Sustaining Our Operation in a Changing World. Michael Younis October

Transcription

1 Sustaining Our Operation in a Changing World Michael Younis October

2 Business Case Energy Consumption Cook Clean Refrigerate Cost Escalation 2 nd largest conversion cost 5.5% CAGR Environmental Legislation Inconvenient Truth CA and NJ GHG programs Regional GHG Initiative

3 Business Case : Customer Focus Customers Millennial Generation 91% likely to switch to a brand associated with a good cause 56% consider environmental impact a cause

4 Domestic Climate Leaders SmartWay Transport California Climate Action Registry Water Use 10% Energy Consumption Reduction CO 2 Advanced Purification System Wastewater Land Application Wind Power Solar Biomass

5 Baldwinsville Brewery Capacity: 8.6mm bbls maximum capacity or the equivalent of 118 million cases budgeted volume is 7.2 million bbls or the equivalent of 100 million cases. The brewery is operating near its effective capacity. Employment: Approximately 850 employees: The plant has never had a strike or any permanent layoffs during 25 years in operation. There 614 full time employees. The plant has additional employees who work on weekends when the full time employees choose to not work. We avoid any forced overtime work with this weekend staff.

6 Baldwinsville Brewery Since it s purchase in 1980 through the end of 2007, Anheuser Busch has made over $1.1 billion in Capital Investments at the Baldwinsville Brewery. Since 2003, capital investments have averaged $34.4 million/year. On average 75 to 80 building trade workers have been employed in construction work at the facility during The brewery and treatment plant are situated on 330 acres of land in the Town of Lysander, Onondaga County. The brewery and treatment plant have 1,600,000 sq. ft. of buildings.

7 Renewable Energy Project Cogeneration prohibited until January 1, 2012 Wood Fired Boiler Fuel Study Engineering and Economic Model 90% of Brewery Steam Demand 8 MW of electrical power Renewable Energy Credits Wood Supply Backhaul Opportunities SUNY ESF - Willow

8 WWTP KWh/Month1995 to 2008 Fine Bubble Aeration KWh Reduction 3,000,000 Biogas VFD KWh Reduction 349,720 Lighting Upgrade KWh reduction 542, Month JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC KWH

9 Wastewater Net Producer of Energy Energy Units Value Million BTU Electricity KWh 9,687,527 31,623 Natural Gas ft 3 5,926,805 6,371 Propane gal 7, Diesel Fuel gal Total MMBTU s 38,784 Generation of Biogas 1000 ft 3 273, ,410 Net Production Ratio Generated/Consumed 171,

10 May-08 Jul-08 Sep-08 Nov-08 Jan-08 Mar-08 Nov Biogas Production Biogas Production Biogas Jan-05 Mar-05 May-05 Jul-05 Sep-05 Nov-05 Jan-06 Mar-06 May-06 Jul-06 Sep-06 Nov-06 Jan-07 Mar-07 May-07 Jul-07 Sep-07 Nov-04 Sep-04 Jul-04 Mar-04 May-04 Jan-04 Nov-03 Sep-03 Jul-03 May-03 Jan-03 Mar-03 MMBTU

11 Biogas % of Total Fuel Biogas % of Total Fuel 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Jan- 03 Apr- 03 Jul- 03 Oct- 03 Jan- 04 Apr- 04 Jul- 04 Oct- 04 Jan- 05 Apr- 05 Jul- 05 Oct- 05 Jan- 06 Apr- 06 Jul- 06 Oct- 06 Jan- 07 Apr- 07 Jul- 07 Oct- 07 Jan- 08 Apr- 08 Jul- 08 Oct- 08

12 Process Hot Water All 150 o F Process Hot Water is either heated or pre-heated with reclaim heat. Condensing Heat Exchanger Upgrade 2004 Condensate Receiver Flash Steam Heat Recovery o F Water Sources % 90% % 70% 60% 50% 40% 30% 20% 10% 0% Q08 Wort Cooler HX Mash Cooler HX w/trim HX CHX w/trim HX Condensate Receiver HX Direct Steam Heated Water Jan-03 Mar-03 May-03 Jul-03 Sep-03 Nov-03 Jan-04 Mar-04 May-04 Jul-04 Sep-04 Nov-04 Jan-05 Mar-05 May-05 Jul-05 Sep-05 Nov-05 Jan-06 Mar-06 May-06 Jul-06 Sep-06 Nov-06 Jan-07 Mar-07 May-07 Jul-07 Sep-07 Nov-07 Jan-08

13 Off Peak Power Consumption Grains Unloading Some Process Cooling Finishing Modernization 2007 Average KW, 2006 Pattern and LBMP plus T&D 15,000 $ ,500 $ ,000 13,500 $ ,000 12,500 12,000 11,500 11,000 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21: Actual Average KW 2006 Pattern Average LBMP plus T&D 22:00 23:00 0:00 $60.00 $40.00 $20.00 $0.00

14 Lighting Upgrades 4,265 Fixtures throughout the brewery have been upgraded in the past three years 2,700 Fixtures being upgraded during the course of the next year LED Keg Cold Room Five Separate Projects EPAct05 Tax Incentives Wastewater Facilities Administration Building Ancillary Buildings Secondary Fermentation Area Warehouse / Powerhouse

15 HVAC Upgrade Hybrid System Variable Air Volume Terminal Reheat Annual Energy Savings 1.6 Million KWh 5,000 MMBTUs

16 Fuel Consumption 2010 Goal 10% Fuel Consumption Reduction 2005 Base Year Baldwinsville met that in May 2007 Biogas meets19.5 % of our fuel need 2010 Total Fuel Goal 1,400,000 1,200,000 1,000, , , , ,000 0 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08

