INSUTECH: Modernizing XPS production for enhanced energy efficiency, increased capacity, and environmental impact

10th of Ramadan, Egypt
Replacement of Extruded Polystyrene Foam Lines
Investment Size
US$eq 933,763
Financial results
$ 2,865,573 incentive Pay-back period 2.6 years
Energy savings
1,646 MWh
CO2 savings
956 tCO2eq/year
Climate change mitigation

The new production line improved energy consumption by 36%, hence reducing the energy bills and overall production costs.

INSUTECH, founded in 1987 in the 10th of Ramadan city, is a leading international company specializing in the manufacturing of comprehensive packaging and insulation solutions. Their diverse product portfolio includes Expanded Polystyrene Foam (EPS), Modified Bituminous Membranes (MBM), and more.

Operating in the insulation technology industry, INSUTECH provides innovative solutions for a wide range of sectors. Their focus areas encompass XPS Foam, Bituminous Emulsions, Crack & Joint Sealants, and other cutting-edge offerings. Notably, their XPS products stand out for their strength, lightweight design, and water resistance.

INSUTECH applied for a loan from Green Economy Financing Facility to elevate their existing XPS Foam Board Extrusion Production lines. The objective was to enhance energy efficiency, increase production capacity, and transition away from the use of Freon R22 gas, which is expected to phase-out by 2030.

Their old XPS production lines exhibited inefficiencies in energy consumption and production speed. To align with sustainability goals and regulatory requirements, INSUTECH replaced these lines with a modern, energy-efficient alternative.

INSUTECH’s investment in modernizing its XPS production line brought significant advancements in energy efficiency, increased production capacity, and positive environmental impact.

The old XPS foam lines were characterized by high energy consumption, with specific electricity consumption of approximately 25 kWh per m3. By replacing these inefficient lines with a new, modern line, INSUTECH improved energy efficiency. The new line have a specific energy consumption (SEC) of 16 kWh per m3, marking a considerable reduction compared to the baseline. This energy-efficient technology allowed for substantial energy savings, optimizing resource utilization and reducing operational costs.

The new XPS production line enabled INSUTECH to enhance its production capacity. With an estimated annual electricity consumption of approximately 2,880 MWh and the ability to produce 180,000 m3, the new line significantly expanded INSUTECH’s manufacturing capabilities. This increased production capacity not only meets growing market demands but also allows for potential business expansion and improved profitability.

The modernization of the XPS production line aligns with INSUTECH’s commitment to environmental sustainability. The transition away from Freon R22 gas, which will be phased out by 2030, demonstrates the company’s proactive approach to reducing its environmental footprint. The new line utilized alternative blowing agents with positive environmental effects, such as CO2, Ethanol, LPG, and DMA. By adopting these environmentally friendly practices, INSUTECH contributes to mitigating greenhouse gas emissions and aligns with global efforts to combat climate change.

The investment resulted in substantial annual energy savings of around 4,457 MWh, leading to a reduction of 2,589 tCO2eq in greenhouse gas emissions. By adopting energy-efficient technology and optimizing the production process, INSUTECH not only minimized its environmental impact but also improved its overall energy efficiency.

The sub-project generated employment opportunities, both temporary and permanent. The installation of the new production line created 40 temporary jobs. Additionally, it created 10 permanent jobs, enabling sustained employment opportunities within the company.

The GEFF team evaluated the technical and financial feasibility of the project and provided advice on the best available technologies that will enable the company to reduce energy consumption and increase profitability.

GEFF Egypt was developed by the European Bank for Reconstruction and Development (EBRD) and is supported by the European Union Neighbourhood Investment Facility