How to develop resource efficiency

Jul 24 2007 by Evening Gazette

OVER recent years householders have seen large increases in the cost of energy.

However, these costs are controlled by the regulator, Ofgem, which regulates the domestic electricity and gas markets in the UK. For industry, however there is no similar body and so businesses are at the mercy of the market.

As a result of this there has been an average rise in gas prices of 129% and electricity rises of 22% in five years, according to figures from DTI. To make this worse, any inefficiencies in manufacturing processes not only affect the profit margin, but also impact on the long-term sustainability of the business.

This increase in cost is not always able to be passed to customers, and so businesses have been forced to absorb much of this into their operating costs, with a resulting fall in profitability. However, industry is increasingly seeking ways to improve the energy efficiency of processes and building infrastructures, and looking for help to do this.

This has been recognised as a major factor affecting the process industries in the region by NEPIC, the North East Process Industry Cluster, which represents the interests of the chemical, pharmaceutical and biotechnology industries that make up the process industry cluster. This cluster is a major part of the region’s economy, contributing around 25% of the region’s GDP and employing 34,000 people.

NEPIC is operating a project to promote and streamline the uptake of resource efficiency amongst the process industries in the North-east region, with the support of the regional development agency, One North East, and accessing funding from the Business Resource Efficiency & Waste Programme (BREW). This funding results from the reinvestment of landfill tax being paid by business to dispose of their waste materials in landfill sites.

The project, which runs initially until March 2008, is aimed at raising the uptake of resource efficiency in the region by providing a coordinator, Ian Findley, for this important issue.

Ian is working with companies of all sizes across the region within the process industries sector to discuss ways in which this project can help manufacturers to identify their most pressing issues and opportunities, and to identify the sources of assistance that can be called upon to help resolve these. Ian then liaises with the companies to monitor the implementation of their projects, and follow up on the progress across the period of the scheme.

NEPIC is also operating two Resource Efficiency Clubs within the cluster, which are already providing active support for around 20 manufacturing sites.

These are operating in the speciality chemicals and pharmaceutical/ biotechnology areas, with more to join them soon in the region, to identify opportunities and develop their action plans for savings in all areas, including energy efficiency. These clubs have already identified around £2m of potential savings, with more expected to be identified in the coming months.

The Resource Efficiency Project adds to this service, and provides one-to one support and assistance for all manufacturers in the process industry sector that wish to improve their performance in this area. Some of the benefits of the Resource Efficiency Project are:

Identification of ways of saving money for businesses

Providing one to one specialist advice about resource efficiency

Smart signposting to identify the key points for individual businesses and linking them to the most appropriate solution providers, either regionally or nationally

Assistance in accessing appropriate funding to help with the assessment and implementation of improvements

Sharing of best practice throughout the region

Identifying areas where resources can be combined to maximum returns

The Resource Efficiency Project uses a simple diagnostic questionnaire in conjunction with face to face discussions to identify the main issues for an individual company, and then links the company to service providers, such as Envirowise, Carbon Trust, etc. who can help the company to address their particular resource efficiency needs, and so aid the long term sustainability of these industries.

Process industry companies, whether members of NEPIC or not, can take advantage of this service, free of charge, by contacting NEPIC at ian.findley@nepic.co.uk.