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 six million cubic metres of compressed natural gas, making the company one of the biggest providers in the region.
The existing compressing equipment was outdated, as it was producing gas compression in two stages. In addition, the company consumed 1,850 MWh of electricity to cool down the compressing equipment.
To save money and energy the company applied for Energocredit financing to replace the current technology with a more process and energy efficient one.
Following the assessment of different suppliers, an Italian producer was selected to supply one new compressor instead of several old ones, allowing to compress gas in just one stage and to a higher maximum pressure (35 MPa).
The $215,000 loan generated a total energy savings of 850 MWh, or $67,000 per year, equal to 46 per cent of the current energy consumption. The energy savings allow the company to repay the investment in just four years, turning the future cash-flows into company income for the years to come. In addition, the production process and product quality were improved.
This project demonstrates how investments in the production process inevitably result in higher energy efficiency and decreased costs – surely a worthy target for businesses to pursue.
This way, Energocredit supports the sustainable 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 Austria.