On May 20, 2025, the Australian Alliance for Energy Productivity (A2EP) hosted a pivotal webinar titled “Unlocking Compressed Air Efficiency for Serious Energy Savings.” This session illuminated the substantial energy-saving potential within compressed air systems, which, despite their ubiquity in manufacturing, often operate with significant inefficiencies.

Insights from Industry Experts

The webinar featured insights from leading professionals:

• Satinder Sahni, Group Senior Manager – Utilities at Asahi Beverages, shared strategies on how Asahi significantly reduced compressed air costs by minimizing air consumption in their processes.
• Murray Nottle, an air systems engineer from the Carnot Group, discussed the utilization of ‘Power vs Flow’ curves as a diagnostic tool to identify and prioritize areas for efficiency improvements.
• Craig Morgan, Group Sales Director at Northmore Gordon, presented findings from a measurement-based survey of 30 compressed air systems, revealing surprising inefficiencies and offering guidance on assessing system performance.

A Call to Action for Energy Managers

This webinar serves as a valuable resource for energy managers, engineers, and industry professionals aiming to enhance operational efficiency, reduce costs, and lower emissions. By addressing the often-overlooked inefficiencies in compressed air systems. Want to increase your industrial energy savings? Contact Craig Morgan at Northmore Gordon today!

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We extend our congratulations to all the nominees and winners, and proudly highlight G&K O’Connor, supported by Northmore Gordon, for taking home the EEC Leading Energy Management Project: Industrial award. Their winning project, ‘Closing the Loop on Red Meat Processing Energy and Emissions’, is a testament to what’s possible when strategic vision meets deep technical expertise.

Over the past three years, it has been a privilege to work alongside GKO — helping navigate complex energy challenges and drive real emissions reductions in one of Australia’s most vital industries.

A heartfelt thank you to Australian Renewable Energy Agency (ARENA) and the Australian Meat Processor Corporation (AMPC) for their support, and congratulations again to all involved. This recognition reflects the dedication, innovation, and collaboration that continue to shape a more sustainable future.

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Client Overview

Kalafatis Fresh Produce, located in Shepparton, Victoria, is a cornerstone of Australian agriculture. A trusted Woolworths supplier for over 50 years, Kalafatis specialises in pears, apples, and stone fruit, including exclusive varieties like the Papple pear.

Project Summary

With rising energy costs and an increasing focus on sustainability, Kalafatis Fresh Produce sought a smart solution to cut emissions and reduce operational expenses. Watters Electrical, a long-term partner of Kalafatis, proposed and later delivered a 400 kW solar PV system. For the project to proceed, Northmore Gordon was bought in to provide critical funding via the VEU that supported the project financials.

Challenges We Overcame

This project wasn’t without its complexities:

• Kalafatis built new expansion sheds in 2022, and seven new cool rooms, causing a spike in energy usage during our measurement period. This added complexity to M&V and caused a dead end under traditional approaches.
• At Northmore Gordon we love challenging problems, and we used creative problem solving to create the concurrent baseline method (VSS). By gaining government support for the new mechanism, this allowed us to isolate energy savings purely from the solar system. This method is now widely used by the industry.
• Erroneous inverter data also caused challenges, we regularly apply new and creative approaches to modelling to ensure optimal customer outcomes.

Results That Speak for Themselves

Despite the hurdles, the project exceeded expectations:

• Energy Generation: 607 MWh actual vs. 526 MWh estimated
• Certificate Value: $283K actual vs. $235K estimated
• Annual Savings: 517 MWh actual vs. 484 MWh estimated

That’s a 6.4% boost in VEECs, delivering an extra $48K in financial value – reflecting our commitment to precise analysis and energy expertise.

Benefits for Kalafatis Fresh Produce

• Lower Energy Bills: Thanks to a significant reduction in electricity consumption
• Environmental Stewardship: A sharp decrease in greenhouse gas emissions
• Financial Incentives: VEEC rebates improved the return on investment
• Brand Reputation: Strengthened perception as an environmentally responsible grower

Our Role

At Northmore Gordon, we provided full project guidance – right from strategy through to implementation. Working closely with Kalafatis and Watters Electrical we ensured compliance and optimised outcome. Our expert team ensured the solar VEEC initiative stayed compliant, cost-effective, and results-driven. With our Measurement and Verification methodology and trusted project management, Kalafatis Fresh Produce turned their sustainability ambition into measurable success.

