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Frozen seafood company replaces old refrigerator trucks, Russia

Investor
A trader of frozen seafood
Location
Volga region, Russia
Investment
Three refrigerator trucks and refrigerators
Investment Size
€700,000
Financial results
Payback period of 5 years; annual cost savings of €140,000
Energy savings
461 MWh per year
CO2 savings
106 tonne reduction in GHG emissions
Impact
Increased reliability of freezing

The company is a trader of frozen seafood, operating at a regional level. This start-up entrepreneur began building his business with second-hand refrigerator trucks. After a successful initial stage of business growth, the outdated vehicles started causing high energy costs and unreliable freezing quality. These two factors could severely threaten the business’ success.

The company addressed a RuSEFF Participating Financial Institution to lease new refrigerator trucks and refrigerators. The RuSEFF team performed the project analysis, assessed the energy saving potential, financial-technical parameters and profitability of the investment.

The investment of €700,000 allowed the company to reduce its energy consumption by 461 MWh per year, resulting in annual cost savings of €140,000. The investment will be repaid from energy savings in five years, continuing to generate savings for the subsequent years. In addition, the company does not have any more problems with the reliability of the freezing quality and is therefore able to provide a good service and earn its profits.

This project improved the company’s financial standing and secured its future in the market. It demonstrates that energy savings are possible in the vehicles sector, where leasing schemes can be applied to simplify the investment process.

The EBRD, through RuSEFF, supports 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 energy consumption patterns and contribute to environmental protection.

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