Wine Industry Challenges RG (1)

Copyright Ó 2016 Renewably Green LLC Page 1 of 18
Wine Industry Challenges Handling Raw Materials
After Grapes Are Crushed
Commissioned by Renewably Green LLC
Written by Willie Wiedenmann
Summary
The wine industry is a leader in sustainable farming and production
practices. As a result, the wineries continually generate large amounts of
organic waste. This organic waste/raw material remaining after wine grapes
have been crushed is called pomace. Pomace consists of the leftover skins,
seeds, stems and pulp. The primary problem is that as the wine industry
grows, so does the volume of pomace. Currently, the United States grows
over four million tons of wine grapes each year. Pomace accounts for 20-
30% of the original grape weight and for every four to five tons of wine
grapes, approximately one ton of pomace is produced.
Wineries utilize a variety of practices to make use of pomace, including:
• using pomace as an additive to animal feed
• returning it to the fields
• composting
• distilling
Although these practices are more ecologically and economically efficient
than sending pomace to landfills, they each have their inefficiencies. When
using pomace as animal feed, wet pomace cannot efficiently be used in
feedlots due to its poor nutrient levels, fast levels of deterioration, and
seasonal production. However, there are benefits to using dried pomace as
additive to feed. Returning pomace to the fields as a fertilizer is inefficient
due to the threat of adding pathogens to the soils, damaging roots and vines,
and altering the pH of the soil.
In regards to composting, although composting has the potential to reduce
harmful greenhouse gas (GHG) emissions, it is a lengthy inefficient process
that is land intensive and has the potential to contaminate precious ground
water, producing offensive odors. Fermentation and distillation are
primarily used in certain European nations to produce grappa; however, it is
not the most efficient use of pomace due to inconsistencies with the final
product, leftover raw materials and the production of residual sugar and
alcohol.

The European Union and California are pioneering ways to reduce GHGs
while promoting efficient uses of energy and raw materials. This includes
the European “End of Waste” (EoW) concept. The overall aim of this concept
is to further encourage recycling of products ranging from scrap metal to
agriculture in the EU. Examples of waste prevention measures taken in
member states include economic instruments, such as specific taxes and a
comprehensive cap-and-trade system.
In California, Assembly Bill (AB) 32 requires the state to reduce its GHG
emissions to 1990 levels by 2020 in order to mitigate risks associated with
climate change. This can be achieved by improving energy efficiency,
expanding the use of renewable energy resources and reducing raw material
waste. Recently in 2016, Governor Jerry Brown of California signed
executive order B-30-15 calling for a 40% reduction of GHGs by 2030.
The California cap-and-trade program is also covered under AB 32 and is
seconded in size only to the European cap-and-trade program. In California,
businesses are able to buy permits for carbon credits and offsets to pollute
in quarterly auctions. Carbon credits have the potential to be the next form
of currency in the economy. Renewably Green LLC has the potential to
capture a large amount of carbon credits as currency for the benefit of the
wine industry.
Renewably Green provides a solution to the pomace problem based on
forward thinking and efficient processing of raw materials. While utilizing
the remaining 20%-30% of the grape weight after they are crushed,
Renewably Green makes products such as healthy grape seed oil and gluten
free flour for the artisan culinary arts. At this stage, there is potential for
grappa, particleboard and other vine-fiber based products. The final step to
the solution of “Zero Waste” is the pressing of carbon neutral pellets for
retail outdoor grilling, as well as carbon neutral pellets and pressed logs for
home heating and commercial energy production.
There is a current market demand for Renewably Green products. Similar to
the EoW concept, Renewably Green develops engineered processes to
prevent resources from being sent to landfills. The success and direction of
AB 32 bodes wells for Renewably Green. With California transitioning to a
low-carbon and clean energy economy, Renewably Green provides
innovated strategies to increase the utilization of raw materials for the wine
industry. This reduces the amount of agricultural GHGs produced in landfills
while providing products for an evolving green economy.

