A Guide for Distillers

Transcription

1 Future Energy Opportunities: A Guide for Distillers Published by: The Scotch Whisky Association 20 Atholl Crescent Edinburgh EH3 8HF Tel: info@swa.org.uk September 2012 The text of this guide was written by WSP on behalf of the SWA and Carbon Trust.

2 Introduction The Scotch Whisky industry plays a significant role in the Scottish and UK economies. The aspiration is to stay at the forefront of the drive to deliver long term economic, environmental and social sustainability. Scotland has one of the most ambitious renewable energy strategies in the world, aiming to produce the equivalent of 100% of electricity needs from renewable sources by 2020 with renewables targeted to provide 11% of Scotland s heat demand by The Scotch Whisky industry has set its own, equally tough, environmental targets and by 2020, 20% of the industry s energy should come from non-fossil fuel sources, rising to 80% by The Scotch Whisky industry s determination to make these goals a reality is impressive with exceptional investment going into green energy and other renewable projects at a time of some economic uncertainty. Renewables are already a reality for many of the Scotch Whisky Association s members. A number of sites have demonstrated how low and zero carbon energy for the sector can be delivered. William Grant & Sons anaerobic reactor at their grain and malt distilleries in Girvan, Ayrshire and Diageo s anaerobic digester (AD) and biomass conversion at Cameronbridge Distillery in Fife remain the biggest investments in renewables in Scotland outside of the utilities sector. The North British Distillery in Edinburgh is using AD to fire its boilers and the collaboration of energy and distillery companies that form Helius CoRDe (Combination of Rothes Distillers Ltd) in Morayshire will convert distillery by-product into 7.2 MW of energy enough to power a town the size of Elgin. Diageo s new Roseisle Distillery in Morayshire uses biomass and AD to provide heat and power to the distillery and also the heat to adjacent maltings. These commendable projects are all of scale. Significant developments on a smaller scale on the Isle of Islay are underway. The challenge is for more of these smaller and medium-sized and distilleries to identify where their renewables potential lies. With this publication, the Association is striving to help make the Scotch whisky industry s non-fossil fuel target a reality for smaller and medium sized distilling facilities, though the principles set out here will be applicable to companies of all sizes. This guide offers an introduction to the future energy options and opportunities from established technologies available to distillers both in their distillery and ancillary sites, such as packaging facilities and warehousing. It provides an overview of each available technology, its technical characteristics, how it works, key conditions, planning, relative costs, feasibility for distilleries, case studies and real examples. It also offers information about technologies, some of which are at the forefront of cutting edge innovation. It aims to demystify technologies and identify the relevance of each type to the Scotch whisky industry. This report can be used as a stand-alone guide but it also complements the online Distillers Renewables Tool which is freely available to all. That tool provides a specific overview of how each of the technologies works. It will allow individual sites to be assessed in terms of energy yield and analyse the commercial business case. The industry s energy goals are demanding but companies are on track to meet the challenge. This publication and the associated tool help our Association members and others in the industry focus their efforts appropriately. We would like to thank Carbon Trust Scotland for its financial support in developing this guidance, WSP Environmental for drafting the report and the following companies who assisted in the development and testing of the Distillers Renewables Tool: Beam Inc; Chivas Brothers, Diageo, Edrington, Glenmorangie and Morrison Bowmore Distillers Paul Wedgewood Manager, Carbon Trust Scotland Julie Hesketh-Laird Director of Operational and Technical Affairs Scotch Whisky Association 1 Future Energy Opportunities: A Guide for Distillers

3 CONTENTS Introduction 1 SECTION 01 Natural Resources & Current Distilling Energy Mix 3 SECTION 02 Available Low & Zero Carbon Technologies 6 Wind Power 7 Solar PV 12 Solar Thermal 19 Anaerobic Digestion 23 Biomass Heating 29 Biomass CHP 33 Hydroelectric 37 Ground Source Heat Pumps 41 SECTION 03 Alternative Renewable Technologies 45 Wave and Tidal 45 Hydrogen/Fuel Cells 49 2 Future Energy Opportunities: A Guide for Distillers

4 01 Natural Resources and Current Distilling Energy Mix When reviewing renewable technologies for a particular site or region it is important to have a clear picture of the existing local conditions starting with the availability and accessibility of the resources available for energy generation. Key elements to consider are: Availability of oil and natural gas or other fossil fuels Grid connection and capacity Established renewable installations or district heating network Natural energy resources (sun, wind, draff and other by-products etc.). The energy mix in Scotland Power in Scotland is supplied by a combination of large base-load plants, including nuclear, coal and gas-fired units, hydro generation, both conventional hydro and pumped storage, and a number of other renewable sources. The energy mix in Scotland is composed as shown below. Scotland generates over 25% of its energy from renewable sources, and with the current level of projects under construction and consented this would provide around 50% of Scotland s electricity. Renewable heating has doubled since July Scotland has set a challenging target of meeting 100% of the country s electricity demand equivalent from renewables by 2020 and 30% overall energy demand, meaning 11% of heat should come from renewable sources. Nuclear 20% Coal 30% Other Renewable 17% Gas & Oil 16% Hydroelectric 17% The Electricity Generation Mix in Scotland, Routemap for Renewable Energy in Scotland, Scottish Government, July Future Energy Opportunities: A Guide for Distillers

