ENERGY

How your business can benefit from the circular economy

From September issue of NZ Manufacturer www.nzmanufacturer.co.nz Small Business and Manufacturing Minister Andrew Bayly, along with Climate Change Minister Simon Watts, introduced a new MBIE report showing circular opportunities for the manufacturing sector. “Manufacturing is a sleeping giant for New Zealand’s economy; with the right tools and support, manufacturing has the potential to supercharge our economic growth,” Bayly said. “The manufacturing sector accounts for 10 per cent of GDP, 60 per cent of our exports, and employs 230,000 people.” Increasing demand for low-carbon-manufactured goods “Globally there is increasing demand for low-carbon manufactured products. Our agile and innovative manufacturers with their strong green reputation and access to relatively low-carbon electricity are well positioned to take advantage of this demand,” he added. Watts emphasises that the manufacturing sector is already heading in the right direction and is supporting New Zealand in meeting its climate change targets. However, there is still more to be done. “That’s why we are providing manufacturers with information to support them to adapt their business to be less carbon-intensive, with the launch of a new online toolbox, report and dataset.” Circular economy critical for future of manufacturing The circular economy is critical component of modern manufacturing. Adopting circular economy principles can help you to significantly reduce costs while making your business more sustainable. The circular economy (CE) is a concept that changes how we produce and consume goods. It uses systems thinking to design out waste and pollution, keep products and materials in use and regenerate natural systems. CE moves us away from the current ‘linear’ model of producing and consuming goods and services: ‘take-make-dispose’. It has economic, environmental and social benefits. It is also closely linked to the Bioeconomy, which uses renewable biological resources to produce food, products, and energy. […]

Reducing manufacturing emissions

Hon Andrew Bayly, Minister of Manufacturing Manufacturing is a significant sector for New Zealand. It employs 230,000 people and accounts for nearly 10 per cent of GDP and 60 per cent of exports. I often describe it as a “sleeping giant” for New Zealand’s economy, because its significance is not well understood. When I travel around the country promoting the manufacturing sector, one of the things I often remind people is that a career in manufacturing is a career in a highly advanced, technical field. A lesser-known fact is that approximately a quarter of all New Zealand’s business-led research and development comes from the manufacturing sector, meaning manufacturing is a key driver of innovation. However, to support this innovation, manufacturers need the right tools and resources. I know from talking to manufacturers that access to information and expert guidance on how to upskill and improve productivity is challenging. Which is why I was delighted to recently launch a set of tools to help empower manufacturers to grow their business and reduce their emissions. Emissions and waste mapping The first is a report that identifies and maps the manufacturing sector’s emissions and waste patterns. Titled ‘Mapping Emissions and Waste Stream Profiles, and Opportunities for Achieving Net-Zero Circular Advanced Manufacturing’, the report is based on waste and emissions data from 2019 (the most recent data available). It provides a comprehensive picture of waste, emissions, and opportunities to improve sustainability across the seven main manufacturing subsectors: food and beverage, machinery and equipment, other manufacturing, metal and metal products, chemicals and refining, wood and paper, and plastics and rubber. The report details challenges and opportunities for the sector with a goal of helping manufacturers identify opportunities to adopt low-emissions technology and increase circular manufacturing practices which, in turn, will help us reduce our […]

Harnessing the Power of Biogas: A Sustainable Opportunity for Industrial Manufacturing

From February issue of NZ Manufacturer -By Insa Errey While renewable energy has been making strides in various sectors, the potential of biogas in revolutionising industrial manufacturing remains largely untapped in New Zealand. This article explores the opportunities and benefits of exploring the opportunities of biogas in industrial processes. Biogas production involves the anaerobic digestion of organic materials such as agricultural residues, food waste, and wastewater. This process utilises microorganisms to degrade the organic material into methane. A byproduct from anaerobic digestion is digestate which can be utilised as biofertilisers. Reduction of Greenhouse Gas Emissions: Biogas utilisation has multiple advantage in reducing a site’s greenhouse gas emission. First, anaerobic digestion prevents the release of methane—a potent greenhouse gas—into the atmosphere. By capturing and utilising methane as biogas, greenhouse gas emissions from waste decomposition can be reduced. Secondly, biogas can be cleaned, known as green gas or biomethane. It can be used directly in on-site as process heat, reducing the need to purchase the required gas for heating from external parties and offering a cleaner alternative with lower carbon emissions. Waste Valorisation: The industrial sector generates substantial amounts of organic waste from processing residues that can end up in landfills or council wastewater treatment facilities. Biogas production provides a valuable solution by converting these waste materials into valuable energy and fertiliser resources. This waste valorisation not only reduces the environmental impact but also promotes a circular economy approach within the manufacturing process. Producing certified biofertiliser can contribute to increasing food production. Cost-Effective Energy Source: Biogas can serve as a cost-effective energy source for industrial manufacturing. By harnessing locally available organic waste, sites can create a steady and reliable source of useable energy, reducing dependence on traditional fossil fuels. Energy Independence: Most manufacturing sites rely heavily on external energy sources, making them […]

