Case Study

Profitable energy efficiency investments in Romanian pulp and paper company

Romwelle PM SA is a producer of pulp, paper and paperboard, located at the border with Serbia and Bulgaria. Its excellent location provides all grounds to become a major player in pulp and paper market in the region. To reach this goal the production process needed to be significantly improved.

The company decided to invest in energy efficient modernization of the production and addressed RoSEFF for financing.
 
The RoSEFF team performed analysis of the energy saving potential of the company and of the suggested measures, their financial-technical parameters and profitability of the project.
 
The final project comprised replacement of the old production equipment, including steam distribution network, pumps, compressors, refiners, water feeding system, modernization of a steam boiler, purchase of two water softening plants, frequency converters and implementation of the energy management system. In fact, the company split this project into three investments. Upon successful implementation of the first tranche and achievement of high energy saving and production results, the other two followed.
 
The overall €3,030,547 investment allowed the company to decrease its energy consumption by 24% per year, leading to substantial cost savings. The investment will be repaid from energy savings only in less than 1 year, leaving the cash flow as an income for many more years to follow. These savings are achieved immediately and can be seen well in the energy bill after the project implementation.
 
In addition, all measures delivered a tremendous environmental impact by decreasing the CO2 emissions by 62,903 tonnes per year – a substantial input in mitigation of the negative effect of human activity on climate.
 
With the priority task solved – decreasing the energy bill, which makes up the largest share in the net production cost of the company – the company can now focus on other investments to enhance its leadership in the region.
 
This project demonstrates well the huge potential of pulp and paper industry in energy efficiency improvements. Been one of the most energy intensive production sectors, it offers great opportunities for highly profitable and fast repaid energy related investments.
 
22 Apr 2015