REY Programme to result in 90 new jobs and 13 new businesses

REY Programme to result in 90 new jobs and 13 new businesses
AFTER four years, the Resource Efficiency Yorkshire (REY) programme has supported more than 500 small and medium sized businesses, helping them save money or increase revenue by implementing low carbon initiatives.

CO2 Sense logo March 2013

ERDF logo Mar 2013

Joanne Pollard CO2 Sense

Written by Joanne Pollard, CEO, CO2Sense (Pictured above)

 

AFTER four years, the Resource Efficiency Yorkshire (REY) programme has supported over 500 Small and Medium sized businesses (SMEs), helping them save money or increase revenue by implementing low carbon initiatives. This is expected to result in the creation of 90 new jobs and 13 new businesses.

The REY programme is part-funded by the European Regional Development agency and delivered by the low-carbon consultancy CO2Sense. It provided two types of business support to Yorkshire and Humber’s SMEs. The first was a capital grant to allow businesses to develop innovative low-carbon products or processes in order to grow sales, whilst also helping other businesses to cut their carbon emissions and often their costs too.

Implementing resource efficiency is no longer just a ‘nice thing to do’ for businesses. It is also an important source of competitive advantage, as it can allow businesses to target new markets, reduce their operating costs and become resilient in an environment of fluctuating energy prices and diminishing raw materials.

However, in tough economic times implementing resource efficiency can often take a back seat. Few SMEs have the necessary capital to invest in Research and Development (R&D) or purchase more efficient equipment. Similarly, SME owner/managers are often so focussed on the day to day running of the business that they simply don’t have the time or resources to plan and implement low-carbon projects.

This is where the REY project has added value, by acting as a ‘go to body’ for SMEs to access low-carbon expert advice and vital funding.
One example of a business we supported in this way is Greener Cooling. They received two grants totalling £105,000 for the R&D and commercialisation of their product, which is a component that is installed in commercial refrigeration units to improve energy efficiency by up to 10%. This allows Greener Cooling’s customers to reduce their energy consumption and costs. Prior to REY’s investment, Greener Cooling had an unviable business plan as their products were not competitively priced and they were selling on average just 30 units each year. Thanks to REY’s investment, Greener Cooling is now able to target its’ product towards the major retailers across the globe and is forecasting that they will sell in excess of 1000 units by the end of the first year and over 16000 units by the end of year four.

The second form of business support through the REY programme was a free two-day resource efficiency review and a match-funded grant of up to £8,000 to help businesses become more efficient with their energy, water, raw materials, packaging and waste. This may have been achieved by, for example, installing new lighting or changing internal processes thus allowing businesses to reduce their overheads and divert their savings towards growing their business and/or job creation. Research by the Carbon Trust shows that a 20% cut in energy costs represents the same bottom line benefit as a 5% increase in sales in many businesses.

The REY programme has now concluded, but I would like its legacy to be that we have made a real difference to the SMEs that we have engaged with, helping them to become stronger, more resilient and ready to face the challenges of the future.

For more examples of businesses that have benefited through resource efficiency please click here.