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Industry news
Recession hits Severn Trent sales
Thursday, January 29, 2009
Severn Trent has warned that its latest annual revenues will be up to £25m less than the year before, because of firms using less water in the recession.
The company supplies water across the Midlands and parts of Wales, a region that includes a number of Jaguar Land Rover plants that have cut production.
Severn Trent said the closure of High Street stores including Woolworths and MFI had also reduced water usage.
Severn Trent's financial year runs until the end of March.
The firm said it now expected reduced water consumption by firms across its region to cut its revenues by between £20m and £25m from the previous financial year.
Severn Trent had previously said it expected a drop of between £12m and £15m from a year earlier.
'Bad for sector'
"Overall we think the news is negative, not just for Severn Trent, but for sector sentiment," said broker Credit Suisse.
Shares in the firm were down 4% or 46 pence to 1141p in afternoon trading in London. Its decline also dragged down other water firms, such as United Utilities, Pennon and Northumbrian Water.
Electricity demand is also falling across the UK as a result of the recession, with firms either cutting back on their output and opening hours, or either shutting up shop for good.
The National Grid predicts that peak UK weekly electricity usage will fall by between 600 and 1,000 megawatts over the course of 2009. This is the equivalent output of one large power station.
This story was featured on the BBC website
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Worldwide energy demand expected to increase 50% by 2030 - Credit Suisse
Friday, January 23, 2009
Credit Suisse research forecasts that the share of alternative energies in the worldwide energy supply is expected to grow significantly within forthcoming decades. This increase will be primarily driven by the political risk of relying on declining oil reserves and concerns about global warming, which has inspired many countries to enact renewable energy standards. As a result of increasing demand, various industries within the alternative energy sector are currently experiencing rapid double digit growth, most noticeably the dynamic wind and solar industries. Whilst these energies today make up a small portion of the total renewable energy market (7.3%) some industry exponents expect wind and solar to contribute more than 25% to renewable energy by 2030.
“Alternative Energy is a long-term theme. Driven by rising energy costs and regulatory mandates in many countries, it is rapidly gaining share in the global energy supply”. said Miroslav Durana, Head Alternative Energy Research for Credit Suisse. However, as these young industries quickly increase their capacity, component supply shortages and execution problems are likely. As a result, many alternative energy companies show high earnings growth but also relatively high earnings risk. Therefore, Credit Suisse recommends a diversified investment in selected stocks across all alternative energy themes or in an alternative energy index.
“It is an exciting time for alternative energy with market dislocation likely and heavy competition for investment” said Jeffrey Culpepper, Vice-Chairman of the Investment Banking Department in the EMEA region and Head of the Investment Banking Department for Credit Suisse in the MENA region. He added: “We are therefore delighted to partner with the World Future Energy Summit and be strategically positioned when the renewable business gathers for the 1st time in 2009”.
Credit Suisse is proud to sponsor the World Future Energy Summit for the second consecutive year. With over 15,000 attendees expected to attend in 2009, the WFES will be the largest meeting of influential figures within the renewable energy industry. As principal sponsor, Bassam Yammine, Co-CEO of Credit Suisse Middle East and Head of Investment Banking and Asset Management for Credit Suisse in the Middle East said: “This unique event is very important for the Middle East and its future growth. Credit Suisse’s partnership with the Summit underscores the Bank's strong commitment both to the region, and to the advancement of sustainable energy overall.”
Credit Suisse, has for many years, been a leader in environmental management within the banking sector as well as a pioneer in the development of structured products, financing facilities and innovative client services with a focus on environmental and climate change themes. This applies particularly to areas such as alternative energies, clean technologies and the carbon sector.
This story was featured on The Environmental Expert website
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Carbon Trust calls for massive switch to biomass heating
Friday, January 23, 2009
Businesses and public sector organisations could benefit by switching from oil, gas and electric heating to biomass, according to Biomass Heating, A Practical Guide, published today by the Carbon Trust. Financial pressures and the coldest start to a winter in over 30 years make reducing heating bills a priority. However, by working with biomass heating projects across the UK, the Carbon Trust has found that a lack of understanding of the technology and its potential benefits is preventing wider uptake.
Biomass heating offers most significant cost savings in parts of the UK which are not currently on the gas grid. For example, using wood or straw can provide cost savings of 2-4 p/kWh (pence per kilowatt hour) relative to use of heating oil. A biomass system generating 1,600MWh of heat (roughly equivalent to the annual heating requirements of a typical school) could therefore save up to £50,000 per year on fuel costs relative to an existing oil-based heating system. The costs of biomass fuels also tend to be much less volatile than fossil fuels.
Mark Williamson, Director of Innovations at the Carbon Trust, explains: “We’ve become so reliant on oil, gas and electricity that many businesses just aren’t aware of the cost and carbon benefits of turning to biomass for their heating supply. Renewable heating will need to play a key role in meeting the UK’s renewable energy targets and biomass offers the greatest potential to contribute to this. Growing the UK biomass industry can also offer other positive impacts, such as creating new green jobs in the UK and making use of certain waste products that would otherwise go to landfill.”
Heating presently accounts for almost half (49%)3 of the UK’s carbon emissions. Biomass typically offers carbon reductions of around 90% relative to fossil fuel heating systems. In its Renewable Energy Strategy consultation, the Government proposed that renewable sources may need to provide 14% of the UK’s heating requirements (up from its current level of less than 1%) to meet the 2020 renewable energy targets. Biomass is expected to account for a significant proportion of this.
