Victoria’s industrial energy use/media... · Victoria’s industrial energy use Improving business productivity In today’s competitive environment, businesses are under increasing

Victoria’s industrialenergy use

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> Established 20 new partnership projects throughthe Business Energy Innovation Initiative (BEII)that will deliver over 460 000 gigajoules ofenergy savings, abate over 130 000 tonnes ofgreenhouse pollution and leverage $38.7 millionof private investment

> Progressed partnerships signed and establishedin 2003–2004 toward delivery of energy savingsof over 785 000 million gigajoules

> Facilitated installation and commissioning ofequipment delivering 19 100 gigajoules of actual energy savings

> Expanded the BEII program to include small-to-medium enterprises, with two partnershipprojects established during the year

> Identified 1.2 million gigajoules of potentialenergy savings through the partnership projectsacross the industrial sector, the equivalent ofremoving over 52 500 cars from the road

Table of contents40 Improving business productivity

42 Project partners

50 In-depth:

50 BlueScope Steel Ltd

51 Alsco Pty Limited

51 DMG Industries Ltd

52 Staff profiles

53 Future directions

Key highlightsIn 2004–2005 the Sustainable Energy Authority

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Victoria’s industrial energy use

Improving businessproductivityIn today’s competitive environment, businessesare under increasing pressure to improve overallproductivity and performance. This is particularlythe case in the manufacturing sector wherecompanies compete in an ever increasing global market.

In Victoria, manufacturing is a major contributorto the economy and a key provider of jobs. Italso consumes close to 30% of Victoria’s end-use energy, with consumption growing at over3% per annum.

The Sustainable Energy Authority has identified anumber of key manufacturing sectors whereconsiderable opportunities exist to improveenergy productivity. These include the food andbeverage, heavy machinery and equipment,metal products and petroleum, plastics and thechemicals and associated products sectors.

The Authority works directly with leaders in theseindustries to demonstrate the business case forinvesting in innovative sustainable energysolutions through the Business EnergyInnovation Initiative (BEII).

Twenty new partnership projects wereestablished under the BEII in 2004–2005 withpotential energy savings of over 460 000gigajoules, and leveraging $38.7 million inprivate investment.

As at 30 June 2005, a total of 35 partnershipswere in place (figure 15) that will realise annualenergy savings of 1.2 million gigajoules andgenerate over 90 000 megawatt hours ofenergy from cogeneration over the next fiveyears as illustrated in figure 16.

These projects will also reduce greenhousepollution by over 225 000 tonnes per annum.

Eight of these partnerships are undertakingcogeneration projects which are demonstratingthe business case for greater industry use ofdistributed power.

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This section highlights the activities and achievements of the Sustainable Energy Authorityin demonstrating the benefits of innovative commercially-viable sustainable energysolutions to deliver productivity improvements with industry partners.

Figure 15Location of BEII project partnerships as at 30 June 2005.

Figure 16Projected annual energy savings of current BEIIpartnerships to 2010.

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The BEII projects display significant potential forreplication. The current suite of sustainableenergy solutions demonstrated within theportfolio could be replicated across industrysub-sectors with potential saving of 29petajoules per annum of energy by 2020. Thesereplicated savings represent 15% of all energycurrently consumed in Victoria’s industrial sector.

The opportunity for replication of thedemonstrated technologies across the sectorhas been promoted to industry through a seriesof seminars and will be further developed in2005–2006.

This year BEII was extended to include small-to-medium enterprises. These offer smallerproductivity gains compared to largerbusinesses but have a higher potential foruptake in the longer-term. Information sessionswere held with four industry associations acrossthe baking, laundry and textile, metal finishersand printing industries, and two new projectswere established with small-to-mediumenterprises in 2004–2005.

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Figure 17The Authority is working with industry leaders to deliver productivity improvements while improving energy performance.

Alsco Pty Ltd

New project partners underBEIIThe Authority established 20 new projectpartners to deliver a range of sustainable energyprojects across the manufacturing sector. Theyinclude productivity improvements tomanufacturing systems and processes, theestablishment of cogeneration facilities to provideheat and power and the production of biodiesel.

These projects have the total potential to save 5.4million gigajoules of energy per annum and abateover 122 000 tonnes of greenhouse pollution.

