The hidden cost of industrial water

There are various steps that plant managers can take to kick start a water efficiency programme, maximising cost and consumption savings ahead of deregulation, as Jon Wadley, water management director at Minimise Water, explains

 UK industry is missing opportunities to reduce water consumption and costs. 

To an extent, water has been the ‘forgotten utility’, with users focusing attention on critical operational requirements such as compliance, treatment and safety. By contrast, the primary term associated with energy is efficiency. And innovation isn’t far behind. That these two utilities can be viewed so differently is the result of historical market differences. But the gap is closing, quickly.

With water deregulation coming ever closer, costs, consumption and technologies are increasingly under the spotlight. It’s clear that industry in particular can make significant efficiencies if it interrogates its water practices. 

Without regulatory requirement to reduce consumption, however, it could be that, in the short term, water costs are driven down by new entrants to and competition in the supply market. For large consumers, this alone will not maximise the emerging water opportunity. Nor are these reductions set to stick, with estimates suggesting that water costs will rise by 30% over the next decade.

Just as deregulation and the prospect of scarcity surcharges has changed the energy sector, it is likely to have the same effect on water. New suppliers will want to do things differently, kick-starting market innovations.

While water scarcity has long been flagged as an impending environmental problem for the UK, it has not gained the same traction as, for example, climate change or the prospect of energy blackouts. 

Few businesses have prioritised infrastructure upgrades, with many still employing outdated and inefficient water management systems. This negatively impacts operational costs and is depleting UK water reserves at a faster rate than is necessary.

The rising cost of commercial water, however, is likely to drive change, making water efficiency solutions more attractive. As a result, many more businesses are starting to understand the financial benefits associated with improved water performance.

Again echoing changes in the energy market, those that audit, understand and are innovative with their water processes stand to be the biggest winners, with reduced consumption, reduced costs and an immediate ability to make informed buying decisions. 

Audit

So where do plant managers start the water improvement process to ensure they’re in good shape for the deregulated market? 

The first step should be a full water audit. This should be broad and consider supply, use, measurement, treatment, compliance, waste and disposal. For many this will be a step change as the focus is frequently on water management, treatment and compliance to meet essential regulations rather than efficiency of operation.

The audit should be used to inform a set of prioritised recommendations which take into account technology and market changes, regulatory requirements, cost, tax incentive schemes and funding opportunities, infrastructure, sustainability and wider business objectives. 

From this broad approach, plant managers can compare the business cases associated with a range of interventions such as improvements to compliance programmes, alternative water sources, recycling and reuse, heat and energy capture and waste minimisation. 

Help

An audit of this kind, which in many ways echoes what the government has done with energy under its ESOS programme, might sound onerous. Consultants and technology providers can help, but plant managers need to ensure that the service provided really meets their needs as there can be compromises. 

For example, a water consultant will provide a valuable infrastructure and efficiency audit but will rarely take responsibility for delivery and results. By contrast, solutions providers will deliver change and take responsibility for the results achieved, but cannot provide objective, technology-neutral advice. 

Opportunities

Key areas recommended for early review are industrial water recycling which is often a real missed opportunity, with most only meeting the lowest regulatory requirements. Reverse Osmosis water treatment is also worth a second look as escalating water costs and improved technologies are making these systems increasingly viable. 

Business benefits include reduced direct costs and associated energy savings; minimised consumption; improved sustainability; carbon savings; contribution towards CSR and water compliance objectives; and delivery of BREAM requirements for new builds. 

Minimise Water is part of the Minimise Group of sustainability companies. The Group’s integrated range of technologies, products and services includes energy efficiency, energy measurement and verification, water management, sustainability consulting and project financing. www.minimisegroup.com/minimise-water

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