For more information about Solar VEECs and LGCs contact: Madonna Ghajar

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The partnership brings together Northmore Gordon’s deep expertise in energy management and carbon reduction with Pangolin Associates’ proven capabilities in climate risk assessment and sustainability reporting. This powerful combination offers large energy users a comprehensive solution to meet their ASRS compliance needs while driving meaningful progress on their decarbonization journeys.

“Large energy users face significant challenges in meeting the new ASRS framework,” said Hamish McGovern, Managing Director at Northmore Gordon. “By partnering with Pangolin Associates, we can offer clients an unmatched combination of energy expertise and climate reporting capabilities, ensuring they not only comply with regulations but identify valuable opportunities to reduce costs and emissions, and maximise funding sources for the transition.”

Iain Smale, Managing Director at Pangolin Associates, added: “This partnership represents a perfect alignment of complementary strengths. Together, we provide clients with the strategic climate risk assessment and practical energy solutions needed for ASRS compliance and long-term sustainability. Our combined approach helps organizations turn regulatory requirements into business advantages.

The partnership will offer end-to-end ASRS compliance services, including emissions measurement, climate risk assessment, scenario analysis, transition planning, and comprehensive reporting. Clients will benefit from Northmore Gordon’s proven methodologies for energy optimization, grant & certificate funding expertise, alongside Pangolin’s expertise in climate strategy and disclosure frameworks.

This collaboration comes at a critical time as Australian organizations prepare for the first ASRS reporting period beginning January 2025. Group 1 entities, including the country’s largest companies and energy users, must produce their first sustainability reports in 2026, with additional organizations phasing in over subsequent years.

Who we are

Northmore Gordon is a specialist energy consultancy helping industrial and commercial businesses decarbonize and reduce energy costs. With offices across Australia and Singapore, the firm provides energy audits, efficiency engineering, carbon strategy development, and environmental certificate services. Northmore Gordon has been highly successful in leverage grant and certificate funding for customers’ transition projects, and is committed to helping large energy users achieve meaningful emissions reductions while improving financial performance.

Pangolin Associates is an Australian-owned climate change and sustainability consulting firm. Pangolin helps organizations meet their climate change goals through comprehensive greenhouse gas assessments, carbon neutral certification, net zero strategic implementation, and compliance with government reporting schemes. As a certified B Corp and Climate Active organization, Pangolin leads by example in sustainability practices.

For more information, please contact:

• Hamish McGovern, Northmore Gordon – h.mcgovern@northmoregordon.com
• Iain Smale, Pangolin Associates – iain.smale@pangolin.com.au

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The Client

The client is a privately owned Australian company which produces and distributes poultry products throughout the country. The company is one of Australia’s largest poultry processing companies, and has a vertically integrated model, meaning they control and manage production process from start to finish.

The Project

The client is a large energy user with a correspondingly large GHG emissions footprint. This means that they are likely to be impacted as the state, national and global economies transition to net zero emissions over the coming decades. The company has already noted that these impacts are already starting to be felt, in particular from supply chain pressures from their major customers, who have made public net zero emissions commitments and are therefore requiring their suppliers to provide information on their current emissions and their emissions reduction plans. In order to ensure business continuity and profitability during this transition to a net zero emissions world, they recognised the need to prepare a corporate carbon emissions reduction strategy.

