Energy
Renewable Energy
Like most manufacturing facilities in the countries in which we operate, the energy source used by our plants has traditionally come from fossil fuels, particularly bunker oil. Fossil fuels have been the focus of much attention in recent years as they generate greenhouse gas emissions, which have a damaging effect on the environment, thus contributing to global warming. In addition, fossil fuels are non-renewable — and increasingly costly — resources.
Gildan is in the process of finalizing the transition of its steam generation plants from fossil fuels to biomass steam generation in Central America and in the Caribbean Basin. As a first step, in February of 2010, we completed the installation of a biomass system in our Dominican Republic textile manufacturing facility. We are pleased to report that this system is now supplying the vast majority of our steam requirements. Likewise, in Honduras, our two hosiery facilities have been using biomass systems since August and November 2010. We’re particularly excited to announce that a similar biomass system — which will be our largest — is currently under construction and will provide the steam needed to power our three textile facilities in Honduras. This newest addition to our environment-conscious strategy is scheduled to be operational in May 2012.
Once completed and fully ramped up for all five Honduras facilities, annual bunker fuel savings are estimated at approximately 19,000,000 gallons.
In the Dominican Republic, the system substitutes fossil fuel with biomass such as agricultural residues and selected packaging and production leftovers.
In Honduras, the burning biomass consists of a variety of agro-forestry residues – mainly African palm - and non-fossil industrial residues from Gildan’s production processes. Within the next year, cultivated crops harvested from agricultural energy plantations will be mixed with the above, representing roughly 95% of the biomass mixture.
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Key benefits of the Honduras Biomass Systems
- The dedicated energy crops plantations at our textile facilities provide numerous and diversified jobs in urban and rural areas, reducing migration flow to the cities.
- The energy from plantation-grown biomass is considered a carbon neutral process, therefore, it does not contribute to global warming and climate change.
- Biomass crops combustion generates less ash than coal with the advantage that the generated ash can be used as organic soil fertilizer.
- Biomass crops contain very low levels of sulfur.
- Biomass crops are a local source of fuel, independent of fluctuating oil prices. Their use in developing countries greatly reduces economic pressures resulting from oil derivatives and increases the country’s energy autonomy.
- Biomass is a reliable, long-term fuel supply.
- Biomass supports the development of agro-industries for the production of renewable and clean energy.