UK horticulture has made significant strides in increasing energy efficiency in recent years, primarily by reducing the amount of energy used. Better control of heating and lighting, good insulation and better ventilation have all contributed to this reduction and, there continue to be developments in a number of sectors.
“As tomato growers we play a big role in the general glasshouse situation and energy efficient practices continue to be adopted on a wide scale,” says Gerry Hayman, executive officer of the British Tomato Growers’ Association.
According to Hayman one of the most exciting technical opportunities for the industry involves Combined Heat and Power (CHP). This requires the installation of electricity-generating stations, fuelled by gas, into tomato nurseries. The electricity generated is supplied to local homes, hospitals and businesses via the national grid and the generated heat is then used to heat the glasshouses.
The process in itself is not new, says Hayman, but one grower in particular has recorded some unusual results. “John Jones invested in a combined heat and power installation with a micro-turbine and has been able to sell the electricity himself. The result of the installation seems to have been that his yields have shot up by 20 per cent, although that is difficult to quantify since it was a very good summer anyway,” Hayman says.
Loss of yield is a major concern to tomato growers but other research projects involving thermal screens and temperature integration aim to increase energy efficiency without affecting yields.
“We have recently completed the first year of trials with thermal screens,” says Chris Plackett from the Farm Energy Centre. “Leading growers in the Netherlands are already adopting this technology but in the UK there is a perception that energy saving is at the expense of yields. Now that the first year has been completed we can see there was no measurable difference in yields, while energy savings were found to be in the region of 14 per cent. Although the results are encouraging they are not conclusive and if you look at the capital cost required and the savings accrued then this is not yet an attractive option for growers. The cost savings are £1 a square metre and at present the cost of installing a screen is £5 per sqm. Although the first year’s results were promising, we need better results in the second year. “What we will now focus on is achieving greater energy savings without putting crop yields at risk and that means looking at the other advantages of screen material. If you can achieve yield advantages by manipulating the climate underneath the screen that would be good a start - that is where environmental conditions are able to be controlled.”
The temperature integration project has now come to its conclusion, says Plackett. “This is another area where we are aiming to save energy without affecting yields. So far we have seen eight-10 per cent energy savings and an additional advantage was that because of the increased care and concern for the greenhouse environment the crops responded better and so we also saw a yield increase of up to 10 per cent. Typically greenhouse growers work on fixed temperatures, but there will always be a time when these points are exceeded. The method of temperature integration introduces a tolerance band and builds what are known as heating credits.”
Ultimately, says Plackett, energy costs are going up and growers increasingly need to meet environmental standards. “Although growers are not yet rushing out to buy this type of equipment they are certainly more receptive than in the past,” he says. “What growers are still most concerned about is that this kind of technology will lead to a loss of crop.”
In almost all instances where a business uses refrigeration it is the single biggest energy cost, says John Dye, managing director at IMA Cooling Systems. “Typically a business requiring chilled storage would spend 75 per cent of its total energy budget on electricity to run the refrigeration plant. We regularly survey sites where we find that doors to chilled spaces are permanently open or not working at all, the heat rejecting plant is either not serviced or air flows have been restricted by negligent storage of pallets, boxes or other materials and is subsequently very inefficient.
“These and other poor practices lead to inflated electricity costs, poor performance of plant and ultimately can stress plant to breaking point whereby the actual produce in storage suffers unnecessary stress. This affects the costs to the business not just in energy bills but also in the reworking of produce to overcome the effects of poor storage, raw material wastage and increased refrigeration repair bills.”
IMA Cooling Systems is one of the refrigeration industry’s leading manufacturer’s and installers of specialist cooling equipment for the fresh produce industry. It manufactures, installs and services high humidity coolers, low temperature water chillers, wet cooler blast chillers, ultrasonic fogging systems, fabric sock cooling systems, industrial ice machines and central glycol cooling plants.”
