September 3, 2007
Heating up | With a new energy czar, Safe Handling turns its green energy efforts up a notch
By Anna Fiorentino
In May, L.L.Bean once again became a leader in consumer trends. The Freeport retailer declined to renew its contract with its catalog paper supplier, Verso Paper, because Verso failed to operate under certified sustainable forestry practices.
The wake-up call left many Maine paper suppliers and transporters scrambling to improve their sustainable energy standards to cater to the rising tide of the eco-conscious. But some Maine transporters already knew the score. Safe Handling, an Auburn company that transports manufacturing materials, figured out more than a decade ago that reducing harm on the environment can also cut costs.
These days, Safe Handling is a leader among Maine's environmentally friendly businesses. The company during the past decade has reduced its carbon emissions, conventionally known as a "carbon footprint," by 78% ˆ eight times the Kyoto Treaty's nine-percent reduction guideline.
Four months ago, Safe Handling co-founder Ford Reiche decided to enlist Andy Meyer to manage his go-green effort. Meyer became Safe Handling's first vice president of business development and green initiatives. "Because we are in growth mode with so many of these efforts, we needed someone who understands technology and the environment, who can be a diplomat outside of Safe Handling," explains Reiche of Meyer. "And within the company, we needed someone who understands the benefits of conserving energy to help with the education process."
It's a corporate trend that Meyer says is gaining steam in Maine. "In the last four months four of our largest customers have also appointed a vice president of sustainability," he says.
Melissa Dimas, international affairs coordinator for the U.S. Environmental Protection Agency, says more companies nationwide are bringing green experts on board. "More private companies are hiring sustainable energy coordinators," says Dimas. "If you just look at lists of jobs, you'll see companies like J.P. Morgan hiring specialists to look at sustainable energy."
In 2001, New England's governors joined with eastern Canadian premiers to sign an agreement to reduce greenhouse gas emissions by 75% to 80% from 2003 levels. Maine became the first state to enact these goals in a climate change action plan called the Governor's Carbon Challenge, which Gov. John Baldacci signed into law in 2003.
The law directs the Maine Department of Environmental Protection to develop agreements with businesses and non-profit organizations to reduce emissions.
Nationally, Safe Handling received the EPA Transportation Partnership's highest rating for carbon reduction, and works closely with the National Biodiesel Board. Meyer himself is a charter member of the EPA's SmartWay Grow & Go, the agency's program to promote the environmental benefits of renewable fuels. "We've reduced our carbon footprint [since 1993] by almost 50,000 tons, which is equal to taking 10,000 cars off the road," says Meyer.
Cutting costs, keeping green
In 1989, Ford Reiche, an environmental consultant; Paul Turina, an attorney; and his father, Howard Reiche, former manager of the defunct Scott Paper's S.D. Warren mill in Westbrook, formed Safe Handling Inc. The company became the only transportation firm east of the Mississippi to cart chemicals to factories through a process known as transloading ˆ moving goods from train to truck and vice-versa. Products arrive via train to Safe Handling, which then offloads them into trucks for the trip to their final Maine destination. "Maine is in the corner of the country and that makes transportation a burden," says Reiche. "I chose this location because it was accessible to the railroad tracks."
And that train service, says Meyer, can help keep costs down while making environmental sense. "It makes every company accessible by train, not just those on the tracks," he says. "And trains are three to four times more fuel efficient than trucks."
The company also attached tri-axle trailers to its trucks, which have cut fuel usage by 25%. Tri-axle trailers have additional wheels, which allow the trailers to carry heavier loads and reduce the number of trucks Safe Handling uses.
Three years ago, Safe Handling became a manufacturer distributor. Previously, the company transported wet materials ˆ used in making everything from gasoline to plastic ˆ to Maine from all over the country. But Reiche noticed 75% of the cargo's weight was from water. He devised a process to convert dry paper mix into wet materials in Maine, so instead of shipping in the heavy wet stuff, Safe Handling moves a lighter, dry mix, which reduces fuel and shipping costs.
