BBES Incorporated produces and delivers heat in Banská Bystrica, a picturesque Slovak city with 83,000 inhabitants. The company decided to replace six old natural gas boilers with new high efficiency units to reduce production costs and improve the heat production process.
BBES Incorporated contacted the SlovSEFF participating bank for financing for the investment project. The SlovSEFF team performed the project analysis, assessed its potential for energy savings, financial-technical parameters and profitability to guarantee smooth and successful project implementation.
The $270,000 SlovSEFF investment allowed the company to reduce energy consumption by 751 MWh per year, leading to annual savings of over €31,000. The investment will be repaid from energy savings in 8.7 years. With the expected lifetime of the new equipment, the savings will continue to generate income for many more years and the company will feel the benefits immediately in the first monthly energy bill.
This project improved the company’s financial standing and created new cash-flows, which can be further invested in heat production modernisation, while aiming for even higher energy savings.
The investment provides clear profitability and repayment benchmarks to motivate other district heating companies to invest in sustainability and positive environmental measures resulting in lower emissions.