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Water

Water is gaining attention as a key global and local issue, with water scarcity issues a particular issue of emphasis. This issue results from the increasing demand for water consumption and also results from climate change, which has direct impact to the richness of water resources.

Water is a main raw material for ThaiBev's business as a manufacturer and supplier in the beverage industry - with quality and quantity of water having a direct impact on our products.

We thus place significant importance on sustainable water management across our value chain - from both quality and quantity perspectives. We also place strong importance on responsibly managing wastewater from our manufacturing processes, as well as water scarcity issues.

Sustainable water management across the value chain

In line with our resource conservation policy, we encourage the use of water according to the 3Rs principle - Reduce, Reuse, Recycle:
  • Reduce : By mean of improvement of process efficiency such as optimization and improve efficiency of Cleaning in place process resulted reduction of time consumed in rinsing fermentation tank process which is naturally reduce in water consumption.
  • Reuse processed water e.g. the used cleaning water from bottle washer is feedback to pre-soaking bottle before through the bottle washer machine to improve the cleaning efficiency and reduce water consumption, in using water from steam trap and condensate water as feed water to Boilers to reduce water and energy usage
  • Recycle water from backwash activated carbon and reject water from Reverse Osmosis (RO) to be used in in-house water supply. This also includes recycling treated water to use as a substitute for water used in treating waste water or watering the plants around the factory, and recycling water for agricultural purposes (planting rice, sugarcane, etc.) for the surrounding community.

Our efforts from 2012 to 2014 allowed us to reduce water consumption through reuse and recycling as shown below.


Table: Amount of water reused and recycled (cubic meters/year) 2012-2014

      2012     2013     2014
BusinessGroup Reuse
&
Recycle
(m3)
Raw
water, (m3)
% of
Reuse &
Recycle
Reuse &
Recycle
(m3)
Raw
water,
(m3)
% of
Reuse &
Recycle
Reuse &
Recycle
(m3)
Raw
water,
(m3)
% of
Reuse &
Recycle
Spirits Business
group
1,000,646 8,700,535   1,008,627 8,344,103   1,415,511 8,329,987  
Beer Business
group
1,494,673 5,747,360 17 1,584,425 5,462,660 19 1,381,655 4,935,117 21
Total 2,495,319 14,447,895 2,593,052 13,806,763 2,797,166 13,265,104
                   

Remark: Source of water reused and recycled from calculation and flow meter


Water resources for our process is comprising of source from surface water, ground water, rain water, and municipal water supply, whereby the amount of consumption is shown below


Table: Total water consumption (cubic meters)

  2012 2013 2014
BusinessGroup      
Spirits Business
group
8,700,535 8,344,103 8,329,987
Beer Business
group
5,747,360 5,462,660 4,935,117
Total 14,447,895 13,806,763 13,265,104
       

Remark: Source of information from flow meter record measurement


The total amount of water used per production unit for the Spirits and Beer Business Group in 2012-2014 is shown below.


Table: Total water consumption per production unit (liters/production liter)

  2012 2013 2014
BusinessGroup      
Spirits Business
group
15.21 15.35 15.35
Beer Business
group
6.13 6.28 6.12
       

Remark: Source of information from spirit and beer flow meter record measurement


Effluent to environment

It was found that water consumption in 2013 for the Beer Business Group increased per production unit. This is a result of additional installed packaging line. Hence, in 2014, ThaiBev introduced projects to improve efficiency of water usage by mean of process optimization, reducing in loss, etc. By then the water consumption can regain to the expected target in 2014. We have installed continual improvement projects to push continual reduction of water consumption in 2015.

For Spirits Business Group, higher water consumption in 2013-2014 resulted from installation of Mechanical Vapor Recompression Evaporation (MVR) system (by Thaibev Energy Co., Ltd.) and cooling tower at Sura Bangyikhan plant to increase production efficiency and reduce energy consumption.

Aside from our measures to continual and sustainable improvement across our value chain, we've also signed up to participate in a water footprint project for food exporters with the Thai government. We're using water footprint to measure our consumption of water, which will not only reduce our water consumption, but also help us to manage our wastewater. The initiative will begin in February 2015, and end in June of the same year. ThaiBev is looking forward to supporting water consumption reduction and water resource optimization as a corporate citizen of the world.

