Potatoes from a field in Spain. Image courtesy PepsiCo
Under a flexibility contract with Dutch grid operator Liander, food company PepsiCo will purchase power only when there is sufficient supply and transport capacity available on the grid.
The food maker will use a thermal and storage installation, courtesy Dutch electricity supplier Eneco, to electrify processes at its chip factory in Broek op Langedijk, only using the installation if there is capacity available on the electricity grid.
With the installation, which the company likens to a large hair dryer, sustainable electricity is converted into heat (800ºC).
This hot air can be used directly to heat the oil used to fry the chips or can be stored for later use. In this case, the hot air is passed through a large container with iron slag material. The heat is released to this. When the heat is needed again, the air flow is reversed and the iron slag material releases the heat back into the air.
Replacing natural gas with sustainable electricity will lead to a reduction in CO2 emissions of more than 50% in the first phase compared to what PepsiCo expects in emissions without this sustainable solution.
This installation is expected to be ready for use in the Dutch fall of 2025.
Flexible connections agreement
To connect this installation, PepsiCo and Liander have made agreements, whereby PepsiCo can only use the installation if there is capacity on the grid, which is not always available in the region. This has been laid down in a new, flexible contract form.
With this contract, PepsiCo is allocated capacity on the electricity grid daily, outside peak times.
PepsiCo only pays for the allocated and actually-consumed kWh, instead of for a reserved capacity that must be available 24/7.
In this way, consumption is better aligned with the capacity on the electricity grid and PepsiCo only pays for what it really needs.
In combination with the thermal installation and storage of Eneco, PepsiCo can use this to make it more sustainable and at the same time help to make better use of the electricity grid.
This is a contract form in a pilot phase. If successful, this contract form will be made further scalable.
It is expected that at least two other forms of alternative transport rights can be offered more widely in the course of 2025.
More on flexibility:
Flexibility delivers £300m in savings for UK bill payers says ENA
Five flexibility pilot projects get go ahead in Spain
Industrial flexibility
Liander calls the contract with PepsiCo an example for other industrial companies and says they will continue to actively search for flexible solutions with the 100 largest gas consumers.
Commenting in a release was Joris de Groot, chief transition officer (CTO) at Alliander, Liander’s parent company: “The Netherlands needs industry. It is one of the engines of the economy.”
“The sector is facing major challenges such as a full electricity grid. It is important that we shape flexible electricity use with industry. I am therefore proud of the steps we are taking with PepsiCo and Eneco.”
Dutch grid operators continue to battle with congestion management on the power grid, looking to flexible electricity use – and such contracts as with PepsiCo – as an essential strategy.
According to Liander, there are other flexible contract forms that can already be applied on a larger scale in industry and offer opportunities for sustainability.
The company cites as an example existing congestion management contracts. With a flexible on-demand contract, they say, companies are told in advance when they have to reduce their use or can supply less.
Industry can also use a contract in which they offer their flexibility on the day for a fee. Industry that is located on an industrial estate can also supply flexibility with a group.
“Access to flexible sustainable electricity is a very important prerequisite for us to be able to make production in our chip factory in Broek op Langedijk more sustainable,” said Japo Ouwerkerk, director Corporate Affairs at PepsiCo Northern Europe.
