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Alternative Energy

Blazing a trail for a more sustainable, efficient industry

And while every alternative energy solution comes with the need for due diligence, in the long haul these companies are hoping to prove that the upfront investment makes businessas well as environmental sense.  The advantage, Mandel points out, is to “maximize the benefit to the triple bottom line of people, planet, and profit.”

Being ‘Green’ and Making Green: Incentives for Eco-Friendly Solutions 

The United States, as well as Canada and Mexico, offer a variety of grants, assistance, and rebates through various agencies as incentives for alternative energy solutions.

The U.S. Department of Agriculture has several programs for produce industry professionals to help offset costs and assist with technical knowledge.  One of these is the Rural Energy for America Program (REAP), which provides loans and grants for the installation of renewable energy projects and to make energy-efficient improvements.  There is also the Environmental Quality Incentives Program (EQIP), part of the Natural Resources Conservation Service, which offers technical and financial assistance to landowners interested in reducing their energy consumption for agricultural practices.

Additionally, the U.S. Department of Energy offers funding through the Office of Energy Efficiency and Renewable Energy (EERE) for renewable energy projects.  John Burton, general manager of Peter Rabbit Farms in Coachella Valley, CA noted that although the grower-shipper would still have installed solar panels without government rebates, their availability did serve as “a big incentive to get started.”

Rebates and various offers can also be found through local power companies and vary greatly by state.  Many opportunities, unique to particular regions, can be researched through the Database of State Incentives for Renewables & Efficiency (DSIRE) at www.dsireusa.org.

Canada and Mexico also have educational and financial resources for implementing alternative energy projects.  Natural Resources Canada’s ecoENERGY initiatives offer tools to improve energy performance and expedite green investments.  The program’s website (www.nrcan.gc.ca/ecoaction/) allows users to search for financial assistance by province, while Environment Canada also provides funding for projects.

With the enactment of the Renewable Energy Development and Financing for Energy Transition Law (LAERFTE) in Mexico in 2008, government-supported financing for green initiatives has become available. The National Fund for Energy Transition and Sustainable Exploitation of Energy offer support options, while an incentive developed by the Mexican government, World Bank, and the Global Environment Facility will help make up the difference in cost when converting to renewable sources.

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Produce professionals across the country are turning to alternative energy—such as solar and wind power—as the answer to saving time, money, and the planet.  Innovative measures have not only been proven successful in harnessing energy to help businesses operate more efficiently, but are effectively ‘greening’ the industry for lower environmental impact.  And although there are a number of creative endeavors, including Gills Onions using onion waste to power their operations and Dixon Ridge Farms generating power from walnut shells, we are limiting the scope of this article to solar and wind projects.

Following are a few examples of produce-related ingenuity in the use of alternative energy.

Here Comes the Sun

It is not a stretch to consider the sun as a viable source of energy.  Solar panels have been in existence for decades, and though their use has become more commonplace for both residential and commercial users, steep upfront investment costs and reliability have kept many from embracing the technology. 

Shipper and distributor SunFed, in Rio Rico, AZ, is taking sustainability to a whole new level by harnessing the power of sunlight.  Matt Mandel, vice president of sales and marketing, says SunFed recently completed a 418 kilowatt photovoltaic solar array (a collection of wire-connected solar modules) at the company’s main distribution facility, and was finishing a similar unit at their second facility.  In just two months of operation, Mandel reported the first installation had offset the equivalent of 147,000 pounds of carbon dioxide or the emissions from 7,500 gallons of gasoline. 

For John Burton, general manager of Peter Rabbit Farms in Coachella Valley, CA, the main criteria for moving forward on their 333 kilowatt solar panels—which services the grower-shipper’s custom cooler, were “the cost of energy, the cost of doing business, and the fact that virtually everyday there is sunshine.”  To Burton, the ability to implement a system that would make the business more efficient and eco-friendly was a “no-brainer.”

Burton’s move to installing solar was also prompted by a shorter turnaround time for achieving the company’s return on investment (ROI). “What really flipped the switch to go to solar,” he says, “was how much the payback had dropped.”  When he first began researching the possibility of using solar panels eight years ago, ROI was slated at 12 years; Burton’s current system is projected to pay back the costs of installation within just four years.

Blowing in the Wind

In addition to the sun as a natural energy source, there is also the wind.  Standing 238 feet high at Testa Produce, Inc. in Chicago (known as the Windy City) is a wind turbine with 70-foot-long blades that can be seen for miles. 

Installed in 2011, the turbine creates 750 kilowatts of power, generating 30 percent of Testa’s electricity needs.  And, according to Angela Bader, Testa’s marketing coordinator, there were over 40 days in the past year when the turbine provided 100 percent of the company’s energy needs.  On days when the turbine generated more power than necessary, Testa was able to sell it to the area’s local power supplier, Commonwealth Edison, part of Exelon Corporation.