In its location next to a set of train tracks off Route 202 in Auburn, Safe Handling's headquarters holds thousands of 1,300-pound white "super sacs" containing a grainy substance used to make paper. Next to those sacs, massive barrels mix water into the dry bulk solution in the warehouse. From there, the chemicals are distributed in the wet form to Maine manufacturers. "We add water, mix the solutions and clean the vaults right here instead of transporting them all the way across the country," says Meyer, who adds that the process can save each customer "hundreds of thousands of dollars a year."
"With Maine being geographically remote, there's a transportation penalty," Reiche explains. "We had used the dry bulk materials on some trial projects since 1997, and the efficiency of doing this satisfied the primary goal of us and our customers, and also cut greenhouse gas emissions and CO2. Transportation is the second largest contributor to greenhouse gases."
Saving clients money is one way to increase business: The company's transportation initiatives, which includes transloading, tri-axle trucks and becoming a manufacturer distributor, has helped the company to grow its client base by 20% annually during the past three years. "We've gotten a new client every six months," says Meyer.
The additional business paved the way for Safe Handling's massive construction project ˆ the Port of Auburn Intermodal Transportation Facility. The multimillion-dollar warehouse and transportation center on 150 acres adjacent to the Maine Intermodal Facility was completed in 2006.
The new warehouse covers 65,000 sq. ft., and includes seven new rail sidings that connect with the St. Lawrence & Atlantic Railroad and the Canadian National Railroad. The $10 million Port of Auburn facility can accommodate 100 rail cars, which Reiche says provides Safe Handling with the space it needs for future growth.
The little things
Meyer introduced another transportation savings project in July, when the company began using biodiesel to operate its trucks.
Biodiesel, a domestic, renewable fuel for diesel engines derived from natural oils like soybean and vegetable oil, can be used in any concentration with petroleum-based diesel fuel in existing diesel engines with little or no modification. Safe Handling is currently using a mixture of 98% diesel fuel and two-percent biofuel in its trucks, and piloting a 20% biodiesel mixture ˆ called B20 ˆ in others. "By using [B20] biodiesel, we'll reduce our carbon footprint by 800 tons, which is equal to taking 100 autos of the road," says Meyer.
The pilot program also is addressing some biodiesel concerns, including that the mixture can dissolve engine gaskets and has a tendency to congeal in cold weather ˆ a distinct issue in Maine. And though biodiesel currently costs nine cents more per gallon than diesel, a Maine tax incentive program subsidizes those purchases for companies like Safe Handling, which can buy biodiesel at the cost of regular fuel.
The biodiesel initiative was one of Meyer's first efforts to satisfy the company's triple bottom line that weighs profitability with the business' environmental and social impact. Safe Handling happens to be one of the primary importers of biodiesel to the state of Maine. Because of that, the company is considering manufacturing biodiesel onsite.
Meanwhile, part of Safe Handling's expansion project is the creation of a study aimed at building a multimillion-dollar forest products biorefinery at the same location.
A biorefinery can turn Maine's wood fiber resources ˆ including paper mill sludge, non-recyclable paper and waste woodchips ˆ into products such as ethanol, methanol and levulinic acid, which is used in solvents and plastics.
"We're talking about the possibility of eventually manufacturing biodiesel right here in our warehouse," says Meyer. "It turns out you can't buy biodiesel directly; we could change that."
Meyer has spoken with the National Biodiesel Accreditation Program, now comprised of only seven producers and marketers, and is researching the feasibility of manufacturing biodiesel. Before even considering launching the program, Meyer will explore the market by speaking with Maine organizations and municipalities that use B20 biodiesel, including Scarborough-based Hannaford Bros. Co., the town of Falmouth and the city of Bangor.
"I spend a lot of my time researching whether it would work," he said. "We're still in the very early stages."
Meanwhile, Meyer says he'll help the company itself run efficiently. From an energy audit Reiche commissioned in 2006, Meyer already has identified a number of cost-cutting opportunities at Safe Handling, from installing high-efficiency lighting to equipping trucks with auxiliary power to avoid guzzling gas while drivers sleep.
But while Meyer scours Safe Handling's 150-acre facility for his newest project, he also recognizes that even the smallest efforts can make an impact. An employee-based program called Green Rewards compensates Safe Handling workers who develop successful energy savings plans. One employee pointed out a light switch in the warehouse on which was affixed a Post-It note that read, "Leave this light on." "It had been on there for years and no one knew why," says Meyer. "But no one ever turned the light off because of it."
