Thermax to up energy audit biz

Energy and environment engineering major, Thermax Limited, wants to expand the scope of its operations and maintenance (O&M) business for power plants. The company is also gearing up to accelerate its energy audit business in response to the market demand.

A press communication from Thermax said the company wants to make O&M a major business for itself in the next five years. Thermax is thus making forays into new market segments.

Presently, Thermax O&M contracts are restricted to customers where it has put up turnkey captive power plants. Thermax will now offer services to power plants that are not built by it. It also plans to offer O&M expertise to power plants in the higher range of 100 Mw and above, the communication said.

Thermax Executive Vice President M S Unnikrishnan said, "The emerging trend of outsourcing this activity is evident from the business Thermax has picked up from the cement sector which is on the fast track of becoming cost competitive." Till end March 2007, Thermax has signed five O&M contracts.

According to the communication, a typical Rs 100 crore captive power plant in a cement factory would spend Rs 36 crore on annual fuel bills and one of the major benefits Thermax offers is a reduction in energy costs with higher power plant productivity.

The efficient use of water, with conditioning chemicals in both the boiler and cooling tower, also adds to the productivity of operations, it said.

Thermax's energy audit business is also being expanded. Thermax expects to conduct more than 100 energy audits this year, compared to 35 last year. It is now mandatory for process industries to conduct annual audits of their utilities by the Bureau of Energy Efficiency (BEE) accredited auditors.

The communication said Thermax will focus its expertise in energy savings in generation, where its own equipment like boilers and chillers figure and in the area of distribution of steam and chilled water for heating and cooling. There are opportunities for savings in both areas.

In generation, increasing efficiency, reducing power consumption and burning waste fuels can be the mix and in distribution, Thermax advises its customers on effective ways of reducing utility consumption per ton of production.