Energy efficiency cuts firm's costs

A Norfolk company has turned to energy efficiency in a bid to combat the slowing economy - saving more than £30,000 a year.

HLC (Wood Products), of

Harleston, manufactures timber pallets for a wide range of industries, making about 2.5 million pallets a year.

The company approached the Carbon Trust, an independent company set up by the government in response to the threat of climate change, for an interest-free energy efficiency loan in order to install two new drying kilns and a waste wood burner.

The company were keen to become more energy efficient and, with a considerable quantity of waste wood being produced daily, decided to recycle the wood waste as fuel to heat water for the kilns while also providing space heating for the workshop.

By installing the new kiln and wood burner, the Carbon Trust estimated the company would save £32,741

and 174 tonnes of carbon dioxide a year.

Based on the money saved on energy costs, the £100,000 interest- free loan would have a payback of just over three years.

Ryan Lewis, general manager at HLC, said: “We approached the Carbon Trust because we knew our systems could be made more efficient, but we needed support with the initial capital outlay.

“Since installation, we have saved just over £30,000 a year and, having recently installed two more kilns,

are set to save even more next year.

“Investing in energy-saving has delivered real financial benefits for the company.”

According to new research released by the Carbon Trust, energy efficiency is now the number one cost-cutting priority for businesses in the east looking to combat the impact of a potential economic slowdown.

Of business leaders in the region surveyed, significantly more say reducing carbon emissions has risen up their agenda in the last six months than those who say it has fallen down. And they now rank energy efficiency ahead of recruitment freezes, redundancies, freezing salaries or giving below inflation pay rises as a potential cost-saving measure.

Hugh Jones, solutions director at the Carbon Trust, said: “Our new statistics provide stark evidence

that if companies are starting to

feel the bite from the economic downturn, the first place to look for cost savings should be their energy bill.”

Businesses can find out more by calling the advice line on 0800 085 2005.

Courtesy of EDP

25 July 2008