Energy saving carrots

Mike Brook, contracts director of Wyko Industrial Services, is not surprised. "Even engineers are sceptical. They wouldn't be engineers if they weren't," he says, "but [Wyko] has undertaken enough successful installations to introduce sceptics to clients who have fitted variable speed drives and reaped the rewards." Brook heads up Wyko's energy efficiency advisory service, set up with the aim of helping industry to cope with the effects of the imminent Climate Change Levy.

The purpose of the Levy is to encourage a reduction in the use of energy from non-renewable sources. Although all energy users will be affected, "most companies," says Brook, "seem to be in the dark about the levy and its effects".

That only 10% of companies have taken action, as shown in a recent survey by Shepherd Engineering, is about right, he thinks and warns: "Companies that do nothing about the Levy could face an extra 27% on their energy bills." From 1 April all businesses, regardless of size or sector, will be able to apply for enhanced capital allowances in respect of energy saving equipment newly installed in their premises.

This carrot is in addition to the 0·3% reduction in national health contributions by employers that is being made to compensate for the effects of the levy, but which is expected to benefit only labour intensive, large energy users.

Brook, with over 30 years' experience in the electrical installation, maintenance and repair business, is a strong advocate of energy efficiency. He attributes this to being "originally from Yorkshire" and thus "always being an advocate of not spending money if it could be helped, and certainly not liking to pay out money to subsidise inefficiencies".

As a provider of electro-mechanical industrial services, Wyko is in a good position to advise clients of the benefits of an energy efficiency survey. The company does not, however, hard sell its efficiency advisory service.

"Hard selling to an engineer is the best way to find yourself on the wrong side of the door," suggests Brook. Instead, Wyko raises the matter when called out to an engineering problem. And, as Brook makes clear, it is not just a case of having the correct new plant, but using existing equipment in the most appropriate way and ensuring that it is repaired to high standards.

An energy survey requires Wyko to take copies of the client's plant inventory, gain an understanding of the production processes, and review current energy efficiency policies and practices. The company will then make recommendations on how reductions in energy consumption might be achieved. A lifetime cost analysis will also be provided.

Companies that do nothing about the Climate Change Levy could face an extra 27% on their energy bills

Some of the savings which can result are truly impressive. For instance, the fitting of a variable speed drive to a 75 kW fan in a food producer's plant cut the company's annual energy bill by nearly 57%, from £17 406 to £7503.

Variable speed drives are one of the product groups for which users can claim an enhanced capital allowance, alongside high efficiency motors, lighting, thermal screens, boilers, refrigeration systems, chp and pipework insulation. Allowances are claimed in the tax return for the period during which the products were installed.

Prominent on Brook's agenda are high efficiency motors: "Motors are responsible for 64% of UK industrial electricity consumption." Considerable savings can be made by switching to a more efficient motor at the same rating as the original, and even greater savings if the motor can be downsized at the same time.

In certain energy intensive sectors, in addition to the new capital allowances companies may also qualify for rebates of up to 80% if they meet agreed pollution reduction targets negotiated by their relevant industry associations.

So far the paper, food and drink, chemical and steel industries have reached target agreements with the DETR. However it is not certain that the rebate will be allowed under EU fair competition rules – a decision from the Commission is expected this month.

Wyko's recommendations go beyond installing energy saving plant and one of its specialised services is condition monitoring. Normally linked with failure prevention, Brook says that in the hands of trained technicians it can be used to detect losses in liquid or gas flow and leaks in compressed air, water and steam flows. Thermography can be used to detect heat loss, blocked pipes, low cooling oil and overheating – all contributors to a loss of efficiency.

To show how condition monitoring can give savings, he quotes the case of a workshop compressed air system where 12 leaks were releasing compressed air at a total rate of 18 litres/s. An electric motor is used to power air compressors, but here it ran non-productively, the air simply feeding the leaks. Assuming that the system was pressurised for 24 hours a day, 50 weeks a year, the potential saving was calculated as £2722.

There are undoubtledly lots of leaky fluid systems around the country which, if repaired, could lead to considerable energy savings, in addition to all the other ways of reducing energy consumption.