Risk management of water sources

Thaibev applies the Global Water Tool developed by World Business Council for Sustainable Development (WBCSD) and Aqueduct developed by Word Resources Institute (WRI) despite the fact that all 18 Distilleries and 3 Breweries located in plentiful water areas. Through this, ThaiBev is able to identify water supply and scarcity risks in those areas that could impact not only ThaiBev itself, but also the surrounding community and environment. To address these risks, ThaiBev has conducted a study and invested in establishing a water supply system to substitute current consumption of ground water for the breweries group, and using ground water to substitute consumption of surface water in the distilleries group. In addition, ThaiBev also applies a risk management framework to help increase the efficiency of water resources management.

Risks from natural disasters such as floods and droughts can also affect changes in water quality. Thaibev have now implemented measures to manage them as you'll see in the cases below.

  • The factories of Sura Bangyikhan Co., Ltd. located in Pathum Thani province, Nateechai Co., Ltd. located in Surat Thani province, Cosmos Brewery (Thailand) Co., Ltd. and Beer Thip Brewery (1991) Co., Ltd. have each invested in building defenses surrounding the factories' perimeter to mitigate risks from flood.
  • The factory of Sura Bangyikhan Co., Ltd. located in Pathum Thani province plans to invest in a liner pond project in 2015, which will help to control water quality risk of high chloride content during the drought season.

In addition, all spirits and beer factories also took into account the impact on surrounding community and has invested and been designed to protect such impact. For example, Beer Thai (1991) Public Company Limited and Beer Thip Brewery (1991) Co., Ltd. have built reservoirs to keep water during the rainy season, so no water from outer sources is not required in summer and is reserved for the surrounding community.

Wastewater management

Aside from ensuring that we have water sources of the right quality and quantity, we also recognize the importance of managing waste water management from our manufacturing processes. In this respect, we comply with ISO 14001, Green Factory Concept, and the Environmental Governance Project. Some of our key initiatives in this area include:

  • Investment in an anaerobic wastewater treatment system ; (1) Up Flow Anaerobic Sludge Blanket (UASB), (2) Internal Circulation Reactor (IC Reactor) which is a high organic loading rate system, helping to reduce time and power consumption. The efficiency is higher than 99.5% and follow by aerobic wastewater system. Result is higher quality water 3-5 times when compared to regulation. In addition to the efficiency of the system we gain byproduct from the wastewater treatment process -methane -that can be used as a substitute to fossil fuel for boilers. At the same time result from anaerobic wastewater treatment system produces fewer sludge and reducing environmental impact.</

  • Managing intensive organic waste water through a burning method by using Slop Evaporator and Incinerator, resulted in heat energy that can substitute fuel oil for boiler. Application of this method benefit in a cost reduction for steam production by 64% per year, which equal to 13.5 million liters of fuel oil consumption. Moreover, byproducts can be used in place of chemical fertilizers and is a method for soil conservation.

  • The research on the properties of distillery slop. Findings showed that distillery slop is composed of nutrients of benefit to plants and soil. With the permission and control from the government, ThaiBev has been able to support local farmers by providing 1.3 million cubic meters of distillery slop as fertilizer, in 2014 - eliminating their need to use chemical fertilizer. Waste-water from the production process which has been treated to standards is also used for in-house plant watering in accordance with our zero discharge concept.

  • The reduction of pollutants in treated water. The treated water has continue reduction of pollutant load 2% per year in term of Chemical Oxygen Demand (COD) units, equivalent to 0.009 kg COD/Hl products, compared to the 2011 base year, we currently we have achieved COD reduction of 26,809 kg COD/year or 4.03% in 2014 compared to 2011. We have several initiatives aimed at cleaner effluent and create value by turning this waste to value added byproduct such as the initiative to reduce suspended solids from the Spent Grain Drying Plant by mean of taking away suspended solid from the waste from spent grain drying process and added value to create as valued by product and reduce suspened solid to waste water treatment. This initiative has implemented through the application of the Clean Technology (CT) or 3Rs principle. The initiative involves minimizing waste at the source, reducing chemical consumption throughout the value chain, and minimizing discharges from manufacturing process.
Use of slop for soil improvement
in place of chemical fertilizers
Aerobic wastewater treatment system

In our efforts to control the quality of treated water, we have a strong intention to install sustainable management and monitoring system. This is shown through the installment of equipment and the international environmental standards that our laboratory meets.

Our laboratories are all registered as a certified private laboratory and we are also certified as a water quality control specialist and water quality analyst accredited by the government body, the Industry Department. Beyond the government body certification, we have been certified with the International Laboratory management system ISO/IEC 17025 for the analyzing of BOD, COD, pH.