Our Role

Northmore Gordon developed a Corporate Carbon Emissions Reduction Strategy for the client, including:

• Identifying strengths and gaps in the client’s current approach to managing carbon emissions;
• Conducting a series of workshops with a range of stakeholders across the organisation to review key carbon management concepts and frameworks, including the Greenhouse Gas Protocol, Science Based Targets initiative (SBTi), Climate Active, and the Task Force on Climate-related Financial Disclosure (TCFD)
• Establishing a baseline carbon emissions footprint, covering all relevant scope 1, 2 and 3 greenhouse gas emissions
• Identifying opportunities to reduce carbon emissions across the organisation;
• Modelling various emissions reduction pathways, including Marginal Abatement Cost Curves (MACC);
• Defining emissions reduction targets with timeframes and implementation pathways
• Developing engagement tools to communicate the strategy internally and externally

The Outcome

“With Northmore Gordon’s help we were able to establish a carbon footprint and develop a strategy, we can now share to our key stakeholders and most importantly our customers. We believe it is our responsibility to work in a manner that reduces harm to the environment and had already been doing a lot to reduce our impacts. We are now able to set ambitious targets, understand our footprint and collaboratively work together with our customers and suppliers towards zero emissions.”

For more information contact: c.morgan@northmoregordon.com

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The Client

Greenham is a large-scale family-owned livestock business with three sites across Australia; Smithton (TAS), Tongala (VIC), and Moe (VIC). Rising energy costs and the need for alternative energy sources encouraged them to seek an energy expert to develop an end-to-end energy and carbon management strategy.

How We Helped

• Renewing annual data
• Energy productivity audits
• Cogeneration support
• Carbon credit monetisation and government grants
• Energy and carbon reporting
• Energy efficiency certificate creation

The Challenge

Greenham is a large-scale family-owned livestock business with three sites across Australia; Smithton, Tongala, and Moe. Rising energy costs, ageing infrastructure, and the search for alternative energy sources encouraged them to seek an expert to help them with their energy and carbon management strategy.

The Process

Smithton

Northmore Gordon was first engaged in 2014 to assist with a switch from coal to renewable biomass in the boiler at the Smithton site. Northmore Gordon registered the project for carbon off sets through the Emissions Reduction Fund (ERF), negotiated sale of off sets to a buyer, and submitted the first off sets report. Knowledge of measurement and verification methods in the Carbon Farming Initiative enables Northmore Gordon’s Energy and Carbon Performance Consultants to create Australian Carbon Credit Units (ACCU) every year, delivering a total of over $175K of value to Greenham. This involves intensive data analysis, modelling, liaising with the Clean Energy Regulator, participating in ACCU Auctions, and negotiating with buyers on the secondary market.

Further to the creation of ACCUs, Greenham was investigating a replacement for their biomass boiler which was nearing the end of its life. Northmore Gordon prepared a detailed specification of the new boiler and identified capable supply and installation contractors. A new state-of-the-art model is now operating at 15-20% greater efficiency, leading to a fuel cost saving of $50K per annum.

Tongala

Following the work at Smithton, Greenham was interested to assess the viability of embedded solar PV at Tongala. Northmore Gordon performed a solar feasibility analysis and investigated the suitability of a 2MW solar farm quoted by an external supplier. With complex electrical and thermal systems it was determined that other options should be investigated before proceeding. Subsequently Northmore Gordon performed an energy audit to provide a comprehensive review of the facility’s energy performance and renewable energy generation options. Although solar was considered, the audit revealed that cogeneration powerfully aligned with the energy profile and needs of the business. Funding through Sustainability Victoria supported the cost of the audit.

There were 15 potential areas of optimisation around the site, which would provide an estimated cost savings of $1M per annum. Greenham wished to further investigate three of these areas, upgrading the hot water system, cogeneration and conversion to High Voltage supply. These stand-alone business cases required further engineering design work and engaging suppliers. Greenham progressed with the cogeneration opportunity, which would also help alleviate hot water complications. Northmore Gordon also identified that cogeneration could be funded under a government grant, and Victorian Energy Efficiency Certificates (VEECs) could be created based on the energy savings. The grant was secured and the project registered for VEECs, improving the business case. The final design included 2MW of cogeneration units running off natural gas and biogas captured from the wastewater treatment system. This will provide electricity and hot water to the site and will augment the existing gas-fired hot water heaters.