Meyers removed the Post-it sticker and the employee received the Green Reward.
"That's something you're not going to get from an energy audit," adds Meyer.
The wake-up call left many Maine paper suppliers and transporters scrambling to improve their sustainable energy standards to cater to the rising tide of the eco-conscious. But some Maine transporters already knew the score. Safe Handling, an Auburn company that transports manufacturing materials, figured out more than a decade ago that reducing harm on the environment can also cut costs.
These days, Safe Handling is a leader among Maine's environmentally friendly businesses. The company during the past decade has reduced its carbon emissions, conventionally known as a "carbon footprint," by 78% ˆ eight times the Kyoto Treaty's nine-percent reduction guideline.
Four months ago, Safe Handling co-founder Ford Reiche decided to enlist Andy Meyer to manage his go-green effort. Meyer became Safe Handling's first vice president of business development and green initiatives. "Because we are in growth mode with so many of these efforts, we needed someone who understands technology and the environment, who can be a diplomat outside of Safe Handling," explains Reiche of Meyer. "And within the company, we needed someone who understands the benefits of conserving energy to help with the education process."
It's a corporate trend that Meyer says is gaining steam in Maine. "In the last four months four of our largest customers have also appointed a vice president of sustainability," he says.
Melissa Dimas, international affairs coordinator for the U.S. Environmental Protection Agency, says more companies nationwide are bringing green experts on board. "More private companies are hiring sustainable energy coordinators," says Dimas. "If you just look at lists of jobs, you'll see companies like J.P. Morgan hiring specialists to look at sustainable energy."
In 2001, New England's governors joined with eastern Canadian premiers to sign an agreement to reduce greenhouse gas emissions by 75% to 80% from 2003 levels. Maine became the first state to enact these goals in a climate change action plan called the Governor's Carbon Challenge, which Gov. John Baldacci signed into law in 2003.
The law directs the Maine Department of Environmental Protection to develop agreements with businesses and non-profit organizations to reduce emissions.
Nationally, Safe Handling received the EPA Transportation Partnership's highest rating for carbon reduction, and works closely with the National Biodiesel Board. Meyer himself is a charter member of the EPA's SmartWay Grow & Go, the agency's program to promote the environmental benefits of renewable fuels. "We've reduced our carbon footprint [since 1993] by almost 50,000 tons, which is equal to taking 10,000 cars off the road," says Meyer.
Cutting costs, keeping green
In 1989, Ford Reiche, an environmental consultant; Paul Turina, an attorney; and his father, Howard Reiche, former manager of the defunct Scott Paper's S.D. Warren mill in Westbrook, formed Safe Handling Inc. The company became the only transportation firm east of the Mississippi to cart chemicals to factories through a process known as transloading ˆ moving goods from train to truck and vice-versa. Products arrive via train to Safe Handling, which then offloads them into trucks for the trip to their final Maine destination. "Maine is in the corner of the country and that makes transportation a burden," says Reiche. "I chose this location because it was accessible to the railroad tracks."
And that train service, says Meyer, can help keep costs down while making environmental sense. "It makes every company accessible by train, not just those on the tracks," he says. "And trains are three to four times more fuel efficient than trucks."
The company also attached tri-axle trailers to its trucks, which have cut fuel usage by 25%. Tri-axle trailers have additional wheels, which allow the trailers to carry heavier loads and reduce the number of trucks Safe Handling uses.
Three years ago, Safe Handling became a manufacturer distributor. Previously, the company transported wet materials ˆ used in making everything from gasoline to plastic ˆ to Maine from all over the country. But Reiche noticed 75% of the cargo's weight was from water. He devised a process to convert dry paper mix into wet materials in Maine, so instead of shipping in the heavy wet stuff, Safe Handling moves a lighter, dry mix, which reduces fuel and shipping costs.
In its location next to a set of train tracks off Route 202 in Auburn, Safe Handling's headquarters holds thousands of 1,300-pound white "super sacs" containing a grainy substance used to make paper. Next to those sacs, massive barrels mix water into the dry bulk solution in the warehouse. From there, the chemicals are distributed in the wet form to Maine manufacturers. "We add water, mix the solutions and clean the vaults right here instead of transporting them all the way across the country," says Meyer, who adds that the process can save each customer "hundreds of thousands of dollars a year."
