© 2012 JRP Solutions Ltd

The information in this document is the property of JRP Solutions Ltd and may not be copied or communicated to a third party, or used for any purpose other than that for which it is supplied without the express written consent of JRP Solutions Ltd. This information is given in good faith based upon the latest information available to JRP Solutions Ltd, no warranty or representation is given concerning such information, which must not be taken as establishing any contractual or other commitment binding upon JRP Solutions Ltd or any of its subsidiary or associated companies.

What does ESOS mean for your business?

George Richards

Discussion Framework

• Who are JRP?• What is ESOS?• Cost burden or opportunity?• Making ESOS work for your business• Summary• Any Questions?

Who Are JRP?

Ian MastersOperations

George RichardsFM/Energy

Jes RutterFM/Energy

Derek LowtherEnergy

Jo HorneCarbon

Management

Peter LaidlawEnergy &Projects

Owen JonesEnergy &Projects

Julian WellsFM/Energy &

Projects

George BarnesGraduateTrainee

Kevin StephensEnergy & Carbon

Management

Rob QuickIT

Damian MagillEnergy & Projects

Lorraine RutterISO systems

and CI

Dan SmithEnergy & Carbon

Management

What Do JRP Do?

OverviewJRP Solutions are one of the UK’s leading energy specialists that help industrial and commercial businesses:-

Optimise costs Improve security of supply Reduce energy use Reduce carbon emissions Mitigate risk Ensure legislative compliance

ESOS Specific RPEC Registered Lead Assessors ESOS Digital Tool All audited sites have their current and potential energy

performance certified using an A-G rating Energy Activator® - innovative web based project management

tool using a rigorous gated process and providing access to all project data incl. financial performance

Who Do We Work With?

Customer Example 1 – Global Power Systems Manufacturer

JRP’s InvolvementInitial involvement 1999UK Energy Management partner since 2003

Present Day Energy Strategy Development Energy Awareness Training Energy M&T across all RR European businesses EUETS & CCL Management & Administration Project Management Process Energy Certification Renewable Energy Feasibility Studies Energy Procurement advice Energy Surveys & Building Energy Certification

Customer Benefits

Customer Benefits Energy consumption reduced by 29.6% since 2003 (against a 40%

increase in production) £1m annual savings from negotiation of new CCAs Energy savings projects delivery £8m in last 3 years 21% reduction in CO2 emissions since 2003 Legislative Compliance Cost avoidance

“JRP Solutions as an organisation fits very well with RR. The relationship between the two companies has been developed well to the benefit of both businesses” – Group Energy Manager

ESOS

Article 8 - UK

Energy Saving Opportunities Scheme (ESOS) Applies to all non SME businesses (turnover >€50m and/or 250+ employees or part of a group of companies that is) Energy audit of 90% of total energy used must be completed by

December 2015 – NOT 90% of sites! Includes energy used in buildings, processes and transport Data for 100% of energy must be collated (pre existing data may be used

provided it covers all required elements within the stated time period) Audit will identify improvement opportunities c/w Life Cycle Costs Register of Lead Assessors published on EA website Scheme administrators are the Environment Agency Max penalty of £90k for failure to comply

Making ESOS Work For Your Business

12 lines 40,000 tonnes output Key Issues:

Lack of energy focus, no Energy Plan or Continuous Improvement Plan

• Limited data• Wasted energy and excessive costs• Energy in product waste

Energy accounts for approximately 20% of total operating costs

Projected Cost Of Inaction

2013 2014 2015 2016 2017 2018 2019 2020 2021 20220

0.5

1

1.5

2

2.5

3

3.5

GasPowerTotal

£m’s

Based upon 2012 costs of Gas @ 2.5p/kWh Power @ 8.0p/kWh

Proportional Representation

2 process linesWarehouse

8 AssetsCommon Utilities

1

19

BECWarehouse

technology overview

Other lines

detail slices across lines

Line 1 – View Of Ovens

4 x AECs1 x PEC

26 opportunities

Line 1 - Heat Recovery

Heat Recovery

Savings £20.3kPayback 1.5

years

Line 19

4 x AECs1 x PEC

35 Improvement Opportunities

Behavioural Change

Close Oven Doors

Savings £600 Payback 0

years

Warehouse – General View

Replace open ceiling

£13k savingsPayback 1.15

years

1 x BEC8

Improvement Opportunities

Utilities

DecentraliseSavings £250,000 pa

Payback 0.5 year

11 Improvement Opportunities

Example Summary

• Focused upon: – 2 distinct process lines– 8 individual assets– Common utilities– Warehouse

• Uncovered 80 improvement opportunities (hard & soft)• Site wide implementation would reduce energy consumption by

41%• Energy costs would be reduced by >£840k per annum• Saving 117,000 te CO2

• All improvement opportunities (ideas and tangible projects) are captured and managed using Energy Activator®

Use the right tools

Energy Initiator® Software auditing tool Certifies current & potential energy performance Captures improvements Provides visible evidence

ESOS Digital Tool Central repository for data & docs Easily updated for subsequent Phases of ESOS Acts as Evidence Pack

Energy Activator® Innovative Energy Project Management Web based Gated process 24/7 access to all project data & progress Automatic reporting

Summary

• ESOS applies to all non SME businesses in the UK• Qualification date 31st December 2014• Compliance date 5th December 2015• Key points:-

– Identify the right Lead Assessor for your business– Ensure they have the right tools and relevant experience– Work closely with your Lead Assessor to agree the scope and methodology– Allow sufficient time to collate required data– Implementation does not always require capital investment– Maximise the benefit of ESOS compliance i.e. implementation– Consider ISO 50001 certification prior to ESOS Phase 2 in 2019

• Any questions?

© 2012 JRP Solutions Ltd

The information in this document is the property of JRP Solutions Ltd and may not be copied or communicated to a third party, or used for any purpose other than that for which it is supplied without the express written consent of JRP Solutions Ltd. This information is given in good faith based upon the latest information available to JRP Solutions Ltd, no warranty or representation is given concerning such information, which must not be taken as establishing any contractual or other commitment binding upon JRP Solutions Ltd or any of its subsidiary or associated companies.

Thank You

Thank you

Revision Record

24

REVISION RECORD

Issue Date Author Checked by Approved by

1 10th May 2015 George Richards Ian Masters Jes Rutter