Ian Elsby, Siemens Head of Chemical Industry discusses why energy resilience and efficiency has become more important than ever in the UK chemical industry
The UK is a leader when it comes to investing in and introducing renewable energy sources which has a cost implication for the chemical industry and consumer. According to Ian: “The electricity bill is higher here than in many other comparable markets because others are often not investing in non-carbon alternatives at the same rate as the UK.”
In fact, UK electricity prices in the chemical industry do not compare favourably with other major markets. Electricity costs for a large energy user were estimated to be 65% higher in the UK than the EU average when studied in 2019. These higher prices and a growth in network costs are a potential issue for UK manufacturers when it comes to global competitiveness.
Finding ways to help all industries with energy pricing over the coming years while meeting the UK’s carbon neutral targets will be critical and being smart and efficient with energy will make a major contribution to the bottom line.
Ian says: “A significant manufacturer in the industry is likely to operate a larger number of sites. And typically, there could be older ‘legacy’ sites within a portfolio which might be four decades into service and they will not be particularly energy efficient.”
“Additionally. these facilities may not be in-line with agreed, future production standards the business is seeking to achieve.”
“The spectre of legacy equipment failure could interrupt operations, damage reputation, cost (in fines or revenues) or even be a risk-to-life. Keeping a watching-brief on these assets is something many are failing to do. And supporting a site’s energy resilience means providing complete visibility of the power infrastructure performance and efficiency, minimising energy wastage and reducing costs.”
With energy bills high and energy efficiency lacking on chemical sites, resilience is a springboard to decarbonisation and net-zero. In fact, UK manufacturers should be stepping-up their energy resilience plans to meet the challenges of tomorrow, or some could potentially find themselves sleepwalking into an energy resilience crisis.
How the Chemical Industry can step-up energy resilience planning to meet the challenges of tomorrow
All industries require access to reliable, uninterrupted power as well as robust dependable contingency measures to fall back on in the event of a failure. Yet despite the importance placed on maintaining the supply of energy UK manufacturers are failing to recognise the risks posed by critical ageing electrical energy assets. More needs to be done to strengthen energy resilience plans if the challenges of tomorrow are to be met.
“Critical electrical power equipment, which has accumulated over decades, forms a significant backbone of today’s manufacturing industry. Either housed in a single location or clustered across multiple sites, a complex patchwork of modern and legacy technologies makes up the electrical systems powering UK manufacturing. Interspersed throughout the country, these engineering assets have been added to, adapted, maintained and repaired or replaced over time; all are at various stages and states of health in a sprawling complicated picture of electrical systems,” says Elsby.
“These systems are supplying energy to, in almost all cases, mission critical operations but years of reactive maintenance, planned or emergency repairs and differing or inconsistent service practices have made it near impossible, for a significant proportion of businesses, to accurately gauge how these electrical assets are actually shaping up. Many are not aware of whether their systems can handle even greater demands, others are simultaneously grappling with an energy transition that is adding supply diversification, on-site energy production and decarbonisation targets to their sites – posing additional risks, more points of failure and ever more pressure.”
A smarter, more sustainable way to manage energy resilience will provide better insulation against the dangers of blackouts, the complete interruption of power that halts operations and brownouts, partial or temporary reduction in system capacity.
Siemens’ Resilience-as-a-Service scrutinises the ‘vital signs’ of a business’ electrical estate from every conceivable angle. The multi-pronged approach comprises three programmes: Risk Identification, Risk Management and Efficient Issue Resolution; designed to boost operational efficiency, business performance and minimise risk over the long term.
Elsby: “A lack of visibility makes it difficult to see and understand the level of risk within your power infrastructure, but the outcome of downtime is severe – interruption to operations, damage to reputation, unforeseen costs accrued (in fines or revenues) or even a risk-to-life – requiring a more a proactive stance, instead of the conventional view through a maintenance-lens. Risk can never be eliminated but the right resilience strategy, supported by a knowledgeable and trusted partner, can manage and mitigate the threats.”
During the risk identification process, Siemens experts perform a thorough audit to identify the risks associated with all the installed electrical equipment at a manufacturer. The process will help identify risks more intelligently, manage electrical equipment across sites and accommodate changing energy supplies including green energy, decarbonisation and on-site generation and storage.
Risk Management involves the proactive management of electrical assets and maintenance of its health to mitigate risk, streamlining the electrical infrastructure estate for simpler, more cost-effective management over time.
While Efficient Issue Resolution grants access to global parts sourcing and world-leading capabilities to help resolve issues faster, repair assets on site and understand the optimum pathways for the power estate.
“The prospect of imminent power infrastructure failure is ‘real’. There are approximately 65,000 panels of Siemens Reyrolle brand switchgear installed in UK industries, of which 70% predate the 1970’s. All continue to underpin critical power systems and remain fully supported by Siemens. There are also, as many, other similarly-aged assets from different manufacturers and, if not maintained correctly, all could potentially fail and create challenges.”
“It could mean a chemical manufacturer’s line losing power which causes wastage and a drop in quality during a production run or an automotive producer experiencing an unplanned blackout that incurs a 30-mins complete line restart; placing pressure on targets. We’ve had a business with £100k a year lost production through a handful of unplanned blackouts. After review, we recommended a £50k part change to remedy the issue – a solution, which in under six months had paid for itself.”
An issue of strategic importance, energy resilience merits discussion in the boardroom. “Manufacturing is one of the most energy-intensive industries. Any power outages or pricing fluctuations can have significant ramifications on day-to-day operations and production output. The cost to businesses can be eye-watering when you consider ‘3% of all working days are lost in manufacturing through machine downtime, which costs UK business £180 billion each year. * There is an impression that many are sleepwalking into potential danger, not wholly aware of the risks. A resilience strategy helps to save time, stress and strain. UK manufacturers must embrace the concept and make it their own personal responsibility to prepare for the energy challenges of today and tomorrow.”
For more information on energy resilience and to organise your site visit and assessment, visit here
