Improving Energy Efficiency and Promoting Renewable Energy in the Agro-Food and other Small and Medium Enterprises (SMEs) in Ukraine

22 November 2011
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Improving Energy Efficiency and Promoting Renewable Energy in the Agro-Food and other Small and Medium Enterprises (SMEs) in Ukraine


Improving Energy Efficiency and Promoting Renewable Energy in the Agro-Food and other Small and Medium Enterprises (SMEs) in Ukraine
GEF AGENCY(IES): UNIDÎ
OTHER EXECUTING PARTNER(S): Institute of Renewable Energy NASU, National Agency of Ukraine for Efficient Use of Energy Resources, Ministry of Agrarian Policy of Ukraine
Project Objective: To develop a market environment for scaling up energy efficiencies and enhanced use of renewable energy technologies for fuel switching in the energy intensive manufacturing small and medium enterprises (SMEs) in Ukraine as a basis for promoting their competitiveness while ensuring an integrated approach for lower carbon intensity and improvement in the local environment.


The following 20 projects have been pre-selected:
- Heatpump for industrial use
- LED solar street lighting
- Improved pelletising of solid biomass
- Energy efficient compressors for compressed air
- Biomass boilers
- Biogas and bioenergy for greenhouses (3 projects)
- Biogas swine farm
- Biogas poultry farm
- Biogas cattle
- Sawmill CHP residues
- Biodiesel from spent oil and fat
- Solar/efficiency dairy
- Bakery solid biomass ovens and efficiency
- Bakery gas new efficient ovens
- Paper mill energy efficiency
- Energy efficiency project: use CHP for CO2 generation for food and beverage industry
- Sugar producing plant energy efficient boilers
- Energy Management Systems demonstration

PRELIMINARY PROJECT PIPELINE

1. The Company: OJSC “Krymmoloko”
Main activities: a leading enterprise in Crimea on milk processing and production of dairy products (more then 50 types of products). State enterprise Krymmoloko was founded in 1960 and restructured to Open Joint Stock Company Krymmoloko in 1996.
Region: The Crimea, Simferopol
Project description: [i]Installation of new equipment, introduction of energy saving technologies and use of renewable sources of energy in order to reduce consumption volume of traditional fuel and energy resources.

Project goals:
The project aims to:
- Modernize the production process
- Decrease gas and electricity consumption
- Increase utilization of renewable sources of energy
Main Investments:
- Installation of heliocollectors for heating of technical water
- Replacement of pumping equipment with high efficiency coefficient and low energy consumption;
- Replacement of boiler burner (operational boiler automatics);
- Installation of equipment for frequency regulation of boiler electric motors and vents;
- Purchase of electric equipment for milk pasteurization
Investment size: Approximately $ 3,653,200
Results of the Project :
- Electricity consumption reduced by 1226 MWh per year
- Consumption of natural gas reduced by 152,400m3 per year
Emission reductions:
Reduction of 775 tons of CO2 equivalents per year

2. The Company PE “Krympapir”
Main activities: The Company is engaged in production of corrugated carton for food industry needs and production of toilet paper.
Region: The Crimea, Simferopol
Project description: Installation of a modern boiler DU-16-14-GM for technological needs in conjunction with steam turbines (PTU- 250-14/5 of 250 kW capacity) and turbo-generator to produce electricity through the operation pressure of the steam produced for technological needs.
Project goals:
The project aims to:
- Save 6908 MWh of electricity
- Reduce consumption of natural gas for 1,533,000 m3 per year
Main investments:
- Installation of modern boiler DU-16-14-GM
- Installation of steam turbines (PTU- 250-14/5 of 250 kW capacity) and turbo generator for production of electric energy
Investment size: Approximately $ 694,688
Results of the Project:
Energy / resource savings:1,533,000 m3 of natural gas
Electricity consumption reduced by 6,908 MWh per year
Emission reductions: Reduction of 5,680 tons of CO2 equivalents per year

