NCCHP achieves 80% energy generation efficiency at DAMFI through adoption of modern trigeneration/CCHP plant

The Sub-borrower, National Company for CCHP (NCCHP) is a Special Purpose Vehicle (SPV) established by the ‘Intro Group’ to own, manage, and finance the investment of a trigeneration Combined Cooling, Heat and Power (CCHP) plant developed at a factory owned by ‘Dough And More Food Industries’ (DAMFI).

DAMFI, as a beneficiary of the investment, is a bakery company supplying buns, toast bread, and flatbread and other products to well-known brands like McDonald’s Egypt and KFC.

Driven by the desire to improve its operational efficiency and enhance their environmental profile, DAMFI contracted NCCHP through a 15-year Energy Purchase Agreement (EPA) to cover the energy needs of its factory located in the 6^th of October city from a trigeneration plant. The plant includes a gas engine to generate electricity, a waste heat recovery boiler to produce steam, and an absorption chiller for cooling purposes.

The Sub-borrower NCCHP received a loan of $1.01 million through the GEFF Egypt programme to cover the capital investment of this project and was qualified for a 15% incentive amounting to about $151,400. This incentive was granted since the proposed technology complies with the performance requirements of EU directives/laws.

This investment was made to reduce DAMFI’s dependency on diesel fuel as well as lower their energy bills and carbon footprint. The new system replaced an old inefficient diesel generator and a traditional boiler that used 3.4 million litres of diesel every year.

The new CCHP system offers DAMFI a wide range of operational and financial benefits. With system’s annual output of 7.56 GWh of electricity, 6,720 tonnes of steam and chilled water amount equivalent to 4.61 GWh of cooling energy, DAMFI will see about 35% reduction in annual energy cost estimated at over $482,000 annually. The CCHP system also raises DAMFI’s generation efficiency to 80% compared to 46% of the replaced system, thus leading to an estimated annual primary energy savings of 15,481 MWh.  This will reduce greenhouse gas emission by 4,962 tCO_2eq. every year, or 55% of their operations impact on the environment. All these benefits directly enhance DAMFI’s market competitiveness.

In addition to the availability of funding and financial incentives, the GEFF Egypt facility also offered NCCHP and DAMFI free technical support to help evaluate and assess the technical and financial feasibility of the project while providing advice on the best available relevant practices.

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