General Mills inks 25-year on-site heat and power agreement expected to save $30M – Facilities Dive

General Mills Implements On-Site Combined Heat and Power System to Advance Sustainable Development Goals

Overview of the Energy Services Agreement

1. General Mills has entered into a 25-year energy services agreement with Unison Energy to deploy an on-site combined heat and power (CHP) system at its manufacturing facility in Hannibal, Missouri.
2. The CHP system is designed to supply approximately 90% of the plant’s annual electricity demand and around 70% of its steam requirements.
3. Unison Energy is responsible for financing, designing, constructing, owning, operating, and maintaining the system.
4. The project is expected to generate over $30 million in savings throughout the agreement’s lifecycle.

Alignment with Sustainable Development Goals (SDGs)

• SDG 7 – Affordable and Clean Energy: The CHP system provides a reliable, low-carbon energy source that significantly reduces dependence on traditional utilities, promoting access to sustainable energy.
• SDG 9 – Industry, Innovation, and Infrastructure: The initiative exemplifies innovative infrastructure development through the integration of advanced energy technologies within industrial operations.
• SDG 12 – Responsible Consumption and Production: By optimizing energy efficiency and reducing emissions, the project supports sustainable industrial consumption patterns.
• SDG 13 – Climate Action: The CHP system is projected to reduce the facility’s Scope 1 greenhouse gas emissions by approximately 57% and total site emissions by 28% annually, contributing to climate change mitigation efforts.
• SDG 17 – Partnerships for the Goals: The collaboration between General Mills, Unison Energy, and the Hannibal Board of Public Works demonstrates a strong public-private partnership fostering sustainable development.

Project Impact and Benefits

Energy Efficiency and Cost Savings

• The CHP system will deliver low-emission power and greenhouse gas-free steam, enhancing the plant’s energy efficiency.
• General Mills benefits from a predictable long-term energy supply with a fixed annual rate escalation of 2.5%, which is substantially lower than anticipated utility cost increases.
• Estimated energy savings exceed $300,000 in the first year of operation.

Environmental and Emission Reductions

• The facility’s Scope 1 emissions are expected to decrease by about 57%, while total site emissions will reduce by approximately 28% annually.
• This reduction represents an estimated 5% of General Mills’ global Scope 1 emissions footprint across its supply chain.

Collaborative Framework and Public-Private Partnership

• The agreement includes a dedicated standby framework for on-site generation developed jointly by General Mills, Unison Energy, and the Hannibal Board of Public Works.
• The deal compensates the local utility for maintaining capacity and incorporates performance and outage provisions to ensure reliability and financial sustainability.
• This partnership serves as a model for securing long-term economic and environmental benefits while supporting local government and utility financial health.

Statements from Key Stakeholders

Unison Energy

Mariko Meier, CEO of Unison Energy, stated: “By aligning our long-term Energy Services Agreement with General Mills’ utility needs and sustainability goals, and by partnering with Hannibal Board of Public Works to develop a mutually beneficial business solution, we have created a blueprint for reliable, cost-effective, and low-carbon energy solutions.”

General Mills

Daren Kaiser, Global Energy Strategy Leader at General Mills, commented: “This project exemplifies the strength of like-minded, public-private collaboration, to create a sustainable solution that will deliver reliable, efficient energy. These forward-thinking organizations developed a plan that will allow us to balance the challenge of reducing emissions and adding needed power to the grid.”

1. Sustainable Development Goals (SDGs) Addressed or Connected

1. SDG 7: Affordable and Clean Energy
   • The article discusses the implementation of an on-site combined heat and power (CHP) system designed to provide a significant portion of the facility’s electric and steam load with low-emissions power.
   • This aligns with SDG 7’s aim to ensure access to affordable, reliable, sustainable, and modern energy for all.
2. SDG 9: Industry, Innovation, and Infrastructure
   • The collaboration between General Mills, Unison Energy, and the Hannibal Board of Public Works to develop a dedicated standby framework and implement innovative energy solutions reflects SDG 9’s focus on building resilient infrastructure and fostering innovation.
3. SDG 12: Responsible Consumption and Production
   • The project’s goal to reduce emissions and improve energy efficiency supports sustainable consumption and production patterns.
4. SDG 13: Climate Action
   • The reduction of Scope 1 emissions by about 57% and total site emissions by approximately 28% per year directly contributes to combating climate change and its impacts.

2. Specific Targets Under Those SDGs Identified

1. SDG 7 Targets
   • Target 7.2: Increase substantially the share of renewable energy in the global energy mix.
   • Target 7.3: Double the global rate of improvement in energy efficiency.
2. SDG 9 Targets
   • Target 9.4: Upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies.
3. SDG 12 Targets
   • Target 12.2: Achieve the sustainable management and efficient use of natural resources.
4. SDG 13 Targets
   • Target 13.2: Integrate climate change measures into policies, strategies, and planning.

3. Indicators Mentioned or Implied to Measure Progress

1. Energy Supply and Efficiency Indicators
   • Percentage of the facility’s annual electric load supplied by the CHP system (~90%).
   • Percentage of the facility’s steam load supplied by the CHP system (~70%).
   • Annual energy savings in monetary terms (e.g., $300,000 in the first year).
2. Emission Reduction Indicators
   • Reduction in Scope 1 emissions by about 57% at the facility level.
   • Reduction in total site emissions by approximately 28% per year.
   • Contribution to General Mills’ global Scope 1 footprint reduction (~5%).
3. Financial and Operational Indicators
   • Fixed annual rate escalation of 2.5%, compared to projected utility increases.
   • Long-term cost savings over the 25-year agreement (over $30 million).
   • Performance and outage provisions ensuring reliability.

4. Table of SDGs, Targets, and Indicators

Source: facilitiesdive.com