2017 Sustainability Benchmarking Report - Brewers Association
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table of contents Executive Summary 2 Appendices 38 Acknowledgments 3 a - Participant Results 39 Introduction 4 b - 2016 Benchmarking Snapshots 43 Trends and Observations 6 c - GHG Estimations 57 Renewable Energy 7 d - Water Risk Assessment 59 CO2 Emissions 8 e - BA Sustainability Resources 63 Sustainability-Related Utility Costs 9 f - Reporting Breweries 65 Cost of Energy 11 Improving KPIs 12 Beer Loss as a Metric 12 The Sustainability Journey 13 Case Studies 14 Alaskan Brewing Co. 15 Bear Republic Brewing Co. 17 Elliott Bay Brewhouse & Pub 19 Horse & Dragon Brewing Co. 21 Jackie O’s Brewery 23 Kona Brewing Co. 25 North Coast Brewing Co. 27 Rising Tide Brewing Co. 29 Sierra Nevada Brewing Co. 31 Ska Brewing Company 33 Upland Brewing Co. 35 Goal Setting 37 Cover photos provided by individual craft breweries. Interior photos provided by breweries unless otherwise noted. 2017 Sustainability Benchmarking Report | 1
executive summary The purpose of this benchmarking report The following graphics summarize data is to present calendar year 2016 from the 117 participating breweries over sustainability-related data submitted by the period 2014-2016. participating craft breweries and to highlight case studies that outline how leading breweries are improving their utility efficiencies, reducing operating costs, and minimizing environmental impacts. This is the third benchmarking report issued by the Brewers Association (BA). Previous reports have focused on calendar year 2014 and 2015 data. This report also attempts to gain insights from an initial trending analysis of 34 breweries that have submitted complete monthly data sets for all three years of benchmarking (2014-2016). Overall, 117 breweries have participated, with 57 breweries submitting one year of complete monthly data, while 26 breweries have submitted two years of complete data. Care should be exercised when attempting to extrapolate these results to the craft brewing sector as a whole. Participation is on a voluntary basis and the participating breweries represent a relatively small sample size compared to the total population of operating craft breweries. However, this report provides an informative view of the participating breweries and is helpful to better understand the value in pursuing a more efficient operation. It also identifies and shares brewery best practices that are driving best-in-class performance metrics. 2 | BrewersAssociation.org
acknowledgments This ongoing project would not have been possible without the support of the BREWERS ASSOCIATION BA Sustainability Subcommittee and the SUSTAINABILITY SUBCOMMITTEE: 117 craft breweries (Figure 1) that submitted data and shared best Cheri Chastain* – Sierra Nevada practices. Particular thanks go to the Brewing Co. breweries that took the time to enter Carol Cochran – Horse & Dragon three consecutive years of data to make Brewing Company the year over year comparisons possible. Serena Dietrich – Deschutes Brewery A list of all reporting breweries is available Christian Ettinger – Hopworks in Appendix F. The BA recognizes that Urban Brewery collecting and reporting data can take Zac Harris – Alamo Beer Company considerable time and effort. Sharing Ian Hughes – Brewers Association sustainability-related data and best Saul Kliorys – Great Lakes Brewing Co. practices in the craft beer segment is an Peter Kruger – Bear Republic Brewing Co. ongoing process, and the BA Walker Modic – Bell’s Brewery, Inc. appreciates all member contributions. Damon Scott – Brewers Association Chuck Skypeck – Brewers Association We would also like to thank the Kris Spaulding – Brewery Vivant sustainability management consulting John Stier – Brewers Association team from Antea® Group who collected Luke Truman – Allagash Brewing Co. and analyzed the data and developed Katie Wallace* – New Belgium the benchmarking update. Brewing Co. The BA is excited to support the *Committee Co-Chair continued use of the online benchmarking tools and reports. This helps to increase the sharing of best practices and demonstrates the industry’s focus on improving efficiency and growing responsibly. Figure 1: Location of Participating Breweries by Market Segment: Microbrewery Brewpub Regional Brewery 3 | BrewersAssociation.org
introduction Established in 2014, the annual BA resource consumption to continuously Benchmarking Reports have been highly drive improvements in efficiency. anticipated by multiple stakeholder Similar to the 2016 Report, this 2017 groups including brewers, state guilds, Sustainability Benchmarking Report and policy makers. The reports seek to represents a dynamic data set where provide an important look into the craft facilities were permitted to submit brewing industry’s environmental corrections to previous years’ data. performance. Breweries are also included in the The BA Sustainability Subcommittee has benchmark even if they do not report been tasked with helping current data for all three reporting years or for all members and future generations to brew environmental attributes. the highest quality beers in a manner that strengthens business value, increases Figure 2: BA Regional Map the resiliency of the natural environment and agricultural systems that provide brewing ingredients, and enhances workforce and community livelihood. Now in the third year of the benchmarking initiative, this report summarizes the past three years of brewery data. The benchmarking study focuses on comprehensive analysis of water, energy, and emissions efficiency in the craft Pacific Northwest North Central brewing industry. This quantitative study Pacific South provides meaningful comparison by Mountain West Northeast showcasing industry-wide and specific trends for facilities by production size, geographic region (Figure 2), and market Figure 3: BA Market Segments segment (Figure 3) by documenting water use, energy use, and total Brewpubs emissions normalized to barrels (bbls) of beer packaged. Through detailed analysis and Microbreweries benchmarking, the craft brewing sector is defining its environmental footprint and the characteristics that influence Regional Breweries 2017 Sustainability Benchmarking Report | 4
