingly rely on local, renewable, and efficient sources of energy. One interesting option for businesses that are located outside the city is to buy heat from a local ‘entrepreneur’ (case study 55 “Buying heat from 'entrepreneurs'”). Thereby, an entrepreneur or a company sells locally and renewably produced heat to a user for an agreed price. As the heat is typically from the entrepreneur’s own forest, locally produced sources or from wood byproducts, the use of fossil fuels is also reduced.
Moreover, installing ground, water or air sourced heat pumps are possibilities to provide low-carbon heating or cooling generated from the immediate surroundings (case study 56 “Ground and water source heat pumps” and case study 55 “Air source heat pumps”).
Impacts and benefits
Sustainable heating systems provide several benefits to businesses, such as reducing their energy consumption and CO2 emissions. As energy costs account for a significant portion of many businesses’ costs, they also generate a cost-reducing effect.
As mentioned above, installing programmable heating systems (case study 37 “Programmable heating systems to reduce energy use”) is a way of making heating in the workplace more effective and energy efficient. A programmable system that enables different temperatures to be controlled in different rooms and automates the heating according to operational hours, will ensure that energy is not wasted, resulting in improved cost-effectiveness. Moreover, it can also improve the thermal comfort, health, and wellbeing of the employees.
Similarly, installing heat pumps also reduces CO2 emissions and offers the benefits of reduced running and maintenance costs and overall energy bills. Although the initial investment costs are high, cost savings are estimated to be substantial as well. The specific example of installing an air sourced heating pump (case study 55 “Air source heat pumps”) shows that annual electricity costs could be reduced by 12.000 kWh. This corresponds to a reduction of 600 kg CO2. Ground and water source heat pumps (GSHP) (case study 56 “Ground and water source heat pumps”) are reported to reduce CO2 emissions from 25% to 70%. Most of these pumps are easy to run and are durable. A well-maintained heat pump system can last up to 20 years.
Furthermore, heat entrepreneurship (case study 55 “Buying heat from 'entrepreneurs'”) can generate several benefits, of which reducing CO2 emissions and replacing heat dependency on other resources such as oil, are two examples.
Overall, precise information and calculations regarding environmental and financial impact for all the options regarding sustainable heating systems need to be tailored to the characteristics of each installation.
Technical aspects and implementation
Regarding the technical aspects of heat entrepreneurship, the heat from heat entrepreneurs is conveyed from the heating plant to the customer by a short pipeline that connects the two, or is connected to a larger heating network. The heat is produced from wood or other biofuels, and generally stems from the entrepreneur’s own forest, locally procured sources or various wood by-products, such as wood chips.
Concerning the use and installation of heat pumps, those fall into two broadly deployable categories:
Air source heat pumps absorb heat from the outside air that can subsequently be used to warm radiators, air convectors or water. The ambient heat is absorbed at low temperatures into a fluid that passes through a compressor and generates higher-temperature heat.
Ground- and water-source heat pumps (GSHP) use the stable temperature of the ground as a source to heat or to cool, using water as a medium. They are most efficient with low-temperature heating systems, such as underfloor and wall heating or low-temperature cooling systems such as chilled beams.
Conditions and solutions, regarding heat pumps, vary from site to site. Assessing site feasibility and comparing the different options are important steps to secure the cost effectiveness of installing a heat pump system.
3. Greening Heat Generation
Most industry-grade process heating systems are based on steam or hot water from boilers that today mainly burn fossil fuels like oil, gas and coal, or use electricity generated by various fossil and non-fossil sources. Tapping into renewable sources to heat buildings, support industrial processes or meet any other heating need, is one solution to lower companies’ energy costs, to tackle climate change and to increase their energy security.
In particular, geothermal energy (case study 80 “Geothermal energy for heat generation”), solar energy (case study 81 “Integration of solar energy in the company heat generation”) and other renewable energies (case study 111 “Integrate renewable energies in the company heat generation”) represent good options when it comes to greening the heat generation of a business.