Outcome

Greenham is now positioned as a leader in energy and carbon performance in the livestock processing sector and there are even more opportunities to improve. By entrusting Northmore Gordon to help improve carbon and energy performance, Greenham has drastically reduced energy costs, reduced greenhouse gas emissions, and improved energy productivity at their sites. Northmore Gordon worked extremely hard to unlock funding to help finance energy productivity and decarbonisation projects. This has been achieved through the annual creation of ACCUs at Smithton with a final value of over $175K. At the Tongala site the cogeneration project NG has been able to generate over $4.5M in total for Greenham from an upfront grant and from the VEU program for project implementation.

With the help of experts, you can help transform your energy performance and dramatically reduce costs.

For more information contact: c.morgan@northmoregordon.com

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“Northmore Gordon worked alongside the boiler installation company as well as AJ Bush Manufacturing to complete the project. Northmore Gordon went above and beyond to get the project done and were able to work under difficult circumstances to make sure AJ Bush Manufacturing was able to access the credits for this project.”- Nick Lawrance – Plant Engineer

The Client

AJ Bush & Sons (Manufactures) is Australia’s largest east coast protein recovery provider operating rendering and manufacturing plants in NSW and QLD. The plants specialise in processing animal by-products for the meat/butchery industry. The NSW (Riverstone) plant’s collection area, in addition to Sydney Metro, ranges from Nowra in the south to Canberra, Dubbo and Bathurst inland and up to Newcastle and Tamworth in the north. The material collected is recycled into products used for livestock, pet food, aquaculture, fertiliser and biofuels.

Key Facts

Equipment Upgraded: Gas-fired boiler (50y.o originally oil-fired)
Annual Energy Savings: 11,790 GJ p/a Opex: > $80,000
Certificate Value: $120,000
Project Payback Period: 15 Years
Program: NSW Energy Savings Scheme
Method: Installation of High-efficiency Appliances for Business (IHEAB)

The Project

AJ Bush Manufacturing Plant (NSW) operates 24/6 processing red meat and poultry by-products, making it extremely important that the boiler runs reliably and efficiently. An earlier energy audit in the plant identified a number performance improvements and highlighted the advantages of a boiler replacement. The plant had already made a number of services and repairs but it was determined the boiler was at the end of its serviceable life and the decision was made to replace the unit. The upgrade from the 7.3MW boiler to a new 10 MW boiler for extra capacity included many efficiency options including an economiser, oxygen trim, electronic air/gas ratio, and automatic TDS blowdown. Northmore Gordon is a leader in environmental certificate creation and trading. We have created the most certificates of all Accredited Persons under the Victorian Energy Upgrades program, an Accredited Certificate Provider in the NSW Energy Savings Scheme, and registered agent under the Federal Renewable Energy Target.

Challenges

Project was completed and done in conjunction with production as AJ Bush operates 24/6

Outcomes

7.3MW Gas boiler was replaced with 10MW boiler

Our Role

Northmore Gordon were engaged during the specification of the boiler and were able to calculate the value in energy saving certificates for various options (such as the economiser and blowdown controls). Working under Northmore Gordon’s direction AJ Bush collected much of the evidence required to meet the NSW ESS program requirements. In addition Northmore Gordon provided a price hedge to protect against adverse changes in the certificate price during the finalisation of the claim and the audit process.

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At Northmore Gordon, we continue to monitor the dynamic Victorian Energy Efficiency Certificate (VEEC) market.  Two weeks ago, the Government passed legislation to extend the VEU to 2045, and last Friday 16^th May, they announced the 2026 and 2027 targets. 

Latest Price Movements 

As of 19 May 2025, VEEC spot prices have declined to approximately $85.00 per certificate, marking a substantial correction from highs of over $110 in late 2024.  This represents a ~20% drop in recent months, underscoring a shift in market sentiment and fundamentals.  The announced targets resulted in a sudden drop from $91.00 to $85.00 where prices have stabilised for the moment. 

The latest VEEC price can be found on Northmore Gordon website.  Filter on VEECs. 

A Look Back: VEEC Price History 

VEECs were trading at around $30 back in 2020, steadily climbing to over $110 by late 2024. This increase was driven by: 

• Regulatory tightening that limited certificate creation. 

• Increased compliance demand from energy retailers. 

