Companies in charge for more in fossil-free food industry

A recent report by the research and consulting firm CE Delft indicates that the food industry can run entirely on renewable fuels by 2035. Unfortunately, this is too optimistic an expectation. A fossil-free food sector in 2035 is unrealistic at the current pace of sustainability. Still, food companies do have the opportunity to accelerate the energy transition.

So far, CO2 reduction in the food sector has stalled at a slight increase in production volume. ING research shows that natural gas use in the food industry has not declined for four years in a row. In doing so, natural gas currently provides nearly 75 percent of the energy needed by food companies.

For food companies, reducing CO2 emissions is a challenge. Companies are bumping up against costly CO2 reduction investments because of the long payback period. This long payback period is partly caused by the fact that customers are usually unwilling to pay extra for sustainability. In addition, there are impeding problems with the electricity network, such as long waiting times for getting more capacity.

Still, there are certainly good opportunities. It is estimated that the food sector is investing two billion euros annually until 2030 in its own operations. There are opportunities here for food companies to increase their contribution to making the sector more sustainable. For example, by running cooling and freezing cells at times of surplus electricity, thus relieving the electricity grid. Sustainable savings are also possible with heat pumps that reuse waste heat from the production process or refrigeration units. Industrial bakeries can invest in more economical gas ovens and later convert them to electricity or hydrogen.

The government encourages sustainability by providing subsidies for electrification and directs it by increasing the energy tax on natural gas. Food companies would do well to be proactive in responding to the opportunities for sustainability. This not only strengthens their competitive position, but also ensures a future-proof industry.

This is an expert quote from Ceel Elemans, Sector Specialist Food, ING Sector Banking.

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