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| Cold Savings Portland’s Vessel Services Warms to Gas to Make Ice Summer sends the fishing industry’s demand for ice soaring, along with the cost of making that ice. That’s why, when marine supply company Vessel Services Inc. needed to decrease its cost of making ice at its facility on Portland’s Fish Pier, serious research was in order. As David Leeman, president and general manager of Vessel Services, explains it, “Originally we were considering the installation of a generator, but a consultant suggested a gas powered engine.” Ultimately, the company decided on the TecoFROST™ Model 16S. Vessel Services had some strong financial incentives behind this choice. The company mainly serves the commercial fishing industry. It supplies everything from diesel fuel to paints, parts and flags, approximately 3,300 items in all. However, according to Leeman, “Ice is the most important product we sell.” Keeping the Catch Cold Fishing boats use a lot of ice. “The big 75 to 95 foot fishing vessels need between 15 and 25 tons per trip; the smaller boats will use between three and eight tons,” says Leeman. In the summer the company’s electrically powered six 8-cylinder and one 6-cylinder compressors, which can produce up to 170 tons of ice per day, often run round the clock. “Until recently our most expensive electrical power occurred in the winter, now it occurs in the summer. The unavoidable high summer electric rates and the 20% cut in fishing days by the government has increased our costs of producing ice. The reduced ice sales also reduced our gross margin per ton ice. A double hit for Vessel Services. To gain control of our major raw material for ice production and energy to run our compressors, we researched less costly sources of energy.” “In our search for cheaper energy, we first looked at installing a generator to supply that energy. Our consultant looked at in-house generation and natural gas powered screw compressors; it was obvious that gas was an attractive, less costly option. The summer daytime electrical demand charge is almost as much as the cost of electricity,” says Leeman. “We are unable to avoid the extra charge as we have to run electric motors 20 to 24 hours per day in the summer time. The gas powered screw compressor can be run at a lower cost regardless of the time of day.” Long-Term ROI Despite all this, going with gas and the TecoFROST Model 16S was not a snap decision. “Vessel Services and I began discussions about a year and a half ago,” says Northern Utilities’ Key Account Rep Mike Smith. “They wanted to know about the feasibility, (the gas connection was straightforward) and about the economics. They needed to justify spending the up-front capital. Over six to eight months, we kept checking gas prices and looking at options. I believe the rebate we were able to provide was a key component.” Indeed the gas-driven equipment is more expensive to begin with, but it pays benefits in the long term. Leeman estimates a five-year payback on the company’s investment. Here’s wishing Vessel Services some serious cold savings! Created by Ferrante & Associates |
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