Navigating energy intensity and energy efficiency in manufacturing

-By Insa Errey In advanced manufacturing, the concepts of energy intensity and energy efficiency play crucial roles in influencing both operational costs and emissions profile. While both terms are interconnected, they represent distinct parts of energy management. Understanding these dynamics is crucial as businesses seek to balance production demands with the imperative of sustainable energy use. Energy Intensity in Manufacturing: A Measure of Production Impact Energy intensity is a measure of the energy consumed per unit of output, such as the energy required to produce a certain quantity of goods. Typically expressed in terms of energy units per unit of physical output. Energy intensity provides insight into the overall energy consumption patterns within a manufacturing facility. High energy intensity in manufacturing suggests that significant energy resources are being used to manufacture a product. High energy intensive processes may use a disproportionate amount of energy to achieve their production goals, signalling inefficiencies that can impact both costs and emissions. On the other hand, low energy intensity indicates a more efficient use of energy resources. Trending this even monthly will enable visibility of process operations, signalling if processes are running differently and have shifted. Energy Efficiency: Improving Manufacturing Practices Energy efficiency, on the other hand, focuses on optimising the utilisation of energy inputs to maximise output. It is the ratio of useful energy out to the total energy in. In manufacturing, energy efficiency measures the effectiveness of processes in converting energy resources into final products, emphasizing the opportunities to reduce loss and waste. Energy efficiency in manufacturing involves optimising processes and technologies to minimise energy consumption while maintaining or enhancing productivity. Improving energy efficiency in this context includes adopting advanced machinery, implementing effective energy management systems, and embracing best practices. Often invest is required such as conducting energy audits, energy transition plans […]

AoFrio named winner in BIER’s global ‘The Cool Challenge’

Paving the way for a more sustainable commercial refrigeration industry AoFrio, a global technology company headquartered in New Zealand, has been named the winner of the ‘Incremental Change in Energy efficiency’ category at The Cool Challenge, an initiative led by the Beverage Industry Environmental Roundtable (BIER). This achievement marks an important milestone for AoFrio, a global leader in creating and manufacturing cutting-edge and sustainable Internet of Things (IoT) solutions and high efficiency motors for commercial refrigeration. BIER is a coalition of leading global beverage companies working together to advance environmental sustainability within the beverage sector. Its new initiative, The Cool Challenge, invited innovators to revolutionise commercial refrigeration related to chilled, canned, or bottled beverages at their point of sale, and shape a sustainable future for the industry. AoFrio entered the ‘Incremental Change in Energy efficiency’ category, which required applicants to present solutions which optimise energy efficiency by leveraging existing compressor technology and pushing boundaries. Entries were judged by global sustainability leads amongst the likes of Heineken, AB InBev, and Coca-Cola. AoFrio received the win for its solution ‘AoFrio Inside’, which showcased the energy efficiency savings its customers can achieve if they implement the breadth of its hardware and SaaS offering in their coolers. AoFrio can reduce its customers’ energy-use by an average of 54% when compared to a basic cooler of the same capacity*. AoFrio Inside is a complete refrigeration solution that combines the best of hardware, software, and cloud-based services – it includes the following: AoFrio ECR 2 motor – a high-efficiency motor that uses significantly less power than shaded pole motors, saving energy and money. AoFrio SCS controller – a smart IoT controller that connects your cooler to the AoFrio ecosystem and enables you to monitor and control the cooler’s temperature, locations, sales, power consumption, and operational effectiveness. […]

