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Mars Petcare unveils renewable energy plan

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31 Oct, 2024

This post was originally published on Sustainability Matters

Mars Incorporated has announced that its Wodonga pet food manufacturing facility, producer of PEDIGREE and WHISKAS, will become the first large-scale steam-based manufacturing site in Australia to deploy a 100% renewable energy solution, for both electricity and process steam, within the next two years.

The company described this as a significant step towards achieving its commitment to net zero emissions by 2050.

Prime Minister Anthony Albanese toured the site alongside Craig Sargeant, General Manager of Mars Petcare Australia and New Zealand.

“We are incredibly proud to announce that Mars will be the first manufacturing facility of its kind in Australia to deploy a 100% renewable energy solution within two years,” Sargeant said.

“Decarbonising site-based process heat, coupled with Mars Australia’s 100% renewable electricity use, is a significant achievement that not only reflects our ongoing commitment to sustainability but also positions our Wodonga facility as a leader in green process heat manufacturing on a national scale.”

The parabolic trough at the Mars Wodonga Solar Thermal Plant.

Key to the transition will be the $39.3 million Mars Wodonga Solar Thermal Plant. This includes the installation of an 18 MW parabolic trough concentrated solar thermal (CST) plant providing up to 10 hours of thermal energy storage for cooking pet food. The project, partly funded by a $17.2 million ARENA grant, marks the first commercial deployment of parabolic trough CST technology in Australia, according to Mars.

“Investing in renewable energy technologies like CST is critical to decarbonising industrial processes, particularly in sectors that heavily rely on gas for steam-based manufacturing,” Sargeant said. “CST offers a powerful solution by capturing and storing solar energy, in the form of high-temperature heat, for use at any time, making it an ideal fit for our steam-based manufacturing needs.”

Mars Petcare Green Steam.

Mars has also implemented electric thermal energy storage (eTES) technology. This allows the facility to utilise low-cost, grid-connected renewable electricity during off-peak times to generate and store heat that can produce steam at any time of day or night. Supported by CSIRO, the eTES system provides a cost-effective, renewable alternative to gas.

Additionally, Mars is working with the Australian Gas Infrastructure Group (AGIG) to purchase Renewable Gas Guarantee of Origin certificates at Hydrogen Park Murray Valley. This arrangement will displace over 10% of Mars Australia’s total gas consumption, which includes Mars Petcare Wodonga.

“For Mars, the CST and eTES systems are complementary renewable heat technologies,” Sargeant said.

“With the addition of the AGIG hydrogen purchase, and Mars Australia’s existing 100% renewable electricity agreement, the Wodonga facility will deploy a 100% renewable energy solution within two years, as part of our global commitment to 100% renewable energy for site-based operations by 2040.”

Mars is also working with other local companies and government entities as part of a broader effort to help create a renewable energy hub in north-east Victoria for generations to come.

“Mars is incredibly proud of the fact we have been manufacturing in the Wodonga area for more than 50 years,” Sargeant said. “We are part of the fabric of the local community, supporting jobs and investment in regional Victoria.

“Wodonga is at the heart of that journey, and today’s announcement is a major step forward in supporting both regional investment and Australia’s clean energy future.”

All images courtesy of Mars Incorporated.

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From coal to clean: accelerating Asia's renewable energy transition

From coal to clean: accelerating Asia's renewable energy transition

With world leaders, climate and environmental scientists and business leaders having gathered in Baku for COP29 — the 29th Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC) — we’ve been advocating that this transformation poses significant challenges while simultaneously providing opportunities for growth, resilience and innovation.

The role of coal and the need for change

Coal remains the largest contributor to climate change, generating 35% of global electricity as of 2023. The International Energy Agency’s (IEA) net-zero scenario calls for OECD countries to reduce coal’s share in power generation to 14% by 2030, with a complete global phase-out of unabated coal by 2040.

This underscores the fact that achieving global climate goals hinges on a viable energy transition strategy, particularly in Asia, where demand continues to surge.

