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Sustainability in the Brewing Industry The Greater Effect
Ben Weger University of Colorado Boulder
A thesis submitted to the University of Colorado Boulder
in partial fulfillment of the requirements to receive
Honors designation in Environmental Studies
April 14th, 2017
Thesis Advisors: Dr. Paul Lander - Geography Department
Dale Miller - Environmental Studies Department David Payne – Center for Education on Social Responsibility
© 2017 by Ben Weger All Rights Reserved
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Table of Contents Abstract ...……………………………………………………………………………………….3 Preface ...………………………………………………………………………………………..4 Introduction ...………………………………………………………………………………….. 6 Background ...…………………………………………………………………………………. 8 Literature Review ....………………………………………………………………..………...10 Methods …....………………………………………………………………………………… 24 Findings ...……………………………………………………………………………………. 29 Discussion ...…………………………………………………………………………………. 33 Recommendations ...………………………………………………………………………... 37 Bibliography ...……………………………………………………………………………….. 40
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Abstract The modern sustainable brewery is defined by a consideration to improve all aspects of production, resource efficiency, and distribution to the customer. Through the development of auditing procedures to benchmark the efficiency of a brewery, industry-leading companies have provided inspiration for sustainability to an entirely new generation of craft brewers. Utilizing proven benchmarking methods, combined with the analysis of defining a sustainable brewery, Powder Keg Brewing Company implemented a benchmarking audit in order to assess current efficiency and find areas of process improvement. Breweries may represent only a small portion of water intensive industries; however, the greater effect of sustainability in brewing provides a worldwide benefit to businesses, humanity, and the environment.
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Preface:
During the Fall of 2015 Dr. Paul Lander hired me as an intern for the Water in
Breweries project; attempting to develop a stronger relationship between local water
providers and breweries across the state of Colorado, and show potential for
improvement across the United States. Paul has spent 16 years as the head of
Boulder’s Water Conservation Office, where he oversaw major water-utility decisions for
Boulder County. Currently, Dr. Lander teaches environmentally focused curriculum
related to water and landscape sustainability at CU Boulder. As an intern on this project,
I was able to combine my personal experiences from brewing and environmental
studies education with Dr. Lander’s knowledge and connections to gain a broader
understanding of how this industry functions as a whole.
The internship with Dr. Lander quickly lead me into an apprenticeship with
Brewmaster Phillip Joyce at Powder Keg Brewing Company in Niwot, Colorado. From
attending my very first bottle release at Powder Keg as a customer, my curiosity began
to grow. I approached Philip with the idea of doing some benchmarking measurements
for my internship, and I started helping out around the brewery in my spare time. This
lead to spending hours on end- learning the sights, sounds and smells of the brewery,
the brewing process, and implementing data collection on an ideal small-scale research
site with a large potential for efficiency improvement. Utilizing Undergraduate Research
Opportunity Program Grant funds provided by the University of Colorado, I have been
able to install water metering capabilities within the brewery. This gives me the ability to
introduce sustainability auditing and benchmarking, providing Powder Keg with our
current brewing efficiency ratio- and areas we can improve upon it.
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Generally large production breweries have the financial capability to invest in
waste reduction departments and technologies, while smaller sub-1000 barrel per year
brewpubs have much less technology and funding to achieve the same level of
efficiency. The water metering capabilities provided through grant funding will allow me
to target areas of inefficiency and greatly reduce waste. These techniques can be as
simple as more considerate water use when cleaning, fixing leaking seals or pipes, or
utilizing a more efficient hose sprayer nozzle.
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Introduction:
My Honors Thesis focuses on the sustainable techniques applied throughout the
brewing industry, and the impact they have been able to make by examining several
companies who are leading the way. I intend benchmark and examine efficiency within
Powder Keg Brewing Company in order to show the effect that is possible to create
through efficient design and planning. With assistance from The Brewer’s Association,
industry peers, and my faculty advisors, I will create a comparison of this conscious
approach toward brewing by utilizing these four criteria:
Water Utilization
- How is water being utilized? - How much volume of water is being used? What is the associated cost? - What is the annual volume of beer being produced? - Water Treatment
Energy Efficiency
- Heating and cooling of physical structure, water, and brewery equipment - Lighting, electrical systems, brewing systems - Renewable energy utilization
Production Methods
- Beer style and production technique - Fermentation methods - Local ingredients - Waste Diversion
Distribution Methods
- Product distribution - Methods of sale - Transportation methods and vehicles - Community presence
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Across the brewing industry, there is a clear motive toward sustainable practices
which cause a benefit for the environment as well as the business. I am creating this
comparative study to show what sustainability means in the brewing industry by utilizing
published literature and my own research with industry professionals. Through the
analysis of traditional and modern production methods, examples of brewery waste-
reduction efforts, efficient equipment design, and interviews with industry peers; I will
create a definition for the modern sustainable brewery. This is highly relevant to the
industry by providing standards which breweries can strive for. We are all sustainably
minded as brewers because of our direct contact with water. Providing greater insight
towards these new and easily applied efficiency techniques gives everyone an
advantage in the future of brewing.
I intend to compare these findings with the research and waste reduction we
have able to achieve on a small scale at Powder Keg Brewing Company in Niwot,
Colorado. With quantified results, I can estimate the larger impact of efficient practices
when applied to the total number of breweries by volume across the United States.
While there are several leading examples of what sustainable breweries can represent;
the study connects brewing to water, food, transportation, and other facets of
sustainability to educate fellow brewers and consumers about the impact we can; and
have created on a global scale. The brewing industry has the ability to provide benefits
on every level from the environment to employees, communities, consumers, and other
industries as well.
