Apply solar thermal water heating in industrial processes

This case study is part of decarbonization best practices shared with AB InBev Eclipse sustainability program’s community. Discover more about the Eclipse program here.

Givaudan is committed to becoming a climate-positive business by 2050, addressing Scope 1, 2, and 3 emissions in accordance with the greenhouse gas (GHG) protocol. By 2030, the company plans to reduce its operational carbon emissions by 70% and its supply chain emissions by 20%. By 2040, Givaudan intends to achieve a 50% reduction in supply chain emissions, while also ensuring that Scope 1 and 2 emissions are climate positive. Ultimately, by 2050, the entire supply chain is expected to be climate-positive, encompassing all three scopes of emissions.  

For progress towards these objectives, Givaudan implemented a solar water heating initiative in its facilities. 

Givaudan has effectively implemented a solar water heating initiative at its Cuernavaca facility, significantly reducing natural gas consumption and greenhouse gas (GHG) emissions.  This project addresses the dual challenges of electricity sourcing and the burning of natural gas on-site, showcasing a replicable model for other companies.  The implementation consists of 10 steps (elaborated in the Approach section): 

1. Initial assessment 

2. Transition to green energy 

3. Identify opportunities for gas reduction 

4. Research solar alternatives 

5. Select technology 

6. Project implementation 

7. Engage experienced suppliers 

8. Address space constraints 

9. Testing and training 

10. Monitor and adjust 

Givaudan's solar water heating initiative serves as an example of how companies can effectively reduce emissions through innovative energy solutions. By following these detailed steps, other organizations can adopt similar strategies to enhance their sustainability efforts. 

Sustainability impact

Climate

Main KPIs (2024):  

• 61 tons of CO2/year avoided with the installation of Solar Heater Systems 

• 4% reduction of the total boiler emissions

• 350 MWh reduction in energy consumption (33% of site consumption) 

This initiative directly targets Scope 1 emissions, which include direct greenhouse gas (GHG) emissions from owned or controlled sources. The reduction of natural gas consumption in the boilers leads to a decrease in direct CO2 emissions. The project has reduced annual CO2 emissions by 61 tons, representing a 4% reduction of the total boiler emissions.

Nature

The implementation of solar water heaters not only addresses immediate energy needs but also fosters a healthier environment, contributing to the long-term sustainability of natural resources and ecosystems: 

1. Lower greenhouse gas emissions: By using solar energy instead of natural gas for water heating, solar water heaters significantly reduce greenhouse gas emissions. This transition helps mitigate climate change, which poses a major threat to biodiversity and the health of ecosystems. 

2. Decreased air pollution: Natural gas combustion releases pollutants that can harm air quality. By reducing natural gas consumption, solar water heaters contribute to cleaner air, benefiting both human health and ecosystems. This improvement in air quality can lead to healthier habitats for wildlife and better living conditions for communities. 

3. Conservation of natural resources: Utilizing solar energy reduces the demand for fossil fuels, helping conserve natural gas reserves. This shift minimizes the environmental impact associated with extraction processes, such as habitat destruction and water pollution, thereby promoting a more sustainable use of the planet's resources.

Social

The implementation of solar water heating systems not only fosters energy independence and economic growth but also enhances the quality of life for individuals and communities, paving the way for a more sustainable and resilient future: 

1. Energy independence: Solar water heaters enhance energy independence for communities by reducing reliance on fossil fuels. This shift promotes sustainable energy practices and empowers local populations to take control of their energy sources. 

2. Economic benefits: The installation and maintenance of solar water heating systems can create local jobs, contributing to economic development and community resilience. By fostering a green job market, these initiatives support local economies and provide stable employment opportunities. 

3. Improved quality of life: Access to renewable energy sources can significantly improve living conditions, particularly in remote or underserved areas. By providing reliable hot water without the environmental costs associated with fossil fuels, solar water heaters enhance the overall quality of life for residents, promoting health and well-being. 

Business impact

Benefits

Overall, this initiative not only contributes to sustainability goals but also enhances operational efficiency and productivity, ultimately leading to cost savings and a more resilient business model: 

1. Benefits on operating costs (OPEX): savings on energy expenditures - The integration of solar concentrators reduced annual natural gas consumption by approximately 4%, equating to a savings of around 1,218 GJ/year.  

