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Modernisation of Turkish cement production company leads to environmental benefits

Investor
Ogullar Asphalt
Location
Alanya, Turkey
Investment
Renovation of production facilities
Investment Size
€128,892
Financial results
Payback meriod of 2 months; €700,000 of energy savings per year; IRR of 642%
Resource savings
99.6 tonnes of oil equivalent per year
CO2 savings
1,870 tonnes of CO2 per year
Impact
Production increase of 1.5 times, prevention of dust emissions in the production areas

Ogullar Asphalt was established to service the construction and asphalt production sectors in Alanya, although the company also operates in the oil trade, mining and drilling sectors.

The company decided to renovate its production facilities to increase the production capacity, improve the process and reduce costs.

It addressed TurSEFF for affordable financing of the modernisation project, which included replacement of the existing asphalt production line consuming fuel oil with a brand new line that uses LNG.

The TurSEFF team performed the project analysis, including the technical-economic parameters and risks, to make sure the investment leads to sufficient energy savings and reduction of CO2 emissions.

The investment of €128,892 allowed the company to gain €700,000 of energy savings per year, meaning that the investment will be repaid out of savings in two months, leaving the new cash-flow as company income for the years to follow. This was achieved through reduction of energy consumption by 99.6 tonnes of oil equivalent per year with simulatneous increase of production by 1.5 times. In addition, the new system has led to reduction of CO2 emissions by 34 per cent, or 1,870 tonnes per year. The outstanding financial and environmental benefits of the project are mostly due to the fuel switch from heavy fuel oil to LNG combined with improved efficiency of the new line. Besides that, the new plant will prevent dust emissions in the production areas.

This project significantly improved the company’s financial standing and competitiveness in the market. It demonstrates once again that investments in energy efficiency are possible in all types of industries and lead to multiple benefits.

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