5 Overview of energy supply in distilleries Both heat and power are required in distilleries. Heat Gas is used directly for heating and oil typically for process heating, firing the stills or space heating. Natural gas has been the fuel of choice to raise steam. Where distilleries are not connected to the gas grid it is normal practice to use heavy or medium fuel oil to generate steam which is the main source of energy required for the whisky production process, from malting to distilling. Usually, space heating demand is low and mainly for site offices and visitor centres. This can be provided by electric heaters and sometimes heat pumps or off-grid gas/oil boilers. Power Although heat remains the principal type of energy required in distilleries, electricity, mainly used for lighting, pumps and fans, represents 10-20% of the total energy needs. Electricity from the national grid is normally used to power distilleries. Some distilleries are buying their electricity from green energy suppliers where the electricity is typically generated from renewable sources, such as wind farms. Natural Resources Solar Energy Solar radiation is one of the most versatile and plentiful sources of renewable energy at our disposal. In one year each square metre in the UK on average receives about 950 kwh of solar radiation and the peak solar irradiation is around 1 kw/m 2. This is approximately 50% of the annual solar radiation received at the equator which is mainly caused by the higher latitude and cloud cover. Scotland is generally cloudier than England, although some parts of Scotland get an average of over 1,400 hours of sunshine per year. There is a significant potential for solar technologies in Scotland despite the lower number of sunshine hours. 4 Future Energy Opportunities: A Guide for Distillers

6 Wind Energy Scotland has some of the best wind resources in the world accounting for 25% of Europe s wind energy potential. At present, 10GW of electricity potential has been leased offshore in Scotland to exploit the significant offshore wind potential. Annual mean wind speed at 25m above ground level (m/s) Tidal Due to a large tidal range which is further exacerbated by the rugged coastline with narrow sounds, this presents a viable consideration for many coastal installations. Britain has access to a third of Europe s wave and half of Europe s tidal power resources and the technology is largely at prototype and proving stage. As a result of this vast resource, Scotland has established the European Marine Energy Centre on Orkney to test various wave and tidal devices and linking them directly to the National Grid. Marine Scotland is a maritime nation with a history linked to the seas. Scotland s seas continue to be developed through the evolution of offshore renewable energy installations and the exploitation of oil and gas reserves in deeper water towards the edge of the continental shelf. Geology? km 25 0 Wave 125 km UK Wind Map: wind speed at 25m about groud levels Within Scottish waters, the wave climate is mainly influenced by conditions in the North Atlantic Ocean, where the fetch (i.e. distance the wind has blown over) is long enough to establish large, regular waves known as swell. The north and west of Scotland are most exposed to these conditions. On the east coast of Scotland, conditions in autumn and winter may also be rough in the North Sea because the wind direction can lead to large swells with significant energy. Did you know that. shallow ground sources of heat such as soils, ponds, shallow boreholes etc. extracted using heat pumps could make a very significant contribution to meeting targets for renewable heat. Scotland has a rich diversity of geological formations, some of which may host useful geothermal resources. Its geology is quite varied especially considering the country s size - around 78,780 Km 2. Scotland, with its highly varied geology, has the potential to exploit ground source energy as a sustainable and near-zero carbon source of heat and power. Geothermal energy and ground source energy are currently very minor sources of energy globally, nonetheless, important considerations when selecting alternative sources of clean (emission-free) energy. In this report we have considered, in particular, two forms of geothermal energy sources that are most appropriate for the temperature required to heat distilleries and the location where this source is available in close proximity to a distillery. These are: Hot sedimentary aquifers (HAS) Hot dry rocks (HDR). 5 Future Energy Opportunities: A Guide for Distillers

7 Available Low & Zero Carbon 02 Technologies This section highlights a number of low and zero carbon energy technologies that can be considered for energy generation in distilleries. These are: Wind power Solar PV Solar thermal Anaerobic digestion Hydropower Biomass Biomass CHP Ground source heat pump This list includes renewable technologies that have been widely installed in Scotland and elsewhere in UK. The technology review identifies how the different technologies could be applied to distillery processes and explores their relative costs and technical complexity. While actual costs for all installations vary, this document shows costs for each of these technologies, presented in order to aid comparisons. Each technology section is divided in the following subparagraphs: 1. Technical characteristics 2. How it works 3. Key conditions 4. Planning 5. Relative costs 6. Feasibility for distilleries 7. Examples of applications 8. Worked example The review also highlights if special skills would be required locally for some of the technologies or if conventional skills are sufficient. 6 Future Energy Opportunities: A Guide for Distillers

