Rural aggregate and asphalt businesses reliant on oil-fired burners or oil generators could make major savings by switching to mains gas according to the latest price trend data from the
The new data from DECC shows fuel oil costs have risen by 259% over the past decade compared to 107% for gas. (DECC quarterly energy prices – December 2012).
Research by Fulcrum, currently installing a 16 mile (25.6km) gas pipeline to four well-known whisky distilleries in remote Speyside in rural Scotland, is said to show asphalt companies ready to invest in a mains gas connection can expect “a significant drop” in energy costs associated with batch heating, semi-continuous asphalt plant, drum coating and hot storage.
“Based on desk research, recent fuel conversion projects and figures from the current Speyside gas connection, we estimate a switch from oil to mains gas can save the average asphalt business around 30% in plant energy costs and reduce carbon emissions by up to a third,” says Fulcrum operations director Ian Foster.
“The price trend gap between fuel oil and gas now makes upfront capital investment in a spur pipeline more cost effective than ever and payback periods are short: for example, we expect one of the businesses investing in the new Scottish pipeline to save up to £50,000 a week (€61,000) against its current energy bills.”
Fulcrum says rising energy costs are now a “priority boardroom topic” for large and medium-sized companies, particularly asphalt and aggregate companies who are heavy oil users. The utility connections company is currently talking with a range of aggregate, asphalt and roadstone companies to evaluate the savings potential of new mains gas pipeline investment.
“Some rely totally on oil-fired heating and electricity generation while others use a mix of oil and LPG to supplement their electricity supply. Many have looked at capital investment in a new mains gas pipeline in the past but recent fuel oil hikes reflected in the latest DECC figures are making them look again,” says Foster.