introduction Key Terms data from 68 breweries, 15 of which are new participants. In the past, efficiency • Normalizing to Barrels Packaged or charts have provided value by illustrating Taxable Beer: Attribute usage and cost the Bottom 25%, Middle 50%, and Top were normalized on a per barrel scale 25% performance metrics. These are for each participating brewery. The again provided in Appendix B, term “Barrels Packaged” is used representing the data submitted for 2016. throughout the report as the normalization factor. For the purposes of this report, “taxable beer” reported to the Department of the Treasury Figure 4: Number of Brewery Alcohol and Tobacco Tax and Trade Participants Bureau is considered the same as “Barrels Packaged.” 57 26 34 • Environmental Attributes: This report primarily focuses on usage ratios for water and energy. The water use ratios 0 25 50 75 100 125 are presented in bbls of water used per bbl of beer packaged (bbl/bbl). The 1 Year 2 Year 3 Year energy use ratios are presented in kWh of energy used, combining electricity Internship Program and natural gas, per barrel of beer Most craft breweries across the nation packaged (kWh/bbl). Emissions ratios are highly entrepreneurial, with each co- are also presented in the report in units worker filling several roles to meet the of lbs of CO2 per barrel of beer daily demands of a small business. packaged (lbs/bbl). The emissions Tracking down utility invoices and estimates include Scope 1 (natural gas entering and analyzing sustainability and purchased CO2) and Scope 2 data requires additional human (electricity). resources they don’t often have. This is one of the main reasons more breweries have not yet participated in the Data Set Description benchmarking project. Graduate level At a minimum, breweries were asked to students are being recruited by the BA to provide information on barrels of beer assist local craft breweries with packaged, which is utilized to normalize collecting, entering, and analyzing usage data for environmental attributes. sustainability-related data through the In addition, breweries provided data on Sustainability Benchmarking Tools. More usage and cost for electricity, natural information on the Sustainability gas, purchased CO2, water, and Internship Program is available on the BA wastewater. Figure 4 provides a count of website: breweries who have submitted complete https://www.brewersassociation.org/best sets of monthly data for one, two, or -practices/sustainability/sustainability- three consecutive years. benchmarking-tools/ The 2016 data set includes complete 5 | BrewersAssociation.org
trends and observations The past three years of brewery-submitted data have been analyzed for potential trends that could be helpful for the sector. At this point, the benchmarking sample size is too small to make definitive statements or assumptions about the entire population. The sample size percent of total population increases as the production size range increases. For example, less than 0.03% of the total breweries between 1 to 1,000 bbls/yr are represented, but over 31% of the total breweries between 100,000 and 1,000,000 bbls/yr are included. Participation in the benchmarking is voluntary, so those that participate may skew the results toward breweries that consider sustainability an important element of their business success. As of the date of this report, more than 280 craft breweries of all production sizes and locations have signed up for access and are entering data into the sustainability benchmarking online tool. There is a gap between the 68 breweries identified in Table 1 and the total of more than 250 breweries currently participating in data entry. Some breweries submitted incomplete or erroneous data for 2016 and were omitted from the report. A good number of breweries just joined the program in 2017 and 2018 and did not have the time or resources to gather historical data for entry. Future benchmarking reports are expected to include larger numbers of breweries, especially in the less than 1,000 and 1,000 to 10,000 barrels per year ranges. The 2016 benchmarking study participants and total BA membership numbers are presented in Table 1. Additional ratios and average facility metrics are provided in Appendix A and are broken down by production size, geographic region, and market segment. Table 1: 2016 Benchmarking Study Participants vs. Total BA Membership Production Volume Participants Membership (bbls/yr) 1 to 1,000 7 breweries 3,175 breweries 1,000 to 10,000 23 breweries 1,254 breweries 10,000 to 100,000 28 breweries 218 breweries 100,000 to 1,000,000 10 breweries 32 breweries 2017 Sustainability Benchmarking Report | 6
trends and observations: environmental efficiency Renewable Energy For an on-site renewable energy project to be successful, there are several Over the past three years of challenges to overcome, such as the benchmarking, the amount of capital investment, roof or ground space renewable energy usage reported by availability, financial rebates available, participating craft breweries has and site-specific energy potential. increased from 6 to 8 percent. Some is produced from generation of on-site Getting Started with Renewable Energy renewables, and some is electricity Breweries should first work on improving purchased through utility renewable or efficiencies within operations; this will also green energy sources (e.g. wind power). bring additional cost savings. Once a Figure 5 presents the percent renewable brewery sees progress and reaches the electricity utilized in the three year top 25% of benchmarked performance participant pool. Once again, these within their production size for efficiency, data are only representative of the a renewable energy feasibility screening benchmarking participants, not the can be conducted. This can include the entire craft brewery sector. On-site evaluation of on-site renewable renewable fuel generation (biogas from installation vs. the option of purchasing anaerobic wastewater pretreatment) green energy. Conducting an initial accounts for about 1% of participant technical and economic feasibility natural gas usage over the past three screening can be a simple way to years. determine the basic potential of renewables at your brewery. Sixteen participating breweries utilized renewable resources for electricity in 2016: • Alamo Beer Company • Alaskan Brewing Co. • Bear Republic Brewing Co. • Brewery Vivant • Butcherknife Brewing Company • Kona Brewing Co. • Flying Fish Brewing Co. • Jackie O’s Brewery • Maine Beer Co. • New Belgium Brewing Co. (CO) • North Coast Brewing Co. • Odell Brewing Co. • Sierra Nevada Brewing Co. (CA & NC) • The St. Louis Brewery, LLC • Upslope Brewing Company. 7 | BrewersAssociation.org
