Investment cycles and future efficiency management

Transcription

1 Investment cycles and future efficiency management Ener.CON Europe 2018 Berlin, , Dr. Albrecht Schaper 1

2 Nordzucker at a glance Political & Regulatory Framework Efficiency or Renewables Closing remark 2

3 Active throughout Europe Our locations Headquarters Liquid sugar plants Finland D 1 Braunschweig D 4 Nordstemmen Regional head office 16 Groß Munzel S 17 Arlöv Norway DK 2 Nordic Sugar, Copenhagen Sugar plants D 3 Clauen 4 Nordstemmen 5 Uelzen FIN 18 Porkkala Sugar plants non-consolidated minoritystakes CZ 19 Dobrovice 20 České Meziříčí Iceland Denmark Sweden Lithuania Estonia Latvia 6 Klein Wanzleben 7 Schladen DK 8 Nakskov 9 Nykøbing S 10 Örtofta Other locations DK 2 NP Sweet, Kopenhagen D 6 Bioethanol, Kl. Wanzleben B 21 Office Brüssel Ireland FIN 11 Säkylä LT 12 Kedainiai PL 13 Opalenica SK Chełmża Trenčianska Teplá Sales offices EE 22 Tallinn LV 23 Riga LT 24 Vilnius NO 25 Oslo Belgium Germany Czech Republic Poland Slovakia Refineries PL 14 Chełmża S 17 Arlöv IS 26 Reykjavík IE 27 Dublin GR 28 Athen Greece FIN 18 Porkkala 3

4 More than 175 years of Nordzucker Progress and change 1838 Start of sugar production at the Klein Wanzleben plant, Germany 1865 Foundation of many new companies and plants Expansion to Eastern Europe 2009 Acquisition of Nordic Sugar, market leader in Northern Europe Progress in sugar production, mergers of companies, closure of plants 1997 Foundation of Nordzucker AG by a merger of Northern German sugar producers Today Nordzucker is one of Europe s leading sugar producers and a modern company on a solid financial basis. Sustainable action becomes a part of the company s business activities even more. 4

5 Deeply rooted Shareholders structure of Nordzucker AG 83.8% Nordzucker Holding AG 11.1 % Union-Zucker Südhannover GmbH 5.1 % Direct interests Share capital: Million Euro Not listed on the stock exchange Large fraction of share-holders are beet growers 5

6 Productive The 2016/2017 campaign at a glance 3,236 Employees 84.3 mio. Euro Investments 15 mio. tonnes Of processed beets 2.5 mio. tonnes Sugar around 130,000 m 3 Bioethanol 6

7 More than 250 products Traditional Refined sugar White sugar Lump sugar Industrial liquid Liquid sugar Invert sugar syrup Fructose syrup Icing sugar Nib sugar Fructose Specialities Fondant Mixed syrup Fertilizer and fuel Carbolime Bioethanol Glaze Brown Sugar Raw sugar White candy sugar Brown candy sugar Jam sugar Feeds and molasses Bee feed Beet pulp (pellets) Molasses Vinasse 7

8 Our customers Food industry and retail < 20% > 80% Sugar for retail distributed by retailers Sugar for the food industry including leading manufacturers of bakery, confectionery and dairy products, jams, beverages and ice cream 8

9 Energy supply of a beet sugar factory CHP is the key to run the beet sugar production process Sugar beet contains 75% water and 17% sugar Sugar production is an energy intensive process water has to be evaporated Steam and power demand is at peak during the campaign from September until January The energy need is divided in approximately 80% heat and 20% power The production location in rural areas does not allow full power supply by the grid during To be independent form the grid CHP is used in sugar plants since more than 80 years Energy demand is kwh per ton of beet 9

10 t CO2/t beet German Sugar Industry - Efficiency first Efficiency is always the driver for improvements 0,16 0,14 0,12 0,10 0,08 0,06 0,04 0,02 More then 50% CO 2 emission reduction in the last 25 years in the German sugar industry Since 2010 efficiency projects with limited effects Impact on weather and raw material quality higher then any efficiency measure Limit of additional positive efficiency measures close to be reached Only fuel switch to renewables could save significant more CO 2 emissions 0,

