UK leading glass manufacturer, Pilkington United Kingdom Ltd (Pilkington) are working in partnership with Siemens Industry, Energist Solutions and Siemens Financial Services (SFS) to help drive a major energy management project across its production sites.
The programme is designed to enhance Pilkington’s overall energy performance, cut costs and help towards a more sustainable future.
Central to this project has been an innovative partnership between the three companies. A collaborative approach towards technical energy management solutions and the creation of a bespoke and innovative financing package has been key to helping the business make efficient savings.
As a high energy consumer, Pilkington, who are part of the NSG Group, have no implemented significant energy reduction improvements in some of its UK sites. This included the installation of a new intelligent lighting solution in one of the company’s prime warehouses, which lead to an energy cost saving of £120,000 per annum.
Prior to the installation, the Energist Solutions team, alongside Siemens and Pilkington engineers carried out a series of in-depth energy audits and investigations across the company’s UK wide manufacturing facilities.
The investigation helped identify a further 10 energy management projects, including installation of variable speed drives and automation controls at their Scottish production and new pump system upgrades at one of the prime warehouses.
This effective agreement has been invaluable to all parties, proving cost efficient and adding ease to the process. SFS funds the initial capital expenditure required for the project across a three-year payback period in terms of generated energy savings. Pilkington will then make monthly savings which match that of the energy costs.
This results in a zero net cost investment, helping the company reap the benefits from its energy-saving investment and with an abundance of experience in industrial technology applications, SFS were able to align the process at a rate in which the client benefited from savings related to its equipment investments.
As individual site-specific projects are assessed, ongoing reviews ensure that are continually monitored, whilst also helping new operational areas for potential savings.
Gary Charlton, Pilkington’s UK Operation Direct said, “We value the relationship we have with Siemens and Energist Solutions as it helps to underpin our strategic growth and operational strategies. The current performance financing solution sees the balance collected over the term as a result of the operational savings we have made. This is a great example of innovative and tailored financing having a real impact.
Crucially, we have not had to make any upfront capital expenditure investment to benefit from the installed technical solutions but pay for them once we see tangible savings over time. Such flexibility is a key factor and means it is a risk-free option for us. We are happy with the results so far and are keen to examine where else we can extend the programme.”
With the programme fully underway, Pilkington are already on target to achieve £340,000 in energy cost savings annually across its UK operations.
A great example of how an innovative and partnership-based approach to technical solutions and investment, can generate tangible benefits for manufacturers, such as Pilkington, who are keen to address important areas like energy management, without compromising capital expenditure budgets.