Modern Ukranian cement production saves 3 million tonnes CO2 annually

CJSC “Ivano-Frankivsk Cement” is one of the leading Ukrainian producers of construction materials, including cement, gypsum and reinforced concrete products.

Recognizing the threat of rising energy prices and to reduce energy consumption and dependency, the company decided to invest in energy efficiency and researched the potential solutions.

The company addressed UKEEP for financing of the project and advisory package.

The UKEEP team performed the analysis of the proposed technologies, their potential for energy savings, financial-technical parameters and profitability.

The project consisted of shifting from the traditional ‘wet’ production method, which is energy intensive and obsolete by modern standards, to the ‘dry’ method that requires replacement of the whole production line, construction of new storage, crushing, grinding and feed-in units, as installation of new kiln, pre-heater, cooler and other equipment. Major reconstruction pays off in multiple ways.

The $87 million investment, where UKEEP financing made up $15 million, helped the company to reduce its energy consumption by 50 per cent with the simultaneous 60 per cent expansion of production. Annual energy cost savings amount to $10 million allowing to repay investment from energy savings only in 9 years. In particular, the natural gas consumption was reduced by 21 million cubic meters per year, while coal and electricity consumption were reduced by 90,000 tonnes and 13,000 MWh per year accordingly. Needless to say, the CO2 emissions reduction as a result of this project reached significant 3 million tonnes per year.

The EBRD and UKEEP support the sustainable financing and implementation of energy efficiency and renewable energy projects by the private sector. Together, the private, residential, and public sectors can make a change in the energy consumption patterns and environmental protection.