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Background:
The first recorded recipe for beer, as it is known today, was Hymn To Ninkasi
inscribed in rock approximately 4000 years ago in Mesopotamia (Hornsey, 2003)
(Prince, 1916). Subsequently, human beings began to develop their community
structure around commodity grain products which were used directly to produce bread
and beer (Protz, 2004). The creation of this fermented alcoholic beverage has always
been influenced by water sustainability motives, as a sometimes safer alternative to
polluted drinking water or a lack-thereof in the absence of modern sterilization and
treatment technologies (McGovern et. al. 2004) (Nelson, 2005) (Protz, 2004). Barrels of
beer, free of water-borne illness and sea-salt, were necessary commodities for sailing
voyages across the globe (Protz, 2005) (Stubbs, 2003). Beer in wooden casks provided
sailors and explorers with an essential source of nutrition, hydration, and entertainment,
where treating seawater to drink was simply unfeasible (Stubbs, 2003). Without the
utilization of this fermented beverage, ocean crossing voyages responsible for many
history-altering discoveries would have been essentially impossible (Protz, 2005)
(Stubbs, 2003).
Beer is composed of four basic ingredients: Water, hops, malt, and yeast (Bull
1984). These constituent ingredients all require the usage of energy and water.
Globally the brewing industry has seen a massive increase in consumer demand due to
a renewed appreciation for more uncommon varieties of beer. Particularly the United
States has seen exponential growth in it’s number of breweries, number of beer styles,
and gallons of beer being produced over the past decade (Brewers Association 2012).
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With more breweries opening every year across the country, this has resulted in the
increased use of hops, malt, yeast, and most importantly water (Brewers Association
2012). Between 2010 and 2015, the number of breweries in the United States more
than doubled from 1800, to over 4200 (Brewers Association 2012). This increased
demand has resulted in a larger share of natural resources including water and
agriculture being allocated specifically for the brewing sector. Based on sustainability
research from New Belgium, Sierra Nevada, and The Brewer’s Association, there is
large potential for waste use reduction across the industry.
Through the utilization of UROP grant-funding provided through the University of
Colorado, myself and Brew-Master Phillip Joyce will monitor and collect data related to
the current water and energy efficiency at Powder Keg Brewing Company. The research
topic and methods of data collection for this project require a strong background in
Sustainability, Hydrology, Physics, and Brewing. With my current Environmental Studies
Major and Geological Sciences Minor, I have completed various courses related to
water quality and sustainability, essential for an in-depth understanding the project
requirements. My experiences with hydrological field-data collection, the physics of
energy use, and environmentally-friendly design principles have provided me with the
knowledge to extrapolate useful data trends from this analysis. Most importantly, hands
on brewing production experience at Powder Keg Brewing Company combined with my
environmentally conscious mindset has offered me a realistic view of the limitations and
possibilities within producing beer.
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Literature Review:
Through the analysis of current literature related to brewing sustainability, it is
clear that several independent breweries are attempting to change industry-wide
standards of efficiency. From ideological standards to enforced water regulation in the
case of California’s water crisis (United States Congress 2015), a new generation of
craft breweries have clear motivation to increase the efficiency of their operations. By
providing reduced production cost, increased economic stimulation, and improved
environmental conditions; sustainability auditing is a clearly beneficial investment for
any brewery or water related industry looking to improve their operation capacity
(Muster-Slawitsch et. al. 2011). The current market-shift seen across the brewing
industry is the main motivation for this comparative analysis using these four criteria to
define the modern sustainable brewery:
1) Water Utilization
2) Energy Efficiency
3) Production Methods
4) Distribution Methods
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Water:
Reducing their water use intensity by over 25% in 10 years, Sierra Nevada
Brewing Company in Chico, California has shown a strong commitment to sustainability,
inspired by their statewide drought and climate conditions (Sierra Nevada, 2015)
(United States Department of Energy, 2007). The 2014 United States Supreme Court
decision to restrict commercial water use in California, resulted in a company-wide
challenge to produce beers with a 4:1 water use to finished beer ratio- meaning that for
every 4 barrels of water utilized, 1 barrel of finished beer is produced (Sierra Nevada,
2015) (United States Congress, 2015). 1 barrel of beer is equivalent to two standard
sized kegs, or 31 gallons (Brewers Association 2012). By successfully meeting and
following this standard, it is clear that the researchers within Sierra Nevada have
applied a realistic understanding of California’s water limitations to their analysis
(CCBA, 2013) (United States Department of Energy, 2007). Through the utilization of
water sub-metering technology, it is possible for Sierra Nevada to extrapolate their total
water use from brewing, compare this to their final volume of production each year, and
produce their water efficiency ratio.
Figure1-2014SierraNevadaWaterUse
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Integrating this understanding of the local California ecosystem with their
company philosophies, the motivation for change has been supported by a desire to use
less, regardless of climatic conditions (California 2013) (Sierra Nevada, 2015). From
rainwater catchment technologies and xeriscaping their facility, to on-site wastewater
treatment and recycling; Sierra Nevada’s engineers have applied an all-encompassing
strategy towards sustainable brewing processes which can be useful to nearly any
water-intensive industry in the Western United States (Sierra Nevada, 2015) (United
States, 2007). Breaking down their water usage for the brewing process, equipment
sanitization, agricultural production, product serving, and transportation of beer; Sierra
Nevada has shown their average water to beer efficiency to be the factor of 4.47:1 as
seen in Figure 1.
With California’s recent policy measures exposing the fragility of water resources
within the United States, it should provide a major influence for breweries across the
globe to appreciate and efficiently utilize their own water budget regardless of regulatory
or climate related issues (Muster-Slawitsch et. al. 2011). While water is one of the most
precious commodities on earth, it is in the utility providers best interest for industries to
use more and pay a higher bill. Therefore, it is incredibly important for breweries, as
stewards of the land, to impose company-wide policies for sustainability- as there are
very few regulatory tools in place to mandate brewing efficiency standards (Muster-
Slawitsch et. al. 2011) (Sierra Nevada, 2015) (California Division of Flood Management
2015). Because of the independent effort made by Sierra Nevada, they have been able
to reduce a massive quantity of waste from their operations, causing a direct benefit to
their business, local community, and the environment.