8 Onshore Wind By the end of 2010 there was just over 3.5GW of wind energy installed in Scotland, with a further 8.9GW in construction, awaiting planning determination, or at pre-application stage. The introduction of Feed-in Tariffs, which guarantees a set index-linked payment per unit of electricity produced for 20 years, has also seen an increase in small scale turbines and one or two large turbines installed on smaller sites or on industrial locations. Wind technologies can be considered as an option to generate on-site power for distilleries. 1. Technical Characteristics Wind turbines produce electricity by using the natural power of the wind to drive a generator. Wind turbines typically have three blades which rotate around a horizontal hub at the top of a steel tower. Other designs do exist including 2 blade versions and so called vertical devices which rotate around the vertical mast similar to those seen at the Olympic Park in London. Most wind turbines start generating electricity at wind speeds of around 3-4 metres per second (m/s), generate maximum rated power at around 15 m/s; and shut down to prevent storm damage at 25 m/s or above (50mph). Turbines range in size and application from micro wind turbines (<50kW) mounted on buildings or boats to large scale (>1MW) turbines up to 198m high. Building-mounted wind turbines are considerably smaller than free standing. They are appropriate in certain rural applications but performance in the built environment is greatly reduced by turbulence and lower wind speed caused by surrounding buildings and/or trees. As the wind is variable, the probability that it will not be available at any particular time is high. Wind energy has a load factor than can vary between 20 and 40% and this is compared to the maximum power the turbine can generate. Wind power technology is experiencing considerable annual growth in both the UK and worldwide with an increase of 75% in electricity generated by wind in the UK in 2010, at over 73,200kWh per year total operational onshore wind energy installed in Scotland, accounts for 63% of the UK total installed onshore (Renewable UK, Statistics). 2. How they work Wind passes over the blades exerting a turning force. The rotating blades turn a shaft inside the nacelle (the housing for all the generating components of the wind turbine), connected to a gearbox. The gearbox increases the rotational speed and the generator converts the rotational energy into electrical energy. The power output is converted by a transformer to the right voltage for the distribution system, typically between 11 kv and 132 kv. A wind turbine typically lasts around 20 years. During this time, some parts may need replacing. 7 Future Energy Opportunities: A Guide for Distillers

9 3. Key Conditions When calculating the output (e.g. electricity generation from the turbine) and the feasibility for wind it is important to take all the factors below into inconsideration. Wind speed: The key factor when considering a wind development is the average wind speed at the site over a year. For a larger installation it is recommended that wind speed is measured at the site over a year in order to get a more accurate indication of the wind resource. Micro wind applications are extremely site specific and require a minimum mean wind speed of 5m/s. Generally an average wind speed of >5m/s is used as a threshold below which wind turbines are not considered viable. Existing land uses: The existing uses of the land should be carefully considered to determine whether and how the wind energy project can best integrate with these existing uses. Ground conditions: The ground conditions at the site should be examined to consider construction of the foundations for the wind turbines, the erection of the machines and the provision of access roads is practical and economic. Features which may not appear on maps, such as fences, walls, streams and pipelines will need to be taken into account in the design and layout of the project. Grid connection: It is essential to have a suitable grid connection or the ability to connect to the grid. This is discussed in more detail later in this report. 4. Planning Large-scale turbines are generally not permitted to be located within 500 metres of buildings or residential properties due to disturbance. Planning is a significant issue to be considered when developing a wind power installation; approximately half of planning requests are refused due to local opposition. Location: Wind turbines should ideally be located in exposed areas away from built up areas or obstructions such as trees or buildings. Turbines should ideally be located at the highest topographical point available and not in the lee of hills or other terrain. Site Accessibility: The construction of a wind energy project requires access by heavy goods vehicles to the site. Access to the site must be assessed to determine the suitability of existing public and private roads and what improvements may be required to serve the development. There should also be sufficient access to the site to allow for development and access by maintenance staff. A study of the local road network will give an idea of the likely access constraints to the proposed site. Wind turbines could also impact on radar and radio frequency and thus additional studies are required to ensure that the impact of this technology is negligible. The installation must not be sited on safeguarded land or close to airports and bird reserves. This also depends upon the size of wind turbines; small scale wind turbines are unlikely to affect television and radio reception. Noise, vibration, flicker, safety issues like ice throw and tower topple are all carefully considered before a turbine is installed as well as considering land designation. Did you know that. a survey of residents living around Scotland s ten existing wind farms found high levels of acceptance and overwhelming support for wind power, with support strongest amongst those who lived closest to the wind farms. Those who live closest to wind farms are three times more likely to say it has a positive impact on their area than not.? 8 Future Energy Opportunities: A Guide for Distillers

