Case Study

New sprayer for fertilizers reduces Russian farm's costs and improves environment

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 In the past, these fields were cultivated with an old and outdated fertilizing sprayer, consuming excessive amount of both energy and fertilisers.

The farmer decided to replace the technology, thus, improve the energy consumption, operation and decrease the environmentally harmful distribution of chemical fertilizers. 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 the annual cost savings of €64,000. It means the investment will be repaid from energy savings in less than three years. The company will feel the benefits of this measure immediately through the lower energy bill. Last but not least, the new equipment consumes less and optimal amount of fertilizers, hence, provides lower negative impact 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 and wise use of resources, while its positive environmental effect cannot be measured in monetary terms.
 
The EBRD through RuSEFF supports implementation of the energy efficiency and renewable energy projects by the private sector. Together, the private, residential, and public sectors can make a change in the energy consumption patterns and contribute to environmental protection.

 

23 Jun 2015