By David Kipling, CEO – On-Site Energy
Businesses have complicated energy needs, particularly those that use a lot of thermal energy such as for steam or ovens. Achieving net zero is going to require elements of re-engineering, re-thinking business processes, adopting new technology and changing energy purchasing strategy. But is it even possible in the current climate when those decisions will also directly affect the P&L through changed operating costs.
The main routes to net zero most businesses consider are:
- Buy green tariffs – and hope they won’t be looked-through as “green-washing”. SECR reporting is starting to highlight energy intensity (how many kWh of energy your company uses to produce 1 kg of product) – which will aim direct comparison with competitors
- Electrification – and hope the Government will make good on its promises to decarbonise the electricity grid
- Await Hydrogen to move off gas – another big “if”. When or will it be commercially viable and available ?
- Invest in energy efficiency
The problem with approaches (1) – (3) is they will have failed to deliver the change that your customers are looking for anytime up to at least 2030. That could put your business at a competitive disadvantage. Also you are fully exposed to market volatility with these routes.
We believe the right path is option (4), to invest in reducing your energy intensity and also consider low-carbon generation solutions. This way you reduce your CO2 footprint, reduce your exposure to the grid and are in control of your costs. Also bear in mind that the third round of ESOS is less than 2 years away, and its likely to be mandatory to enact the recommendations of the auditor. In that ESOS round there is going to be an even greater focus on action on energy efficiency.
The challenge is keeping operating costs under control whilst achieving progress towards decarbonising and deciding when to adopt new technologies. With a recession looking likely, capital availability may also become more difficult. We can help deliver measures without any capex from you, using our zero-capex energy partnership solution.
If you would like to discuss how to be more energy efficient and accelerate your net zero strategy, please contact David Kipling, CEO – On-Site Energy on 0151 271 0037 or email firstname.lastname@example.org (www.on-site.energy).