Carbon emissions on the way down

Robert McLachlan, Professor in Applied Mathematics, Massey University. Ian Mason, Adjunct Senior Fellow in Renewable Energy Systems Engineering, University of Canterbury. It may have been largely overlooked in the election debates, but New Zealand’s greenhouse gas emissions are finally on the way down. Annual emissions of carbon dioxide from the burning of fossil fuels are the lowest since 1999 and the 12-month renewable share of electricity is back above 90% for the first time since 1981. The Ministry for the Environment has advised New Zealand is on track to meet the first (2022-2025) carbon budget. All this can be attributed to a range of factors, including fossil gas running low, full hydro lakes, high petrol prices and working from home. But climate policies such as the Emissions Trading Scheme (NZ ETS), the clean car discount and the Climate Emergency Response Fund (CERF) have made a significant contribution to the turnaround. Current decarbonisation policies have and will continue to deliver real emissions cuts, provided they remain in place. It is therefore disconcerting that the National Party plans to take $2.3 billion from the CERF (almost two-thirds of the fund’s mid-2022 balance) to pay for tax cuts. The argument that individual households will use tax cuts to make their own decarbonisation decisions is unsupported by evidence and lacks credibility. The Labour Party has also dipped into this fund, taking $236 million to pay for rebates for household installations of solar panels and batteries, and community energy schemes. These may produce some as yet unquantified emissions cuts. Government funding is working Allocations from the Government Investment in Decarbonising Industry (GIDI) fund to NZ Steel and Fonterra show direct and measurable avoidance of emissions. The installation of an electric furnace at NZ Steel to utilise scrap will save 1% (800,000 tonnes of CO₂-equivalent emissions, or tCO₂e) of New Zealand’s 2021 gross emissions. Support for Fonterra […]

Serious about reducing your carbon footprint? Read on!

Chances are you’re already talking about carbon – and climate change too. If not, you need to start! But when you’re a busy manufacturer, getting to grips with carbon can be daunting, we know. So in this first of two articles, Head of Carbon at thinkstep-anz Nicky Andrews explains how to get started and keep making progress. Nicky Andrews, thinkstep-anz Head of Carbon. Understanding carbon emissions What are carbon emissions? ‘Carbon emissions’ is shorthand for ‘greenhouse gas emissions’ (GHGs) – the gases that are trapping heat in Earth’s atmosphere and warming our planet. There are many types of GHGs. Common ones include carbon dioxide (CO2), methane (CH4) and nitrous oxide (N2O). Why do manufacturers need to reduce carbon emissions? You’ll be helping to keep global warming to below 1.5°C and meeting the goals of the Paris Agreement. There are many good business reasons, too, for manufacturers to tackle carbon. How does my business benefit from reducing emissions? First up, you’ll reduce your risks. For example, if the government introduces a carbon tax, you’ll be prepared. You’ll strengthen your brand. Customers may already be asking what you’re doing to reduce your emissions. That’s because they (and their customers) are increasingly seeking lower-carbon products. You’ll strengthen relationships. For example, you’ll keep your investors happy if you manage your emissions (and their money) carefully. Your team will value your efforts too. Many people want to work for a business that takes climate action seriously. Finally, because winkling out carbon involves delving into everything you do, you’ll spot opportunities to reduce your costs. What are the three Scopes (types) of emissions? The international Greenhouse Gas Protocol is one of the standards that govern how organisations measure and reduce their carbon emissions. The Protocol splits carbon into three groups (Scopes). Diagram of the Scopes: thinkstep-anz, […]

Slow train coming: only a genuine shift to rail will put NZ on track to reduce emissions

