Euro Ethyl Ltd. is the first plant for ethanol and bioethanol in South-Eastern Europe. Located near railway transport links, only 20 kilometres from a river port and 110 kilometres from the sea port of Varna, the factory has a capacity of 30,000 litres, but is able to produce 120,000 litres of bioethanol per 24 hours of continuous production cycle. The factory employs about 120 people, which for a municipality with a high unemployment rate, makes an important economic and social contribution.
The plant is located amidst agricultural lands, where the basic production raw materials – wheat and corn – are grown. However, the agricultural crops serve as a source of straw as well and therefore Euro Ethyl considered the installation of a straw steam boiler on its premises.
The company applied to BEERECL for a loan and advisory package for this project. The BEERECL team performed analysis of the investment, particularly the potential for energy savings and its technical-financial parameters, as well as the environmental aspects.
The investment of slightly over €2.5 million allowed the company to optimize the steam production and replace two outdated heavy fuel oil boilers. Savings from heavy fuel oil consumption amounted to 64 per cent of the previous energy bill. These savings allow the company to repay the investment from energy savings in slightly over one year, with future cash-flows becoming company income further on.
This way, the company decreases its production costs, increases its margins and, hence, remains competitive, supplying the region with jobs and income.