Energy management, volatility and competitiveness, embracing sustainability, reducing carbon footprints, sourcing responsibly, benchmarking, partnering, involving key stakeholders and encouraging Operator engagement – our latest EMC GF2 Food, Beverage Bio and Ag Sector Networking Event with Campbell Company of Canada in Toronto opened the door for conversation on all of these issues and so much more!
Whenever a group of like-minded people gather together, good discussion, thought-provoking queries and shared experiences inevitably form part of the peer networking dynamics. And, for those on a similar journey, or with curiosity regarding a particular process or project, the opportunity to connect with others who can help you avoid pitfalls, share lessons learned and shed light on possible successful strategies as you move forward in your endeavours, could be worth its weight in gold particularly from a time savings and cost perspective. Seeing groups of people in earnest having conversation regarding the topic at hand, sharing contact information, and demonstrating an eagerness to learn more is more than wonderful to see. And, so it was, as we visited with Campbell Company of Canada exploring the latest in their Energy initiatives and in particular their Cogen (Combined Heat and Power) Journey to date.
EMC Energy Group:
Our morning began with an excellent overview by Scott McNeil-Smith, EMC’s Lead on our Energy Group Initiatives. Scott was able to succinctly illustrate the current state of the Energy Market today and elaborated on some of the reasons why industry needs to look closely at their energy strategy’s and what company’s, such as Campbell’s, are doing to mitigate costs in that regard. We discussed a number of issues including:
* The volatility over the last year and growing competitiveness burden manufacturers face
* Global Adjustment and the cost to cover energy efficiency (this will be levied on everyone’s bill)
* Cap and Trade – regulating carbon as a tax and the subsequent impact that will have on business
Scott shared how involvement in EMC’s Energy Group might help companies better prepare for market volatility and mentioned that one of the best tools was a GA Alert Service – which sends out an analysis and provides information for top peak days so that companies can strategize accordingly.
He also mentioned that when companies are looking at embracing a smaller carbon footprint – to remember that it is not only about understanding what you are consuming but how you are doing that. And, if a company happens to be on a Continuous Improvement or lean journey of any kind, it’s a perfect time to make sure that energy is part of it – especially energy and water. Think about optimizing how you use energy and build an active strategy around it.
Just some of the many ways EMC can help you succeed:
- Better manage energy procurement and reduce energy costs;
- Better know, understand and educate your team on strategies, to better manage energy consumption and integrate energy more effectively into your value streams;
- Maximize access to energy rebates and other incentives;
- Enable onsite energy sustainability, efficiencies and potential revenue generation through strategic opportunities
For more information on EMC’s Energy Group (www.emccanada.org/energy), please feel free to contact Scott at:
Director, Strategic Planning and Communications, EMC
President, Canadian Manufacturing Network
866-323-4362 - firstname.lastname@example.org
Cher Mereweather, the Executive Director with Provision Coalition was also invited to join us for this special session. Provision Coalition, which represents 13 industry associations and began in 2013, has developed a comprehensive Online Sustainability Portal that offers manufacturers the opportunity to monitor energy inputs. This subsequently enables the processor to seek means to reduce costs via tracking and analytical opportunities, benchmarking with others, utilizing guidelines, suggestions, resources etc. all specifically designed to help food and beverage manufacturers be more competitive in this regard.
Our Speaker shared a great video on Understanding Sustainability including comments and thoughts from manufacturers and retailers and looks at what sustainability means to them.
Cher reviewed why companies might want to embrace sustainable initiatives and outlined the pressures industry is under including sourcing responsibly, foreign competition, rising energy and input costs, etc. She shared an excellent slide from SAI 2013 that examined “Issues in the Food and Beverage Industry” clearly demonstrating the interconnectedness and need to embrace sustainability initiatives from farm to table.
The portal is focused on the principles of plan, do, check and act. There are approximately 100 questions which would take a participant about an hour to complete. Key elements of the portal include:
1. Getting Started (based on the Plan Do Check Act principles)
2. Self-Assessment Tools
3. KPI Scorecards
4. A Consultants/Vendor Database
5. Tools for Environmental Benchmarking
6. A Funding Database
7. Tools for Wastewater Management
8. A Comprehensive Library
We encourage participants to register online, populate information and tap into the incredible resources available at no charge to food and beverage manufacturers!
For more information please check out the Provision Coalition website at: www.provisioncoalition.com, or contact Cher directly at: email@example.com.
Campbell Company of Canada – Energy Management Best Practices
Our Host, Doug Dittburner, Chief Engineer and Manager of Power Services, welcomed everyone and provided some general context as background on Campbell's followed by an excellent overview of some of the fabulous initiatives they have undertaken at this facility including their strides to reduce the impact of the rising cost of energy through the implementation of their own CHP (Combined Heat and Power) Unit. It’s been a 30-year journey for Doug, understanding the merits of a CHP, and a 20-year one for Campbell’s and the result – which we also had an opportunity to tour – was and is pretty inspiring!
