Within the framework of Sunref, AFD’s green finance label, LVG Plants received a loan for the construction of a solar water heating system for its largest South African horticultural plant.
Context
With an 80,000 m2 operation in Krugersdorp, LVG Plants is the largest producer of greenhouse plants in South Africa and holds a significant share in the pot plant market. The horticultural sector requires the greenhouses' temperature and humidity to be maintained at a constant level in order for plants to grow.
LVG has depended entirely on coal to heat up the water system that is used to maintain temperature levels. However, the company was eager to improve its energy efficiency and reduce its environmental footprint by adopting alternative energy solutions.
Description
Through the Sunref programme, a total amount of EUR 120 million was granted to local South Africa banks to identify and fund renewable energy and energy efficiency projects. These credit lines allowed small and medium sized companies to acquire higher quality equipment, achieve cost savings and become more competitive through better energy management.
Via Sunref, Nedbank granted LVG a loan for the installation of thermal solar panels for hot water generation. This allowed the company to reduce its yearly carbon consumption by over 75% (from 4,000 tons/year to less than 1,000 tons/year), and consequently reduce CO2 emissions. In addition, an investment subsidy is funding a study on the feasibility of photovoltaic panels to supply the plant with electricity.
Impacts
- 75% reduction in carbon emissions;
- Development of renewable energies;
- Reductions in operating costs;
- Improvement of energy efficiency;
- Job creation.
01/01/2009
Project start date
31/01/2014
Project end date
5 years
Financing tool
1 400 000
EUR
Achevé
Nedbank
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on the same region
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on the same topic
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on the same financial tool