3. The Company: PJSC “Concern Khlibprom”
Main activities: Concern Khlibprom, PJSC unites fourteen processing bakery enterprises in Ukraine and is one of the leaders of bakery production and grain processing in Ukraine.
Region: Lviv
Project description: Utilization of alternative fuel in bakery industry through replacement of steam and water heating boilers that work on natural gas by solid fuel boilers that can combust fuel pellets produced of grain by-products. Introduction of the modern standards of energy management.
Project goals:
The project aims to:
- use of alternative fuel in baking industry
- reduction of natural gas consumption production process modernization
- introduce energy management standards ISO 50 001
Main investments: installation of the solid fuel boilers that can combust fuel pellets produced of grain by-products.
Investment size: Approximately ˆ 830,700
Results of the Project :
Resource savings: natural gas consumption reduced by 1,674,000 m3 per year
Emission reductions: Reduction of 3,280 tons of CO2 equivalents per year

4. The Company: Public Enterprise Scientific Industrial Complex “ Progress”
Main activities: Public Enterprise Scientific Industrial Complex “Progress” is specialized on production of the ophthalmologic medical equipment, heat pumps and heat exchangers. Heat pumps are produced using a specific “know how” technology where heat exchangers have spiral construction which allows using heat in a full capacity.
Region: Nizhyn, Chernigiv region
Project description: The project will provide further development of heat pumps production and setting up a production of heat pumps of different capacity (30, 50, 100 kWt), increase of quality and reliability of heat pumps.
Project goals:
The project aims to:
- set up serial production of heat pumps (“water-water” type) of a different capacity (30/50/100 KWt)
- Reduction of product costs
- Increase reliability and quality of products
Main investments: modernization of the technological process of heat pumps production and heat exchangers and installation of necessary equipment.
Investment size: Approximately $2,420,000
Results of the Project :
Serial production is set up:
heat pumps in the amount of 500 per year
Emission reductions:
Indirect reduction of 21,000 tons of CO2 equivalents per yea

5. The Company: PE ATT Solar
Main activities: enterprise specializes in a production of aluminum heat pipes and modern solar hightemperature collectors based on heat pipes.
Region: Kyiv
Project description: The project provides development of production of aluminum heat pipes and modern solar collectors and regenerative heat exchangers based on them for their utilization at industrial enterprises
Project goals:
The project aims to:
- Setting up of serial production of high-temperature solar collectors based on heat pipes
- Increase affordability of high-temperature solar collectors and heat exchangers for mass purchase
Main investments: modernization of the technological process of collectors and heat exchangers and purchase of necessary equipment.
Investment size: Approximately $ 420,000
Results of the Project :
Serial production set up of:
- high-temperature collectors on heat pipe in the amount of 4800 m2 per year
- heat exchangers in the amount of 300 (conditional air use of 1000 m3 per hour) per year
Emission reductions:
Indirect reduction of 33,000 tons of CO2 equivalents per year

6. The Company: EET International Ltd (a part of Kvazar)
Main activities: high technology enterprise, production of LED lamps. As a part of Kvazar enterprise is included into five world producers of solar batteries.
Region: Kyiv
Project description: The project will give a possibility to purchase modern equipment for development of a new design, engineering and manufacturing of LED lamp.
Project goals:
The project aims to:
- Setting up of a serial production of LED lamps in order to make then affordable for mass purchase
- Increase of production capacity up to 6000 lamps per year
Main investments: modernization of the technological process of LED lamps production, purchase of necessary equipment for testing and quality control, installation of the equipment for base details production.
Investment size: Approximately $ 646,250
Results of the Project :
A serial production of LED lights is set up (~6 000 per year), LED lights become affordable for mass purchase.
Emission reductions:
Indirect reduction of 3,000 tons of CO2 equivalents per year

7. The Company: JSC TerA (Ternopil Confectionary Factory)
Main activities: Ternopil Confectionary Factory was founded in 1945. It specializes on the production and sale of bakery and various confectioneries: waffles, biscuits, marmalades, candies – in total over 80 items.
Region: Ternopil
Project description: The project provides modernization of heat supply system at the enterprise by installing of two biomass boilers with 0.1 MWt and 0.2 MWh of heat energy capacity.
Project goals:
The project aims to:
- modernization of plant’s heat supply system
- reduction of natural gas consumption while modernization of heat supply system
- modernization of plant’s lighting supply system
Main investments: installation of two biomass boilers with with 0.1 MWh and 0.2 MWh of heat energy capacity and installation of energy saving lighting.
Investment size: Approximately $ 58,750
Results of the Project :
- Resource savings: natural gas consumption reduced by 84,000 m3 per year
- Electricity consumption reduced by 21 MWh per year
Emission reductions:
Reduction of 170 tons of CO2 equivalents per year

