Energy Optimization in Industrial Bakery by syz14012


									      Energy Optimization in Industrial Bakery
                                   • Refrigeration • Compressed Air • Ovens


 • 17% reduction in natural gas
   consumption with potential
   savings of $69,000 /yr
 • 13% reduction in electrical
   consumption with potential
   savings of $80,000/yr
 • Potential GHG emission
   reductions of over 800 tonnes/yr
                                                  Oakrun Farm Bakery Ancaster Operation

Sector Overview                            market potential and contributing to     Company Description
The baking industry in Ontario             the growth of this sector in Ontario.    Oakrun Farm Bakery
includes companies that make value         However, this development does           ( produces an
added products including bread, buns,      have a cost. Bakeries are energy         assortment of fresh and frozen baked
rolls, doughs, desserts, crusts, pastas,   intensive operations utilizing gas for   goods, including English muffins,
cookies, biscuits, crackers, wafers and    baking or electricity for freezers.      bagels, Danish pastries, pies and
cones that are either baked or frozen.     Utility costs are favorable in Ontario   cakes at its plant in Ancaster, On-
According to Statistics Canada,            compared to other jurisdictions,         tario. The business is owned and
Ontario has 495 companies with             however, these energy costs are          operated by its founders, the
20,000 employees that transform 1.6        rising and becoming a significant        Voortman family. The plant has
million tonnes of grain and other raw      portion of the ingredient costs of       grown to over 165,000 square feet in
materials into $3.3 billion dollars        baked goods. It is not uncommon for      size and produces more than 20
worth of value added products, making      total energy costs to represent from     different product lines. Oakrun has
Ontario the largest baking cluster in      5-50 per cent of the ingredient costs    developed a reputation with its
Canada.                                    (utility costs divided by ingredient     Ontario customer base as a premier
                                           costs excluding labour, depreciation,    supplier of fresh and frozen bakery
Frozen dough and par baked bakery          packaging costs, etc.) of a bakery       products. The company is aggres-
products continue to grow in               product. The management of this          sively targeting both the USA and
popularity. The use of refrigeration       cost centre is, therefore, a must in     Canadian markets to increase its
technology has made a bakery’s             this competitive environment.            customer base and create a brand
location independent of its customers,                                              image equal to the one present in
thereby broadening the geographic                                                   Ontario.
      Energy Optimization in Industrial Bakery
The Situation
                                         energy consumption
The Oakrun Farm plant in Ancaster,
                                         of the refrigeration      Drivers for Change
Ontario is a high volume, efficient
                                         system is 2,700,000       •   Large energy user
factory bakery operating several
                                         kWh or $200,000.          •   Projected cost increase for electricity
production lines. To meet increased
market demand, the plant has                                       •   Corporate mandate to reduce energy consumption
                                         The compressed air
expanded with the addition of new
                                         system includes four
production lines. The manufacturing
                                         compressor units.
process is energy intensive, using
                                         Two compressors operate
large amounts of electricity and
                                         continuously, with the other two          operates 16 hours a day. The annual
natural gas to operate the
                                         activated if the compressed air           natural gas costs for the three ovens is
refrigeration system, compressed air
                                         pressure drops below a set value.         estimated at $220,000.
system and ovens. Total annual
                                         Compressed air represents 20 per
energy costs are in the $1 million
                                         cent of the annual electrical energy  Oakrun Farm Bakery completed an
                                         consumption. The estimated annual     Industrial Energy Efficiency Audit in the
                                         energy consumption of the             winter of 2001. The audit was completed
The refrigeration system at Oakrun
                                         compressed air system is 1,600,000    by Sandwell Inc., with financial
Farm Bakery includes seven process
                                         kWh or $120,000.                      assistance from Natural Resources
refrigeration units and four freezers,
which represent 30 per cent of total                                           Canada. The focus was to identify energy
                                         The plant has three ovens: two are    efficiency opportunities in the
electrical energy consumption. Most
                                         used for the English muffin lines and refrigeration and compressed air systems,
units operate with R22 refrigeration
                                         operate 21 hours a day; the other is  and ovens.
and three of the freezers operate with
                                         used for the crumpet line which
R404A. The estimated annual

  Audit Findings                         Table 1: Refrigeration System Energy Savings
  The audit identified nine separate                                    C apital            C ost            Simple
  energy saving opportunities in the         Energy Saving
                                                                         C ost             Savings          Payback
                                             O pportunities
  refrigeration system, compressed                                        ($)               ($/yr)           (years)

  air system, crumpets and English        Reduce
                                          compressor                       0               16 , 0 0 0            0
  muffin ovens, and the pan               discharge pressure
  washing system, to reduce the
                                          Increase suction
  plant’s total annual energy costs       pressure
                                                                           0                2,000                0
  by over 15 per cent.                    Installation of an
                                          evaporative                   42,000             15,000               2.8
  On the refrigeration side, four         condenser

  opportunities (see Table 1) could       Installation of
  lead to annual cost savings of          temperature
                                                                         500                2,600                0
  $36,000.                                controllers