trends and observations: environmental efficiency CO2 Emissions The craft beer industry utilizes natural gas, electricity, and purchased non- fermentation CO2 to produce beer. All of these in turn contribute to a brewery’s overall CO2 emissions. Figure 6 outlines the relative contribution of all three components to total CO2 emissions. A description of how emissions are estimated is outlined in Appendix C. Benchmarking participants have utilized on-site renewable electric generation, biofuels, and purchased green electricity to avoid at least 3% of total CO2 emissions each year. Figure 7 illustrates the emissions avoided due to on-site renewables and purchased green energy from the participating facilities in 2014-2016. Key Takeaways: These breweries avoided over 26 Craft breweries in the benchmarking million lbs of CO2 emissions over the database are focused on improving three-year period through renewable efficiencies as the primary means for energy usage. reducing CO2 emissions and positioning for long-term success. In addition, there are also a few larger breweries that have installed CO2 Some breweries have used rebates and capture and reuse systems. These other incentives to justify investment in systems further reduce overall CO2 their own renewable energy emissions by limiting or altogether infrastructure. Other breweries are eliminating the need for the brewery working with their local utilities to to purchase non-fermentation CO2. purchase electricity from renewable This is especially feasible for facilities sources. that have a high cost associated with Larger breweries have invested in CO2 purchasing CO2. In addition, some capture and reuse systems. The breweries have reported taste quality economic feasibility of installing these benefits from reusing fermentation systems in breweries producing less than CO2. 10,000 bbls/yr has not been favorable in the past. This could change over the next Figure 6: CO2 Emissions Contributions few years given advances in technology. 10% 36% 54% Natural Gas Combustion Purchased Electricity Purchased CO₂ 8 | BrewersAssociation.org
trends and observations: economic efficiency Sustainability-Related Utility Costs The cost per barrel of sustainability-related utility KPIs has generally decreased over the three-year period for the benchmarking participants. Energy remains a significant utility cost for most breweries, with electricity comprising the majority of energy costs. Water costs have remained relatively constant. Wastewater has continued to take up a larger proportion of participants' utility costs each year at all production sizes. The benchmarking participants have paid over $1 million for BOD (Biochemical Oxygen Demand) and TSS (Total Suspended Solids) high strength surcharges over the past three years. This trend is expected to continue. Figure 8 illustrates the relative economy of scale of increasing annual production. As illustrated in Figures 9 through 12, the cost mix changes for some KPIs as production increases, and other KPIs stay relatively constant. Energy costs (electric plus natural gas) comprise about 70% of utility costs for breweries at all size ranges. These percentages continue to point toward a priority focus on energy efficiency improvement first, regardless of production size. Increasing energy efficiency not only reduces operating costs, but also has associated environmental benefits in terms of emissions reduction. Some participating breweries have focused on water reduction as a priority given their location in water-stressed areas of the country. This decision is often driven by image protection and risk abatement versus pure cost reduction. Reducing water usage could put a brewery in a more resilient position to combat current and possible future water risk. This is further discussed in Appendix D. Figure 8: Average Utility Costs for All Size Participants 60 50 40 Wastewater $/bbl Water $/bbl $/bbls 30 Natural Gas $/bbl Electricit y $/bbl 20 CO2 $/bbl 10 0 0 - 1,000 1,000 -10,000 10,000 - 100,000 100,000+ bbls/year 2017 Sustainability Benchmarking Report | 9
trends and observations: economic efficiency Wastewater treatment has traditionally Average Utility Costs not been a significant cost for most Figure 9: 0-1,000 bbl/yr ($/bbl) participating breweries. However, that is 14% 7% slowly changing as the number of craft breweries continues to grow and municipal wastewater treatment plants are faced with increasing costs for 12% treatment of BOD and TSS from brewery wastewater. 43% Some participating breweries have found centrifuges to be an effective tool in 24% limiting BOD and TSS discharges to the municipal treatment plant. Others are Figure 10: 1,000-10,000 bbl/yr ($/bbl) looking to “side-stream” high-strength low-volume sources of wastewater to 14% 10% prevent discharge to the municipal system. 8% Key Takeaways: Energy remains a significant utility cost for 23% 45% breweries, and should be a primary focus of conservation as it can lead to both reduced emissions and cost savings. Figure 11: 10,000-100,000 bbl/yr ($/bbl) Water reduction is typically not driven by 19% 17% cost savings, but rather by image and operational protection from potential water shortages in water-stressed communities. 11% Wastewater is an increasing component of the overall cost. Many breweries have lowered their municipal wastewater 34% charges by side-streaming high-strength 19% sources of wastewater for beneficial reuse as animal feed, energy feedstock, Figure 12: 100,000+ bbl/yr ($/bbl) and soil nutrient. 8% 20% Legend: 11% 38% Electric Cost Natural Gas Cost CO₂ Cost Water Cost Wastewater Cost 23% 10 | BrewersAssociation.org
trends and observations: economic efficiency Cost of Energy Figure 13: Participant 2014-2016 Energy Prices The purchased unit cost of energy 0.16 for the benchmarking participants has generally decreased from 2014 0.14 to 2016. Figure 13 illustrates how electricity and natural gas costs 0.12 have declined over the three-year period for benchmarking 0.10 participants. The U.S. Energy Information Administration has 0.08 reported similar reductions in 0.06 average unit prices as shown in Figure 14. Future energy prices are 0.04 uncertain and could continue to decrease, flatten, or begin to 0.02 increase. This energy price volatility creates a necessity for breweries to 0.00 focus on efficiency improvement ELECTRICITY NATURAL GAS ENERGY ($/KWH) regardless of pricing trends. ($/KWH) ($/KWH) Lowering utility usage per barrel of 2014 2015 2016 production essentially creates a future hedge against increasing energy prices. Figure 14: U.S. 2014-2016 Energy Prices Key Takeaways: (Source: Energy Information Administration) While breweries may not be able to control the pricing of 0.16 electricity, fuel, and other 0.14 purchased resources, proactively reducing consumption and 0.12 investing in conservation measures can position a brewery 0.10 to be more resilient in times of price volatility. Lower average 0.08 energy prices over the past few 0.06 years have been an advantage to the craft brewing industry, but 0.04 it is critical to look to the future and minimize the risks associated 0.02 with these volatile markets. 0.00 ELECTRICITY NATURAL GAS ENERGY ($/KWH) ($/KWH) ($/KWH) 2014 2015 2016 2017 Sustainability Benchmarking Report | 11