11 Nordzucker at a glance Political & Regulatory Framework Efficiency or Renewables Closing remark 11

12 Political framework 2030 European climate & energy targets At least 40% cuts in overall greenhouse gas emissions (from 1990 levels) agreed including effort sharing decision for non ETS sectors Greenhouse gas emissions and removals from land use, land use-change and forestry (LULUCF) until 2030 At least 43% cut for the ETS sector (from 2005 level) - agreed At least 27% share for renewable energy - under negotiation At least 30% improvement in energy efficiency - under negotiation 2050 European outlook of 80-95% cut in greenhouse gas emissions to keep the global warming at minimum UN Paris agreement (1,5 C target) 12

13 European Regulatory framework Energy Efficiency Directive (EED) Renewable Energy Directive (RED) Emission Trading System (ETS) Binding annual greenhouse gas emission reduction for non-ets sectors (Proposal) Fuel Quality directive CO 2 emissions from light-duty vehicles CO 2 emission from light commercial vehicles and heavy duty vehicles BAT/BREF Conclusions with efficiency objectives.. 13

14 Political and regulatory framework Conclusions Most regulations are fostering energy efficiency efforts The renewable share is mainly based on the greening of the power sector, this will help only industries with a full energy supply from the grid to get greener The European target of 27% renewables share in 2030 cannot be reached anymore alone by the power sector Industries in the ETS system with own CHP installations will have to make higher efforts on Greenhouse Gas Emission reduction The ETS system will end up in 2050 close to zero new available emissions certificates Use of fossil energy will be probably strongly limited after 2050 Challenge for Industries with own CHP installations: What will be the primary energy source in

15 Nordzucker at a glance Political & Regulatory Framework Efficiency or Renewables Closing remark 15

16 Growth of business will act against energy saving How to cover the additional energy gap Business Growth rate Energy Consumption with business growth Additional energy gap to be closed Energy Consumption at stable business 16

17 Greenhouse Gas Emissions in the EU Developments since 1990 and towards % GHG Reduction target 95% GHG Reduction target Process Emissions Mio. Tons CO 2eq Mio.t/a Mio.t/a Source Eurostat 17

18 New issued CO2 Certificates European ETS System until Reduction rate ,74% Reduction rate ,2% Reduction rate ,6%* 8% of 2013 left in * In political discussion 18

19 Distribution of GHG Emissions per sector Changes between 1990 and 2015 Source Eurostat 19

20 Nordzucker at a glance Political & Regulatory Framework Efficiency or Renewables Closing remark 20

21 Investment in Efficiency and/or Renewables Business choices to reach political targets % GHGH reduction target Energy Efficiency Energy Process limitations Savings Growth Energy Type of fuel source 21

22 Developing an investment strategy beyond 2050 Energy efficiency alone will not lead to the climate goals Total energy demand reduction will not be sufficient for the achievement of the 80% climate target Industrial energy sources must be turned into renewables to achieve the 80% climate target Is Carbon Capture and Storage/Use a business model what is the climate impact of CCU Renewable Electricity from the grid can solve some of the energy demand in the industry Which primary energy source to be used for CHP installations: Electricity Biomethan Power to Liquid Power to Gas Solid Biomass Liquid biomass 22

23 Investment in Efficiency and/or Renewables Business choices to reach political targets Energy efficiency was the political and economic driver of the last 20 years Many efforts are done, but low hanging fruits on energy efficiency are largely lifted Can be the business (and related energy) growth more then compensated by energy savings Are all energy saving measure still profitable What is the future of industrial CHP installations How can a beet sugar factory in future be supplied with renewable energy Invitation to the discussion round this afternoon Investment cycles and future efficiency management How to develop an investment strategy beyond 2050 still reflecting a companies needs today? 23

24 Climate protection is certainly associated with costs, but it does not cost the world to save the planet for our children. Ottmar Edenhofer, PIK Potsdam 24

25 Thank you for your attention 25