Les Aliments Glutino

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1 Les Aliments Glutino 2006 Greenhouse gas emission inventory 2055, boulevard Dagenais Ouest, Laval Latitude: Longitude: , avenue Francis-Hugues, Laval Latitude: 45 35' 57" N Longitude: 73 44' 43" W Presented to Mr Steven J. Singer President By Lagacé, Legault International 2015, rue Victoria St-Lambert (Québec) J4S 1H1 October 8 th, 2007

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3 Table of contents Chapter 1: Executive summary...4 Chapter 2: Data collection...5 Chapter 3: Company history...6 Chapter 4: Line of products...7 Chapter 5: Methodology and source identification Election of methodology and justification Uncertainty concept Generals Greenhouse gas identification Emission sources identification Food production Emission source (food cooking)...10 Figure 1: Process diagram Food distribution...13 Chapter 6: GHG emission estimation for Emissions related to food production...14 Table 1: GHG emission estimation per energy source (tco2 eq) Emissions related to food input (raw material transportation) and distribution (transportation)...15 Table 2: GHG emission estimation for hauling (total) and waterborne transportation GHG total emissions for production and hauling...17 Table 3: Total GHG emissions...17 Table 4: Total GHG emissions per type and per gas (t CO2 eq) Future perspective...18 Table 5: Future Emissions Quantification ( )...18 Chapter 7: GHG emission inventory tracking...19 Chapter 8: Education and Public Awareness on Climate Change...20 Chapter 9: Conclusion...21 Conclusion...21

4 Chapter 1: Executive summary Les Aliments Glutino is a Canadian company specialized in manufacturing gluten-free food intended for people forced to keep to a strict diet. A certain percentage of the population suffers from gluten intolerance. In the United States, the number of individuals suffering from gluten intolerance represents over three million people. The company has an annual average of 70 employees and manufactures over fifty different products. Further to its greenhouse gas inventory for 2006, the company wishes to subscribe to the current developed countries environmental trend and acknowledge its atmospheric emissions. To intensify its energy efficiency efforts concomitantly with a carbon offsets (VER or Verified Emission Reduction) purchase policy to obtain the carbon neutral status, the company wishes to join the companies that contribute to the control of global warming. This analysis main objective is to perform an inventory of the greenhouse gas emissions caused by the operations at the production plant (food production and distribution) at 3750, avenue Francis-Hugues as well as from the warehouse at 2055, boulevard Dagenais Ouest, both located in Laval. 4

5 Chapter 2: Data collection Collection of data was completed by gathering information from primary and secondary sources. The primary sources are: (1) direct interviews and a plant visits (2) documents and official references such as energy suppliers: Gaz Métropolitain and Hydro-Québec. The secondary sources were gathered from the company s Web site and available official data. Calculation methodologies were based on the requirements of ISO Specifications and guidelines pertaining to quantification and greenhouse gas emissions and phasing out. The suppliers technical data sheets (for gas used in the process) provided additional information that was necessary to accrue gas emissions related to the process. A list of reference documents was required from the client in order to properly prepare the plant visit and have the information necessary to the greenhouse gas emission quantification analysis. Plant visits were organized on February 21, 2007 with Mr David Miller. The visits included the plant located at 3750, avenue Francis-Hugues and the warehouse located at 2055, boulevard Dagenais Ouest, both located in Laval. Information was requested from the client concerning the transportation of raw material in order to quantify the emissions owned by the client. Emissions related to the transportation of products originating from Italy and Israel were quantified from the port in Italy and Israel (FOB). The client signed a contract with BFI Environnement for the management of residual material which are disposed of where appropriate and in accordance with the Law 1. Considering the transfer of property rights, emissions caused by the transportation and management of residual material belong to the waste management company and should not be accounted for in the inventory of emissions produced by Les Aliments Glutino. The client was required to supply a list of destinations where finished products are being delivered and emissions attributed to the client for the delivery of products were accrued. 1 Code de gestion des matières résiduelles du Québec

6 Chapter 3: Company history The company started in 1983 under the corporate name of Les Importations De Roma. In 1999 Messrs. Steven J. Singer and David Miller purchased the total company assets and continued to make the company grow. From 1999 to 2004 the company changed its corporate name to Les Aliments Glutino to market over 30 gluten-free food products. The gluten-free diet specialized market grew at a vigorous pace. The space required for manufacturing, storing and managing food production includes a 7000 square feet production plant located at 3750, avenue Francis-Hugues, a 3000 square feet warehouse at 2055, boulevard Dagenais Ouest and a 4000 square feet facility that houses administration offices located at the same address. In 2005, Glutino Foods USA purchased the Gluten-Free Pantry banner allowing them to greatly develop the American market and consolidate sales in the same specialized market. 6

