Case study 3: Process improvements and energy efficiency project for large Japanese industrial
The Challenges
Large dependence on oil fired burners – yearly costs of £0.475/therm. Reticence to move to gas (@ £0.2736/therm/year) due to pipeline installation costs and lack of modelling data. Management undecided & confused on how to reduce CO2 emissions.
What we did – added value
- Modelling of scenarios and payback plan.
- Built consensus amongst management and agreed decision to invest.
- Capital carbon programme adopted.
- Boiler burners replaced with new dual fired ones.
- Gas pipeline and reducer station built under adopted plan.
- Capital investment justified.
- Payback period of < 3 years.
The Results
- CO2 emissions reduced by 25+%.
- Pricing differential of gas vs. oil safeguarded over time – saving locked-in.
- Significant cost savings per year after payback with additional 1 man-year cleaning cost reductions.
- Company shifted electrical ovens to gas due to positive project experience and price modelling.