Helping hand for Teesside manufacturers

Sep 25 2008 By Kelley Price, Evening Gazette

AN award-winning project to help Tees Valley businesses cut their energy use comes to an end this month, but those that missed out won’t be left in the cold as One North-east revealed extra money will be pumped into helping manufacturers over the energy crisis.

Midas, which was exclusive to the North-east, helped companies save £3m in its two-year lifespan, plugging the on-site advisor gap for SMEs that fell short of the qualifying criteria for national help programmes.

But Teesside manufacturers have been thrown another lifeline.

The £5m Energy Resource Efficiency (ERE) programme, administered by TNEI - the same consultants that delivered the successful £1.6m Midas scheme on behalf of One NorthEast, has so far helped 11 businesses skim £250,000 off their energy bills. And an extra £1 million will be ploughed into the scheme, as part of Government measures announced earlier this month to help companies through the financial downturn.

The free scheme, set up two years ago specifically for the energy-intensive manufacturing sector, still has five years left to run and plenty of money left in the kitty, according to project managers, TNEI.

Speciality chemicals company Johnson Matthey, one of the first to benefit, has seen a 16% reduction in energy use across the Billingham site since signing up to ERE.

Energy uses were mapped and equipment was modified, including refrigeration and cooling water circuits, where large amounts of electricity were being used to chill and circulate cooling fluids through the plant’s reactors.

Plant manager Rob Peeling said the systematic approach of the programme had proved highly motivating for staff.

One NorthEast’s Manufacturing and Productivity Manager, Colin Herron, said: "Detailed plans for the additional £1 million funding are likely to include more innovative ways of using resource efficiency techniques to help businesses – potentially developing new qualifications for staff and supporting research into new ways of saving energy."