Tuesday, 18 November 2014 12:16

British Paper Manufacturing Sector Wastes Almost £12 Million A Year On Outdated Energy Sources

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A new report out this week has revealed that the British paper manufacturing sector wastes a huge £12 million each year by using outdated off-mains energy sources.

  • Sector currently spends over £43 million a year on oil
  • Despite falling oil prices, sector could save £11.6 million / year by switching energy sources
  • Switch could reduce industry CO2 emissions by 47,000 tonnes

The sector currently spends almost £43 million a year on oil for its heating, lighting and manufacturing processes.

Even though oil prices are currently falling, new research suggests this figure can still be cut dramatically to around £31 million by switching to LPG.

The wasted spend comes from those companies, who, unable to access mains energy, are using old-fashioned energy supplies like oil. Not only is oil expensive, but is also an inefficient and dirty fuel to burn.

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The alternative to oil for off-mains energy is LPG, a fuel with a lower cost price, less CO2 emissions and greater efficiency.

By switching to LPG, the sector could reduce its energy costs on fuel alone by over £9 million, a saving of 22%.

This saving rises to up to almost £12 million when the oil burning equipment is replaced by the much more fuel efficient LPG burners, giving a total saving of up to 27% when compared to oil.

With cost savings of up to 27%, when compared to the cost of switching from oil to LPG, the benefits are obvious, with the average business recouping their initial outlay in under a year.

The benefits of changing fuels aren’t just financial, there are also huge environmental benefits too as the switch to LPG can lead to a massive reduction in the sector’s carbon footprint.

With the sector currently using almost 800 million KW of energy a year from off-mains resources, generated from over 70 million litres of oil, it is producing the equivalent of 207, 000 tonnes of CO2 a year.

However, if that energy had been generated from LPG, the equivalent CO2 produced would be just under 160,000 tonnes, a reduction of over 47,000 tonnes of CO2 a year (23%).

This saving is equivalent to 23,500 flights from London to Sydney, or the weight of 470,000 baby elephants.

The figures are revealed in the ‘Flogas Energy Expenditure Report’, a piece of research initially carried out by Flogas to provide background information for its sales teams. However, the company was so shocked by the findings, it decided to share them with the sector as a whole.

This isn’t the only industry where savings could be made, with huge financial and carbon wastage taking place in all other industries using off-mains supplies.

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However, it appears that many businesses aren’t aware of LPG or they are under the false impression that the switching process is complicated or expensive.

As the market leaders at converting off-mains businesses from oil to LPG, Flogas are well aware of customer perceptions.

Commenting on the findings, Lee Gannon, Flogas Managing Director said: “We initially carried out the research purely for internal purposes, but after seeing the figures, we felt the only responsible action was to share them with the industry. These are figures that everyone needs to see. Times are still tough, and there is a greater need than ever for businesses to reduce their energy costs and cut carbon emissions.

Gannon continued: “We find the biggest reasons that businesses burn oil is a lack of awareness that there is a cheaper, greener alternative, or because they are under the misconception that switching is expensive or difficult. By sharing these figures we hope to help the sector make savings, while at the same time making a large dent in their carbon footprint.”

About Flogas

Flogas Britain is a leading UK supplier of LPG (Liquefied Petroleum Gas) with 30 years’ experience of providing alternative energy solutions to domestic and commercial customers in the UK.

From LPG supply to cutting-edge renewable energies such as solar PV systems and wind turbines, Flogas delivers projects and services that are reliable, safe and expertly managed.

LPG is used for heating and cooking, industrial processes, and as a fuel for cars, trucks and fork lift trucks. Supply comes from either bulk tanks installed on customer premises or from a range of gas cylinders.

For more information, please visit www.flogas.co.uk

  • Research carried out by Flogas in October 2014
  • Oil price based on an average of the 2013 gasoil price
  • LPG price based on Flogas pricing structure for large usage industrial customers
  • Oil KW calculations based on generation of 11KW per litre of oil
  • LPG KW calculation based on generation of 7.1 KW per litre of LPG
Read 6426 times Last modified on Tuesday, 18 November 2014 12:24