7 Chapter 4: Line of products The line of products manufactured by Les Aliments Glutino includes unique and high quality products intended for the specific food market for people forced to keep to a strict diet. Les Aliments Glutino markets its products in Canada and United States. In order of importance, its products are: cake and pancake mixes, (imported from Italy and Israel), breads, bagels, muffins, pizzas, hamburger buns and bread sticks. Over 70% of the products manufactured in Laval are shipped to customers in Canada and United States via road transportation; sometimes products are stored in warehouses before they are shipped to the different customers. Some customers (individuals) purchase directly from the company using the direct order option on the company s Web site. These orders are usually small and light weighted, therefore they are shipped via express courier (UPS, Purolator, Dicom). Below are a few examples of the products manufactured by Les Aliments Glutino. Cake mix Cake mix Bagels Bread 7

8 Chapter 5: Methodology and source identification 5.1 Election of methodology and justification The election of a quantification methodology was analysed by examining every available methodologies such as the Quantification Guidance widely recognised as the literature published by the Intergovernmental Panel on Climate Change (IPCC) 2 as well as quantification protocols recognised by the Government of Canada. This information is available on the Government of Canada s Web site 3, in the Canada s GHG Inventory section, more precisely under GHG quantification-specific guidance manual. The Canadian inventory includes seven methodologies for the industrial sector but neither one clearly addresses food processing or food manufacturing in Canada. The decision process that leads to the adoption of a methodology includes two (2) stages. The methodology adopted for this document is the application of the ISO standard. We decided to accrue the emission sources according to the ISO standard part 1 for the following reasons: we have the supporting documents proving energy consumption information for the company s operations: natural gas, electricity, nitrogen and carbon dioxide and we can estimate de greenhouse gas by referring to section Election of quantification methodologies a) Calculation based on available data multiplied by emission factors. 4 2 IPCC (2006) IPCC Guidelines for National Greenhouse Gas Inventories, vol. 1, Chapter 3, Uncertainties 3 Environment Canada, GHG Quantification Guidance 4 ISO/FDIS , p.9 8

9 5.2 Uncertainty concept Uncertainty concept is associated to different values that we use to calculate greenhouse gas emissions. The following coefficients are used: natural gas - 1,9 x 10-3 tco 2 eq per cubic meter consumed; diesel - 2,76 x 10-3 tco 2 eq per litre consumed and electricity - 2,2 x 10-4 tco 2 eq per kwh consumed. To evaluate CO 2 emissions, which is the main gas associated to natural gas combustion, considering that there is a confidence interval of 95%, the uncertainty is estimated at (+ or -) 1% 5. On the other hand, uncertainty related to operation data collection is estimated at (+ or -) 3% 6. Uncertainty associated to CH 4 and N 2 O is greater, however the impact of these emissions is insignificant, less than 1%. In the comparative study that we used for the calculation of emissions related to transportation, our uncertainty ranges between 7.7% and 12.7%, which is equivalent to 3 and 5 litres of diesel in the winter and the summer based on a consumption value of 39.5 litres per 100 km 7 Uncertainty related to transportation is 10%, thereof 33 tco 2 eq on a total of 334 tco 2 eq which equals to 2,3% or 33 tco 2 eq out of 1433 tco 2 eq, total emissions. 5.3 Generals Greenhouse gases identified as being responsible for global warming are: carbon dioxide (CO 2 ), methane (CH 4 ), nitrous oxide (N 2 O), hydrofluorocarbon (HFC), perfluorocarbon (PFC) and sulphur hexafluoride (SF 6 ) Greenhouse gas identification The main gases used for the production of Les Aliments Glutino gluten-free food include: carbon dioxide (CO 2 ), methane (CH 4 ) and nitrous oxide (N 2 O). We found these gases were used during the production of the cooked food and more specifically during the cooking stage when natural gas ovens are being used. The vacuum bagging process also causes greenhouse gas emissions due to the use of CO IPCC Guidelines for National Greenhouse Gas inventories, volume 2, Energy, section IPCC Guidelines for National Greenhouse Gas inventories, volume 2, Energy, section Natural Resources Canada, Office of Energy Efficiency, FleetSmart Program, Fuel Efficiency Benchmarking in Canada s Trucking Industry, March ew=n 8 ISO , Section 2: Terms et definition, p 1 9