Midfield Meat International—BiodieselMeat and meat processing

Midfield Meat International is investigating abiodiesel plant at its Warrnambool rendering plantin partnership with the Authority. The biodiesel willbe produced from tallow, a solid fat product.Biodiesel is a cleaner fuel than the petroleumdiesel it will replace.

Projected annual impact:

> 45 600 gigajoules of energy saved

> 1700 tonnes of greenhouse pollution abated

Stawell Gold Mines Pty Ltd.Metal ore mining

The partnership with Stawell Gold Mines isinvestigating and implementing an innovativeenergy efficiency approach for its oreprocessing facility. The project involves theremoval of the waste steel grinding balls fromtheir ore processing ball mill in order to reducethe mill’s energy usage.


> 4000 gigajoules of energy saved


Gippsland Water Water supply, sewerage and draining services

The partnership with Gippsland Water isinvestigating the development of a biogasfuelled cogeneration plant utilising biogasreleased from sewage during the treatmentprocess for the Gippsland Water Factory in theLatrobe Valley.

The project will upgrade wastewater treatmentto address odour issues and treat wastewater toa ‘fit for purpose’ standard for subsequent reuseby local industry.


> 10 800 gigajoules of energy generated


Stawell Gold Mines Pty Ltd Amcor Flexibles Australasia AGL

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BEII Project partners

Amcor Flexibles AustralasiaPrinting and services to printing

Amcor Flexibles is Australia’s largest producer offlexible packaging. The partnership will achievesignificant reductions in energy use when dealingwith emissions from their printing processes. Theproject will also help Amcor to reduce its wastegoing to landfill by 80%.




AGLElectricity distributor

The Authority is working with AGL, one ofAustralia’s largest energy suppliers, to conduct atechnical and economic feasibility study for a4.4 megawatt low pollution cogeneration unit forone of its major clients, Symex Holdings Ltd.



> 22 000 tonnes of greenhouse pollutionabated

The Australian Steel Company(Operations) Pty LtdIron and steel

The Australian Steel Company (Operations) PtyLtd, a subsidiary of Smorgon Steel Pty Ltd, aleading Australian steel maker, is working withthe Authority to implement a real-time management system for hot steelhandling. The project will result in significantenergy savings in steel production. The projectis in the installation phase and the new systemshould be operational in September 2005.




George Weston Foods Limited (Don Smallgoods) Meat and meat products

The partnership with George Weston Foods (Don Smallgoods), a major Australian small goods supplier, is working to achieve significantreductions in energy and water use required for thethawing of meat prior to processing. Equipmenthas been ordered and installation of equipment isexpected to commence in early 2006.




Carter Holt HarveyLog sawmilling and timber dressing

Carter Holt Harvey is Australasia’s leading forestproducts company with significant interests inwood products, pulp, paper and packaging.The Authority is working with Carter Holt Harveyto investigate the most energy efficientapplication of renewable energy, includingcogeneration, at their Victorian sites.



> 31 000 tonnes of greenhouse pollution abated

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CRF Colac Otway Pty Ltd/ Otway FreshMeat and meat processing

CRF (Colac Otway) Pty Ltd is developing anenergy efficient industrial refrigeration system atits new cold storage facility in Colac. The use ofcarbon dioxide as a refrigerant will reduceenergy use by 27% compared to a standardammonia system, and allow increasedproduction rates. The project is currently in theinstallation phase and the facility shouldcommence operation in September 2005.




North East Water/Carbon PartnersWater supply, sewerage and draining services

The Authority is working with North East Waterand Carbon Partners to investigate thedevelopment of a Wodonga biogas-fuelledcogeneration plant utilising anaerobic digestionof organic waste streams from the City ofWodonga and surrounding region. Theproposed combination of a wastewatertreatment facility and a regional solid organicwaste reprocessing centre will be the first of itskind in Victoria.




Lafarge Plasterboard Pty Ltd Cement, lime, plaster and concrete

Through its partnership with LafargePlasterboard, a leading Australian manufacturerof plasterboard, the Authority is working toachieve significant reduction in energy and wateruse in the plasterboard drying process. This willbe achieved through the use of an innovativeheat recovery system. The heat recoverysystem is expected to be operational in early2006.