Impacts and benefits
Renewable and energy efficient resources used for heat generation offer major advantages for companies, for example, they are in many cases cheaper, more secure and better for the environment. They can improve the competitiveness of companies, lower the carbon footprint and decrease the dependency on fossil fuels.
As mentioned, geothermal energy is one of those sources. Geothermal energy (case study 80 “Geothermal energy for heat generation”) is in principle inexhaustible and harvesting it for heating needs could increase energy autonomy, efficiency, and cost-effectiveness. As projected by the International Energy Agency (IEA), there is a huge untapped potential, which could account for up to 3.9% of global heat production by 2050.
Solar energy (case study 81 “Integration of solar energy in the company heat generation”) can also be used as a source for heat generation. Solar process heating systems can supply up to 20-30% of the heating demands of an average plant. Combining low-temperature solar thermal technologies with other heat sources and storage systems, would guarantee a steady heat supply and reduce energy expenses by 15-30%. While the initial investment is high and payback time largely depends on the geographic location and the type of solar resource, it is envisioned that the cost of energy through solar heat technologies will continue to decline to 2-6 euro cents per kWh in 2030 across the EU.
Integrating renewable energies in a company’s heat production as described in the third case study could also benefit a company’s CSR reputation, if communicated well. This can translate into marketing opportunities, increased sales and better business valuation.
Technical aspects and implementation
Company heat generation can rely on the various renewable energies, alone or in combination. Costs and benefits depend largely on the type, size and complexity of the installed renewable heating system, the funding and the overall production system.
In terms of geothermal energy, it is ground source heat pumps that are the most widely (49% of total geothermal heat) used application using geothermal energy for heating.
Solar process-heat systems can be relatively easily integrated into the industrial process. Solar thermal can be backed up by other heat sources and combined with storage systems. The case study 81 “Integration of solar energy in the company heat generation” outlines the following ways how solar thermal systems can be integrated into industrial processes:
- Direct heating of a circulating fluid (e.g. feed-water, return of closed circuits, air preheating)
- In processes with low-temperature requirements
- Direct integration of solar heating into fossil-fuelled industrial steam boilers.
4. Achieving Energy Savings
In general, energy use represents an integral part of running a business which ranges from lights and air conditioning to running machinery and powering production lines. Overall, a company’s energy consumption can often be optimised leading to several advantages, such as cost savings and an improved environmental performance.
Following a comprehensive environmental and carbon review, a company can carry out a series of changes to optimise its energy, production and waste processes. Measures can include heat recovery (case study 276 “Clever energy-saving systems pay off in French factory“), using sun protection foils (case study 70 “Sun protection foils and other measures save energy”), renewable energy options, waste material use (case study 286 “Food-processing company achieves dramatic energy savings” or simple measures like switching to LED lamps (case study 242 “Ice-cream maker switches to LED lamps and boosts yearly savings”) or implementing compressed air systems (case study 299 “Compressed-air system saves electricity in a German brewery”).
Impacts and benefits
For example, in the city of Burgas, Bulgaria, both a four-star hotel (case study 70 “Sun protection foils and other measures save energy”) and a bakery (case study 262 “Energy and water-saving in Bulgarian bakery”) managed to lower their energy consumption and generate cost savings. Among the measures to improve sustainability were optimisation of lighting in the hotel, installation of water-saving devices in sinks and showers, sun protection foil for the windows in the restaurant. Informing guests to save water and electricity would save up to 30% of energy and water consumption.
In addition, energy savings strongly connect to CO2-emission reductions. Due to the clever retention and recirculation system, a semolina factory in France (case study 276 “Clever energy-saving systems pay off in French factory”) has been able to reduce energy consumption by around 20 % and therewith the equivalent of 195 tonnes of oil and 467 tonnes of CO2 each year. The Westphalian brewery in Paderborn, Germany redefined and optimised its compressed-air system and achieved 45-50% less energy, 300 tonnes less CO2 emissions while saving 55.000 EUR annually in costs.