trends and observations: production efficiency Improving KPIs: Size Makes a Difference Beer Loss as a Metric Certain costs and resources, such as There are significant costs in raw lighting, heating, and cooling, are materials, labor, and utilities to produce a necessary to operate any brewery barrel of high quality craft beer. regardless of production size. For Reducing beer loss helps put more beer breweries with production of less than in the hands of the consumer and more 10,000 bbls/yr, these baseload operating dollars in the hands of the business. Beer costs represent a significant portion of loss consists of any liquid that could have the brewery’s overall utility expenses as made it into the final product for discussed in the Cost Per Barrel section. consumption, but instead was lost to sewer, trucked to waste, or evaporated When production increases, these to air. This lost or wasted beer has a direct baseload costs become a smaller portion effect on production-related KPIs and of total expenses, and the variable costs related costs. fluctuate depending on how much beer is produced. The sustainability-related Every drop of beer lost represents wasted utility usage metrics of breweries resources and money. Investing in producing more than 10,000 bbls/yr do improvements that minimize loss saves not exhibit the same volatility when resources like natural gas, water, CO2, related to changes in the production electricity, raw materials, and even time. volume; instead, these 10,000+ bbls/yr Many of the participating breweries that breweries exhibit more stable KPIs. Their saw efficiency improvements have made production is high enough that monthly addressing beer loss a primary focus. variations in barrels produced do not Breweries have implemented additional significantly impact overall usage ratios. flow meters, valve controls, centrifuges, and equipment-tuning procedures as a For breweries where baseload-related means to reduce losses. Several case resource consumption comprises the studies presented later in this report largest portion of overall resource use, highlight specific initiatives that have focusing on improving efficiency in the been taken to address beer loss. fixed electricity costs (LED upgrades, occupancy sensors, heating/cooling Although a beer loss metric has not been efficiency, etc.) is very effective. collected as part of this benchmarking report, it is a critical element of efficiency Key Takeaways: and should be a priority for efficiency There are many opportunities to reduce improvement. Future development of a baseload operating costs and resource beer loss KPI and collection of consumption by simply focusing on benchmarking data is under tracking and managing utility usage. This consideration. is a critical time to engage your employees. You are encouraging a new culture of efficient and sustainable operations, which is not possible without employee engagement. 12 | BrewersAssociation.org
trends and observations: production efficiency Benefits of Managing Beer Loss First approach to preventive maintenance. The following are some examples of how Making investments in a brewery’s breweries have embarked on the culture, procedures, and equipment in sustainability journey and increased order to minimize beer loss can have efficiency without large capital positive impacts on efficiency investments: improvement and profitability. When evaluating process improvements to • Steam – Preventive boiler justify capital expense and return on maintenance; frequent steam leak investment, consider the compounding detection surveys and repair; effects that these investments will have. monitoring condensate return; They will increase the amount of beer insulating pipes; and routine steam produced and packaged per batch, trap inspections. leading to more revenue. They will also • Compressed Air – Reducing system reduce environmental impacts in pressure as low as practical; adding multiple areas like reduced water usage accumulator tanks if additional and CO2 emissions. storage is needed; and frequent leak detection surveys and repair. The Sustainability Journey • Water – Observe and control leaks (especially hot water); optimize As a company matures, there are certain cleaning procedures; and eliminate aspects of the business that become once through cooling systems. more efficient. This learning period can be a particularly vulnerable time for a • Chilled Water – Perform regular new brewery. The faster an organization preventive maintenance on chillers can master the learning curves and coolers; maintain design associated with their products, the faster refrigerant charge; and check for they can become an efficient and fouling and corrosion. profitable business. For example, one Use the BA Resources on Your Journey brewery contacted for case studies identified multiple challenges with Taking the time to understand your unanticipated waste streams upon operation and optimization of existing opening. However, after adopting systems is critical to improving production disposal solutions, they reduced their efficiency. Buying and installing a pounds of solid waste per barrel by more technological fix is not usually the path to than 50% in three years. becoming more sustainable. Creating a culture of employee engagement is key. Information sharing and reviewing industry publications, such as the BA There are multiple resources available Sustainability Manuals (Appendix E), can from the BA to master learning curves quickly aid breweries in taking early quickly and see immediate benefits actions with immediate payback. without large investments. Start your Optimizing operational performance journey by reviewing the BA Sustainability should be first on the to-do list and can Manuals in Appendix E. be attained through a disciplined 2017 Sustainability Benchmarking Report | 13
case studies The case studies in this 2017 Sustainability Stakeholder Insights Benchmarking Report illustrate the creativity and sustainability initiatives in Brewers: See what other breweries are the craft brewing sector. The case study doing to achieve top 25% performance in interviews highlight multiple trends their production size range. including: • Emphasizing the importance of The efficiency improvement journey preventive maintenance procedures typically starts with tracking utilities for and properly caring for equipment. cost purposes. Think about beginning to The benefits of these operating track utility cost, and tracking usage will procedures can save breweries easily follow. thousands of dollars a year by reducing production down-time and limiting malfunctioning equipment. Community Leaders: Look for partnership • Creating an employee culture with a opportunities as local breweries continue core focus on sustainability and to put emphasis on making a positive recognizing the importance of environmental and social impact in the operating with environmental community. stewardship in mind. • Tracking metrics to gather a baseline of performance and then working State Brewers Guilds: See what toward understanding where and how sustainability initiatives are occurring at to set goals for efficiency breweries and the impact on local improvement. communities in your state. Encourage • Utilizing grants from government others to join the effort! agencies or utility providers to help fund sustainable initiatives. Legislators: Small businesses have a key These breweries have demonstrated role in the community. These stories show significant improvement over the past that local craft breweries are making an three years in efficiency for one or more economic and environmental sustainability-related metrics or are operating in the top 25% performers. Their improvement in the local communities insights provide valuable knowledge and that you represenzt. guidance to others in the craft brewing sector. Those that have shared their stories encourage others to contact Regulators: Craft breweries are voluntarily them directly to discuss sustainability practicing pollution prevention and strategies and to share improvement making environmental improvements ideas. without the need for specific regulatory action. See Appendix E for more information on how you can apply some of these best practices at your brewery. 14 | BrewersAssociation.org
