Replacement of a centralized boiler in Nizhniy Novgorod, Russia

The client is a leading manufacturer of hydraulic boosters and chassis for industrial machines and aircrafts. The company planned to reduce its energy consumption and costs, and modernise the production process.

The management contacted RuSEFF for advisory services and loan financing. The RuSEFF team performed an energy assessment of the production facilities and identified significant energy savings potential in the heating system.

The suggested project consisted of replacement of a centralised boiler with two new hot water boilers with more efficient heat generation.

The investment of $505,000 allowed the company to reduce its energy consumption by 2,664 MWh per year, leading to annual cost savings of $218,000.  This means that the investment will be repaid from energy savings in less than three years. It also led to the reduction of CO2 emissions by 600 tonnes per year, contributing to the mitigation of the negative effects of human activity on the climate.

This project improved the company’s profitability and ensured competitiveness in the market. It demonstrates that investments in energy efficiency are profitable, possible in all industries and can lead to other additional benefits. Having decreased its costs, the company may now focus on other aspects of development.