“Regulations rarely prompt businesses to react as quickly as commercial pressures,” Dye continues. “As such the Climate Change Levy, by introducing increased energy costs and rewarding energy efficient companies has had a dramatic effect on the willingness to invest in energy efficient equipment and practices. It would seem inevitable that further taxation will be used to continue to encourage business to be prudent with their use of all energy.
“Energy efficient plant is something we have had much success in selling in the last 12 months. The effects of the Climate Change Levy combined with the Enhanced Capital Allowance Scheme have made it much easier for us to justify the additional capital expense of an energy efficient system. We have seen almost 100 per cent take up of energy efficient options and with consumptions of plant reduced by in excess of 25 per cent, you can see how a business which spends 75 per cent of its energy budget on refrigeration can very quickly benefit from this investment. The ECA Scheme allows all of the investment in the energy saving devices to be offset against tax in the first year of investment, thereby, for a company earning profit in the 19 per cent bracket, a saving in the region of £1,500 can be made on an energy saving investment of £10,000. Combine this with the actual energy cost saving and paybacks are typically 12 months or less. IMA will continue to concentrate its efforts on delivering a first class service, installing energy efficient systems which extend the shelf life of our customers’ valuable fresh produce. In the last 12 months we have seen a 50 per cent growth in turnover and a similar growth in both engineering and administration personnel. We have completed major works for Lincolnshire Field Produce, Uniq Prepared Foods, Kettle Produce, TA Smith & Co, TH Clements, Exotic Farm Produce, Freshlink Distribution, and many other companies within the fresh produce sector.”
Verco’s new Kingston cabinet uses 40 per cent less energy and provides 17 per cent more merchandising space. It also offers low energy consumption, low noise output and lower installation costs.
In recent tests comparing Verco’s 1.95m and 2.5m Kingston against Cambridge cabinets of the same size, the new integral cabinet uses approximately 40 per cent less energy in a 24-hour period.
The use of horizontal scroll compressors in the Kingston has also allowed Verto to produce a low-front design of just 350mm, 182mm lower than the Cambridge. This provides a retailer with more than 17 per cent more merchandising space than conventional cabinets.
Sales and marketing director Colin Jones says that with energy costs rising and the recent introduction of the climate change levy, retailers can make significant savings on energy costs in the lifetime of the Kingston, while actually merchandising more product. The range offers three nominal widths - 1.25m, 1.95m and 2.5m - with a standard 2035mm height and depth of 815mm and is available with Verco’s integrated styling and in corporate colour schemes, both features that are proving popular across all ranges.
Energy conservation has and always will be a high priority in the design of any refrigeration system, says Paul Kennett at Farm Refrigeration. “We consider it our duty, not only to our customers but also to the environment, to conserve energy wherever we can.
“At Farm Refrigeration we specialise in controlled atmosphere fruit stores for long term storage of apples and pears using energy efficient systems. General chill distribution storage complexes, specialist cooling systems for soft fruit and vegetables, ripening rooms for stone fruit and pears, food preparation areas, packhouse cooling and air conditioning.
“Our first consideration is the insulation specification, followed by good sound engineering design, with specific emphasis on heat exchange surfaces and methods of defrost. A recent new innovation is the use of small fractional kilowatt (LPA) Liquid Pressure Amplification pumps that can reduce annual energy costs of the plant by as much as 35 per cent. The future will demand that energy efficiency becomes the key issue for designers of cooling equipment.”
Worldwide energy usage in the industry continues to be a major focus of environmental summits, says David Harris, managing director of ACS Refrigeration. “The UK government signed the Kyoto Agreement, in 2001 and subsequently introduced the Climate Change Levy on all non-domestic energy use as part of its commitment to combat global warming. The levy is charged on all energy supplied and has typically added 8-15 per cent to business’ energy bills.
“In November 1999 the Chancellor, Gordon Brown, announced his support for business investment in energy efficient technologies under the Climate Change Levy package. This allowed for the introduction of a 100 per cent first year Enhanced Capital Allowance scheme, and a £50m fund for energy efficiency and renewable materials. The benefits of this are that Capital allowances allow the costs of capital assets to be written off against a business’ taxable profits. They take the place of depreciation charged in the commercial accounts, which is not allowed for tax. The main rate of allowances for plant and machinery is 25 per cent a year on the reducing balance basis, which spreads the benefit over a number of years (about 95 per cent of the cost is relieved in eight years).
