Fullers could cut $250,000 from annual energy bill

Audit reveals Fullers could cut $250,000 from annual energy bill

Fullers Group Ltd, an Auckland tourism business that operates passenger ferry services on the Waitemata Harbour, has the potential to cut more than $250,000 off its annual energy bill and help the environment by introducing simple energy saving initiatives.

The cost savings were identified in an energy audit of five Fullers’ vessels as part of the Tourism Energy Efficiency Programme (TEEP), a national programme offered by the Tourism Industry Association (TIA) and the Energy Efficiency and Conservation Authority (EECA) to help transport and accommodation tourism businesses reduce energy consumption and carbon emissions.

TIA Chief Executive Tim Cossar says the TEEP energy audit found that Fullers already had good energy efficiency measures in place given the constraints of maintaining a high-speed ferry service with a fixed schedule. But, its annual energy bill could be reduced by over a quarter of a million dollars (about 7% of its annual energy bill) and carbon emissions cut by 715 tonnes.

“The savings identified are primarily associated with operating vessels at a slightly slower speed when appropriate, applying new technology foul release coatings on vessels and propellers, and improving the efficiency of vessel lighting.”

The total cost of implementing the energy efficiency improvements recommended by the TEEP energy audit was between $100,000 – $150,000.

“With potential annual savings of quarter of a million dollars, Fullers would achieve payback in about six months, which is an excellent return on investment,” says Mr Cossar.

Fullers Group Ltd CEO Douglas Hudson says the company’s participation in the TEEP energy audit is a reflection of its drive towards energy conservation and reducing its carbon footprint.

”We are pleased with the outcome of the audit and it is heartening to see evidence that our efforts are already making good progress. In terms of vessel fuel efficiency, the audit identified the design and condition of propellers as some of the most important factors. New propellers have recently been purchased for some of the vessels and their effect on performance will determine the decision whether to upgrade propellers on other vessels. We are also already using antifouling systems with great results and recognise the opportunity to trial some of the upgraded, more advanced products,” says Mr Hudson. “We are also carrying out other conservation initiatives including recycling bins on all vessels, more efficient usage of water and measures to calculate and reduce our carbon footprint.

“In terms of making savings associated with operating some vessels at a slower speed on the Waiheke Island service, we definitely support and have been implementing this recommendation, although it must be noted that this is not always feasible, as we are restricted by the constraints of operating a high speed service and fixed timetables, and ultimately the need to satisfy our customers.”

EECA Chief Executive Mike Underhill says saving energy reduces costs and helps make businesses more competitive, adding many tourism businesses are leading the way in demonstrating the numerous benefits of good energy management.

“Energy savings translate to an improved bottom line and allow operators to promote their business as more environmentally aware - a key selling point in today’s market,” says Mr Underhill. “Through the TEEP energy audits, EECA and TIA wanted to create a simple and practical path with mentoring and assistance to help save energy and reduce emissions. With minimal investment up front, participating companies have all found savings opportunities, the majority of which pay for themselves within two years.”

In 2008-2009, TEEP audited 25 accommodation and tourism businesses and found that significant savings could often be made for little or no investment, says Tim Cossar.

“The audits found on average each business could save 15% of energy consumption and 15% of energy costs by introducing a variety of measures around things like heating, lighting, water use, and changing energy plans or providers. More than half those savings could be achieved with less than one year payback on investment.”

Other savings required a more significant financial outlay, for example purchasing heat pumps or converting to solar power. However, the reductions in energy consumption and dollars saved over the medium to long term could total in the hundreds of thousands of dollars.

Mr Cossar says the tourism industry recognises it must adopt responsible business practices to minimise its impact on the environment.

“Tourism is one of New Zealand’s top foreign exchange earners, worth $59 million per day, and our environment is the primary reason that international visitors come here. Energy efficiency has been just one of the avenues that the industry is engaging with, along with waste, water, community and conservation initiatives.”

He says the TEEP energy audits have demonstrated that good energy management will not only reduce energy consumption and harmful carbon emissions, it will save businesses money and can give them a marketing edge over competitors that aren’t as environmentally-minded.

TEEP was first developed as a regional pilot in 2008 offering a strong incentive for tourism businesses to save energy, improve profitability and help to conserve the natural environment at the same time. The pilot was extended into a national programme for 2009. Participating businesses received a detailed energy audit identifying potential dollar and energy savings (at about half the usual price) and mentoring and assistance in implementing energy saving opportunities. Read the TEEP case studies on TIA’s website http://www.tianz.org.nz/main/tourism-energy-efficiency-programme/.

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