The Problem:
The Wine Industry faces challenges handling raw materials
after the grapes are crushed.
The wine industry is a leader in sustainable farming and production
practices. In the wine making process, the wineries continually produce
large amounts of organic waste. According to the U.S. Department of
Agriculture, the United States “creates a tremendous amount of waste from
processing more than 4 million tons of grapes” each year, mostly in the
Pacific Northwest and California.1 The organic raw material left over from
wine production is pomace. Pomace consists of the skins, seeds and stems
left after the grapes are pressed and crushed.
The primary problem is that as the wine industry grows, so does the amount
of pomace and other organic waste. Increasing amounts of pomace is being
sent to landfills, which contributes to a wide spectrum of environmental
concerns and the creation of greenhouse gas (GHG) emissions. Many studies
have determined pomace to be approximately 20%-30% of the original
grape weight.2 To put this in other terms, studies conducted by both UC
Davis and UC Berkeley, found that California produces in excess of one
million tons of grape pomace annually, which translates to about 1 ton of
pomace for every four to five tons of grapes that are crushed.3 This
remaining 20%-30% of the grape still contains valuable raw materials such
as the seeds, skin, and sugar that remain to be exploited.
Renewably Green believes that each vineyard that allows this precious
pomace to not realize its second harvest misses an Earth friendly
opportunity that contributes to California’s GHG reduction goals, while
creating new foods, products, and new jobs.

1 “Turning Wine Waste into Profit”, Daniel Robinson, Oregon State University, 2013
2 “The Market Potential of Grape Waste Alternatives”, Kyle Dwyer, Farah Hosseinian and
Michel Rod, Journal of Food Research; Vol. 3 No. 2; 2014
3 “Valorization of Grape Pomace”, Chris Somerville, UC Berkeley

Renewably Green Solution
Renewably Green utilizes the remaining 20%-30% of the grapes to make
products such as healthily grape seed oil and gluten free flour for the artisan
culinary arts. Oils and flour produced from grape seeds retain the nutritional
value and flavor of the cultivated grape.
Additionally, there is potential for creating grappa, particle board and other
vine fiber based products. Grappa is produced from the pomace. Particle
board would be made from vineyard trimmings and old rootstalk.
The final step to the solution of “Zero Waste” is the pressing of carbon
neutral pellets for retail outdoor grilling, as well as carbon neutral pellets
and pressed logs for home heating and commercial energy production.
Carbon neutral is defined as having achieved a state in which the net amount
of carbon dioxide or other carbon compounds emitted into the atmosphere
is reduced to zero because it is balanced by actions to reduce or offset these
emissions. Because the grape vines absorb CO2, the release of CO2 by these
final stage products are carbon neutral.
Renewably Green utilizes grapes After The Crush™, which standardizes the
back end of the wine industry and brings it a big step closer toward “Zero
Waste”.
Imagine enjoying a glass of wine, salad and dipping oils with tasty gluten
free breads in front of a warm aromatic fire all from the same grape. This is
the mission of Renewably Green.
Important Terms
Pomace is a raw material that remains after the grapes are crushed and the
juice is pressed out. This fresh raw material consists of skins, seeds and a
small percentage of stems. Although the exact concentrations of these
materials vary between different types of grapes, pomace generally consists
of about 8% seeds, 10% stems, 25% skins and 57% pulp.4 Most of the
potentially useful raw materials in grapes remain in the pomace.
Raw material is a broad term that defines any natural material or substance
before being processed or manufactured into a final form. In the case of wine
making, raw materials include the grape, pulp, juices, sugars, acids, tannins,
and minerals. Pomace is a raw material because it is a natural product that

4 “Notes on Composting Grape Pomace”, Fritz Westover- Viticulture Research Extension
Associate at Virginia Tech, 2006