case studies Alaskan Brewing Co. Alaskan Brewing Co. has continued to • Determining efficient use of diesel showcase the achievements of its fuel – natural gas is not a large-scale inventive, problem-solving team of fuel option in Juneau. employees. Based in Juneau, the group But when people say something can’t be sometimes confronts tough issues that done, Alaskan Brewing Co. finds a other breweries may not ever face. These solution. Below are some of the distinctive difficulties, along with the founders’ solutions the brewery has found to original passion for innovation, have address its challenges. fostered a pioneering culture, and challenges are viewed as opportunities • They were the first craft brewery to to create solutions rather than as install CO2 reclamation. The system obstacles. They take great pride in had a return-on-investment of less demonstrating that Alaska, and than three years. specifically Juneau, is a great place to establish a business that can be a successful manufacturing operation. Some of the difficulties the brewery has had to address include access to resources where other breweries might have well-established infrastructure in their local city or nearby surrounding Location: area. Many times, the cost to transport Juneau, AK materials helps the brewery justify efficiency investments. Some of the unique situations the brewery has faced include: • Addressing the lack of cost-effective CO2 suppliers – all purchased CO2 needs to be shipped to the facility, thereby increasing costs substantially. • Finding options for spent grain Market Segment: disposal – Juneau does not have any Regional livestock farms. 2017 Sustainability Benchmarking Report | 15
case studies: Alaskan Brewing Co. Alaskan Brewing Co. Team in Front of Their Variety Pack Assembly Line • The brewery has been drying its spent • They have developed a more efficient grain for years because it needs to ship water heating system that consumes it to farms in Washington State. Out of less instantaneous steam, helping to this practice, innovative thinkers have reduce swings in boiler loading. It is established “Beer Powered Beer.” In similar to an “on-demand” heating 2010, they implemented a system to system. This equipment goes hand-in- burn the dried, spent grain for heat. hand with preventive maintenance They had some difficulties at first and procedures for their steam systems, had to implement a fuel introduction including regular trap checks, system to get the grain to efficiently insulation replacement, and leak burn; however, after figuring out repair. maintenance issues early on, they now The Alaskan Brewing Co. founders are have the process dialed in. The brewers well connected to the outdoors, and use a mash filter press, which allows for committed to being good stewards to the use of very fine grain. The grain is the environment and community. All then dried in a rotary drier and blown brewery employees have those same into the furnace. The heat from the values too, so everyone remains on the furnace is then used to dry the next same page to make sure their brewery batch of spent grain. operations better the environment and support the area in which they all live. 16 | BrewersAssociation.org
case studies Bear Republic Brewing Co. Bear Republic Brewing Co., located in loading to the drain by 6,000 gallons Northern California, has had to adapt its of yeast per week and has reduced operations to account for natural their beer loss during transfer from 6% resource shortages and natural disasters. to 3% in the cellar. As an added Their experiences emphasize the benefit, they are also able to offer importance of addressing environmental their non-GMO yeast to dairy farms impacts in daily life. During the recent as organic feed for cows. droughts, strong opportunities existed for • By utilizing low-strength wort left in connections to be forged between the mash tun as strike water for the peoples’ livelihoods and natural next brew, they have reduced about resources. The drought conditions pushed 5,000 gallons of effluent per week the brewery and its employees to with an approximate BOD of 30,000 change behavior and make resource mg/L. This reuse of “scrap,” which conservation part of their culture, such as contains extract, has reduced the when coworkers turn off a rinse-down amount of barley the brewery needs hose if it has been running too long to purchase. during a cleaning process. Because of this engrained awareness of a strong Bear Republic has also installed a association between water usage at the wastewater pretreatment system with brewery and continued impact in both anaerobic and aerobic operational areas, it’s now easier to components. The new 30kW micro- transfer that mindset to other resources. turbine that runs on the biogas Wastewater in particular has been the generated from the anaerobic digester logical next step for efficiency operates in tandem with a 65 kW micro- improvement initiatives. turbine that runs on mixed natural gas and any extra biogas from the digester The brewery’s overall wastewater flow that is not used in the 30kW unit. has been reduced over the past few years through multiple initiatives: Location: Market • The focus on improving their water Healdsburg, CA Segment: use ratio has led to a natural Regional reduction in wastewater. • The facility has added a new centrifuge, which allows for side- streaming their yeast from the fermenters. This has reduced biochemical oxygen demand (BOD) 2017 Sustainability Benchmarking Report | 17
case studies: Bear Republic Brewing Co. Bear Republic Brewing Co. Team The facility has also installed a 125 kW PV improvements have decreased solar system, which is complementary to electricity usage and overall energy its micro-turbine system. The costs. For their brewery, this change in cogeneration units are constantly consumption makes sense economically producing electricity and waste heat, because, due to their location, electricity offsetting 95% of the steam from the costs roughly 20 times more than natural boiler needed to produce process water. gas on a per-joule basis. In addition, A new pre-heat tank captures the utilizing more natural gas is a cleaner process water and also serves as a source of energy as well, and the new water-saving “buffer” by capturing all of co-generation equipment reduces the the water used to chill the wort. This has boiler load and NOx emissions. prevented about 7,500 gallons of They are looking forward to a continued potable water from going down the decrease in overall energy usage as they drain as wastewater per week, and has further utilize their co-generation system. improved their water balance. Although Bear Republic Brewing Co. has seen a slight increase in their overall natural gas usage, these new equipment 18 | BrewersAssociation.org
