ENERGY NOVEMBER/DECEMBER 2019
ENERGY
OPPORTUNITIES
As manufacturers look to cut their energy use and carbon
emissions, they stand to benefi t from technologies such as
decarbonised heat and on-site energy generation
BY STUART REID, MANAGING DIRECTOR (PROJECTS), AMP CLEAN ENERGY
The manufacturing industry currently
accounts for around 60% of the
UK’s direct industrial emissions,
which means that manufacturers
will need to take urgent action to
reduce their emissions if the UK is
going to achieve its new net-zero target by
2050. Savvy manufacturers will be looking
for decarbonisation options that can bring
just as much benefi t to their business as
they do to the environment – and this is
where low-carbon, on-site generation
can represent a real opportunity.
Encouragingly, the industry seems
to be leading the way on the journey
to net zero. Many manufacturers
have been working to reduce the
environmental impact of their
operations for some time now, tackling
‘low-hanging fruit’ such as installing LED
management systems to make vital carbon
savings. Now that the UK is committed to
reducing its emissions to net-zero by 2050,
there seems to be a growing focus within the
industry on how we can achieve this. A new
report by trade association BEAMA has urged
the government to incentivise the adoption of
low-carbon technologies, for example, and 24 of
the UK’s leading electrotechnical manufacturers
recently committed to reaching net-zero
emissions by 2050.
lighting and updating their building energy
Ultimately, manufacturers will need to
fundamentally change the way they use energy
– and quickly – to ensure that as a nation we
can achieve our net-zero goal.
However, while many have
already made progress towards
reducing their emissions,
the uptake of renewable and
low-carbon onsite generation
technologies (actions the
government has termed
‘deep decarbonisation’)
has been limited.
This is despite
the fact that the
list of available
technologies –
from biomass
boilers to
combined heat
and power plants
– is constantly
growing, and most
manufacturers should be
able to fi nd a solution that
can bring tangible benefi ts to
their organisation.
Discovering value in
decarbonisation
As an energy-intensive
industry, the manufacturing
sector can expect to face
some challenges on the
road to net-zero, but savvy
organisations will also be
ready to take advantage of
the opportunities that will
inevitably arise as the pressure
to decarbonise increases. At
this point in time, one of the
most valuable opportunities
for manufacturers is to use
low-carbon, on-site generation
assets to provide as much of
their consumption as possible.
From a fi nancial perspective,
off -grid energy solutions
are becoming increasingly
appealing because grid energy
prices have been rising for
some time now, with noncommodity
costs increasing
year-on-year to fund the
evolution of our energy system.
As energy costs account for a
signifi cant proportion of many
manufacturers’ outgoings,
reducing their reliance on grid
energy by shifting to on-site
generation could present an
opportunity to make some
signifi cant savings. Of course,
the level of savings a business
sees will vary signifi cantly
depending on the type of
technology deployed and the
energy profi le of the business.
But with grid energy prices set
to continue to rise, it’s likely
that the fi nancial incentives for
low-carbon, on-site generation
will also increase.
However, our commitment
to net-zero is likely to make
non-fi nancial drivers for on-site
generation just as important as
the fi nancial ones. Sustainability
is becoming a key priority for
a wide range of stakeholders,
from customers to the wider
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