can be further processed and more valuable substances can be extracted
from it. Raw materials are different than natural resources. Natural
resources are substances that exist without the actions of humans whereas
raw materials are extracted and processed to add value.
Leaching is the loss of soluble substances from the top layer of soil by
precipitation and water accumulation in the soil. The rate of leaching
increases with the amount of rainfall, high temperatures, and the removal of
protective vegetation. Leaching in the wine industry is a problem because
fertilizers and pesticides can seep through the moist porous soil and
contaminate the water table. (See section on composting.)
Grappa is a term to describe alcoholic spirits made from pomace. It is
primarily produced in Italy and parts of Switzerland. Grappa involves the
fermentation and distillation of the sediment left after pressing grapes to
make wine. In other countries and regions, grappa is also called “marc” or
“grape marc”. Grappa distillation is a rather complex and expensive process,
which explains why Italians produce it in smaller quantities while focusing
on quality. The process of producing grappa from pomace demonstrates a
partial solution to the problem of left over raw materials. In addition to
producing supplemental baking flour, particleboard and other products,
Renewably Green plans to include the distillation process. Grappa
production with the other Renewably Green manufacturing processes will
essentially solve the problem of residual pomace. (See section on distillation
and fermentation.)
Tannin is a naturally occurring polyphenol found in plants, seeds, bark,
wood, leaves and fruit skins. Roughly 50% of the dry weight of plant leaves
is tannin. Specifically, in grapes, tannin comes from the skin, seeds and
stems. Tannins are more commonly found in red wine; however, white
wines have tannin from being aged in wooden barrels. Tannins add
bitterness, astringency and complexity to wine. In addition, in small doses
tannins can be beneficial to human health. Tannins contain antioxidants,
which protect humans from various heart diseases and prevent cellular
damage. Baking flour made from grapes and pomace can be added to foods,
which would add nutritional value to culinary creations.
Cap and Trade System as defined by the Center for Climate and Energy
Solutions sets an overall limit on emissions, requires entities subject to the
system to hold sufficient allowances to cover their emissions, and provides
broad flexibility in the means of compliance. Entities can comply by
undertaking emission reduction projects at their covered facilities and/or by
purchasing emission allowance credits from the government. They can also
purchase offsets from other entities that have generated emission reduction
in excess of their compliance obligations.

Greenhouse Gas (GHG) emissions include a wide variety of gases that trap
heat near the Earth’s surface, slowing its escape into space. GHG include
carbon dioxide, methane, nitrous oxide, water vapor and other gases. While
greenhouse gases occur naturally in the atmosphere, human activities also
result in additional greenhouse gas emissions. Carbon dioxide, methane, and
nitrous oxide are some of the agricultural GHGs that are of particular
concern to cap-and-trade systems.
Current Winery Practices for Handling Waste
Wineries utilize a variety of practices to make use of pomace besides
sending it to landfills. Many popular practices include distributing pomace to
ranchers for feedlots, returning it to the fields, composting and distilling.
Although these practices are more ecologically and economically efficient
than sending pomace to landfills, they each have their inefficiencies.
1. Pomace used in Feedlots
A popular method of utilizing pomace is feeding it to livestock. According to
certain studies, unlike many other agricultural byproducts, winery waste
isn’t ideal animal feed because it is difficult for livestock to digest.5 Typical
animal feed consists of dry matter, protein, ether extract, minerals, vitamins,
and crude/acidic detergent fiber. Pomace contains 35% dry matter, 11%
crude protein, 6% lipids, and 5% tannins. The tannin contents in the pomace
“decreases the utilization of protein” and thus diminishes the overall
nutritional value for cows.6 In addition, alfalfa hay is nearly 70% digestible,
but grape pomace is closer to 30% digestible. Cattle will eat pomace but it is
just bulk; they require more total food when pomace is mixed into their
rations.7
In addition to the low nutritional value and poor digestibility of pomace for
livestock, it is impractical and uneconomical to use as feed on a large scale.
It isn’t practical for commercial animal-raising operations because pomace is
very much a seasonal product with tons produced during a few short weeks
in the fall and nearly none produced the rest of the year. More importantly,
wet pomace quickly deteriorates. A study in the Animal Science, Food
Science and Human Nutrition Departments of Gainesville College concluded

5 “Pomace to Pours, Preservatives, and Power Dealing with Winery Waste”, Erika Szymaski
PhD, 2012
6 “Acceptability of Grape Winery Pomace as a Cattle Feed”, J.F Hentges, R.P. Bates and J.G.
Wasdin, Animal Science and Food Science and Human Nutrition Departments, Gainesville
7 See footnote 6

