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Shalam UK - Compressing their electricity usage
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Background
Shalam UK is an expanding business who specialises in the manufacture of plastics packing containers for food products. Their compressor was running at full capacity 24/7 and was resulting in large electricity bills. By replacing it with a variable speed compressor that was more efficient they could save a vast amount in electricity usage.
Shalam UK have been based in their current location in Basildon since 2009. In that time they have rapidly expanded with their staff numbers doubling as a result of winning contacts to produce packaging that was previously produced abroad.
The existing 90 horse fixed speed compressor that Shalam UK had, was running at full capacity 24/7. It was very inefficient especially during quieter production periods and up to 75% of the energy was wasted on heat.
To aid the expansion of the business Shalam UK needed to install a 132 horse variable speed compressor that would be more efficient and could handle the extra capacity required.
Additionally they wanted to install a reclaim the heat energy produced by the compressor and duct it into the factory to heat it during the winter, saving on energy costs.
Knowing what they wanted Shalam UK came to Low Carbon Business to assist them, with the project. Low Carbon Business was able to guide them through an application for a European Regional Development Fund (ERDF) grant for 40% of the project costs.
Outcomes
The project cost of installing the compressor was £79,026 of which the Low Carbon Business Programme was able to approve a grant of £31,610 from ERDF funding.
The new variable speed compressor runs at half capacity and is vastly more efficient than the old fixed speed compressor. The heat recovery system is also providing good heating throughout the factory and as a result of the project Shalam UK is already noticing a vast reduction in their electricity usage.
It is expected that Shalam UK will be able to reduce their electricity usage by 865,000 kWh resulting in a reduction of 514 tonnes from their Carbon footprint. Also the improved efficiency of the new compressor means that they should make savings totalling £35,000 a year on energy bills.
This project has been part of Shalam UK continuing expansion and they are planning to build a new warehouse on their site that will house 20-30 more machines increasing their capacity by 3000 pallets.