17 Electrical Power Consumption 2010 Goal 10% Power Consumption Reduction 2005 Base Year Baldwinsville met that in May Goal Electricty 135, , , ,000 95,000 85,000 75,000 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08

18 Other Projects CO 2 Advanced Purification System Boiler Controls Upgrade Operations Heating Controls Upgrade Large Fans in Operations Chemical Sterilization Large Meeting Room Regenerative Heating of Adjusted Water Hybrid Security Vehicle Administration Building LEED EB

19 Employee Suggestion Program Utilities % of Employee Savings Total Participation 2004 $244, % 14.5% 2005 $631, % 14.5% 2006 $814, % 21.9% 2007 $840, % 24.9% 2008 YTD $854,000

20 Backup

21 Utilities Web Page from Baldwinsville Home Page

22 Estimated Utilities Cost

23 Estimated Utility Cost Note the other useful tools

24 The Spreadsheet that opens up.

25 California Climate Registry Annual Emissions Report Report Date: 05/05/ :47 am PT Contact: Audrey Bamberger Anheuser-Busch is one of the world's largest beer companies, and a leader in the entertainment and packaging industries. Anheuser-Busch operates in four segments: Domestic Beer, International Beer, Packaging, and Entertainment. The company's interests also span aluminum beverage container recycling, malt production, rice milling, real estate development, turf farming, label printing and transportation services. Anheuser-Busch is best known for the world's top two selling beers, Bud Light and Budweiser. Description: NAIC Code: Industry Type: Other One Busch Place SIC Code: Legend Blue = required Orange = optional St. Louis, MO United States Primary Calculation Methodologies: See attached documentation Reporting Scope: CA Reporting Year: 2006 CERTIFIED EMISSIONS INFORMATION Reporting Protocol: General Reporting Protocol, Version 2.2 (March 2007) Baseline Year (Indirect Emissions): Baseline Year (Direct Emissions):

26 California Climate Registry Direct Emissions CO2e CO2 CH4 N2O HFCs* PFCs* SF6 Unit Mobile Combustion 12, , *. 0* metric ton Stationary Combustion 137, , metric ton Process Emissions 20, , metric ton Fugitive Emissions TOTAL DIRECT 171, , metric ton * HFCs and PFCs are classes of greenhouse gases that include many compounds. These columns may reflect the total emissions of multiple HFC and PFC compounds, each of which has a unique Global Warming Potential (GWP). Emissions of each gas are first multiplied by their respective GWP and then summed in the total CO2- equivalent column. Indirect Emissions CO2e CO2 CH4 N2O Unit Purchased Electricity 147, , metric ton Purchased Steam Purchased Heating and Cooling TOTAL INDIRECT 147, , metric ton CERTIFICATION INFORMATION Certification Company: Tetra-Tech EM Inc. Page 1 of 2

27 California Climate Registry This report includes emissions from California sources Anheuser-Busch Companies, Inc. Annual Emissions Report Report Date: 05/05/ :47 am PT Basis of Certification Opinion: Tetra Tech EMI reviewed the greenhouse gas inventory submitted by Anheuser-Busch Companies, Inc. to the Registry through the Climate Action Registry s Reporting Online Tool. Based on this review, site visits, and independent evaluation of the data, Tetra Tech EMI concludes that the Anheuser-Busch inventory meets the reporting standards presented in the General Reporting Protocol (V2.2, March 2007). Tetra Tech EMI certifies this data without qualification, according to the General Certification Protocol (V2, July 2003). OPTIONAL INFORMATION Information in this section is voluntarily provided by the participant for public information, but is not required and thus, not certified under Registry protocols. Optional Emissions CO2e CO2 CH4 N2O HFCs* PFCs* SF6 Unit Other Indirect Emissions TOTAL OPTIONAL * HFCs and PFCs are classes of greenhouse gases that include many compounds. These columns may reflect the total emissions of multiple HFC and PFC compounds, each of which has a unique Global Warming Potential (GWP). Emissions of each gas are first multiplied by their respective GWP and then summed in the total CO2-equivalent column. Utility initiatives. Anheuser-Busch is committed to a comprehensive energy strategy which includes energy conservation and increasing our use of renewable fuels. We recently implemented a project to identify greenhouse gas impacts from capital projects. Carbon dioxide capture systems. Four of our breweries currently use carbon dioxide advanced purification systems. This technology captures and reuses carbon dioxide earlier in and throughout the fermentation process than would otherwise not be captured.

28 Transportation. Anheuser-Busch works with its wholesalers and suppliers to reduce truck miles and the subsequent environmental impact. Anheuser-Busch is committed to reducing transportation costs and associated environmental impacts and evaluating non-fossil-based fuels and advanced vehicle technologies for use in the transportation fleet. Voluntary partnerships. Anheuser-Busch is partnering with groups such as EPA (Climate Leaders, SmartWay Transport, WasteWise, Landfill Methane Outreach and Energy Star programs), the California Climate Action Registry, WestStart-CALSTART and The National Biodiesel Board to help us better understand and manage climate and renewable fuel issues. Emissions Management Programs: Emissions Efficiency metric: Emissions Reduction Projects: Anheuser-Busch Companies has a company-wide absolute goal of reducing greenhouse gas emissions 5 percent from a 2005 baseline by This goal is part of our commitment to Climate Leaders. Emissions Reduction Goals: Title Author Publish Date REFERENCE DOCUMENTS Page 2 of 2 This report includes emissions from California sources California Climate Registry