“The scheme supports products that meet the relevant energy efficient criteria and must comply with the products on the Energy Technology Product List. These include Combined Heat and Power (CHP), boilers, motors, variable speed drives, lighting, pipe insulation materials, thermal screens and refrigeration.
“All businesses paying income tax or corporation tax are able to claim for an ECA Qualifying expenditure can include the actual cost of buying the equipment as well as direct costs. These might include the costs of transport, project management costs, installation or modifications to existing refrigeration and air conditioning units. In addition, professional fees only qualify if they are directly related to the purchase and installation of refrigeration and air conditioning equipment. Any assessments or design work are generally too remote from the acquisition and installation to qualify; however this depends on the particular circumstances of each case.
“If you are paying for the qualifying products in instalments then the normal tax rules apply, but generally you can claim the allowances as you incur the expenditure. As ECAs are a tax relief given through the tax system by reducing the taxable profits of a business, they are claimed in the same way as other Capital Allowances on the Corporation Tax Return for companies and on the Income Tax Return for individuals and partnerships.
“Every year more than £12 billion worth of energy is wasted in the UK alone with refrigeration being responsible for its fair share. Refrigeration is expensive to run and can be the main outgoing for many users, accounting for up to 60-70 per cent of total energy consumption.
“The potential saving is substantial and should not be passed up if the opportunity is presented. Perhaps more importantly, as the business world is becoming increasingly accountable for its part in the growing ecological problem, it faces increasing pressure from its publics to continually improve its responsibility to the environment. The ECA scheme provides a perfect opportunity to show a willingness to help the problem whilst saving money at the same time.”
READY FOR ACTION
Action Energy is a programme run by the Carbon Trust and funded by the Department for Environment, Food and Rural Affairs, The Scottish Executive, Invest Northern Ireland and the National Assembly for Wales. It is designed to help businesses and public sector organisations cut energy costs through the provision of free, professional advice and assistance.
It offers a range of free products and services for business and public sector organizations to save energy and money.
• Free on-site Action Energy Surveys - a visit by an energy expert will identify achievable savings and provide a tailored action plan.
• Action Energy Loans - Interest-free loans of between £5,000 and £50,000 for small and medium-sized enterprises for investment in energy-saving equipment.
• The Enhanced Capital Allowance scheme - a tax-break on investments in energy-saving technologies and products.
• Design Advice - for professional, independent and objective advice on energy efficient and environmentally sound building design.
SUSTAINABLE GOALS
A new team of experts will help government meets its aims of combating climate change and delivering reliable, competitive and affordable energy The Sustainable Energy Policy Advisory Board will help bring high-level expert advice to bear on delivery of the government’s Energy White Paper, which set a long-term commitment to four key goals embracing environment, competitiveness, security and affordability.
Trade and industry secretary Patricia Hewitt says: “ This is the final part of the machinery we are putting in place to deliver the Energy White Paper. The Board will have a crucial role in advising Ministers and the Sustainable Energy Policy Network on the implementation of the White Paper. It will advise us on our policies and programmes and whether there are any gaps in what we propose to do.”
Environment secretary Margaret Beckett said: “We have appointed a strong team of leading independent experts who will provide us with high quality advice. They have a wide range and balance of skills. Sir John Collins, the Board’s chairman, heads one of the UK’s leading retailers and has extensive previous experience in the energy world. The Board will help us to take forward the White Paper and implement a truly sustainable energy policy in the UK.”
The White Paper sets four new goals for energy policy: to put the UK on a path to cut the carbon dioxide emissions by some 60 per cent by about 2050, with real progress by 2020 (as recommended by the Royal Commission on Environmental Pollution), to maintain the reliability of energy supplies, to promote competitive energy markets in the UK and beyond, helping to raise the rate of sustainable economic growth and improve productivity.
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