Practical guide reveals significant energy efficiency opportunities for gas-intensive manufacturers 29 August 2018

The Clean Energy Finance Corporation, the Energy Efficiency Council and the Australian Industry Group today launched Australian Manufacturing: Gas Efficiency Guide – a comprehensive resource identifying practical and proven strategies to deliver energy and cost savings across gas-intensive manufacturing operations.

The guide will assist the manufacturing sector to remain cost competitive in a global economy that is moving fast towards lower emissions and cleaner energy. It does this by showing manufacturers how they can take greater control of energy to reduce their reliance on gas and improve workplace safety and comfort by using technologies such as smart meters and energy management systems, and by implementing more precise process controls. 

Manufacturing is vital to the Australian economy, contributing around $100 billion (6.2 per cent) to Gross Domestic Product annually and supporting nearly 900,000 jobs, or around 7.4 per cent of total employment. Australian manufacturers are also the most energy intensive in the OECD, accounting for around 40 per cent of Australia’s total natural gas consumption.

CEFC CEO Ian Learmonth said: “It is no secret that manufacturers are relatively large energy users. The good news is that clean energy solutions can make a very real and positive difference. An initial investment of $50,000 or less can be recovered within just five years, producing lasting benefits for the business. By switching to more efficient equipment and cheaper renewable energy, manufactures can improve their competitiveness as well as cut greenhouse gas emissions.”

Volatile, high gas prices in recent years remain a challenge to industry. But Australia has an opportunity to reduce its reliance on gas by at least 25 per cent, resulting in estimated emissions savings in the region of 10Mt CO2e.

EEC CEO Luke Menzel said: “Gas prices have risen substantially, and leading Aussie manufacturers are investing in energy efficiency to take control of their energy costs. The good news is that these projects are delivering benefits well beyond energy savings: operational life of equipment is increasing and maintenance costs and emissions are going down. This guide catalogues the learnings from leaders on gas efficiency so they can be leveraged across the entire manufacturing sector.”

The guide also demonstrates that the gains available to manufacturers are significant and can go well beyond cost and emissions savings. For example, reducing maintenance costs, increasing equipment life expectancy, and reducing water consumption and treatment costs.

Ai Group CEO Innes Willox said: “Australia’s manufacturing sector has confounded doubters in recent years by expanding strongly. The sector has the potential for even greater growth amidst a new industrial revolution that is transforming industry yet again. However, energy costs loom as one of the most significant headwinds to seizing this opportunity. We’re pleased to support this practical approach to helping manufacturers address these challenges.”

The guide is intended to be a starting point for manufacturers to take the first steps towards achieving better gas efficiency through identifying possible gas efficiency initiatives in the early stages of planning. It describes key planning requirements when embarking on efficiency initiatives including the key skills required, financial considerations and available financing options. 

You can download a copy of the gas efficiency guide here.

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Andrea Von

Manager, Events and Communications

T: 0451 079 259