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Along with Sierra Nevada; New Belgium Brewing Company in Fort Collins,
Colorado has conducted millions of dollars in research and development to prove the
highest standard possible when operating a large-scale production facility (New
Belgium, 2013) (Sierra Nevada, 2015). With heavily funded company support, New
Belgium has provided a greater understanding across the industry of how a sustainable
brewery can and should operate (New Belgium, 2013) By setting the standard for
sustainability, and documenting their process to audit a brewery; New Belgium has
focused their efforts on three main criteria: brewing waste diversion, water and energy
intensity reduction, and greenhouse gas emissions (New Belgium, 2013).
Figure2-NewBelgiumWaterUse&FutureGoals
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Largely the focus of their research initiatives has been related to water, because
without this essential resource it would not only be impossible to brew, but also produce
the necessary grain and hops for creating beer (New Belgium, 2013). In response to
this, New Belgium Brewing Company has made it their top priority to produce every
barrel of beer with at least a 4:1 ratio since 2006; in turn creating a standard of
efficiency which all breweries in the industry can strive for (New Belgium, 2013). With a
newly opened brewing facility in Asheville, North Carolina, New Belgium has nearly
doubled their capacity for production in order to meet the needs of their constantly
growing market (New Belgium, 2013). While opening a new facility has required their
sustainability team to pursue the same intensive auditing process, New Belgium has
made yet another benchmark goal to reduce their water usage to 3.5:1 by the year
2020- making them one of the most water-efficient craft breweries in the world
(Figure 2) (New Belgium, 2014).
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Energy:
Aside from their impressive commitment towards water usage, from their first
brew, New Belgium has based their entire business model on waste, energy, and
carbon footprint reduction. In order to accomplish these goals, they have implemented
massive on-site energy generation using solar photovoltaic arrays in conjunction with
methane bio-gas produced from microbes in their own water treatment facility (New
Belgium, 2013). The conjoined energy production from these two on-location sources
provides approximately 12.6 percent of their annual energy usage. With their
commitment to improvement and sustainability, the company has achieved platinum
LEED certification as well as platinum zero-waste certification from the United States
Green Business Council (New Belgium, 2013) (Brewers Association 2015). Through
the utilization of electrical sub-metering, New Belgium has been able to determine their
annual brewing energy intensity (Figure 3).
Figure3-NewBelgiumEnergyUse&FutureGoals
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The metric used to establish a breweries energy efficiency compares the total
amount of energy used in production, to the finished volume of beer being produced
each year. In New Belgium’s case, seen in Figure 3, they compare total Mega-Joules of
energy expended to total Hectoliters of Beer produced. In order to compare this data to
others using consistent units, it is important to convert these MJ and HL values to kWh
and BBL. 1 Kilowatt-Hour is equivalent to 3.6 Mega-Joules, and 1 Barrel is roughly
equivalent to 1.17 Hectoliters (Brewers Association 2015). Using this conversion factor,
in 2014 New Belgium was calculated to have used approximately 40 Kilowatt-Hours for
each Barrel of beer they manufacture- including all production, distribution, and sales of
their product (New Belgium, 2014).
Following in the same direction of New Belgium, Sierra Nevada has firmly
committed to increasing their brewing energy efficiency, and maintaining these
standards into the future (Sierra Nevada, 2015). The main difference between these two
breweries is the intensity of electrical generation produced on-site. While new Belgium
has installed enough renewable infrastructure to account for 12.6% of their energy use
(Figure 3), Sierra Nevada has invested in combining Capstone turbines and solar
photovoltaics to produce 100% of their energy demand (New Belgium, 2014) (Sierra
Nevada, 2015). Possessing the same motivation related to their local climate conditions,
the engineers at Sierra Nevada have invested a massive amount of time, money, and
energy to receive platinum LEED certification, setting an example for how to reduce
carbon-footprint, and implement high-efficiency brewing operations (Sierra Nevada,
2015) (Brewers Association 2015).
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Using similar electrical sub-metering technology Sierra Nevada has been able to
determine their overall brewing energy efficiency (Sierra Nevada, 2015). In their data
assessment, they compared the total number of Kilowatt-Hours used to Barrels of beer
produced in 2014. Because of their highly integrated energy generation on-site, they are
able to produce beer with incredibly high energy efficiency. The 2014 average energy
intensity for Sierra Nevada, gathered from Figure 4, is an impressive 15.04 Kilowatt-
Hours of demand per Barrel of beer produced. As seen in figure 4, there is seasonal
variation in efficiency, with sunny summer months correlating with higher efficiency due
to the massive photovoltaic installations in Chico, California (Sierra Nevada, 2015). The
2014 energy consumption for Sierra Nevada is less than half that of New Belgium,
proving that they are truly a leader in efficient design and implementation across the
industry.
Figure4-SierraNevada2014EnergyUse
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Production:
Referring to the methods or standards chosen when manufacturing a beer,
production is one of the most significant areas in which efficient practices can be
implemented. Through hard work, transparency, and publication, breweries such as
Sierra Nevada and New Belgium have reinforced the concept of efficient brewing-
encouraging sustainability among smaller brewers throughout the United States
(Muster-Slawitsch et. al. 2011). When considering the financial and intrinsic benefit of
sustainable production practices, any brewery in the market will see increased profit,
decreased waste, and greater employee fulfillment correlated with their effort to become
more efficient (Daniels, 2006) (Muster-Slawitsch et. al. 2011).
One of the less apparent components of production efficiency is the style of beer
that a brewery chooses to create. Because larger craft breweries like New Belgium
distribute their beers nationwide, it is in their best interest to produce a consistently
delicious product. Heavily hopped beers, such as an India Pale Ale for instance,
inherently require more water in order to obtain the desired outcome and flavor (New
Belgium, 2014). Not only does a ‘hoppier’ beer require a larger quantity of hops which
take more water intensity to grow, but also requires more cleaning and energy to
produce (New Belgium, 2014).