case studies Elliott Bay Brewhouse & Pub Elliott Bay Brewhouse & Pub, located in room contributed to a facility air balance Burien, WA, has been an active issue. The old boilers were not getting the participant in the BA Benchmarking proper flow of combustion air, which initiative for the past three years. further reduced their efficiency. Air However, their journey to implement compressors are especially sensitive to sustainable practices began even before inlet air temperature, and efficiency the first benchmarking report was drops as air temperature increases. To published and breweries had dashboard remedy this situation and increase access. efficiency, the brewery replaced their 20- year-old boiler around 1.5 years ago and As one of their first steps along their installed a thermostat-controlled exhaust sustainability journey, an external team fan to move heat out of the small space. conducted a site visit to identify areas After installing the exhaust fan to remove where the brewery could make possible the built-up waste heat, the brewery efficiency improvements. One outcome noticed substantial improvement in of this meeting was an opportunity to metrics and operational efficiency. utilize their extra glycol chiller as a way to contain excess water that was spilling Elliott Bay Brewhouse & Pub has also onto the floor. Since that original facility experienced efficiency losses resulting review, the extra glycol chiller has been from steam trap failures. The traps had connected into the facility plumbing and issues with corrosion and would not open runs diverted city water to the glycol- and close properly. chilled heat exchanger before it hits the beer heat exchanger. This trims a few degrees off the city water, in turn Market allowing more heat exchange capacity Segment: which helps compensate for the Brewpub brewery’s lack of a cold liquor tank. This system is utilized during the warmer months to prevent the chiller from using more energy to work harder during the colder months when it is not as necessary to cool the city water. The brewery also made some Location: improvements to its basement Burien, WA mechanical room, which houses their boilers, air compressor, and glycol chiller. A lack of air inflow and waste heat in the 2017 Sustainability Benchmarking Report | 19
case studies: Elliott Bay Brewhouse & Pub Elliott Bay Brewhouse & Pub Team Not all of the steam was making it to the and cold rooms to help save electricity. kettle, so the brewery decided to Another new initiative they have recently replace these steam traps. Now the implemented in their cold rooms includes brewery has steam traps on a scheduled evaporator relays. When the evaporators annual maintenance plan, which is an are operating, the relay fans will run until easy common practice for any brewery they achieve a set point, such as 40 to adopt. Because of this preventive degrees. At that point, the evaporators maintenance, the brewery typically only shut off and only some of the fans stay on needs to replace the gasket material as circulators. The relays allow the instead of replacing the entire trap, brewery to run half of their fans during which saves significant cost in the long the circulation phase, which saves a run. considerable amount of energy. The brewery has also moved to act on As their journey progresses, the brewery is energy savings by replacing overhead excited to continue to invest in other fluorescent lights in addition to sustainability initiatives such as lab space evaluating incentives available through improvements and additional quality their utility provider. They also utilize control equipment. motion detectors in their working spaces 20 | BrewersAssociation.org
case studies Horse & Dragon Brewing Company Sustainability is engrained in the discussion among customers and operations at Horse & Dragon Brewing employees and sparks the Co., particularly in their approach to conversation about waste. waste management. Their journey • Spent grain recycling – Horse & started shortly after the brewery Dragon’s location affords them easy became operational. As is sometimes access to agricultural land where observed at many startup breweries, they can send spent grain. Local there was not a clear understanding of farmers (5 miles away) come to the the variety of waste streams that a brewery to retrieve material such as brewery produces, as well as the city’s spent grain, hops, and coffee infrastructure and where the waste grounds to supplement feed and could go. Shortly after realizing what use on the soil that needs nitrogen their waste streams entailed, they were and acid. able to reduce their waste and increase recycling and composting. Despite • Clear Intentions – A Denver-based increasing production, their solid waste glass recycling company has production per barrel has decreased by installed recycling bins on-site. 50% over the past three years. Employees and community members can bring their own glass Horse & Dragon Brewing Co. has had to the brewery for recycling with unrelenting support from employees, the Clear Intentions. community, local businesses, and city government. Some of the initiatives at • Local recycling – Horse & Dragon the brewery regarding waste reduction makes twice-a-month trips to include: recycle all non-food waste, except Styrofoam. • Hand dryers – On average, 80% of the waste in their residential-sized garbage bin was used paper towels, so the brewery installed electric hand dryers in the restrooms to reduce paper towel waste. • Small trash can – Horse & Dragon Brewing Co. has one small trash can in the brewery to help remind Market customers and staff that they should Segment: not be wasteful. This small can has Microbrewery Location: often become a central point of Fort Collins, Co 2017 Sustainability Benchmarking Report | 21