10 5. Relative costs Wind power is now economically viable with short payback periods as a result of state support schemes such as the Feed-in Tariff and Renewables Obligations Certificates (ROCs). The price of small wind turbines depends on the size and type of a model. A typical small system (70kW) costs are 2,500-5,000 per kw. The cost of large, megawatt scale, wind turbines is today about 1,500 per kw capacity. 6. Feasibility for distilleries Because of land restriction or other constraints at some sites, it may not be possible to install on-site turbines and off-site option might be considered. There are already proposed sites for developing wind projects in Scotland, some of these have obtained planning permission and are under construction. Distillers may wish to consider investing in such projects. No distillery site has, to date, opted to install a single wind turbine, though this is a technically feasible option for power generation. Visual impacts are a key consideration, particularly at distillery visitor centres. There are a few examples of wind turbines installed in small scale industry applications that are shown in the next section. 7. Examples of Application Hobson s Brewery, Shropshire England Sustainability has become an increasingly important part of brewing processes and green technologies have been introduced to reduce their environmental impact, such as: the installation of an 18m high wind turbine that provides a third of the brewery s electricity requirements; a ground source heat pump system that chills the cellarage and heats the offices; and, a rainwater harvesting system which is then used in flushing and cleaning down ancillary processes. An innovative solution was created for this brewery. To simultaneously heat their bottle store and cool the barrel store a ground source heat pump system was designed so that the system could recover heat from the cold store well. Four boreholes were sunk providing a constant 11ºC of water that is then compressed for heat or cooling or both. To enhance the efficiency of the ground source heat pump an 11 kw wind turbine was installed to power about a third of the brewery s requirements. When the turbine is used to power the compressors that provide heating/cooling from the boreholes a highly efficient system is created. GlaxosmithKline, Montrose Angus, Scotland GSK is seeking to achieve carbon neutrality at its pharmaceutical manufacturing facility in Montrose. An initial study to assess various energy efficiency and renewable energy options was delivered and it was established that industrial-scale wind turbines would be the most effective means of generating the required amount of electricity. Following a detailed assessment and Environmental Impact Assessment, a planning application was submitted for a 5MW installed system. The project: 2 x 2.5 MW wind turbines Delivers approximately 13,000MWh 134% of the total electricity demand for the site Aspiration to be independent of the electricity grid. A good site for wind. 8. Introduction to the example project This is an example project for onshore wind installation to generate a percentage of the electricity demand of a typical small-medium scale distillery. Input Data High wind speed Close proximity to available grid capacity Compliance with government guidelines on noise limits Near motorway: ideal to minimise impact relating to construction traffic Grid connection It is assumed that the distillery is located in the west of Scotland which has been deemed feasible with a >7m/s wind speed. The site has land available, approximately 2,300m 2 Site energy demand is 10.2 GWh per annum, of which 4% is for electricity. 9 Future Energy Opportunities: A Guide for Distillers

11 Parameters Used The parameters used to assess this technology are: Wind speed on site: Type of site: Open agricultural areas Wind turbines size: Medium scale (330kW) Number of turbines: 3 turbines 4.0% Electricity generation 91.9% Overall energy generation How are the wind conditions on your site? The table below shows the wind potential at your site. Each square represents 1km area around your site. The wind speed for neighbouring areas has been given in order to show the general wind speed for your region. 10 Future Energy Opportunities: A Guide for Distillers

12 RESULTS GENERATION POTENTIAL All figures are estimates. Detailed analysis is needed for the technology to be developed Estimated pow er generation 406,440 kwh/year Installed capacity 675 kw % of on-site electricity consumption 91.9% % on-site of total energy consumption 4.0% % contribution to energy target 79.2% Warning: Investigation into the local grid capacity is required; refer to grid guidance below GENERAL GUIDANCE For safety and structural concerns the w ind turbine/s chosen must be at least at 32.5m from nearest building and 500m from domestic building to minimise noise impact. Minimum turbine distance from buildings 163 m Minimum land area recommended if more than 1 w ind turbine is installed 3.28 ha This analysis shows that 4 wind turbine/s of the chosen type are required to generate 100% of electricity demand. CO2 EMISSIONS REDUCTION Annual tco 2 e Saved tco 2 e/year % CO 2 e Reduction 0.01% Contribution to CO2 emissions reduction target 0.23% COST SAVING Capital investment 1,350,000 Maintenance 27,000 /year FiT Level /kwh Total annual revenue 116,531 /year Unlevered IRR 6.2% Simple payback 16.0 years 11 Future Energy Opportunities: A Guide for Distillers

13 Solar Photovoltaic Another alternative to generate power on site is to install solar panels on roofs (warehousing sites offer potential) or on the ground where space is available. 1. Technical Characteristics Photovoltaic (PV) systems convert solar radiation into electricity. PV cells consist of one or two layers of a semiconductor material, usually silicon. When the sun s rays hit the cell, an electric field is generated across the layers. PV cells do not necessarily require direct sunlight in order to operate, as they will still work with the diffuse light of a cloudy day. However, the greater the intensity of the sunlight hitting the cells, the greater the flow of electricity. The three most common cell types used for buildings (all based on silicon cells) are: Mono-crystalline: most efficient (15-17%) but highest cost; Poly-crystalline: cheaper than mono-crystalline but slightly less efficient (12-15%); Thin-film amorphous: considerably cheaper but about half the efficiency of mono-crystalline. Because of its flexibility, this type is best used for integration into building elements, light weight roofs or irregularly shaped surfaces. 2. How they work The majority of PV systems are grid-connected so that any electricity generated in excess to demand can be exported to the distribution network. A typical gridconnected system contains: an array of photovoltaic panels for generation of direct current (DC); a power-conditioning unit (PCU), i.e. an inverter, that converts the DC power to alternating current (AC) synchronised with the grid and at the correct voltage and frequency. The PV system can be connected to the electrical supply system of the building via the standard building wiring and the mains switch distribution board, and to the utility grid via import and export metering. Example of thin film application from WSP library 12 Future Energy Opportunities: A Guide for Distillers

14 3. Key Conditions Tilt and Orientation: In order to maximise the output of PV panels their position must be optimised. Panels should always be orientated to the south and at the optimum angle of between Mounting frames can be used to achieve the optimum angle if roof pitch is not ideal. Overshadowing: Shading from adjacent elements, both big or small, is a significant issue for PV installations and can greatly reduce output. Overshadowing from nearby obstructions such as trees or buildings or adjacent panels should be avoided where possible. Structural concerns: Roofs should be structurally sound although panel load is negligible compared to standard loading calculations; light panels should be considered for metal/laminated roofs. In the case of building integrated PV the structural integrity of the building may have to be assessed by a qualified engineer. 4. Planning The key considerations related to planning are: Roof mounted PV: these are generally permitted under planning conditions. Large ground mounted installations: they require planning permission and an environmental impact assessment. Listed buildings: planning permission is required for these buildings and the application might not be successful in some heritage areas. Solar cells are inert solid state devices; the systems therefore produce virtually no noise and no emissions. The panels do not give rise to any emissions which will impact on air quality. Because there are no adverse environmental impacts, planning considerations tend to focus on the physical and visual impacts of solar systems. Security should be considered; PV panels are expensive and should be protected from theft and damage (especially if located at ground level where the area is not gated). Decline in cost of PV installations 13 Future Energy Opportunities: A Guide for Distillers

