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Mongolian boilers producer boosts productivity and energy efficiency

Investor
A manufacturer of boilers
Location
Ulaanbaatar, Mongolia
Investment
New production line
Investment Size
US$ 944,400
Financial results
Payback of 8 years
Energy savings
3,166 MWh per year
CO2 savings
1,014 tonnes per year
Impact
Increased production output, improved competitiveness
Donor
SSF

US$ 75,750 in energy costs saved per year

GEFF loan is helping a Mongolian manufacturer of boilers improve its production line and reduces energy costs by replacing old and inefficient equipment.

The company, established in 1998 and located in Ulaanbaatar manufactures high-pressure boilers for thermal power stations. The Company also provides boiler maintenance and repairing services to their customers.  Recentrly the Company started to produce oxygen for local entities in the capital.

The company decided to decrease its energy costs by replacing old, bulky and highly inefficient and machines with a new modern, fully automated tube bending, and welding line for the production of boiler serpentines. The new technology allows significant energy saving, around 87%, compared to the old configuration. The new production line requires less number of operations to produce the final product, is less bulky and more energy efficient.

The GEFF team performed the project analysis, assessed the potential of energy savings, financial-technical parameters and risks. The EBRD Special Shareholder Fund supported the project by financing the Technical Cooperation that included an energy audit.

The US$ 944,400 investment allowed the company to reduce the primary energy consumption by 3,166 MWh per year, resulting in the annual costs savings of US$ 75,750. This means the investment will be repaid out of energy savings in 8 years, continuing to generate profit for many years to follow. The project also resulted in increase of production quality.

The new equipment led to a reduction of the CO2 emissions by 1,014 tonnes per year, making a valuable input towards mitigation of negative effect of human activity on climate.

The Green Economy Financing Facility in Mongolia was developed by the European Bank for Reconstruction and Development (EBRD) and is supported by the EBRD Special Shareholder Fund.

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