Chemical plant in Bulgaria invests in improved steam production

Neochim PLC, established in 1951, is a large producer of  fertilisers and chemicals, supplied both to the internal Bulgarian market, as well as to the USA, Brazil, Great Britain, France, Italy, Turkey, Poland and Romania. The company, located 200 km from Sofia, makes continuous efforts to maintain the highest business standards, improve the quality of its products, and minimise the impact on the environment.

In line with its corporate objectives, the company decided to improve its steam generation system in order to reduce energy consumption. Neochim applied to BEERECL for a loan and advisory package for this project.

The BEERECL team performed the investment analysis, primarily the potential for energy savings, its technical-financial parameters, as well as the environmental aspects to make sure the company complied with environmental standards and requirements.

The project consisted of installation of an automated steam production management system.

The €470,902 investment allowed the company to optimise steam production, adjusting it to the needs of individual consumers. In addition, extra steam is supplied to the co-generation unit. This way, the company will produce an additional 4,220 MWh of electricity per year and have total annual energy cost savings of €208,514.

The project will be repaid out of energy savings in slightly over two years, turning the future cash-flows into the company’s income. This project is a good example how automatic control systems allow alignment of the company’s production and consumption, leading to substantial cost and resource savings.

This project was supported by Kozloduy International Decommissioning Support Fund (KIDSF).