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Walmart and General Mills build a sustainable food supply

Walmart and General Mills build a sustainable food supply
Working as partners in regenerative agriculture projects, Walmart and General Mills are working with authorities to create a more sustainable food system

Disruption of the food supply chain is perhaps the single most impactful event that can have detrimental effects globally. Also, the emissions that are produced as a result of the global food supply are just as impactful to our future and the shortage of food itself.

According to 2018 data from the United States Department of Agriculture (USDA) meat, eggs and nuts are the primary sources of food across the states while vegetables are the third largest and fruit is at the bottom. However, from what we’ve seen over recent years, many would suggest the meat supply chain accounts for a large proportion of the industry’s emissions and is therefore unsustainable in its current mass-production form.

Now, this is not to blame the humble cow or any other animal for climate change, but more the processes in which meat is reared and distributed across the US. With certain regenerative principles in place—and the support from the public to reduce consumption—farms are known to provide higher quality goods that are nutritionally beneficial.

How does regenerative agriculture support a sustainable food system?

This is neither a slight of common habits, nor a simple task to conduct. In order to make the food system sustainable economically, consistent, and less impactful to the climate, examples of regenerative agriculture show the impacts of more mindful farming.

On the 17th October 2023, General Mills and Walmart announced a joint effort that will likely spark further consideration as the organisations advance regenerative agriculture across 600,000 acres of US soil by 2030. This project is about reducing the emissions and resource-drain from farming, improving soil health and, in turn, product quality.

The primary projects will be supported through grant funding from the National Fish and Wildlife Foundation (NFWF) and will reshape the process for growing crops like wheat across the Northern and Southern Great Plains.

Based on the research from the USDA, grains are the second most-consumed foods in the country after the meat, eggs, and nuts group.

These two corporations will also collaborate with Sam’s Club, a division of Walmart that offers superior quality and pricing for millions of items supplied to the US and Puerto Rico.

“Through this partnership, we will work hand-in-hand with Walmart and Sam’s Club to help regenerate the acres of land in the key regions where we source ingredients for our shared business,” says Jon Nudi, Group President, North America Retail at General Mills.

“We are excited by the opportunity to bring our products, including Pillsbury refrigerated dough and Blue Buffalo pet food and treats, to Walmart shelves more sustainably, with the help of our merchants and farmer partners.”

The three organisations believe that regenerative agriculture holds the key to emissions reduction in the supply chain and tackles many of the challenges within the modern food system. They also recognise their collective footprint and overall impact on the industry, and therefore will set the benchmark for regenerative agriculture implementation in the wider industry.

Walmart’s and General Mills’ sustainability alignment

Both organisations are impacted by the fate of the planet. As influential businesses in the food supply chain—Walmart operating across many facets of consumer goods—sustainability is now at the core of their future projects. Walmart’s net-zero emissions target is set for 2040 and will be driven by a number of investments into clean energy, providing 100% renewables to its facilities by 2035. The path to net-zero in Scope 3 requires further action to support its partners, suppliers, and customers to deliver on their own emissions targets.

When it comes to securing the food supply chain, Walmart dedicates much of its support to preserving land for regenerative projects and in investing deforestation-free product sourcing, which was recognised as one of the key downfalls of the meat supply chain—limited space resulting in deforestation.

“We’re committing to making the everyday choice the more sustainable choice for consumers,” says John Laney, Executive Vice President, Food at Walmart US.

“This collaboration is an example of how we are working across our value chain on intentional interventions to help advance regenerative agriculture and ensure surety of supply for these essential food products for the long term.”

As a key supplier of food globally, General Mills owns some of the much-loved brands and will continue to ensure that these products are delivered at lower impact to the planet. Also focusing on regenerative agriculture, energy sourcing and packaging innovation will also allow the company to drive healthier approaches in the food supply chain.

 

 


 

 

Source   Sustainability

Hydrogen’s potential in the net-zero transition

Hydrogen’s potential in the net-zero transition

Hydrogen as a climate solution is generating a lot of excitement right now. Approximately $10 billion worth of hydrogen projects are being announced each month, based on activity over the past six months. Policy packages such as the recent Inflation Reduction Act in the United States and the Green Deal Industrial Plan in Europe support hydrogen production and use. According to McKinsey research, demand is projected to grow four- to sixfold by 2050. Hydrogen has the potential to cut annual global emission2050s by up to 20 percent by 2050.

Today, most hydrogen is produced with fossil fuels. This type is commonly known as grey hydrogen, which is used mostly for oil and gas refining and ammonia production as an input to fertilizer. To maximize hydrogen’s potential as a decarbonization tool, clean hydrogen production must be scaled up. One variety of clean hydrogen is known as green hydrogen, which can be made with renewables instead of fossil fuels. Another variety, often called blue hydrogen, can be produced with fossil fuels combined with measures to significantly lower emissions, such as carbon capture, utilization, and storage. Clean hydrogen has the potential to decarbonize industries including aviation, fertilizer, long-haul trucking, maritime shipping, refining, and steel.

Total planned production for clean hydrogen by 2030 stands at 38 million metric tons annually—a figure that has more than quadrupled since 2020—but there is a long way to go to meet future demand. According to McKinsey analysis, demand for clean hydrogen could grow to between 400 million and 600 million metric tons a year by 2050.

To scale clean hydrogen, three things must happen. First, production costs need to come down so that hydrogen can compete on price with other fuels. One way to keep costs down is by producing hydrogen in locations with abundant, cheaper renewable energy—where the wind blows or the sun shines. While renewables development has accelerated in recent years, a lack of available land could become an issue for the deployment of renewables and could limit location options for green-hydrogen producers. Constructing plants for both renewable generation and green-hydrogen production has become more expensive recently because of increased material and labor costs and constrained supply chains.