that cows would reject wet pomace 12 hours after being in the feeder.8 In
this study, the pomace was freshly harvested near the livestock and given to
the cows soon after its production. The 12-hour figure does not include the
short time it took to transport the pomace; however, the quick deterioration
of wet pomace demonstrates how it is not an economically sound way to
produce feed. From a practical viewpoint, wet pomace must be removed
immediately to prevent the breeding of flies and vinegar bacteria. The
livestock would have to be located close to the winery to minimize hauling,
labor costs and deterioration. In addition, stockpiling wet pomace for
feeding would be very costly due to the high cost of preservatives and labor.
Although wet pomace has lower nutritional levels and deteriorates rapidly,
dried pomace can be a slightly more nutritional feed that deteriorates much
slower. A study in the journal of Animal and Plant Sciences found that
adding small doses of dried grape pomace to feed can help fatten lambs
without negative side effects.9 Specifically, adding dried grape pomace at
“5%-10% of diet could be useful in fattening male lambs with a slight
positive effect on growth performances.”
Renewably Green has also identified a potential market for dried pomace as
feed for chickens in Mexico. An Agricultural Sciences study has found that a
1%-2% addition of dried grape pomace in broiler chicken feed is beneficial,
with a slight positive influence on the growth performances.10 This indicates
that dried grape pomace can be an efficient additive to chicken feed.
Furthermore, wet pomace cannot efficiently be used in feedlots due to its
poor nutrient levels, speed of deterioration, and seasonal production;
however, there are benefits to using dried pomace as additive to feed.
Renewably Green acknowledges these issues, and solves the problem with
better and more efficient solutions.

8 “Acceptability of Grape Winery Pomace as a Cattle Feed”, J.F Hentges, R.P. Bates and J.G.
Wasdin, Animal Science and Food Science and Human Nutrition Departments, Gainesville
9 “Effect of diet with varying level of dried grape pomace on dry matter digestibility and
growth performance in male lambs”, Yadollah Bahrami etal., Journal of Animal and Plant
Sciences, 2010
10 “The Grape Pomace Influence on the Broiler Chickens Growing Rate”, Silvia Mariana
Pascariu, University of Agricultural Sciences and Veterinary Medicine, Iasi

2. Pomace as Fertilizers: Returned to the Fields
Another common practice used by wineries to manage their pomace and
other organic materials is returning the pomace to the fields to be used as a
fertilizer. However, many studies including one from the journal of
Horticulture, Forestry and Biotechnology found that grape pomace couldn’t
be added directly back to the vineyards because of pathogens.11 Although
there are no known human pathogens that can grow in wine, there are a
number of spoilage bacteria and yeast that can adversely affect a wine’s
flavor as a result of the health of the soil and vines including acetobacter,
lactobacillus, pedicoccus and brettanomyces.12
In order to transform grape pomace into a valuable fertilizer, it must be
composted. This process is also inefficient due to the high acidity of pomace.
Particles such as slaked lime are necessary to mix with the pomace to reduce
the acidity. Composting can be difficult and time-consuming due to the slow
rate of grape decomposition. For composting to be successful, there is a need
for optimal temperature, humidity, aeration and pH.
In spite of some advantages using composted pomace as a fertilizer, over a
long period of time it can damage the soil through accumulation of metal. A
study found that a high level of metal in grape pomace is the limiting factor
for its application in agriculture as a fertilizer.13 Specifically, overtime
pomace can damage soil by altering its pH. High levels of metal alter the pH
of the soil, making it more difficult for wineries to keep a consistent pH in
wine making.
Furthermore, returning pomace to the fields as a fertilizer is inefficient due
to the threat of adding pathogens to the soils, damaging roots and vines, and
the high levels of metal in grape pomace after composting. Renewably Green
acknowledges this issue, and solves the problem with better and more
efficient solutions.

11 “Grape Pomace as Fertilizer”, Nistor Eleonora, Debrer Alina etal, Journal of Horticulture,
Forestry and Biotechnology, Vol. 18, 2014
12 “Winemaking”, Practical Winery and Vineyard Journal, 2009
13 See footnote 9

