Savings to the Max
Economic Crisis Drives Green "Revolution"
March 2009
The rise of green tech is paying dividends not only for innovators in the low carbon sector, but also for those companies that take advantage of their technologies in order to tackle on site energy inefficiency.
The global market for low carbon and environmental goods and services is currently worth approximately £3 trillion, and the sector employs around 800,000 people in the UK alone. While the sector notably encompasses renewable energy and development of alternative fuels, technologies that improve energy efficiency are also seeing a rapid increase in popularity. Commitment to corporate responsibility may vary from business to businesses in the food and drink sector, however reducing fuel consumption remains a firm priority across the board.
In his speech at the Jobs Summit in January, Business Secretary, Lord Mandelson, called the green tech market “a job revolution that cuts right across all sectors of the economy”. It seems, increasingly, that the UK is pinning its hopes on ‘green’ industries to provide economic growth and, correspondingly, new jobs. Additionally, for those companies that choose to engage with green technology and ‘clean up’ their businesses, there are economic rewards to be gained.
The push for energy efficiency lies at the centre of a move to a low carbon economy, and it has been proven as a powerful way for businesses to reap savings through reduced fuel costs. With the recent instability of gas and oil prices, it is clear that cheap fuel can no longer be relied upon. A recent YouGov survey revealed that, in the wake of the economic crisis, senior managers are prioritising energy efficiency as a cost-cutting means (above other measures, such as redundancies and salary freezes).
“Over the past year, the market has noticeably opened up to innovative technologies that improve energy efficiency,” comments Paul Finnegan, Commercial Director of green tech firm, Maxsys Ltd. “As companies in the food and drink sector look more closely at their bottom line, they are realising that even costs they once overlooked – like energy – need to be cut, however possible. There’s growing interest in innovation, as businesses realise that ground-breaking low-carbon technologies are now also proven commercial products.”
The recent surge of interest in green technology has allowed companies like Maxsys to post substantial profits, despite the economic downturn. Maxsys began roll out of its Fuel Systems commercially in 2003. Using magnetic fuel treatment technology, which affects the nanoparticles in gas and oil, the Maxsys Fuel Systems improve the combustion in boilers and other heating systems, producing a cleaner burn. Typical fuel savings exceed 5%, leading to a payback period that is normally less than two years.
By reducing fuel consumption, the Maxsys Fuel Systems also reduce CO2 emissions. Stringent government legislation over emissions is only likely to tighten in coming years, so managers are seeking to ‘clean up’ their sites wherever possible. One of Maxsys’ customers, the First Milk Cheese Company, which is the UK’s largest dairy farming co-operative, invested in Fuel Systems for the three oil fired steam raising boilers at its Haverfordwest creamery. General Manager, Paul Rowe, saw reducing both CO2 emissions and fuel costs as key business decisions.
Mr Rowe comments: “The dairy industry is extremely competitive and it’s crucial that we invest in the latest technology to maintain our leading position. First Milk is also clearly leading the way with investments to reduce energy and CO2 emissions. We have our own environmental targets to meet and this project has provided a significant boost.”
First Milk was able to cut its oil consumption by 7.5%, meaning payback on the Maxsys Fuel Systems was achieved in less than a year. It also meant a substantial reduction in the company’s carbon footprint. Since the food and drink sector, as a whole, accounts for roughly seven million tonnes of carbon emissions per year, finding ways to cut emissions is a critical issue. Both British Bakels Ltd, a leading supplier of ingredients to the baking industry, and Findus, a popular frozen food manufacturer, have also installed the Maxsys Fuel Systems at their sites to cut fuel consumption by more than 6%.
Part of Maxsys’ success has been its ability to establish itself firmly within the sector, through its support of industry events such as the recent Food Processing Awards, and its proven track record. Indeed, large companies in the food and drink industry are now installing the Maxsys technology at multiple sites after witnessing the proven fuel reduction at just one site. It’s a knock-on effect that is indicative of the rapid rise in popularity of green technology. “There may be few businesses that are ‘recession proof” concludes Paul Finnegan “But a business that can help other companies to lower costs is always likely to stay afloat in hard times.”
The article was published in the Food Processing magazine, February 2009, p14.
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