"With Maine being geographically remote, there's a transportation penalty," Reiche explains. "We had used the dry bulk materials on some trial projects since 1997, and the efficiency of doing this satisfied the primary goal of us and our customers, and also cut greenhouse gas emissions and CO2. Transportation is the second largest contributor to greenhouse gases."
Saving clients money is one way to increase business: The company's transportation initiatives, which includes transloading, tri-axle trucks and becoming a manufacturer distributor, has helped the company to grow its client base by 20% annually during the past three years. "We've gotten a new client every six months," says Meyer.
The additional business paved the way for Safe Handling's massive construction project ˆ the Port of Auburn Intermodal Transportation Facility. The multimillion-dollar warehouse and transportation center on 150 acres adjacent to the Maine Intermodal Facility was completed in 2006.
The new warehouse covers 65,000 sq. ft., and includes seven new rail sidings that connect with the St. Lawrence & Atlantic Railroad and the Canadian National Railroad. The $10 million Port of Auburn facility can accommodate 100 rail cars, which Reiche says provides Safe Handling with the space it needs for future growth.
The little things
Meyer introduced another transportation savings project in July, when the company began using biodiesel to operate its trucks.
Biodiesel, a domestic, renewable fuel for diesel engines derived from natural oils like soybean and vegetable oil, can be used in any concentration with petroleum-based diesel fuel in existing diesel engines with little or no modification. Safe Handling is currently using a mixture of 98% diesel fuel and two-percent biofuel in its trucks, and piloting a 20% biodiesel mixture ˆ called B20 ˆ in others. "By using [B20] biodiesel, we'll reduce our carbon footprint by 800 tons, which is equal to taking 100 autos of the road," says Meyer.
The pilot program also is addressing some biodiesel concerns, including that the mixture can dissolve engine gaskets and has a tendency to congeal in cold weather ˆ a distinct issue in Maine. And though biodiesel currently costs nine cents more per gallon than diesel, a Maine tax incentive program subsidizes those purchases for companies like Safe Handling, which can buy biodiesel at the cost of regular fuel.
The biodiesel initiative was one of Meyer's first efforts to satisfy the company's triple bottom line that weighs profitability with the business' environmental and social impact. Safe Handling happens to be one of the primary importers of biodiesel to the state of Maine. Because of that, the company is considering manufacturing biodiesel onsite.
Meanwhile, part of Safe Handling's expansion project is the creation of a study aimed at building a multimillion-dollar forest products biorefinery at the same location.
A biorefinery can turn Maine's wood fiber resources ˆ including paper mill sludge, non-recyclable paper and waste woodchips ˆ into products such as ethanol, methanol and levulinic acid, which is used in solvents and plastics.
"We're talking about the possibility of eventually manufacturing biodiesel right here in our warehouse," says Meyer. "It turns out you can't buy biodiesel directly; we could change that."
Meyer has spoken with the National Biodiesel Accreditation Program, now comprised of only seven producers and marketers, and is researching the feasibility of manufacturing biodiesel. Before even considering launching the program, Meyer will explore the market by speaking with Maine organizations and municipalities that use B20 biodiesel, including Scarborough-based Hannaford Bros. Co., the town of Falmouth and the city of Bangor.
"I spend a lot of my time researching whether it would work," he said. "We're still in the very early stages."
Meanwhile, Meyer says he'll help the company itself run efficiently. From an energy audit Reiche commissioned in 2006, Meyer already has identified a number of cost-cutting opportunities at Safe Handling, from installing high-efficiency lighting to equipping trucks with auxiliary power to avoid guzzling gas while drivers sleep.
But while Meyer scours Safe Handling's 150-acre facility for his newest project, he also recognizes that even the smallest efforts can make an impact. An employee-based program called Green Rewards compensates Safe Handling workers who develop successful energy savings plans. One employee pointed out a light switch in the warehouse on which was affixed a Post-It note that read, "Leave this light on." "It had been on there for years and no one knew why," says Meyer. "But no one ever turned the light off because of it."
Meyers removed the Post-it sticker and the employee received the Green Reward.
"That's something you're not going to get from an energy audit," adds Meyer.
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