The cost of energy is set to soar in the wake of depleted gas stocks, gas shortages, underperforming renewable energies, and concerns over Nord Stream 2 in Europe. While there is a contrast in the way natural gas and oil are sold and priced globally, the threat to organizations runs parallel.
Manufacturers are perhaps among the hardest hit, as higher energy costs would normally be passed on to the end consumer, impacting the current rate of inflation and product shortages, this may result in reduced demand for some products.
While the increase in gas pricing is set to be temporary, there’s no denying that the market can expect a period of instability. Whether an organization is forward buying, spot pricing or a combination of the two, most will benefit from fixed pricing afforded by TEI’s guaranteed 20% saving.
Source: UK and European natural gas prices add to big gains over past week | Financial Times (ft.com)
The silver lining is that the ‘transition to net-zero presents the greatest economic opportunity since the Industrial Revolution’, and according to the Financial Times, organizations who adopt emerging technologies will reap the benefits by gaining first-mover advantage and wipe out any premium costs.
Renewable power has been considered one of the ‘cheaper means of emission reduction, even with storage’, but has not been found to be cheaper than fossil-based power once the initial investment has been considered. In fact, others argue that ‘switching to renewable power is vastly expensive and takes years if not decades to achieve’.
Energy efficiency is the world’s first fuel, and the International Energy Agency (IEA) argues that efficiency must be at the forefront of global policymaking. Many energy users think that many critical technologies to improve efficiency are not yet commercially available, yet that is simply not the case.
Energy efficiency technologies are available that guarantee operational life of over 20 years, full payback in two to four years, and proven savings, not just in Europe but across the globe.
Thermal Energy’s solutions are already saving its customers 20% on their energy bills year on year – with rising energy prices, the cost of savings is now even greater. The sooner these projects are implemented for a manufacturer, the sooner they reduce the impact of rising energy costs in the coming years – and this is one proven way to mitigate high prices regardless of organizational choices about fixing fuel prices for the coming years at a highpoint or riding the fluctuations of a volatile energy market.
There is also a secondary impact emerging and that is the rising cost of carbon. “EU carbon price keeps hitting new records and is now trading above 71 euros (CAD $100). This increases the return and savings from our projects by more than 50%” said CEO William Crossland.
Organizations who make the move to Thermal Energy solutions, cannot only expect significant savings on their energy bills and impressive ROI that continue to improve, but also a reduction in greenhouse gases and other emissions thus proving a viable solution to both the growing cost of energy and achieving net-zero targets.
This has enabled most of our key multinational corporate accounts to set emissions reduction targets through the Science Based Targets initiative (SBTi) with confidence
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