8. The Company: Holding “Technogas” LLC and “Teplo-Win” LLC
Main activities: Technogaz LLC, a manufacturer of industrial gases (oxygen, argon, gas mixtures) for medical and industrial institutions. The main producer of food carbon dioxide for the food industry.
Teplo Vin LLC engaged in the development and implementation of energy saving technologies, energy audit, development of project-cost documentation, utilization of thermal energy in the Technogaz holding companies.
Region: Vinnytsya
Project description: Installation of recuperative heat exchange unit and heat pumps for heat generation. (High-temperature heat recycling by regenerative heat exchange during production of food carbon dioxide and sale of thermal energy to munipal utilities companies of Vinytsya city. Utilization of low-temperature heat (40C) generated during production of food carbon dioxide using heat pumps and sale of thermal energy munipal utilities companies of Vinytsya city.)
Project goals:
The project aims to:
- Modernize the production process
- Install recuperative heat exchange unit
- Install heat pumps
- Decrease gas consumption
Main investments: Building of the recuperative heat exchange unit and heat pumps for heat generation.
Investment size: Approximately $297,408
Results of the Project :
Resource savings: natural gas consumption reduced by 2 million m3 per year
Emission reductions:
Reduction of 3,920 tons of CO2 equivalents per year

9. The Company: TechnoSoyus Ltd
Main activities: Intensively developing enterprise was established in 1992. Specialized in
manufacturing of:
- equipment for malting, brewing and food industries;
- spare parts to equipment for enterprises engaged in paper-and-pulp industry;
- equipment for processing of oilseeds and biofuel production;
- cleaning units, centrifugal separators, as well as centrifugal rotors, filters for mining concentration industry;
Number of employees at the enterprise is 240 employees.
Region: Donetsk
Project description: The project provides for modernization of heat supply system at the enterprise by installing of two biomass boilers with 0.5 MWt of heat energy capacity.
Introduction of the modern standards of energy management.

Project goals:
The project aims to:
- modernization of plant’s heat supply system
- reduction of ñoal consumption while modernization of heat supply system
- introduce energy management standards ISO 50 001
Main investments: installation of two biomass boilers with 0.5 MWt of heat energy capacity.
Investment size: Approximately ˆ 130,000
Financing proposal:
Own equity (USD): 35,000
Loans (USD): 56,000
Proposed GEF grant (USD): 39,000
GEF grant (%): 30
Results of the Project :
Resource savings: coal consumption reduced by 60 tons
Emission reductions:
Reduction of 25 tons of CO2 equivalents per year

10. The Company: OJSC “Nizhyn Hlib”
Main activities: Open joint stock company “Nizhyn Hlib” has two departments: bakery and confectionary. This company produces 65 different types of bread, rolls, confectionery and cookies.
Region: Nizhyn, Chernigiv reg
Project description:Replacement of old furnace for energy efficient one as well as modernization of boiler house will increase production capacity and reduce natural gas consumption during production process.
Project goals:
The project aims to:
Increase competitive advantage through reduction of natural gas consumption and electric energy consumption reduction.
Main investments:
- Replacement of an old furnace
- Modernization of a boiler house
Investment size: Approximately $ 400,000
Results of the Project :
Resource savings: natural gas consumption reduced by 170,000 m3 per year
Emission reductions:
Reduction of 335 tons of CO2 equivalents per year

11. The Company: “Polissya-Agro” LLC
Main activities: Vertically integrated company that includes pig farm in the amount of 18 500 pigs and fields for growing of grain-crops, technical / industrial crops and other plants cultivation that is used for pigs feeding.
Region: Rivne
Project description:Biogas plant construction for heat and electricity generation from biogas supplied from the organic wastes utilization.
Project goals:
The project aims to:
- Modernize the production process
- Installation of cogeneration system for biomethane disposition
- Production of heat and electric energy for own needs
- Organic fertilizers production
Main investments:
- cogeneration system for biomethane receiving;
- reconstruction of livestock complex for optimization of biogas plant operation
Investment size: Approximately $ 2,600,000
Results of the Project :
- Energy / resource savings: 2847 G cal heat energy per year
- Electricity consumption reduced by 2584.20 MWh per year
- Biogas production – 546,500 m3
- Fertilizers production – 51,100 tons / year
Emission reductions:
Reduction of 4,100 tons of CO2 equivalents per year

