Case Study

Agricultural company benefits from a biogas plant, Kazakhstan

The client is a large agricultural company in Kazakhstan growing crops at over two thousand hectares, owning four cattle farms, two elevators and other production assets. With over three thousand employees, the company is a leading job provider and economic contributor of the country.

The company decided to decrease own energy consumption by making use of its production wastes – cattle manure, litter and slaughterhouse wastes – to generate renewable energy for own needs. KazSEFF was contacted for an affordable financing and advisory package.
 
The KazSEFF team performed the project analysis, assessed the potential of energy savings, financial-technical parameters and risks.
 
The project included installation of a biogas unit and a CHP with the capacity of 375 kWh.
 
The $2.1 million investment allowed the company to achieve the annual savings of $615,000. This means the investment will be repaid out of savings in less than four years. In the subsequent years, the cash-flow will contribute to company’s revenue. The savings arise due to generation of own renewable energy and replacement of 6,470 MWh of heat and power from the grid. The investment also resolved the issue of waste disposal, resulting in a positive environmental impact, and reduced the costs for fertilizers. Last, but not least, the CO2 emissions were reduced by 3,000 tonnes per year.
 
This project is an example of the wise use of resources and ways to increase the companies’ competitiveness. Agricultural sector provides plenty of opportunities for the renewable energy generation, which shall not be underestimated.
 
The EBRD supports implementation of such sustainable energy projects by the private sector through KazSEFF. Together, the private, residential and public sectors can make a change in the energy consumption patterns and contribute to the environmental protection.

 

21 Sep 2011