15 5. Relative Cost Initial capital costs for PV installations range between 1,800 and 3,600 per kwp installed, although there is evidence of a drop in market prices in the past 5 years. This steady decrease in price of PV modules is due to the improving financial attractiveness of PV installations. The graph highlights the regular decline in PV pricing as global production capacity has increased to supply demand. Photovoltaic developments receive state support across Europe and are eligible under the Feed-in Tariff system in the UK which guarantees a set index linked rate per unit of electricity generated and exported for 25 years. These types of revenue together with the saving on energy bills allows for an attractive return. 6. Feasibility for distilleries A building mounted photovoltaic installation can make a highly visible statement about a business commitment to sustainability. The installation can also be interactive with a main display placed at the entrance of the building which displays graphically the levels of electricity generated and carbon abated per day, month, year, etc. Roof mounted photovoltaic PV panels are suitable for development in the distillation industry due to the presence of large structures and warehouses on site providing large areas often not shaded and at suitable angle of inclination. The electricity generated could also be either used on the site or sold back into the grid. began in Lots of time was spent in administration for approval and government grants. Works started in April 2009 and the system was connected to the grid in September The owner considers this a good investment - he signed a 20 year contract with EDF that will buy the electrical generated from the distillery roof at 60 Eurocent/kWh making the investment viable and after one year the overall production is higher than the predicted. PV Solar Farms UK The UK solar industry has been and is still going through a turbulent time with the short-term outlook still looking uncertain. Despite the climate of uncertainty in 2011, WSP worked on two solar farm projects and in early 2012 started work on a third. Two successful examples of ground mounted PV installations UK are for example the Durrants and Ebbsfleet solar farms. Size wise, Ebbsfleet solar farm (4.9MWp) has been developed in Kent and Durrants solar farm (4.9MWp) on the Isle of Wight. They were both constructed before the July 31st cut-off date in 2011, just in time to receive the higher tariff from the Feed in Tariff incentives scheme. An additional 500kW was then constructed at the Durrants Solar Farm before the October 18th (deadline for another change in the tariffs). In case of land availability ground mounted PV can be also considered. 7. Examples of Application PV Distillery Roof, Cognac France Having considered the economics and the outbuildings available, photovoltaic panels were the natural choice for this French distillery s energy project. With a large, south facing distillery roof, approximately 465m 2, and solar irradiation adequate for solar power generation it was decided to equip half for this roof with PV panels. The overall cost was 310,000 Euros and grants were available from regional government (18.5%) and European funds. The process was relatively long and Ebbsfleet Solar Farm, Kent from WSP Library PV for Retail Shed, Purley Way UK This project involved the construction of two retail units on a trading estate in Croydon, South London. The units were required to provide 10% of their energy from renewables. A photovoltaic system was deemed to be the simplest and most cost-effective method of achieving this. A system of 31kWp was installed at a cost of 113, Future Energy Opportunities: A Guide for Distillers

16 The system is predicted to provide 29MWh per annum. This should give a payback period of approximately 12 years based on the electricity savings and Feed in Tariff. The area of PV costs, efficiencies and incentives available is fast moving and particular consideration is required of when the system will actually be commissioned to consider the financial implications. 8. Introduction to the example project (PV roof mounted) This is an example project for Solar PV roof-mounted installation. Input Data Assumed that a small distillery located in Southern Uplands has been deemed feasible due to a solar irradiance index of 900kWh/m 2. The site has suitable roof space available of approximately 2,250m 2. Site energy demand is 500MWh per annum for electricity; that is about 10% of the total energy demand. Parameters Used The parameters used to assess this technology are: Roof type: pitched Orientation: south-east Roof tilt: 30deg Panel type: Mono-crystalline Shading: very little Solar output from Photovoltaics (PV) is directly proportional to panel area. The first step to size a PV system is select the roofs that are adequately oriented and not shaded. 44.5% Electricity generation 15 Future Energy Opportunities: A Guide for Distillers

17 RESULTS GENERATION POTENTIAL All figures here are estimates. Detailed analysis is needed for the technology to be developed. Estimated pow er generation 222,491 kwh/year Installed capacity 265 kwp % of on-site electricity consumption 44.5% % on-site of total energy consumption 4.2% % contribution to energy target not applicable Warning: Data input complete, but please ensure shading and proportion of electricity consumed on site are correct. GENERAL GUIDANCE Grid Guidance Grid Connection is a crucial aspect of any renew able energy installation. Connecting to the grid involves many considerations including; distance (from grid), cost of connection, securing access to the netw ork from the District Netw ork Operator (DNO), and the capacity of local grid. There is also guidance that should be follow ed (G83 and G59). Contact w ith the relevant DNO should be made w hen planning any connection to the grid, particularly w hen considering larger systems CO2 EMISSIONS REDUCTION Annual tco 2 e Saved tco 2 e/year % CO 2 e Reduction 0.01% Contribution to CO2 emissions reduction target % COST SAVING Capital investment 529,412 Maintenance 1,853 /year FiT Level /kwh Generation Tariff Revenue 19,802 /yr Export Tariff Revenue 0 /year Value of Electricity saved 17,799 /year Revenue 35,748 /year Unlevered IRR 6.5% Simple payback 13 years 16 Future Energy Opportunities: A Guide for Distillers