12. The Company: “Elite wood” LLC
Main activities: The enterprise in engaged in woodworking industry, production of parquet and
furniture board. Its production capacity is: parquet – 30,844.10 sq. m; furniture board – 791.80 sq. m per year.
Region: Zakarpattya
Project description: Production of electric and thermal energy from cogeneration station that works on the pyrolysis of the wood run-offs received during wood processing.
Project goals:
The project aims to:
- Modernize the production process
- Install cogeneration unit
Main investments: Building of the cogeneration station with the capacity of 0.5 MWt of electric energy and 2 MWt of heat energy on the basis of the destructive distillation of the self-made wood runoffs.
Investment size: Approximately $ 5,625,000
Results of the Project :
- Energy / resource savings: 15,768 MWh heat energy per year
- Electricity consumption reduced by 3942 MWh per year
Emission reductions:
Reduction of 5,755 tones of CO2 equivalents per year

13. The Company: JSC “Slovyanskoliya”
Main activities: The Company is engaged in oil vegetable production from various raw materials (sunflower, soya, rape).
Region: Donetsk region, Slovyansk
Project description: Utilization of sunflower husk for steam and electric energy production through installation of gas generation station with four gas generators and ancillary equipment and cogeneration station with two cogeneration units and ancillary equipment.
Project goals:
The project aims to:
- Modernize the production process
- Meet the enterprise’s needs in heat and electric energy through sunflower husk combustion
- Create husk utilization system
Main investments:
Installation of the gas generating station with 4 gas generators WBG-1800 with ancillary equipment and cogeneration station with 2 cogeneration units GMS420 (GE Jenbacher) with ancillary equipment.
Boilers modernization.
Investment size: Approximately $ 5,065,000
Results of the Project :
- Energy savings: 25120 G cal heat energy per year
- Electricity consumption reduced by 22,448 MWh per year
Emission reductions:
Reduction of 16,510 tons of CO2 equivalents per year

14. The Company: “Radial-Agro” LLC
Main activities: The Company is engaged in chicken eggs production.
Region: Kharkiv, Lyubotyn Town
Project description:Construction of biogas plant for processing of livestock farm wastes with production of heat and electric energy with capacity of 500 kWh / hour
Project goals:
The project aims to:
- Modernization of the current infrastructure for farm waste utilization
- Increase energy efficiency by installation of cogeneration system for biomethane disposition
- Produce heat and electric energy for own needs
Main investments: cogeneration system for biomethane disposition reconstruction of livestock complex for optimization of biogas plant operation
Investment size: Approximately $ 2,585,000
Results of the Project :
- Energy savings: 1828 G cal heat energy per year
- Electricity consumption reduced by 1083 MWh per year
- Consumption reduced by 69,000 m3 per year
Emission reductions:
Reduction of 1,875 tons of CO2 equivalents per year

15. The Company: Metan LLC
Main activities: Methan LLC is a specialized company on construction and maintenance of the chain of modern automobile gas-filling compressor stations with a usage of equipment and technologies of GNC GALILEO S.A. (Argentina) – a world leader in this industry. Usage of this equipment and technologies allows reducing electric energy use by three times in comparison with equipment of other producers represented on the gas-filling stations on the market of Ukraine.
Methan LLC also organizes and conducts wholesale and retail sale of compressed and liquefied natural gas.
Region: Kyiv
Project description: construction of biogas plant for biogas production from biomass and its utilization automobile gas-filling compressor stations as a fuel for automobile transport.
Project goals:
The project aims to: Reduce GHG emissions and other pollutants through replacement of organic fuel usage (petrol) by biogas as a fuel for automobile transport.
Demonstration value: nowadays in Ukraine there are no examples of purified biogas usage as a fuel for automobile transport.
Main investments:
- Construction of biogas plant for biogas production
- System for biogas purification
Investment size: Approximately $ 4,400,000
Results of the Project :
- Biogas production – 3.7 million m3 per year
- Fertilizers production – 20,000 tons per year
Emission reductions:
Reduction of 4,350 tons of CO2 equivalents per year