case studies: Horse & Dragon Brewing Co. Horse & Dragon Brewing Company Team • Waste from events – The brewery Another area of interest at the brewery is requires any groups using the water recycling. Employees currently brewery space to be responsible for collect all water that is left in glasses their waste, meaning guests pack throughout the day and use it to water out their trash after their event ends. outdoor plants. This saves approximately This is not because Horse & Dragon is 2 gallons per day. unable to dispose of the trash, but Being based in Fort Collins has given instead it serves to remind people of Horse & Dragon access to the city’s the volume of waste they are Climatewise program, which constantly capable of producing. Customers suggests (and supports) new have embraced this practice, and environmental sustainability initiatives. Horse & Dragon has received positive feedback. The brewery is thrilled that its employees are eager to participate in waste Because of their waste practices and reduction and other sustainability focus on recycling, one of the brewery’s initiatives. Horse & Dragon Brewing Co. largest waste streams is currently trub. wants to use this excitement to improve They are already reusing yeast for up to their own sustainability story-telling to nine generations, but wastewater quality their employees and the community. is an area of focus for improvement in the years to come. 22 | BrewersAssociation.org
case studies Jackie O’s Brewery Jackie O’s Brewery is strategically example of their choice to invest in thinking about operations at its locations American-made equipment relates to for the long-haul. They don’t want to their variable frequency drives (VFDs). save money on the front end only to pay AC motors are abundant in a brewery, for it later. The brewery invests in good and Jackie O’s Brewery has made a equipment and operational procedures choice to source the most efficient to optimize brewery functionality and equipment. Their employees are ultimately put their beer on the shelf for equipment savvy and will fine-tune the consumers. Part of this thinking has led VFDs to work at their most efficient level. them to invest in sustainability measures The brewery could not operate at its that sometimes have longer payback current level without VFDs. The brewery periods. They take a “slowly but surely” hasn’t specifically measured the return approach as there are some occasions on investment, but process-wise, they where economics play a part and may aren’t shredding valves, tripping delay sustainability efforts; however, breakers, or slowing down operations like they try to push forward to be both they were with their old 3-phase motors. sustainability and community leaders. Additionally, Jackie O’s Brewery was One example of their long-term thinking able to utilize grants and install solar includes their investment in a 20-acre panels, which will see a longer-term farm as a place to divert their organic payback. When their electricity demand waste, revamp the soil over the next is higher than their solar production, they decade, and reduce their load to the purchase renewable energy certificates municipal WWTP. This investment and (RECs) to ensure 100% of their facilities’ long-term strategy was supplemented energy usage is green. On top of this with the installation of a centrifuge in effort, they have also retrofitted all of early 2018. They’ll be making their beer their lighting to LEDs. bright and the dirt dark at the same time. They also invest in American-made equipment. Although it might not be as cost-effective as imported equipment, the brewery believes this is an important community investment. They’ve found Market that American-made equipment is Segment: extremely high quality, has an Location: Microbrewery unparalleled longevity, and provides a Athens, OH great return on investment. One 2017 Sustainability Benchmarking Report | 23
case studies: Jackie O’s Brewery Jackie O’s Brewery Team In 2015, the brewery expanded to 17,000 recycle, people will recycle. They have square feet, and part of this expansion not had pushback, but sometimes do included adding radiant floor heating. not see follow-through, so they continue According to the brewery, the facility is to work on changing behavior – almost getting too hot because the sustainability has to be a community radiant floor heating is so efficient. They effort. Jackie O’s Brewery is located in are currently testing out the plant glycol Athens, OH, a busy college town, which chilling system to see if they can offset is a key factor in their focus on the radiant heat. Within the last few sustainability and their determination to years, Jackie O’s Brewery has seen save the planet one day at a time. This increased fuel efficiency, it attributes has always been a backbone of their these efficiencies to building sustainable operations, and as they’ve grown, the processes into the recent expansion and team has always looked to sustainability investing in new efficient technology, to improve operations, not only for utility with plans to benefit from future returns. costs and usage, but also for employees’ lives. Jackie O’s Brewery Relating to a change in infrastructure, strives to source locally, make locally, but also including a behavioral change, and serve locally. Their local influence Jackie O’s Brewery has changed its puts Jackie O’s Brewery in a great place waste management process by to be active members, and they are switching to rolling garbage bins and proud to support many of the events in two large recycling dumpsters, as their community. opposed to their previous system of garbage dumpsters and rolling recycling bins. The brewery notes that when the company culture makes it easy to 24 | BrewersAssociation.org
case studies Kona Brewing Co. Kona Brewing Co. is committed to being overhauls. They continuously improve a leader in safety, quality, continuous systems that impact multiple metrics, improvement, and efficiency, and further such as reducing hot water usage to emphasizes sustainability within the save both water and fuel. One example company culture. It especially helps that of this is a simple retune of their hot water Hawaiians are naturally connected to boiler, which significantly improved the environment, so Kona Brewing’s efficiency for both water and propane. company culture builds on that local This mechanical improvement was also foundation. Because of their location on supplemented by a new boiler in 2016, a remote Hawaiian island, it is critical for which further improved thermal their brewery to be conscious of resource efficiency KPI. In addition to these heat consumption. Kona Brewing Co. has savings, they’ve also been reducing implemented a number of operational water usage since replacing their procedures as well as equipment kegging line in mid-2015. Instead of upgrades over the past several years to running the keg system by filling until drive resource management and overflow, they now measure by weight. efficiency improvements. This change in operation was a little challenging at first since they have many An important practice the brewery has different sized kegs, but they are focused implemented is tracking KPIs, or Key on reducing water usage for cleaning, Performance Indicators, from utilities to reducing beer loss, and ultimately putting beer loss and brewhouse efficiency. The a consistent product out the door. KPIs help create a path forward to improvements. The more information at hand, the better the chances that operations run smoother and more efficiently. The brewery cites its practice of tracking KPIs as being key in driving Location: Market success, and they have monthly Kailua-Kona, HI Segment: meetings to discuss KPIs, which bolsters Regional the whole team’s awareness of resource efficiency. The brewery can then develop specific projects related to the metrics, including initiatives focused on continuous improvement. One of the ways that Kona Brewing Co. drives progress is by making many incremental changes instead of large operational 2017 Sustainability Benchmarking Report | 25