18 Introduction to the example project (PV ground mounted) This is an example project for Solar PV ground mounted installation. Input Data Assumed that a small distillery located in the South East of Scotland been deemed feasible due to a solar irradiance index of 903kWh/m2. The site has suitable land available of approximately 3,000m 2. Site energy demand is 350MWh per annum for electricity; that is about 8% of the total energy demand. Parameters Used The parameters used to assess this technology are: Land area for PV installation Orientation: south Panel inclination 35deg Panel type: poly-crystalline Shading: none 17 Future Energy Opportunities: A Guide for Distillers

19 RESULTS GENERATION POTENTIAL All figures here are estimates. Detailed analysis is needed before investing in any technology Pow er generation 314,309 kwh/year Installed Capacity kwp % of on-site electricity consumption 90% % of total energy generation 6.6% No energy target set for the distillery % GENERAL GUIDANCE Grid Guidance Grid Connection is a crucial aspect of any renew able energy installation. Connecting to the grid involves many considerations including; distance (from grid), cost of connection, securing access to the netw ork from the District Netw ork Operator (DNO), and the capacity of local grid. There is also guidance that should be follow ed (G83 and G59). Contact w ith the relevant DNO should be made w hen planning any connection to the grid, particularly w hen considering larger systems CO2 EMISSIONS REDUCTION Annual tco2e Saved % CO 2 e Reduction 0.02% No carbon target set for the distillery Not Applicable COST/SAVINGS Capital investment 285,000 Maintenance 1,050 /year FIT level /kwh Generation Tariff Revenue 27,973 /yr Export Tariff Revenue 0 /year Value of Electricity Saved 25,145 /year Revenue 53,118 /year Unlevered IRR 20.0% Simple payback 5.3 years 18 Future Energy Opportunities: A Guide for Distillers

20 Solar Thermal 1. Technical Characteristics Solar thermal collectors comprise of fluid filled panels that collect solar energy to heat water. These can be either flat plate or evacuated tube. The key element of both flat plate and evacuated tube collectors is the absorber. This is the surface, usually flat, on which the solar radiation falls and which incorporates tubes or channels through which the heat transfer fluid can circulate. A dark coloured, matt surface coating absorbs more radiation than light to reduce the emission of thermal radiation. This technology is relatively mature with installations first occurring in the 1920s, and many installations from the 1970s are still in use today. 2. How they work Flat plate: Glazed flat plate collectors comprise of a metal absorber in a rectangular metal frame. The absorber is made of copper or aluminium and is coated in black to improve absorption of solar energy and enhance solar transfer. The heat transfer medium (typically water) is contained and circulates in copper tubes, which are attached to the absorber. The collectors, insulated on their back and edges and glazed on the upper surface, supply heated water to an indirect coil located in a hot water cylinder. Flat plate collectors are mainly used in domestic properties and are most common in northern latitudes. Typically these are 3-5m2 collector panel installations tilted to face the sun. Evacuated tubes: Evacuated tube collectors are generally more efficient than flat plates, although more expensive as they are more sophisticated devices. Their increased efficiency results from mounting the absorber in an evacuated and pressure-proof glass tube, which reduces conductive and convective losses. They work efficiently at low radiation levels, with high absorber temperatures and can provide higher output temperatures than flat plate collectors. Dedicated solar storage is necessary, as solar energy input may not coincide with the actual hot water demand. For large installations, the system can be designed with two or more pre-heat and/or storage tanks in series, with sensors set to measure the return temperature of the water in the first tank and either re-circulate it through the collector or pass it on to the next tank. SOLAR COLLECTORS ON ROOF Solar Electric Panel Powering Circulating Pump COLD WATER Solar Preheated Water HOT WATER TO LOADS Mixing Valve Prevents Scalding Antifreeze to Solar Collectors Heated Antifreeze from Solar Panels Circulator SOLAR STORAGE TANK AUXILIARY WATER HEATER BOILER Diagram of solar collectors system linked with hot water tank and/or solar storage tank. 19 Future Energy Opportunities: A Guide for Distillers

