Carbon Credits: How Much Can You Save ?

By Darrel Vecchio | BIZMATRIX

We have all heard the terms carbon friendly, go green, save energy, energy star ratings, environmentally free, hug the tree and so on and now the Australian government is talking about carbon credits... or is that carbon tax costs! In this article we hope to explain some of the myths and some of the terms and how these terms will impact you.

One thing that is definite, we all need to use less energy as the planet has a finite amount of fossil fuels and these costs are about to increase in costs exponentially. In Australia electricity is made from fossil fuels. Over the next 12 months we will most likely see our power costs increasing by 15-30%. Several years ago the government passed a law mandating that all new home constructions’ hot water systems be gas-fired or a thermal pump, basically the electric element was not allowed. Why? To remove the power load off the power grid and reduce the carbon dioxide emissions.

When we use an electric appliance, electric light, or heating element it produces 1 kilogram of carbon dioxide for every 1 kilowatt of electricity used, as opposed to gas-fired 1 kilowatt producing only 280 grams of carbon dioxide.

Gas-fired equipment produces around 68-72% less carbon dioxide than electrical appliances using the same sized equipment or energy usage, and the cost of gas energy is around 30% cheaper than electricity. In Australia we have vast gas reserves and in some cases they produce gas from coal seams. They harvest the natural gas from the coal seam, leaving the coal in the ground to keep on using the energy from the coal seam.

I compared two identical pizza shops; Shop A with an electric conveyor pizza oven and Shop B with a gas-fired conveyor pizza oven. The other equipment, such as dough rollers, refrigeration, etc., was identical in both shops apart from the pizza ovens . With turnover at each shop virtually equal, we compared the energy costs after 3 months and the shop with the gas-fired pizza oven experienced a 30% cheaper energy cost savings.

Over the next 2 years the Australian government will be introducing a Carbon Credit scheme. Should they say carbon tax? It will impact businesses more than domestic. The major food chains have started investigating ways to reduce their carbon costs. One major food chain has 150 stores across Australia and have determined that if they convert some key equipment from electrical to gas each store will save over $200,000 per store, which amounts to an annual group savings in carbon credits and energy savings of over $3 million. Even with the equipment costs, the return on investment is less than 5 months and there are huge annual savings. Every day we are witnessing a growth in alternate energy appliances, from 50% energy efficient gas fryers to Waterless Woks that save around 1000 litres of water per hour and further savings with gas. In Europe and the Pacific the governments are encouraging consumers to reduce their carbon foot print by paying them for the savings, in some cases around AU$34 per 1000 Kilos in saved carbon dioxide not used. If the consumer converts to gas and produces 6 tonnes less CO2 then the consumer gets paid AU$204

Origin Energy in Australia has landed the rights to nationally distribute a gas-fired air conditioning system in both commercial and domestic units. They have installed several systems in the Pacific Islands. There are several large units installed into offices and factories, plus some homes throughout the region. The gas-fired air conditioner also produces free hot water...yes, hot water at no cost.

Have a look at your hot water bill at home. How much would free hot water and a 30% saving in your energy costs affect your cash flow? I have a family of 6 that I did a quick calculation for and they would save around AU$1,365 per annum if they converted to a gas-fired air conditioning unit with free hot water.

Take a hint from the government. Where possible, they are ordering equipment that operates on gas. What do you look at when buying equipment for your pizza shop or restaurant? Here is a quick check list of thing you should be looking for.

• Make certain the equipment is gas-fired

• Make certain the equipment is energy efficient

• If a pizza oven, the equipment should have a modulation gas valve (the valve varies the gas depending on the load, like an accelerator in a car)

• Does the equipment have any environmental or sustainable energy awards

• Insulated to stop heat escaping

• Maximum energy output for low energy input (can cook big loads quickly with minimal energy)

• Correct sized equipment for production (you do not want a semi-trailer for a mini minor job)

Over the next 5 years the foodservice manufacturers will be establishing an Energy Star rating like the domestic appliance area. The Star rating will tell you how efficient each appliance compares to the standards and other products which will be a consideration when investing in your equipment.

In the next edition we will recognise some of the brands that have won awards and have some of the features we have listed above. Additionally, if you would like more information please contact me to assist you. For more information, to calculate your carbon or energy usage or your feedback, please do not hesitate contacting Darrel Vecchio BIZMATRIX Interactive Business Solutions