Arla Foods

Industry: Food manufacturing

Service: Climate Change Agreement (CCA) compliance

Result: Circa £14,000 per year in energy tax saved

About Arla Foods

Arla Foods is the UK’s leading dairy company, with an annual turnover of £2bn and a milk ‘pool’ of 3.2bn litres from more than 3,000 farmers. Well-known for brands such as Cravendale, Anchor and Lurpak, Arla is the largest supplier of butter, spreads and cheese in the UK. The company employs around 4,000 people. With a firm commitment to the environment, Arla was the first dairy processor to create an environmental strategy which also applies to its supplying members. 

The project brief

Innovative Energy Consultancy (IEC) was engaged to assist Arla’s National Distribution Centre in Leeds to identify the potential eligibility of the site and enable participation within the CCA scheme.

The CCA allows businesses to claim a rebate of up to 90% on the environmental tax they pay on electricity invoices and up to 65% on the environmental tax they pay on gas invoices. In return, members have to show they are achieving a measurable improvement in energy efficiency. 

The solution

Initially, IEC recognised that the processes carried out at site were eligible under the CCA scheme and identified a relevant trade association through which an application could be made. IEC then developed a full application and supported this through to a successful conclusion on Arla’s behalf. This has provided a considerable financial saving to Arla, but also ensures a focused effort to reduce energy consumption and minimise the business’ environmental impact.

Having successfully applied to join the CCA scheme, IEC now works with Arla to manage its CCA, which includes providing the required returns to the Trade Association and Environment Agency. Also, information on the energy used by the facility and performance against the CCA targets are reviewed regularly by IEC to ensure targets are achieved and the rebate is maintained.

“IEC is a great team to work with. They understand the CCA scheme inside-out, so they have guided us through the application process, ensuring everything ran smoothly. What’s particularly helpful is their collaborative, longer-term approach. We will work with IEC on an ongoing basis to monitor energy usage and ensure we achieve our commitment in relation to the CCA.”

Arla