21 3. Key Conditions Solar evacuated tubes Tilt and orientation: Solar thermal collectors are not overly sensitive to orientation or tilt and can thus be faced anywhere from south-east to south west (making an estimated 50% or more of the current building stock applicable for development Solar thermal panels are sensitive to inclination and work effectively from Shading: Panels should ideally not be shaded throughout the day therefore overshadowing of development area by trees, chimneys or higher buildings should be investigated. This can be done with solar modelling for new builds and site visits for existing. Allowance for the future growth of nearby trees should be also considered. Structural concerns: Considerations include allowance for thermal expansion, differential negative lifting on adjoining components, sufficient (over)lap of roof components, and the ability of the roof structures (i.e. rafters, purlins, trusses) to withstand the loadings. The structural integrity of the roof will have to be assessed by a qualified engineer. Location and equipment: Solar thermal collectors will be linked to a hot water cylinder ideally within a close distance in order to reduce heat loss and design complexity. If the panel is installed on a flat roof a metallic frame can be used to achieve optimum positions. The build-up of dust on the collector surfaces is another element to consider: a nominal 5 per cent loss of energy yield is expected in all conditions without cleaning. This will increase at pitches of less than 20 degrees. In areas where high build-up is expected i.e. from sea salt, high density traffic or tree sap, the problem will be exacerbated with collectors set at a low pitch. 4. Planning In general roof mounted solar thermal applications are looked on favourably by local authority planners, therefore in some cases these are regarded as permitted development and deemed not to require formal planning permission unless on a listed building or when located in a conservation area. If the system is considered to be a significantly large development then issues considered by the planning authority will include the visual impact, and a broken roof scape which concerns whether the height of the system will exceed the roof height. Solar thermal installations have an attractive payback when offsetting fossil fuel consumption and when there is a high hot water demand. The Renewable Heat Incentive (RHI) is contributing to making these generators of solar hot water more affordable and attractive in order to grow the UK solar thermal market. 6. Feasibility for distilleries Whisky distilleries have a great need for hot water however the temperatures required for the whisky production process are between approximately 60 o C and 90 o C. At these temperatures solar systems are less efficient and therefore, although the system can generate free thermal energy, there is only partial contribution to the overall energy needed. Further investigations are recommended to establish if this technology can be combined with others in order to generate energy more efficiently e.g. pre-heating. Another element to consider is the way solar systems work. The energy output is strictly dependent on the roof space available and most of the time the amount of heat required is in excess of the potential output from the site roofs. Solar panels are nevertheless an ideal option to provide on-site hot water for offices and visitor centres reducing the dependence on fossil fuel or as contributor to preheating. Low grade solar hot water probably can t be used in any of the distillation processes, but as mentioned earlier could be intended as pre-heating stage to reduce the overall energy demand and the dependence on fossil fuel. 20 Future Energy Opportunities: A Guide for Distillers

22 Solar thermal systems can greatly contribute to energy savings during the production processes in the beverages sector. For example, for processes that require temperature below 80 o C (bottle washing, cleaning, etc.) the hot water produced by the solar collectors can also be used for pre-heating the water entering the installation s steam boiler. In this case, the energy contribution of the solar system is relatively small both in comparison with the total energy demand, as well as in absolute figures. 7. Examples of Application Solar Systems Applications in the Dairy Industry (Greece) This example is to show the capability of a solar thermal system, to generate heat for industrial process such as dairies. Process hot water requirements Factory operation hours: 24/7 Hot water consumption: m 3 /day Temperature of process water: a) Industrial processes: C b) Example washing machine C Installation Description The hot water from the closed-loop hydraulic circuit of the solar collectors heats (via an internal heat exchanger) the water in two 2,500 litres storage tanks. The hot water leaving the solar storage tanks is then used for preheating the water entering the steam boilers. 8. Introduction to the example project This is an example project for solar thermal collectors, mounted on south facing roofs. Input Data Assumed that a small distillery located in Southern Uplands has been deemed feasible due to a solar irradiance index of 900kWh/m2. The site has suitable roof space available of approximately 2,250m2. Site energy demand for hot water is 150MWh per annum for natural gas; with an overall consumption for energy of 12GWh/year. Parameters Used The parameters used to assess this technology are: Flat roof: 336m2 it is recommended by the tool Orientation: south-east Panel tilt: 30deg Shading: modest 50% Hot water generation 1.2% Overall energy generation Did you know that...installing? 1,300m2 of solar collector can heat more than 20,000 litres of water at 63.5 o C and save approximately 70,000 litres of gas oil. ROOF ORIENTATION Please tick the box (ONE ONLY) corresponding to the main roof orientation ROOF INCLINATION Please tick the box (ONE ONLY) corresponding to the angle of tilt of the roof. 21 Future Energy Opportunities: A Guide for Distillers

23 22 Future Energy Opportunities: A Guide for Distillers

24 Anaerobic Digestion 1. Technical Characteristics Anaerobic Digestion (AD) involves the creation of biogas (60% methane) through the breakdown of an organic feedstock in the absence of air. The biogas can then be combusted in a combined heat and power (CHP) boiler to create heat and power or through a straight forward gas engine for electrical generation. More recently, biogas has been used in fuel cell applications. Alternatively the biogas potentially could be exported into the gas grid. AD is a viable option for large producers of organic byproducts such as brewing and distilling by-products (e.g. pot ale) and wastes from local councils, water utilities, farms and food producers. AD is well established in Europe and is becoming increasingly popular in the UK. The by-product of this process is digestate that can be used as a fertiliser depending on the original feedstock. At present this is an immature market but as a valuable source of such as Nitrogen, Phosphorous, Potassium, & Magnesium. It can have a value > 100/ha for a single 30m 3 application. A key driver of the AD industry has been a suite of policy instruments. The European Landfill Directive 1999 requires a 65% reduction in the amount of organic waste entering landfill by 2020 together with restrictions on inputs to energy from waste plants and mandatory source separation of waste and aims to reduce carbon emissions. Currently a large amount of waste from food processing is being sent to landfill or pumped at an elevated cost per tonne into the sewage system. Resource Use Distillers by-products e.g. pot ale CHP / electricity Anaerobic digestion Biogas On-site heat Other (optional) inputs e.g. manure, local food, waste Biogas to grid Digestate for fertiliser use Anaerobic Digestion Transport fuel 23 Future Energy Opportunities: A Guide for Distillers