When producing what is referred to as a “clean” beer, meaning a temperature
controlled fermentation with specifically isolated yeast strains, the entire process from
grain to bottle is more energy intensive (New Belgium, 2014). The constituent
ingredients require a greater cost and more energy, which once brewed, require their
fermentation space to be completely sanitized in order to prevent lingering bacteria from
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infecting the beer and producing off-flavors (New Belgium, 2014). After utilizing more
energy and water to sanitize the tanks, the beer inside must be kept at under constant
refrigeration in order to allow the yeast to ferment at a controlled rate (New Belgium,
2014). While these production methods produce a very consistent product for national
sale, they require more water and energy intensity than traditional European brewing
methods (Muster-Slawitsch et. al. 2011).
In comparison to the abundance of “clean” beers found across most store
shelves, many breweries are beginning to utilize old-world fermentation techniques to
produce more traditional and complex styles. Absent of commercially available yeast,
through the method of spontaneous fermentation, brewers are able to inoculate their
beer with wild yeast and bacteria through contact with the air of the local environment
(Lambic.Info 2016). This technique not only eliminates the energy and water required to
grow and refrigerate isolated yeasts, but creates a unique expression of the local
environment within the bottle (Lambic.Info 2016). Yeast cultures from a laboratory
produce a consistent product to ensure that every consumer will receive the same
experience; however, similar to winemaking, spontaneously fermented ales result in
product variation dependent on production date, local seasonality, and climatic
conditions (Lambic.Info 2016). While batch variation is the main concern to many
commercial brewers, beer and wine enthusiasts value and appreciate the noticeable
differences between different years or vintages.
Aside from eliminating the energy and cost of commercial yeast, oak barrels are
also utilized in order to hold and ferment the beer. These wooden casks were originally
the only way to store beer in the absence of stainless steel fermentation vessels and
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mass-produced glass bottles (McGovern et. al. 2004). While imparting complex aromas
and flavors from the wood, these barrels allow the fermentation process to fluctuate
based on ambient room temperature shifts- rather than temperature controlled,
sterilized, stainless fermenters (Lambic.Info 2016). Not only do these rustic wooden
vessels take much less energy to produce in comparison to a sanitary-grade steel tank,
they are not plugged into an electrical outlet to constantly monitor and maintain their
temperature. The production methodology of old-world brewing has become
increasingly popular in today’s market because growing palates desire a more complex
beverage. Brewing techniques from a time where eliminating waste was simply a matter
of survival are now seen as an incredibly valuable way to produce more artisanal
products while increasing the efficiency of production.
Regardless of the production method that a brewer chooses to utilize, it is
undeniable that brewing produces a large amount of solid waste. After steeping grain
and hops in boiling water to extract their sugars and aromas, ‘wort’ or un-fermented,
non-alcoholic, beer is produced (Brewers Association 2015). The wort, filtered and
separated from the initial grain in the mash, now begins fermenting with the addition of
yeast (Brewers Association 2015). As these yeast cultures begin to feed on the sugar
in-solution the byproduct of their reaction is alcohol, which defines the finished beverage
(Brewers Association 2015). The remainder of this process is the spent grain and hops,
also known as solid organic waste. As seen in Figure 5, New Belgium prides their ability
to divert 99.8% of brewing waste through donation, recycling, and compost. Because
the spent grain has value as animal feed, New Belgium and many other breweries
arrange to donate their organic waste to local farms, both eliminating the cost of feed for
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the farmer and providing animals with a healthy, local grain diet (New Belgium, 2014).
With the remaining 2% of waste being recyclable or compostable packaging materials,
New Belgium has provided the industry with standards as to what is possible in diverting
waste from the landfill (New Belgium, 2014) (Figure 5).
Figure5-NewBelgiumWasteDiversion
Figure6-SierraNevadaWasteDiversion
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Distribution:
One of the most important aspects of creating beer is the initial delivery of raw
ingredients to the facility, and the final distribution of packaged products to the retailer.
The history of the American Brewer’s Association is rooted in sustainability, dating back
to 1942 where members worked to stabilize raw material supplies for brewery
production such as barley, glass, and tin (Brewer’s Association 2016). When
considering that the feasibility of running a brewery demands delivery and distribution
services, it is important to consider how waste can be reduced from transmission.
Similar to any commercial or agricultural industry, a large portion of a product’s cost and
carbon footprint comes from the process of shipping and receiving orders.
Sierra Nevada Brewing Company is one of the first breweries in the world to take
the initiative to examine their impact from distribution and do whatever possible to
reduce this. One of the main improvements to be implemented was the use of railroad
transportation, rather than individual trucks carrying a trailer (Sierra Nevada, 2015). Not
only does rail transport place a larger volume of cargo upon a single engine, but allows
for greater distances of non-stop transportation at constant speed (Sierra Nevada,
2015). 70% of the beer distributed by Sierra Nevada is transported via railroad, and has
caused a nearly 50% reduction in their overall carbon footprint seen in Figure 7. Not
only focusing on distribution of products, Sierra Nevada has also integrated material
pickup routes for the same trucks that drive out with products for sale each day. After
delivering a load of beer, the same vehicle will then be scheduled to pick up packaging
or brewing materials in order to increase the efficiency of each trip (Sierra Nevada,
2015).
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Figure7-SierraNevadaDistributionFootprint
Asidefromthetraditionaltransportationanddistributionmethodsthatlargebreweries
utilizetomaintainqualityandbrandpresenceacrosstheglobe,manysmallerbrewerieshave
beguntoutilizeahighlyefficientmethodofon-sitesales.Ratherthandistributingproductto
market,smallbreweriesincludingourselvesatPowderKegaredefinedbysellingthemajority
ofproductionexclusivelythroughthetaproom.Byrequiringcustomerstovisitthefacilityto
enjoydraftselections,aswellasbottledbeersto-go,thisinspiresagreatersenseofcommunity
whiledrawingmorebusinessdirectlytothesiteofproduction(BrewersAssociation2012).
