Less Talking and More Walking down the Energy Efficiency Road – the Journey has begun

1. Less Talking and More Walking down the Energy Efficiency Road – the Journey has begun 22nd February 2007 International Conference on Sustainability Engineering and Science

2. An acknowledgement This paper would not have been possible without the experience I gained over the last 4 years as the Chief Executive of Demand Response Limited. As the leading contractor to Fonterra for their Energy Reduction project, my project team broke new ground and helped them continue their journey in energy efficiency.

3. What we will cover • Energy efficiency and sustainability • Lifting our game • Fonterra’s journey • Reasons for success • We need a tool-box • How can we apply these lessons to other industries? • The journey must continue for others and accelerate

4. Energy efficiency and sustainability • Energy efficiency and sustainability go hand-in-hand. • Energy efficiency is a journey. • Energy efficiency is also a team effort.

5. Lifting our game • In sport, we have high ambition and we are geared for success. • In sport, in many cases we do not have a lot of money and people get on and just do it and win. • In business, our export growth is below OECD average, possibly one of underachievement. • In energy efficiency, we are also well down in the rankings of OECD countries – we are the glaring anomaly. • Yet, energy efficiency does not require huge investments or resources to get started.

6. Lifting our game • We are different and niche. • But, we need the right people to drive energy efficiency, mainly engineers. • We need to offer careers for our bright engineers in energy efficiency. They will be the champions of the future. • I am confident we can make a difference if we get some inspirational leadership, some more discipline, some more training and embed some team-work into lifting our game.

7. Fonterra’s journey • It started decades ago with the industry investment in growth and their advances in new technology. • More recently, they had to put in place a major initiative in energy cost reduction company-wide. • The energy reduction project started in 2002 at a pilot site and was quickly rolled-out to their 10 largest manufacturing sites. • Their first corporate target of a 10% energy reduction will be achieved earlier than they planned. • Some valuable lessons have been learnt along the way.

8. Reasons for success • By taking a positive approach • By taking a long term view • By team-work from engineers at all levels • By having a clear focus on robust projects • By being able to measure and report successes.

9. The tool-box – some solutions for sustainable engineering

10. The tool-box – some solutions for sustainable engineering

11. How can we apply these lessons to other industries? • As a country, we are very short of experienced chemical engineers with energy efficiency or renewables experience. • We must look after our energy efficiency engineering specialists and make them our technology champions. • We need to urgently introduce Best Practice programmes. • The techniques behind Monitoring and Targeting must be advanced. • So must the economic methods in analysing life-cycle costs for projects that are more sustainable for the environment.

12. The journey must continue for others and accelerate • Sustainable engineering must continue on to the large number of medium sized sites • But, we are a cross-roads in terms of how fast we can make progress. • Our immediate challenges are to lift our game through leadership, discipline, training and team-work. • If we can get there we may set some world records as a low emissions country and we will have something at last to celebrate along with our sporting successes.