Another First for NG. Driving Down Gas

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Publication date: December 19, 2022.

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What this article reported

Northmore Gordon, a leader in energy efficiency and decarbonisation, is pleased to announce its latest achievement: registering the first VEECs under the Victorian Energy Upgrades (VEU) Gas Efficiency method. This marks another first for the company, further solidifying its reputation as a pioneer in the field of environmental certificates.

The customer, who upgraded an aging and inefficient 2MW boiler with three 500kW boilers, was able to register over 800 VEECs thanks to Northmore Gordon's expertise. This not only helped to offset the cost of the upgrade, but also contributed to the reduction of greenhouse gas emissions.

"We are thrilled to have achieved this milestone," said Patrick Blain for Northmore Gordon. "With gas prices on the rise and the world on track to overshoot 1.5C global warming, it has never been more important for businesses to take action to reduce energy usage and emissions. Our gas efficiency solutions are a great first step in this direction, and we are committed to helping our customers make the transition to more sustainable energy sources."

To learn more about the value your business can receive from the VIC and NSW with gas efficiencies, please visit https://northmoregordon.com/technologies/boiler-upgrades/.

To find out more about electrification and other alternatives, visit https://northmoregordon.com/articles/increase-boiler-energy-efficiency-and-reduce-costs/.

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What is the significance of Northmore Gordon registering the first VEECs under the Victorian Energy Upgrades Gas Efficiency method?

This achievement marks a significant milestone for Northmore Gordon as a pioneer in environmental certificates. Registering the first Victorian Energy Efficiency Certificates under the VEU Gas Efficiency method demonstrates our technical capability and expertise in navigating complex scheme requirements. It validates our ability to identify eligible gas-efficiency activities, prepare appropriate evidence, and successfully guide customers through the certification process—establishing credibility for future gas-efficiency projects in Victoria.

Why are gas-efficiency improvements important in the current energy landscape?

Gas-efficiency improvements address multiple strategic concerns: rising gas prices increase operational costs for businesses, and reducing gas consumption directly lowers those expenses. Additionally, gas combustion contributes to greenhouse gas emissions, making efficiency gains relevant to climate commitments and business sustainability targets. As global warming trajectories remain concerning, businesses using gas-fired equipment have compelling reasons to improve efficiency or transition to alternatives, making gas-efficiency projects both commercially and environmentally important.

How did Northmore Gordon support the customer's boiler upgrade project?

We helped the customer replace an aging, inefficient 2MW boiler with three 500kW boilers and successfully registered over 800 Victorian Energy Efficiency Certificates for the upgrade. This support likely included feasibility assessment, equipment evaluation, evidence gathering, and navigation of VEU scheme requirements. The certificate registration helped offset the customer's capital costs while providing environmental benefits through reduced gas consumption and emissions.

What financial and environmental benefits do VEECs provide for energy-efficiency projects?

VEECs create financial value by allowing eligible energy-efficiency activities to generate tradeable certificates that can be sold or retained. For the boiler-upgrade customer, registering over 800 certificates helped offset the substantial capital cost of the equipment replacement. Environmentally, VEECs represent avoided energy consumption and associated greenhouse gas reductions. This dual benefit makes VEEC-eligible projects more economically attractive while contributing to emissions reduction goals, supporting both business case viability and sustainability commitments.

What should businesses understand about gas-efficiency eligibility under Victorian Energy Upgrades?

Gas-efficiency projects must meet specific Victorian Energy Upgrades scheme criteria to be eligible for VEECs. Not all gas improvements automatically qualify; eligibility depends on activity type, equipment specifications, premises conditions, and measurement requirements. Businesses should engage early assessment to confirm eligibility before committing capital, as a technically sensible upgrade is not automatically eligible under VEU. We can help screen projects, prepare required evidence, and navigate the eligibility process to maximize certificate value while ensuring compliance.

How does Northmore Gordon's expertise support gas-efficiency transition decisions?

We combine technical assessment with commercial and environmental guidance for gas-efficiency projects. We provide energy audits to identify efficiency opportunities, feasibility studies to evaluate options, investment-case analysis to compare economics, and certification support to capture available VEEC value. This integrated approach helps businesses understand the full business case, identify funding opportunities, and implement improvements that reduce both operating costs and emissions. Our knowledge of VEU requirements and certificate pathways removes procedural barriers to achieving project benefits.

What alternatives to gas efficiency should businesses consider alongside boiler upgrades?

Businesses should evaluate electrification and renewable heat options as complementary or alternative strategies to gas-efficiency improvements. Electrification using heat pumps or electric boilers eliminates gas dependency entirely but requires electrical capacity and infrastructure assessment. Renewable heat options such as biomass or solar thermal systems offer different operating and environmental profiles. The choice depends on the business's temperature requirements, operating profile, electrical constraints, reliability needs, and long-term energy strategy. We can assess these alternatives and help businesses compare complete project options against consistent assumptions.

How should businesses approach investment decisions for gas-efficiency or electrification projects?

An effective investment case should clearly state the business problem, compare alternatives against the same operating requirements and price assumptions, identify all costs and benefits separately, and show what could change the financial outcome. Distinguish energy savings from maintenance benefits, certificate proceeds, and grant support. Present the project with and without conditional funding so management understands the decision even if certificates or grants become unavailable. We can help develop this analysis, ensuring capital decisions account for both technical merit and funding eligibility, reducing the risk of stranded projects or missed opportunities.

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