25 2. How it works Anaerobic digestion occurs in an insulated sealed and heated (37 o C 40 o C) container. Before the four-stage process of hydrolysis, acidification, acetogenisis and methanogenisis. Input material is usually shredded and wetted to increase its surface area and to speed up the breakdown process. This feedstock is then broken down in the digester. The residence time depends on the feedstock and can be anywhere from 6-60 days. An energy yield of 10GJ/tonne from organic waste can be obtained with full utilisation of all gases and residues and recovery of low and high temperature heat. 3. Key Conditions Location: The key consideration in assessing the viability of AD on site is the availability of a regular and sizeable supply of suitable organic feedstock. In order to produce biogas sustainably the feedstock should ideally be produced on site or within a very short distance; long distance haulage of feedstock is not advised. AD systems are most suited to sites with a readily available organic based feedstock, either as a by-product of manufacturing or from a waste source, such as food back hauled to depots from supermarkets. In addition, other locations which are proving to be a rich vein for AD development are within the agricultural community. Energy Yield/Gas output: In order to gain sufficient gas from the digestion process it is necessary to have a feedstock with sufficient organic content to obtain a level of biogas that is economic to extract and to burn. It is typical for every kg of COD in effluent to contribute 0.245m 3 of methane gas (80%) and the heat potential value of each kg COD in terms of gas is 2.4kWt per kg COD. This translates to approximately 1kWe assuming a conversion efficiency of 40%. To improve the viability of an on-site AD plant it is beneficial to have a heat load present as biogas is not easily fed into the grid. It is more appropriate to combust on site in a CHP installation. If there is a large flow of material through the digester an on-site technician may be required in order to ensure optimum performance. Noise levels: In an AD plant the main source of high noise levels is the engine generator set. Actual decibel (db) levels produced at an AD facility will differ due to varying acoustical settings, but a generator set can produce between db (Fenton, 2011). However 24 Future Energy Opportunities: A Guide for Distillers

26 this issue can be easily mitigated by supplying noise protection devices, such as earplugs, to employees and visitors who are exposed to high noise levels and ensure the plant is at an adequate distance from a residential area. 4. Planning Development of an AD plant will require planning consent from the local authority and also consent from the environmental regulator in most cases. Consideration needs to be given to the proximity of neighbouring properties as AD plants can often release odour emissions. However, modern package/containerised systems have substantially improved this and installations are now regularly odour free and experience little in the way of complaints. 5. Relative costs AD plants are typically quite capital intensive at a small scale, with costs ranging from 5-10,000 per kwe installed for a kW size scheme. Above this size >500kW we would expect to see installed capital costs in the region of per kw. 6. Feasibility for distilleries The AD industry is more mature on the continent with Germany and Denmark having extensive experience in the field. The technology is just beginning to grow in the UK, and developing an installation remains a lengthy process. AD is established in a number of grain distilleries already in Scotland and the sector has much experience of the length of time needed to deliver AD installations and dealing with issues that arise from funding models, interventions during the planning process by the planning authorities, Environmental Health Officers, Scottish Environmental Protection Agency (SEPA) etc. as well as technical and process issues. Distilleries are well placed to profit from the ability to generate renewable energy from by-products and waste streams such as effluents. Sites where substantial volumes of feedstock are available have the potential for a dedicated anaerobic digestion plant to create energy and revenue, though revenue loss from the sale of byproducts should be taken into account in any financial calculations. Account should also however be taken of any savings made by avoiding drying and compounding of by-products in animal feeds plants. For example, pot ale from the distillation process can be converted into methane gas, which could be burned to make energy for the distillery. Even the smaller sites can sustain such an approach as by-products which are currently sold (e.g. for animal feeds) may be more valuable if converted to energy, or sites can import wastes from other distilleries nearby, or other sources, to make a project viable. Whisky has two main by-products: spent cereals and pot ale, which could, through AD processes, be used to produce methane or other gasses. 7. Examples of Application The North British Distillery The Edinburgh-based The North British Distillery Company Ltd embarked on its sustainability project at the end of The Gorgie grain distillery, the second largest in the industry, is a joint venture between Edrington and Diageo. The key objectives of the project were to reduce the energy profile of the business and to reduce the environmental footprint and impact of spirit production. The project is being managed in a staged manner and each stage verified on its technical capability and efficiency of operation before further stages re embarked upon. Subsequent stages are only progressed where clear future economic benefits can be realised. The North British Distillery AD plant under construction Stage 1 has involved the installation of an anaerobic digester to convert evaporator condensate from the distillers dark grains process, grey water and spent wash centrate into biogas. A dedicated biogas boiler burns the gas to produce process steam. Stage two will see the expansion of the new anaerobic digestion plant and the installation of a new water treatment plant to process effluent from the digester. The water treatment plant will improve effluent quality and provide clean water which can be recycled back into the process. 25 Future Energy Opportunities: A Guide for Distillers