As the energy transition accelerates in the food and beverage (F&B) industry, on-site renewables are fast becoming an essential strategy, helping companies reduce emissions, lower energy costs, and lessen their grid dependence. Security of supply is crucial for F&B companies, which are highly dependent on large amounts of electricity for reliable cooling, as well as vast quantities of heat and steam at various temperatures for cleaning, pasteurisation, and cooking.
“Because the processes are complex, we rarely talk about one single technology,” says Mirko Markovic, Senior Business Development Manager B2B at E.ON Energy Infrastructure Solutions. “For food and beverage sites, it is usually a combination of several building blocks.
“Many F&B customers prefer an ‘energy as a service’ model where a partner like E.ON finances, builds and operates the assets, and the customer simply pays for the useful energy. That allows them to focus on their core business and product while we take ownership for the performance of the energy system.”
F&B frontrunners
When it comes to the options, rooftop solar panels, typically photovoltaic (PV), are often the first technology that food and drinks companies explore, since most factories have large flat roofs, stable electricity demands during the day, and high power prices.
“The size, structural strength, shading and number of roof penetrations decide how much PV you can install,” notes Markovic. “A large flat roof on a bottling plant can easily host several megawatts, but a fragmented roof with many skylights and HVAC units might only allow a small system.”
When roof space is a limitation, PV carports could be an alternative option for facilities with large carparks. Meanwhile, if free land is available with no plans for expansion, a small, ground-mounted PV field can also be considered.
Solar thermal panels are another option, using the sun to heat a fluid that is then used to produce hot water. A food or drink plant with strong and stable hot water demand is often a good candidate for solar thermal. However, unlike PV, the technology requires sufficient roof or ground area close to point-of-use, as well as space and routing for insulated pipes and hot water storage. Installation on fragmented roof layouts is often overly complex and expensive, making PV the more pragmatic choice in those cases.
Overall, solar panels both PV and thermal are relatively simple, modular, and quick to install, with low operating costs and no interference with a site’s core processes. All in all, Markovic describes them as a “very popular and visible entry point into on-site renewables”.
Wind power, in contrast, tends to be less attractive due to extensive regulatory processes and the need for comprehensive environmental studies, with planning, approval, and development phases taking five to seven years in Germany, for example. Nevertheless, turbines can make a great addition to PV, since wind is often available when sun is not.
For certain F&B companies, biomass or biogas could be a more attractive option – particularly for dairies, breweries, sugar or starch producers with abundant organic waste or wastewater. This biogas/biomass can then be used in boilers or combined heat and power (CHP) units, generating renewable heat and power from waste.
“Biogas is not suitable for every plant, but where the feedstock is available and stable, it is very attractive,” says Markovic. He notes that this strategy requires more space than PV or heat pumps and aren’t always realistic for compact urban sites due to emissions, noise, and traffic. “On a rural dairy or brewery with own land and feedstock, it can be a very good fit.”
Understanding the process
When it comes to choosing the right strategy, Markovic says the key outcome for E.ON is to deliver green and reliable energy at the lowest possible long-term cost.
“When we assess a food or drink processing facility, we always start with the basics,” says Markovic. “We want to understand the current situation on site, the concrete pain points, and the strategic and operational targets of the customer.”
In initial meetings, it’s all about understanding the facility’s cost pressures, risk concerns, CO2 targets, and upcoming investments. Meanwhile, a clear picture of the site’s energy consumption is built. How much electricity, gas and heat are used, at which times, in which processes, and at which temperature levels?
From there, Markovic says the process usually follows three steps. The first is looking at opportunities to reduce demand through better efficiency. He adds: “In many plants you can achieve measurable savings just by smarter controls of ventilation and cooling, for example. Small tweaks in operating hours or temperatures of existing energy systems can already reduce primary energy demand by a few percent.”
Before a decision to build renewables is made, it’s essential to look at where stable waste heat is available and how it might be utilised. Processes can then be connected directly or via heat pumps, which can serve the facility’s hot and cold needs.
“Compared to the classic setup with a chiller for cooling and high-temperature steam that is throttled down for lower-temperature needs, this integrated approach is much more efficient,” explains Markovic.
After waste heat has been explored and processes integrated, the remaining demand can be covered with renewables and high-efficiency supply. Using the updated load and heat profile, E.ON assesses the potential for new renewable infrastructure.
“All of this is done in full transparency and always together with the customer,” adds Markovic. “We share data, assumptions and options and we adapt the concept to their constraints such as available space, capex limits, preferred contract model, and future production plans. In the end, the result is not a generic proposal but a joint transformation concept for the site that is technically sound, commercially viable and aligned with the customer’s strategy.”
Regulatory considerations
Local regulations around electricity and gas networks heavily shape decisions, with grid fees, taxes, and levies on electricity usage influencing how attractive electrification might be when compared against gas or biomass in some markets. Meanwhile, in other countries, CO2 pricing and fuel taxes impact the operating cost of fossil fuel-based solutions relative to renewables. Since regulations are changing rapidly, a good energy partner will have a strong hold on the latest trends, helping customers pick a future-proof solution.
Sometimes, subsidies and funding programs have a positive impact on the business case, completely changing the ranking of technologies despite their initial capex. Examples include investment grants or tax incentives for industrial heat pumps and electrification of process heat, making waste heat recovery systems a more attractive option over gas-based solutions. Funding opportunities are often difficult to navigate, which is why E.ON uses its experience to help customers identify the best scheme for the solution. E.ON can also finance the project fully, returning 100% of the savings generated via available funding directly to the customer through reduced heating or power costs.
“Regulation is dynamic and complex,” comments Markovic. “The key is to integrate it from the beginning so that the final solution is not only technically and commercially sound, but also fully compliant and robust over the long term. We screen all relevant rules and funding options very early in the project and include any available subsidies and support schemes directly in the business case for the customer.”
Final thoughts
In today’s rapidly evolving energy landscape, there is no one-size-fits-all solution for food and beverage companies. With each facility facing unique challenges and opportunities that influence their renewables journey, the real advantage lies in working with an energy partner who can design, simulate, implement, and maintain the optimal mix of solutions for their individual case. And by working with a partner they can trust, F&B companies can focus on what matters most: growing their core operations and remaining competitive in a challenging marketplace.