Online Reporting

Government agencies are welcome to perform quality inspections of our treated water at any time through the BOD online report to the Provincial Industry office and/or the Department of Industrial Works. In addition, we have competence human resources who are certified as a water pollution control specialist and water pollution analyst to operate and control water and waste water treatment activity. We have strictly set the target for effluent indicators to be tighter than the regulation requirements which would indicate our strong intention to having responsibility to the environment. Our performance can show that the treated effluent from our production site is continuously 3-7 times cleaner than the regulation limit.


Table: The comparison of result of treated water in each standard parameter

      Effluent
Parameter Standard Target
per Regulations*
ThaiBev Target Actual
pH 5.5 - 9.0 ≤ 8.5 8.02
COD ≤ 120 mg/l ≤ 100 mg/l 28 mg/l
BOD5 ≤ 20 mg/l ≤ 20 mg/l 3 mg/l
TSS ≤ 50 mg/l ≤ 30 mg/l 9 mg/l
TDS ≤ 3000 mg/l - 914 mg/l
       

Remark: *Refers to Ministerial Notification No.2 B.E. 2539 (1996), issued in accordance with the Factory Act B.E. 2535.

 

Energy

Energy sources, especially electricity and thermal, are indispensable for our industry. Yet, current global and regional concern over climate change and resource scarcity have the potential to bring about direct impacts on our business sustainability, whether through rising prices and stakeholder expectations.

Part of the problem is rooted in the continuous, excessive consumption of energy by the business sector. ThaiBev recognize our role in helping to address this issue, and thus adhere to energy and environmental conservation policies that aim to enhance energy efficiency. Moreover, to enhance energy sustainability, we have been working on research and development to promote energy reuse and reduce environmental impacts from energy consumption from both alternative energy and renewable energy as well as sourcing for the alternative energy.

Energy and environment conservation policies

In view of widespread concern over energy scarcity and rising prices, ThaiBev has joined the pilot project for energy management promoted by the United Nations Industrial Development Organization (UNIDO). The factory of Sura Bangyikhan has been selected to be the pilot plant of the project in 2013. Follow by the factory of Red Bull Distillery (1988) Co., Ltd. in 2014 and the factory of Fuangfuanant Co., Ltd. in 2015. In additional, we aim to continuous improvement process for effectiveness of energy usage such as

  • Improve efficiency of energy consumption and minimize waste energy; for example, reusing waste heat from ammonia gas to heat reverse-osmosis water before it enters the steam boiler. This method helped to reduce the quantity of energy used in heating reverse osmosis water and reduce waste energy from the system.

  • Improving the energy efficiency of machinery and equipment; for instance, the redesign of heat distribution of our Wort Kettle Project can reduce the quantity of steam used during brewing process. Our Wort Circulation System also helps to reduce the average Dimethyl sulfide (DMS) in cooled wort and improve the efficiency of hop utilization which improve in both view of quality and cost.

  • Introducing the Total Productive Maintenance (TPM) to support machine efficiency as well as energy saving

  • Encouraging awareness raising campaigns and promotion on energy conservation

  • Supporting ThaiBev employees in participating in energy conservation activities

In addition to installed sustainable management system, ThaiBev has adopted ISO 50001 as an international energy management standard to help improve capacity, efficiency and energy conservation. In 2014, we had two factories, including Sura Bangyikhan Co., Ltd. and Atimart Co., Ltd. which became certified by ACM SERVICES COMPANY LIMITED, in collaboration with Kasetsart University. Moreover, ThaiBev is planning to expand this energy management system to be implemented in every factory, with the objective of bringing about value in the following ways:

1. Increasing the efficiency of ThaiBev's energy management through adopting ISO 9001 and ISO 14001
2. Adopting standards as a guideline for benchmarking, documentation and reporting on the results of energy consumption improvements and management of Greenhouse gas reduction projects
3. Assigning responsible persons along the production process to encourage energy efficiency
4. Improving energy resources utilization to reduce costs and increase production efficiency
5. Supporting the development of new energy efficient innovations
6. Developing ThaiBev's energy management practices, in a way which is concrete, practical and supports continuous improvement

Alternative energy resources management

ThaiBev has used renewable energy to substitute for non - renewable energy as a source of thermal energy, and to reduce the amount of electricity used in our factories. This is to reflect our dedication to reducing our environmental impact. The total amount of energy consumption can be found in the following table.

