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Shining a light on renewables in manufacturing

Renewable technologies such as solar power cut financial and environmental costs at both ends of the supply chain

Companies can purchase a solar-power system outright and start saving on their energy bills from day one or pay a fixed rate for their energy after a specialist installer fits the panels. Photograph: iStock
Companies can purchase a solar-power system outright and start saving on their energy bills from day one or pay a fixed rate for their energy after a specialist installer fits the panels. Photograph: iStock

One of the more interesting trends in the Irish manufacturing sector in recent years has been the proliferation of solar panels on factory roofs and wind turbines on the grounds of manufacturing facilities. More food processing companies are also installing anaerobic digesters to produce methane gas on site.

Such technologies, along with other energy efficiency measures such as heat recovery systems, can make a real difference to the carbon footprint of a business.

In energy-intensive sectors, investing in renewables is becoming essential for long-term competitiveness, in addition to being good for the environment, says Pat O’Hara, managing director at Architectural & Metal Systems.

“Processes in aluminium production like smelting, extrusion and finishing consume a lot of energy, so transitioning to renewably sourced electricity can make a big dent in a company’s carbon footprint,” he explains.

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“This push is also being driven by demand – customers and end users are increasingly asking for low-carbon or recycled products, especially in construction, so renewables are no longer just a nice to have – they’re a key part of staying relevant in the market.”

Pat O’Hara, managing director of Architectural & Metal Systems
Pat O’Hara, managing director of Architectural & Metal Systems

O’Hara says that where raw materials are sourced for manufacturing can have a considerable impact on sustainability.

“In the aluminium industry, for example, there’s a big difference in carbon footprint depending on where the material comes from,” he says.

Aluminium smelted in China or India, for example, can contain relatively high amounts of “embodied” C02 per ton of metal produced, “largely because coal is still a major energy source in those regions”.

“We’re very conscious in where and how we source our metal, prioritising aluminium with high recycled content – which can cut embodied carbon by nearly 90 per cent – and primary aluminium from smelters that use renewable energy, which delivers a 76 per cent reduction compared to conventional smelting in regions that use coal as an energy source,” says O’Hara.

AMS has also taken steps to lower its footprint on the operational side: “We recently installed a one-megawatt roof-mounted solar system, the first phase of the planned 4MW project.”

As with all new technologies, there are early and later adopters – and also those who want to adopt but may be put off due to costs or other barriers. O’Hara says cost shouldn’t be a barrier any more – especially when it comes to solar power.

“The technology has become more affordable and accessible in recent years. With solar, you have options: you can purchase the system outright and start saving on your energy bills from day one or you can go the zero-capital route, where a specialist installer fits the panels, and you simply pay a fixed rate for the energy.

“In our case, we chose to buy the system outright, because it made long-term financial sense. But even for companies that aren’t ready to make that upfront investment, there’s a viable path forward.”

Manufacturers can cut thousands of tonnes of CO₂ from their footprints while also reducing their energy bills and improving long-term resilience using renewable technology, says O’Hara.

“Our 2,500 solar panels supply about 20 per cent of our total energy needs. That system alone offsets roughly 1,250 tonnes of CO₂ every year. This is the equivalent of planting about 38,000 trees per year and we’re saving hundreds of thousands of euro on our energy bills annually.”

A report from KPMG and Renewable Energy Ireland suggests the potential for between 2,000 and 5,000 jobs to be created in the energy storage sector by 2035 in construction, engineering and financing.

“Ireland’s energy storage sector has grown rapidly in recent years, largely on the back of expertise transferred from the wider renewable energy sector,” it states.

However, the report continues: “But to deliver its full potential we now need to invest in developing the skills and workforce to meet our much greater future energy storage needs.

“The career path for energy storage is undefined and there is a lack of specific courses for the sector at present.”

Edel Corrigan

Edel Corrigan is a contributor to The Irish Times