Brew your own energy

Says Ian Gadsby, Managing Director, Ylem Energy

Here’s a sobering thought – the UK economy would probably have fallen into recession if the breweries hadn’t kept the taps flowing during the World Cup. Pubs and bars experienced a sales jump of 30-40 per cent on matchdays during the tournament, with around 50 million pints alone drunk during the weekend of the quarter finals

GDP Figures for November released in January showed unexpected growth of 0 1 per cent, again highlighting the importance of the hospitality industry to the UK economy This should have marked the beginning of a post-Covid recovery in the brewing sector, but high energy costs and inflation continue to cast a shadow over the industry.

With the cost of commodities and labour inextricably linked to inflation, they will continue to present a substantial challenge, although energy may be the most severe, even existential, threat

Unlike at home, breweries can’t just turn down the thermostat, reduce the boiler flow temperature or unplug appliances not being used If you’re energy intensive, you are cost intensive – beholden to an energy market which has the potential to spiral again and with no guarantee of long-term Government support

The Government announced in January that it will continue to support breweries and other energy intensive industries until March 2024 under their new Energy Bills Discount Scheme. Reports had suggested the scheme would be targeted at vulnerable businesses, so it was a welcome surprise for most businesses that the scheme will be universally extended for another 12 months However, the stark reality is that businesses still face huge energy cost increases

The application of the original price cap meant the net cost to business was circa 24p kWh However, with the replacement scheme halving support, the same businesses are expected to be paying around 30p kWh – around twice as much as most were paying twelve months ago

Adding other elements, the net cost to business could be somewhere between 35p and 40p kWh Beyond international market fluctuations, additional concerns have been raised about increasingly fractious relationships with suppliers, prompting the British Beer and Pub Association (BBPA) to raise the matter with Ofgem Accusations of profiteering are rife at the moment, with upfront deposits demanded and non-energy costs layered onto bills, leaving many publicans and breweries concerned about what they can do to secure their energy supply.

There is also a distinct lack of focus on improving efficiency, with most contracts encouraging breweries to use as much energy as possible With the wider focus on decarbonisation and meeting Net Zero, it seems counter-intuitive to seek operations that are more energy intensive While ‘cash is king’ for the time being, consumer interest in sustainably sourced products looks to only grow and it must be built into any long-term energy supply strategy

It is clear breweries must become more innovative in the way they operate At Ylem Energy we are seeing an increasing number turn to on-site energy generation, whether this is installing technologies such as solar panels, or hydrogen-ready gas power generation systems

Having a bespoke energy supply and storage system which is more sustainable provides security that energy tomorrow will cost no more than the energy today, rather than being at the mercy of global market headwinds Where more power is generated than needed, you can choose to engage with the grid on your own terms by selling that excess on With energy costs remaining stubbornly high and Government support being gradually reduced, the time to act is now The spike in brewing sales during the World Cup showed there is still life yet in the brewing industry and that our pubs and bars can survive in the post-Covid economic environment

However, what the past year has shown us, is that their long-term survival hinges on being futureproofed against avoidable energy price spikes

There is no sure way of predicting when the next hike in energy prices will come, but by moving your energy generation on site you can take control and insulate your business against these fluctuating costs

This energy crisis we are experiencing may be new, but the solutions don’t have to be.

As Managing Director of Ylem Energy Limited, Ian is leading the UK based business growth across a diverse range of energy projects. These include expansion of the company’s O&M services, grid connected “peaking“ generation, grid scale battery energy storage and onsite power generation – utilising solar, battery storage and base load generation solutions for intensive energy businesses In addition to its UK business, Ian is also responsible for the oversight of the business’ activity in South Africa and Mexico

For further information: www.ylemenergy.com

New Beer Recipe Development Course

The IBD has launched a short course aimed at brewers on a path of continuing professional development and those who just want to become better brewers!

The course provides essential knowledge for recipe development for experienced commercial brewers with a sound understanding of the basics of brewing, and it will also benefit more serious home brewers The course includes expert advice and guidance from brewers who have developed some of the world’s most iconic beer brands:

For further information: www.ibd.org.uk