The team at Rostel Industries and their parent company, Precision Drilling, knew there was a more efficient way to manufacture. At their Calgary-based facility, they used manual lathes to develop components for oil and gas drilling rigs. But they understood that to stay competitive, the modern manufacturer requires computer numerical control (CNC) machines to cut and measure equipment within a thousandth of an inch.

To access funding for new equipment, Shaun Callander, General Manager, and his co-worker Alex Trenholm, Financial Analyst, signed up for ERA’s Strategic Energy Management for Industry (SEMI) program.

An Unexpected Upgrade

The company’s plan did not always include the CNC machine; it was one of multiple projects they were considering. At the beginning of the program, a Facility Readiness Assessment helped them understand their energy consumption, and the machines zapping their power.

“When we started with SEMI, we looked at retrofitting our HVAC. But as we worked through the program, we realized that may not give us the benefits we thought. SEMI opened our eyes to other, more efficient upgrades, and really shifted my mindset,” said Shaun.

The Facility Readiness Assessment flagged manual lathes as inefficient, and SEMI provided a $400,000 grant to make the change happen.

Learning Along the Way

With a desk in the Calgary headquarters, SEMI was a learning curve for Alex who is relatively new to the Rostel team and its operations. Though he always looked at utility bills to assess the facility’s energy costs, the program showed him in-depth statistics and the savings opportunities available.

The upgrade is expected to reduce electricity use by approximately 108 GJ per year, save 34% in energy, and lower greenhouse gas emissions by an estimated 5.71 tonnes of CO₂e annually.

“I really learned the capital investment is so valuable. SEMI allowed us to stretch our dollar, freeing up money to put towards other machinery and become more productive,” said Alex.

Shaun and Alex’s Advice

The pair has firm advice about what they’d say to a new face in the program.

“Be open if you don’t get your first choice of capital retrofit, because it might not be the most beneficial,” shared Alex.

“Get into the weeds and find out how efficient your equipment really is. Consider how you can leverage programs like this where it is the best of both worlds: saving money and improving sustainability,” said Shaun.

Quick Facts

• Rostel Industries is the manufacturing arm of Precision Drilling, Canada’s #1 land driller and well servicing provider.
• Rostel Industries was founded in the 1970s by three entrepreneurs to satisfy a market need for servicing oilfield equipment and the manufacturing of reliable, consistent, high-quality parts.
• In 1997, Rostel was acquired by Precision Drilling and since has grown and developed significant expertise in the servicing and manufacturing of oilfield equipment.
• ERA’s SEMI program provides industrial and manufacturing facilities with funding support, expertise, and training in energy management.
• SEMI is a $70 million program, with funding provided by the Government of Alberta and Environment and Climate Change Canada. It is designed to help the province’s industrial and manufacturing sectors increase competitiveness, improve energy efficiency, and reduce greenhouse gas emissions.