Melbourne Water CorporationWater supply, sewerage and drainage services

Melbourne Water and the Sustainable EnergyAuthority are working together to apply aninnovative technology to optimise the efficiencyof five of its major pump stations, therebyreducing overall pumping energy costs.Melbourne Water is a significant energy user inVictoria and pumping accounts for 60% ofenergy use. A key part of the project will involvecapturing and transferring the learnings obtainedto other Victorian water authorities.




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Close the Loop Ltd Nissan Casting Pty Ltd Hunt Boilers


Close the Loop LtdPrinting and services to printing

Consumables recycling manufacturer, Close the Loop Ltd, is installing solar thermaltechnology to provide heat for a distillationprocess through the partnership. Thetechnology will enable recapture of water andchemicals for a separation recycling processplus concentration of ink.




E-Laundry Drycleaning Pty LtdOther personal services

The Authority is working with E-LaundryDrycleaning Pty Ltd, trading as South PacificLaundry, to implement a number of sustainabletechnologies in their new facility to significantlyreduce their use of energy, water andproduction of waste. The project will also reduceE-Laundry’s water usage and waste disposalrequirements by 45%.




Australian Arrow Pty LtdElectronic equipment manufacturing

Australian Arrow Pty Ltd is being supported todevelop cutting-edge, low energy intensitycooling and dehumidification technology. Thetechnology will be used in climate control systemfor a clean room in new automotive electronicsproduction facility currently under development.




Nissan Casting Pty LtdMotor vehicle and parts

Nissan Casting Australia Pty Ltd, one ofVictoria’s car parts manufacturers, and theAuthority are investigating new technologyoptions for improving the energy efficiency of itsexisting melt furnaces. The application of a newtechnology could save Nissan Casting AustraliaPty Ltd up to $250,000 each year through lowerenergy use, increased productivity and lowermaintenance costs.




Hunt Boilers,(A Division Of Forbes (Aust) Pty Ltd)Industrial machinery and equipment

Hunt Boilers are a major Victorian manufacturerof industrial hot water systems. The Authority ispartnering with Hunt Boilers to introduce a newenergy efficiency technology with the potential tocut energy costs and greenhouse pollutionacross industry. Hunt Boilers will install the trialunit at CRF Colac Otway, a meat processingplant in Colac, to demonstrate the technology.The unit is expected to be operational byOctober 2005.




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Ongoing BEII projectsThe Sustainable Energy Authority is drivingsustainable energy outcomes with Victorianmanufacturers through a number of existingpartnerships. The Authority ensures theachievement of critical milestones by providingaccess to skills and expertise to partners tosupport delivery and by monitoring projectprogress. These projects will deliver over 785 000 gigajoules of energy savings and over98 000 tonnes of greenhouse pollution.

The range of projects include innovativeelectricity generation in the food manufacturingsector, reducing energy losses in metal smeltingand production of fuel for industrial furnacesfrom manufacturing waste.

Murray Goulburn Co-operative Company Limited(Dairy product manufacturing)




Alcoa World Alumina Australia—Portland Facility(Basic non-ferrous metal manufacturing)




Blue Circle Southern Cement Ltd(Cement, lime, plaster and concreteproduct manufacturing)




Robert Bosch (Australia) Pty Ltd(Motor vehicle and parts manufacturing)




Collex Pty Ltd(Plastic product manufacturing)




Pioneer Road Services Pty Ltd(Cement, lime, plaster and concreteproduct manufacturing)




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Blue Circle Southern Cement Ltd Collex Pty Ltd Midfield Meats International


BlueScope Steel Limited(Iron and steel manufacturing)

See page 50 for in-depth information.




VillaWorld(Non-manufacturing)




Maribyrnong City Council(Non-manufacturing)




Midfield Meats International—Cogeneration(Meat and meat product manufacturing)




City of Greater Bendigo(Non-manufacturing)




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Projects completed duringthe year under BEIIThree projects have been completed throughthe Business of Energy Innovation Initiative. Intotal, these projects are saving 7700 gigajoulesof energy and over 1800 tonnes of greenhousepollution.