16. The Company: Private Agricultural Enterprise “Uman Greenhouse Complex”
Main activities: The Company is engaged in growing vegetables in greenhouses. “Uman Greenhouse Complex” is one of the leading companies at the market of Central Ukraine. The Company grows up to 17,000 centners of vegetables per year. The Company establishes a wide distribution system.
Region: Cherkasy, Uman town
Project description: Building of biogas plants to substitute natural gas consumed by the cogeneration units with the produced biogas and biomass boilers for heat generation.
Project goals:
The project aims to:
- Modernize the production process
- Install cogeneration units
- Install biogas plant
- Install biomass boilers
- Decrease gas and electricity consumption
Main investments: 1st stage: Installation of 2 MW cogeneration units for combined heat and power generation; 2nd stage: Installation of biogas plant to substitute natural gas consumed by the cogeneration units with the produced biogas and; 3nd stage: Installation of biomass boilers for heat generation.
Investment size: Approximately $ 4,500,000
Results of the Project :
Resource savings: natural gas consumption reduced by 26.5 million m3 per year
Emission reductions:
Reduction of 51,940 tons of CO2 equivalents per year

17. The Company: PE “StryiTeplitsya”
Main activities: The Company is engaged in growing vegetables in greenhouses.
“StryiTeplitsya” is one of the leading companies at the market in Western Ukraine. The Company grows up to 20,000 centners of vegetables per year. The Company establishes a wide distribution system.
Region: Lviv
Project description: Installation of biomass boilers to substitute the use of natural gas
Project goals:
The project aims to:
- Modernize the production process
- Install biomass boilers
- Decrease gas consumption
Main investments: Installation of biomass boilers with total installed capacity up to 3 MW to replace the use of natural gas.
Investment size: Approximately ˆ 1,202,080
Results of the Project:
Resource savings: natural gas consumption reduced by 2,700,000 m3 per year
Emission reductions:
Reduction of almost 5,290 tons of CO2 equivalent

18. The Company: “Kilgan” PE
Main activities: The Company is engaged in biodiesel production. «Kilgan» PE is the modern biodiesel producer in Western Ukraine. The Company grows rape as the raw materials for biodiesel production.
Region: Lviv
Project description: Construction of biodiesel plant for processing of burnt food oil.
Project goals:
The project aims to:
- Modernize the production process
- Install biodiesel plant for processing of burnt food oil
- Solve environmental problems related to storage of burnt food oil
Main investments: biodiesel plant for processing of burnt food oil
Investment size: Approximately $ 2,700,000
Results of the Project:
Producing up to 30,000 tons of biodiesel per year, solving of environmental problems related to storage of burnt food oil and producing and uses of diesel
Emission reductions:
Reduction of 9,860 tons of CO2 equivalents per year

19. The Company: “LIBER” PE
Main activities: The Company is engaged in biodiesel production since 2003 and operates own chain of biodiesel refilling station.
Region: Kherson
Project description: Modernization and reconstruction of Liber plant for creation of the full-cycle biodiesel production complex, introduction of international quality standards of biodiesel. Planned production volume is 50 tons per day.
Project goals:
The project aims to:
- modernization of biodiesel production
- increase of biodiesel production capacity
- introduction of international quality standards of biodiesel
Main investments: purchasing of additional technological equipment for biodiesel processing and its
installation and integration to current production units.
Investment size: Approximately $ 2,164,116
Results of the Project:
Producing up to 50,000 tons of biodiesel per year
Emission reductions:
Reduction of 49,295 tons of CO2 equivalents per year

20. The Company: Schevchenko LLC
Main activities: The Company manages a cattle farm (1500 heads) and produces grain products and technical grain for cattle feeding.
Region: Khmelnytskiy region

Project description: Construction of biogas plant for processing livestock farm wastes with production of heat and electric energy.
Project goals:
The project aims to: Installation of cogeneration system for biomethane receiving
Production of heat and electric energy for own requirements
Main investments: cogeneration system for biomethane receiving reconstruction of the cattle farm for optimization of biogas unit operation
Investment size: Approximately $ 1,414,625
Results of the Project :
- Biogas production – 1500 000 m3
- Fertilizers production – 85 000 tons / year
Emission reductions:
Reduction of 3,190 tons of CO2 equivalents per year

Further information: uapb@uapb.eu
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