2. Operational efficiency: By integrating 50 solar concentrators into the Cuernavaca plant's hot water system, Givaudan is enhancing operational efficiency. The system generates 1,218 GJ of thermal energy annually, significantly reducing reliance on natural gas for boiler operations. This transition not only optimizes energy use but also stabilizes energy costs in the long term. 

3. Enhanced productivity: The real-time monitoring system allows for precise tracking of water consumption, thermal energy generation, and system performance. This capability enables proactive maintenance and quick responses to any operational issues, minimizing downtime and ensuring consistent production levels. As a result, the plant can maintain higher productivity rates while reducing operational disruptions. 

Costs

Total investment (CAPEX) for the Solar Water Heater System.

Key considerations: The effectiveness of this solution is directly influenced by solar exposure, which varies based on geography, climate conditions, and seasonal changes. Factors such as the time of year, as well as whether the day is sunny or cloudy, can significantly affect the system's performance. 

Impact beyond sustainability and business

Co-benefits

By taking proactive steps toward sustainability, the implementer company not only enhances its reputation but also increases the engagement of its collaborators. In today’s world, employees are increasingly motivated to work for companies that demonstrate a genuine commitment to caring for the environment. This proactive approach fosters a positive image for the implementer, which can strengthen relationships with key stakeholders, including customers, suppliers, and local governments. Ultimately, these efforts contribute to the company’s long-term success. 

Potential side-effects

Main identified risks: 

• Lack or availability of the areas to be impacted 

• Manufacturing defects 

• Damages to the concentrators during transportation 

• Exchange rate variation (some devices are imported) 

• Changes in scope not contemplated in this project 

• Hidden defects in installations 

• Lack of space to install the concentrators 

• Water and temperature demand above expectations. 

Typical business profile

Relevant business profiles for solar water heating solutions: 

• Manufacturing sector: Businesses in the manufacturing sector, particularly those in food and beverage, textiles, and chemical production, often have significant energy demands for processes such as heating water for production, cleaning, and facility operations. Implementing solar water heating systems can lead to substantial energy savings and reduced reliance on fossil fuels. 

• Organizations on the Net Zero / Nature Positive Journey: Companies actively pursuing net-zero emissions or nature-positive strategies will find solar water heating systems align with their sustainability goals. This initiative can help reduce Scope 1 emissions and contribute to overall carbon reduction targets. 

• Geographical relevance: This solution is particularly applicable in regions with high solar potential and rising energy costs, making it a financially viable option for businesses looking to enhance their sustainability efforts. 

• Business functions: Specific functions such as production, facility management, and cleaning operations can greatly benefit from the integration of solar water heating, optimizing energy use and reducing operational costs. 

Approach

The project went through several key phases: 

1. Feasibility assessment: to compare multiple scenarios to determine if the project is viable based on impact, purpose alignment, budget, delivery, timing, and technology 

2. Concept development: to evaluate various solutions in line with Givaudan's sustainability ambitions 

3. Basic design definition: to establish a single design and request full credit for it 

4. Detail finalization: to complete the design with the support of the supplier and the technical team 

5. Execution phase: to implement the design 

6. Project closure: to deliver the project to the area owner and begin reporting on key performance indicators (KPIs) 

The implementation (execution phase) consisted of 10 steps: 

1. Initial assessment 

• Objective: Identify key areas for GHG reduction 

• Action: Conduct a thorough assessment of energy sources and operational practices, focusing on electricity and natural gas usage. 

2. Transition to green energy 

• Objective: Reduce reliance on fossil fuels 

• Action: Shift to renewable energy sources for electricity, laying the groundwork for further emissions reductions. 

3. Identify opportunities for gas reduction 

• Objective: Minimize natural gas consumption for boiler operations 

• Action: Analyze fuel demand for heating water from 20°C to over 90°C, recognizing the potential for solar energy integration. 

4. Research solar alternatives 

• Objective: Explore renewable energy solutions 

• Action: Investigate suppliers and companies with experience in solar technologies. Conduct benchmarking studies to identify effective solutions. 

5. Select technology 

• Objective: Choose the most efficient solar technology Action: Determine that solar concentrators are the best available technology for preheating water in your local context, based on research findings. 

6. Project implementation 

• Objective: Structure the project for effective execution. 