Frigrite Refrigeration Pty LtdSupermarket and grocery stores

During the year, the Authority worked withFrigrite Refrigeration to design, build and testequipment to reduce the energy use ofrefrigeration in Australian supermarkets.

The equipment is now installed and in operationin a major supermarket facility. The energyconsumption data for refrigeration is beingcollected and analysed prior to roll-out of thetechnology across Victorian supermarkets.




DMG Industries Pty LtdMotor vehicle and parts

DMG Industries is one of Australia’s largestsuppliers of plastic parts to the automotiveindustry. The Authority’s partnership with DMGindustries achieved significant reductions inenergy use and plastic rejects in theirmanufacturing process, through centralisation ofthe control of production lines.

Since completion of the project, efficiency hasincreased by approximately 12% and there hasbeen a reduction in rejects of 67%.

See page 51 for in-depth information.




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Frigrite Refigeration Pty Ltd DMG Industries Pty Ltd Alsco Pty Limited


Alsco Pty LimitedOther personal services

The Authority is working with Alsco Pty Limited,Footscray Branch, to achieve significantreductions in energy use when generating largevolumes of hot water used onsite. A highlyefficient ‘Direct Contact’ water heater has beensuccessfully installed and is performing at up to99% overall efficiency.

The project will help Alsco Pty Limited toimprove their operations by ensuring that hotwater is always available at call and at the righttemperature and has allowed Alsco todecommission one of its two steam boilers. See page 51 for in-depth information.




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Potential project benefits

Energy: 16 500 gigajoules reduction per annumEmissions: 4000 tonnes of greenhouse pollution abatedOther: Recycling of 250 megalitres of water and a 75%reduction in water emitted into Western Port Bay.

> BlueScope Steel

The Sustainable Energy Authority is working with BlueScope Steel to investigate the development of innovativesystems for treating waste water using less energy.

BlueScope Steel operates a plant at Hastings, Victoria, which produces cold rolled, metallic coated and prepainted steel coils. The steel mill operates 24 hours a day and is an intensive energy user. The manufacturing processes requires up to 200 million litres of water per annum.

The partnership with BlueScope Steel has identified technology to replace the energy intensive chemicaltreatment of this water with a biological treatment process. The chemical process requires steam for heat andthe consumption of chemicals, whereas the outputs of the biological treatment are a clean water stream and asludge waste that is suitable for composting. A closed-loop system is now being investigated to re-use thewater onsite.

The first stage of the feasibility study was completed in 2004–2005 and involved investigating the specifictreatment needs of BlueScope Steel’s Hastings plant and comparing it to leading international water treatmenttechniques. This stage identified biological treatment as a technically and commercially viable alternative to theenergy intensive chemical process.

In-depth

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> Alsco Pty Limited

Alsco Pty Limited runs a commercial laundry operation in Footscray, Victoria. The Sustainable EnergyAuthority is working in partnership with Alsco Pty Limited to achieve significant reductions in energy usedto generate large volumes of hot water required onsite.

Alsco’s commercial laundry at Footscray provides laundry and linen services to a diverse customer basefrom Australia and New Zealand. The laundering process requires large volumes of hot water and istherefore energy intensive. The laundry was equipped with a gas-fired boiler to produce steam thatindirectly heated water for use in the process.

The partnership with Alsco Pty Limited was formed under the extension of the Business EnergyInnovation Initiative in 2004–2005 to include small-to-medium enterprises. The project identifiedalternative energy efficient systems to generate hot water for use in the laundering process and involvedredesigning the system so that it is non-pressurised.

The innovative ‘Direct Contact’ water heating system identified uses 10% less energy to generate therequired hot water. Alsco Pty Limited installed and commenced operating the direct contact systemduring 2004–2005. The system operates at over 99% efficiency and provides hot water on call at thecorrect temperature. The new system has also allowed Alsco to decommission one of its two steamboilers. This provides productivity gains for the company as well as decreasing the energy intensity ofthe process.

Project benefits

Energy: 3600 gigajoules saved per annumGreenhouse: 230 tonnes of greenhouse pollution abatedOther: Significant productivity gains.

Project benefits

Energy: 12 500 gigajoules saved per annumGreenhouse: 1340 tonnes of greenhouse pollution abatedOther: Significant reductions in plastic rejects and production cycle times. Reduction in overall electricity peak load.

