Food security and energy security are critical for the success of the UK’s economy. But food manufacturers have to balance energy security alongside two equally pressing imperatives: sustainability and cost. While the energy crisis is abating, the Food & Drink Federation recently noted re-emerging mid-term inflationary volatility, leaving manufacturers and supply chain partners vulnerable when considering whether to absorb or pass on cost increases to customers. At the same time, we have a legally-binding, UK-wide Net Zero target of 2050, with the food industry committed to a 2040 deadline.
In this context, improving resource efficiency through better energy management can make a significant difference: for energy security, reduced carbon emissions, and lower energy bills. Given that energy accounts for around 15% of costs for the average food and drink manufacturer, energy management strategies are an obvious starting point for companies looking to manage costs while demonstrating their commitment to sustainable manufacturing.
The demand to decarbonise
A recent study highlights the importance of sustainability in UK consumers’ food and drink purchasing decisions, with 61% considering it more important now than they did just two years ago, and over three quarters of consumers calling for companies to actively reduce environmental impact. Looking to immediate customers, particularly the big four supermarkets, the pressure on manufacturers continues to grow as major retailers focus attention on their Scope 3 emissions. Tesco led the way, making it clear that, given that Scope 3 make up 90% of their emissions, suppliers must make measurable and clear sustainability improvements. In 2021, Asda launched a project with the Carbon Trust to measure Scope 3 emissions, while Sainsbury’s and Morrisons have committed to reducing supply chain emissions by 30% by 2030. Clearly, much of the responsibility for the sector to decarbonise must be shouldered by food and drink manufacturers.
Breaking through the greenstalling barrier
Over 75% of consumers believe that businesses should be obligated to provide full transparency on their supply chains to enable informed purchasing choices (source). But a new report from the Carbon Trust and Net Zero Intelligence Unit warns that companies’ decarbonisation plans are stalling since businesses are uncertain of how to push forward with sustainability strategies, accompanied by the worry of making the wrong choices – ones which could lead to the perception of greenwashing. They note,
“This finding suggests that some businesses are in a state of ‘greenstalling’ – where they fear the consequences of doing and communicating the wrong thing so much that they avoid taking climate action altogether.”
They advise companies to begin by taking steps that align with best practices on Net Zero. To move beyond ‘analysis paralysis’, they highlight the first steps businesses should be taking,
“Your business cannot do everything at once. Focus first on the areas that can drive the greatest impact, based on a rigorous assessment of the risks and opportunities for your business, and take action there…”
Updating ageing transformers with British manufacturing excellence
Many manufacturers will have been using transformers as a vital element of their energy infrastructure for years – to step up or step down voltage. For those investing in on-site renewable energy generation as a part of their sustainability strategy, transformers are crucial to integrate solar and wind generation since these produce direct current which needs to be converted to alternating current. But there is a major issue with the UK’s transformer fleet. The design lifespan for transformers is estimated to be around 20 years, but the average age of a transformer is over 60 years. In the worst case scenario, transformer failure can mean a complete stop in production. For food and drink manufacturers, the costs associated with such an event are critical: potentially, the loss of perishable goods; production downtime; impact on reputation, and punitive customer penalty clauses.
Even before total transformer failure, the inefficiencies of operating an old unit will significantly hamper your sustainability efforts, creating unnecessary Scope 2 emissions – meaning unnecessary Scope 3 emissions for your customers. Upgrading an outdated transformer with a modern amorphous core alternative can lower core losses by up to 80% when compared to a traditional CRGO transformer, saving on both energy costs and carbon emissions. Where this includes integrated remote monitoring, the visibility into performance – with real-time insights – can facilitate better resource efficiency. Looking to your own Scope 3 emissions, Powerstar – unlike many of our competitors – are proud to manufacture our transformer solutions in the UK. We prioritise the traceability of components and source the bulk of our materials locally, reducing transportation-related emissions and contributing to our customers’ decarbonisation strategies.
The energy, cost, and carbon reductions from transformer upgrades can lead to significant savings for energy-intensive food and drink manufacturers. Quorn Foods, a company focused on providing food that’s both good for people and good for the planet, drive environmental sustainability though their Supply Chain Sustainability Strategy, with priorities including greenhouse gas emission improvement and responsible sourcing. Following a site visit and feasibility study, Powerstar’s engineers identified Quorn’s existing on-site distribution transformers as an area for improvement. Since installation of two new Powerstar transformers, Quorn’s annual energy consumption is reduced by over 10%, equating to more than £70,000 in reduced energy costs and removing 365k tonnes of unnecessary carbon emissions.
Mitigating wasted energy with Voltage Optimisation
For many manufacturers in the food and drink sector, transformer replacement often goes hand in hand with new Voltage Optimisation (VO) technology – as it has for Quorn – and Powerstar offers solutions where VO is integrated with the new transformer unit. While many companies will already have VO as part of their energy management infrastructure, as with the ageing transformer fleet, upgrading older VO systems can make for significant improvements where modern, dynamic VO offers cost reductions and lower carbon emissions.
The National Grid supplies an operating voltage of anywhere between 216 – 253V, averaging at 242V, to ensure it meets its statutory obligations. But the standard operating voltage of most UK electrical equipment is 220V. Overvoltage presents a number of problems: wasting energy means higher energy bills and unnecessary emissions; it puts equipment under unnecessary stress, leading to avoidable wear and tear, shortening the lifespan of critical – and often expensive – kit, and this can bring about additional maintenance costs and loss of production time. VO can stabilise incoming voltage, conditioning on-site power to ensure consistent, optimum voltage levels, while returning unnecessary voltage to the Grid. Moreover, modern, dynamic VO technology can provide real-time voltage management, with robust protection, for greater performance reliability and longevity.
Remote monitoring of dynamic VO systems can allow for site consumption to be logged, with harmonics, power factors and voltage, offering manufacturers the real-time performance data that can enhance resource efficiency. As the UK’s leading manufacturer of VO solutions, Powerstar have installed more than 10,500 (VO) units across the globe – both fixed voltage reduction and dynamic voltage regulation systems. And our expertise is helping numerous food and drink manufacturers, including Nutricia and M I Dickson, to address cost and carbon agendas.
Establishing quick energy wins
Powerstar engineers ensure that any technologies we recommend will deliver the required results, whether that is to reduce energy consumption, to lower energy bills, or improve sustainability.
Where supermarkets and retailers face consumer pressure to publicly report progress on Net Zero, manufacturers who are actively reducing their own emissions have a competitive edge.
To find out more about how we help food and drink manufacturers meet their resource efficiency goals, contact us.