The need for decarbonisation is stark: Asia’s carbon emissions now account for over half of the global total. The young age of Asia’s coal fleet — about 13 years on average — complicates the shift to renewables, with significant investments still tied up in coal plants. According to the World Economic Forum, policies that streamline and incentivise plant closures or conversions can accelerate the pace of transition.

Economic and environmental challenge

Transitioning to renewables in Asia requires not only technological shifts but also robust financial mechanisms.

We need financing models that incorporate public and private capital, with mechanisms like loans and grants making clean energy more accessible and competitive.

Countries like Vietnam face hurdles such as rigid power purchase agreements that protect coal plants from competition. Overcoming these barriers demands innovative financing, potentially reducing the cost of capital to make renewable projects more viable and less risky.

The move from coal to renewables also requires securing grid stability and resilience. The diversity of resources across Asia — from hydropower in Southeast Asia to solar in China — necessitates tailored strategies for integrating these resources into a cohesive and stable energy grid. GHD is actively involved in helping clients to navigate these complexities by advising on technical planning, decommissioning and the use of renewables like solar and wind.

Action steps to help Asia transform from coal to clean:

Develop robust financing models: Facilitate access to capital with a mix of loans, grants and public–private partnerships to make renewable energy more competitive and scalable.

Strengthen policy frameworks: Governments should adopt supportive policies to encourage investment, ease regulatory restrictions and provide incentives for renewable energy projects.

Invest in grid resilience and smart technology: Modernising grid infrastructure, including smart grids, is essential for integrating renewables and managing intermittent supply efficiently.

Encourage regional knowledge-sharing and collaboration: Cross-border partnerships can accelerate technology transfer, innovation and the development of best practices for transitioning from coal.

Support local workforces and communities: Implement training programs, workforce transition initiatives and local engagement strategies to ensure a fair and equitable transition for coal-dependent communities.
 

Based on this, there are three critical pillars for a successful transition: stable technical solutions, sustainable stakeholder engagement and a strong business case. Every project requires bespoke planning that integrates stakeholder interests, addresses environmental impacts and leverages technical expertise to ensure grid reliability.

A well-defined transition strategy that supports all stakeholders and secures financial backing is essential for a viable energy future.

Creating such a strategy involves evaluating the potential of each project and exploring repurposing opportunities, from battery storage to hydrogen production.

Looking forward: policy, financing and social impact

A successful transition will rely on supportive policies that facilitate investment and foster technological advancements. We need to understand the importance of a ‘just transition’ that balances environmental goals with economic equity, especially in coal-reliant communities.

Communities cannot be sidelined; local stakeholders need to benefit from new economic opportunities in renewables. At COP29 in Baku, GHD has been advocating for a holistic approach, including policy alignment, financial innovation and active community engagement.

The shift from coal to clean energy isn’t merely a goal — it’s an urgent necessity. Through collaboration, innovation and commitment to sustainable development, we can achieve a cleaner, greener future for Asia and beyond.

*Richard Fechner is GHD’s Enterprise Business Advisory Leader, leading the global business in providing strategy, commercial, economic, business case, logistics, policy, regulatory, asset management and transaction services. With over 30 years of experience, Richard has held senior roles in both the private and public sectors, contributing significantly to infrastructure development, investment and delivery across various sectors including ports, agriculture, energy, government and defence. He has advised on approximately AU$150 billion in infrastructure transactions and is a highly skilled infrastructure and business professional with expertise in strategic planning, business management and project engineering.

**Dr Tej Gidda is a distinguished expert in clean energy transitions and currently serves as the Global Leader for Future Energy at GHD. With over 20 years of industry experience, Dr Gidda holds a PhD in Environmental Engineering and is a registered Professional Engineer in Ontario. His work focuses on integrating clean energy technologies into existing systems and developing innovative strategies to overcome challenges related to reliability and affordability. Dr Gidda’s expertise spans hydrogen, renewable natural gas, traditional renewables, energy from waste, energy security and planning. He is also an adjunct professor at the University of Waterloo.

Top image caption: Pagudpud Wind Farm, Ilocos Norte, Philippines. Image courtesy of GHD.

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