SUCCESS STORY
Reducing energy costs through on-site generation: Grantham Manufacturing
Grantham Manufacturing is a family-run UK paper packaging company based in Grantham, Lincolnshire. They needed to cut energy costs and reduce emissions.
Impact at a glance
- Solar panels generate 58% of the site’s total electricity demand
- Reduced exposure to rising energy prices through on-site generation
- Installed LED lighting to improve efficiency across operations
- Captured and reused heat from compressed air systems
- Achieved a combined payback period of 9 years
The business
Grantham Manufacturing, established in 1967, is a family-run UK paper packaging company based in Grantham, Lincolnshire.
Sector: Manufacturing
Region: East midlands
Size: 50-100 employees
Why they took action
Following a devastating fire that destroyed their factory, the firm decided to turn a crisis into an opportunity by rebuilding the factory to be more energy efficient, and more sustainable.
What they did
Medium cost actions
Used LED lighting across the site.
Installed a 10,000-litre tank to harvest rainwater, which is then used in their manufacturing process.
Significant capital investment
Installed a water-cooled air compressor which harnesses process heat and directs this into the ground source heating system, reducing the operating time of their heat pump by 35%.
Installed 272 solar panels on the roof of the rebuilt factory and a ground source heat pump.

What difference it made
The suite of measures has reduced utility costs and has a payback period of 9 years. The solar panels specifically now produce around 58% of total electricity used on site, while LED lighting can be expected to cut lighting costs by about 50%.
How were the changes funded
The firm worked with their bank, Barclays, to finance the investment required.
The lesson for other businesses
Grantham Manufacturing shows the value of turning a setback into an opportunity and making investments which while they may not all pay back immediately, make the business more resource efficient and resilient against future energy price rises.
Find out more about Grantham Manufacturing
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