Austerity is good for business at energy management and clean technology business ENER-G
At a time when businesses are hanging onto the pennies and reluctant to borrow, ENER-G is providing cash strapped organisations with free energy saving technologies - paid for via tomorrow's energy savings.
This is a win-win business model says Derek Duffill, Group Managing Director of ENER-G group. He explains: 'We fund energy saving technologies, such as combined heat and power, energy saving controls, lighting and biogas generation equipment, off our own balance sheet. In return, our customers refund the investment through the money they save over an agreed contract period.'
This innovative funding model has enabled ENER-G to grow into a £120 million multi-national business, which designs and manufactures combined heat and power (CHP) systems, building energy management systems and biogas generators - for anaerobic digestion and landfill gas generation.
Duffill continued: 'We recently launched our E-MAGINE building energy management system, which reduces energy consumption in buildings by up to 30% and are quickly building sales by free-issuing the equipment . We're really 'putting our money where our mouth is' as we meet all the equipment, installation and commissioning costs and then guarantee the savings. On this basis, if we fail to deliver on the proposed savings we make up the shortfall. Needless to say, it's a risk free business transaction that customers like. It's of particular benefit to fellow manufacturers who can gain better control of energy consumption across warehouses, production facilities and offices.'
ENER-G pioneered its pay-as-you-save Discount Energy Purchase scheme on its cost and carbon saving CHP systems in the 1990s and since the recent economic downturn more than 50% of its CHP equipment is purchased using this cash saving financial model.
With no capital outlay for equipment or installation, customers can benefit from an immediate reduction in their energy costs and carbon footprint. The CHP system is then paid for via a metered energy charge that is guaranteed to be lower than previous electricity purchase costs. The plentiful supply of heating is supplied free.
Sales Director Ian Hopkins said: “The Discount Energy Purchase concept is very simple and places virtually no risk on our clients. We select and install a CHP system that converts primary fuel into electricity and heat/cooling. Because the system is more efficient, we are able to charge less for electrical output than energy supply companies, provide free heating and cooling and still recoup adequate funds to cover the investment cost and ongoing maintenance of the system. Our clients can use their capital to fund core projects and sit back and enjoy bottom line savings.”
Hopkins added: “we have clients that have enjoyed the benefits of Discount Energy Purchase for 15 years and are now replacing their equipment under the same simple contract structure. DEP is a very effective way for companies to regain some control over their energy costs while electricity rates continue to rise. It also gives them independence from the National Grid, so that if there is power failure they can keep the lights on and maintain business continuity.'
ENER-G operates in 17 countries and recently announced that it had taken a 75% holding in US based CHP business Rudox to accelerate expansion in the growing American combined heat and power market.
Many manufacturing businesses are benefiting from ENER-G's innovative funding model. Among them is Tangerine Confectionery, the UK’s largest independent confectionery manufacturer. The company is benefitting from substantial financial and carbon savings with no capital outlay.
Peter Sanders, Operations Director for Tangerine, said: “We are continually seeking ways to raise our environmental performance and this move to on-site generation of power is a key element of our carbon cutting strategy. ENER-G is able to provide us with a total service, from initial design to long term care of the systems. This has required no capital investment by the company as the technology is being supplied by ENER-G in return for us purchasing the generated electricity at a very favourable rate.'
The financial savings provided by the CHP units across five Tangerine production sites will contribute to helping Tangerine maintain competitiveness in a highly competitive and cost conscious market.
Tangerine has been able to meet the demands of their key customers to reduce CO2 output, helping to build a better client relationship.
As a large multiple site, Tangerine is subject to the CRC Energy Efficiency scheme and CHP is making a substantial contribution towards its CRC performance. Projected energy savings for all CHP systems total 42.2%, with no capital outlay.
An addition benefit is that CHP provides a diversity and security of supply, and extends life of boiler and chillers on site.
Tangerine owns brands such as Barratt, Lion, Mojo, Wilkinson’s and Butterkist.
ENER-G remotely monitors the systems 24/7 from its manned command centre in Salford, providing year-round technical support.
Further information: www.energ.co.uk