Analysing the Feasibility of Electrification in Selected Subsectors of the Brazilian Food and Beverage Industry

The project "Sector Coupling and Green Economy in Brazil" is comprised of a total of 3 Outputs. In specific, the contractor is expected to contribute to the achievement of the goals described in Output 2; to contribute to the goals in Output 3, to achieve the objectives under output indicator 2.1 and to contribute to the goals of output indicator 3.2., further described below. Output 2: In selected companies, the economic advantages of electrifying industrial processes with electricity from renewable sources have been demonstrated. - 2.1 Output Indicator: 3 potential studies have shown the economic benefits of electrification, including the use of digital tools for demand-side load control in selected sectors. o Base Value: 0 (There are no potential studies on the electrification of industrial processes.) o Target Value: 3 Potential Studies (2023) - 2.2 Output indicator: The economic feasibility of converting industrial processes from the use of fossil fuels to electricity from renewable sources was demonstrated in six companies. o Base Value: 0 Companies (Electrification with RE is being discussed in the Brazilian industry, but has not yet been implemented) o Target Value: 6 Companies (2025) Output 3: Needs-driven electrification concepts with electricity from renewable sources are included in the future development of national decarbonisation strategies. - 3.2 Output indicator: Brazilian business associations have included two electrification concepts based on the needs of their member companies, developed by international research groups, in their recommendations for decarbonization. o Base Value: 0 Concepts for Direct Electrification o Target Value: 2 need-based concepts (2024) In this context, the objective of this assignment is to develop a study aimed at assessing the technical and economic potential, and the environmental impact associated with the electrification of three selected subsectors within the Food and Beverage industries in Brazil. The Food and Beverage industry was selected because it represents the largest energy consumer among Brazilian industries. According to EPE, in 2022, the industry sector represented 86.949 103 tep in terms of energy consumption in Brazil, from which 8,3% was consumed by the Food and Beverage industry. The contractor should cover two well-known readily available electrification technologies (heat pumps and e-boilers) as well as other potentially feasible electricity-based decarbonisation technologies emphasizing their implementation for the supply of thermal energy (heat, cold, pressure, steam) within the low and medium temperature ranges (up to 200°C) in industrial processes of three Food & Beverage subsectors. In this context, the specific objectives of this assignment are outlined as the following: 1. Provide a detailed description of the sequential stages of the production processes in the selected industry subsectors, focusing from raw product to final product, indicating the stages that require thermal energy and the energy sources currently used. 2. Assess the potential for the best suited electrification technologies to decarbonise the three selected subsectors. In this context, the study showcases exemplary global practices of the decarbonisation of the respective subsectors, with a focus on, but not limited to, the utilisation of heat pumps and electric boilers. Additionally, the study delves into the technical specifications and production aspects of these technologies. 3. Analyse the environmental impact of the implementation of direct electrification technologies in the selected industry subsectors. In this context, the study calculates potential savings in fossil fuel usage and associated CO2-eq emissions, and it estimates the increase in electricity demand and its linked CO2-eq emissions resulting from a higher electrification of the production process. 4. Address the economic landscape of energy sources currently used within the subsectors, by examining costs, potential price variations, and maintenance considerations related to heat pumps and electric boilers. 5. Identify financing options both globally and within Brazil to foster the electrification of thermal energy demand in industrial processes. For that purpose, the study details financing options, encompassing aspects like duration, interest rates, and other pertinent financial considerations. 6. Contextualize the general scenario for electrification of industrial thermal energy demand in Brazil, by presenting both international commitments assumed by the country and national policies influencing industrial electrification. 7. Explore the potential for flexibilization of the electricity demand in the entire value chain of the companies active in the selected subsectors, after the (hypothetical) implementation of direct electrification technologies. 8. Develop three direct electrification guides tailored to the needs of three industry associations representing the three selected Food and Beverage industry subsectors. An Activity Planning and Methodological report is requested at the beginning of the assignment. The general outline and the milestones as well as the requirements for short-term experts, international and national, should be prepared and agreed upon with GIZ"s Commission Manager (AV). The contractor shall provide a Team Leader with international expertise who shall be responsible for the implementation of project activities and the achievement of the specific objectives as described above. The team leader supervises and steers coordination, qualities, cost, and schedule. The contractor shall provide a Senior Expert with national expertise who shall be responsible for the coordination of local activities with national partners and GIZ"s project staff. The contractor shall also provide a pool of international experts to be assigned to specific project activities.