ASTRUM CUTS ELECTRICITY BILL IN HALF THANKS TO CARBON TRUST FUNDING

County Durham steel components manufacturer Astrum is set to slash electricity usage at its foundry by more than half and save itself over £80,000 a year thanks to a £400,000 interest-free loan from the Carbon Trust.

The loan is the largest sum awarded so far from the Carbon Trust’s £100m Big Business Refit – a drive to provide small and medium businesses with zero-cost capital to invest in new high performance, energy efficient equipment.

Astrum, which makes steel components for tanks and heavy duty earth moving vehicles, will use the money to replace its ageing air compressors.  Not only will the new equipment halve the company’s energy use and increase productivity, but it will also reduce its carbon emissions by over 600 tonnes a year.

Over 800 UK businesses have received more than £30m to scrap their old, energy guzzling equipment since the Big Business Refit launched in September 2009. The Carbon Trust has now announced it is to increase the maximum level for its zero-interest unsecured loans to £500,000 following unprecedented interest in high value loans in the last three months.

Mike Hutchinson, Operations Director at Astrum, said: “Our compressed air system is critical to the performance of our plant and the quality of the products we produce. The Carbon Trust money allows us to accelerate our investment plans and install a system that will not only cut energy costs, but will also improve the efficiency of our business. The loan will pay for itself within four years through energy savings, and has provided a cost effective and hassle-free way for us to upgrade crucial equipment.”

Astrum identified the savings opportunity for the new system, and compressor efficiency specialist, Air Energy Management, developed a bespoke system to ‘switch off’ air compressor drive motors, where possible. The system has reduced the demand on compressed air, and replaced old, large air compressors with two more efficient smaller Compair compressors. Low pressure drop piping, from specialists Teseo Air Systems; variable speed compressors; and a leak detection programme, all funded by the £400,000 loan, are also being installed.  The system will reduce Astrum’s energy demand by 1,255,000 kWh per annum once the project is completed in early 2010.

Hugh Jones, Director, Solutions, the Carbon Trust, said: “Astrum is a classic example of how zero-interest capital from the Carbon Trust can help firms transform their business. Instead of making a short term fix by simply replacing kit on a like-for-like basis, Astrum saw our offer of interest-free funding as an opportunity to improve its systems and give itself a competitive edge.”

Richard Dainton, Managing Director, Air Energy Management, said: “Businesses should consider the compressed air distribution system before replacing old air compressors. Rather than designing a system to meet the existing air demand, our unique design approach is focused on reducing overall factory air consumption. This enables companies to use smaller air compressors, which consume less electricity. Using the Carbon Trust loan, we have developed a system that will save Astrum 50% more in energy costs than if they had settled for a conventional system design.”

Sean Connolly, Managing Director of Teseo UK, said: “Our aluminium pipe sections are leak-free, lightweight and, due to higher flow rates of a smooth profiled aluminium tube (typically 30% higher than steel), have a very low pressure drop across the system making them a more efficient compressed air delivery system than other offerings on the market. This provides a cost-saving from day one.”

Colin Mander, Managing Director of CompAir UK said: “At Compair, reducing compressor cost of ownership is our primary goal. The two variable-speed compressors supplied are configured to match air supply to plant demand, so Astrum is assured of maximum energy performance at all times. In addition both machines are supplied with our Assure extended warranty as standard.”

The Big Business Refit is expected to help up to 3,000 UK businesses cut their costs by £40m a year, and reduce annual carbon emissions by 26,000 tonnes of C02 a year. 

To find out more about The Big Business Refit, or to apply for an interest-free, unsecured loan, businesses should visit www.bigbusinessrefit.co.uk or call 01865 885 873.