Three firms in North Jutland are saving energy and optimising production through a project backed by the European Regional Development Fund. By introducing green business models, the companies are cutting carbon emissions and reducing waste. Changes instigated through the project ‘Intelligent energy and resource efficiency through green business models’ have reduced costs.
- 08 August 2019
The project has shown that for many companies there is great environmental and economic potential in developing and introducing new green business models.
The project team analysed issues affecting production such manufacturing flow, operational processes and change-over times. Simulation models were then developed to support the companies as they worked to reduced waste and energy use.
Cutting consumption
Changing the manufacturing control model has already had a huge impact on operations. The three companies have together reduced their annual energy consumption by about 7 600 gigajoules, which corresponds to an equivalent of 603 tonnes of CO2. They have decreased their consumption of materials by approximately 1 900 tonnes every year.
Smarter thinking
One of the benefits of the control model is that it helps the companies decide when best to start production and when to hold back. It encourages managers to take a broader view on alternative production flows. For example, the project documented that producing an order on a slower machine using more manpower led to a significant decrease in energy usage and cost. Previously, this would not have been considered because using the slower machine would obviously have taken longer and incurred extra cost in terms of human resources. According to the project team, this option would not normally be identified using more traditional business processing models like the enterprise resource planning system.
The three companies that have benefitted are plastics recycler Aage Vestergaard Larsen in Mariager; detergent manufacturer Nordisk Parfumerivarefabrik in Hobro; and window producer PT Vinduer in Aabybro. The Centre for Logistics at Aalborg University’s Department of Materials and Production coordinated the project. In addition, business consultancy Integrate A/S provided expertise and experience in simulation and production optimisation.
Total investment and EU funding
Total investment for the project “Intelligent energy and resource efficiency through green business models” is EUR 953 899, with the EU’s European Regional Development Fund contributing EUR 476 750 through the “Innovation and Sustainable Growth in Businesses” Operational Programme for the 2014-2020 programming period. The investment falls under the priority “Low-carbon economy”.