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

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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

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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

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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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