COMBINED HEAT & POWER
A global, farmer-run
T
he production and processing of dairy products have thermal energy intrinsically built into their processes.
Clarification and pasteurisation require temperatures of up to 95°C, and cooling and refrigeration are crucial parts of dairy storage and distribution. As a result, dairy manufacturers require resilient, robust, flexible and efficient energy sources to support the production process. One particular food producer has ambitious sustainability plans and targets in place, which have been approved by the Science- Based Target Initiative. It aims to to have transitioned to 100% renewable electricity by 2025 and reduce its scope 1 and 2 emissions by 63%, and scope 3 emissions by 30% per kilo of raw milk by 2030. The company has already implemented numerous sustainability projects, from investing in renewable energy to converting its heavy and long- distance vehicle fleets to run on alternative fuels, through to replacing over 80% of its UK site lighting to energy efficient LEDs.
Combined heat and power (CHP) plants are core to the business’s on-site operations. These are an efficient way to harness wasted energy from the heat and steam that is needed for dairy processing. CHPs capture thermal energy that would otherwise be lost and repurposing it for additional heating, cooling, or generating electricity for other critical assets. Using on-site CHP plants is more efficient and less carbon-intensive than importing power from the grid.
As a form of on-site power generation, the firm’s CHPs put it in a strong position to support grid flexibility by participating in the Capacity Market. This means it can help to balance energy demand to stabilise the national grid, while reducing emissions and creating an additional revenue stream. Since 2020, the dairy
manufacturer has partnered with Enel X to capitalise on the flexibility that its CHP plants make available to the grid. As its initial participation was at a single site that processes and produces a significant proportion of the UK’s milk, it was essential that the whole solution did not disrupt operations.
Enel X worked closely with the business to ensure that its existing infrastructure at the initial site met the requirements for Capacity Market access. This avoided having to install expensive new equipment and helped to minimise the cost of participation. The continual process and operational requirements of dairy production mean it cannot curtail its load. This makes the Capacity Market the most appropriate market to participate in as it presents an opportunity to create revenue from CHPs without having to turn down production. The Capacity Market scheme supports the electricity grid by balancing available supply with demand, especially when the grid is experiencing heightened demand. Capacity Market customers earn revenue by modifying their energy consumption or production in response to grid signals. By ensuring its CHPs produce power above its contractual minimum, participants make additional capacity available to support grid stability
and flexibility when the grid is experiencing high demand. The cooperative’s entry to the scheme includes compliance, data analysis and testing, and submissions to the Electricity Market Reform Settlement body. When the first site’s Capacity Market access proved successful, participation was extended to five further dairies and creameries that used CHPs. Since first participating in the Capacity Market in 2020, the dairy producer has generated over £1.25 million in revenue and unlocked a consistent stream of new revenue every year.
The CHP plants enable the company to participate in the Capacity Market while maintaining efficient production processes at all six participating sites. As CHPs use power produced on site, directly feeding into the consumption source, there is less reliance on the national grid for power, which effectively frees up capacity that can be used elsewhere. Every site, farm, or dairy is different, and support from Enel X helped the business understand what was possible at an initial dairy site. The rapid expansion to further locations is a testament to the partnership and the benefits that
16 BUILDING SERVICES & ENVIRONMENTAL ENGINEER OCTOBER 2024
working with a leading Capacity Market expert can create. In addition to this, participation in the Capacity Market helps reduce emissions beyond the scope 1, 2, and 3 goals. By freeing up available capacity to balance energy demand at peak times, Capacity Market participants avoid the need for large, new fossil- fuelled power plants to be built and aid the integration of further renewable sources onto the grid. Generating power on-site allows organisations to participate in other non-load curtailing flexibility schemes. The business is now able to leverage its CHP plants to access additional market mechanisms in the future, and further diversify potential revenue streams.
The efficient use of energy is vital to achieving the environmental sustainability that our planet needs and the economic sustainability that cooperative owner-farmers require. By partnering with companies like Enel X, food manufactuters can meet ambitious science-based sustainability goals, reduce carbon emissions and generate new revenue streams from participating in grid flexibility programs, all while maintaining efficient production processes.
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