10 Carbon dioxide (CO 2 ), methane (CH 4 ) and nitrous oxide (N 2 O) were found during the food distribution process as they are related to the use of diesel fuel in the delivery trucks. 5.5 Emission sources identification The greenhouse gas emission sources inventory in this report is limited to the food production in the plant at 3750, avenue Francis-Hugues and the warehouse at 2055, boulevard Dagenais Ouest, both located in Laval. As the food is delivered by truck to different customers in Canada and United States, emissions related to transportation were considered in the calculation of the greenhouse gas emissions belonging to Les Aliments Glutino. 5.6 Food production Emission source (food cooking) Food cooking is a greenhouse gas emission source. Three natural gas ovens are used during this stage. Natural gas is a fossil fuel that produces greenhouse gas and emits 1,891 x 10-3 metric tonnes of CO 2 per cubic meter, 3,70 x 10-8 tco 2 eq of methane (CH 4 ) and 3.3 x 10-8 t CO 2 eq of nitrous oxide (N 2 O) 9. Les Aliments Glutino uses three convection ovens to manufacture different gluten-free products. The use of natural gas produces greenhouse gas but not the manufacturing process. Except for the ovens, plant, warehouse and office equipment use electricity as energy source. 9 Environment Canada, GHG Quantification Guidance, Annex

11 5.6.2 Potential emission source (bagging process) A vacuum bagging process is used for breads, bagels and bread sticks and the gas composition necessary to this process includes 20% nitrogen and 80% carbon dioxide. According to Mr Ronald Poirier of Solution Cryogénique 10 these gases are 99.9% pure. Therefore, it is a gas mixture composed of two gases of which one is CO 2, a greenhouse gas emitting gas and the other one is N 2 and represents 78% of the gas mixture. This mixture is the air that we breathe and is not considered harmful in the global warming context Emission source (distribution internal transportation) The gluten-free food is produced in the plant located at 3750, avenue Francis-Hugues while the building located at 2055, boulevard Dagenais Ouest is used for storage. Each day, the daily production is hauled and stored in the Dagenais Boulevard plant. According to management, there is only one daily trip. Emissions related to the hauling between the production plant and the warehouse is equal to 1,13 tco 2 eq annually. 10 Personal communication, March

12 Figure 1: Process diagram 1 st stage Ingredient receipt (At 3750, avenue Francis-Hugues) 2 nd stage Ingredient mixing 3 rd stage Food unit sizing (Breads, bagels, bread sticks, etc) 4 th stage Cooking (3 natural gas convection ovens) 5 th stage Cooling area 6 th stage Vacuum packaging (Nitrogen and carbon dioxide gases) 7 th stage Hauling (To 2055, boulevard Dagenais Ouest) 8 th stage Storage (At 2055, boulevard Dagenais Ouest) 12

13 5.7 Food distribution The food distribution is entirely done via road transportation, which is a greenhouse gas emission source due to the fact that carriers use diesel fuel in their trucks. The average number of litres used per truck is approximately 39.5 litres 11 and the diesel emission coefficient is 2.76 x 10-3 tco 2 eq per litre (2730 g/l CO 2, 0,14 g/l CH 4, 0,082 g/l N 2 O). ( 12 The food is distributed over a large territory in North America, mostly in United States and a smaller portion in Canada. We would also like to draw attention on the fact that 30% of orders are delivered via express courier (Purolator, UPS, Dicom) directly to customers homes (individuals). Considering that thousands of customers purchase these products and pay for delivery, emissions cannot be related to Les Aliments Glutino. 11 Natural Resources Canada, Office of Energy Efficiency, FleetSmart Program, Fuel Efficiency Benchmarking in Canada s Trucking Industry, March ew=n 12 Environment Canada, National Inventory Report , Mobile Combustion, Table A-12-7, p

