CJSC “Agro Firm Verbivske” is one of many Ukrainian SME agricultural producers, cultivating 3,600 hectares of land to produce grain, corn, sunflower and sugar beetroots. The company has been smart in diversifying its business by shifting into new crops and cattle breeding.
To reduce fuel consumption, costs and improve the production process, the company decided to invest in new agricultural machinery.
The company addressed UKEEP
for financing of the project.
The UKEEP team performed the analysis of the proposed technologies, their potential for energy savings, profitability and financial-technical parameters.
The project consisted of replacing the old machinery with a new tractor, cultivator, seeder and combine.
The $515,000 million investment allowed the company to reduce its energy consumption by 40,000 litres per year, yielding $51,000 of annual cost savings. The new machinery not only consumes less fuel, but has larger land grasping, requires less driving through the fields, delivers less losses and meets the tight agricultural deadlines avoiding unexpected breakdowns. The measure also brings a positive environmental effect through the reduction of CO2 emissions by 107 tonnes per year.
This way, the EBRD and UKEEP support the sustainable financing and implementation of 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 environmental protection.