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The company constructs roads and produces asphalt for roads and pavements. Due to high energy costs the company showed low profitability and competitiveness in the past.
The company requested RuSEFF technical assistance to reduce energy costs. After conducting an energy assessment RuSEFF experts recommended to replace old electric heaters and fuel oil burners by modern gas burners. The modernisation measures instigated electricity saving of 140 kWh per year and total energy costs savings of 51%. The proposed investment of USD 250 000 resulted in annual costs savings of USD 55 000, a payback period of 3.9 years and an overall return on investment of 26%.
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Company
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Economic sector |
Construction materials/Road construction |
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Region |
Volga region |
Project Goal and Main Investment
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Project goals |
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Reduction of energy costs
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Increasing competitiveness
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Main investments |
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Replacement of outdated burners
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Gasification of plant
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Investment size |
USD 250 000 |
Results
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Project Results |
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Energy savings equivalent to 1 277 MWh
per year
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Reduction of energy consumption: 29%
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Emission reduction of CO2 - eq.: 540
tonnes per year
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Financial viability |
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Annual cost savings: USD 55 000
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Payback period: 3.9 years
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IRR: 27%
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Technical Assistance Funds are provided by:
