Climate Change

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Climate Change Energy Costs Industry
Impacts Bob Gilliver University of South
Australia
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Climate Change Energy Costs An Example The
Australian Wine Industry Bob Gilliver University
of South Australia
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The Context

• Finest Wines come from finest grapes
• Finest Grapes come from finest growing
  environments
• Wines are distinctive in style
• Grapes must be distinctive in style
• Style is governed by regions
• Regions are governed by soil and climate
• If Climate changes, finest wines change

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UK 10 LARGEST WINE BRANDS

• Brand Producer Company Sales
• 1 E J Gallo E J Gallo Winery (USA)
  87 mill.
• 2 Jacobs Creek Orlando Wyndham (Australia)
  73
• 3 Nottage Hill BRL Hardy (Australia) 72
• 4 Stowells of Chelsea Matthew Clark Plc (UK)
  43
• 5 Rosemount Rosemount Estate (Australia) 42
• 6 Lindemans Bin 65 Southcorp (Australia)
  37
• 7 Penfolds Southcorp (Australia) 28
• 8 Blossom Hill UDV (USA/UK) 27
• 9 Le Plat DOr Piat Pére et Fils (France)
  23
• 10 Banrock Station BRL Hardy (Australia)
  22

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• The impact on the Grapes

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Consequences - Temperature
Increase by 1.7 degrees by 2030. Ripening
Season will be shorterDecline in fruit flavour
(ie quality by up to 50). Quality is
Australias main competitive advantage
!! Ripening Season will begin earlierBudburst
is earlier than usual. In some areas by up to 45
days. Production YieldsYield /hectare may
fall by 50
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4 Hours Flying Time
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Grapes Rainfall changes
The Australian wine industry uses 4 billion
litres of water per year 1 degree increase in
average temperature equates to a 15 depletion
of water resources Declining Rainfall
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Consequences - Unexpected

• Germany phytoplasma disease (30 in 2 yrs)
• Ontario Asian Lady Beetle (taint)
• Bordeaux now like Riverland in Australia
• Riverland becoming untenable
• Rising salinity in freshwater tables, also
  impacts Europe

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Industry Re-structuring
Solutions Move vineyards to cooler climates
Breed heat tolerant roots and grapes Late-ripenin
g, heat-loving varieties
NebbioloZinfandelCarignaneGrenacheSangiovese
Pinot GrisGewurztraminerRieslingPinot
NoirChardonnaySauvignon Blanc
Grow well in a hot climate. Need less water.
Ripen good flavour. Hold good acidity.
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Vineyard Solutions - Micro

• At a practical level
• Need balance of quality soils and climate.
• Mulch under vines.
• Native grasses between rows to preserve
  moisture.
• Soil cover. Canopy management. Irrigation
  scheduling.
• High efficiency irrigation systems not to
  over-water.
• France has now approved vineyard irrigation.

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• In the Winery

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Energy Consumption in Wineries
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GHG Emissions in wineries
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Energy Step 1
In the winery, accept energy as a variable cost!
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Energy Management Activities in Wineries
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Energy Management Activities in Wineries
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Energy Management Activities in Wineries
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Energy Management Activities in Wineries
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Energy Management Activities in Wineries
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Energy Management Activities in Wineries
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Winery Solutions - Micro

• At a practical level
• Switch to high voltage electricity supply.
• Over-chill wine in off peak periods, then
  power off.
• Direct fill from cellar to packaging (saves
  extra storage refrigeration)
• Product to product heat exchange
• Lees removal with centrifuge, not racking
• Solar heating for peak loads
• Insulation cladding
• Variable speed drives on motors
• Low energy tank agitators
• Area lighting

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Energy Strategies
Energy conservation behaviours
Supplier negotiations tariff choice
ENERGYManagement Actions
Energy Source Selection
Energy effective practice
Energy efficient technology
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The European Situation 4 Industries
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• Identify key challenges facing companies in this
  industry
• from a Climate Change perspective, and
• in relation to rising energy costs.
• Choose one of the challenges you have identified,
  and develop strategic responses to deal with that
  issue.
• Select one member from your group to join the
  feedback discussion panel.

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Motor Vehicle Industry
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Chemical Industry
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Food Drinks Industry
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Clothing Textile Industry