Product category:
Heating Systems, Controls and Management
News Release from: Ambi-Rad | Subject: Fuel costs spiral on wave of hot air
Edited by the Buildingtalk Editorial
Team on 08 December 2005
Fuel costs spiral on wave of hot air
Industry is juggling spiralling fuel costs, 'green' tax liabilities and emissions reductions - it is time to act, urges David Rock of Ambi-Rad
Is climate change just a lot of hot air? As the 'denial lobby' voice grows stronger, industry is juggling spiralling fuel costs, 'green' tax liabilities and emissions reductions
This article was originally published on Buildingtalk on 5 Oct 2005 at 8.00am (UK)
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It is time to act, urges David Rock of Ambi-Rad .
As the G8 Summit in Edinburgh laboured its climate change agenda (probably to pitifully little effect) there are few crumbs of comfort for British industry.
Traditionally pilloried as the bad boys of environmental damage, they carry the brunt of criticism from the world's climate-watchers.
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In some cases, this is justified, of course.
One high street supermarket chain has, despite a public commitment to cutting its emissions, failed to meet its own reduction target and cut spend on energy saving schemes by around a third.
Its stores consume twice as much energy as the national average.
And this may by no means be an isolated example.
On the other side of the coin, there is the 'denial lobby' - those voices, often powerful influencers of government, who claim climate change is a fiction, or at least not as great a threat as the scientists and environmental pressure groups depict.
Selective deafness to a worldwide, manmade, potentially fixable problem is a poor response and a retrogressive step for the future of the environment.
Between the critics and deniers, industry now faces another factor that threatens to damage its ability to operate and trade competitively - fuel prices.
All fuel prices have risen exponentially in the last year.
Gas prices have been worst affected, driven by record oil prices feeding into the UK via the link to Europe and dwindling UK gas supplies.
In real terms, gas prices have increased by 35.8% in the year to Q1 2005, according to DTI figures.
This percentage increase includes the Climate Change Levy, which boosts the average price by 4.2%.
Large wholesale consumers are feeling the full effect of the gas price hike.
Medium-size consumers are likely to have experienced around a 26% increase, including the Climate Change Levy.
Worryingly, more rises are forecast, some as great as a further doubling of the price of gas by the end of 2005.
The situation highlights industry's weak spot - over-reliance on expensive fossil fuels.
Energy producers are as vulnerable to price volatility as end-users, but have the advantage that they can hand cost increases on.
Where can end-users turn to, if they wish both to maintain economic competitiveness and comply with emissions regulations? Environmental pressure group Friends of the Earth are calling for energy producing companies to 'change to make money from selling us less energy, not more'.
It is difficult to see how this would do anything other than result in smaller amounts of even costlier fuel, but the point has some relevance.
In the face of out-of-control fuel prices, industry can respond by consuming less fuel - that is, by adopting energy efficiency measures and installing the latest fuel-lean technologies within their buildings.
In some respects, industrial consumers are their own worst enemy.
Many continue to fail to see the benefits that fuel efficient technology can bring.
They may choose to ignore those benefits if change poses even the smallest threat to profitability and shareholder value.
In fact, the opposite can often be true - for example, for a relatively small capital outlay, huge savings can be made.
In Ambi-Rad's experience, fuel cost savings ranging from a respectable 25% to a remarkable 70% can be made when energy efficient radiant tube heating is used to replace an inefficient boiler and steam-fed radiator system.
In the case of Matrix International, an engineering company based at Brechin near Dundee, the premises were poorly heated by the original boiler system, particularly since a number of extensions had been added the main building over time.
The company wanted a practical alternative that would provide effective heating throughout the different areas of the factory, while keeping fuel costs down and reducing Climate Change Levy liability.
A total of 50 AR linear and U-tube radiant tube heaters from Ambi-Rad were installed in the production areas, supplemented in low-ceiling research and development and storage sections by Ambi-Rad warm air unit heaters.
The effect is to provide even heat coverage at constant comfort temperatures while keeping fuel consumption to economical levels.
The first year fuel cost saving over the previous system was around 37%.
The government's drive to reduce carbon emissions has forced industry to make substantial changes to building services and operations.
But there are sweeteners too, though plenty of industrial companies seem to be ignoring them.
The Enhanced Capital Allowances Scheme enables end-users who install listed energy-efficient equipment to claim back 100% of capital allowances in the first year.
This includes claims against both the investment and installation costs.
However, alarmingly few companies have realised this tax rebate - they simply haven't claimed what is due to them, partly because of lack of awareness of the scheme.
With such a low degree of awareness of the direct financial benefits of increased energy efficiency - from ECAs, through reduced Climate Change Levy payments and reducing consumption of ever more expensive fuel - industry is not helping itself, or the environment.
It is hardly surprising that industry continues to be regarded as a culprit in the race against global warming.
The time has come to act - not just because the government demands it, or because it is morally the right thing to do.
Now energy efficiency makes sound financial sense as well.
Heating - essential for maintaining personnel comfort and stock condition Protecting vulnerable stock throughout the seasons, and maintaining comfort for personnel is an area where the adage 'prevention is better than cure' applies.
Howard Marfleet of The Ambi-Rad Group explains how the right heating system can help.
Few events could be more disastrous to bottom line profitability than a warehouse full of stock damaged due to preventable circumstances.
An unexpected spell of wintry weather, for example, that hits just as the heating system has been shut down in anticipation of warmer temperatures, is the sort of meteorological blip that can cause temperature fluctuationss inside the building, and can often spell big trouble.
A responsive heating system - one that takes minutes, not days, to get up to temperature - is essential to heading off the worst effects of such a scenario.
But this is an extreme; it should be remembered that the heating system can be a useful tool in general maintenance of the warehouse fabric and environment.
Stock, sprinkler systems and personnel all need to be protected by a well maintained and efficient heating system.
Several methods of space heating are available - each with its own advantages in different types of warehouse applications.
The size, layout and heating/ventilation requirements of each building have to be taken into consideration.
For smaller to medium sized storage facilities, gas-fired warm air heating systems often deliver the greatest benefits.
Suspended at high level, or floor mounted, these heaters - sometimes used in conjunction with a perforated Air Mixing duct - create a warm atmosphere quickly and economically.
They may be used for heating only, heating and ventilation, heating and cooling or to provide summer ventilation - depending on the requirements of the building.
In other words, a very flexible answer to maintaining both internal temperature and good air quality.
Radiant tube heating is ideal for applications with low racking, or for heating packing and despatch areas since it works by warming people and objects in its path, rather than the volume of air.
This makes the task of protecting stock and keeping personnel comfortable both easy and economical.
Radiant heating also burns fuel at the point of use, so there are none of the heat losses usually associated with distributing warmth around a large building.
Combined heating and ventilation systems are often the most economical and preferred option for very large warehouses.
These versatile, high efficiency units gently pressurise the building, ensuring a fresh and warm atmosphere with minimal stratification.
Fully modulating burners provide optimum heat at maximum efficiency - so keeping running costs low.
To ensure warm or cooled air is 'sealed in', an overdoor air curtain is an excellent addition to the maintenance armoury.
The air curtain delivers a 'sheet' of warmed or ambient air across the entire door opening, strong enough to prevent external air entering or internal air escaping, thereby preserving the atmosphere.
Whatever the size or configuration of the warehouse, there is a heating solution to suit it.
The crucial factor is to ensure it is up to the task of maintaining a protective environment before disaster strikes. Request a free brochure from Ambi-Rad ...
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