Climate Change Agreement in place, but site not receiving CCL relief
Optimised Recovery successfully obtains £40k refund within 6 weeks of commencement
Electricity supply contract renegotiated to deliver -6.7% savings
Energy audits identifies large energy efficiency opportunities
Flu-Ace heat recovery system installed on biomass boiler to deliver nearly £40k of additional savings
Savings verified though IPMVP and rolled out to other European plants
With a large food production site in a remote part of Scotland, this site consumes approximately £1 million of electricity each year. The site also operates a large onsite biomass plant that generates heat to be used in the drying process. Optimised Energy were engaged to carry out a historic Cost Recovery review of six years’ worth of invoices to identify and recover overcharges. The potential however was far greater than just rectifying historic errors.
We successfully leveraged the results from Cost Recovery to add value and deliver sustainable cost savings across the site.The site had a long-term relationship with a procurement brokerage to place annual electricity contracts. Very little emphasis was put on invoice validation. The site team administered the Climate Change Agreement, although energy reduction targets were being hit, the team had never (with the exception of a LED lighting upgrade) sought to quantify process related energy efficiency opportunities.
Optimised Energy were charged with delivering savings across both supply and demand activities through a desk based forensic analysis and an energy audit.
Our analysts reviewed 6 years of historic electricity invoices and it became clear very quickly that supplier errors had occurred. These were recovered promptly, but instead of seeking to take our share and move on, we re-invested our proceeds in order to carry out an energy efficiency feasibility study at the site, as well as embarking on an energy procurement strategy workshop. Our engineers identified a potential Flue Ace heat recovery project in the drying process with estimated savings of 2,500,000 kWh of heat per year, meanwhile the procurement team carried out a full market tender based on a new Risk Policy and Best Value Criteria.
Recovery of historic electricity costs generated refunds and savings of almost £40,000 (5% of annual costs). We renewed the electricity supply contract with a saving of 6.7% that came from a revised contract structure and tough contract negotiation. The heat recovery project was implemented and following measurement and verification was confirmed to deliver savings of £37,346 per year.
"We successfully leverage the results of Optimised Recovery to add value and deliver sustainable cost savings in other areas".
Optimised Energy is a full service energy consultancy. We are equipped not only with the best people and technology to serve our clients, but we also maintain key partnerships to supplement our team in specialist areas. These include areas such as electrical installations, chemical or heavy process engineering, and the development of complex onsite generation plants. We know our strengths, and how to serve our clients best by supplementing them in key areas.
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