Carbon Trust funding helps Astrum halve power bill

Steel-component manufacturer Astrum will slash electricity use at its foundry by more than half and save more than GBP80,000 a year thanks to a GBP400,000 interest-free loan from the Carbon Trust.

The loan is the largest sum awarded so far from the Carbon Trust's GBP100m 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.

The new equipment will halve the company's energy use, increase productivity and will reduce its carbon emissions by more than 600 tonnes a year.

Since the Big Business Refit launched in September 2009, more than 800 UK businesses have received GBP30m in total to scrap their old energy-guzzling equipment.

The Carbon Trust has now announced it will increase the maximum level for its zero-interest unsecured loans to GBP500,000 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 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 and large air compressors with two more efficient smaller Compair compressors.

Also funded by the loan have been: low-pressure drop piping from Teseo Air Systems; variable-speed compressors; and a leak-detection programme.

The entire system will reduce Astrum's energy demand by 1,255,000kWh per annum once the project is completed in early 2010.

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 per cent 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.

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