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Increased reliability of cement production with lower energy costs, Georgia

Investor
A cement plant
Location
Tbilisi, Georgia
Investment
New ball mills, new air compressors and the introduction of a classifier to prevent over-grinding
Investment Size
$1.5 million
Financial results
Payback period of 5 years; annual cost savings of $308,000
Energy savings
5.6 MWh per year (41%)
CO2 savings
2,240 tonnes of CO2 per year
Impact
Improved production process

One of the leading cement plants in Georgia suffered from outdated equipment and energy comprised a large share of production costs.

The plant decided to invest in the modernisation of its production process and reduction of energy consumption to maintain the best production practices and stay competitive on the market.

The company addressed Energocredit for a loan and advisory package. The Energocredit engineering team analysed various aspects of investment, primarily the potential for energy savings, financial-technical parameters and risks. With the 30-40 year old grinding mills, engines in poor condition, outdated pressure and voltage indicators with lack of capacitors and a classifier at the production line, the potential for optimisation and savings was substantial.

The project, as suggested by the Energocredit team, focused on replacement of the ball mill, introduction of a classifier and replacement of the air compressor.

The $1.5 million investment allowed the company to improve the energy performance and increase reliability of the production cycle. The implemented measures generate $308,000 cost savings per year due to the reduction of electricity consumption by 41 per cent. The investment will repay itself out of energy savings in six years, turning the future cash-flows into company income for years to come. This is not including the operational and maintenance costs reduction, coming from fewer repairs and improved production.

In addition, such large energy savings lead to significant CO2 emission reductions, beneficial for the local community and environment and on the global level.

With such improvements and savings, the company’s future has a better prospective, contributing to local employment and the economy.

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