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More efficient compression leads to 46% of energy savings and long-lasting business
GAOM Group provides compressed natural gas for cars at substations in Yerevan, Armenia. The average annual production is around 6 million m³ of compressed natural gas, making the company one of the biggest suppliers in the region.
The existing equipment was outdated, as it was compressing the gas in two stages. Moreover, the company was consuming 1,850 MWh of electricity to cool the compressing equipment.
To save money and energy, the company applied for GEFF financing to replace the current equipment with more process- and energy-efficient machinery.
After assessing different suppliers, an Italian producer was selected to replace several old compressors with a single new one, not only allowing gas to be compressed in just one stage, but also to a higher maximum pressure (35 MPa).
The US$ 215,000 investment generated total annual energy savings of 850 MWh, or US$ 67,000, equal to 46% of the current energy consumption. This means that the company can repay the investment in less than four years, turning future cash flows into company income for many years to come. In addition, the production process and product quality were much improved.
This project demonstrates how investments in production processes usually result in higher energy efficiency and decreased costs – surely a worthy target for businesses to pursue.
This way, EBRD supports the cost-effective financing and implementation of sustainable energy projects by the private sector. Together, the private, residential and public sectors can make a change in energy consumption patterns and contribute to environmental protection.
This project was supported by the European Union and the Austrian Federal Ministry of Finance.