Energy efficiency in manufacturing metal

Energy and gas costs continue to rise, leaving businesses like metal fabrication manufacturers feeling financially strained.

The good news is that manufacturing businesses can significantly reduce their energy bills by becoming more energy efficient.

Reducing energy use in your business can:

• save you money
• give you a competitive edge
• create more business
• lower your carbon footprint.

The figures on this page come from our Boosting Business Productivity program. We worked with more than 300 businesses to explore their energy use and minimise their energy cost.

Measure your current energy use

First, understand where your business is using the most energy, so you can find ways to reduce and save.

Based on the business’ we’ve worked with in the metals manufacturing industry, the most common areas to reduce energy costs are:

• insulating pipes
• heat recovery
• power factor correction
• metering.

Learn how to measure your current energy use.

Ways to reduce energy costs

1. Insulate piping

Insulating steam or chilled water piping will reduce temperature loss and improve the amount of energy used to function.

Benefits

On average, metal manufacturing businesses that insulate piping found they:

• spent less than $15,000 on implementation
• saved more than $7000 annually
• took 2 years to pay back
• saved almost 40 tonnes of greenhouse gas emissions annually.

2. Implement heat recovery

Heat recovery is a process where you redirect and use heat that would otherwise be vented outside.

You can use the recovered heat to preheat water for boilers or heat the workplace.

Benefits

On average, metal manufacturing businesses that recover heat found they:

• spent less than $30,000 on implementation
• saved more than $8500 annually
• took less than 4 years to pay back
• saved almost 46 tonnes of greenhouse gas emissions annually.

3. Install power factor correction equipment

Power factor is a measure of how effectively your equipment uses electricity. It’s about getting your money’s worth.

Reduce the amount you pay on your ‘network demand charges’ by improving your power factor and correcting supply inefficacies.

Poor power factor is often due to poorly loaded electric motors and mechanical equipment.

Power factor correction equipment optimises how your electrical system uses power.

The best way to know if you need power factor correction equipment is by talking to your electrical contractor or your energy provider.

Benefits

On average, metal manufacturing businesses that install power factor correction equipment found they:

• spent less than $75,000 on implementation
• saved more than $15,000 annually
• took less than 5 years to pay back.

4. Install a gas or electricity meter on high-energy equipment

Some of your high-energy equipment might be using more gas or electricity than needed.

Buy and set up a gas or electricity meter on equipment that uses the most energy to monitor use.

The meter can show you how much energy the equipment uses and when. This data can be analysed to see if the equipment is working efficiently. You may find you can downsize equipment or determine when it needs maintenance.

Benefits

On average, metal manufacturing businesses that add a meter to high-energy equipment found they:

• spent less than $85,000 on implementation
• saved more than $17,000 annually
• took less than 5 years to pay back
• saved almost 70 tonnes of greenhouse gas emissions annually.

5. Invest in solar

Before investing in solar PV (photovoltaics), ask your energy provider if they offer renewable energy options. To get the most competitive offer, compare electricity and gas providers.

Power your site with a solar PV system to reduce your energy costs and greenhouse gas emissions.

The Clean Energy Council has a helpful guide to installing solar (PDF, 2.0MB).

Benefits

On average, metal manufacturing businesses that invest in solar PV found they:

• spent less than $110,000 on implementation
• saved more than $20,000 annually
• took less than 5 years to pay back
• saved almost 150 tonnes of greenhouse gas emissions annually.

What else can you do?

Get an energy audit

Hire a professional energy consultant to review your energy bills and the way your business operates. They’ll identify where you’re losing energy and what you can do about it.

Through our Boosting Business Productivity program, on average, a business in the metal manufacturing industry:

• spent $7600 on an energy audit
• identified a savings of 63% of their total energy bill
• identified $63,700 of annual savings.

Find an energy auditor near you.

Get recommendations for an energy upgrade project

Our energy upgrade tool does the hard work for you. It recommends opportunities and funding options, and calculates return on investment for your business.

Use the energy upgrade tool.

Upgrade equipment at a discount

You may be eligible for discounted energy-efficiency products and services, through the Victorian Energy Upgrade program.

To get started, contact an accredited provider.

Then, you can pay for the remaining cost with energy-specific finance.