case studies: Kona Brewing Co. Kona Brewing Co. Team Kona Brewing Co. also addresses to the ocean. Salt water has impacted maintenance issues as soon as they arise. their equipment to the point where some Pipes that contain liquid flowing at a hot of the equipment and linkages become or cool temperature are insulated, and rusty. However, with a good employees focus on keeping all pipes maintenance program and visual tightly wrapped to reduce energy loss. checks, they are able to keep things Reducing heat waste improves the running efficiently and address issues efficiency of processes, for example, hot prior to emergency setbacks. The water reaching the mash tun at the standard procedures to include correct temperature vs. adjusting. There preventive maintenance were are always ongoing insulation checks, implemented in early 2015, and since and if there is a break, it immediately then, employees have noticed things becomes a focus to fix. This practice also running more efficiently, reducing the helps the brewery’s cooling system run as need for reactive maintenance and efficiently as possible. Colder glycol improving KPI efficiency metrics. The means less waste when filtering, brewery does not look for a silver bullet in carbonating, and filling kegs. Cooling is terms of what can make their system an especially important factor at the better, but they make incremental Hawaii brewery since average daily improvements to existing systems and temperatures rarely fall below 70 degrees evaluate their operations holistically. Fahrenheit. Based on the success of this preventive maintenance, Kona Brewing Co. plans to Kona Brewing Co. also conducts build off the success of its preventive preventive maintenance processes to maintenance program by implementing address concerns before they become more predictive maintenance measures efficiency issues. Part of the focus on in the future. maintenance stems from their proximity 26 | BrewersAssociation.org
case studies North Coast Brewing Co. North Coast Brewing Co. has created a steam boiler with two modern, tubeless corporate culture with sustainability at its steam boilers resulted in a 23% reduction foundation. To showcase their in fuel consumption per barrel of beer commitment, the brewery achieved produced. Replacing an outgrown lauter Certified B Corp status and changed tun with a mash filter press provided their articles of incorporation to become enormous improvement. Malt usage a benefit corporation, which is unique in decreased by 6% on beers of average the industry. The primary tenet of the B strength (for which the lauter tun was Corp movement is to use business as a sized) to greater than 10% for big beers force for good in the world. To this end, where the lauter tun was too small to be North Coast Brewing Co. has partnered efficient. The mash filter press has also with Fortunate Farm in nearby Caspar, reduced fuel gas usage by an additional CA, by investing in the acreage, 9.4%. Water usage/bbl of beer produced equipment, and infrastructure. The has also decreased by 10% (down to 4 brewery has made it possible for a young bbls water/bbl of beer) due to the farmer to establish her business with efficiency of the mash filter press. sustainability at the core of her practices. Adding processes to reclaim energy and Not only does this farm grow vegetables, CO2 have also yielded gains. Brewhouse it is part of a long-term agricultural study upgrades in 2010 included a vapor- of the effects of carbon sequestration on condensing system on the brew kettle soil health. Referred to as “carbon that reclaims the energy in the vapor farming,” composted spent grain is created by boiling the wort. A regional applied regularly to the fields. The soil’s shortage of liquid carbon dioxide in 2013 carbon and microbial content is forced the brewery to look for innovative continuously monitored. The results ways to reduce CO2 usage or cut indicate improved soil health with production. increasing carbon levels. Carbon farming is seen by many as a way to help reverse Location: Market the impacts of climate change, and it Fort Bragg, CA Segment: provides North Coast Brewing Co. the Regional opportunity to repurpose their spent grain in a manner that is beneficial to the planet. In brewery operations, greater efficiencies have been realized by upgrading older, less efficient equipment. Replacing a 1970s vintage 2017 Sustainability Benchmarking Report | 27
case studies: North Coast Brewing Co. North Coast Brewing Co. Team on a Coastal Clean-up Day The cellarmen began cleaning bright efficiency and safety. These discussions beer tanks with an acid cleaner instead have resulted in employee action, such of caustic, allowing them to clean the as sweeping up hop debris instead of tank under pressure to preserve the CO2 washing it into the drain with a hose. This environment in the vessel. To ensure there measure saves water as well as reducing was no buildup occurring, the brite tanks the brewery’s effluent load on the would be opened every third cleaning, municipal waste water facility. which necessitated a CO2 purge after Employees also utilize large, reusable sanitizing. With large fermenters in high elastic bands to secure empty kegs krausen adjacent to the bright beer instead of wrapping the palletized kegs tanks, the idea of piping CO2 from the with plastic stretch film. There are scores fermenter’s blowoff through a sanitized more examples of these little changes tank of sterile water (to remove vapor that seem trivial on their own, but when and reduce volatiles) was implemented, added up, produce a meaningful and a process that required a significant cumulative result. The brewery has amount of bulk CO2 was replaced by empowered employees to be part of one that recycled gas generated during innovation by providing a mechanism for fermentation. offering new ideas and celebrating viable solutions with employee Increased training and education has led recognition and reward. This strategy has to greater awareness among employees led to strong buy-in with staff and has on the importance of using resources undoubtedly contributed to the brewery efficiently. Managers hold weekly receiving Platinum Level Certification in meetings to discuss operations and their first attempt to achieve Zero Waste procedures and seek input from Facility status. employees to further improve both 28 | BrewersAssociation.org
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