Based in Banbury, Oxfordshire, AAC Cyroma manufactures plastic injection mouldings as well as providing extensive finishing facilities. The company was formed three years ago from the merger of two long standing industrial plastics manufacturers, AAC Plastics and Cyroma Plastics, which have collectively been in business for more than 100 years. AAC Cyroma currently employs 50 people and operates around the clock Monday through Saturday.

The company was incurring energy costs of more than £19,000 per year, much of which was being spent on electricity. Eager to reduce costs, AAC Cyroma applied for an interest free Carbon Trust loan to replace three fixed speed air compressors with one more energy efficient variable speed compressor, which could supply the entire factory.

Although the overall cost of the project was more than £29,000, the replacement of the equipment will result in the reduction of AAC Cyroma’s energy expenditure by nearly £7,000 per year. Based on these annual energy savings, the payback period for the Carbon Trust loan is approximately four and a half years. All further savings will then go directly to the bottom line. The company will also reduce its carbon emissions by more than 21,000 kg per annum.

Arthur Pickett, Technical Manager of AAC Cyroma said, “We approached the Carbon Trust as we were keen to save money off our energy bills, and cut our carbon emissions. Upgrading our compressed air system has made an enormous difference. The Carbon Trust provided us with expert advice and a cost effective financing solution. We are currently looking into improving the efficiency of our water cooling system, and are keen to continue working with the Carbon Trust on this and future projects.”

The Carbon Trust helps businesses save money and cut carbon emissions through energy efficiency. The interest free energy-efficiency loans are available to small and medium enterprises (SMEs) in England Scotland and all businesses in Wales and Northern Ireland that are investing in energy efficient equipment.

Drawing from a £26 million fund, loans of between £5,000 and £100,000 are available to successful applicants in England, Scotland and Wales. Loans of up t0 £400,000 are available in Northern Ireland.

Upgrading to energy efficient equipment, even with a modest investment, can save a company over 20% on energy bills. In many cases, the amount of money saved each month will exceed the loan repayments thereby increasing company profits by hundreds, or thousands, of pounds each year throughout the payback period. Thereafter, the full value of the saving contributes to the bottom line.

To find out more about energy-efficiency loans, call the Advice Line on 0800 085 2005 or visit the Carbon Trust website: www.carbontrust.co.uk/loans