Auto Azerbaijan to open new high-spec, energy efficient facility
A leading car distributor is set to save energy, water and CO2, with help from the EBRD.
Established in 1994, Auto Azerbaijan is an official car distributor for Hyundai, Chrysler, Peugeot and Geely.
The company is a market leader, selling in excess of USD 200 million worth of vehicles per year, through own car dealerships as well as distributing to other car dealers.
In addition to the distribution business Auto Azerbaijan sells spare car parts and provides auto repair services. This latter line of business has operated since 1997 and is expected to generate USD 56 million in revenues during FY 2013, making up 22 per cent of the company’s total revenues.
Auto Azerbaijan’s shareholders plan to build ‘Auto City’, a green-field 3S facility for sales, servicing and spare parts. The facility will comprise modern, high-specification car showrooms, a service centre and associated facilities.
To help fund this project, the company approached the EBRD for financial support. The Bank provided Auto Azerbaijan with a loan of USD 13 million.
Technical support
The EBRD’s FINTECC programme has been established specifically to help companies implement innovative climate technologies. Auto Azerbaijan’s project includes several energy efficiency initiatives, some of which are eligible for support through the programme.
As part of the project’s wider technical support, EBRD-approved consultants have completed a review of the energy and water efficiency measures within the project design. The consultants were also able to recommend the best available climate technologies and equipment, for Auto Azerbaijan.
Following these discussions, the company has decided to include the following measures in the investment plan:
Building Envelope (low emissive windows and thermal insulation) with energy performance beyond the current standard in Azerbaijan
Installation of Variable Refrigerant Flow systems
Condensing Natural Gas Boiler and Air-Handling Units
Installation of High Efficacy Lamps (LED, TFL, CFL)
Car washing recovery system (recovering 90 per cent of the water used)
Building Management System
Installation of Tri-generation System
Installation of Clean Burn System
Most of these technologies have very low market penetration in Azerbaijan and have been assessed as eligible for FINTECC incentive grants. Furthermore, the FINTECC incentives have enabled the integration of technologies that are currently unique in the Azeri market.
Increased efficiency
The energy and water efficiency investments supported by the EBRD have a value of EUR 6.32. These will lead to an energy saving of 75 per cent and water savings of 2,475 m3 per year, when compared with the project’s original design. The new facility will also enable a CO2 saving of 3,196 tonnes per year.
