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Frito Lay North America the Making of a Net Zero Snack Chip Case Solution
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:
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Background
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Analysis
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Recommended Solutions
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Exhibits and References
Frito Lay North America the Making of a Net Zero Snack Chip Case Analysis
2. 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.
3. 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:
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Only three greenhouse gases (GHG) are emitted which are CO2, N2O and CH4.
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Operating costs only comprise of the utilities.
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All changes in infrastructure have been made at the start of 2008.
i. Metric Tons of Emissions of Greenhouse Gases from Electricity and Natural Gas Usage for 2007
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 |
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|
|
Total metric tonnes |
= 20,456.36 |
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 |
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|
|
Total kgs |
=10,293,954.52172994 |
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|
|
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 |
ii. 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 |
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|
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Total kgs |
20,865,512.76 |
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|
|
Total metric tonnes |
20,865.51 |
GHG emission for natural gas projected for 2008 after net zero project |
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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 |
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|
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Total kgs |
834,620.51 |
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|
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Total metric tonnes |
834.62 |
GHG emission from electricity projected for 2008 before net zero project |
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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 |
|
|
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Total kgs |
10,502,157.96 |
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|
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Total metric tonnes |
10,502.16 |
GHG emission from electricity projected for 2008 after net zero project |
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|||
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 |
|
|
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Total kgs |
1,049,983.41 |
|
|
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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 |
||||||
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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