Examples, case studies & references

Enjoy these examples of how companies improved competitiveness and energy performance through energy saving actions.

Coming in 2019: We will launch a searchable list of projects drawn from a wider literature review, company surveys, and Multiple Benefits
 pilot projects. 



Example: Aluminium producer improves reliability and sales

Worsley Alumina initiated a system optimisation project with the aim to reduce energy demand. Ultimately, they reduced operator workload and error and improved system stability and reliability, which allowed them to increase production by 3 000 tonnes of aluminium per year and to lower maintenance costs (through fewer charge-outs). The increased production had a commercial value of USD 6 million per year (USD/yr) (given a sales price of USD 2 000 per tonne).

Impact on value proposition and increased sales

  • More consistent product quality (thanks to improved system stability and reliability)
  • Higher production capacity
  • Increased staff loyalty

Cost reductions

  • Reduced operator workload
  • Reduced operator error
  • Reduced product rejection 
  • Reduced maintenance costs
  • Reduced energy costs
  • Reduced marginal CO2 costs

Risk reductions

  • Increased staff comfort
  • Lower commercial risk
  • Lower legal risk
  • Reduced risk of quality problems

Source: Capturing the Multiple Benefits of Energy Efficiency, IEA report, 2014, p.131.

Example: Surface treatment company improves product consistency and increases production capacity 

An energy efficiency audit of a Swiss surface treatment company identified an opportunity to replace ageing rectifiers (used for electronic galvanising) with new rectifiers that had improved monitoring. New rectifiers entailed numerous positive impacts on the company’s value proposition, risk reduction and cost reduction. When energy savings alone were considered, the simple payback for energy efficiency measures was calculated at 6 years (internal rate of return of 6.9%). However, when the financial outcomes derived from the multiple benefits of the opportunity were considered, the simple payback reduced significantly to 0.85 years (internal rate of return of 118%). Including Multiple Benefits improves IRR from 6.9% to 118%, greatly improving the case for implementation.

Impact on value proposition and increased sales

  • More consistent product quality 
  • Much higher production capacity (due to reduced production time)
  • Increased product range
  • Increased staff loyalty
  • Space-savings

Cost reductions

  • Reduced part rejection
  • Reduced maintenance costs
  • Reduced cooling water costs
  • Decreased overtime (which previously was required to re-manufature parts rejected due to rectifiers' failures)
  • Reduced energy costs

Risk reductions

  • Reduced risk of staff accidents
  • Lower commercial risk
  • Lower legal risk
  • Reduced risk of outages
  • Reduced CO2 risk (decreased risk of failure to achieve voluntary commitments)

Source: Cooremans C., Eco’Diagnostic, Monney L., Greenwatt, Canton of Vaud Energy audit program, 31 May 2016. 




 

Efficiency project proposal rejected?

Would training and tools to strengthen the business case help? See the project-at-a-glance and calendar to find out when we will launch training, tools and pilot projects for businesses!