The wind turbine met several criteria Testa Produce’s management had for expanding the business. First, they knew the growing company needed to operate more efficiently; second, because they were expanding, Bader said, “we needed to find a way to increase our competitive edge and offer something that really helped us stand out.” 

Peter Testa, company president, saw ‘going green’ as an opportunity to not only do something different, but help the planet at the same time. “If we don’t take care of the earth,” he says, “we don’t have a business or a safe atmosphere for future generations.”

Wise Words & Counsel

For those wishing to invest in more eco-friendly energy solutions, first and foremost, our sources advised extensive research.  Mandel says to carefully weigh your options, as a number of alternative energy companies have sprung up in recent years.  “Shop around like crazy,” he advises, and do “a true ‘apples to apples’ comparison.”  Sunfed looked into solar power for three years, he says, meeting “with six different companies to weigh the pros and cons of various technologies, service providers, contractors, and manufacturers.” 

Above all, those seeking these innovations need to be excited about the learning process and educating themselves on the variety of options available.

Bader suggests taking field trips to learn from organizations that have already implemented similar green projects.  Although ‘going green’ can be expensive initially, in many scenarios, the long-term ROI is well worth it.  Burton cautions everyone to crunch numbers on when “payback will come to fruition.” He emphasizes the importance of looking at the bigger picture and future benefits, instead of only the immediate or shorter term costs.

Hidden Benefits

 Benefits can also be realized in other ways: Testa Produce’s wind turbine gave the company a great deal of exposure and was used as a successful marketing tool.  SunFed’s solar installation aligned with
a wider branding message of sustainability, and Mandel sees many intangible benefits from reducing environmental pollutants, outside the company’s actual return on investment.

“There are always new technologies coming up,” Bader highlights, “so don’t be afraid to explore your options and think outside the box.”  She does warn, though, that as with any new technology there are often kinks that will need to be worked out.  In the long run, however, Bader says the benefits outweigh the learning process and surprises that may come with eco-friendly implementations.

Concluding Thoughts

For produce firms interested in alternative energy sources—such as wind and solar power—the benefits are many, but there are certainly risks.  For Sunfed, Peter Rabbit Farms, and Testa Produce it was important to find projects that were both environmentally and economically sustainable.  Each also capitalized on weather attributes to succeed—plenty of sunshine in Arizona and California, and year-round wind in blustery Chicago, Illinois.

And while every alternative energy solution comes with the need for due diligence, in the long haul these companies are hoping to prove that the upfront investment makes businessas well as environmental sense.  The advantage, Mandel points out, is to “maximize the benefit to the triple bottom line of people, planet, and profit.”

Being ‘Green’ and Making Green: Incentives for Eco-Friendly Solutions 

The United States, as well as Canada and Mexico, offer a variety of grants, assistance, and rebates through various agencies as incentives for alternative energy solutions.

The U.S. Department of Agriculture has several programs for produce industry professionals to help offset costs and assist with technical knowledge.  One of these is the Rural Energy for America Program (REAP), which provides loans and grants for the installation of renewable energy projects and to make energy-efficient improvements.  There is also the Environmental Quality Incentives Program (EQIP), part of the Natural Resources Conservation Service, which offers technical and financial assistance to landowners interested in reducing their energy consumption for agricultural practices.

Additionally, the U.S. Department of Energy offers funding through the Office of Energy Efficiency and Renewable Energy (EERE) for renewable energy projects.  John Burton, general manager of Peter Rabbit Farms in Coachella Valley, CA noted that although the grower-shipper would still have installed solar panels without government rebates, their availability did serve as “a big incentive to get started.”

Rebates and various offers can also be found through local power companies and vary greatly by state.  Many opportunities, unique to particular regions, can be researched through the Database of State Incentives for Renewables & Efficiency (DSIRE) at www.dsireusa.org.

Canada and Mexico also have educational and financial resources for implementing alternative energy projects.  Natural Resources Canada’s ecoENERGY initiatives offer tools to improve energy performance and expedite green investments.  The program’s website (www.nrcan.gc.ca/ecoaction/) allows users to search for financial assistance by province, while Environment Canada also provides funding for projects.

With the enactment of the Renewable Energy Development and Financing for Energy Transition Law (LAERFTE) in Mexico in 2008, government-supported financing for green initiatives has become available. The National Fund for Energy Transition and Sustainable Exploitation of Energy offer support options, while an incentive developed by the Mexican government, World Bank, and the Global Environment Facility will help make up the difference in cost when converting to renewable sources.

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Courtney Kilian is based in Vista, CA and has worked with domestic and international growers. She has also worked in public relations for the Natural Resources Conservation Service and California Avocados Direct.