Shortages of natural gas mean the possibility of winter blackouts across Europe have become a real prospect. With supply chains already stretched and facing a challenging winter, attention will turn to how organisations can better preserve energy and futureproof processes should fuel shortages become commonplace. Here, Simon Emeny, Director – Specialist Markets, Inspection Services at LRQA explains how auditing and inspection services can help reduce the impact of such prevalent fuel shortages on a plethora of manufacturers and processors.
The Problem in Numbers
The energy crisis is quickly becoming one of the most important business focuses across Europe. Blackouts and planned power cuts are becoming a real possibility in many regions, with energy supplies being severely impacted by the Russia-Ukraine war.
The potential gas cut-off from Russia has been estimated at 50bcm (billion cubic meters of natural gas), yet the International Energy Alliance (IEA) has recently estimated that over 50bcm of gas is wasted through leaks, flaring and venting across the EU. In the UK, meanwhile, it has been estimated that around £33.9bn of gas will be wasted in 2022. With the price of energy having a detrimental impact on operating costs, better management of oil and gas and forward-thinking energy strategies are therefore going to be more crucial than ever to ensure the security of the fuel supply into a given process is as protected as it can be.
A number of initiatives have already been announced across Europe to help minimise the impact of rising energy prices. The European Commission, for example, has recommended using energy monitoring and control tools, along with energy audits, to highlight where businesses can improve efficiencies. In the UK, energy regulator Ofgem is proposing initiatives to promote efficiency measures. It is clear that change is required, but implementing a successful strategy in such pressured environments is a challenge in itself.
Implementing Changes
With wasted gas and energy arguably more costly than ever, attention needs to turn on how organisations around the globe can reduce energy consumption. This needs to be a focus across all commercial and industrial space occupied, with some facilities – and equipment – not being fit for purpose.
Of course, introducing ways to reduce energy waste is not only important for the immediate future. Given the long-term ambitions to reduce global emissions, being alert to environmentally damaging leaks and flaring will have wider benefits beyond the current energy crisis.
How, then, can businesses reduce energy consumption successfully? First, it’s important to understand where energy is unknowingly being wasted across the entire supply chain. While this is not always immediately clear to the untrained eye, embracing inspection services can play a key role. Secondly, organisations should look at putting steps in place towards a transition to cleaner energy. Again, auditing is an integral part of this journey.
Auditing
Introducing a third-party audit strategy is one way to help businesses identify areas of potential improvement. Audits can help understand the risks facing companies, both internally and externally, equipping them with the information needed to reduce energy waste and eventually transition to a greener future.
In the short term, they provide opportunities for businesses to better manage their energy use, such as ensuring equipment is fit for purpose. Audits will uncover whether equipment is compliant with the latest regulations and expectations, helping to build confidence that projects and processes will run smoothly.
Ensuring supplier equipment is also up to the expected standard is also important, yet this is not always easy. Here, vendor audits and site inspections are essential to ensure the wider supply chain is meeting requirements. Through site inspections and audits, a wider programme can be created to ensure standards are not only met, but also maintained.
Longer term, organisations should be looking to transition to cleaner, more renewable energy sources. ESG (Environmental, Social and Governance) strategies are going to become increasingly important to ensure this transition is smooth. Audits and inspection services will again play a critical role here, ensuring businesses comply with complex global and local regulations.
With new technologies come new challenges, meaning organisations should also think about training for various codes and standards. Whether its refresher courses for more experiences team members, or complete learning solutions, providing training across the business can help improve efficiencies and futureproof organisations.
Futureproofing
The energy crisis is becoming a defining moment of the 2020s. With an immediate need to conserve energy – and a longer requirement to consider alternative energy sources – organisations are facing a plethora of challenges. It is clear auditing and training will have an important role to play and organisations should look towards the support of assurance, certification and inspection service specialists, like LRQA.
Not only can audits and training support short-term requirements but they will also play a key role in ensuring the transition to greener energy is a success.
For more information on inspection services, visit LRQA.com.