It pays to be green

By Jason Oxenbridge

Jun, 2007

In our climate-changing world, the
environment and profits are now sharing priority

WATER shortages and climate change are the new political hot potatoes, but at ground level, sustainable industries and development in south-east Queensland are slowly but surely setting national and international environmental standards.

A broad range of local companies - including the Foster's Brewery, at Yatala, and developer the Raptis Group - have turned a corner, implementing sustainable manufacturing and development practices.

At the other end of the scale, a Southport dry cleaning company has secured a State Government grant to replace a toxic substance used in its service.

Experts say every little bit helps, but what exactly can business do to build moresustainable systems for future generations?

A new report by the Centre for Low Emission Technology has found an overwhelming majority of Queenslanders think climate change is the biggest issue facing Australia. Of the 1800 Queenslanders surveyed, 90 per cent consider addressing the problem is essential to the country's future.

Deputy Premier and Minister for Infrastructure Anna Bligh says recent progress reports show businesses are forecasting twice the amount of water savings required under the Government's emergency water regulation.

An increasing number of south-east Queensland businesses are adopting water-wise practices to reduce the drain on our dam supplies - but there's still a long way to go.

The State Government has allocated $40 million to its Business Water Efficiency Program (BWEP) - an incentive scheme that provides financial and technical support to help businesses to save water - to assist business.

"At the same time residents are doing their part to save water, businesses are also pulling their weight," says Ms Bligh.

"South-east Queensland councils estimate that businesses and government have saved approximately 25 megalitres (ML) a day since June 2005 - about 10ML a day of which is attributed to the business sector. Business savings have been generated through measures such as the installation of water-efficient taps and shower heads and dual-flush toilets.

"Businesses in 21 council areas that use more than 1ML a year are eligible for rebates for water-efficient taps, shower heads and dual-flush toilets as well as subsidies of up to 50 per cent for the cost of water-smart practices such as upgrading processing and manufacturing systems.

"Much of the work by councils in the past six months has centered on identifying eligible businesses and raising awareness about the BWEP program and water efficiency practices," she says.

Already, BWEP has received 11 applications, including 29 individual projects, for water-saving initiatives worth $300,000. Ms Bligh says eight projects (worth $37,000) have been assessed and approved. Successful applicants so far include a property group with several CBD buildings and a major beverage manufacturer.

Successful initiatives include retrofitting water-efficient taps, toilets and showers and upgrading industrial processors.

Foster's Brewery produces about 430 million litres of beer each year - 25 per cent of Australia's total beer consumption. The brewer is now the most water-efficient of its kind in the world. It uses 2.3 litres of water to make one litre of beer - compared with the world-wide accepted standard of 4.5 litres.

The company recently spent $14 million on a water conservation and recycling plant featuring two 1.2 million-litre water tanks.

Foster's Australia Yatala Brewery operations support manager Charlie Foxall says water is one of four main ingredients used to brew beer. A consistent supply is vital to maintain the quality for which the former CUB brand has become renowned.

"Water is consequently very important to Yatala Brewery and we're well ahead of the international standard for brewing, which is between four and five litres of water to brew a litre of beer," says Mr Foxall, the longest-serving staffer at the Yatala plant after 20 years on the job.

"Foster's as a group has been improving out of sight on every environmental issue. We are using less of everything and finding the most efficient way to do that, with the least footprint. We made an environmental commitment at board level and have been successful in producing more out of less."

The Yatala brewery has cut water usage per litre of beer to just 25 per cent of its 1993 usage. The $14 million water management project has enabled the brewery to double its brewing capacity, with only a marginal increase (10 to 15 per cent) in water consumption.

"Yatala now uses drinking water to make our products and wherever water touches the actual product. Virtually all other processes use recycled water, which is captured and treated on site. Our recycled water is treated to a standard that is in fact purer than the normal reticulated water supply," says Mr Foxall.
"We will continue to look for new ways to save water and are working on projects that could save up to another 100 million litres a year. This will take us to the absolute limit of water saving which is great for the environment, and great for us."

Foster's is also working on a biological fuel cell for waste conversion with the Environmental Protection Agency (EPA) and Queensland University of Technology. The EPA has allocated $140,000 for research, while QUT and Foster's have each tipped in $30,000.

"There is a lot of information and misinformation (about water conservation). We know the climate is changing, but we need to do something about it. Australia can lead the world with the technology it has," says Mr Foxall.

The brewery employs 369 staff on its 73-acre site, between the Gold Coast and Brisbane. A $170 million overhaul in 2005 was the largest capital works program the company had undertaken anywhere in the world. The factory is now asbestos free after cladding and insulation was removed and replaced during a refurbishment.

"Refrigerants based on fluoro-carbons have been demonstrated to be harmful to the environment, so ammonia was selected as the primary refrigerant in our cooling systems instead of ozone-depleting CFCs," says Mr Foxall.

"The ammonia cycle of the refrigeration system has been isolated to a separate building to allow the safe use and control of this gas. From our original capacity of 400 tonnes of refrigeration, we have now reached more than 2000 tonnes. Refrigeration is the major user of electricity on site and sophisticated electronic controls and the separation of refrigeration processes have allowed us to minimise our power consumption."

Foster's general manager supply chain operations, Noel Jago, says the $14 million water management projects the company's discussions with Gold Coast Water on ways to reduce usage.

"South-east Queensland has been gripped in recent years by the worst drought on record. Against this backdrop, the expansion of Yatala could have placed additional pressure on the region's already vastly over-stretched water supplies,"
he says.