3. Pomace Used in Composting
Another common practice that wineries currently use to manage their
pomace and other organic materials is composting. For many individuals,
composting may seem like an obvious solution. According to CalRecycle,
composition curbs the need for chemical fertilizers and pesticides and can
produce higher yields of agricultural crops by enriching the soil.14 In
addition, CalRecycle claims that “compost may also significantly reduce the
amount of harmful greenhouse gases”.
Although composting may seem like a good solution for utilizing pomace and
other organic materials, it is not without its downfalls. Pomace alone
composts slowly and takes anywhere between 6-10 months depending on a
wide variety of conditions including turning frequency, moisture, and the
temperature of the pile. In addition, pomace has a low pH (3.5-3.8) where
compost microbes prefer a pH of 6.2 or higher to become active.15 Thus, lime
or other feedstocks must be added to pomace in order to increase its pH.
Another problem is that grape pomace is packed with phenols and other
antimicrobial compounds which inhibit bacterial decomposition.16 This
means that extra attention has to be placed on getting a winery compost pile
started, adding unneeded hassle and inefficiencies. According to CalRecycle,
composting unprocessed raw materials can also lead to the potential
leaching of ground water and environmentally sensitive watersheds. This
happens when more water is saturated in the soil than the vines can utilize.
Leaching is an environmental concern because fertilizers and pesticides can
seep through the moist porous soil and contaminate the water table.
Another negative aspect of composting is that the process requires large
expanses of land. Large scale organic materials composting sites not only
require land for compost piles, but also screening areas for the materials,
staging areas, facilities to hold the final products, and a buffer zone.17 Even
with large buffer zones, composting sites have also been known to produce
offensive odors to surrounding areas.

14 “State Gets Dirty to Promote Benefits of Compost: Grape pomace composted for use on
Napa vineyards”, CalRecycle, 2007
15 “Notes on Composting Grape Pomace”, Fritz Westover- Viticulture Research Extension
Associate at Virginia Tech, 2006
PhD, 2012
17 “Large-Scale Organic Materials Composting”, Rhonda Sherman, Extension Waste
Management Specialist, North Carolina State University

Furthermore, although composting has the potential to reduce harmful
greenhouse gases, it is a lengthy inefficient process that is land intensive and
has the potential to contaminate precious ground water while producing
offensive odors. Renewably Green acknowledges this issue, and solves the
problem with better and more efficient solutions.
Fast Facts About Composting Grape Pomace18

• Four to Five tons of grapes will yield about one ton of pomace.

• Pomace is made up of about 8 percent seeds, 10 percent stems, 25
percent skins, and 57 percent pulp.

• Pomace is rich in nitrogen, potassium, and calcium.

• High lignin in seeds limits decomposition in unturned piles.

• Feedstock added to pomace should have a calcium-to-nitrogen ratio
appropriate for composting of 1:20 to 1:30.

• Piles with greater than 60 percent moisture may continue to ferment
and produce acetic acid.

• Composting can be a six- to ten-month process, depending on turning
frequency, moisture, and temperature of piles or windrows.

18 “Turning Pomace into Compost”, Melissa Hansen, Good Fruit Grower, 2015

Distillation and Fermentation: Grappa Production
A very traditional way for handling pomace, especially in Europe, is sending
it to distilleries to produce alcoholic spirits such as grappa. Grappa is a term
that describes alcoholic spirits made from pomace and produced in Italy and
parts of Switzerland. Grappa distillation is a rather complex and expensive
process, which explains why Italians produce it in smaller quantities while
focusing on quality.
During the production of grappa, the first and most important step is the
proper storage of pomace. It must be stored in an airtight container to stop
the fermentation process, and it must be kept fresh, moist and free of mold.
The basic principle of grappa production is the conversion of fruit sugar into
high percentage alcohol in two major steps: (1) pressing and fermentation
and (2) distillation. The pomace is heated until it gives off steam, which is
then captured, cooled and condensed into liquid. It is a risky and somewhat
dangerous process because highly volatile substances such as methyl
alcohol, ethyl esters of acetic acid, and acetaldehyde are produced.
Distilleries have to pay close attention to the temperature during the
distillation process.19 Whereas poisonous gases can be produced at lower
temperatures, the purest alcohol and aromatic substances are produced as
steam at medium temperatures.
Although grappa originally emerged as a poor man’s drink in Europe, it has
slowly gained a better reputation. However, a problem with consistency
arises with grappa production. Primarily, a study by the Cornell College of
Agriculture and Life Sciences found that “there is no particular magic to the
distillation process that creates wonderful flavors.”20 The flavor of the
grappa is more relative to the pomace than the distillation process. Recall
that there are many variables in pomace production such as temperature,
climate, humidity and rate of decomposition. Thus, the final grappa product
is difficult to standardize.
Another inefficiency is present in the distillation process. This process is
very difficult because pomace is relatively dry and tends to burn, making it
difficult to clean distillation equipment.21 In addition, the taste of the
distillate can spoil. New technologies to heat the pomace, such as water

