Companies Work to Make Own Energy

Companies Work to Make Own Energy

Jul 09 - The Boston Globe

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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