Technical aspects and implementation
In terms of implementation, the case study on clever energy-saving systems in the French semolina factory provides (case study 276 “Clever energy-saving systems pay off in French factory”) detailed technical information.
Moreover, experts in corporate social responsibility (CSR), energy auditors and carbon footprint analysis can be used to identify energy sources and energy consumers, monitor and analyse material flows, energy consumption and waste production; and eventually map a track options for energy and material savings.
5. Energy Efficient Businesses
Energy is a resource which is often an expensive input for businesses and depending on the source often has negative environmental impacts.
By drawing up energy plans, companies are encouraged to take a critical look at their energy consumption and see how they can save energy or implement technologies that improve their energy efficiency. Sometimes energy intensive machines can be replaced by newer technologies, e.g. light bulbs can be changed (case study 238 “Energy-efficient refrigeration saves money at German meat-processing plant”), or the source can be changed, e.g., switching from non-renewable resources to solar or biogas (case study 151 “Pioneering French company invests in new green energy”).
By doing so, business leaders and organisations become aware of options and savings that are possible with very little investment or effort. Rising energy costs mean that businesses will soon have to consider these solutions to remain competitive and successful.
Impacts and benefits
Various companies have implemented (pilot) projects that showed that, after monitoring and analysing their energy consumption and investing in new technologies, they were able to improve their energy efficiency significantly and reduce overall consumption and carbon footprint.
A French producer of fresh fruits (case study 151 “Pioneering French company invests in new green energy”) with an output of around 20.000 tonnes per year, was able to transform its 1.800 tonnes of fruit waste to energy by installing an anaerobic digestion unit. The biogas generated from the waste material fires a 100 kWe co-generation engine that produces 1.7 MWh of electricity per year, which is subsequently sold and fed back into the grid. In addition to biogas, the unit also produces organic matter that can be reused as fertiliser; 300 tonnes are produced each year which is re-used as fertiliser by local fruit farms.
Another project, led by a producer of pork and beef (case study 238 “Energy-efficient refrigeration saves money at German meat-processing plant”), discovered after a detailed audit of power consumption, operating times and nominal cooling capacity, that more then 65% of the total electricity consumption went to providing refrigeration. the company chose to change its refrigerator system, costing around 200.000 EUR, but reducing its energy consumption by around 55% and cutting annual CO2 emissions by 345 tonnes.
Technical aspects and implementation
Areas of improvement can be identified through an energy audit. Implementing targeted measures or investing in new technologies can significantly improve the energy efficiency in these areas.
The French fruit producer, for example, identified that during packaging operations, it was forced to discard nearly 1.800 tonnes a year of non-compliant fruits; too small, too big, deformed or rotten. The company started looking into building an anaerobic 'digestion unit' on-site to treat fruit waste. After carrying out a feasibility study, the unit was built and put into service. Of the roughly 2.700 tonnes of fruit waste going into the unit annually, two-thirds comes from its own plant (1.800 tonnes) and one-third is supplied by neighbouring fruit stations (900 tonnes). The waste is pitted, crushed, and then treated in a 400 m³ liquefier before being transferred to a 55 m³ digester, where the material is heated and further broken down, producing biogas.
To reduce its energy consumption by 55%, the German pork and beef producer prompted a series of measures, headlined by an overhaul of the company's whole approach to refrigeration. Individual refrigeration units were replaced by a network controlled by frequency converters according to the needs of various preparation rooms. This 'composite' system is managed and optimised in several ways:
- Reliability and efficiency: compressors have guaranteed power reserves to prevent total shutdown in the event of a section failure
- Improved operations: new controls with electronic expansion valves boost the operational characteristics of the system
- Conversion: frequency converters for the fan capacitors in the cooling units reduce energy consumption
- Waste: waste heat from the combined system is used for hot-water production during production
6. Reducing Carbon Footprint
Carbon emissions are impacting the environment negatively, requiring actions taken by the industry. The carbon footprint is a concept that measures the impact a certain activity has on the environment. More and more businesses start measuring their carbon footprint to identify high emission processes. Especially energy intensive businesses have usually a large carbon footprint, but they also have the chance to lower their emissions significantly. Nevertheless, it is possible for all kinds of businesses, small scale and large scale, to change towards environmentally friendly business models, reducing the carbon footprint. Reducing business travel and switching to online formats instead (case study 243 “More web-conferences cut CO2 emissions and costs for control technology firm”) is one example to cut emissions, act more sustainably and meanwhile save money.