19 “Who Owns Grappa?” TED Case Studies
20 “Things We’re Dwelling on Now… Fermentation for Distillation”, Chris Gerling, Cornell
College of Agriculture and Life Sciences
21 “About Grappa”, Digestif.com

quenching and steaming are used to prevent the burning of pomace, but the
temperature is still a vital concern.
The biggest inefficiency is that the distillation process yields some residual
sugar and alcohol. These left over organic and raw materials are usually sent
to landfills to rot.22 Currently, the EU subsidizes the distillation of pomace;
however, these subsidies are reducing in an attempt to get more from this
resource. This indicates that the EU believes there are more efficient and
environmentally friendly ways to utilize pomace. The bottom line is that
fermentation and distillation aren’t enough and don’t solve the problem
because they further produce raw materials and sugars.
Furthermore, although fermentation and distillation are used in certain
European nations to produce grappa, it is not the most efficient use of
pomace due to inconsistencies with the final product, frequent process
complications, unutilized raw materials and the production of residual sugar
and alcohol.
The main takeaway from this section is that distillation does not utilize all of
the remaining pomace and does not solve the problem. Renewably Green
acknowledges this issue, and solves the problem with better and more
efficient solutions.
Winemaking Practices in Europe: Rules and Regulations
The European Union (EU) is a steadfast and influential force on the global
wine industry. Specifically, the EU is the world-leading producer of wine and
accounts for 45% of world wine-growing areas, 65% of production, 57% of
global consumption and 70% of exports in global terms.23 These figures
demonstrate that when analyzing the global wine industry, it is important to
look at current European practices, laws and regulations.
The wine market in Europe has developed considerably since its
introduction into the Common Market Organization (CMO). The latest wine
reform adopted by the EU in 2008 laid the foundation for the wine industry
and contained many new laws and regulations. The main goal of Council
Regulation (EC) No 479/2008 was to steer the industry towards sustainable
and competitive development while preserving the European traditions of
environmentally friendly production practices.24 Some of the main points of

PhD, 2012
23 “Agriculture and Rural Development”, European Commission, 2016
24 “Wine”, EUR-Lex: Access to European Union Law, 2016

the revised wine regulations include: the phasing out of distillation
subsidies, approving new winemaking practices, territorial regulations and
labeling rules.
One of the new regulations in this latest wine reform adoption in the EU was
the phasing out of subsidies for distilleries. This is because even after
distilleries process pomace, there is still residual sugar and alcohol. The EU
realizes that this does not solve the problem of utilizing all raw materials. By
reducing these subsidies, the EU hopes to promote competition among
wineries and distilleries on utilizing raw materials while promoting
sustainability and zero waste.
Under Article 18, Crisis distillation, support for these subsidies “may be
granted until 31 July 2012” to reduce or eliminate the surplus of excess raw
materials.25 The article further states that the alcohol resulting from the
supported distillation shall be used exclusively “for industrial or energy
purposes”, which demonstrates a possible way to reutilize residual raw
materials after distillation. It is also evident that the EU is taking a firm
stance on the utilization of raw materials in paragraph five on annex VI
which states: “Without prejudice to the possibility for Member States to
decide to require disposal of by-products by way of distillation, any natural
or legal persons or groups of persons who hold by-products shall be
required to dispose of them subject to conditions to be determined in
accordance with the procedure referred to in Article 113(2)”.
Article 113(2) refers to Council Decision 1999/468/EC, which describes the
procedures for how the European Commission operates. It specifically
delegates regulatory procedures to a regulatory committee that assists the
Commission. The regulatory committee is comprised of the representatives
of the Member States and chaired by a representative of the Commission.
The European Parliament considers any proposal submitted by the
Commission and then either denies or implements the proposal.