The most cost-effective carbon savings can be achieved with small to medium scale biomass applications (100 kWth-3MWth). Cwm Taff NHS Trust decided to replace heating oil with a 1.2MW biomass boiler burning woodchips. This will save an estimated £35,000 per year and pay back the initial investment within five years.
Anthony Hayward of Cwm Taff NHS Trust, said: “By investing in biomass we are considerably reducing our carbon footprint, making significant financial savings and supporting local fuel suppliers”.
Another organisation taking full advantage of biomass heating is Bell Bros Nurseries Ltd which will be providing 60-70% of the heat needed for its 50,000m2 of glasshouses by using woodchip. Not only will the switch to biomass save 1,400 tonnes of carbon dioxide emissions a year, it will also mean a 40-50% reduction in annual heating costs.
Robert Bell of Bell Bros Nurseries said: “Installing a suitably sized biomass heating plant at our nursery has allowed us to achieve significant savings in our fuel bills. We are particularly happy that we have been able to contribute to our environmental credentials while achieving significant cost savings”
The Carbon Trust provides interest-free loans of up to £200,000 to help small businesses upgrade to more energy efficient equipment, including biomass boilers. Particularly when replacing electric, LPG, or heating oil systems, the payback on the initial capital outlay can be less than three years.
The Carbon Trust is launching Biomass Heating, A Practical Guide to help organisations that are considering using biomass as an alternative source of heating. It provides a detailed overview of biomass heating systems and fuels, plus a step-by-step guide to successfully implementing and operating biomass systems.
Angela Duignan, Woodfuel Implementation Officer for Forestry Commission England said: 'The Forestry Commission - through A Woodfuel Strategy for England - is working to facilitate the use of additional two million tonnes of wood each year by 2020 for renewable heat generation in modern, efficient boilers.
'We welcome the Carbon Trust's Biomass Heating publication, which provides an easy-to-understand, practical guide to installing and using biomass heat systems. The guide is perfect for businesses and organisations looking to reduce their environmental impact and their fuel bills. It demonstrates that biomass boilers offer an attractive and viable alternative to heating with fossil fuel.'
This story was featured on The Environmental Expert website
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Economic climate affects business investment in energy and water efficiency
Thursday, January 15, 2009
Firms are not investing in ‘green’ measures such as water and energy efficiency as a result of the credit crunch, despite the fact that green initiatives can lead to substantial cost savings for businesses, new research from the Environment Agency has revealed.
The poll of 1,000 UK decision makers shows that over half of companies do not have any form of environmental or sustainability policy in place, whilst 55% expect that UK businesses will cut back on future investment in sustainability measures as a result of economic necessity.
The research also identified clear misconceptions amongst business decision makers as to the importance of water efficiency, with only ten per cent of those questioned seeing saving water as important as saving energy. Just 15% of businesses surveyed said they currently have a water efficiency policy in place.
The Environment Agency’s survey, carried out to launch its 2009 Water Efficiency Awards, aims to highlight that sustainability and profit should go hand in hand for businesses.
Few companies identify water as a product that is paid for twice - when receiving it and when taking waste water away - and Envirowise, the Government-funded programme to help businesses with the sustainable use of resources, estimates that UK companies could save £9 million a day through simple water efficiency measures. In fact, a business could save more than £900 per year in water and wastewater treatment costs by fixing a constant 5mm leak from a single tap and over £3,800 per year by installing infrared flush sensors in urinals (
Worryingly, those areas of the country classified as most water stressed were the least proactive in developing sustainability policies. Three quarters (74%) of businesses in the east of England lacked a sustainability initiative, in marked contrast to Wales where almost two thirds (61%) possess a policy. This commitment to the environment looks set to continue with over 80% of senior figures within Welsh organisations planning further sustainability activity in 2009.
Businesses in London look to be the most proactive when it comes to water efficiency in the coming year with more organisations in the capital planning investment in water saving measures than companies from any other area.
The research also revealed that attitudes to sustainability vary by industry. The public sector was found to be the best at implementing environmental initiatives with half of organisations in this area possessing an environmental policy. The hotel and restaurant trade shows scope for improvement, with 40% having no sustainability measures in place at all. This is of particular concern as prior research finds businesses in the retail, hospitality and service sectors are often wasting up to half of all the water they use.
Ian Barker, Head of Water Resources at the Environment Agency said: 'It is vital that businesses remain committed to best practice through this difficult economic period. Whilst we appreciate the strains that company finances are under, the majority of efficiency measures actually reduce costs by reducing water and energy use.
'Not only is green business good business, but also we all have our part to play to help save water.'
To showcase best practice in water efficiency, The Environment Agency is today launching its Water Efficiency Awards, sponsored by Defra, Ofwat and the Food and Drink Federation. Backed by partners Business Link, Envirowise, IEMA and the Welsh Assembly Government, the Awards are in their ninth year and are the leading scheme in England and Wales to recognise the achievements of business in promoting water efficiency. The Environment Agency Water Efficiency Awards were launched in 2000 and are held bi-annually. The next Awards ceremony will next take place on 15 July 2009. Businesses can find more details on past winners or enter their own firms at http://www.water-efficiency-awards.org.uk
This story was featured on The Environmental-Expert Website
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