Company Quarterly Report - Q2 2024
Energy Efficiency Improvements - Ardent Mills
SMMPA works with customers to implement a variety of energy efficiency improvements to help them save money and protect the environment by eliminating energy waste. The Agency’s energy efficiency programs help member utility customers like Ardent Mills in Lake City invest in products that reduce energy usage without compromising comfort or performance. Over the past ten years, SMMPA’s energy efficiency programs helped Ardent Mills implement four efficiency projects, collect $4,800 in rebates, and save over 800,000 kilowatt-hours (kWh) of electricity.
The Partnership
Ardent Mills, the premier flour-milling and plant-based ingredients company, specializes in flour, quinoa, pulses, and organic and gluten-free products. Its Lake City, Minnesota, location supplies various types of bulk flour to industrial bakeries in the Midwest and Canada.
The company’s team worked with SMMPA on its largest energy efficiency improvement, the compressed air leak correction program. Ardent Mills also participated in Lake City Public Utilities’ other rebate programs including mini split air source heat pumps, motors, and LED lighting upgrades.
Saving Energy, Saving Money
Compressed air is the most expensive utility in facilities and a large source of wasted energy. A small 1/8” air leak can cost a company up to $1,400 each year! The average facility loses an average of 25 percent of its compressed air to leaks. Reducing leaks is a great savings opportunity.
SMMPA offers a program to conduct an annual compressed air leak survey for interested customers with compressed air systems of ten horsepower or greater. A leak study is conducted with no upfront costs by SMMPA’s Energy Services Representatives (ESRs) and involves using an ultrasonic leak detector to locate and document the sizes of the leaks with photos of their locations. The Agency provides a final report so customers know their potential savings from repairing the leaks. The Agency recommends customers repair as many leaks as possible to maximize their rebate and savings, although 50 percent of the identified leaks need to be repaired to obtain a rebate.
At Ardent Mills, compressed air is essential for moving materials, cylinder actuators, and unplugging any flour buildup during packing. Not only have their leak correction efforts saved them over $73,000 in electricity costs, but they also received $1,500 in rebates from Lake City Public Utilities to help pay for fixing their leaks. “Our program identifies the leaks so customers like Ardent Mills can simply fix them for immediate savings”, said Marcus Hendrickson, SMMPA’s ESR for Ardent Mills.
Become More Energy Efficient
SMMPA partners with electricians and HVAC contractors in member communities to build good relationships that support customers. They understand the need for stewardship that promotes the efficient use of electricity while also protecting a customer’s economic well-being.
Member utilities encourage their customers to become more energy efficient by helping them understand not only the benefit to the environment and community but also the benefit to their business. It can be challenging for some customers to find the time to implement energy efficiency programs, especially when maintenance teams are short-staffed, but the effort paves the way for immediate savings and payback.