"However, the Yatala project team worked closely with Gold Coast Water on ways to reduce water usage and incorporate the brewery's expansion into the region's overall salinity, water and wastewater strategy.

"Although we were already world-class in terms of fuel and power consumption, the expansion has also enabled the brewery to implement several new environmental initiatives that have delivered greater water and energy efficiency - with a reduction in atmospheric emissions."

If Mr Foxall has his way, the brewer - which produces brands including VB, Carlton Draught, Crown Lager and Carlton Mid - will build an on-site dam to further reduce its dependence on city supplies.

"Through our initiatives, we have already saved 2500 million litres (or 2.5 gigalitres) - or 1100 Olympic-sized swimming pools - in the past five years."

Mr Foxall says many businesses still believe 'going green' is not financially viable.

"Just about everything you do with an environmental payback has a financial payback, he says. You can save an absolute bomb if you know what you're doing. Since 1993, we have saved between $18 and $20 million on costs associated with natural gas, water and electricity. Foster's has always looked at the most efficient ways of doing things and it has saved us a fortune."

A Jones Lang LaSalle survey at the 2007 CoreNet Global Asia Summit reveals a shift in corporate attitudes towards sustainability. Jones Lang LaSalle's Australian CEO, Christine Bartlett, says corporate Australia has the critical mass and power to innovate and lead programs to reduce CO2 emissions.

"If all 900 corporates in Australia with more than 1000 employees did the same, the result would be the equivalent of offsetting carbon emissions for over 19,000 average Australian households for a year," says Ms Bartlett.

"By harnessing the power of our teams, corporate Australia can do something proactive to address the growing concerns about climate change, sustainability and global warming. Our investment in this activity has been two hours of our staff's time and about 100 hours in planning, which is not such a big investment given the benefit to the environment.

"In addition, Australia is in a unique position. It is the driest continent on Earth and is experiencing first-hand the effect of global warming through the drought and unusual weather patterns. Australia also has a strong business economy, one that is increasingly interested in investing time and money to address the issue."

From multi-conglomerates to sole traders, every business can contribute. A Southport dry-cleaning company has received $48,840 under the State Government's ecoBiz program to eliminate a harmful chemical in its cleaning methods. EcoBiz is the Environmental Protection Agency's signature partnership program with Queensland businesses.

The dry cleaner has replaced the toxic substance Perchlorethelene (Perc), a traditional dry-cleaning solvent in its cleaning methods. It has replaced the product with Green Earth, a non toxic cleaning product and become the first dry-cleaning company to introduce Green Earth in Queensland.

Owner Bill Hudson used the grant to install two dry-cleaning machines that eliminate hazardous waste output.

"The machines use a harmless, silicone-based solution instead of the widely used chemical perchloroethylene," he says.

"My business specialises in cleaning quality garments and by using Green Earth I will be able to eliminate problems such as ornamental beads melting. Green Earth is a lot less aggressive and leaves fabrics softer, because the silicone in it 'lubricates' the fabric. Perc gets into the water table, it's heavy and it doesn't break down."

Mr Hudson wants to put in place the world's best practice in terms of environmental management.

"My personal view is that most businesses think it's too costly, but in the long-term, implementing environmentally-friendly practices will save you money over time.

The property industry is also under pressure to incorporate ecologically sustainable development (ESD) practices.

At the recent Green Cities Conference, hosted by the Green Building Council of Australia, it was announced that more than 70 per cent of all greenhouse gases are generated by residential and commercial buildings. The findings highlight the importance of sustainable buildings and the effect they have on climate change.

In a first for the Gold Coast, a desalination plant will be installed within a high-rise residential building at Raptis Group's $700 million triple tower development, Southport Central.

Raptis Group has also included a 100,000 litre water reclamation tank in the design of each tower to harvest rainwater. The second tower, currently under construction, will incorporate a desalination plant to treat and filter captured rain and ground water to be used for irrigation, to top-up water features and toilet flushing in commercial precincts.

Raptis Group Chairman Jim Raptis says that with the increasing need to conserve water, the desalination plant was the next step in the company's commitment to sustainable development.

"From the tanks, the water will be pumped through a clarification system where suspended solids are removed then filtered through a Reverse Osmosis (RO) plant. We estimate this reverse osmosis plant will be able to filter up to 30,000 litres per day," says Mr Raptis.

A collaborative CoreNet Global and Jones Lang LaSalle's survey has revealed 64 per cent of respondents from the Asia-Pacific are prepared to pay a premium for 'agreener' real state.

The report shows 93 per cent of respondents expressed a notable increase in awareness regarding sustainable buildings over the last three years, with 62 per cent expressing that such growth in associated environmental, economic and social awareness had been significant.

Even China, a country criticised for poor environmental planning, is building five 'eco-cities'. The first, near Shanghai, will be powered by natural resources such as rice husks, bio-waste and wind turbines.

"It's a global issue and we have the technology to get ourselves out of this. We can't save the planet - the planet will do what it has been doing for millions of years - but we can make it sustainable for people to live in," says Charlie Foxall.

Gold Coast Business News welcomes you to give us your views and contributions to our cover story for June.

We like to hear how your company is doing its bit to ensure a cleaner, greener planet for generations to come.

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In our climate-changing world, the environment and profits are now sharing priority

Gold Coast Business News welcomes you to give us your views and contributions to our cover story for June.

We like to hear how your company is doing its bit to ensure a cleaner, greener planet for generations to come.

Other Recent Articles

In our climate-changing world, the
environment and profits are now sharing priority