Energy is an essential input to all manufacturing, typically accounting for 5% of variable operating costs and up to 20%+ in energy-intensive industries. When margins are under pressure, energy spend can have a direct bearing on the viability of a business.
SECTORS - MANUFACTURING
Improving energy productivity in manufacturing to reduce costs and decarbonise
With energy prices set to rise by around 40%, improving energy productivity could mean the difference between a business thriving and facing closure. Collaborating with industry experts, we have developed a roadmap identifying the obstacles and opportunities on the path to improve the energy productivity of the manufacturing sector. As you will read, it is not all about new technology: up to 50% savings in energy are possible through smarter use of existing technologies.
We are working with state and federal government departments to identify the best opportunities for Australian businesses to reduce energy costs and decarbonise their operations. We also help deliver demonstration projects of key technologies and methods.
Decarbonising process heat
Around 52% of industrial end-use energy is used for process heating. In early 2019 we initiated a project to determine the technical and commercial feasibility of replacing fossil-fuelled process heating technologies in manufacturing settings with renewables-powered alternatives, and to detail pathways to implementation including technical specification and a business case for investment. Learn more about this project we delivered for ARENA.
Reducing energy use from compressed air systems
Analysis by A2EP reveals that compressed air systems account for around 16% of electricity use at typical manufacturing sites, and that 80-90% of the energy used by compressed air systems is wasted. We have recently published two reports and presented an industry briefing about these issues and the scope for improvement. Learn more about how you can reduce energy costs from compressed air systems.
Invest in your team's capacity to save energy and decarbonise
In 2022 A2EP launched training courses to help build industry capacity for improving energy productivity, reducing energy costs and decarbonising operations. The introductory course was successfully delivered in 2022 and will return in 2023, along with a second, more advanced training course for those ready to take decarbonisation to the next level. Learn more about our short, in-person training courses.
Transforming energy use in manufacturing
In 2018 we partnered with Sustainability Victoria, the then NSW Office of Environment and Heritage, Climate-KIC Australia and the Clean Energy Finance Corporation to produce a series of guides on transforming energy use in manufacturing. The guides show industry how to capture business benefits using adaptive, intelligent, connected energy productivity solutions.
Energy productivity success stories in the manufacturing sector
Simplot industrial refrigeration - NSW Government