Campbell Company of Canada began production in November of 1930. Today this plant employs 400 non-union and 147 corporate employees. They manufacture almost 12.5 Million adjusted cases on an annual basis and interestingly, 2/3 of the ingredients used come from within a three-hour’s drive of the plant! They are the only Campbell's plant in Canada producing canned product and were the first plant utilizing aseptic cartons.
Doug and his Energy Team at Campbell's are very passionate about all things related to energy management and reducing their impact on the environment and work hard at generating ideas, motivating, engaging and promoting general awareness at plant level, with suppliers, stakeholders, Operators and the community at large. The company has made significant investments to meet energy management targets including IT, equipment, operational and maintenance practices, new technology and energy related training.
Our Host stated that Campbell’s has very clear sustainability and energy management goals established – the main objective quite simply is to cut their environmental footprint in half and recycle as much as absolutely possible. With those objectives in mind, the Energy Team at Campbell’s actively searches for opportunities that involve conservation of water, electricity, compressed air, natural gas and steam.
They have embraced numerous projects over the years in an effort to mitigate the volatility and rising cost of energy, while keeping their CSR goals and objectives in mind:
* Lighting (replaced metal halide to LED)
* Compressed Air
* Water Savings (reduced water use by 8.4% in one project)
* Process Integration Study
* CI Teams
In addition to specific projects, we also talked about the ongoing development and growth of their idea campaign, benefits of enviro-talks, cloud-based information systems, staying on track with conservation audit forms, the importance of partnership development (ie. Toronto Hydro), and accessing any type of funding available. And, we explored the subject of food waste, audits and waste haulers (of the half of the food wasted in North America, 18% occurs in the production process).
CHP (Combined Heat and Power) Unit:
After 2.5 years of planning, preparing, training and purchasing equipment, it was a pretty exciting moment for Campbell’s when they could see the fruition of their labours finally come to be with the implementation and start-up of their long-awaited Cogen unit. Without a doubt, there was considerable excitement when in November 2016 they began, by producing 91% of their power that first month!
The CHP unit clearly enables them to be more competitive and helped reduce the conversion cost on a per case of soup basis. It also resulted in reduction of lost time and product losses. Recognizing that competitors exist within the sector, with sister plants, and co-packagers – the need to save, is critical – and the CHP implementation presented a huge opportunity to be more competitive.
The total project cost was $12.3 Million. The results are tracking well above the $1.8 Million/Year in savings target. The thermal steam output is 90,000 lbs/hr at 175 psi.
The success of this initiative to reduce grid reliance can be attributed to the strategic approach Campbell’s took on their journey – researching, preparing, building partnerships, seeking incentive grants, aligning with good engineering partners, staying the course on project development, and keeping all parties involved informed.
Potential Roadblocks for Companies interested in Implementing a CHP:
CHP can help some manufactures remain competitive. One company mentioned that someone once said that manufactures are generally in the business of making money vs. saving money for large capital projects such as this – so one needs to clearly demonstrate the value proposition and seek buy-in from all key stakeholders. Potential roadblocks could be:
* Starting – time and resource availability
* Electrical interconnect – make sure you are in an area where you can have a CHP Unit
* Need the right people to drive it forward
* Getting buy-in at all levels particularly with key stakeholders
* When preparing a business case – consider absolutely every question that could be asked and follow that up with what might be worst case scenarios and subsequent responses
What are the Keys to Success?
Doug believes the keys to success lies in three areas:
1. Partnership approach (ie. Partnering with a strong engineering firm like CEM)
2. Key stakeholders at all levels
3. Operator Engagement
Campbell’s Corporate Sustainability 2020 Goals mean that this company will continue their pursuit of excellence in conservation and energy management. In true EMC fashion, Doug and his Energy Team are always willing to connect with others who are on similar journeys and we look forward to visiting with them again in the future to learn what’s new and exciting when it comes to becoming more sustainable, more energy efficient, and ultimately more competitive and responsible to our customers, suppliers and community at large.
Campbell Company of Canada 2020 CSR Goals:
- Cut environmental footprint in half
- Reduce energy needs and seek green energy sources
- All plants will meet once per month to benchmark and share
- Recycle 95%
- Incorporate sustainable packaging
- Promote more sustainable agriculture
You can read more on their CSR (Corporate Sustainability Responsibility) on their website at:
Very, very special thanks to our Guest Presenter and Host – Campbell Company of Canada – and to Provision Coalition and our EMC Energy Group for providing us with such an informative and thought provoking experience! All the best as always!
Bren de Leeuw, Director - EMC Food, Beverage, Bio & Ag Program Canada
Excellence In Manufacturing Consortium - firstname.lastname@example.org - 519-372-6009
EMC receives funding under Growing Forward 2, a federal-provincial-territorial initiative. However, the comments or opinions expressed on this blog are solely those of their respective contributors and do not necessarily represent the views of the Government of Canada or the Province of Ontario.