Wholesalingtoretailersrequiresadiscountedprice,meaninglesscompanyprofitforeachbeer
wesell;however,sellingproductsdirectlytotheconsumerprovidesthegreatestcost-to-
benefitforbothparties.On-sitesalesensurequalitycontrolandprovidethefreshestproduct
availabletotheconsumer,whilereducingtheoverallcarbonfootprintfromtraditional
distribution(BrewersAssociation2012).Asidefromtheintrinsicbenefits,on-sitesaleswillalso
provideanextrinsicrewardbybringinginmorecustomerswhowilllikelyspendmoremoney
ondrafts,food,andbottles;ratherthansimplypurchasingaproductfromtheshelfoftheir
localstore.Whiletheenvironmentalimpactthatindividualscreatebytravelingtothebrewery
mustbeconsidered,eliminatingtransportationanddistributionfromtheassociatedcostof
brewingcausesadirectimprovementinoperationefficiency.
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Methods:
I am currently utilizing Undergraduate Research Opportunities Program grant
funding from the University of Colorado in order to provide water metering and
sustainability auditing at Powder Keg Brewing Company. This funding has allowed me
to gain a deeper understanding of our own efficiency, and areas we can improve upon-
while providing new and pertinent data to the Brewer’s Association for their
Benchmarking Report. I have gathered and utilized efficiency benchmarking data from
our small brewpub, Powder Keg Brewing Company in Niwot, Colorado. A brewpub is
defined as selling 25% or more of its beer production on-site, and generally in a
substantially lower quantity than ‘macro’ or commercial brewing operations such as
Coors Brewing in Golden, Colorado (Brewer’s Association 2016).
The main benchmarking tools for examining energy efficiency in a brewery are
found through the comparison of electricity Kilowatt-Hour demand, Barrels ‘BBL’ of
water demand, and Barrels of beer produced or packaged (1 BBL = 31 gallons).
Because the data is being gathered to show overall efficiency, there is no need for a
control group or randomization procedures. Powder Keg Brewing Company is a
reasonable site to collect data from, based on my own connections and access, as well
as time constraints. The collected data has been kept private in order to eliminate any
risk from participation. I utilized verbal consent procedures in my study because there is
no risk or harm being placed on my employer. This is data being collected to compare
industry standards and there is no reason why a written consent form is necessary in
25
this case. As members of the Brewers Association, it is in our best interest to provide
this information at no risk to ourselves, with a benefit for everyone in the community.
Because of the nature of my study and friendships shared between colleagues,
there is no risk of participation in this study. I will analyze the raw material, water, and
electricity demands of the brewery- then compare these metrics to the most sustainable
breweries to create a better understanding of the efficiency of our brewpub-scale
operations. The data has been collected using the same standards and technological
methods for auditing, and will be completed in 2017 to be applied towards this thesis. I
plan to enroll 2 subjects in the study, myself and Philip Joyce, from the demographic
population of professional brewers in the state of Colorado.
The procedures for data collection will remain standard for each area of usage
that I investigate. I will be collecting water input data through the utilization of two food-
grade water flow meters installed to our direct water line for brewing and our hose basin
for cleaning (Figure 8 & 9). Using these meters attached to the HOBOware Pulse Data
Logger (Figure 10) we have the ability to measure real-time brewhouse water demand
and cleaning procedure volume in gallons, which will be converted to BBLs. Finally
using a previous log of our annual brewing production, we will determine the total
volume of beer produced each year. Gathering the statistics to represent our annual
water use and comparing this to our annual production of beer, we can generate our
final water efficiency ratio, similar to method of New Belgium and Sierra Nevada. In a
similar comparative method to gathering our water intensity ratio, I will examine our
monthly energy use in order to assess our energy efficiency. Because we share a larger
space split between three tenants, there is unfortunately too much limitation in access to
26
our direct power input to use amperage metering from Onset. The next best option for
us is to utilize our monthly energy bills in order to determine our annual electricity
usage. After compiling a year of electricity use, and converting this intensity to Kilowatt-
Hours, we can compare the total annual electrical demand to the total annual production
of beer to determine an energy intensity ratio.
There is no plan to conduct audio or video recordings of the facilities, simply a
few photographs in order to show my work! The time constraint for each visit will be
roughly 2-4 hours to complete initial installation procedures, with follow up visits over
the course of the first quarter of 2017. Powder Keg will provide data and participation
through the entire 2017 year. Data will be stored confidentially on my computer and
backed up through google drive. My personal computer is password encrypted, and
google drive is further encrypted with login information. I will be the only person with
access to this data, with no utilization of portable devices for storage. Data will be
generated on my computer only, and will not be transferred electronically to any other
parties.
I will utilize a basic coding system for me to identify data sets for the final
disposition, or re-organization for presentation. Upon submitting the project, I will store
my data confidentially, indefinitely, and password encrypted for future analysis by the
Brewers Association. Even if my personal computer is lost or stolen, it requires a
password to access any content. Furthermore, I will have the only access to google
drive files, which could be immediately moved or destroyed in the event of computer
loss or theft. However, consider that the information itself is not sensitive or risk-
inducing to the participants in the first place. Powder Keg Brewing Company will receive
27
a benefit from this study from a business perspective, as well as environmental impact.
As like-minded professional brewers we all have a benefit to gain from providing
efficiency information and a greater understanding of our industry. As scientists,
knowledge of our field is the most valuable aspect that we can gain from participating in
a study related to beer.
