10 solid biofuel producers make their businesses energy efficient with support from UNDP and the Government of Japan | United Nations Development Programme

Oct 14, 2024

10 businesses producing solid biofuels will make their businesses more energy efficient and modernize their pellet and briquette production lines under the UNDP project "Multidimensional response to emerging human security challenges", funded by the Government of Japan.

Existing producers of solid biofuels are supported to promote resource-efficient production, including the use of energy-efficient technologies. The 10 selected companies will receive non-monetary support in the form of equipment and services to mitigate the increase in production costs caused by high energy prices, high equipment maintenance and logistics costs, and limited competitiveness on the local market.

The support programme will help to reduce production costs, allowing the selected companies to invest the savings in business expansion and will also increase energy security for the population by facilitating access to affordable energy.

The company Lanacomlux from the village of Grigorievca, Căușeni district, will modernize its briquette production line. The company produces an average of a thousand tons of solid biofuels annually from sunflower husks sourced from producers in the region. It is a small, family-run business and replacing the worn-out equipment, which has been in use for 13 years, was a virtually impossible task to achieve on its own.

"With this briquetting machine, which is much more efficient, we are practically doubling our production capacity per hour, i.e. we will do in three hours what now takes us 6-7 hours. This also means more efficient electricity consumption, which will also be reflected in a better and more affordable price for the final material. We are very grateful for this support, which is being provided at the right time. The impact of this investment will be positive for the maintenance on the market and the development of our business, but we are indirect beneficiaries, because not only the company, but also the domestic consumers in the districts of Căușeni, Ștefan Vodă and Anenii Noi, who buy biomass from us, will benefit. In fact, by supporting our company, the project makes heating more affordable for the residents of these districts, because we will be able to offer the briquettes at a lower price," says Svetlana Nitoreanu, the manager of Lanacomlux.

Nine out of the ten supported businesses will benefit from equipment worth up to US$42,000, namely mobile shredders (with or without motor), photovoltaic systems, upgrading/repair of pellet and/or briquette production lines. A company is to purchase and install a solid biomass heating plant worth up to $75,000, provided that the heat is subsequently sold to a public institution. Each beneficiary contributes financially a minimum of 10% of the total cost of their project. All 10 will receive the necessary training and guidance to turn these projects into models of success and sustainability.

The company Ecobioenergy Grup from the village of Ișnovăț, Criuleni district, operates nationwide - both the purchase of raw materials and their customers are from all regions of the country. It is one of the few businesses in this sector that is facing a glut of raw materials and is unable to cope with growing demand. Ecobioenergy Grup produces and sells around 4-5 thousand tons of biomass annually, both briquettes purchased by households and pellets used by public institutions and economic agents that have special automated power plants. The company from Ișnovăț, unlike others of its kind, produces pellets not only from sunflower husks, but also from all wood - waste from workshops, vegetable waste.

"Thanks to this aid we are supplementing our production line with two granulators and thus increasing our production capacity. Since we have been in business since 2012, we have tried to be inventive to overcome crises and cope with demand, and we emphasize the source of raw material. We are collecting wood waste from small workshops. In parallel, we have noticed that there is potential in processing plant debris, such as branches left over from clearing and sanitizing trees and orchards. We have excess raw material unlike the others. We have always invested in technology, equipment, which costs quite a lot. Not everyone has had the courage to make such investments, but they are necessary and worth it. We usually manage on our own, we take bank loans, but we are glad that we can also benefit from such non-reimbursable projects," says Rodion Cimbriciuc, the manager of Ecobioenergy Grup.

The "Multidimensional response to emerging human security challenges" project has the overall objective to safeguard human security and enhance the Republic of Moldova's capacity to manage the complex and interconnected development challenges amplified by the multidimensional crisis.

Ensuring a secure and affordable energy supply improves livelihoods and production processes, both of which are vital for sustainable development, poverty reduction and adaptation to climate change. In order to facilitate access to uninterrupted and affordable energy, it is essential that the Republic of Moldova encourages people and businesses to use energy efficiency and renewable energy technologies.

The UNDP, with the financial assistance of its partners, has been promoting the use of solid fuels for many years. Thus, biomass power plants have been installed in public institutions such as educational or medical institutions, operators of these plants are regularly trained, energy vulnerable households are helped to purchase biomass boilers, and biomass producers are helped to develop and make their businesses more efficient.

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