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By Mike Pehanich, Plant Operations Editor | 02/13/2006
Be honest: Who took energy management seriously a generation ago?
|Snack maker Kettle Foods installed a 114-kw solar electric system on the plant and headquarters roofs in September 2003. The firm has saved $8,400 annually and is reducing its CO2 emissions considerably.
If you did, you were way ahead of the curve, and we hope you and your crystal ball are still reaping the rewards and accolades you so richly deserve. More than likely, however, you were a long way from seeing the influence of energy supply and prices on your company back then.
Odds are your company is neither ignorant nor nonchalant about energy use and purchasing anymore. Five years from now you will probably look back at your company’s earliest attempts to manage energy as the equivalent of football’s leather helmet era.
Soaring natural gas and fuel costs over the past year have sent utility costs into the stratosphere. Conditions call for a comprehensive energy strategy. The alternative is to suffer the competitive consequences of standing pat while utility costs continue to take their toll on profits.
That old memo to turn off the lights and power switches at the end of the shift was a noble gesture in its time, but sophisticated energy management today requires a broad range of knowledge, awareness, technologies and disciplines. Consider:
Following are how a few noteworthy processors, large and small, are addressing the energy challenge.
“We still are crossing our fingers to see the impact of energy prices on our business,” says John Tyson, chairman of Tyson Foods, Springdale, Ark. The truth is energy had become a target at Tyson well before the last fuel price leap.
Companies with heightened energy awareness and aggressive management strategies and objectives are discovering alternative fuels in their midst.
“Over the past two or three years, we have converted a couple of lagoons for methane gas,” said Tyson. “We have been exploring bio-diesel and other alternative fuels for credits within the new energy bill.”
The energy bill, which rewards companies utilizing alternative fuels from certain organic materials, offers plenty of opportunities for a company like Tyson. Animal fat is a viable fuel source. And the protein giant has plenty of it.
“We’re using a lot of beef tallow, using a lot of blends [of organic materials] and taking advantage of the bio-diesel credit offerings inside the new energy bill,” added Tyson. “We hope we can find the best technologies to utilize [the tallow].”
Tyson has been testing B5, B10 and B20 blends of bio-diesel fuel in its truck fleet. “We are also burning beef tallow in our boilers. It’s a good power source,” adds Dick Bond, Tyson Foods’ president and chief operating officer. “We are on an energy conservation push at all our facilities. We are making a strong, concerted effort, emphasizing conservation, burning alternative fuels, doing everything we can do reduce our energy usage.”
Tyson purchases fuel on the commodities market and locks into a favorable cost position. The bulk of its fuel purchase is natural gas.
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