-Philip Laird, Honourary Principal Fellow, University of Wollongong Both the Labour government and the opposition National Party have now released major transport polices that put the emphasis on maintaining and expanding roads. The cost and priority of various projects will clearly be an election issue. But at the heart of the debate lies an inconvenient truth about climate change: encouraging road transport while needing to reduce carbon emissions simply does not add up. We can see this tension in transport agency Waka Kotahi’s own policy statements: road safety and better travel options on the one hand, addressing sustainability on the other. But transport is responsible for 17% of New Zealand’s total greenhouse gas emissions. Furthermore, road vehicle use has been increasing, as has the popularity of larger cars and SUVs that create more emissions per kilometre. Road congestion has become worse, with the popular response being to expand road capacity. Hence the present government’s recently announced plans for a second harbour crossing in Auckland involving two road tunnels. And the main thrust of National’s Transport for the Future policy is on more urban and intercity roads. Both Labour and National favour a second Mount Victoria tunnel in Wellington. In the background sits the government’s Rail Plan, which sets out the “vision and priorities for rail over the next decade and beyond”. But given the clear need for New Zealand’s transport policies to change, the planned improvements need to be on a fast track. Light rail right next door Cars and planes are convenient, but both have low energy efficiency compared to rail. Data source: Greenhouse gas reporting: conversion factors 2019 A car’s carbon emissions per passenger kilometre can be around four times that of domestic rail (as shown by the graph above, based on UK data). The government’s transport plans for Auckland do include light rail, but National has promised to scrap the […]

Kayasand receives backing from NZGIF to reduce carbon emissions from concrete

Kayasand, a distributor of premium sand manufacturing technology, is opening its first V7 high-technology manufacturing demonstration plant in New Zealand, which uses waste products such as recycled glass, concrete and slag, and turns them into premium sand for concrete. Kayasand has received the backing of New Zealand Green Investment Finance (NZGIF) via a $3.5 million equity investment. The green investment bank was established to accelerate investment that helps reduce greenhouse gas emissions. A further $1.8 million of private investment has been secured alongside the NZGIF investment bringing the total raise to $5.3 million. Natural sand supplies are becoming harder to access and traditional concrete manufacturing processes, including the impacts of sand dredging on coastlines such as Pakiri, 100km north of Auckland, are not sustainable over the longer-term. Dr Bram Smith, Kayasand General Manager, says “Our technology can reduce or in cases eliminates the need for natural sand dredging. It uses by-products and recycled materials such as quarry crusher dust and recycled glass to manufacture a sand of such quality that it makes stronger concrete than natural sand when mixed with cement. Our goal is to reduce carbon emissions from concrete production by up to 20% using this method.” Kayasand technology is used in over 300 plants across Japan, China, India, and Australia. NZGIF Chief Executive, Craig Weise, says the deal is an important step and is a boost for the construction sector and consumers who are eagerly looking for more sustainable building materials. He says, “Auckland’s infrastructure requirements alone are projected to be $26 billion over the next decade and if New Zealand is going to meet its CO2 emission reduction targets, we need to find alternative manufacturing and building methods. We are delighted to invest in Kayasand to help deliver its services to the construction sector and to support […]

Matahio Energy completes acquisition of onshore assets in Taranaki

Matahio Energy has completed the acquisition of a portfolio of six onshore oil and gas licenses in the Taranaki Basin, NZ. Matahio will be the operator of these licenses, holding 100% participating interest in four licenses, and 70% interest in the remaining two licenses. Of the six licenses, three are currently producing. The sale and purchase agreement between the parties was signed in March 2022. All required approvals for the relevant New Zealand regulatory authorities have been obtained to complete this transaction. Key highlights of the transaction: – Operatorship of two fields, namely Cheal and Sidewinder, which are currently producing a total of 1.4 Kboepd (thousand barrels of oil equivalent per day), net to Matahio. Cheal and Sidewinder are well-established, prolific fields, which have produced over 5 MM bbls (million barrels of oil) to date, since the first oil in 2008. – Matahio is adding 2 MM boe (million barrels of oil equivalent) 2P reserves (Net, effective date 1st January 2023). At prevailing oil prices and contemporary OPEX rates, the Cheal and Sidewinder fields are expected to generate positive cash flow until 2030. The New Zealand business’s EBITDA for the calendar year 2022 was NZD$29 MM. – The transaction also includes full technical and operational teams, based in New Plymouth, who have a track record in delivering strong health, safety & environment (HSE) and production performance. Most notably, recent production optimisation efforts have resulted in production rates returning to 2015 levels without drilling any new wells. – Matahio has crafted a multi-year development programme consisting of infill and step-out drilling as well as the appraisal of newer fields in the Puka license (which was 100% acquired by Matahio) to be tied back to existing operated infrastructure. This organic growth programme targets an additional 3.8 MM boe and, if successful, will […]

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