“Approximately $10 billion worth of hydrogen projects are being announced each month, based on activity over the past six months.”

Second, building up infrastructure, particularly for transportation of hydrogen, will be key. The most efficient way to transport hydrogen is through pipelines, but these largely need to be built or repurposed from current gas infrastructure. Investment is critical in this and other areas across the value chain, including electrolyzer capacity (electrolyzers use electricity to produce green hydrogen) and hydrogen refueling stations for hydrogen-powered trucks.

Third, more investments will be needed to help advance this solution. Our work with the Hydrogen Council, a CEO-led group with members from more than 140 companies, has shown that achieving a pathway to net zero would require $700 billion in investments by 2030. Despite the recent momentum, McKinsey research last year showed a $460 billion investment gap. Additionally, many announced projects still need to clear key hurdles before they can scale. Producers of clean hydrogen, for example, are looking to address the commercial side of investment risk by solidifying future demand, often in the form of purchase agreements.

A set of actions can help accelerate the hydrogen opportunity, to realize its decarbonization potential and the growth opportunity for businesses. Progress will likely require collaboration among policy makers, industries, and investors. Policy makers can continue supporting the hydrogen economy through measures such as production tax credits or by setting uptake targets. These actions should help boost private investors’ confidence in the future markets for hydrogen and hydrogen-based products. Industry can increase capacities, such as by ramping up production of electrolyzers, and build partnerships through the value chain. Investors can help industry by structuring and financing new ventures, as well as by developing standards for how hydrogen projects can be assessed and how risks can be managed.

As the energy transition unfolds, hydrogen will increasingly be a consideration for both businesses and governments. While the challenges to scaling hydrogen are real, so are the opportunities.

 

 


 

 

By  Markus Wilthaner

Source  McKinsey & Company

 

‘Just a new fossil fuel industry’: Australia to send first shipment of liquefied hydrogen to Japan

‘Just a new fossil fuel industry’: Australia to send first shipment of liquefied hydrogen to Japan

Australia will export its first load of liquefied hydrogen made from coal in an engineering milestone which researchers say could also lock in a new fossil fuel industry and increase the country’s carbon emissions.

Under the $500m Hydrogen Energy Supply Chain (HESC) pilot project, hydrogen will be made in Victoria’s LaTrobe valley from brown coal and transported aboard a purpose-built ship to Japan, where it will be burned in coal-fired power plants.

Carbon capture and storage will be used in an attempt to reduce the carbon emissions associated with making the hydrogen and supercooling the gas until it forms a liquid before it is loaded aboard the Suiso Frontier vessel. The first shipment is due to depart from Hastings in the coming days.

The project is being led by a Japanese-Australian consortium including Japan’s J-Power, Kawasaki Heavy Industries, Shell and AGL.

The prime minister, Scott Morrison, said on Friday the development was a “world-first that would make Australia a global leader” in the budding industry.

“A successful Australian hydrogen industry means lower emissions, greater energy production and more local jobs,” Morrison said in a statement.

“The HESC project puts Australia at the forefront of the global energy transition to lower emissions through clean hydrogen, which is a fuel of the future.”

Morrison also announced an additional $7.5m to support the next stage of the project, which has a goal of producing 225,000 tonnes of carbon-neutral hydrogen each year and an additional $20m towards the next stage of the CarbonNet project which aims to produce commercial-scale carbon capture and storage.

According to government estimates, this will reduce emissions by 1.8m tonnes a year.

But Tim Baxter, a senior researcher for climate solutions at the Climate Council, said the assumptions were questionable as the reliance on “fossil hydrogen” meant government needed to “come back with a zero emissions hydrogen plan”.

“Hydrogen derived from fossil fuel sources, like what is being shipped out of the LaTrobe Valley, which is derived from some of the world’s dirtiest coal, is really just a new fossil fuel industry,” Baxter said.

“Fossil hydrogen is a whole new fossil fuel industry, regardless of whether carbon capture and storage is attached to it. It results in extraordinary greenhouse gas emissions. It’s not a climate solution.”

Though “clean hydrogen” has become central to the government’s emissions reductions plans, hydrogen produced by fossil fuels is more expensive, will release more greenhouse gas emissions and comes with greater risk of creating stranded assets.

 

Dr Fiona Beck, an engineer with the ANU Institute for Climate, Energy and Disaster Solutions, said Friday’s announcement did mark an engineering milestone as it showed it was technically possible to liquefy and store hydrogen for transport, as this was more difficult to do than with LNG.

However, Beck, a co-author of a recent peer-reviewed paper published in the Journal of Cleaner Production that examined the emissions that will be created out of the proposed Japanese-Australia hydrogen supply chain, said if hydrogen made with fossil fuels became the norm, Japan would be transferring its emissions to Australia.

Japan, which has limited options for onshore wind projects, has been looking for ways to reduce its CO2 emissions. One way is by burning ammonia, which is made with hydrogen, in its coal-fired power plants – which are also powered with Australian coal.

Under current CO2 accounting standards by which emissions are measured, Japan would slash its emissions while shifting them across to Australia owing to the CO2 emissions involved in creating, processing, transporting and shipping the hydrogen.

“If you’re importing hydrogen made from coal, essentially the emissions are going to be worse in Australia rather than it would be by just taking that coal and burning it in Japan,” Beck said.

“There’s no policy pressure or economic reason why Japan would buy low-emissions hydrogen when it gets the same benefit by buying cheap, high-emissions hydrogen.”

Beck said that while current government planning stated its intention to reduce emissions associated with creating hydrogen “there’s very few actual mechanisms to do this”.

“Unless Australia has some strong policy to keep its carbon emissions down, we could see a rise in emissions in Australia due to this hydrogen trade.”

 


 

Source The Guardian