Figure8-HoseBasinWaterMeter
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Figure9-BrewhouseWaterInputMeter
Figure10-OnsetHOBOwarePulseDataLogger
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Findings:
Through the application of Undergraduate Research Opportunities Program grant
funding, I was able to purchase equipment in order to audit and analyze water and
energy usage at Powder Keg Brewing Company. Before installing and utilizing data
logging software, based on our own knowledge from within the brewery, it was assumed
that our energy and water usage would be approximately twice that of New Belgium.
This was due to the fact that our brewery utilizes very basic equipment which has not
been optimized in any way for high-efficiency brewing standards. We have simply been
producing beer on the system that was originally purchased on a budget, and there are
several areas which efficiency and ergonomics could be improved upon.
Figure11-FinalMonitoredBrewingSession-March8th,2017
After monitoring Powder Keg’s water and energy intensity from February 8th,
2017 until March 8th, 2017 we were pleasantly surprised by our findings. HOBOware
software allowed us to view our real-time usage during the brew session (as seen in
Figure 11), as well as totalization of volume over the logging period. Throughout the
month of data collection our meters recorded 3510 gallons, or 113.225 barrels of total
01020304050
DateTim
e,…
3/8/178:05
3/8/178:40
3/8/179:15
3/8/179:50
3/8/1710:25
3/8/1711:00
3/8/1711:35
3/8/1712:10
3/8/1712:45
3/8/1713:20
3/8/1713:55
3/8/1714:30
3/8/1715:05
3/8/1715:40
3/8/1716:15
3/8/1716:50
3/8/1717:25
3/8/1718:00
3/8/1718:35
3/8/1719:10
3/8/1719:45
3/8/1720:20
3/8/1720:55
3/8/1721:30
3/8/1722:05
3/8/1722:40
3/8/1723:15
3/8/1723:50
GallonsofW
ater
Date- Time
PowderKegBrewing- BrewingLogMarch8th,2017
30
water usage (Figure 12). This value considers all brewing water usage, as well as
cleaning, sanitization, and packaging in order to account for our total water demand
required to produce beer. Over the course of the same month we were able to brew 5
batches of beer on our 4 barrel brewhouse, meaning we ended up with a total of 20
barrels or 620 gallons of finished beer. In order to calculate water use intensity, the final
volume of beer produced is divided by the total demand of water during the same time
period. In this case 113.25 barrels of water were required to produce 20 barrels of beer,
meaning that the calculated water intensity ratio is 5.66 barrels of water for every
individual barrel of beer produced (Figure 12). Compared to the average efficiency of
both New Belgium and Sierra Nevada, Powder Keg was 25.5% less efficient overall
(Figure 13), greatly surpassing our initial expectations.
Figure12-PowderKegBrewingCompanyMetering
Figure13–AnnualWaterUsageCompared
Powder Keg Brewing Company Metering Data Collected: 02/08/2017-03/08/2017Water Usage 3510 Gallons – 113.225 BarrelsEnergy Usage 2783 kWhVolume of Beer Produced 620 Gallons – 20 BarrelsRatio of H2O use to Beer Production 5.66 BBL H2O : 1 BBL BeerRatio of Energy use to Beer Production 139.15 kWh/BBL Beer
4.473.96
5.66
0
1
2
3
4
5
6
Sierra Nevada New Belgium Powder KegBBL
Wat
er U
sed/
BBL
Beer
Pro
duce
d
Current Water Usage
+25.5%
31
Aside from water intensity monitoring, I gathered the total electricity usage for our
brewery over the course of the same month. Because Powder Keg leases a shared
space between 3 tenants, it was impossible to directly access the electricity input and
utilize an amperage meter. Fortunately, Excel Energy already utilizes energy sub-
metering in order to define our usage in order for billing; Therefore, I was able to
determine our average energy intensity based on the monthly energy bill.
Figure14–AnnualEnergyUsageCompared
Over the month of February, there was a demand of 2783 kWh recorded in billing
(Figure 12). In order to calculate overall energy intensity, the total volume of beer
produced is divided by the total electrical demand over a period of time. In this case 20
barrels of finished beer is divided by the total energy use of 2783 kWh, resulting in an
energy intensity ratio of 139.15 kWh used per barrel of beer produced (Figure 12).
Comparing this intensity value to the average efficiency of New Belgium and Sierra
Nevada, Powder Keg is 344% less energy efficient (Figure 14). This is significantly less
efficient because of the fact that our equipment is not designed for energy efficiency, but
rather for practical brewing function alone. With more budget allocated towards
15.0440.419
139.15
020406080100120140
Sierra Nevada New Belgium Powder Keg
Kilo
wat
t-Hou
rs/B
BL
Current Energy Usage
344%
32
implementing energy efficiency and generation, rather than solely utilitarian equipment,
it would be very feasible to reduce our electrical usage by a similar factor to that of
industry leaders.
Aside from the differences in water and energy efficiency found between
ourselves at Powder Keg and the most efficient breweries in the world, production scale
is the greatest discrepancy. Operating on a 4-barrel system, Powder Keg essentially
utilizes the smallest and least expensive system that a commercial brewery can
possibly make a business on. Compared to the massive 100 to 200-barrel brewing
systems found at New Belgium, it makes sense why we could never compare to one
another on a production scale. In 2016 Powder Keg brewed a total volume of 108
Barrels, an amount that is almost possible to brew through a single daily operation from
New Belgium’s smallest brewing system. While it seems like an absurd level of
production scale, this is why consumers are able to find beers from New Belgium and
Sierra Nevada across every liquor store shelf in America. When comparing ourselves
from this perspective, Powder Keg produces a remarkable 0.0001% of the massive
1,000,000+ barrel output produced annually in Colorado and California (Figure 15).