> DMG Industries Pty Ltd

The Sustainable Energy Authority is working with DMG Industries Pty Ltd (DMG), one of Australia’s largestsuppliers to the automotive industry of dashboards, instrument panels, bumpers and grilles, to achievesignificant reductions in both energy use and plastic rejects in their manufacturing process.

DMG’s operations are based in Keysborough, Victoria. The partnership with DMG achieved significant energyand productivity gains through the centralisation and optimisation of DMG’s control processes. Software wasintroduced to DMG’s plastics injection moulding machinery to centralise the control of production lineprocesses and enable central monitoring.

Productivity gains and energy reductions have been realised through reductions in production line equipmentheating and cooling, automated switch-off of motors that are not in use, and reducing the peak load of DMG’smanufacturing operations.

The BEII facilitated the first stage of the process which involved piloting the centralised control system in onepart of the production line. The hardware for the project is standard and can be bought off the shelf. Controlboxes were integrated into the plant enabling central control of the production line processes via specificallydesigned software.

Installation of the system and commencement of operation was achieved in 2004–2005. Stage one of theproject is now being monitored to report actual energy savings. Improved process control of the injectionmoulding machines has led to efficiency gains of approximately 12%, where more products are able to beproduced using no more energy, and a 67% reduction in rejection of plastic products. Following monitoring ofstage one, the system will be rolled out across the entire plant.

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Leigh Bernoth

Leigh Bernoth is the manager of theBusiness Energy Innovation Initiative(BEII). He joined the Authority in July2003, bringing extensive experience inindustrial processes from the mining andwool industries. Leigh holdsqualifications in applied science and hasover 10 years experience working withindustrial systems. In particular Leighhas worked with the mining industryacross a range of projects to improvethe sustainability of Australian operatingmine sites.

Leigh played a key role in thedevelopment of the BEII demonstrationprogram. In his time with the Authorityhe has also contributed to the VictorianSolar Innovation Initiative through projectmanagement and the development ofIdeas Sheets, available through theAuthority’s website.

Julia Birch

Julia Birch joined the Authority inNovember 2004 to contribute herexpertise in implementing sustainableenergy solutions in business.

Julia moved to the Authority bringingextensive skills in policy developmentand analysis and management of the$10 million Cogeneration Support Fund.

Julia holds engineering and artsqualifications and has recentlycompleted a short course in businessmanagement. She works primarily onthe Business Energy Innovation Initiativeat the Authority, where she is themanager of six partnership projects andhas overseen the revision of theinitiative’s criteria for assessing andassisting cogeneration projects.

Julia also works to support thedevelopment of the Victorian RenewableEnergy Strategy.

Staff profiles

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Rodney Pugh

Rodney joined the Authority inSeptember 2000, bringing extensiveexperience in industrial energymanagement.

Rodney holds qualifications in ChemicalEngineering and Fuel Utilisation and hasworked with industry for more than 20years. Rodney works primarily on theBusiness Energy Innovation Initiative(BEII) as a client manager across arange of industrial projects.

A highlight of Rodney’s work on BEII hasbeen securing a partnership with AlcoaAustralia to improve the energyefficiency of their Point Henry andPortland Facilities.

He has also worked to support thedevelopment of the EnvironmentalProtection Authority’s State EnvironmentProtection Policy (Air QualityManagement).

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Future directions forVictoria’s industrialenergy useAs we make the transition toSustainability Victoria, the Authority will:

> focus on realising broadersustainability outcomes in Victoria’sindustrial sector

> implement and monitor the currentBusiness Energy Innovation Initiative(BEII) partnerships to progressprojects that demonstrate viable andinnovative applications of sustainableenergy technologies

> form new partnerships under BEII withVictoria’s leading manufacturers toexpand the portfolio of demonstratedsustainable energy outcomes

> implement and commence areplication strategy to facilitate wideruptake of sustainable energy solutionsin the manufacturing sector

> facilitate the uptake and replication ofdemonstration projects in themanufacturing industry through thelaunch of a sustainable manufacturingwebsite.

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Victoria’s industrial energy use/media... · Victoria’s industrial energy use Improving business productivity In today’s competitive environment, businesses are under increasing