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Frito Lay North America the Making of a Net Zero Snack Chip Case Solution

Solution Id Length Case Author Case Publisher
713 1096 Words (7 Pages) Andrea Larson, William Teichman Darden School of Business : UV2025
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Frito-Lay has been globally recognized as the pioneer in energy saving initiatives as it is one of the biggest companies in the Forbes 500 and has still managed to take measures in energy consumption well beyond the thinking or practice of any other company in the same industry or in any other industry. All programs designed and implemented by the company are one in-house so that the knowledge and techniques are retained within the company and make the organization in to a learning organization, shaping a better future for the company, and protect the company from future legislative requirements of energy consumption and hike in fuel and energy prices. The company has been implementing various energy efficiency measures in different plants in the company’s portfolio and now they have decided that the time is right to take the initiatives to the next level and apply all the measures simultaneously resulting in a net zero facility that will pave way for a new direction of growth in the company’s future.

Following questions are answered in this case study solution:

  1. Background

  2. Analysis

  3. Recommended Solutions

  4. Exhibits and References

Frito Lay North America the Making of a Net Zero Snack Chip Case Analysis

Analysis

The company management has decided to pilot the net zero project at the Case Grande facility due to various reasons some of which include that the facility allows for implementation of multiple techniques of water and gas consumption and solar power all in one place. Secondly the facility is a medium sized manufacturing facility so the results obtained from this facility could be easily extrapolated on to the bigger facilities. After months of preparation, the team has now gathered to decide whether the initiative was feasible or not and whether to go ahead with the implementation of the new technologies and processes specifically designed and tested for maximum energy consumption. The analysis below provides some quantitative data on the regarding the levels of GHG from the plant and the energy savings done on the basis of the new plan. It also provides the data with regards to the savings on the cost of operations that the company can base on the application of the new strategies.

Recommended Solutions

Expected Utilities Usage for 2008

90% saving on water

                                 

16,892.40 kilo-gallons

 

80% saving on gas of which 80% comes from biomass

natural gas usage for 2007

                78,831.40

 

80% saving on gas

 15,766.28 mmBtu

 

90% reduction in electricity purchased

                           

2,027,092.40 kWh

Assumptions made for calculations:

  • Only three greenhouse gases (GHG) are emitted which are CO2, N2O and CH4.

  • Operating costs only comprise of the utilities.

  • All changes in infrastructure have been made at the start of 2008.

Metric Tons of Emissions of Greenhouse Gases from Electricity and Natural Gas Usage for 2007

1. Emissions from Natural Gas Combustion

mmBtu’s of Natural Gas consumed x GHG emission factor x Global warming potential = kg of gas

GHG

mmBtu’s of Natural Gas

Emission Factor

Global Warming Potential

Kg CO2 equivalent

CO2

386,428

52.79

1

=20399534.12

CH4

386,428

0.00475

25

=45888.325

N2O

386,428

0.000095

298

=10939.77668

 

 

 

Total kgs

=20,456,362.22168

 

 

 

Total metric tonnes

= 20,456.36

2. Emission from Electricity

KWh of electricity purchased  x  GHG emission factor  x  Global warming potential = kg of gas

GHG

kWh of electricity purchased

Emission Factor

Global Warming Potential

Kg CO2 equivalent

CO2

19,873,454

0.515

1

=10,234,828.81

CH4

19,873,454

0.00001089

25

=5,410.5478515

N2O

19,873,454

0.00000907

298

=53,715.16387844

 

 

 

Total kgs

=10,293,954.52172994

 

 

 

Total metric tonnes

= 10,293.95

 

metric tons of emissions of greenhouse gases from electricity and natural gas usage for 2007  

 =  20,456.36  +  10,293.95

= 30,750.31 metric tonnes

Project the estimated reduction in greenhouse gas emissions and operating cost savings that will result from the proposed net zero project in 2008.

GHG emission from natural gas projected for 2008 before net zero project

GHG

mmBtu’s of Natural Gas

Emission Factor

Global Warming Potential

Kg CO2 equivalent

CO2

394,157

52.79

1

20,807,548.03

CH4

394,157

0.00475

25

46,806.14

N2O

394,157

0.000095

298

11,158.58

 

 

 

Total kgs

20,865,512.76

 

 

 

Total metric tonnes

20,865.51

 

GHG emission for natural gas projected for 2008 after net zero project

 

GHG

mmBtu’s of Natural Gas

Emission Factor

Global Warming Potential

Kg CO2 equivalent

CO2

15,766

52.79

1

832,301.92

CH4

15,766

0.00475

25

1,872.25

N2O

15,766

0.000095

298

446.34

 

 

 

Total kgs

834,620.51

 

 

 

Total metric tonnes

834.62

 

GHG emission from electricity projected for 2008 before net zero project

GHG

kWh of electricity purchased

Emission Factor

Global Warming Potential

Kg CO2 equivalent

CO2

20,270,924

0.515

1

10,439,525.86

CH4

20,676,342

0.00001089

25

5,629.13

N2O

21,089,869

0.00000907

298

57,002.96

 

 

 

Total kgs

10,502,157.96

 

 

 

Total metric tonnes

10,502.16

 

GHG emission from electricity projected for 2008 after net zero project

 

GHG

kWh of electricity purchased

Emission Factor

Global Warming Potential

Kg CO2 equivalent

CO2

2,027,092

0.515

1

1,043,952.59

CH4

2,027,092

0.00001089

25

551.88

N2O

2,027,092

0.00000907

298

5,478.95

 

 

 

Total kgs

1,049,983.41

 

 

 

Total metric tonnes

1,049.98

 

Total emission before net zero project (projected for 2008)=

31,367.67 metric tonnes

Total emission after net zero project (projected for 2008)=

1,884.60 metric tonnes

 

reduction in greenhouse gas emissions that will result from the proposed net zero project in 2008
=
Current projected greenhouse gas emission for 2008
-
reduced projected greenhouse gas emission for 2008 on application of net zero project

reduction in greenhouse gas emissions that will result from the proposed net zero project in 2008

=

31,367.67

-

1,884.60

=

29,483.07 metric tonnes

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