Scenario

Hot-dip galvanising involves dipping fabricated steel into a kettle or vat containing molten zinc to prevent steel from corroding.

An ISO-certified Canadian company known for their galvanizing expertise was looking to save money on their natural gas consumption. As a hot-dip galvanizer, they heat large volumes of zinc to molten temperatures—460 °C (860 °F), 24 hours per day, 365 days per year. This activity is core to their business and consumes a large amount of energy and a great amount of natural gas.

Issues

The company had been purchasing their natural gas from local utilities at rates that fluctuated with the market. Delivery charges varied as well, resulting in them being billed over 10% more for their natural gas transportation.

Having multiple sites meant each location had a different provider and a different bill. Treating each location separately diminished their size and buying power. Unfortunately, because the volume of gas purchased was distributed over so many suppliers, the company was unable to obtain the customer support they needed from any one supplier to help them manage the overall administration. The extra time required to analyze their energy billing due to a lack of in-house expertise was an inefficient use of highly paid resources.

Solution

The company decided to partner with GOenergy. First, we consolidated their natural gas billing across all their locations into a single bill that simplified their administration and outlined exactly what they were paying for.

Next, we delivered a fixed-price natural gas contract over 3 years, thus stabilizing their cost of gas without the premium associated with consumer accounts.

Finally, ongoing analysis of their delivery charges and reporting was provided, giving them the customer support they had lacked in the past.

Benefits

This hot-dip galvaniser stabilized their gas costs and simplified and consolidated their billing. They also eliminated risk by fixing their natural gas costs to create a more consistent cash flow.

They were able to acquire the skills needed to understand the gas industry without the extra cost of hiring staff. By having regular conversations with a partner who knows the gas industry, the company was able to save both time and money. Working with GOenergy helped them resolve their issues so they can focus on their operations.