25 Official Journal of the European Union, COUNCIL REGULATION (EC) No 479/2008 of 29
April 2008

In 2008, the Commission passed a provision that outlined the interpretation
of what constitutes waste and how to utilize it more efficiently. A main
portion of this provision is the “End of Waste” (EoW) concept.”26 This idea
involves a process that prepares “a waste material in such a way that it no
longer involves waste-related risks and is ready to be used as a raw material
in other processes.” In addition, the EoW concept deals with substances that
are commonly used for specific purposes, have an existing market or
demand, and the processing of these substances will not lead to overall
adverse environmental or human health impacts.27
The overall aim is to further encourage recycling of products ranging from
scrap metal to agriculture in the EU. Examples of waste prevention measures
taken in member states include economic instruments, such as incentives,
taxes, or more specific carbon taxes. Examples of reutilizing waste include
processing waste for feeding purposes and the establishment of re-use
centers for both manufactured and raw materials. Conversely, landfilling
and incinerations are examples of waste management operations that don’t
meet the recovery definitions outlined in the document.
These European provisions closely correlate with the mission of Renewably
Green. The EoW concept to efficiently reutilize manufactured and raw
materials in ways which are both profitable and beneficial for the
environment is what Renewably Green is doing for the wine industry. There
is a current market demand for Renewably Green products such as grape
seed oil, gluten free baking flour, and fire logs. Similar to the EoW concept,
Renewably Green creates engineered processes to prevent resources from
being sent to landfills. Specifically, both the EU and Renewably Green see
benefits in composting, animal feed and possible carbon taxes/credits.
As a leader of the global wine industry, the European Union continues to
engineer ways of utilizing raw materials in profitable and environmentally
friendly ways. Renewably Green believes that analyzing European laws and
regulations regarding waste is important in the development of US
agricultural and waste handling laws.

26 European Commission, Guidance on the interpretation of key provisions of Directive
2008/98/EC on waste
27 “Waste Framework Directive: End-of-waste criteria, European Commission

Addressing Carbon Markets
While Using California Cap-and-Trade as a Case Study
California is a bold leader and is paving the way to reduce the production of
greenhouse gas (GHG) emissions with its strong government leadership,
accelerated investment in clean energy, and rapid expansion of a low carbon
economy. California’s Assembly Bill (AB) 32 titled the Global Warming
Solutions Act of 2006, co-sponsored by the Environmental Defense Fund
(EDF), set an absolute statewide limit to greenhouse gas emissions while
confirming California’s commitment to a sustainable and clean energy
economy.28 In addition, in 2011, The California Air Resources Board (CARB)
adopted the state’s cap-and-trade system.29 These programs illustrate the
growing desire and necessity to reduce GHG emissions. Renewably Green
offers economically sound and profitable solutions for the agriculture and
wine industry while aligning with California’s mission to reduce GHG
emissions.
The passage of AB 32 was the first program in the country to take a
comprehensive, long-term approach to addressing climate change. It does so
in a way that aims to improve the environment and natural resources while
maintaining a robust economy. Overall, AB 32 requires California to reduce
its GHG emissions to 1990 levels by 2020. The goal is to mitigate risks
associated with climate change. At the same time, solutions for emission
level reduction will improve energy efficiency, expand the use of renewable
energy resources and reduce raw material waste.
Recently in 2016, Governor Jerry Brown of California signed executive order
B-30-15 calling for a 40% reduction of GHGs by 2030.30 Specifically, this
measurement includes the major GHGs that are being emitted into the
atmosphere such as carbon dioxide, methane, nitrous oxide, etc. The goals of
AB 32 will be met by a scoping plan that is updated every five years and is
directed by CARB, along with dozens of other organizations that compose
the Climate Action Team.

28 “California leads fight to curb climate change - California’s AB 32”, Environmental Defense
Fund, 2016
29 “California Cap and Trade”, Center for Climate and Energy Solutions
30 “Governor Brown Established Most Ambitious Greenhouse Gas Reduction Target in North
America”, Office of Governor Edmund G. Brown Jr., 2016

