US targets ice cream and beverage sectors with record US$6 billion project to cut carbon footprint

27 Mar 2024 --- The Biden administration has unveiled a US$6 billion initiative aimed at decarbonizing America’s industrial sectors, including targeting decarbonization in food production. The initiative is expected to reduce the carbon footprint of facilities producing items like mac and cheese, ice cream, ketchup and BBQ sauce, among others.

It comprises US$489 million from the Bipartisan Infrastructure Law and US$5.47 billion from the Inflation Reduction Act. The funded projects, leveraging a mix of energy efficiency, electrification and alternative fuels and feedstocks like clean hydrogen, aim to slash carbon emissions by an average of 77%. 

The F&B sector is one of the key focuses of this initiative, with projects designed to demonstrate scalable energy efficiency and electrification solutions. 

US Secretary of Energy Jennifer M. Granholm says these investments will slash emissions from these “difficult-to-decarbonize sectors.” 

Advancing clean energy initiatives
The US Department of Energy (DOE), through its Office of Clean Energy Demonstrations (OCED), is at the helm of this transformative effort. 

A key component is the deployment of new emissions-reducing technologies across 33 projects in more than 20 states, which hold the potential for sector-wide adoption.

The chosen F&B projects will demonstrate highly replicable energy-efficient and electrification solutions for low- to medium-temperature process heat across 16 sites.

An integral component of these projects is their focus on equity and inclusivity, with each expected to develop and implement a comprehensive Community Benefits Plan. This ensures engagement with local communities and labor forces, building a clean energy future.

Ice cream decarbonization
Among the projects, Unilever’s Decarbonization of Ice Cream Manufacturing project aims to replace natural gas boilers with electric boilers and industrial heat pumps, leveraging waste heat recovery to cut 14,000 metric tons of carbon emissions annually. 

This initiative has been selected for award negotiations for up to US$20.9 million of DOE support, aiming to move toward carbon neutrality for the factories that produce Ben & Jerry’s, Talenti, Magnum, Breyers, and other popular brands.

This project will include ice cream manufacturers across Tennessee, Missouri and Vermont.

“We are making progress to decarbonize our ice cream business and these substantial upgrades will mean a major cut in emissions. This step moves us closer to our sustainability goals and is an investment in the future for our business and planet,” says Sandeep Desai, chief product supply chain officer at Unilever Ice Cream. 

Kraft Heinz is on a journey to achieve net-zero greenhouse gas emissions by 2050.This month, the company announced it is separating its ice cream division into its own independent business, with complete separation expected by the end of 2025.

Sustainable manufacturing initiative
Similarly, Kraft Heinz’s Delicious Decarbonization project will employ a diverse array of technologies to achieve a 99% reduction in annual emissions from 2022 levels, furthering the company’s global net-zero ambitions.

The funding has been earmarked for up to US$170 million to implement clean energy projects across ten of its US plants. 

Across the sites, the company anticipates the project will create an estimated 500 construction jobs. The project would also provide opportunities for employees to receive additional training and develop new skills related to the new technologies.

“This investment recognizes our continued efforts to reduce our environmental footprint and we’re eager to get started. It will give us critical resources to make necessary improvements in our plants,” says Marcos Eloi Lima, chief procurement and sustainability officer at Kraft Heinz. 

Helen Davis, SVP and head of North America operations at Kraft Heinz, further highlights: “The infrastructure changes made at these ten plants will allow us to replicate successful technologies and processes across our remaining US plants and globally, making us more efficient as we continue to make upgrades to more locations.” 

Green beverage production
The Heat Batteries for Deep Decarbonization of the Beverage Industry project, undertaken by Diageo Americas Supply, shows an innovative approach. By partnering with Rondo Energy and the National Renewable Energy Laboratory, Diageo plans to use Rondo Heat Batteries powered by onsite renewable energy to replace natural gas-fired heat, thereby reducing reliance on natural gas and cutting nearly 17,000 metric tons of greenhouse gas emissions annually.

The Federal Cost Share amounts to up to US$75 million in funds aimed to support the electrification of its production sites in Kentucky and Illinois.

In this project, Diageo will share air and water quality monitoring results to enhance community awareness and trust.

“The announcement from the DOE gives us the opportunity to incorporate innovative technologies into our production footprint to make our business more efficient, resilient and sustainable,” says Marsha McIntosh-Hamilton, president of North America supply, Diageo North America. 

“Diageo has been a pioneer in deploying technologies for efficiency, cost reduction and decarbonization. The Rondo Heat Battery opens new opportunities for simpler cost reductions and deeper integration with renewable energy sources and we’re honored Diageo has chosen us to help them achieve their 100% renewable energy goal,” John O’Donnell, CEO of Rondo, further elaborates.

By Sichong Wang