Transcript Energetics Presentation

Site / company name and logo here
Milling – Global trends presentation
Presenter/s names here
This is an AgriFood Skills Australia Ltd project developed in partnership with Energetics Pty
Ltd and funded by the Australian Government under the Clean Energy and Other Skills
Package
Context – resource use and cost
at this site (from Baseline tool)
Financial Year 2012 Energy Usage, Resources Cost and GHG Emissions
25,161 GJ
$755,148
8,317
58,934 GJ
$439,058
3,084
Energy
Cost
Natural Gas
Tonne CO2 -e
Electricity
Animal Feed Mill energy balance (GJ/y)
Cooling, 3,990, 5%
Milling, 4,151, 5%
Pressing, 7,233, 9%
Materials handling, 3,370, 4%
Lighting, 1,977, 2%
Domestic hot water, 1,179,
Other
1% (incl admin),
1,460, 2%
Air compressor,
1,100, 1%
Mixing,
1,050,
1%
Filtering
, 830,
1%
Boilers (Process heating),
57,755, 69%
Electrical Balance (GJ/y)
Air compressor, 1,100 GJ, 4%
Mixing, 1,050 GJ, 4%
Filtering, 830 GJ, 3%
Other (incl admin),
1,460 GJ, 6%
Pressing, 7,233 GJ, 29%
Lighting, 1,977 GJ, 8%
Materials handling, 3,370 GJ,
13%
Milling, 4,151 GJ, 17%
Cooling, 3,990 GJ, 16%
Natural Gas Balance (GJ/y)
Domestic hot water, 1,179,
2%
Boilers (Process heating),
57,755, 98%
Global trends for the Milling
sector
Ecosytem interactions
The ecosystem
Interaction
between water,
energy and
waste systems
Biophysical limits
Society
Technology
Water
Energy
systems systems
Waste
systems
Anthropogenic
stressors
• Population
increases
• Urbanisation
increases
Environmental
stressors
• Climate change
Service
provision /
product
• Resource use
•Land use
Encroachment
on biophysical
limits
© Energetics Pty Ltd , Holt et al
Major trends in the Milling Sector
• Growth
– Modest growth influenced by population growth
– Industrial use shows steady consumption to modest decline
• Market
– Changing consumer trends
– Continued strong exporter
– Consolidation of mills to larger capacity
Major trends in the Milling Sector
• Health
– Increased demand for perceived healthy products = typically lower
processing needs to produce multi-grain / wholemeal breads
• Energy, Sustainability Compliance & Labelling
– Energy Efficiency Opportunities, NGER
– ISO 50001 Energy Management System
– Carbon Disclosure Project/ Global Reporting Initiative
Market dominance by retailers
Drivers for action by business
• Cost
– Rising for energy, water, carbon
• Competitiveness
– Tighter margins, ‘green’ differentiation
• Compliance
– Increasing regulatory burden as Governments
seek to overcome market failures to act
• Community expectation
– brand reputation
• Customer
– Supply chain pressures
Redefining Business Success
• Not just financial measures
Social
• Engagement of a broader range
of stakeholders
• Mutual understanding of needs
• Understanding how your
business will fit into a new
Environmental
business paradigm
Economic
e.g. Redefining the value chain
Long-Term
Industry development is
driven by relative impacts of:
•Government Policy
•Industry Innovation
•Social Conscience
Compliant
Now
Timeframe of thinking
Sustainability maturity model
Denial
Low
Innovator
Proactive
Reactive
Organisations will develop at
different speeds and early
movers will create
sustainable competitive
advantage
Sophistication of thinking
about sustainability impacts
High
Australian trends, policy and
legislation
Australian Energy Trends
• The cost of energy in Australia has been at a significant discount
with respect to the rest of the world for the past decades. This is
changing for a range of reasons including:
– Carbon pricing mechanism has pushed energy prices up from July 2012
– Water shortages has limited capacity of some large centralised electricity
generation stations
• Tarong & Swanbank in QLD limited to 50% in 2007-2008
– LNG exports are causing natural gas prices to rise to world market levels
– Underinvestment in electricity networks
• Significant increases in grid electricity out to 2020
• Possibilities for distributed generation?
– Increasing scarcity and rising cost of petroleum
– Increased renewable energy targets (MRET)
• Land use decisions
• Competition by biofuel for arable land
SFMCA Energy Survey 2012
Project Report
The average electricity
use, irrespective of whether manufacturing mash or pellets, was
25.2kwhrs/tonne of feed manufactured.
Gas is 0.18GJ/tonne. Mash feed excluded, 0.23GJ/tonne of pelleted feed.
