Companies
work to make own energy
Boston
Globe
By Robert
Gavin
July 9, 2007
QUINCY -- For years, Twin Rivers Technologies sold the by products from
soybean and other natural oils it processes to pet food makers. But as
energy prices began to rise, the company found a better use for
leftover oils: fuel.
Today, these leftovers account for about half the fuel Twin Rivers
burns at its Quincy plant, saving the company millions of dollars in
energy costs. The self-generated fuel is just part of Twin Rivers'
efforts to become energy independent. It also uses steam from its
manufacturing process to generate electricity and hopes to eventually
add wind power, too.
"Our goal, " said company president Paul Angelico, "is to be fossil
fuel free within five years."
Twin Rivers is among the growing number of Massachusetts businesses --
from small markets to retail giant Staples Inc. -- that are trying to
gain control over soaring energy costs by producing it themselves. Some
are turning waste into fuel. Others are investing in wind, solar, and
hydro power. Still others, like Twin Rivers, are combining different
technologies.
Driving the move to self-generation is the surge in energy prices and
uncertainty of how high they might go. A few years ago, businesses were
reluctant to invest in energy projects, said Warren Leon, director the
state's Renewable Energy Trust, which funds alternative energy
initiatives through small utility surcharges.
But with prices still rising, businesses believe high energy costs are
here to stay, Leon said. As a result, applications to a Renewable
Energy Trust program that helps finance alternative energy projects for
businesses and institutions have more than doubled since 2004.
"If you're just purchasing energy on the market, you are vulnerable to
its swings," Leon said. "But when you have something onsite, like a
wind turbine, you can get some predictability."
Gaining
control over
energy costs is one reason Ring Bros. Marketplace , a specialty grocer
in Dennis, plans to install a system that turns food waste into
electricity. Electricity accounts for about 15 to 20 percent of the
store's costs, said Patrick Ring, the manager and buyer.
The system,
which will
cost about $280,000, including $195,000 in grants from the Renewable
Energy Trust, composts spoiled produce, meat, and other organic
material to produce methane gas. The gas fuels a turbine, which,
depending on the amount of organic waste available, could generate more
electricity than the store needs, Ring said.
"We needed to
figure how to cut down on our electrical costs because they're so
high," Ring said.
Staples, meanwhile, is pursuing wind power to provide about 25 percent
of the electricity it needs at its Framingham headquarters, said Mark
Buckley, vice president of environmental affairs. The office supply
retailer is undertaking wind projects at three other US locations and
is also installing solar energy systems.
So far, Staples has installed solar panels at nine locations, including
a distribution center in Killingly, Conn., where solar power generates
about 15 percent of the facility's electricity.
"We want to be more energy-independent," Buckley said. "It's good for
the bottom line, good for the environment, and good for the communities
we serve."
For Massachusetts companies, it's also good for survival.
Massachusetts businesses are saddled with the third-highest energy
costs in the nation, paying 51 percent more than the national average,
according to Economy.com, a West Chester, Pa., forecasting firm.
"If you're competing against states where electric rates are 40 or 50
percent lower, it's tough," said Robert Rio, vice president of
government affairs at Associated Industries of Massachusetts. "It's
pushing people to become their own energy managers."
Twin Rivers competes not only against US firms, but also foreign
manufacturers, many with lower labor and other costs. The company,
which operates from a former Procter & Gamble Co. soap plant,
refines oils from soybeans, coconuts, sunflowers, and beef tallow to
make chemicals used in soaps, detergents, cosmetics, lubricants, and
foods.
Angelico, the company president, said Twin Rivers decided to try
burning the natural oil byproduct as fuel several years ago when the
price of petroleum began to rise. The company spent about $75,000 for
testing.
Twin Rivers, which burns all the byproduct it generates, combines it
with fuel oil in a 50-50 mixture. The company discovered the byproduct
had another benefit: It cut pollutants by an average of about 30
percent. Twin Rivers subsequently patented the substance as a clean air
additive.
Twin Rivers burns the mixture to produce steam for manufacturing . The
company then found another way to cut energy costs by using excess
steam energy to drive a turbine, which today generates about one-third
of the plant's electricity. All told, Twin Rivers has cut its combined
energy costs by about $3 million a year, including alternative and
renewable energy tax credits, Angelico said.
Twin Rivers wants to eventually add wind power, although recent studies
concluded that it isn't economical for the company yet. Angelico hopes
that will change soon as the cost of the technology comes down.
"We have to figure out a way to make wind power viable," Angelico said.
"We produce a green product from renewable sources, and we're trying to
practice what we preach."
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