Industry:
Agriculture
Company:
A fast growing greenhouse operation, looking for assistance in assessing the best method to grow their product in the future at the lowest cost
November 10, 2024
How Cronos Saved $8.9M in 3 Years with 360 Energy: An 83% Cost Reduction Case Study
Cronos Group’s greenhouse operations achieved an 83% cost reduction over three years by optimizing procurement and implementing a collaborative five-step process.
The Challenges:
Labour and energy are the two largest inputs for the business, with little to no knowledge on energy and how to manage it appropriately.
The 360 Solution
- Program: Joined 360 Energy’s Procurement and Data Management Services
- Approach: Comprehensive review of energy invoices, on-site evaluations, and stakeholder consultations.
- Focus: Optimizing energy procurement in conjunction with reducing energy usage through a five-step management process.
- Team: Collaboration between owners, growers, crop consultants, service providers, and utilities.
The Results
- Immediate Impact: Reduction in costs, consumption and greater access to utilities and suppliers
- Long-term Impact: Savings over the course of the 3 year program: $8,900,000 a total reduction of 83% of costs for the organization on over 64,000,000 kwh.
- Competitive Edge: Greater profitability and the ability to expand the operations.
“We are a data driven organization. With the help of 360 Energy, we have learned about how market, regulatory and energy use patterns integrate to influence our energy costs. We are increasing the data available to us for monitoring our energy use and building in-house skill sets in how to analyze and apply that data to reduce cost and optimize production.”
Cronos Group
David Hsu
Chief Operating Officer
