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New sprayer for fertilisers reduces Russian farm’s costs and improves the environment

Investor
A farm
Location
South Russia
Investment
A new fertiliser sprayer
Investment Size
€175,000
Financial results
Payback period of 2.7 years; annual cost savings of €64,000
Energy savings
280 MWh per year
CO2 savings
65 tonnes of GHG emissions
Impact
Reduced the amount of fertiliser needed, therefore reducing the environmental impact

The company is a Russian farm producing large scale animal fodder for breeders and farmers in the region. It owns several hectares of arable land where the fodder is cultivated. In the past, these fields were cultivated with an old and outdated fertilising sprayer, consuming excessive amount of both energy and fertilisers.

The farmer decided to replace the technology, improving the energy consumption and operations, and decreasing the environmentally harmful distribution of chemical fertilisers. Therefore, he addressed the RuSEFF participating bank for a loan for this project.

The RuSEFF team assisted the client with assessment of the new spraying technology, in particular, its energy saving potential, financial-technical parameters and profitability.

The investment of €175,000 allowed the farm to reduce its energy consumption by 280 MWh per year, resulting in annual cost savings of €64,000. This means that the investment will be repaid from energy savings in less than three years. The company will feel the benefits of this measure immediately through lower energy bills. Last but not least, the new equipment uses less fertiliser and therefore reduced the negative impact of fertilisers on the environment.

This project improved the company’s profitability and competitiveness on the market. In addition, it demonstrates that energy efficiency investments go hand-in-hand with other benefits. It is a good example of responsible business, while its positive environmental effect cannot be measured in monetary terms.

The EBRD through RuSEFF supports the implementation of energy efficiency and renewable energy projects by the private sector. Together, the private, residential and public sectors can make a change in energy consumption patterns and contribute to environmental protection.

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