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Polish bakery modernises its dough-production line

Investor
A bakery
Location
Zubrzyca Gorna, Poland
Investment
Replacement of two dough-preparation units with one new machine
Investment Size
€148,000
Financial results
Payback period of 2 years; IRR of 58%; €20,000 per year cost savings
Energy savings
251 MWh per year
CO2 savings
347 tonnes of CO2 per year
Impact
Increased production volumes and process improvements

Established in 1996, the bakery is a family business in southern Poland, which expanded over time and currently offers over 100 products, owns 20 sales outlets and a fleet of vans. The strategic goal is to continue growing and increasing competitiveness by developing new products and investing in new technologies.

To reduce the energy consumption and increase the production capacity, the company decided to replace parts of its production line.

The company approached PolSEFF for an affordable financing solution and technical advice. The final project included replacement of two dough preparation units with one new energy efficient machine.

The PolSEFF team performed an analysis of the proposed technology, its potential energy savings, financial-technical parameters and profitability.

The €148,000 investment allowed the company to save over €20,000 per year on energy consumption. These savings can be seen as additional income. The investment will be repaid from energy savings and revenues from the increased production volume in just two years. In addition, the company reduced its CO2 emissions by 347 tonnes per year, making a valuable contribution to the mitigation of the negative effects of human activity on the climate.

This project demonstrates that replacement of existing machinery usually leads to energy savings, coupled with other benefits, such as production capacity increases or process improvements. Therefore, it is worth checking the energy saving potential of investment measures to see if they can generate additional cash-flows from the energy consumption reduction and, hence, increase the attractiveness of the investment.

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