• Action: Project management, with the following phases - Feasibility assessment, Conceptual development, Basic design definition, Detail finalization, Execution and Project closure 

7. Engage experienced suppliers 

• Objective: Ensure technical reliability 

• Action: Collaborate with suppliers who possess a high level of expertise in solar technology to support project execution and gas savings calculations. 

8. Address space constraints 

• Objective: Optimize site usage for solar concentrators. 

• Action: Install solar concentrators on elevated platforms atop two buildings to maximize space and efficiency. 

9. Testing and training 

• Objective: Ensure system functionality and operational readiness 

• Action: Conduct a comprehensive testing phase to verify the performance of the solar concentrators. Provide training for technical maintenance and Environment, Health, and Safety teams to manage the system effectively and interpret performance data. 

10. Monitor and adjust 

• Objective: Maintain optimal performance 

• Action: Implement a monitoring system to track energy savings and emissions reductions, making adjustments as necessary based on performance data. 

Key additional steps

• Benchmarking visit: A key resource was a benchmarking visit to a nearby company that had already implemented solar thermal technology. This visit enabled Givaudan to evaluate the installation requirements, along with the advantages and disadvantages of the system. The project leader for Givaudan's initiative was the same expert who installed the solar concentrator systems at the neighboring company, providing firsthand insights and expertise.

• Comprehensive training plan: Another essential resource was the development of a comprehensive training plan for all personnel involved, especially for the Maintenance and EHS teams. This training ensured team members attained a high level of autonomy in interpreting, operating, and troubleshooting the software associated with the solar thermal solution. By equipping staff with these critical skills, Givaudan enhanced both operational efficiency and safety. 

Givaudan identifies three key success factors for the implementation of this initiative: 

1. Sustainability commitments integrated into the site roadmap: The ambition to reduce the site's footprint at a senior level within the organization is a high priority. This commitment guides the growth of the site with a sustainability-focused approach. 

2. Technical supplier availability: The second step involves partnering with suppliers who possess the necessary expertise. In this case, the supplier has certified personnel to advise on and execute these types of projects. 

3. Commitment: This factor goes beyond merely discussing sustainability; it requires ensuring that there is a budget allocated for executing these projects. The primary driver should not be a return on investment but rather the reduction of the operational impact. 

Stakeholders involved

Internal Stakeholders involved 

This project was made possible through the collaboration of several stakeholders, involving different teams such as  

• Operations 

• Environment, Health and Safety 

• Sustainability  

• Engineering  

• Maintenance  

• Procurement  

• Controlling 

• Centers of Excellence (CoE) for Global Teams, including Maintenance and Sustainability. 

The main suppliers for this initiative were Spirax Sarco Mexicana and Inventive Power.

External Stakeholders involved 

A previous benchmark was conducted with a company located in the same industrial park as Givaudan. During this visit, the project team was able to observe the company's installations, and get to know the main challenges of this solution.

Key parameters to consider 

As mentioned in the Approach section, the project went through several key phases: 

1. Feasibility assessment: To compare multiple scenarios to determine if the project is viable based on impact, purpose alignment, budget, delivery, timing, and technology. 

2. Concept development: To evaluate various solutions in line with Givaudan's sustainability ambitions. 

3. Basic design definition: To establish a single design and request full credit for it. 

4. Detail finalization: To complete the design with the support of the supplier and the technical team. 

5. Execution phase: To implement the design. 

6. Project closure: To deliver the project to the area owner and begin reporting on key performance indicators (KPIs). 

The overall timeline from the feasibility assessment to project closure is approximately 18 months. To note, some devices were imported, resulting in long waiting times.  

Implementation and operations tips 

The main challenge occurred during execution, where there was a need to acquire greater expertise in civil engineering, since the installation work of the structure where the concentrators rest had to be certified and include a calculation report. Once this was detected, it was reported in the weekly follow-up meetings with the committee, where a scope change was made and more resources were dedicated to the platform. 

A key piece of advice to consider is that once the software monitoring the system is installed, there should be thorough technical training for the person dedicated to its supervision, as well as for a backup. This is to avoid interruptions in its operation in case of personnel turnover. While the software is user-friendly, basic troubleshooting should be something that can be executed on-site; this helps to prevent unwanted downtimes.