November 5, 2018
Smithfield Foods announces investment to reduce greenhouse gas emissions
Smithfield Foods, Inc. has announced a nationwide expansion of Smithfield Renewables, innovative projects that are designed to help meet the company's goal of reducing its greenhouse gas (GHG) emissions by 25% by 2025, which it set in concert with the Environmental Defense Fund (EDF).
As part of the expansion of Smithfield Renewables, Smithfield is setting the ambitious goal of implementing "manure-to-energy" projects across 90% of its hog finishing spaces in North Carolina and Utah, and nearly all Smithfield's hog finishing spaces in Missouri over the next ten years. This timeline will aid the company in achieving-and exceeding-its "25 by '25" commitment.
The company would also convert existing anaerobic treatment lagoons to covered digesters or constructing new covered digesters to capture biogas, which will be transported to central processing facilities to be converted into renewable natural gas (RNG) in North Carolina, Missouri, and Utah.
In addition, Smithfield would launch new programmes that target GHG reductions and bolster its sustainability efforts at farms, plants and throughout the company's transportation network.
"When we set an objective, we go big at Smithfield to achieve it. Today's announcement is the culmination of decades spent studying and perfecting the commercial viability of 'manure-to-energy' projects. Our investment in these projects underscores our longstanding commitment to sustainability, as well as our promise to produce good food in a responsible way," said Kenneth M. Sullivan, president and chief executive officer of Smithfield Foods.
"The scale of these projects is audacious. But, through partnerships with a broad coalition of stakeholders, including family farmers, government, energy partners and other constituents, we're confident we can bring about sustainable, revolutionary progress in our effort to minimise our environmental footprint."
Smithfield has been researching and exploring sustainable ways to transform manure into energy for many years.
"Now, thanks to the dedication of our team members, technological advancements, and a viable market for RNG, 'manure-to-energy' projects are a sustainable endeavor for hog farms," said Stewart Leeth, vice president of regulatory affairs and chief sustainability officer of Smithfield Foods. "We are proud to expand our efforts across the country, shrinking our environmental footprint and investing in the protection of our planet's resources."
In North Carolina, Smithfield, in concert with several of its contract farmers, spearheaded the pilot programme known as Optima KV. Operational since late March, Optima KV uses five anaerobic digesters to capture and clean biogas collected from in-ground digesters at five of Smithfield's contract hog farms. The gas is then transported to a central facility to be converted into RNG. The facility is located on Smithfield property and operated by Cavanaugh & Associates, a consulting engineering firm, in partnership with swine waste-to-energy project developer, OptimaBio, LLC.
Optima KV is the first to leverage Smithfield's relationship with its contract farmers, who raise and care for Smithfield's hogs, and will create enough RNG to power 1,000 homes each year. It is also the first project to both source and create RNG in North Carolina.
Following the success of the pilot project, Smithfield will expand its renewable energy efforts across eastern North Carolina. Smithfield will work with its contract farmers to convert existing anaerobic treatment lagoons to covered digesters or construct new covered digesters to capture biogas, which will then be transported to central processing facilities to be converted into RNG.
In ten years, more than 90% of Smithfield's company-owned and contract hog finishing spaces in North Carolina will have the capabilities to produce RNG. In addition to converting 'manure-to-energy', the covered lagoon digesters will mitigate potential issues associated with severe rain events such as hurricanes.
"Agriculture is the number one industry in our state. Investment like this will help ensure this economic pillar stays strong for generations," said Lt. Governor Dan Forest, State of North Carolina. "We are fortunate to have a responsible company like Smithfield that leverages evolving technologies to ensure the sustainability of its operations while providing more than 10,000 jobs to North Carolinians, further strengthening our economy."
To complement the renewable energy efforts taking place on farms, Smithfield's Tar Heel facility will leverage its wastewater treatment system to create RNG. The company is working with OptimaBio, LLC to build a refinery and gas injection system that will collect and clean biogas from an existing onsite digester. The cleaned biogas will be injected into the natural gas pipeline to serve local consumers. The engineering for this initiative is completed, and the project will be operational within one year. Once completed, the project will power more than 2,000 homes in the surrounding area each year.
"These projects, whether on a farm or at a plant, strengthen two key industries in North Carolina: energy and agriculture," said Gus Simmons, director of bioenergy at Cavanaugh & Associates. "Smithfield is leading the charge in expanding the state's renewable energy portfolio while creating new economic and environmental benefits for the agriculture industry."
In Missouri, Smithfield and Roeslein Alternative Energy (RAE) are embarking on a joint venture to launch the second phase of a project that currently converts manure collected from company-owned farms into RNG, enough to power 15,400 homes per year. By the end of this phase, Smithfield and RAE will have jointly installed biogas infrastructure across all company-owned finishing farms in Missouri. In ten years, nearly 100% of Smithfield's company-owned hog finishing spaces in Missouri will have the capabilities to produce RNG.
In addition to using manure to create RNG, the project will harvest prairie grass for methane generation. The harvested grasses, which supplement the biogas generation particularly during the cold winter months, are part of a prairie restoration effort that Smithfield has supported in Northern Missouri for some time. Earlier this year, Smithfield expanded its support for these efforts by becoming the first food company to participate in EDF's Monarch Butterfly Exchange, a program that restores monarch butterfly habitats on private lands including Smithfield hog farms in Missouri.
In Utah, Smithfield is directly investing in RNG production by building 26 hog farms equipped with covered lagoons specifically designed for anaerobic digestion. This project marks the first time that Smithfield is building US hog farms equipped with renewable energy technology. The engineering includes in-ground digesters to collect biogas that will be refined and pumped into the natural gas pipeline. Once complete, the project will create enough RNG to power 4,000 homes each year. Smithfield is constructing the farms, which will ultimately be owned and operated by contract growers, providing new economic opportunities to local Utah farmers.
In ten years, more than 90% of Smithfield's hog finishing spaces in Utah will have the capabilities to produce renewable energy.
In addition to renewable energy projects, Smithfield is implementing several other projects across its operations and supply chain that will positively impact its carbon reduction efforts.
On its hog farms, Smithfield is introducing new technologies that will reduce truck traffic and miles traveled by more than 85% on certain routes.
Smithfield is adopting low trajectory application tools to more efficiently apply recycled nutrients to farmland. The company is also planting more vegetative buffers on its farms.
Sithfield's partnership with Anuvia™ Plant Nutrients, announced earlier this year, reuses organic matter found in hog manure to create a commercial-grade fertilizer that achieves better crop yield compared to regular fertiliser.
In addition, at its processing facilities, Smithfield is continuing to implement energy efficiency initiatives, including refrigeration, boiler, and other equipment projects.
In its grain supply chain, Smithfield is on-track to meet its goal to source 75% of its grain from farmers who use efficient fertiliser and soil health practices.
Finally, Smithfield will continue to collaborate with university and other partners to better quantify the impact of "waste-to-energy" technology on environmental outcomes and endeavor to further develop improvements to manure management systems.
"While we have much to be proud of in our first year, we are excited about the significant opportunities ahead," said Kraig Westerbeek, senior director of Smithfield Renewables. "I am confident that we will build on our momentum in the coming years and long after 2025."
An internal advisory committee evaluates these and future projects to ensure the company remains on track to meeting its GHG reduction goal and other renewable efforts.