  One refrigeration efficiency area      200 psig to 150 psig during the colder part of the year an increase in energy
  identified was a reduction in the      efficiency of 20 per cent can be achieved. Implementation of this
  compressor discharge pressure.         recommendation could lead to energy savings of 200,000 kWh or $16,000 per
  By decreasing the pressure from        year, with no capital investment.
  Energy Optimization in Industrial Bakery
  Other refrigeration improvements

  • increasing suction pressure by raising the
    suction pressure to about 40 psig and
    turning off the glycol system at night and on
    the weekend;
  • installing a new evaporative condenser with
    indoor sump tank and water circulation
    system; and
  • installing electronic temperature

  On the compressed air side, two opportunities
  could lead to annual cost savings of $39,500.
  One was the installation of a control system to
  improve the efficiency of the compressed air
  system and reduce the compressor power
  during off-hours and weekends. The control
  system would integrate and manage the
  operation of the four compressors with the
  associated refrigerated dryers. Implementation
                                                             English muffin conveyor line
  of this measure could lead to electrical energy
  savings of 400,000 kWh per or $30,000
  annually with a capital investment of $49,000.     it also produced variations in product quality. The
                                                     installation of three rapid-roll doors, and a new air-make-
  The other compressed air system improvement        up unit would eliminate the negative pressure. This
  was to increase the piping size from two           measure could lead to cost savings of $50,000 per year,
  inches to three inches in diameter, and change     with a capital investment of $95,000.
  the routing to a circular loop to achieve better
  air distribution and reduce pressure drops.        Another energy saving opportunity was identified in the
  This could lead to $9,500 in annual savings        pan washing station. This would involve installation of a
  with minimal capital investment.                   Programable Logic Control (PLC) with two photo eyes to
                                                     detect pans entering and leaving the washer, and
  A major opportunity was identified for energy      installation of an automatic steam valve to automatically
  efficiency in the English muffin and crumpet       shut off the pumps, fans and steam when the system is not
  ovens. This related to negative pressure in the    in use. These measures could lead to cost savings of
  ovens which was causing incomplete                 $15,000 per year, with a capital investment of $4,000.
  combustion in the burners. This not only
  resulted in use of extra power for the exhaust,

Implementation Status
Oakrun Farm Bakery is currently reviewing all energy efficiency opportunities identified in the
audit. The company plans to implement the opportunities on a prioritized basis in early 2003,
following completion of recent expansions to the plant.
     Energy Optimization in Industrial Bakery
Implications to the Food Sector
The process-focused approach used to identify and implement efficiency
                                                                                  “The volatility of energy prices over the
improvements at Oakrun Farm Bakery plant is applicable to many food
                                                                                past year have made our gas and electricity
and beverage processors in Ontario. Studies of this nature typically
                                                                                 costs a large part of our product costs. To
identify total energy, water and sewage savings of 15 to 20 per cent. This
                                                                                remain competitive we as an industry need
approach is particularly relevant for companies with combined utility costs
                                                                                   to take advantage of programs that the
over $200,000 per year. The recent deregulation of Ontario’s electricity
                                                                                 government offer up, like the energy sav-
market and price pressures for natural gas, create a new set of cost drivers
                                                                                               ings initiative.”
and opportunities for industrial energy efficiency.
                                                                                                Tony Tristani
                                                                                           VP & General Manager

                                        Support Services to Ontario’s Food Industry
       Food Industry Cost Reduction Program                      Ontario Ministry of Agriculture and Food (OMAF)
This case study was prepared as part of an Ontario           The Ontario Ministry of Agriculture and Food supports
program specially designed for the food industry to          Ontario’s food processing industry in several ways. The key
help companies reduce their energy, water and sewer          strategies to support food business development include:
costs. OCETA (Ontario Centre for Environmental               • attract new investment to grow the industry;
Technology Advancement) manages this program in              • retain the level of investment already in the industry;
partnership with the Agricultural Adaptation Council         • increase domestic and global market penetration of
and OMAF.                                                       Ontario grown and processed foods; and
                                                             • minimize the risk to the public from food-borne illness.
For more information contact:
                                                             OMAF has a network of sector officers to meet the everyday
     Kevin Jones                                             needs of food companies by:
     VP Marketing                                            • maintaining a proactive client account management
     Tel: 416.778.5288                                         system;
     Email:                               • researching and analysing sector challenges and
                                                             • providing a “one-stop” access point to assist food
                                                               companies in building their business and improving their
     Arnold Silver                                             competitive position; and
     VP Engineering                                          • providing information to influence investment and growth
     Tel: 519.575.4009                                         decisions.
                                                                               Dennis Flaming
                                                 For more information          Manager, Client Account Unit
                                                 on OMAF services              Toll Free: 1.888.466.2372 ext. 6-4448
                                                 contact:                      Email:

To top