1. Harnessing the hidden value of by-products to capture carbon credits Bob Carss, Group Environment Manager, VION Food Group Limited Stephen Woodgate, Chief Executive, Food Chain and Biomass Renewables Association

2. Presentation Overview Introduction to Vion Introduction to Fabra The by-products sector Joining forces Summary

3. VION Food Group: Profile International Food Concern € 9.0 billion turnover 27,000 employees Head Office Eindhoven, The Netherlands Core activities Food Ingredients Mission VION wants to anticipate and fulfill customer and consumer needs with high quality and innovative Food and Ingredients Objective VION wants to become a leader in (selected) Food and Ingredients market segments Credo “Passion for Better Food”

4. VION Food NetherlandsVION Food GermanyVION Food UK VION Food InternationalVION Ingredients VION Locations

5. 46 facilities across the UK 14,000 employees (FTE) 70% revenue from retailers Happy Pigs welfare programme #1 in Chicken Agriculture #1 UK meat processor #2 in Pork, Chicken and Beef #1 in Bacon, Lamb and Sausages Cooked Meats Turkey Pizza Other (Agri) 46 facilities across the UK 14,000 employees (FTE) 70% revenue from retailers Happy Pigs welfare programme #1 in Chicken Agriculture #1 UK meat processor #2 in Pork, Chicken and Beef #1 in Bacon, Lamb and Sausages Cooked Meats Turkey Pizza Other (Agri) Profile of VION UK

6. FOODINGREDIENTS Ingredients e.g. fat, proteins, gelatin 6,000 employees Supervisory Board ZLTO / NCB Ontwikkeling ZLTO is a Farmers Union with approximately 18,000 members Fresh pork, beef, poultry, lamb and convenience products 21,000 employees VION Executive Board NL DE UKInt. NLDEBEInt.Rousselot VION Organisational Chart

7. Green Energy Park Ecoson € 20 million investment in sustainable energy

8. Capacity: 8,000 MWh thermal energy 36,000 MWh electricity Electricity consumption per average household is ± 3.5 MWh per year (Source: NIBUD) Digester Water Energy DigestateFlotation sludges Rendac WWT-installation Own use + Rendac Back to electricity grid Raw materialProcessEnd productsApplication Digester

9. Development of green electricity production Key for success: Integration with C1 facilities, permits and subsidy programs Additional investment in 2011 in 2nd post digester and a fourth motor and electricity generator After these investments Ecoson is the Netherlands Nr 1 in green electricity production from Biogas

10. page 10 Current capacity: 50.000 MT De-acidified fat 5 million liters Biodiesel Raw materialProcessEnd productsApplication Refinery Biodiesel installation Animal fat De-acidified fat Fatty Acids Biodiesel Glycerin CHPs/ steam boilers Rendac Truck fleet B100/ B20 Digestation Refinery and Biodiesel

11. VION Summary VION are using current engineering technology to use the by-products of food production for Renewable Energy generation Energy Savings/ Efficiencies/ Climate change benefits In our UK approach we are looking to utilise such products to replace more carbon intensive alternatives. We hope to move this forward through the work we are undertaking with FABRA and Harper Adams by validating the carbon footprint aspects of our products.

12. Introduction to Fabra Fabra members collect, process and utilise more than 2/3rds of the Animal by-Products [ABP] originating in UK. Fabra is committed to maximising the value of ABP by using the best technology operated to the highest standards.

13. Introduction to Fabra

14. Fabra are members of EFPRA (European Fat Processors and Renderers Association) Many of the initiatives discussed are part of EFPRA’s ongoing scientific, technical and promotional work Fabra are members of the WRO ( World Renderers Organisation)... Many of the common themes are adopted by WRO Stephen Woodgate is a member of the EFPRA Executive Board and is currently 2 nd Vice-President of the WRO

15. The origin of animal by-products Animal By-Products Live Animals Fallen Stock Slaughter Hide and Skin Food – meat and edible offal

16. Amounts of Animal By-products Total amount of UK animal by-products ~ 2.25 million tonnes per annum

17. Rendering: Simplified Process Flow diagram Raw material Sizing Drying/Cooking Pressing Cooling Grinding Processed Proteins “MBM” or “PAP” Rendered Fat “Tallow” Centrifuge Decanting

18. Category 3 Processing Systems in Practice By-Product Processing [Rendering] By-Product Processing [Rendering] MBM Rendered Fat PAP Rendered Fat Bio Fuel Category1 Category2

19. A carbon footprint “toolkit” for the rendering industry Angel Ramirez

20. Calculating the carbon footprint Crop growing for feed production Animal husbandry Animal Slaughter- house Animal By-product processing Methane Processed animal protein Rendered animal fats * Meat and bone meal * FertiliserEnergy Land use change Additives FertiliserEnergy Transport fuel Energy * Focus on By-Products

21. The Rendering Process: Boundaries

22. Summary: Rendering Carbon Footprint (so far) What we have learned so far from the Rendering industry study* Engineering aspects: Ability to use Renewable fuels in thermal installations Focus on Energy efficiencies in the process Ability to develop Carbon Credits and gain ROC’s Joining the pieces together...... Joint work with Vion and Harper Adams will consider wider perspectives.... From “day old” chick through to use of Poultry PAP in Aquafeeds: Products: Rendered FatCategory 1Category 3 “Carbon Footprint” kg CO 2 / kg product *Preliminary data: Fuel 25% Natural gas:75% rendered fat - 0.770.15

23. Broiler Poultry Production

24. Feed Milling

25. Slaughter

26. Results of CFP Assessment – Food / Feed Comparison

27. Acknowledgement and Thank you to Angel Ramirez Bob Carss Stephen Woodgate bob.carss@vionfood.combob.carss@vionfood.com swoodgate@fabra.co.ukswoodgate@fabra.co.uk