Gaining your edge

Energy Edge is an initiative of Greenhouse Canada magazine aimed at turning what is a liability for most growers – fluctuating energy costs – into a competitive advantage. With energy accounting for as much as 40 per cent of the operating costs of many greenhouse operations, small and steady improvements on this front can move the needle in a big way on the bottom line. Energy Edge will look at new technologies, innovative projects, case studies of growers finding their own Energy Edge.

You can read about it in each issue of Greenhouse Canada, but we’ve also created this dedicated microsite. Here you can find regular news items on the subject, new technology and products, video, and in-depth archives on the subject.

We’ll also produce a bi-weekly enewsletter to keep you up to speed on what we’re covering. It is free to all Greenhouse Canada digital subscribers. You can sign up for it here.

If you want to add to the conversation, please drop us a line and let us know about your project, technology, services, or concerns at energyedge@annexweb.com.

Greenhouse survey shows heat and hydro are cost killers

Saturday, 14 April 2012
Rising heating costs have made biomass a growing option, but low natural gas prices and concerns over electricty rates may now make CHP a growth sector too. Rising heating costs have made biomass a growing option, but low natural gas prices and concerns over electricty rates may now make CHP a growth sector too.
Greenhouse Canada's 2012 survey asked growers a host of questions, from crops to pests. We also asked which input costs rose the most in recent years, as well as what they were using for primary heating fuels. The results may surprise you, but probably not.


WHICH INPUT COST ROSE THE MOST IN 2011 COMPARED TO 2010?
No surprises here. It’s been heating, with 26 per cent of respondents pointing fingers to this major costs centre. Not far behind though is electricity, with 17 per cent of respondents saying this continues to be a cost concern, and obviously one they need to get a better grip on.

Labour was tied for first spot with heating. Other rising costs include pots and trays (nine per cent), marketing/sales (five per cent), containers/labels (four per cent), plant material (three per cent), and taxes (property, payroll, environmental, permits, etc.) gaining three per cent of the votes.

Other inputs receiving votes were growing media (two per cent), biocontrols (two per cent), chemicals (one per cent), and fertilizer (one per cent). Among write-in inputs were delivery costs, which makes sense given rising transportation fuel costs, and the initial cost of the greenhouse and getting started.


NO SURPRISES IN SURVEY ON PRIMARY HEATING FUELS
Again, no surprise here. Natural gas (50 per cent) has been the industry choice of fuels for many years. Oil weighs in at number two (14 per cent). But the fuels to watch for, as they gain market share in the future, are wood (10 per cent) and renewable fuels (biomass, geothermal, biogas, etc.), also at 10 per cent.

It will be interesting to see the response to this question in about five years, when we expect wood and renewables each to have about doubled from current market share. We’ve been enjoying unusually low natural gas prices for the past few years, but history suggests it will soon start trending upwards. Enjoy the relatively low prices while you can!

The wildcard here of course is the relative spread between electricity and natural gas pricing, which may be a driver for more CHP projects, as growers increasingly become power suppliers.

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