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Energy efficiency in butter production

Investor
Kherson butter factory
Location
Ukraine
Investment
Cooling system, biomass boilers
Investment Size
$47,000
Financial results
$148,000 savings per year
Energy savings
350,000 m3 per year
CO2 savings
700 tonnes of CO2 equivalent per year
Donor
Austria

Investment paid off in three months

Kherson Butter Factory is the biggest butter and cheese producer in the region since 1963. The company employs 200 people and annually manufactures 1,500 tonnes of cheese and 250 tonnes of butter.

To decrease energy costs and maintain affordable product prices for customers, the company decided to invest in energy efficiency and renewable energy.

The company addressed UKEEP for financing and advisory package.

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

The final project included rehabilitation of the cooling system and replacement of gas boiler with a wood chips boiler for heating of administrative buildings and production processes.

The $47,000 investment allowed the company to reduce its natural gas consumption by 350,000 cubic meters per year, yielding $148,000 annually. This means the investment will be repaid from energy savings in just 3 months. In addition, it leads to positive environmental impact by reducing 700 tonnes of CO2 emissions. This investment reduced the company’s sensitivity to gas supply disruptions and price peaks. It helped the company to increase its net profit in the first 9 months of 2015 by more than 75 per cent.

Such simple measures are the first and most necessary steps for any food company and for Ukraine in general, since they make the much needed food market sustainable and food products competitive and affordable.

This way, the EBRD and UKEEP support the sustainable financing and implementation of energy efficiency and renewable energy projects by the private sector.

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