Harnessing the hidden value of by-products to capture carbon credits

1. Harnessing the hidden value of by-products to capture carbon credits  Bob Carss, Group Environment Manager, VION Food Group Limited Stephen Woodgate, Chief Executive, Food Chain and Biomass Renewables Association

2. Presentation Overview Introduction to Vion Introduction to Fabra The by-products sector Joining forces Summary

3. VION Food Group: Profile • International Food Concern • € 9.0 billion turnover • 27,000 employees • Head Office • Eindhoven, The Netherlands • Core activities • Food • Ingredients • Mission • VION wants to anticipate and fulfill customer and consumer needs with high quality and innovative Food and Ingredients • Objective • VION wants to become a leader in (selected) Food and Ingredients market segments • Credo • “Passion for Better Food”

4. VION Locations VION Food Netherlands VION Food Germany VION Food UK VION Food International VION Ingredients

5. Profile of VION UK • 46 facilities across the UK • 14,000 employees (FTE) • 70% revenue from retailers • Happy Pigs welfare programme • #1 in Chicken Agriculture • #1 UK meat processor • #2 in Pork, Chicken and Beef • #1 in Bacon, Lamb and Sausages • Cooked Meats • Turkey • Pizza • Other (Agri)

6. Fresh pork, beef, poultry, lamb and convenience products 21,000 employees Ingredients e.g. fat, proteins, gelatin 6,000 employees NL DE BE Int. Rousselot VION Organisational Chart ZLTO / NCB Ontwikkeling ZLTO is a Farmers Union with approximately 18,000 members Supervisory Board VION Executive Board FOOD INGREDIENTS DE NL UK Int.

7. Green Energy Park Ecoson € 20 million investment in sustainable energy

8. Digester Capacity: 8,000 MWh thermal energy 36,000 MWh electricity Electricity consumption per average household is ± 3.5 MWh per year (Source: NIBUD) Energy Own use + Rendac Back to electricity grid Water WWT-installation Rendac Flotation sludges Digester Digestate Raw material Process End products Application

9. Development of green electricity production • Key for success: Integration with C1 facilities, permits and subsidy programs • Additional investment in 2011 in 2nd post digester and a fourth motor and electricity generator • After these investments Ecoson is the Netherlands Nr 1 in green electricity production from Biogas

10. Refinery and Biodiesel Current capacity: 50.000 MT De-acidified fat 5 million liters Biodiesel Animal fat Fatty Acids Refinery CHPs/ steam boilers Rendac De-acidified fat Truck fleet B100/ B20 Biodiesel Biodiesel installation Glycerin Digestation Raw material Process End products Application page 10

11. VION Summary • VION are using current engineering technology to use the by-products of food production for Renewable Energy generation • Energy Savings/ Efficiencies/ Climate change benefits • In our UK approach we are looking to utilise such products to replace more carbon intensive alternatives. • We hope to move this forward through the work we are undertaking with FABRA and Harper Adams by validating the carbon footprint aspects of our products.

12. Introduction to Fabra Fabra members collect, process and utilise more than 2/3rds of the Animal by-Products [ABP] originating in UK. Fabra is committed to maximising the value of ABP by using the best technology operated to the highest standards.

13. Introduction to Fabra

14. Introduction to Fabra Fabra are members of EFPRA (European Fat Processors and Renderers Association) Many of the initiatives discussed are part of EFPRA’s ongoing scientific , technical and promotional work Fabra are members of the WRO ( World Renderers Organisation)... Many of the common themes are adopted by WRO Stephen Woodgate is a member of the EFPRA Executive Board and is currently 2nd Vice-President of the WRO

15. The origin of animal by-products Live Animals Fallen Stock Slaughter Hide and Skin Food – meat and edible offal Animal By-Products

16. Amounts of Animal By-products Total amount of UK animal by-products ~ 2.25 million tonnes per annum

17. Rendering: Simplified Process Flow diagram Raw material Sizing Drying/Cooking Pressing Decanting Cooling Centrifuge Grinding Processed Proteins “MBM” or “PAP” Rendered Fat “Tallow”

18. Processing Systems in Practice Category 3 Category2 Category1 By-Product Processing [Rendering] Bio Fuel By-Product Processing [Rendering] PAP Rendered Fat MBM Rendered Fat

19. A carbon footprint “toolkit”for the rendering industry Angel Ramirez

20. Calculating the carbon footprint Land use change Methane Energy * Transport fuel Transport fuel Transport fuel Crop growing for feed production Animal husbandry Animal Slaughter-house Animal By-product processing Fertiliser Energy Focus on By-Products Energy Rendered animal fats * Processed animal protein Fertiliser Energy Additives Meat and bone meal *

21. The Rendering Process: Boundaries

22. Summary: Rendering Carbon Footprint (so far) What we have learned so far from the Rendering industry study* Engineering aspects: Ability to use Renewable fuels in thermal installations Focus on Energy efficiencies in the process Ability to develop Carbon Credits and gain ROC’s Joining the pieces together...... Joint work with Vion and Harper Adams will consider wider perspectives.... From “day old” chick through to use of Poultry PAP in Aquafeeds:

23. Broiler Poultry Production

24. Feed Milling

25. Slaughter

26. Results of CFP Assessment – Food / Feed Comparison

27. Acknowledgement and Thank you to Angel Ramirez Bob Carss Stephen Woodgate bob.carss@vionfood.comswoodgate@fabra.co.uk