Switching from fossil fuels to bioenergy lowers carbon emissions significantly for energy intensive processes. The price of using fossil fuels in industrial processes is extremely likely to increase in the years to come due to the limited nature of resources (specifically: oil and gas) and rising price of ETS allowances. Businesses that look ahead and actively manage their ecological risks, costs and opportunities can gain a strong competitive advantage and reduce their carbon footprint at the same time.
Carbon footprint calculation schemes, encouraging smart working or switching from fossil fuel based boilers to biomass boilers are effective ways of lowering CO2 emissions, meanwhile improving market foresight, strategic direction and leading to better performance. It also helps companies to identify strategies for innovative and competitive products and services to meet future demand.
Impacts and benefits
Several measures can be implemented to lower the carbon footprint of industrial, logistical, or commercial processes.
Footprint monitoring, for example, which monitors and analyses a companies’ energy, water and material consumption, can address inefficiencies and reduce resource use.
After carrying out a carbon footprint analysis, a French cannery company (case study 149 “Fine-tuned energy management in French cannery”) found ways to optimise their energy management through better metering and monitoring indicators. The project helped the company to reduce steam consumption related to sterilisation of vegetable by 36% or 2.085 Mwh CHP a year.
Two EU-funded projects where a biomass boiler and energy recovery equipment were installed also showed promising results in cutting annual CO2 emissions. A cheese company (case study 155 “Biomass boiler cuts CO2 emissions at French cheese factory dairy”) switched from oil-based boilers to new wood-fired biomass boilers, coupled with a double-path economiser to recover energy, reducing annual CO2 emissions by 7.000 tonnes and energy bills by 40%. The switch also led to the creation of a full-time job, thus supporting the local economy.
Another plant (case study 154 “Major agri-food producer reduces annual CO2 emissions in France”) switched to biomass energy and showed similar end results: a reduction of 6.5000 tonnes of CO2 a year, coupled with cost savings of 40% due to lower energy bills.
Technical aspects and implementation
When a company wants to start using the footprint calculation, it needs to understand and define what exactly should be included. Typically, this means emissions from all direct activities across a company, including energy used in buildings, logistics, and company-owned vehicles (‘scope 1’ and ‘scope 2’ emissions). It can also measure indirect emissions from activities outside an organisation’s own operations; the value chain and all materials (‘scope 3’ emissions). By breaking down emissions into sources, a company can spotlight areas for improvement and use this to identify risks and opportunities.
In the example of the project lead by the French cannery company (case study 149 “Fine-tuned energy management in French cannery”), the company monitored its energy consumption through a ratio in kWh per tonne of finished product. It subsequently distributed this ratio by type of operation (bleaching, sterilisation, etc.), meters were installed to monitor the water and steam consumption of plant sterilisers. With the produced data, the company could compare the sterilisers’ performance with optimisation models and to correct the drifts. Similar technologies can be applied to other processes, new systems, and various resources, such as compressed air, chilled water, or electricity.
A company needs to select the appropriate emission factor for each source, such as how many tonnes of CO2 are emitted over a specific period (per year/month). Each organisation is different and therefore has varying material emission sources (the largest or most significant to business operations). A small office-based company’s energy use may be dwarfed by its business travel, for example. After collecting all data, choose a methodology for the footprint that is most relevant to the organisation and its ambitions; a basic report using a footprint calculator spreadsheet or an internationally recognised standard. Many footprint calculators are freely available and relatively simple to use, which means payback time is minimal.