Why net zero fails in manufacturing – unless you fix this first

The challenge for any manufacturer committed to net zero is building a pathway that works commercially, operationally and technically.

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AI Summary

  • Manufacturers should first understand energy use before investing in new technologies.
  • Reducing energy demand is crucial before pursuing major decarbonisation technologies.
  • Operational efficiency improvements can save over £500,000 annually and pay off in less than four years.
  • Electrification requires careful planning due to increased electrical demand and infrastructure needs.
  • A staged approach to decarbonisation offers flexibility and reduces investment risks.

Generated with AI

A project delivered by Mitie for a leading laminate manufacturer at one of its major plants in the North East of England highlights a common challenge for industrial businesses. Before investing in new technology, manufacturers need to understand how and where energy is used, what is driving demand and which changes can be made without disrupting production. Without this insight, net zero plans can be difficult to deliver in practice.

Electric not always an option

The manufacturer’s site represented the vast majority of the company’s UK energy consumption, using more than 50 GWh each year, around 83% of which came from natural gas. The company wanted to reduce its energy use and carbon emissions but its greatest challenge was its reliance on gas for process heat – the heat used to operate manufacturing equipment and production processes. Renewable electricity and greener power could support its transition but they would not address this core challenge on their own.

This is a challenge shared across much of UK manufacturing. Many industrial facilities rely on high-temperature processes, thermal oil systems and continuous production lines that cannot simply be switched to electric alternatives overnight. Decarbonisation therefore becomes as much an operational and infrastructure challenge as an environmental one.

Conversation moves to electrification too quickly

That is why many net zero programmes falter. The conversation often moves too quickly to electrification without first understanding how energy is actually used across the site. In this case, the assessment by Mitie identified a number of operational constraints including:

  • Compressors running continuously
  • Changes in energy demand during production
  • Limited opportunities to use outside air for cooling
  • Reliance on existing heating systems

These factors all influence what is technically achievable and when.

Rather than viewing these constraints as barriers, the project used them to shape a more practical investment strategy.

The operational constraints identified through the assessment showed that the site’s existing energy demand was not fixed. Continuous compressor operation, changing production demand, limited use of outside air for cooling and reliance on existing heating systems all presented opportunities to reduce or better manage energy use. The most valuable insight was therefore also one of the simplest: reduce energy demand before investing in major decarbonisation technologies.

Detailed analysis identified a range of opportunities to improve operational efficiency, including heat recovery, compressed-air optimisation, leak detection, improved controls, free cooling and stronger energy-management practices. While no single measure would transform the site’s carbon footprint, together they could materially reduce energy consumption and emissions, lower operating costs and create a stronger platform for future investment

The commercial case was equally compelling. Together, the recommended improvements could save more than £500,000 a year, with the investment paying for itself in less than four years. Reducing energy use would also make future decarbonisation projects more cost-effective.

Improving operational performance benefits net zero

This illustrates an important lesson for manufacturers. The strongest net zero strategies are built by improving operational performance. Renewable energy also has an important role to play but only as part of a broader strategy. On-site solar PV demonstrated strong alignment with daytime operational demand, helping reduce purchased electricity and improve resilience. However, it did little to address the laminate manufacturer’s biggest challenge: high-temperature process heat. Renewable generation supports decarbonisation but it cannot solve every operational issue on its own.

The same principle applies to electrification.

Electrifying industrial heat is widely recognised as an important long-term objective but it should not be viewed as a simple equipment replacement exercise. Mitie’s assessment of the site’s current and future energy demand showed that fully electrifying its heat requirements could increase peak electrical demand to around 16 MW, significantly beyond its existing capability. Delivering that transition would therefore require additional electrical capacity, engagement with the distribution network operator and carefully phased investment.

Preparation is key

This demonstrates how attempting to solve carbon challenges can have unintended consequences, meaning preparation is key.

Perhaps the greatest value of this project was that it transformed an initial ESOS assessment into a practical investment roadmap. Rather than just producing another compliance report, the findings were used to sequence investment logically:

  • First, improve efficiency
  • Second, decarbonise energy supply
  • Next, address fossil fuel replacement as infrastructure and technology maturity allows

This staged approach gives organisations greater flexibility, delivers earlier financial returns and reduces the risk of investing in solutions before the business is ready to support them.

For manufacturers facing increasing pressure to reduce emissions while maintaining productivity and competitiveness, that is a significant advantage.

Manufacturers should improve energy performance first by understanding energy use, reducing unnecessary demand and addressing inefficiencies. This creates a stronger foundation for investment and turns net zero ambition into delivery.

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ENERGY & RESILIENCE HEALTH CHECK

Before investing in decarbonisation, understand and optimise your energy use first

The Energy & Resilience Health Check helps uncover inefficiencies, infrastructure constraints and energy risks across your operations. Get a clearer picture of what to prioritise before investing in your next phase of decarbonisation.

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