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Cleaner delivery of materials in a booming construction sector

Investor
Construction Company "Ozodxon Farm" LLC
Location
Almalyk, Uzbekistan
Investment
CNG Cement Trucks
Investment Size
US$ 126,432
Financial results
Payback of 3 years
Energy savings
73.1 MWh per year
Electricity savings
1,160 MWh/year
CO2 savings
46.2 tons per year
Impact
Increased service capacity, improved competitiveness
Donor
EBRD SSF

A booming construction sector is good for the country but can be a liability for the environment. The investment in new CNG fuelled cement trucks is a small step towards lower GHG emissions.

The Armenian company Hytex Plastic CJSC and its Georgian subsidiary Alfa Pet LLC are the largest producers of plastic containers and preforms for plastic bottles in both countries.

The company decided to replace its over 20-year-old Armenian production line, used only for the export of preforms to Georgia, with a new line in Georgia itself, and approached GEFF for financing. The GEFF project team performed the investment analysis, primarily the energy savings potential, and defined the financial-technical parameters.

The project included installation of a new production line, “Husky HyPET 120”, directly in Georgia.

The US$ 930,000 investment allowed the company to reduce its energy costs by US$ 125,000 per year. This means that the investment should repay itself out of energy savings in 7½ years, turning future cash flows into company income for many years to come. The savings come from a decrease in electricity and diesel consumption in the manufacturing processes. In addition to energy savings, the company will also avoid the cross-border transportation and associated costs.

This is a good example of how new technologies can bring energy savings and other production process benefits to companies in different sectors and types of production. Therefore, it is worth checking potential energy-savings when considering company investments, energy-efficiency investments often turn out to be among the most profitable ones.

The EBRD, via GEFF, 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.

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