68% of companies have already made investments in
their transition to Net
Zero.
But Govt needs to create a National Advisory Energy
Service to help all companies move forward
-
92% see Net Zero as a priority for their business and
68% have already made investments to start on that
journey
-
22% plan to start making Net Zero investments in the
next 12 months
-
60% see Net Zero as a commercial opportunity
Manufacturers have been hit by soaring gas and electricity prices
hitting record highs, leaving businesses desperate to cut their
energy use, according to a new report Driving Industrial
Energy Efficiencies, published today by Make UK and Inspired
PLC. The new research delves into how energy-efficient practices
and technologies can help companies save money and boost
productivity while at the same time moving towards their Net Zero
targets.
Net Zero is a priority for 92% or businesses and 68% have already
made investments to start on that journey with two-fifths (22%)
planning to in the next 12 months
Over the past two years, the cost of energy has been highly
turbulent, exacerbated by an increase in operational costs. This
has left manufacturers forced to operate with a significantly
reduced margin, making introducing energy efficiency projects an
attractive proposition.
Today’s report shows that businesses have been taking a two
pronged approach reducing energy consumption, from low-cost, low
effort measures to more costly investments which deliver
equipment and process upgrades. Simple steps such as getting the
right energy supplier and securing an advantageous contract is
critical. Monitoring energy use through smart metres and
sub-metering can further cut consumption, providing more granular
detail of unnecessary use. One rubber compound manufacturer saved
£62,734 through a better energy contract and over £48,000 by
reducing waste through circuit-level (sub-meter) monitoring.
Equipping plant machinery with meter reading tools or sensors,
can offer real time data access by connecting it to the cloud
(Internet of Things Technologies), enabling faults to be spotted
as they happen. Implementing Voltage Optimisation, which only
allows the exact amount of energy a business needs to be brought
in from the National Grid, can also make significant savings.
While overhauling compressors – which account for 10% of all
industrial energy used - can cut energy consumption by 50%.
One energy intensive company which galvanises plant equipment
introduced digital controls to deliver variable on-demand power
to its furnaces, saving £400,000 on energy bills and reducing its
carbon output by 1000 tonnes.
Faye Skelton, Head of Policy at Make UK, the
manufacturers’ organisation said:
“Britain’s manufacturers have made significant steps to cut
carbon emissions and move towards Net Zero.
But in order to supercharge that journey, business needs
Government to play its part in driving the process forward.
“To that end, Government needs to commit to introducing a
National Advisory Energy Service similar to the model of Made
Smarter which helps SMEs digitalise their production processes.
This should provide smaller funding to companies of up to
£20,000, include an energy audit, sub metering and an
implementation plan as well as helping businesses access the
right funding.
“We need to see also an immediate extension of the 12 months of
100% business rates relief on green plant machinery and equipment
and building improvements to three years to reflect the business
payback period.”
Andrew Stubbs, Director: Optimisation Performance at
Inspired PLC said:
“As a dedicated energy and sustainability consultant supporting
the manufacturing sector, Inspired wholeheartedly endorses Make
UK’s comprehensive report on energy efficiency in
manufacturing.
“Over the last twenty-four months, an increase in operational
costs has forced manufacturers to operate with a significantly
reduced margin and it is evident that energy costs now constitute
a significant share of operational expenses. Make UK’s Driving
Industrial Energy Efficiencies report delves into how
energy-efficient practices and technologies can support cost
reduction.
“One of the other key takeaways from this report is that
sustainability makes good business sense. By implementing sound
practises and applying continuous improvement processes around
energy efficiency, manufacturers can pave the way for a
prosperous, cleaner and environmentally responsible
future.”
With the abolition of the Energy Efficiency Taskforce (EETF)
which had expected to put forward policy proposals to support
greater energy efficiency, Make UK is calling on Government to
use the upcoming Autumn Statement to help companies transition to
net zero through energy efficiency measures.
Among these calls included in the report, is for Government to
undertake a gap analysis of the tax incentives available on
energy efficiency to check no type of business falls between the
cracks.
Heat recovery may have the biggest potential to improve energy
efficiency, but as yet is almost untapped. It uses the steam or
waste heat from machinery (e.g., compressors, ovens/furnaces,
galvanisation baths) or high temperature processes, to heat up
other parts of the process (low temperature), hot water, or for
the space heating of the building. It can also be used to produce
electricity via the Organic Rankine Cycle, a type of
thermodynamic process which can use low temperature industrial
waste heat.
READ THE FULL REPORT HERE: Driving Industrial Energy
Efficiencies | Make UK
