How can the Manufacturing Industry go Green by 2050?

 

If you run a manufacturing business and want to go green, you may be struggling.

It seems that capex (capital expenditure) constraints, and the rising costs of mainstream energy options, make it difficult for many companies to implement major changes to their operations in time for the 2050 deadline. But a recent report by Aggreko found that a decentralised energy solution might just be the answer.

The cost of energy
Aggreko’s report found a staggering 37% rise in the cost of energy for manufacturers in the past five years. From their survey sample, 26% of those asked said that up to 20% of their costs were energy consumption. Over half believed that the cost of energy was impacting competitiveness in their industries.

What is decentralised energy?
It’s energy that’s not generated on the main grid, such as wind power, solar, geothermal and biomass energy. Decentralised energy can serve to cut both carbon and costs, providing manufacturing businesses with an affordable solution to the government pledge.

While many of those surveyed could see a problem with their current energy solution, they were reluctant to initiate the change to decentralised energy for reasons including cost and lack of technical resource. This was despite being mindful of the benefits of lower overall energy costs, security and sustainability.

Solar energy
Toward the end of 2016, solar energy became the cheapest source of energy in the world. In the past, there were concerns about the supply lasting during the night and periods of bad weather, but solar energy is becoming increasingly efficient for powering large scale commercial factories.

Capex constraints
Unfortunately, 38% of those surveyed – including manufacturing industries – reported that their requests for investment into decentralised energy were turned down due to capex restrictions. Aggreko suggests that those who were previously turned down could consider long-term hire solutions to avoid capex constraints – a concept traditionally rejected in the UK industrial landscape.

Aggreko’s suggestion could help to bridge the gap in enabling businesses to access new technology, lower their costs and achieve greater energy security.

Wherever your business is on the pathway to going green, having the right insurance is crucial. Is your machinery correctly insured, or are you at risk from environmental liability issues?

To find out more about what insurance you may need to safeguard your business, do get in touch.