Prosperity through resource efficiency A business necessity. Phil Coles Managing Director Brookes Avana

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1 Prosperity through resource efficiency A business necessity Phil Coles Managing Director Brookes Avana

2 Brookes Avana Who are we? Part of Premier Foods biggest UK Food Manufacturer History in South Wales dating back to 1890 grocers shop in Aberafan Production commenced in 1909 in Cardiff. Winner of London Bakery Awards 1910 R.F. Brookes acquired by Avana Group in 1960 s Trading with M&S since rd largest supplier of food 3 Manufacturing Sites in the UK, 2,200 employees, 220m t/o R.F. Brookes manufactures Indian and Italian ready meals, potato and vegetable accompaniments, Yorkshire puddings, pies, pastry slices and pizzas Avana Bakeries manufactures ambient cakes, celebration cakes, Christmas cakes, hot eating and cold eating desserts and puddings

3 What do we know to be true? The significant problems we face cannot be solved with the same level of thinking that created them A. Einstein on problem solving Our industry has been working for 50 years to get us to precisely where we are today. Use less, waste less Engaging our single most important asset our employees If we are to change things we need to change our thinking

4 Rogerstone Park 1 st closed loop Anaerobic Digestion Plant in UK Project in conjunction with Welsh Assembly, Wrap, Scottish and Southern Power. Principle contractors H2OK UK Ltd & EnviTec Biogas AG. Plant will process 10,000 tonnes of food waste per annum Process will produce circa 2.6m kwh of electricity ~ 6% of site electricity Electrical connection to grid Boxing Day 2010 Wet commissioning February for start up March 2011 Enables site to achieve zero waste to landfill

5 Anaerobic Digestion The Process R F B R O O K E S Food Wastes RF Brookes Wastes General Wastes Screened Effluent Solids Dewatered DAF Sludge Potato Peelings Waste Potatoes MECHANICAL SEPARATION Waste Slurry PASTEURISATION Pasteurised Slurry ANAEROBIC DIGESTION Biogas Plastics Heat CHP KEY FLOW OF MATERIAL FLOW OF ENERGY SUPPLIER/CUSTOMER Removed for Recycling HEAT ELECTRI- CITY R F B R O O K E S Digested Slurry Electricity DEWATERING Solid digestate Removed for Composting Recycled liquid effluent Liquid effluent Main Phases Separation to separate organic and inorganic waste Pasteurisation to make meat waste safe (comply with ABP reg.) Digestion reduce solids waste and generate biogas Energy Generation to convert biogas into electricity and heat Digestate handling prepare digestate for disposal

6 Digestion and Energy Generation Biogas (typically 60% CH 4 and 40% CO 2 ) Organic Waste Slurried waste plus anaerobic bacteria Gas Engine Generator Heat (typically hot water) (c. 40% efficiency) Electricity (c. 35% efficiency) Digestate Solid Digestate Contains indigestible solids plus bacterial mass Low odour, nutrient-rich Similar to compost Ideal for land spreading, soil conditioning etc Liquid Digestate Contains high levels of inorganic N (as NH 3 ) Ideal for use as liquid fertiliser If no market can be put to sewer

7 .why we need to do this The Future. - Forecasted electricity pricing : p/kwh 11.5 p/kwh +66% 14.5 p/kwh +110% - Potential plans to prohibit food and packaging from landfill - Landfill tax increasing by 8/t a year to 2013 what happens after 2013? - if we had done nothing then we would have seen 45k increase in costs each year.

8 Non-commodity charges of electricity are projected to rise sharply Non commodity charges electricity 6.00p 5.00p 4.00p p/kwh 3.00p 2.00p 1.00p 0.00p Year commencing April Fixed charges Levies T & D losses DUoS + TNUoS RO FIT Smart Meters CESP+ CERT CCS Source: Elexon, Ofgem, DECC analysis Utilyx Research

9 What else can we consider? Rainwater recycling 10m litres of rain a year falls onto roof of Rogerstone Park capture and use for non food applications Eg. yard cleaning, vehicle cleaning Solar energy 232,000kw/h if covered Rogerstone Park roof in photovoltaic cells challenge to support weight! Others Alternative technologies for same space eg. Kalwall to introduce natural light to factory.

10 Resource efficiency A commercial imperative Part of Premier Foods strategic plan Zero to landfill target is achievable Infrastructure that maximises resources to hand AD Plant Photovoltaic cells Wind energy Every employee engaged in delivering results Year on year reduction in utility cost Supports Premier Foods commitments:- Reduce energy consumption by 20% by 2020 Reduce CO 2 emissions by 20% by 2020 Zero waste to landfill by 2015

11 Some parting thoughts We have an economy that tells us it is cheaper to destroy earth in real time rather than renew, restore and sustain it. You can print money to bailout banks but you can t print life to bail out a planet Paul Hawken, May 2009 Reducing costs while limiting our impact on natural resources why wouldn t we do that?

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