Table: Amount of total energy consist of Non-Renewable, Renewable and Electrical Energy

  Energy consumption from non-renewable (MJ) Energy consumption from renewable (MJ)
  2012 2013 2014 2012 2013 2014
BusinessGroup            
Spirits Business
group
2,565,126,939 1,757,440,210 1,590,390,535 533,817,810 406,672,291 414,956,232
Beer Business
group
756,644,405 783,119,422 679,184,361 262,837,853 203,972,986 115,816,878
Total 3,321,771,344 2,540,559,632 2,269,574,897 796,655,032 610,645,277 530,773,110
             

Remark: Source of data is from 18 distilleries and 3 breweries

 

  Electrical consumption (MJ) Total Energy (MJ)
  2012 2013 2014 2012 2013 2014
BusinessGroup            
Spirits Business
group
264,032,412 219,831,309 221,847,173 3,362,976,531 2,383,943,810 2,227,193,940
Beer Business
group
352,976,602 330,211,757 329,396,760 1,372,458,859 1,317,304,165 1,124,397,999
Total 617,009,014 550,043,066 551,243,933 4,735,435,390 3,701,247,975 3,351,591,940
             

Remark: .Source of data is from 18 distilleries and 3 breweries

 
Electricity Consumption from overall production lines Cost Saving from solid fuel and C2+

Remark: Source of data is from 18 distilleries and 3 breweries Factory of Electrical Energy 1MWH = 3,600 MJ

Remark: Source of data is from Beer Thai (1991) Public Company Limited which has started implementing since 2012, Beerthip Brewery (1991) Co., Ltd. and Cosmos Brewery (Thailand) Co., Ltd. have started the program in 2014

 

Examples of some of our related projects include:
  • Thermal Hybridization
    ThaiBev has installed thermal hybridization machinery at our factories which enables us to effectively switch between power sources, including heavy fuel oil, biogas from the wastewater treatment, C2+ which needs to be eliminated from the petroleum refining process, and solid fuel in the production process. This pilot project enjoyed tremendous success, resulting in the reduction of heavy fuel oil use by 90 percent.

  • Solid Fuel and C2+ for Boiler Project
    ThaiBev has studied alternative energy and replaced heavy fuel oil with solid fuels and C2+. Through this, in 2012, the Company was able to reduce steam production costs by approximately Baht 100 million per year. The project also helped to improve air quality by reducing the quantity of dust caused by combustion, as illustrated in the graph below.

  • Energy Conservation Project
    We installed the Mechanical Vapor Recompression Evaporation (MVR) at Sura Bangyikhan plant in Pathum Thani. This latest technology helps reduce the use of heavy fuel oil for steam production at 13.5 million liters, equivalent to 615.5 million megajoules of thermal heat. Moreover, it also helps mitigate the impact from gas emission and waste to the communities.

 

Emissions

Given rising global and local concern over climate change and air pollution, here at ThaiBev, we know we have an important role to play in ensuring we manage emissions from our operations as best possible.

Aside from having a clear policy and measures to control pollution and air emissions throughout our product cycle - from upstream to downstream ThaiBev also has a standardized air quality control system of Unied States Environmental Protection Agency (U.S. EPA). This system helps to ensure that any emissions from our facilities that has no negatively impact surrounding communities. In additional, our competence employees are also certified as an air quality control specialists and air quality analysts for both laboratories and pollution and are able to ensure that both treatment and controlling processes comply with standards.

The Company also regularly conducts air quality tests of air released from all stacks of our factories in Spirits Business Group and Beer Business Group. Test results indicated that the volume of particles dust, Oxides of Nitrogen (NOx), and Sulfur dioxide (SO2), emitted by the facilities beyond the required air quality standards as per the regulation limit of the Department of Industrial Works on Prescriptions of the Content Values of Air Contaminants Emitted from the Factory B.E. 2549

Measuring air quality at the stack of a spirits production site Air quality from stack to atmosphere

Air quality management

In addition to our policy ensuring that we conduct business in accordance with law, regulations and ISO 14001 we also actively focus in continous monitoring system by promote in high standard equipments and mechanisms in laboratory to control air quality at the standard. ThaiBev has installed air pollution reduction systems including:

  • Gas Washer to reduce the quantity of Sulphur released in gas and the erosion of the steam generator
  • O2 Trim to control the quantity of oxygen in combustion to ensure complete combustion without releasing excess air
  • Bag Filter and Wet Scrubber to filter dusts, gas and vapor as well as small particles released from the stack of the boilers

According to the assessment of air pollution released from the stack of boilers, the values passed the criteria of the Notification of Department of Industrial Works. This obviously demonstrates the importance ThaiBev puts on ensuring that air quality control is beyond regulatory compliance.