• Market uncertainty that spurred speculative buying. 

• Declining supply from lighting and market saturation in certain activities 

What’s Driving the May 2025 Price Drop? 

Several key developments have contributed to the recent decline in prices: 

• Regulatory Certainty:  
  On 16^th May 2025 Victorian Government has announced VEEC targets for 2026 (4.4 million) and 2027 (4.6 M), this is lower than the proposed revised interim VEEC targets for 2026 (5 M) and 2027 (6 M) and substantially lower than the 2025 target of 7.3 million. 

• Removal of Vintage Requirements: 
  Legislation removed the requirement for certificates prior to 31^st January to be used for surrender for the prior year’s obligation.  This provides more supply. 

• Extended Surrender Deadline: 
  The VEEC surrender deadline has been extended to 30 June 2025, giving liable entities more time to meet their obligations, reducing short-term pressure.  This may well happen again in 2026 

• Increased Supply: 
  Space heating and cooling, as well as commercial heatpump installation activities have steadily increasing creation rates.  

• Improved Supply Outlook: 
  With greater clarity and easing of speculative activity, supply has improved, leading to more stable pricing. 

What This Means for Business 

For those involved in energy efficiency projects or VEEC-generating activities, these market shifts present both challenges and opportunities. Staying informed and strategically timing your projects can help optimise returns and ensure compliance. 

At Northmore Gordon, we help clients navigate the certificate markets with confidence—providing strategic advice, regulatory insight, and market intelligence to maximise value from sustainability initiatives. 

Reach out to our team if you’d like a deeper conversation about how VEEC trends affect your energy strategy and consider hedging VEEC projects you have underway. 

For more information about Solar VEECs and LGCs contact: Madonna Ghajar

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“The Northmore Gordon team spent a great deal of time gathering the information, which was made all
the more difficult due to COVID 19. Their diligence enabled a fantastic outcome for Aurora Place. The
measurement and verification process allowed us to validate the energy savings of the project which
confirmed the decision to replace our equipment. The revenue from the energy savings certificates
allowed us to invest in further developments at Aurora Place”.
– Duncan Demol, National DC Faclities Manager costs reducing the payback.

The Client

Aurora Place, is a premium grade commercial building, with over 70 high profile tenants ranging from financial, law and health related industries. The commerical tower features 18 levels and is 49,400m2 bounded by Phillip Street, Bent Street and Macquaries Street. It is an iconic site, featuring in the Sydney Skyline, clearly visible from the famous Sydney Harbour.

Key Facts

Equipment Upgraded: HVAC Chiller System, Chillers, VSD
Annual Savings Energy: 309,000 kWh
Project Certificate Value: $46,000
Program: NSW Energy Savings Scheme (ESS)
Method: Project Based Activities (PIAM&V)

The Project

Aurora Place determined an energy efficiency project was going to be a beneficial and rewarding course of action. The project involved a full overhaul of the site’s HVAC chiller system which included the replacement of 5 existing chillers, base building cooling tower upgrades, variable speed drive (VSD) replacement on chilled water and condenser water pumps, upgrades to the outside air variable control and hot water coil bypass dampers. In addition to works on various air handling units. The creation of ESCs for this project provided more revenue to further improve the performance of the building. The M&V work done during the ESC creation process also allowed Northmore Gordon to monitor the energy savings as a result of the project.

Challenges

• Aging equipment could impact reliability
• M&V process discovered fault in control system
• Energy bills represent a substantial cost to data centre operators
• Aging equipment could impact reliability

Additional Benefits

• Reduction in energy consumption
• Upgraded to a more eco friendly product
• Chillers provider a greater range and configuration improving the cooling capability of the building

Our Role

Northmore Gordon created energy savings certificates (ESCs) using M&V methodologies on the site consumption before and after the implementation of the HVAC works. Northmore Gordon completed the measurement & verification (M&V) plan, collected site data & supporting evidence, and built the baseline and operating energy models to calculate the energy savings. Northmore Gordon also provided Aurora Place with price certainty to ensure the customer received the payment they had forecast.

For more information contact: c.morgan@northmoregordon.com

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