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Optimising energy efficiency can improve efficiency

26 March 2024

Jodie Eaton discusses how food and drink manufacturers can improve efficiencies and decarbonise operations.

According to the British Retail Consortium (BRC), energy costs comprise up to 15% of all overheads for a typical food and drink manufacturer. Alongside core production, this includes use across building services, computing, transport and administrative activities.  

As a result, it is estimated that every kilogramme of food destined for the retail market takes almost 100 megajoules (MJ) of electricity to produce. 

Alongside the obvious challenges posed by a fluctuating wholesale energy market, high raw material costs are also putting pressure on manufacturers, with the industry needing to squeeze margins wherever possible. However, absorbing costs that would otherwise be passed on to consumers is often just a short-term option. Moving forward it is important to maximise operational efficiencies – starting with energy – as a way to offset volatility, inflation and other rising overheads.

Harnessing opportunities
There are opportunities for businesses to transform their energy use. However, it is important to have a clear focus on energy efficiency that goes far beyond procurement and involves all aspects of operations. Done well and with disciplined management, this can help mitigate the pressure of costs and help to decarbonise operations. 

Insight from the International Energy Agency suggests that businesses can reduce their energy demand by 10-40% through a comprehensive review of every aspect of their consumption. For food and drink manufacturing businesses exposed to rising costs in their supply chains, this is a real opportunity.

The first step is to access accurate and reliable metering, including the collection of data and recording of measurements. 

Reducing energy consumption is the next step. For example, is it possible to move high energy processes to lower tariff times, such as manufacturing at night or packing during the day? Can you switch equipment off when it is not being used? Can you move production hours away from peak times to benefit from lower unit rates?

These questions will likely highlight wider inefficiencies, flag areas of waste, identify areas for improvement and reveal opportunities for immediate savings. Applying this insight practically will deliver widespread benefit. Considerations will include whether to invest in more energy efficient plant equipment, change existing lights for LEDs, look for opportunities to use heating and cooling more effectively, install control systems, or change motors and pumps for more efficient models. 

Another option is the installation of occupation sensors that will automatically switch off lights in empty rooms and adjust heating levels in accordance with building use. This guidance is echoed by the Food & Drink Federation (FDF), which has called on members to prioritise energy efficiency measures and opt for flexible energy solutions. 

Many of these tactics will undoubtedly require upfront investment, but payback will start as soon as new equipment is first turned on – not just financially but also in reducing carbon emissions and therefore also helping ensure more sustainable production. 

There is no silver bullet solution when it comes to optimising efficiency and bringing energy use under tighter control. Yet failing to plan, or relying on a reactive approach, can leave end-users open to changing regulation and fluctuating market prices. After all, energy is no longer simply an overhead, it is inextricably linked to commercial success. 

Jodie Eaton is CEO of Shell Energy UK.


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