MIDAS PROGRAMME IDENTIFIES £15M ENERGY SAVINGS IN NORTH EAST

[sara.ragan@tnei.co.uk]

MIDAS CASE STUDY

A large percentage of UK companies are well aware of what they should be doing in the realms of energy management and reducing their carbon footprint, the weight of responsibility weighs heavy on many a shoulder, but few know how to practically effect the change required.

Businesses know the real cost of the energy they use and are well aware that these costs are escalating – but again, they don’t know where or how to go about reducing their costs. The only way to make a significant reduction in energy use and therefore cost is to take dramatic and far reaching action – action that is difficult, if not impossible to do alone.

The North East Regional Development Agency, One NorthEast, was quick to recognise the shortfall in business acumen when it comes to energy management. In 2006, they launched the Midas programme to offer businesses across the North East region access to expert and practical consultancy advice that would help them deliver resource efficiencies - from cutting energy bills to managing their waste and water costs.

TNEI was appointed to manage this innovative and, as yet, un-replicated programme. With the programme ending at the end of September, the programme has identified over £15 million worth of energy savings in businesses across the North East region. A large part of the programme’s success has been down to the team delivering the Midas programme. Together the TNEI Energy Management team has a combined industrial energy management experience of over 90 years.

In the first instance, before any energy solutions could be offered to businesses, comprehensive energy audits had first to be conducted. In the North East, these energy audits were free via the £1,6 million Midas programme, designed to offer businesses free help to tackle energy, waste, and water issues.

Through Midas, TNEI offered Small to Medium Sized Enterprises (SME’s), access to the type of consultancy expertise bigger companies use to get their competitive edge.

A Midas Resource Efficiency Broker worked with each company to help them make the most of support available through Midas and through other local and national support programmes.

After conducting an initial and thorough diagnostic visit, Midas Resource Efficiency Specialists evaluated potential areas of energy, water and waste savings. A report was then supplied to the company recommending appropriate actions to reduce resource costs – the first site visit and initial report were completely free.

When a course of action was agreed, the Midas brokers worked with the business to liaise with potential funding providers, contact recommended service providers and contractors and receive quotes for work if appropriate. If a project required expert investigation or consultancy support then the Midas programme helped fund the costs by up to 60%.

There were no costs for companies which use Midas except if they used an approved consultant for a resource saving project. The company then paid 40% of the costs.

Since the programme was launched in April 2006, over £15 million savings have been identified in businesses across the North East and over £5 million worth of energy efficiencies have been implemented. Many of these efficiencies were made because the Midas team were on hand to guide businesses through the complexities of the energy recommendations and were on hand to help deliver the changes required.

One of the main triggers for companies to look at their energy usage is cost. As fuel and energy prices have risen, more companies have become energy aware, this coupled with the potential for new legislation which will force businesses to monitor and meet targets for energy efficiency is encouraging companies to get their house in order.

TNEI works with businesses of all sizes in any industry or business sector to assess the whole operation and identify where savings can be made from energy use through to waste management. Mark Armstrong, project manager at TNEI and head of the Midas programme explained: “TNEI has worked hard to implement the MIDAS programme and the £15 million identified savings demonstrate this. All businesses in the North East region were encouraged to seize the opportunity offered by MIDAS to get themselves energy audited before the programme finished.”

Ray Waters, sustainable resources specialist at One NorthEast, said: “Resource efficiency is a critical issue for all businesses and for the regional economy as a whole, and Midas was one way for companies to look at where they could make savings. We’re delighted that the Midas project has already helped so many businesses in the region to become more competitive, more resilient to change in the price of energy and raw materials, and to show that they’re serious about issues like climate change.”

Although at present, the Midas programme only operates in the North East of England – TNEI operates nationally and many regional development agencies are currently investigating the scope for launching programmes to replicate the Midas model in their areas.

THE COST OF KEEPING WARM - DUVET MANUFACTURER SAVES ENERGY
One classic example of how North East companies have benefitted from the Midas programme is duvet manufacturer, Snug Ltd. Huge energy and therefore cost savings were identified during the initial diagnostic visit and the company has started to make the changes that will deliver significant results – for the company and the climate.

Snug Ltd, one of the UK’s leading manufacturers of duvet and bedding, is determined that its products should not cost the earth – literally, and have worked with the business support programme, Midas to reduce its carbon footprint.

Rising energy costs and a desire to be more eco-friendly prompted Snug to seek Midas’ help to review energy usage and investigate opportunities for making savings at its Gateshead factory.

Since the company’s launch in 1980, Snug has expanded to employ 105 people at its Heworth base and supplies bedding products including the “Dreamland” brand to major High Street and out-of-town retailers, Supermarkets, Wholesalers and Mail Order Houses.

The company’s success hinges on its continued investment in research, technology and manufacturing to create innovative, high quality products at "value for money" prices. Having invested in automated production facilities, the next step for the company was to tackle its rising energy costs, which topped £120,000 in 2006/07.

For this they enlisted the help of energy consultants, TNEI and its management of the Midas programme. Through the initial evaluation study, the TNEI/Midas team identified potential energy savings of nearly £28,000 which would be delivered through upgrading lighting on site, improving the management of the compressed air system used in the manufacturing plant and raising awareness about energy efficiency among staff.

Since the energy audit was conducted, the company has begun the process of upgrading its lighting and has compiled an energy action plan to implement the other recommendations made in the Midas report. The next stage of the plan will be to conduct staff training to raise awareness and deliver further efficiency savings.

Commenting on Snug’s energy programme and action plan Betty Powton, Quality Manager at Snug explained:
“Our efforts to improve energy efficiency and reduce our carbon footprint will not only benefit our customers but the wider community.”

Midas’ involvement in a company can have far reaching effects, in one Client Company, Teesside based Dielife, after identifying £8K worth of savings, the Midas team then went on to secure funding through the Carbon Trust to contribute £20,000 towards the recommended energy changes.