The Client: ProviCo Australia
ProviCo is a large-scale protein, vitamin company that manufactures functional dairy ingredients & specialised dairy nutrition products for domestic and international markets. Operating out of Dennington from a large 34ha site, ProviCo Australia consumes a large volume of energy per year, totalling >$5m in costs p.a. With energy costs a growing concern and production increases forecasted, ProviCo reached out to Utilizer to help mitigate impending energy cost increases.
The Problem they Faced
After the Dennington milk factory underwent a world-class $20 million expansion, resulting in significant production increases for the business with their advanced milk drying tower reaching an annual productive capacity of 350 million litres, ProviCo Australia’s aim was to bring down annual energy costs by utilising renewable energy sources.
Initially, ProviCo engaged an external consultant to secure a lucrative Business Recovery Energy Efficiency Fund (BREEF) grant, however, there was no energy management strategy and very limited detailed financial modelling provided by the consultant. Deemed insufficient by ProviCo, they turned to us to provide more insight into the financial and energy consumption benefits over the long term.
Our Solution
Utilizer's solution for ProviCo focused on optimising their energy strategy post-expansion. We deployed our intuitive solar procurement solution, providing detailed financial modelling and comparison of additional tier-1 solar and battery quotes. Additionally, we facilitated a gas-procurement tender, after identifying the potential for large gas-cost increases in near future.
And the benefits speak for themselves:
- Reduced Scope 2 Emissions by ~5k Tonnes CO2-e per annum (~35%)
- Secured a CAPEX-free and cash flow positive arrangement to finance the entire $4m renewable solution
- Reduced the solar system cost by >$1.3m by re-enrolling the client in the VEU program
- Helped the client secure a cash rebate of >$50k by negotiating a free LED installation of >1,500 LEDs
- Delivered a c.$500k electricity savings in year 1 alone – Forecast to deliver >$15m in electricity savings over the system’s lifetime
- Identified an error in the incorrect application of VEECs – resulting in >$100k credit being applied
- Avoided a cost increase of $9m per annum by tendering ProviCo’s energy requirements 2 months ahead of the gas crisis.
