Case Study

Increased reliability of cement production with lower energy costs, Georgia

One of the leading cement plants in Georgia suffered from its outdated equipment, while energy comprised a large share in the production cost.
The plant decided to invest into modernization of its production process and reduction of energy consumption to maintain the best production practices and stay competitive on the market.
 
The company addressed Energocredit for a loan and advisory package. The Energocredit engineering team analysed various aspects of investment, primarily the potential of energy savings, financial-technical parameters and risks. With the 30-40 years old grinding mills, engines in poor condition, outdated pressure and voltage indicators, with the lack of capacitors and a classifier at the production line  the potential for optimization and savings was substantial.
 
The project, as suggested by the Energocredit team, focused on replacement of the ball mill, introduction of a classifier and replacement of the air compressor.
 
The $1.5 million investment allowed the company to improve the energy performance and increase reliability of the production cycle. The implemented measures generate $308,000 cost savings per year due to reduction of electricity consumption by 41 per cent. The investment will repay itself out of energy savings in six years, turning the future cash-flows into company's income for the years to come. This is not including the operation and maintenance costs reduction, coming from less repairs and improved production.
 
In addition, such large energy saving leads to significant CO2 emissions reduction, beneficial for the local community and on the global level.
 
With such improvements and savings, the company’s future has better prospective, contributing to local employment and economy.
 
15 Apr 2015