14 Chapter 6: GHG emission estimation for Emissions related to food production Calculation of emissions related to food production includes the analysis of consumption data given on the natural gas and electricity bills. The nitrogen and carbon dioxide purchase invoices were also taken into consideration. We also have a gas mixture composed of two gases of which one is CO 2, a greenhouse gas emitting gas and the other one is N 2 and represents 78% of the gas mixture. This mixture is the air that we breathe and is not considered harmful in the global warming context. Base year The base year for this GHG inventory is When analysing emissions by energy source, we notice that electricity counts for 89% while natural gas counts for only 11% of total production emissions. For electricity, we used the Chicago Climate Exchange (CCX) emission factor, which is 2 x 10-4 tco 2 eq per kilowatt-hour. 13 Table 1: GHG emission estimation per energy source (tco2 eq) Year Natural gas Electricity Total tco 2 eq tco 2 eq tco 2 eq ,099 Quantification for electricity: t E CO2 eq = C el * EEF CO2.MA C el = Activity Data for electricity consumption (MWH) EEF CO2.MA = CO 2 Electricity Emission Factor CCX = 2 x 10-4 tco 2 eq / kwh 13 CCX Advisory , January 16, 2007, p.3 14

15 Quantification for natural gas (oven, kettle, fryer): t NG CO2 eq = C ng *( GEFCO2 + GEFCH4* GWPCH4 + GEFN2O * GWPN2O) C ng = Activity data for natural gas consumption (TJ) GEF CO2 = CO 2 Natural Gas Emission Factor = 56,1 tco2/tj 14 GEF CH4. = CH 4 Natural Gas Emission Factor = 0,001 tco 2 eq/tj 15 GEF.N2O = N 2 O Natural Gas Emission Factor = 0,1x 10-3 tco 2 eq/tj 16 GWP CH4 = Global Warming Potential for CH 4 = GWP N2O = Global Warming Potential for N 2 O = Les Aliments Glutino annual food production in 2006 is 1,489 tonnes. To calculate the production intensity, we took the emissions resulting from this production and we calculated a ratio per tonne of manufactured food. The intensity for production emissions is 0.74 tco 2 eq per production tonnage. 6.2 Emissions related to food input (raw material transportation) and distribution (transportation) Emissions related to inputs, such as food imported from Italy and Israel by boat, are calculated from the Port in Italy or Israel to the production plant and are equal to 44 tco 2 eq. The equation for water-borne transportation emissions is the following: t ROCO2 eq = CRO*(ROEFCO2 + ROEFCH4* GWPCH4 + ROEFN2O * GWPN2O) 19 C RO : Activity Consumption in TJ ROEF CO2 : Residual Oil Emission Factor 77,400 t / TJ ROEF CH4 : Residual Oil Emission Factor 0,007 t /TJ ROEF N2O : Residual Oil Emission Factor 0,002 t /TJ GWP CH4 = Global Warming Potential for CH 4 = 21 GWP N2O = Global Warming Potential for N 2 O = 310 Les Aliments Glutino provided us with a detailed list of products showing the number of kilograms delivered at each destination and the distance in kilometres between the plant and each destination. 14 Intergovernmental Panel on Climate Change (2006), Guidelines for National GHG Inventories (2006), volume 2. p 2.18 Table 2.3 Available at: 15 Intergovernmental Panel on Climate Change (2006), Guidelines for National GHG Inventories (2006), volume 2. p 2.18 Table 2.3 Available at: 16 Idem 17 National Standard of Canada, (2006), CSA-ISO :06, p.19. Available at: 18 Idem. 19 IPCC (2006) Guidelines for National Inventories, vol 2, ch.3, table Available at: 15

16 We estimated the number of full loads shipped to the different destinations and multiplied by the appropriate greenhouse gas emission factor that is 2.76 x 10 3 t CO 2 eq. per litre of diesel fuel consumed (see individual gas factors below) and we added one tonne of greenhouse gas generated by the hauling between the production plant and the warehouse and another tonne for the hauling in between the port of Montreal and the warehouse. Table 2: GHG emission estimation for hauling (total) and waterborne transportation (tco 2 eq) Year Hauling tco 2 eq Waterborne tco 2 eq Total Transportation tco 2 eq Quantification for diesel (freight): t D CO2 eq = C d *( DEFCO2 + DEFCH4* GWPCH4 + DEFN2O * GWPN2O) C d = Activity data diesel consumption (litres) DEF CO2 = CO 2 Diesel Emission Factor = 2,73 x10-3 tco2/litre 20 DEF CH4. = CH 4 Diesel Emission Factor = 0,133x10-6 tco 2 eq/litre 21 DEF.N2O = N 2 O Diesel Emission Factor = 0,4x10-6 tco 2 eq/litre 22 GWP CH4 = Global Warming Potential for CH 4 = 21 GWP N2O = Global Warming Potential for N 2 O = 310 Number of km ran x 2.76 x 10 3 tco 2 eq / litre of diesel x 39.5 litres per 100 km The table analysis shows that emissions resulting from hauling transportation represent 412 tco 2 eq annually, compared to production emissions that represent 1,099 tco 2 eq, which equals to 37%. Thus, distribution transportation intensity over the total production represents a ratio of 0.28 tco 2 eq per production tonnage. 20 Intergovernmental Panel on Climate Change (2006), Guidelines for National GHG Inventories (2006), volume 2. p 2.18 Table 2.3 Available at: 21 Intergovernmental Panel on Climate Change (2006), Guidelines for National GHG Inventories (2006), volume 2. p 2.18 Table 2.3 Available at: 22 Idem 16

