Sustaining renewable energy sources in Kazakhstan’s industries

An agro-industrial company in northern Kazakhstan is being assisted to save energy and costs by using biogas produced from its own organic waste.

The company is located in the Kostanay region and its business encompasses livestock breeding, meat processing, grain cultivation, flourmills operation and trading with agricultural products, all activities that produce a great deal of organic waste. For this reason the company had the idea to invest in three small biogas plants to utilise this waste for energy generation.

The Kazakhstan Sustainable Energy Financing Facility (KAZSEFF)

In order to finance these energy efficiency improvements, the company turned to one of the local banks participating in the Kazakhstan Sustainable Energy Financing Facility (KAZSEFF), an EBRD initiative financing Kazakhstan’s partner banks for on-lending to private industries across all sectors for energy efficiency and renewable energy investments. The US$ 75 million financing facility, implemented thanks to TC funded with grants provided by the Japan-Europe Cooperation Fund together with the EBRD-DFID Energy Efficiency Fund, Germany and Norway, offers a holistic approach to Kazakhstani enterprises. A free technical assistance service from a multinational team of technical experts helps companies identify energy loss areas, propose technical solutions for lowering energy consumption and prepare suitable investment projects.

Using waste to produce energy

The biogas plants will feed combined heat and power plants (CHP) which produces electricity and usable surplus heat to cover the farm demand. As a result energy consumption will be reduced by 6,470 MWh per year. In addition the fermentation residues will be used on the company’s own fields, sparing the cost of previously employed large volumes of mineral fertiliser. Besides the cost reduction for heat, power and fertilisers, which save the company US$ 614,000 annually, the energy improvements, resulting in 3,000 tonnes of CO2 reduction per year, are also contributing to environmental protection.

The Bank, recognising the enormous potential for sustainable energy investments to date successfully supports similar Sustainable Energy Financing Facilities through 48 local banks in 15 of its countries of operations.