Currently, AB 32 is a success because covered emissions are down and total
climate pollution has decreased by over 3 percent to approximately 146
million metric tons of carbon dioxide-equivalent.31 The success and direction
of AB 32 bodes well for Renewably Green. With California transitioning to a
low-carbon and clean energy economy, Renewably Green provides
innovated strategies to increase the utilization of raw materials for the wine
industry. This reduces the amount of agricultural GHGs produced in landfills
while providing products for an evolving green economy.
Based on the emissions covered, California’s cap-and-trade system to reduce
GHG emissions is second in size only to the European Union’s Emissions
Trading System. It represents the first multi-sector cap-and-trade program
in North America.32 The cap-and-trade compliance obligations began on
January 1, 2013 and mainly applied to large electrical power and large
industrial plants. Today these regulations encompass around 360 businesses
throughout California and nearly 85% of the state’s total GHG emissions.
If a regulated company can’t meet the state’s emissions cap (reduced each
year by 2%) or finds it too costly operationally to reduce GHG emissions, it
can buy credits and offsets in cap-and-trade auctions.33 Credits are sold by
all sorts of entities that are reducing emissions more than required and even
out of state entities. In Arkansas, carbon reduction projects by farmers have
been packaged into so-called offsets that are also sold as credits on that
market.
A mix of free allocations and quarterly auctions will distribute emission
allowances/credits. There are multiple financial incentives within these
credits. For most of 2016, credits hovered around $12.58 to $13.20 an acre
with a floor price of $10 each. The value of these credits will grow with the
market. They will create incentives for farmers to transition to sustainable
practices.
The cap-and-trade system has raised at least $4 billion for GHG reduction
projects in the state including bolstering public transit, building housing
near transit centers and installing solar on low income homes. Although the
current cap-and-trade program is mainly concerned with industrial and
electrical power plants, which accounted for 40% of GHG emissions in 2011,

31 “Cap and Trade under AB 32 - Now it’s an ‘Official Success’, Jonathan Camuzeaux,
Environmental Defense Fund (EDF Talks Global Climate)
32 “California Cap and Trade”, Center for Climate and Energy Solutions
33 “Ag (Agriculture) carbon credits go to market, just as cap and trade is questioned”, Barbara
Grady, Green Biz, 2016

more emphasis will later be placed on agriculture, which accounted for 7%
of GHG emissions in 2011.
Carbon credits have the potential to be the next form of currency in the
economy. Currently, investors can purchase carbon credits and carbon
credits do not expire (however there is a vote to renew/edit the cap-and-
trade system in 2020). Renewably Green has the potential to capture a large
amount of carbon credits as currency for the benefit of the wine industry.
Renewably Green is a solution to the problem based on forward thinking
and the efficient processing of raw materials.
Specific Carbon Footprint of a Ton of Pomace
Answer: 1 ton of pomace = approx. 73.71 kg of CO2 or 162.50 lbs. of CO2
When answering a question of this nature, there are a lot of variables to
consider. Variables include the types of grapes, climate and moisture
variations, how the grapes were processed and crushed, etc. In one standard
750 milliliter (ml) bottle of wine, there is a 1.21kg CO2 equivalent emissions;
however, this amount includes packaging, energy and waste disposal.34 The
grape production process, which accounts for 32% of the carbon, has a
carbon emission of approximately .39 kg per bottle of wine. One ton of
grapes accounts for 756 bottles of wine, which means that one-ton of grapes
produces 294.84 kg of CO2.35 And since pomace is 20%-30% of the original
grape weight, this means that one-ton of pomace contains approximately
73.71 kg of CO2.
More Information on Cap-and-Trade
Renewably Green finds the potential of this system innovative and exciting.
For more legislative information, visit…
http://www.arb.ca.gov/cc/capandtrade/auction/auction.htm

34 “Getting it Straight: Exact Carbon Emissions From One Bottle of Wine”, Moritz Buhner,
2012
35 “Conversion Factors: From Vineyard to Bottle”, Viticulture and Enology, Cornell College of
Agriculture and Life Sciences, Issue 8, December 2011

Conclusion
The objective of this paper is to look at wine pomace as a resource instead of
a waste product of wine making.
The wine industry realizes that management of pomace is a challenge. While
it has been part of the winery process since grapes were first pressed,
dealing with the pomace is an extra significant task during the most intense
time of wine making. Pomace has generally been viewed as a waste product
with little value. Some is used for feedstock and some for composting. Most
is discarded.
Renewably Green proposes to capture pomace as a fresh raw material that
can be used to create food products and other useful items. To insure
freshness, pomace would be transported immediately after pressing to a
nearby central processing location. Doing so simplifies the management of
pomace for the wineries, generates additional revenue streams and
contributes to the reduction of greenhouse gases.
If you would like to discuss this topic more, please contact us.
Jim Soderborg, CEO Blake Yeaman, President
jim@renewablygreen.com blake@renewablygreen.com

Wine Industry Challenges RG (1)

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