Water and Energy Savings in Faragallah’s Food Company

Faragallah Food Industries
Alexandria Governorate, Egypt
Energy efficient production lines and cold storage units
Investment Size
US$3.5 million
Financial results
Energy savings
22,000 MWh/year
Natural gas savings
2,700 MWh
Water savings
5,700 m3
CO2 savings
3,270 tCO2eq/year
EBRD Shareholder Special Fund and SEMED Multi-donor Account

New production lines and cooling units that consume less energy and water, result in US$ 380,000 saved per year.

This group is considered to be one of the largest and most diversified food companies in the Middle East. It manages over 28 food factories recognized for their operational standards for the renowned certifications: ISO2000, ISO9001, ISO14001, HACCP and FDA.

Faragallah’s development strategy included the replacement of four production lines and cold storage units with more energy efficient alternatives.

The GEFF team performed the project analysis, assessed the potential of energy savings, financial-technical parameters and risks.

The US$ 3.5 million investment allowed the company to reduce the energy consumption by 22,000 MWh per year, resulting in the annual costs savings of US$ 380,000. This means the investment will be repaid out of energy savings in 3 years, continuing to generate profit for many years to follow. The project also resulted in natural gas savings of 2,700 MWh.

The new equipment led to a reduction of the CO2 emissions by 3,270 tonnes per year, making a valuable input towards mitigation of negative effect of human activity on climate.

“This investment helped us increase our sales, profitability and production efficiency”.

The Green Economy Financing Facility in Egypt was developed by the European Bank for Reconstruction and Development (EBRD) and is supported by EBRD’s Shareholder Special Fund and SEMED Multi-donor Account