Hille Hyytiä, Energy Efficiency Unit, Motiva
Industrial companies should start the clean tech revolution by enhancing their existing processes – and the management of them.
According to Hille Hyytiä, industrial companies should start the clean tech revolution by enhancing their existing processes – and the management of them. Hille Hyytiä works for Motiva, a government-owned company that promotes the Finnish market for efficient energy and material use and renewable energy sources. One key focus of interest for the company is clean technologies.
“Clean technology is advanced technology for which the driving force is issues relating to environmental, energy and material efficiency based on climate change mitigation, as well as the EU climate and energy targets. Businesses do not start replacing their technology just because of political agreements, however, but in order to reduce their costs for energy and materials,” points out Ms Hyytiä, Head of Motiva’s Energy Efficiency Unit of Industry.
According to Ms Hyytiä, the breakthrough by clean technology means challenges and opportunities for industrial companies.
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“In the current recession new investments have largely been put on ice, but it is precisely at this time that companies would have the time and resources to invest in new technology. A company would then be in better shape than its competitors when the economy starts rolling again. Many companies, after all, still have a very healthy balance sheet. All it takes is the will to gain a competitive edge through new technology.”
Importance Of Energy Efficiency
Ms Hyytiä stresses that more energy efficient working methods are the most effective way for industry to reduce emissions and increase savings.
“The importance of energy efficiency can never be stressed too much. Studies, for example by VTT Technical Research Centre of Finland and the Research Institute of the Finnish Economy, have shown that energy saving projects are 2–10 times more profitable investments than building extra energy production. Even so, some of the potential offered by energy saving has not yet been exploited in Finland.”
Energy-intensive industry has understood the importance of energy efficiency more quickly than other sectors. The reason for this is money – energy accounts for a large part of the costs of industrial giants. More energy efficient working methods can give them savings of millions of euros.
By contrast small and medium sized companies have been left behind in the energy efficiency stakes. They usually have only limited resources that they can devote to looking into new working methods. However, by refining existing technology it is often possible to obtain large savings with relatively small costs.
“Energy efficiency is also largely a matter of where the targets are set, and whether individual machines or larger entities are monitored to see if the targets are met. Finnish combined power and district heat generation is a good example of what can be achieved by integrating large entities,” states Ms Hyytiä.
“Vacon has been one of the frontrunners in developing applications that help improve energy efficiency in existing production processes.”
Management Is Decisive For Results
Greater energy efficiency in operations requires not just new technology but also attitude training.
“In an ideal situation, energy efficiency is a dynamic way of working throughout the organization. In practice, simply adjusting working methods can give companies energy savings of several per cent. And that does not require any investments in new technology at all,” comments Ms Hyytiä.
She stresses that, just as with other strategic change processes, clean tech projects also need a goal-centered, systematic and persistent approach –and above all proper management. Clean technology on its own will not bring success; the company needs to measure what is happening in its processes, and must be able to utilize these figures in its decision making.
The 6 C’s Of Clean Technology
Clean technology has been described as a diverse range of products, services, and processes that harness renewable materials and energy sources, dramatically reduce the use of natural resources, and cut or eliminate emissions and wastes.
Ron Pernick and Clint Wilder, authors of an influential book The Clean Tech Revolution: The Next Big Growth and Investment Opportunity, identify six major forces – the six C’s – that are pushing clean technology into the mainstream and driving rapid growth and expansion:
- Costs: Clean-energy costs are falling as the costs of fossil fuel energy are going up.
- Capital: An infl ux of capital is changing the clean tech landscape, with billions coming from both public and private sector sources.
- Competition: Governments are competing in the race to build the jobs of the future.
- China: The expanding energy needs in China, India, and other developing nations are driving major growth in clean-energy, transportation, building, and water-delivery technologies.
- Consumers: People are demanding products and services that use resources efficiently.
- Climate: Climate change is seen as a peer-reviewed certainty, and smart businesses are taking heed.