17 6.3 GHG total emissions for production and hauling Table 4 shows the total emissions related to production and transportation. In the production stage, CO 2 emissions are related to energy consumption (natural gas and electricity). Table 3: Total GHG emissions (Production and transportation) (tco 2 eq) Year Production tco 2 eq Total Transportation tco 2 eq Total tco 2 eq Total Intensity t CO2/t production , ,04 Finally, total emissions are presented in the next table per type and per GHG gas: Total intensity is then 1,04 tonnes CO2 eq / tm production. Table 4: Total GHG emissions per type and per gas (t CO2 eq) Year: 2006 t CO 2 t CH 4 t N 2 O t CO 2 eq. Direct Emissions (production) Natural Gas 123 0,01 0, Water-borne Transportation 44 0,00 0, Diesel (raw material) 0,80 0, , Diesel (distribution) 406 0,021 0, Diesel (distribution internal) 1,12 0,0001 0, Indirect Energy Emissions Electricity 975 Total Inventory Emissions:

18 6.4 Future perspective Future emissions are based on production forecast for An increase of 10% is planned for the production in 2007 and 2008 and 5% for the subsequent years. Table 5: Future Emissions Quantification ( ) Production Total Emissions Intensity Year (tons/year) (t CO 2 eq.) (t CO 2 eq/meal units) , , , ,0445 Total

19 Chapter 7: GHG emission inventory tracking This report marks the beginning of the implementation of internal procedures allowing Les Aliments Glutino to gradually reduce its GHG emissions. Therefore, the company commits to establish a written procedure to document its GHG inventory tracking. 7.1 Inventory reassessment Les Aliments Glutino commits to conform to section 5.3.2, part 1 of the ISO standard, which requires that an inventory update be performed each year at a specific time. To meet this requirement, Les Aliments Glutino intends to update its GHG emission sources and sinks at year-end providing that one of the following situations occurs: a) the working area was altered, that is the physical settings were changed or other important changes related to production were implemented such as subcontracting part of the production; b) changes were made to the ownership and control of GHG emission sources or sinks such as the production being done elsewhere; c) the quantification methodology changed significantly and might affect the GHG calculation. Within the scope of this update, Les Aliments Glutino may also establish a written procedure allowing the implementation of a specific inventory method according to the above situations and automatically perform an update of its base year of Management of the inventory quality During the next months, Les Aliments Glutino will establish and document a written procedure to ensure compliance with the GHG inventory management requirements. To this effect, Les Aliments Glutino will spell out the methods that will be implemented to comply with such requirements according to paragraph 6.1 GHG Information Management and paragraph 6.2-Document retention and record management. 19

20 Chapter 8: Education and Public Awareness on Climate Change Glutino is planning to inform their customers and end users about their approach in addressing the climate change as they become Carbon Neutral. This status considered as being a great opportunity to educate and raise public awareness on climate change, they are planning to promote positive actions and solutions on these global issues through product advertising and packaging. 20

21 Chapter 9: Conclusion Conclusion We examined the emission sources relating to the company s operations and in accordance with the requirements of the ISO standard, part 1. Each stage was rigorously followed. For the purpose of the analysis, all the energy inputs (natural gas, electricity) were considered. We performed a methodology research that allowed us to consider the company s operations and quantify GHG emissions resulting from food production and distribution. Following a comprehensive GHG emissions inventory for Les Aliments Glutino, our conclusion is that this company emits significantly less greenhouse gas, 1555 tco 2 eq, than the 700 final emitters in Canada, that emit over tonnes per year. 21

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