Figure15-AnnualProductionVolumeCompared
1,222,369
914,063
1080
500,000
1,000,000
1,500,000
Sierra Nevada New Belgium Powder Keg
Barr
els
of B
eer
Annual Beer Production
33
Discussion:
After gathering, examining, and comparing the auditing data achieved at Powder
Keg with the most sustainable breweries in the industry (Brewers Association 2012), the
greater effect of these practices becomes increasingly clear. From a business
perspective, efficient practices are necessary in order to eliminate the causes of wasted
product, material, or capital. Not only do these practices create a positive benefit
towards the business, but also create a massive reduction of impact on the
environment. For this analysis I decided to show the impact caused by reducing the
water and energy footprint of Powder Keg by an achievable factor proven through
benchmarking research. New Belgium and Sierra Nevada have both been able to
reduce their impact by over 25% within 10 years due to committed staff and company
policies, reinforcing the feasibility of improving our own impact in Niwot, Colorado by a
similar factor.
Reducing the current 5.66:1 water use ratio by a factor of 1 BBL or 17.7%, down
to 4.66:1 would have a very significant impact on the operations at Powder Keg.
Eliminating an additional barrel of water used in production would result in a savings of
approximately 108 BBL or 3,348 gallons of water every year (Figure 16). Based on an
average daily water intake of 96 fluid ounces (Harvard 2017), the annual water savings
from efficiency improvement would result in a 12.23 year supply of drinking water for
one individual (Figure 16). This volume of water is enough to produce an additional 19
barrels of beer every year (Figure 16). Based on the fact that 248 individual 16oz pints
make up each barrel of beer, if Powder Keg were to sell these pints for $5 a piece, the
result would be $23,568 in additional revenue each year (Figure 16).
34
Figure16-PowderKegWaterUsage&TheGreaterEffect
Applyingthesamefactorof17.7%footprintreductiontoenergyefficiencyisnotonly
feasible,butwouldresultinamajorreductioninimpacttowardsthelocalenvironment.By
reducingtheenergyintensityofbrewingoperationsfrom139.15kWhperBBLto114.5kWh
perBBL,theresultwouldbeasavingsof2,662kWhperyearorapproximatelyanentiremonth
ofenergyuse.Basedonthecommercialutilitypriceof$0.10perkWhused,theincreasein
efficiencywouldresultintheannualsavingsof$266.20fromtheelectricitybill.Withthecostof
powersolow,themainimpactofincreasedenergyefficiencywouldcreateamajorbenefitfor
theenvironment.BasedontheaveragevolumeofCarbonDioxideproducedfromthe
generationofelectricityfromfossilfuels,theprimarysourceofenergyatPowderKegBrewing
Company,increasingenergyefficiencywouldabate5,428poundsofCO2annually(Figure17).
Figure17-PowderKegEnergyUsage&TheGreaterEffect
Water Usage Audit 5.66:1 Ratio (Current) 4.66:1 Ratio (Future Goal)Annual Beer Production 108 BBL/Year 108 BBL/YearAnnual Water Use 611.28 BBL/Year 503.28 BBL/YearAnnual Water Bill ($8/1000 Gallons) $151.59 $124.81Gallons H2O Saved (611.28 BBL – 503.28 BBL) = 3,348 Gallons – 108 BBL
Drinking Water Saved (96 oz./day) ((3,348 Gallons * 4 quarts)/3)) = 4,464 days - 12.23 years Supply (only $27)
Total Beer Saved (~702 Gallons/Batch) (3,348 Gallons/702 Gallons) = 4.76 Batches – 19 BBL – 589 Gallons
16oz. Pints Saved (248 Pints/Barrel) (248 Pints * 19 Barrels) = 4,712 16oz. Pints/Year
Dollars Saved (($5/Pint) + H2O Bill) (4,712 Pints * $5/Pint) + 26.78 = $23,586.78 Saved/Year
Electricity Usage Audit 139.15 kWh/Barrel (Current) 114.5 kWh/Barrel (Future Goal)Annual Beer Production 108 BBL/Year 108 BBL/YearAnnual Electricity Use 15,028 kWh/Year 12,366 kWh/YearAnnual Electricity Bill ($0.10/kWh) $1,502.80 $1,236.6Kilowatt-Hours Saved (15,028 kWh – 12,366 kWh) = 2,662 kWh
Dollars Saved In Billing ($1,502.8 - $1,236.6) = $266.2 Saved/Year
Pounds of CO2 Abatement (2.039 lb CO2/kWh) (2.039 lbs CO2 * 2,662 kWh) = 5,428 Pounds of CO2
Carbon Footprint Reduction (15,028 / 12,366) = 17.7% Footprint Reduction
35
Based on the relevant impact produced at a small scale through auditing data at
Powder Keg, I applied the same method to consider the greater effect possible from
shifting the entire domestic brewing industry towards sustainable practices. In 2015
breweries within the United States produced a total volume of 25,000,000 Barrels or
775,000,000 gallons of beer (Brewers Association 2015). Utilizing an average water
efficiency ratio of 5:1, this volume of beer required 125,000,000 barrels of water to
produce. Based on an average energy efficiency ratio of 100 kWh to 1 barrel of beer,
the same 25,000,000 barrels required 2,500,000,000 kWh of electrical demand to
manufacture. On an overarching scale, if the average intensity of brewing operations
across the United States could be reduced by a factor of 20% to a 4:1 ratio, there would
be a massive impact both environmentally and financially.
Using the same calculations from Figure 16 & 17, I was able to estimate the
resulting impact of efficiency across the industry, environment, and global community.
Reducing water use by 20% across the industry would save domestic brewers
25,000,000 barrels or 775,000,000 gallons of water annually. Based on the commercial
water utility cost of $0.08 per 1000 gallons, the result of this industry-wide change would
save $62,000 worth of water each year. More importantly, the same 775,000,000
gallons of water saved would be enough to provide 2 million people with 1 gallon of
drinking water per day for an entire year. In a world where 783 million people are living
without access to potable water (United Nations 2013), breweries could create a large
impact on humanity from a relatively small sector within all water-intensive industries.
