Portsmouth SBP Meeting

Carbon Trust Loans in Practice

Karen Taylor. Environmental and Ethical Manager

taylork@hants-cosmetics.co.uk

Sound familiar?

Scenario One

You identify an energy saving project with a four year payback.

You take a “capex” to the FD only to be told that the funds are being used on equipment which will increase output and has a one year payback.

A different way?Scenario Two

You identify an energy saving project with a four year payback.

You take a “capex” to the FD accompanied by a carbon trust loan conditional offer.

Now the company can benefit from both the energy savings and the increased output.

Time LineBetween August 2008 and April 2010 we received 5 Carbon Trust Loans for energy efficient equipment with a total loan value of £136,898.

The maximum loan value has now dropped to £100k and is available to SME’s with turnover less than £42.5m.

The loans are unsecured and interest free, repayable over up to four years.

Projects must secure savings of 2.5T carbon / £1000 loan value

Projects Implemented• Steam Traps (GEM)• Heating and Evaporative Cooling for warehouse and manufacturing (Procool)• Efficient refrigeration units for manufacturing cold water and alcohol chilling (FT Refrigeration)• Heating and Evaporative Cooling with destrat fans, roof access and fall arrest lines for production (Procool)• Hot box for melting raw materials (Denios)

Other Examples

From the Carbon Trust website

• Swimming pool cover• Lighting• New Bakery Oven• Voltage Optimisation

Business Benefits• Energy efficiency• Improved working conditions• Reduced batch manufacturing times

It is worth noting that accompanying work may also be eligible e.g. the evaporative coolers for production also required the installation of a roof access hatch and fall arrest lines – this all qualified for the loan.

I would recommend choosing a supplier who can help with the loan application to make it a hassle free experience.

Process• Identify a potential energy saving project• Find a (local) supplier and obtain quotes• Ask if they can help complete the CT paperwork.• Use the CT technical advice team to confirm the carbon savings.• Complete the paperwork and wait for the loan to be approved.• Ensure all paperwork matches before sending delivery notes etc to the CT so payments can be released.• Install the equipment and allow the savings to cover the cost of the loan.

SummaryWithout the CT loans these projects would not have gone ahead.

I would recommend them to any eligible business wishing to invest in energy efficient equipment.

Now that we have reached our loan limit we are having to be more creative in our search for funding – zero capital projects, build own operate schemes, government funded training.

Q & A

• Do you have any questions?