ECA RESOURCE EFFICIENCY PROGRAM Efficient technical solutions bring cost reduction RESOURCE EFFICIENCY CASE STUDY and improve product quality and safety This technical solution may be an example for other dairies looking for cost reduction. BEFORE Old CIP station CIP flow BE EFFICIENT – IT PAYS OFF The main CIP circuit was used for Improving resource efficiency in a dairy can result in an increased profit margin cleaning of several production Fresh water departments including milk reception, and higher product quality and safety milk preparation, skimmed milk Heat exchenger Manufacturers often underestimate benefits of resource efficiency and mistakenly assume that efficiency production, and butter production. Return Disin- improvements require unaffordable investments. In fact, sizeable input savings may be achieved through low- or Disinfection All utilized washing water, soda and water Alkali Acid fection even no-cost operational measures, and investments in resource efficiency do pay off. chemical solutions were discharged Fresh Alkali without recovery. This led to high Acid water Flow meter Flow pump consumption of water and chemicals COMPANY DAIRY IN THE CAUCASUS for washing: • 10,116 m3/year of water; Sante GMT Products is a dairy and juice manufacturer in Georgia processing about 100 tons of raw milk per Y • 9.27 tons/year of caustic soda; day to produce over 100 products such as milk, cheese, butter, and yogurts. The company is committed to continuous advancement and has significantly progressed in bringing its operations to international standards. • 5.96 tons/year of hydrochloric acid. CIP return Y In 2011, Sante GMT worked with IFC focusing on reducing consumption of energy, water and other resources while enhancing quality and safety of its produce. AFTER Upgraded CIP station CHALLENGE MINIMIZE UTILITY BILL Acid Soda The costs of inputs, namely water, gas and electricity, revenue, with a total benefit of $630,000 annually. Fresh water are relatively high in Georgia. Sante GMT was interested Sante GMT has taken a phased-in approach to the The CIP station was upgraded with in learning how to use them more efficiently to have implementation of resource efficiency improvements a CIP return circuit including: a lower bill. IFC worked with the company to identify focusing on measures with the triple-effect of • additional tanks for soda and opportunities and decrease production costs while also reduced operational costs, higher product quality, Fresh Recovered Recovered acid; water Acid Soda Acid Soda increasing quality and safety of the dairy products. and greater environmental safety: Cleaning-in-Place • a rinse water tank to feed the system (CIP) rehabilitation, product cooling system Scavenge water for washing of floors; By investing $1.4 mln the company can reduce its Return spending on energy and water and generate new improvement, waste processing into a valued output. Pump • a new filtering system for the recovered rinse water; Heat Excharger Acid and Soda recovery • an additional control and “IFC was instrumental in helping Sante GMT Products to understand how to use utilities in a during typical cicles regulation system. more efficient manner. Based on outcomes of the energy audit conducted by IFC, Sante GMT To Raw Milk receipt To Milk preparation Products prepared its multi-stage plan and is well equipped to gradually implement required ef- cleaning circuit cleaning circuit ficiency improvements.” (Rinse 2,3,4) Annie Kajaia, General Director, Sante GMT Products Rinse Discharged Discharged Water to sewage to sewage Tank SOLUTION Water consumption Energy consumption d whey Wasted (Rinse 1) (acid and soda discharged every 7-8 cycles) Water to floor cleaning The new system enables recovery of caustic soda and acid solution and would lead to saving: • 7.9 t/year of soda; $65,000 $175,000 $390,000 • 5 t/year of acid; • about 1,100 m3/year of fresh water used in the solutions (if the latter are discharged after 6-7 cleaning cycles). Rinse water, except water from the first rinse cycle, would be used for floor cleaning. In this case, the total amount of fresh How can the company gain $630,000 per year? water saved from the project implementation is about 4,500 m3/year (including 1,100 m3/year by the recovery of soda and caustic solutions, and 3,400 m3/year by the rinse water recycling). In partnership with 36/1 Bolshaya Molchanovka Street ecaere@ifc.org 121069, Russia, Moscow T: +7 495 411 7555 ifc.org 2015 HOW MUCH TO SAVE? SEIZE THE OPPORTUNITY AND ACT Sante GMT followed the IFC’s two-step assessment methodology and started by finding out how much it could The three resource efficiency measures allowed the company to enjoy the greatest bulk of savings and impact save on input costs. As the diagnostics showed, Sante GMT consumes about twice as much energy and water on product quality and new income. Other measures proposed to Sante GMT include, for instance, installation as industry good practice players. Subsequently, by raising efficiency of its energy and water use, Sante GMT of variable speed drives on water supply pumps, condensate recovery, milk-cooling water recycle, renewal of the can materialize significant cost savings. In addition, whey – a liquid by-product discharged as waste, could be transformers station. processed into a new valued product and generate additional profit. Energy and water efficiency and waste management were identified to bring the largest and most attractive savings for the manufacturer. Cleaning-in-place (CIP) Improvement of milk cooling – From waste to revenue – system rehabilitation decentralized Freon compressors system whey processing The same volumes of dairy output could be produced with just about half of Sante’s energy and water costs DIAGNOSTICS: BENCHMARK YOUR PERFORMANCE Water Sante GMT The two-step assessment approach proved to (as of 2011) 6.24 m3 be a good strategy for any company willing to control its use of resources. The first step – Sante GMT 4.9 m3 (potential) diagnostics: Industry average 3.8 m3 • evaluates the company’s current performance; Energy • assesses potential improvements; Sante GMT (as of 2011) 610 kWh • identifies priorities for seizing efficiency opportunities. Sante GMT 512 kWh Rehabilitation and full automation of Old centralized ammonia chillers were For Sante GMT, the most efficient (potential) For this, a company needs to collect data on the CIP system provided for reuse of replaced with more efficient independent waste management strategy is to Industry average 340 kWh its resource consumption and analyze against rinsing water and recovery of caustic freon ones giving the flexibility of produce soft cheese from whey. industry averages the so-called Resource soda and acid. temperature control at different stages Sante GMT’s specific energy and water Efficiency benchmarking. Potential for of processing and storage. consumption, per ton of raw milk reduction is evaluated. Costs were reduced and effectiveness Along with better insulation in cold storage Cheese production would bring Sante of the cleaning process surged. This rooms this saves energy and improves GMT the largest additional profit at investment also ensures higher and safety in the production process. the lowest cost. more consistent product quality. WHAT IS FEASIBLE TO ACHIEVE? ASSESSMENT: ELABORATE VIABLE Investment required: $117,000 Investment required: $310,000 Investment required: $100,000 At the next stage, IFC helped the company analyze IMPROVEMENT MEASURES Annual savings: Annual savings: Additional annual revenue: identified opportunities, select viable technical Once the diagnostics is complete, it may be $23,000 $40,000 $390,000 measures and set priorities for projects implementation. worthwhile to conduct an in-depth The proposed program of measures would contribute to assessment to: reduction in Sante’s water and energy use to 4.9 m3 and 512 • analyze technical and financial viability of kWh per ton of raw milk, respectively. the identified priority areas; SOME ACTIONS TO CONSIDER IN THE DAIRY SECTOR In total, a targeted investment of $1.4 million would • come up with a list of specific technical • Good housekeeping. No- and low-cost operational • Water reuse and recycling . Good practices for improvement measures. improvements help minimize consumption of resources and facility cleaning, e.g., automated CIP systems should be lead to $630,000 annual benefits including savings on: • 140,000 m3 of gas A clear resource efficiency action plan bring substantial savings of up to 20% on energy and water adopted. CIP is a system designed for automatic cleaning • 735 MWh of electricity is developed to pursue the identified costs. In addition to greater productivity, such measures of equipment and helps maintain hygiene during dairy • 23,000 m3 of water enhancement opportunities. contribute to better product quality and safer working processing, which is critical for food safety, product quality, environment. By eliminating water leakages, improving and shelf life. • 550 tons of CO2 reduction insulation, paying attention to staff training, the company • Upgrade of outdated utilities. It is common for may significantly enhance efficiency. For instance, low-cost manufacturing companies to have state-of-the-art SOUND BUSINESS STRATEGY measures implemented by Sante would bring about $30,000 production equipment, while overlooking inefficiencies that of annual savings. occur in outdated utilities generating steam, chilled water Resource efficiency is about optimizing production processes to minimize consumption of inputs such as energy, water, • Synergies between cooling and heating. An efficient and electricity for production purposes. and raw materials, and generate less waste and emissions, while maximizing valued output. It is thus not a distraction cooling system enables rapid milk and semi-finished • Efficient waste management. Whey is a liquid by- from core business operations, but, rather, a sound strategy to improve financial performance. For a manufacturing products cooling and is critical for product quality and a product of the cheese making process. If discharged company higher efficiency means clear advantages: longer shelf life. Large savings of energy may be achieved untreated, as is often the case, whey causes high water  Improved bottom line  Greater competitiveness  Reduced risk  Regulatory compliance through heat recovery for both heating and cooling pollution. When properly managed, whey may generate (lower input and and a better (e.g., through lower (e.g., with laws on waste, operations in milk pasteurizers and heat exchangers, waste additional revenue, being used for production of food, waste treatment costs, public image dependence on emissions, use of hazardous heat recovery from the refrigeration plant, compressors, feed, energy, or for recovery of valuable nutrients. environmental payments) hazardous materials) materials) and boilers. For example, Sante GMT may use heat from chillers for the hot storage rooms and space heating needs.