Simple Energy Efficiency Measures Saves R1million in Electricity Costs for Specialist Valve Manufacturer Over Five Years

With electricity costs on the rise, business owners are feeling the pressure.Here is how business owners can be more energy efficient  and save costs along the way.

Specialist valve manufacturer, Zimmermann & Jansen South Africa has embarked on an energy efficiency drive in partnership with the Private Sector Energy Efficiency (PSEE) programme which will see the Specialist valve manufacturer, Zimmermann & Jansen South Africa has embarked on an energy efficiency drive in partnership with the Private Sector Energy Efficiency (PSEE) programme which will see the business reduce its annual electricity costs by at least  R172 000, while dramatically reducing its carbon emissions.  Over the next five years, this translates into approximately R1million in savings on electricity when one takes into consideration future electricity cost increases.

The PSEE programme is an initiative of the National Business Initiative (NBI) which aims to make South African businesses more energy efficient, and in turn, more sustainable.  In June 2013, the NBI was awarded £8.6-million (more than R150-million) by the UK Government through its Department for International Development (DFID) to implement the PSEE as a countrywide programme of support for energy efficiency improvement in the private sector. The programme is supported by the South African Department of Energy and technical support is provided by the Carbon Trust, leveraging its experience of similar programmes in the UK. 

The PSEE conducted a site survey at Zimmermann & Jansen SA in June 2014 to identify areas where it could improve energy efficiency and save on costs.  Consulting company Madikela Engineering Solutions assisted with the survey in terms of providing specialist insights into the business processes to ensure any planned efficiency initiatives would not disrupt its production capacity. Zimmermann & Jansen is part of IMI Critical Engineering which is a London stock listed company with more than 9000 employees worldwide. Zimmermann & Jansen specialises in the manufacture of heavy-duty valves used in the petrochemical, iron and steel markets. It also has a severe service division, which specialises in supplying mission-critical valves and control systems in the oil and gas and power generation markets.

“The PSEE report showed that for a once-off capital investment of R70k and various other measures which cost us nothing, we would be able to achieve annual savings of at least R172k each year.  In little more than a year our capital outlay will have been paid for through the energy savings, and thereafter its money back on the bottom line all the way,” says Hennie Sonnekus, Works Manager of Zimmermann & Jansen.

“The engineering industry is energy intensive so achieving efficiencies in order to remain competitive is essential.  Added to this, the month long strike action in the metal industry earlier this year requires that we meet the resultant production backlogs through overtime, which means unplanned additional wages which impacts on the operational costs of the business. When we engaged with PSEE, we soon realised that proactively identifying opportunities to immediately enhance energy efficiency would be the best means of alleviating some of our cost pressures while redirecting the savings back into the business,” adds Sonnekus. 

The PSEE energy audit identified leaks in the compressed air systems that Zimmermann & Jansen use for their pneumatic tools, which would mean that more electricity would be needed to replace the lost compressed air.  The PSEE also identified that Zimmermann & Jansen’s power factor was low at 0.67, contributing to the high demand charges they were paying for their electricity supply.  Simply put, in an electric power system, a load with a low power factor draws more current than a load with a high power factor, for the same amount of useful power transferred. In other words, a lower power factor means that more useful energy is wasted, and because of this, electrical utilities charge a higher cost to industrial or commercial customers where there is a low power factor.

The company tagged and repaired the leaks in the compressed air system and also purchased a power factor correction unit. Zimmermann & Jansen’s power factor improved from 0.67 to 1 after the capacitor banks were installed and their compressed air system is operating far more efficiently. 

"We are delighted with the energy efficiency improvements and the cost savings.  Zimmermannn & Jansen has a strong reputation for its engineering expertise, has market-leading brands and technologies, a good aftermarket business, new products under development and strong customer relationships.  Now we can add sustainability and an improved carbon footprint to the mix too, important considerations for any business wanting to be a more environmentally responsible citizen,” adds Hennie Sonnekus of Zimmermann & Jansen.

According to Lesego Gaegane, PSEE Key Account Manager:  “Zimmermann & Jansen have also incorporated energy efficiency measures in their maintenance programme to ensure process and equipment reliability.  The company is highly proactive and passionate in their pursuit of sustainable energy management as a key business strategy.” 

The PSEE programme assists companies of all sizes to improve energy efficiency, save costs and enhance long-term business competitiveness and sustainability. These subsidised services are provided by the PSEE through experienced third-party consultancies with competencies in energy strategy, green buildings, HVAC, pumps, motors, lighting, compressed air and industrial processes, contracted by the PSEE and overseen by a team of professional programme managers and account managers.

By coming on board with the PSEE, participating companies will have access to subsidised, professional consultants to assist with the establishment of energy consumption baselines, implementation plans, data gathering and benchmarking against global best practices, that will combine to create a sustainable business environment that places energy efficiency at its core, and most crucially, much of which can be achieved without any capital investment upfront. 

Companies interested in participating in the PSEE programme, receiving more information on energy efficiency or subscribing to the PSEE newsletter are invited to register their interest on the PSEE website www.psee.org.za, call 080 111 3943 or send an enquiry to info@psee.org.za