Table: Factory emissions compared to standard values by law and factory air quality values

Average
      2012 2013 2014
Emissions Standard
Values by
the law
Factory
air quality
Values
     
Dust (mg/m3) ≤240 ≤220 184.6 192.42 162.94
Carbon monoxide
(CO)(ppm)
≤690 ≤600 10.52 10.79 58.56
Sulfur dioxide (SO2)(ppm) ≤950 ≤900 640.54 534.23 471.92
           


Nateechai Co.,Ltd in Surat Thaini


Figure: Comparison to legal standard of pollutant in released air
from breweries’s boiler using solid fuel and fuel oil

The Notifcation of the Department of Industrial Works on Prescriptions of the content values of air contaminants emitted from the factory B.E.2549 does not mention CO2 emission from the factory

Table: The cleaner portion of released air beyond regulatory compliance

Measurement Points Level of cleanliness
of released air from the
stacks beyond regulatory
compliance comparing to
the controlled level (time)
Raw materials acquisitions and
pollution control of dusts caused by
raw materials processing
11.6 times
Spent grain drying 12.98 times
Yeast drying 23.5 times
Boller 1.9 times
   

 

Greenhouse gas emission reduction

We're committed to being a leader in reducing greenhouse gas throughout our product cycle by adopting production technology, ensuring the sustainability of both our business and our stakeholders though ensuring we utilise local resources efficiently.

In this connection, we are proudly participating in the Carbon Footprint Project which is Good Practices on Productivity and Continuous Improving to Carbon Label Project, to demonstrate the quantity of carbon emissions along the product cycle - from raw materials acquisition, logistics and distribution, to consumers. Our participation in the Carbon Footprint Project reflects our commitment to transparency by actively participating in global warming reduction and complying with internationally-accepted carbon emission standards.

In 2012, Chang Classic Beer in glass bottles size (640 ml) emitted 523 grams carbon dioxide equivalent and became the first and only beer in Thailand granted a certificate from the Thailand Greenhouse Gas Management Organization (Public Organization), Ministry of Natural Resources and Environment, along with approval to use the product carbon footprint symbol.

Due to our continuous commitment to reducing our Greenhouse gas (GHGs) impacts, in 2014, the 630 ml Chang Classic Beer emitted 499 grams carbon dioxide equivalent. Following recertification, we once again received the product carbon footprint symbol, with carbon emissions per bottle reduced from 2012 when compared at a 630 ml base, which is 3% reduction. This is our key development from 2012 and we aim to continuously reduce our Greenhouse gas.

In addition, ThaiBev adopts the 3Rs Principles: Reduce, Reuse and Recycle to reduce carbon emissions in our business operations.

  • Reduce - for example, reduce the height and thickness of spirit bottle, reduce the weight of brown bottles and reduce the height of whiskey box
  • Reuse - for example, reuse old bottles and reuse used packaging
  • Recycle - for example, re-melt cullet to produce new bottles

The 3Rs Principle helps reduce carbon emissions by approximately 187 millions kgCO2e/y.

We recognise that the fuel we use can impact emissions and, as such, we place a priority on selecting fuels that create the lowest impact possible.

To support this, ThaiBev is currently conducting research and implement in alternative energy availability in Thailand. Our findings indicate that Petroleum Gas (C2+) released from crude oil production has a relatively low environmental impact, and can be used for our steam generation. This is the clean energy alternative source that has been implement to reduce the non-renewable energy source and leverage the industry to minimize negative impact from emission this C2+ as a waste gas to the atmosphere.


Table: Comparison of pollution quantity between Fuel Oil and C2+ 

Emission Fuel Oil C2+
CO2 (%) 10.58 7.98
Dust (mg/m3) 177.82 16.37
NOx (ppm) 176.12 51.49
     

In addition, ThaiBev Energy Co., Ltd. has registered with the Thailand Voluntary Emission Reduction Program (T-VER) of the Thailand Greenhouse Gas Management Organization (Public Organization). As regards Spirits Production, ThaiBev has also registered for the Clean Development Mechanism (CDM) and UNFCC projects during 2015-2020, starting with Kankwan Co., Ltd. and its target to reduce carbon emissions by an average of 74,114 tCO2e/y. Nateechai Co., Ltd. also has a target to reduce carbon emissions by an average of 26,588 tCO2e/y. Fuengfuanant Co., Ltd. has a target to reduce carbon emissions by an average of 30,762 tCO2e/y.

 
As of date 31 december 2014
 
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