Energy efficiency improvement in bakeries and confectioneries HOW TO REDUCE ENERGY COSTS. Guide for Entrepreneurs

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1 Energy efficiency improvement in bakeries and confectioneries HOW TO REDUCE ENERGY COSTS Guide for Entrepreneurs

2 Can modernization of machinery and technologies in a bakery and confectionery be cost-effective? Polish entrepreneurs are well aware of growing energy costs. Social attitudes to environmental degradation are also increasing the will to promote and introduce energy efficiency. During the first edition of the PolSEFF programme Polish entrepreneurs implemented Investment projects in the years They have shown that modernization of bakeries can bring significant energy savings. Projects that involved modernization of bakeries and confectioneries have proved to reduce energy consumption by at least 30% and bring savings up to 75% annually. This brochure was created to present standard types of investments in the bakery and confectionery sector regarding modernization of technologies and machines as well as benefits of investing. The examples shown are based on real projects implemented by the PolSEFF programme. What types of machines need to be replaced in order to bring the highest benefits in energy efficiency? The highest energy consumption in bakeries and confectioneries is related to the baking process. Modernization of this procedure can bring highest savings. The information below presents examples of most typical investments projects implemented within the PolSEFF programme in the bakery and confectionery sector. Replacement of an electric oven and a dough growing machine Main activity of a company: Family owned bakery Investment description: The project was based on the replacement of an old baking oven to a new, more energy efficient one. The investment also covered the replacement of an old proving oven. Replacement of a baking oven and a proving oven Savings: 9,200 PLN annually (41%) Upon project completion the annual energy consumption decreased by 41%, the production capacity increased and the quality of the product significantly improved. The payback period of the investment is 2 years. Investment cost (PLN): 231,000 Energy savings: 41% 9,200 PLN

3 Replacement of an oven and installation of a heat recovery system Main activity of a company: A chain of grocery stores with their own baking facilities Investment description: The project was based on the replacement of a 25 year old baking oven to a new, more energy efficient one. Moreover it will cover the installation of a heat recovery system in the chimney. The company was using an old linear one pass stove that was about 12 meters long. The dough was placed on a belt conveyer that was slowly moving through the oven and baking the product. Due to its age and poor heat circulation the machine was generating heat losses. The quality of the bread became worse and the company had to pay more money for electricity and fuel. The new equipment is a shaft type oven with shelves and excellent air circulation. The baked goods do not need to be in constant motion what causes greater energy savings due to smaller electricity generators. The air circulation system and the steam generator in the oven provide perfect baking conditions. Moreover, the company was using electric boilers in order to heat water for dough production and industrial purposes (e.g. shower for the employees). PolSEFF engineers advised the company to introduce a heat recovery system in the chimney that would replace the boilers. Upon project completion the energy consumption decreased by 74% saving PLN annually. The payback period of the investment is 2 years. Investment cost (PLN): 278,000 Energy savings: 74% 20,200 PLN Replacement of a baking oven with a heat recovery system Savings: 20,200 PLN annually (74%)

4 Modernization of a buns production line Main activity of a company: Production and selling of fresh and frozen bread Investment description: The project was based on replacing a machine for forming and cutting buns and two fermentation tanks: ECO 4000 K5-V0 and NGS N30. The investment reduced the time of the production cycle and significantly increased the quality of the product. Upon project completion the annual energy cost decreased by 9,300 PLN. The payback period of the investment is 5 years. Investment cost (PLN): 695,000 Energy savings: 33% 9,300 PLN Replacement of two fermentation tanks and of a machine for forming and cutting buns Savings: 9,300 PLN annually (33%)

5 Financing modernization investments in the bakery and confectionery sector. Investments in modernization of machines, equipment and production lines implemented by SMEs from the bakery and confectionery sector are financed by the second edition of the PolSEFF programme. The investor can use the standard financing option. The standard procedure is meant for complex projects. The investor is entitled to cost-free technical assistance during the application and evaluation process. More information about the standard procedure can be found on the PolSEFF 2 website: Benefits of using the PolSEFF 2 programme to finance modernisation investments. Being an entrepreneur, you could receive the following benefits by participating in the programme: Annual energy savings of at least 20% A grant of 10% or 15% of the loan amount used to finance the eligible elements of the project. 15% is granted under investments that require full energy audits of buildings. Free support of PolSEFF 2 engineer-experts who assist in completing the required application forms and conduct the required technical and financial evaluation of the project. The experts also provide energy audits and verify that the investments qualify for financing.

6 PolSEFF 2 the programme for financing energy efficiency investments in small and medium enterprises. PolSEFF 2 is the second edition of the successful Polish Sustainable Energy Financing Facility programme developed by the European Bank for Reconstruction and Development. It is implemented as a part of the NF Programme, which is operated by the National Fund for Environmental Protection and Water Management with support of the European Union. PolSEFF 2 is a EUR 200 million credit line made available to participating banks. The banks then offer loans to SMEs for financing energy efficiency investments. More information about the PolSEFF 2 programme is available at Contact: PolSEFF 2 OFFICE ul. Orzycka 27, 3rd Floor Warsaw, Poland Tel Fax helpline@polseff.org WE SUPPORT AND FINANCE THE IMPROVEMENT OF ENERGY EFFICIENCY IN YOUR COMPANY