D A T A B A S E
Ecosave Holdings Ltd
Portfolio Status: Satellite Security
Stage: Emerging Company
ASX Code: ECV
Environmentally Positive Analysis:
Ecosave Holdings is an energy and water efficiency company. Executive chairman and chief executive officer, Marcelo Rouco, said he founded the company in 2002 with a simple vision "to build a leading Australian company which saves other companies and businesses money by reducing their energy consumption."
Ecosave has expertise in energy conservation for buildings, lighting and air conditioning and in water conservation for commercial and industrial buildings. Its clients are governments and corporates with energy bills of over $1 million per year.
Ecosave divides its services into three: energy and water saving projects, utility management services, and Energy Performance Contracts.
Projects begin with a review of a client's energy and water consumption, then a free Energy Saving Opportunity Assessment to work out which building services can be upgraded to reduce consumption, followed by a proposal.
Ecosave has ISO 9001:2008 Quality Management System registration for project management services for energy and water conservation solutions and installation works. It can manage the project including ordering the equipment from third parties and arranging installation by subcontractors.
It does not manufacture equipment nor has exclusive distributor arrangements with manufacturers, which it says allows it to propose the best solution. After the project it provides an Actual Savings Report (ASR) that details savings based on consumption.
The utility management services comprise sub-metering, monitoring and reporting on energy usage. Ecosave identifies energy wastage and oversees energy savings. Its business model for these services is a monthly fee.
Ecosave's Energy Performance Contracts (EPC) guarantee that the energy savings will pay for the cost of the improvements over an agreed time. They cover industrial processes as well as buildings. Ecosave is the project manager including for third parties such as engineers, installers and builders. Some EPCs are large and cover a number of buildings.
Ecosave's energy improvements can include more efficient fittings and lights, high performance reflectors, daylight sensors, movement sensors, voltage reduction units, separate light switches, air conditioning temperature adjustments, chiller controls, modifying Building Management System controls, and carbon monoxide sensors and variable speed drives in car park extraction systems.
Water efficiency improvements can include more efficient taps and toilets, eliminating leaks, flow control valves and aerators, and motion controlled flushing.
Ecosave's website has numerous case studies. A large one was with Telstra that produces annual savings of $1,041,859 and a payback time of 4.2 years, giving a return on investment of 24 per cent. A small project was for St George Hospital in Queensland which gives annual savings of $29,456 and payback in 2.9 years, a return on investment of 35 per cent.
Most revenue comes from energy efficiency with water efficiency contributing around 5 per cent.
Ecosave's business is focused on energy and water efficiency.
Mr Rouco says his vision is for Ecosave to grow profitably to become the first energy services company to offer every piece of the energy services puzzle. So far it offers about one third of the possible range and it sees quite a few more services it can add.
Ecosave sees itself as a leader in sustainable business practices. It uses 100 per cent green energy, it has five star rated motor vehicles under the Federal Government's Green Vehicle Guide, and it has office recycling schemes.
The company donates one tree for every tonne of greenhouse gas emissions or 100 kilolitres of water saved through its projects, and donates to environmental and humanitarian charities. It says "The Board will continue to give consideration to providing support to environmental and humanitarian charities."
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