Not only can domestic breweries create a beneficial effect from reducing water
waste, but increasing their energy efficiency would have an even more significant
36
impact towards the environment. Reducing the industry-wide energy intensity from 100
kWh/BBL to 40 kWh/BBL would result in an energy savings of 1,500,000,000 kWh of
generation per year. Based on the commercial utility cost of electricity, this would save
$150,000,000 in energy bills per year. While energy efficiency provides a clear financial
motivation for the industry, the environmental impact of sustainability would provide the
largest benefit towards human health and ecosystems. Utilizing the volume of Carbon
Dioxide produced through electricity generation, the effect of reducing energy intensity
would result in 1,360,777 Metric Tons of CO2 abatement every year (E.I.A. 2017). To
put this massive quantity of Carbon Dioxide into perspective the largest aircraft-carrier
in existence, Nimitz Class, weighs approximately 90,000 Metric Tons. Through the
adoption and enforcement of sustainable practices, brewers in the united states alone
could reduce their emissions by over 1 million tons of CO2 per year, or the equivalent
mass of 15 Nimitz Class aircraft-carriers.
Through the implementation of this audit, and calculations I was able to make for
Powder Keg and the industry as a whole, I must thank New Belgium and Sierra Nevada
Brewing Company for such impressive efficiency standards, scientific research, and
publishing transparency. With their commitment to the environment, two companies
alone have made a massive impact on the brewing industry and the Earth. Through
publishing and documenting their research, these breweries have provided what is
possible to achieve for an entirely new generation of craft beer producers. Industry
leaders have collaborated to publish information in order to provide inspiration and
know-how for small brewpubs like Powder Keg to perform their own auditing, improve
the efficiency of business, and reduce their impact on the environment.
37
Recommendation:
Through proven research and development to improve the efficiency of brewing
processes, New Belgium and Sierra Nevada have created overarching best practices
that small breweries can strive for. While Powder Keg Brewing and the industry as a
whole may have lower energy and water efficiency than these leaders, it is important to
consider how these standards can become realized. With the implementation of
sustainable brewing techniques, small brewers have the potential to improve the overall
efficiency of brewing practices across the United States. This standard would provide a
significant benefit to businesses and the environment. Based on published
benchmarking reports, one of the most important first steps towards maintaining
efficiency standards is to begin auditing and install metering capabilities. There is a
strong relationship between metering, which provides the ability to examine resource
use intensity, and conscious improvement toward areas of energy or water waste. The
ability to examine efficiency within Powder Keg has provided a better understanding of
operations, and determined a baseline ratio to work on improving.
From implementing an audit to assess the current efficiency within a brewery and
set goals, modifying production and distribution processes will help to achieve
improvements overall. Purchasing locally available grain, hops, and yeast as well as
utilizing local agricultural products like fruit, herbs, and spices both reduces the footprint
of merchandise transport as well as supporting the economy and community. Powder
Keg is able to source a large majority of ingredients from local producers like
Troubadour Malting, Savory Spices, Ela Family Farms, The Brewing Science Institute,
38
and White Labs. These producers not only provide a locally available product, but with
generally higher quality than commercially available raw materials.
One of the greatest improvements made within a brewery is the purchase and
utilization of high-efficiency equipment. While budgetary restrictions in the case of
Powder Keg only provided funding for the least expensive, most practical brewhouse;
Sierra Nevada and New Belgium have spent millions of dollars on research and
development to move high efficiency standards into common practices. Specifically
designed to eliminate all areas of waste, efficient brewing systems have the ability to
reduce impact by a significant percentage, similar to the improvements seen from
industry leaders over the last decade. Not only can new technologies provide the ability
to reduce waste, the utilization of old-world techniques can create a large impact as
well. Efficient practices were established in a time where brewers simply could not
afford to waste any raw material, and modern conveniences like electricity and sanitizer
were yet to be developed. One of the most efficient methods of producing beer is to
utilize spontaneous yeast inoculation combined with fermentation in oak barrels, rather
than refrigerated sanitary fermenters. Wooden casks were originally the only method to
store beer in the absence of stainless steel or refrigeration technology. Rather than the
energy-intensive, water-cooled fermenters found in a typical facility, many breweries are
beginning to use this method to produce a more complex, valuable, and historically
influenced product through the use of room-temperature, energy-free fermentation
methods.
One of the most sustainable methods that a brewery can implement is on-site
sales direct to the consumer- rather than distribution to local stores. While wholesale
39
pricing to retailers results in an immediate loss of profit, the impact caused from
distribution is incredibly expensive and carbon intensive. In Sierra Nevada’s case, they
have been able to determine the most efficient method of distribution via railway in order
to provide suggestions to other nationally distributed craft breweries that require
transportation of products (Sierra Nevada 2014). From first hand experience, Powder
Keg sells directly from the taproom- eliminating the need for delivery trucks, and
inspiring customers to visit the brewery. Typically, taproom visitors will spend more
money on drafts, food, and products to-go than if they had the option to purchase the
same product on a shelf. Rather than producing emissions and losing money on
transportation costs, as well as wholesale pricing to stores; many smaller brewpubs are
utilizing this method of sale. On-site sales will draw customers in, who then benefit from
a fresh product that positively represents the brewery, rather than a potentially old or
improperly stored product on the shelf.
With the utilization of best practices proven through research from companies
leading the way, inspiring efficient practices across the brewing industry can create a
massive impact from a financial and environmental perspective. Defining the modern
sustainable brewery serves as a guide towards direct improvement of brewing
processes. Access to published data has proven what is possible in terms of efficiency
and the definition of how this can occur. In conclusion, the brewing industry as a single
actor has the direct potential to reduce their impact toward human health and the
environment by increasing the efficiency of energy demand, improving water utilization,
and implementing highly efficient production and distribution methods.
40
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