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Sustainable Business Jonathan Leake Director Business & Built Environment

Sustainable Business Jonathan Leake Director Business & Built Environment. How can we help?. $6.1 million program to assist businesses to reduce costs and boost productivity. Boosting Business Productivity. Energy Assessment Grants Gas Efficiency Grants Material Efficiency Grants

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Sustainable Business Jonathan Leake Director Business & Built Environment

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  1. Sustainable BusinessJonathan Leake Director Business & Built Environment

  2. How can we help?

  3. $6.1 million program to assist businesses to reduce costs and boost productivity Boosting Business Productivity • Energy Assessment Grants • Gas Efficiency Grants • Material Efficiency Grants • Best practice guides • Gas Efficiency Masterclasses (complete) • Refrigeration Efficiency Masterclasses (open now)

  4. Smarter Resources Smarter Business 2012 - 2016 Boosting Business Productivity 2016 - 2019 Boosting Business Productivity • So far: • 511 business participating • 100 audits completed • $58m in savings identified • $11m in savings implemented • Average ROI - 4 years

  5. Energy Assessment Grants Applications close September 28th 2018 Basic Energy Assessment (Type 1) Up to $2000 Implementation bonus Up to $5000 + OR Detailed Energy Assessment (Type 2) Up to $15,000 matched funding

  6. Gas Efficiency Grants Matched funding of up to $50,000 per project • Capital equipment upgrades • Non-routine maintenance and repairs • Fuel switching to a lower footprint fuel • Installation of metering equipment Applications close 28 September 2018

  7. Material Efficiency Grants Detailed Material Assessment Up to $10,000 matched funding + Implementation bonus Up to $3000 Applications close 28 September 2018

  8. Sustainability Victoria has developed six energy efficiency best practice guides: Energy Efficiency Best Practice Guides

  9. Refrigeration Efficiency Masterclasses Free training to assist businesses better manage their refrigeration systems: • 14 August: Broadmeadows • 15 August: Wangaratta • 12 September: Shepparton • 13 September: Echuca • 14 September: Bendigo • 3 October: Geelong • 4 October: Warrnambool • 17 October: Mildura • 23 October: Melbourne • 24 October: Warragul • 25 October: Bairnsdale To register interest: Yolanda.Sztarr@sustainability.vic.gov.au or phone: 8626 8843

  10. Energy efficiency in practice • Burra Foods, Korumburra • Dairy Ingredient manufacturer

  11. Identify savings “We couldn’t believe the amount of savings possible by adjusting billing charges and making control adjustments across our process. Management was extremely happy with the results and we can now move forward with a clear action plan to reduce costs and our environmental footprint.” General Manager of Manufacturing and Supply Chain Action Energy Audit: Burra Foods, Korumburra Use renewable energy $800k p.a saving identified (excluding renewable energy)

  12. Identify savings • Actioned low cost opportunities: • Manage peak demand • Adjusting boiler sequencing • Repair compressed air leaks • Adjust billing charges Action Energy Audit: Burra Foods, Korumburra Use renewable energy $100k p.a saving achieved

  13. Identify savings • 10 year large scale Power Purchase Agreement • Ararat wind Farm Action Energy Audit: Burra Foods, Korumburra Use renewable energy Further 20% saving anticipated

  14. Financing Yoghurt Manufacturer, Victoria

  15. Identify savings • SV grant funding to undertake energy audit • 10 opportunities raised, 6 selected to pursue Action Yoghurt Manufacturer Possible Financing solutions $239K savings p.a identified

  16. Identify savings Action Yoghurt Manufacturer • Solar alone had a 7 year payback, but energy efficiency reduced this to 4.7 years • Vic and Federal subsidies reduced costs by 32% ($140K) • Cash flow still a key barrier to action projects • Tenant not owner. Split incentive Possible Financing solutions

  17. Identify savings • Solar PV + Energy Efficiency lowers ROI from 7 to 4.7 years • Environmental Upgrade Agreement (EUA). Repayments stay with the property • Cash flow positive solution (monthly savings exceed loan repayments) Action Yoghurt Manufacturer Possible Financing solutions

  18. Jonathan.Leake@sustainability.vic.gov.au www.sustainability.vic.gov.au

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