The average total
energy use is 0.26GJ/tonne of manufactured feed.
http://www.sfmca.com.au/info_centre/documents/464/SFMCA%20Energy%20Survey%20Report%202012.pdf
© 2013 Energetics Pty Ltd and AgriFood Skills Australia. All rights reserved.
Energy programs / initiatives
Improving
Energy Efficiency
EEO
Energy Efficiency Opportunity Act
Reducing
Greenhouse Gas &
Carbon Emissions
Increasing
Renewable Energy
Voluntary Greenhouse
reduction programs
Voluntary
Green Power
NGER
National Greenhouse & Energy Reporting Act
State Energy Efficiency programs
e.g. VEET, ESS, EREP,
Sustainability Advantage, ESAP,
SESP
Carbon Price and Trading
RET
Renewable energy targets (Large
RES and Small RES)
State renewable energy targets
Clean Energy Future initiatives for Business – e.g. Clean Technology Food and Foundries Investment
Program
Efficiency to underpin carbon abatement
to 2020
Energy efficiency is forecast by the International Energy Agency
to be the major source of carbon reductions out to 2020 in
industrialised countries
McKinsey’s MAC analysis agrees
McKinsey’s analysis shows energy efficiency to be among the most
cost effective carbon abatement measures
Australian Water Trends
• Cost increasing – across Australia
– Melbourne increase by an average of 20%
– Sydney Water increase by 25-34% by 2012
– Queensland – 30% increase of bulk water
• Water - yet to reflect true cost of provision
• Businesses
– Water cost increasing but let’s face it - water cost insignificant
– True cost
• Future trends
– Move to scarcity pricing models
– Diversity of water supplies and carbon prices will increase cost
– Invest into infrastructure - $30 billion dollars over next ten years
Water programs / initiatives
Improving
Water Efficiency
WEMPS
Water Efficiency Management
Plans
Water Management
Alternate Water Supplies
Catchment planning
Harvesting
Murray-Darling Basin plans
WaterMAP
Water Efficiency Plans
WSAP
Irrigation & water licensing
extraction, storage
Water re-use / recycling
Water Savings Action Plan
Water trading schemes
Desalination
Sustainability Advantage
NSW voluntary program
Stormwater management
Flow attenuation, mitigation
EREP
Environment and Resource
Efficiency Plans
Water discharge quality e.g. EPA license requirements and/or run-off
National Water Initiative ($12 bn)
Strategic planning
Where do you want to be?
•
•
•
•
What is important to you?
Where do you want to be?
How does the global situation impact you?
Are you prepared?
Strategy development process
External trends
(environmental
scanning)
Contextualising:
Internal impacts
Existing business plans
and initiatives
Current status
Risks and opportunities
Business goals
Development of strategic
questions
Potential status
Strategic
Guidelines
Policies
Plans
Programs
Program development
Identify business initiatives & plans
• Identify your current initiatives that your
business is doing / planning that align with
economic, social and environmental
performance goals
– List business initiatives
– Map onto Venn diagram
– Where do they fit?
(provides basis for understanding business approach,
defining your current approach, and starting to highlight
‘gaps’ in your systems that you may want to close)
For example
Social
Social
Committee
initiatives
Staff newsletter
Parental leave
policies
Community
clean up
campaigns
GHG reporting
Automation of
pH sampling of
wastewater
stream
Environmental
Green skills
development
Water / energy
efficiency target
Recycle
packaging
Master plan
process
Production
volume increase
EBIT target
Economic
Social
Environmental
Economic
Long-Term
Industry development is
driven by relative impacts of:
•Government Policy
•Industry Innovation
•Social Conscience
Compliant
Denial
Innovator
Proactive
Reactive
Organisations will develop at
different speeds and early
movers will create
sustainable competitive
advantage
Now
Timeframe of thinking
Given these plans, where are you
placed on climate / carbon?
Low
Sophistication of thinking
about climate change impacts
High
Long-Term
Industry development is
driven by relative impacts of:
•Government Policy
•Industry Innovation
•Social Conscience
Compliant
Denial
Innovator
Proactive
Reactive
Organisations will develop at
different speeds and early
movers will create
sustainable competitive
advantage
Now
Timeframe of thinking
Where do you want to be positioned
in the future?
Low
Sophistication of thinking
about climate change impacts
High
Consolidating the trends and your
plans and position….
• The previous activities define the endpoints
for:
– Business maturity
• This defines where you want to be against your competitors
– Positioning
• This defines how you want to achieve your goals
– Combining your review of trends, assessment of your
plans, position and desired future positioning, you are now
in a position to assess your risks and opportunities for
getting there, and to develop your vision and guiding
principles for your strategy development.