CHP in the Food & Beverage Manufacturing Industry


		Beverages

		Bakeries & Tortillas

		Sugar & Confectioneries

		Seafood Preparation & Packaging

		Meat

		Dairy

		Grain & Oilseed Milling

		Fruit & Vegetable Preserving

		Snack Foods & Peanut Butter

Markets

Market Screening Factors
The food & beverage processing market is diverse, highly dependent upon product for its energy needs, and difficult to profile as an industry. Several factors can “screen” likely food & beverage markets for CHP utilization, including:

1. High energy intensity
• Indicates need for a baseline of consistent, reliable power in relation to plant size
2. Small-to-medium sized electric demand
• 87.5% of existing food processing plants in the Major Industrial Plant Database are less than 5 MWe
• California Energy Commission believes “Nationally, many large industrial customers have already embraced distributed generation. The largest potential markets for DER in the near term lies with commercial and small- to medium-sized industrial customers.”
3. Flat, year-round load profile
• CHP systems are most efficient when run 24/365
4. High thermal/electric ratios
• High thermal needs indicate opportunity to use waste heat
5. Strong industry viability
• Need to analyze by subsector—industry is too diverse to generalize across an entire industry
6. Pressing industry drivers
• Could be unique to subsector, such as need for power reliability to keep chocolate flowing in confectionery market
7. Appropriate CHP equipment sizing and availability
• Power, hot water, space cooling needs and how prime mover and available CHP equipment can be sized to meet those needs
8. Location
• A preponderance of food & beverage processing plants in Northeast, Midwest, CA, and TX may indicate raw product availability, access to markets, favorable spark spread/rate structures, regional incentives, etc.

By applying these screens to the major NAICS 311 and 312 (food & beverage) industries, 4- and 6-digit NAICS market sectors and subsectors with high CHP utilization potential have been identified in below chart.

The most appropriate associations representing these markets are also listed. USCHPA and SENTECH have been in touch with many of these associations as a way to disseminate targeted information to end-user groups.

Food & Beverage Processing Markets with High CHP Utilization Potential

Market Sector (NAICS 4 digit)	Market Subsector (NAICS 6 digit)	Industry Association(s)

3112-Grain & Oilseed Milling	Wet Corn Milling	Corn Refiners Association, Inc.
	Soybean Processing	National Oilseed Processors Association United Soybean Board
	Breakfast Cereal Mfg	American Association of Cereal Chemists (AACC)

3113-Sugar & Confectionery Product Mfg.	Sugarcane Mills	The Sugar Association American Sugar Alliance Sugar Industry Technologists, Inc.
	Cane Sugar Refining	The Sugar Association American Sugar Alliance Sugar Industry Technologists, Inc.
	Beet Sugar Mfg	Beet Sugar Development Foundation The Sugar Association American Society of Sugar Beet Technologists American Sugar Alliance Sugar Industry Technologists, Inc.
	Chocolate and Confectionery Mfg from Cacao Beans	World Cocoa Foundation American Association of Candy Technologists National Confectioners Association
	Confectionery Mfg from Purchased Chocolate	World Cocoa Foundation American Association of Candy Technologists National Confectioners Association
	Nonchocolate Confectionery Mfg	American Association of Candy Technologists National Confectioners Association

3114-Fruit & Vegetable Preserving & Specialty Food Mfg	Fruit and Vegetable Canning (with caveat of seasonality problem)	National Food Processing Association Food Processors Institute Northwest Food Processors Association CA League of Food Processors

3115-Dairy Product Mfg	Fluid Milk Mfg	Milk Processor Education Program International Dairy Foods Association Wisconsin Milk Marketing Board
	Cheese Mfg	International Dairy Foods Association National Cheese Institute American Cheese Society International Association for Food Protection

3116-Meat Product Mfg	Animal (except Poultry) Slaughtering	American Meat Institute
	Meat Processed from Carcasses	American Meat Institute North American Meat Processors Association
	Rendering and Meat Byproduct Processing	American Meat Institute North American Meat Processors Association
	Poultry Processing	American Meat Institute U.S. Poultry & Egg Association

3117-Seafood Product Preparation & Packaging	Seafood Canning	National Fisheries Institute
	Fresh and Frozen Seafood Processing	National Fisheries Institute

3118 -Bakeries & Tortilla Mfg	Commercial Bakeries	American Bakers Association American Institute of Baking
	Cookie and Cracker Mfg	American Bakers Association American Institute of Baking
	Dry Pasta Mfg	Wheat Foods Council
	Tortilla Mfg	Tortilla Industry Association

3119 -Other Food Manufacturing	Roasted Nuts and Peanut Butter Mfg	Peanut & Treenut Processors Association
	Other Snack Food Mfg (cookies and crackers, chips and similar snacks)	Snack Food Association

3121- Beverage Mfg
	Breweries	American Society of Brewing Chemists
	Wineries	The Wine Institute