"Now that the temperatures are extremely low outside, some growers might be a little worried about their energy costs. But somehow, not every grower in Canada or the United States is worried about the price of natural gas or hydro once they start picking again", said David Arkell, CEO of 360 Energy. Arkell's company is working with growers that want to pursue energy excellence. "Growers have to understand that energy is controllable and for that reason they should monitor their energy usage and pricing all the time. There are many management techniques or processes and tools out there, but not every grower knows how to use them."According to Arkell, most greenhouse growers sporadically look at energy. They sometimes have somebody that is partially dealing with buying and supplying, but there isn't significant effort by growers to focus on controlling energy on a daily basis. Energy is pretty cheap in North America, and in some areas it is regulated as well. The mindset of many growers is that there is not much that can be done except by equipment to control energy costs."
Arkell says that growers can realize up to 20 percent energy savings, if they were more knowledgeable and understood what should be done and how they could do it. "By integrating energy management into their daily activity, big savings can be achieved. There are a lot of opportunities to control energy costs more effectively. The rate of return on focusing on energy management is significant."
David Arkell consulting at Doefs Greenhouses in Alberta. They are one of the growers that took a closer look at their energy management
Arkell stresses that growers should look towards the future and be prepared. "In Holland, the margins on the fresh produce has decreased sharply, so growers were forced to take a closer look at their cost price; they realized that they had to bring their energy costs down. Not only with more efficient production technology, but also by investing in energy management. The same could happen in Canada as well; if the industry is under pressure, growers will be forced to cut down the cost price as well."
Lately, the larger North American greenhouse operations understand this problem and they have become more pro-active. "We assist growers in advising on buying the energy, but also spend a lot of time with them to spar about energy usage and savings. We also make growers aware of how and where they use their energy and what they could consider to mitigate or reduce their energy usage year round, including both winter and summer seasons. We monitor their usage, and audit their management process together with growing consultants, accounting personal and operation managers."
Grower Joe Doef in the greenhouse with Energy consulant David Arkell and Crop Consultant Cees VandenEnden of HotiSource Consulting
Arkell stresses out that the average energy savings that can be achieved are at least 20 percent. "For example, last year (2014), Canadian growers experienced a very tough winter. We have customers that are on interruptible gas contracts, who were cut off from the system when they needed the gas the most. We helped them by searching the market for them and offered them natural gas against the best price available. Our customers saved thousands of dollars thanks to our service."
As another example, Arkell explained an energy audit is part of the energy excellence process for growers. “We also identify technical items and note financial implications by not taking action. For example, advising a grower to start using IR blockers and shading screens and the costs and savings involved. 360 Energy has developed a comprehensive greenhouse energy performance scorecard for growers to determine their current status, and help them decide future priorities and actions they should make toward improve the energy performance."
"Margins are going to get tighter, and greenhouse companies are becoming more corporate, disciplined and strategic, so they will have to take a look at energy in ways they have never looked at it before."
For more information:
360Energy
David Arkell
david.arkell@360energy.net
www.360energy.net