Pharmaceutical Company in Ireland
Current Energy Usage and Efficiency Measures
• Annual Energy Consumption: 116,000,000 kWh/year.
• Main Energy Users: Boiler, lighting, heating/ventilation, water treatment, material heater, chiller, air compressor, industrial agitators.
• Energy Costs: Less than 30% of total production costs.
• Energy Policy: Based on ISO 50001.
• Energy Management: Dedicated energy manager overseeing energy efficiency efforts.
• Energy Audit (2022): The audit led to the following implemented measures:
1. Lighting: Upgraded to LED lights.
2. Motors/Drives: Installed variable speed drives and high-efficiency motors on pumps and fans.
3. Employee Awareness: Staff energy awareness programme.
4. Monitoring: Smart meters and energy management platform.
Unimplemented Recommendations (Pending):
1. Heating/Cooling Equipment: Replacement with more efficient systems (e.g., heat pump, boiler upgrade).
2. Renewable Energy: Solar PV installation.
3. Heat Recovery: Systems or energy conservation measures for heat transfer.
4. Water-Source Heat Pumps: Not implemented.
5. Chillers: High-efficiency, water-cooled chiller.
6. Compressed Air System: Optimization.
Challenges and Barriers:
1. Finance/Investment: Lack of capital investment to implement energy-saving measures.
2. Bureaucratic Hurdles: Complex processes for accessing energy efficiency grants.
3. Long Payback Period: Some measures may have long payback periods, making them harder to justify.
4. Time/Resources: Lack of time and manpower to implement energy savings.
5. Business Disruption: Potential disruption to daily operations during ECM (Energy Conservation Measure) implementation.
6. Decision-Making: Difficult senior management buy-in and long decision-making process.
Expected Consultant Services
• Cost-Benefit Analysis: To evaluate the financial viability of energy-saving measures.
• Technical Assistance: To assist with procurement and implementation of energy-saving measures.
• Staff Training: To promote energy efficiency behavioural change.
• Grant Application Assistance: Help in applying for European/National/Regional energy efficiency grants.
Drivers for Energy Efficiency Improvements
1. Cost Reduction: Lower energy consumption and energy prices.
2. Carbon Tax Reduction: Lower carbon tax liabilities.
3. Equipment Age: Replacement of old, inefficient equipment.
4. Customer Demand: Demand for energy-efficient operations as a competitive advantage.
5. Green Image: Building a reputation for sustainability.
6. Government Support: Availability of subsidies to implement energy efficiency measures.
7. Lower O&M Costs: Reduction in operating and maintenance costs of energy-consuming equipment.
Support & Resources
• The company is aware of available technical and financial support from local and national government programs and has already utilized such services.
Key Recommendations for the Pharmaceutical Company
1. Financial Support Exploration: Given the barriers related to financing, the company should continue exploring available government subsidies, grants, and low-interest loans designed to support energy efficiency projects. A consultant could assist in securing these funds.
2. Prioritize High ROI ECMs: Given the long payback period concern, it’s advisable to prioritize energy-saving measures with a quicker payback (e.g., lighting upgrades, variable speed drives) that require less upfront investment.
3. Incorporate Renewables Early: The company should begin planning for renewable energy integration (e.g., solar PV), which could provide significant long-term savings and potentially reduce dependency on external energy suppliers.
4. Upgrade Heating/Cooling Systems: Replacing older heating/cooling systems with more energy-efficient technologies (such as heat pumps or upgraded boilers) should be a key priority, as it can yield substantial energy savings over time.
5. Optimize Heat Recovery and Air Systems: Investing in heat recovery systems and optimizing the compressed air system would improve overall energy efficiency. These are typically low-cost interventions with a relatively quick ROI.
6. Improve Decision-Making Processes: Simplifying the decision-making process and engaging senior management early on could help overcome some of the barriers to investment. It might also be helpful to develop a clear, measurable energy efficiency roadmap with defined savings targets and timelines.
7. Energy Efficiency Training & Awareness: To ensure long-term success, the company should continue or expand staff energy awareness programs to embed energy efficiency as a core value throughout the organization.
By focusing on these strategies and overcoming the identified barriers, the company can achieve greater energy efficiency, reduce costs, and enhance its environmental sustainability.
Estimation of the potential energy savings
Below is a breakdown of each recommended measure, along with estimated savings based on typical energy efficiency improvements in similar industrial contexts.
1. Upgrade Heating and Cooling Equipment (e.g., heat pumps, high-efficiency chillers)
Estimated Savings (percentage): 10–25% of heating and cooling energy consumption.
Rationale: Replacing older boilers and chillers with high-efficiency models or heat pumps can significantly reduce energy usage. Heat pumps, for instance, are typically 3-4 times more energy-efficient than conventional electric or gas boilers.
Estimated Energy Savings: If the company consumes about 30% of its total energy on heating and cooling (based on typical industrial usage patterns), this could lead to savings of around 3,480,000–8,700,000 kWh annually.
2. Implement Heat Recovery Systems
Estimated Savings (percentage): 10–20% of energy consumed by industrial processes generating waste heat.
Rationale: Heat recovery systems capture waste heat from processes (e.g., boilers, ovens, air compressors) and repurpose it for space heating, water heating, or other processes, reducing the need for additional energy input.
Estimated Energy Savings: Assuming 20% of total energy use is from heat-intensive processes, and 10–20% recovery is possible, the company could save around 2,320,000–4,640,000 kWh annually.
3. Optimise Compressed Air Systems
Estimated Savings (percentage): 20–30% of energy used by compressed air systems.
Rationale: Compressed air systems are often inefficient, with leaks, over-pressurisation, and suboptimal operations contributing to excess energy consumption. Optimising the system, fixing leaks, and adjusting pressure can result in significant savings.
Estimated Energy Savings: If compressed air uses about 15% of the company’s total energy, implementing these improvements could lead to savings of around 3,480,000–5,220,000 kWh annually.
4. Install Solar PV
Estimated Savings (percentage): 10–25% of total electricity consumption, depending on the size of the installation.
Rationale: Solar PV systems generate renewable energy on-site, reducing reliance on grid electricity. The amount of energy saved will depend on the system’s size, available roof space, and the company’s electricity usage during daylight hours.
Estimated Energy Savings: Assuming electricity accounts for 40% of total energy use, if the company installs a solar PV system capable of meeting 10–25% of its electricity needs, this could result in savings of around 4,640,000–11,600,000 kWh annually.
5. Expand Staff Energy Awareness Programs
Estimated Savings (percentage): 2–5% of total energy consumption.
Rationale: While energy awareness initiatives primarily focus on behavioural changes, they can still result in significant energy savings when employees adopt practices such as switching off unused equipment, reducing lighting, and optimising process efficiency.
Estimated Energy Savings: A well-implemented energy awareness program could save approximately 2–5% of total energy use, equating to savings of around 2,320,000–5,800,000 kWh annually.
Conclusion
Based on these estimates, the company could potentially reduce its annual energy consumption by approximately 16,240,000 to 35,960,000 kWh of its current energy usage. These savings could lead to significant cost reductions and a substantial improvement in the company’s energy efficiency profile. Additionally, these measures will contribute to reducing carbon emissions and improving sustainability.