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The main business of the
Haly­
chyna Milk Company, Ltd.
is milk processing and dairy
product manufacturing. The
annual output (2019-2020  da-
ta) is at 80 thousand ton, of
them 40% milk, 55% fermented
milk products and the rest is
butter and powdered skimmed
milk. The enterprise intends to
double its output in 2021.
The enterprise uses electric-
ity, natural gas and solid fu-
el (wood chips) to power up
its manufacturing processes
like cold, compressed air and
steam generation. Produc-
tion output increase in the
past years has also let to the
growth in energy resource
consumption and volume of
related GHG emissions.
About the Company
production costs.
While looking for efficient
solutions, the company received
assistance in the increasing ener-
gy efficiency of its production by
partici-pating into the Advisory
Services for Energy Efficiency
in Companies Project imple-
mented in Ukraine by Deutsche
Gesellschaft für Internationale
Zusammenarbeit (GIZ) GmbH
commissioned by the German
Government in political partner-
ship with the Ministry of Econo-
my of Ukraine.
Starting in October 2018,
the team of national and inter-
national certified energy au-
ditors held energy efficiency
and investment grade audits
of the enterprise according to
the standard ISO 50002, types
2 and 3. Based on energy au-
dit results recommendations
In conditions of considerable en-
ergy consumption energy man-
agement and energy efficiency
become increasingly relevant;
hence, environmental policy has
become one of the priorities of
company operation. The range
of most topical matters in the
agenda of the enterprise includes
reduction of energy carrier con-
sumption to reduce adverse en-
vironment effects and reduce
Path to Success
Establishment date
Location
Industry
No. shops
No. working shifts
Working shift duration
Staff
Output
1998
Radekhiv,
L’viv Oblast
Dairy
13
2/3
12/8
500
80 000
hours
tons/year
Electricity
Natural gas
Solid fuel (wood chips)
Total emissions
8 628,31
659 377
9 122
9 106
9 644,00
653 000
10 100
10 022
MWh
m3
m3
tCO2eq
/year
2018 2019
Indicators
Review
Pilot Projects
on Energy Modernisation
in Industry
Halychyna Milk
Company, Ltd.
МІНІСТЕРСТВО ЕКОНОМІКИ УКРАЇНИ
CO
M
PA
N
Y
The energy audit results allowed the
company identify spots of inefficient
use of energy resources within its
production processes and reasons for
that. On their basis, a range of energy
efficiency measures aimed at increas-
ing energy efficiency were designed.
Energy Efficiency
Measures
on energy efficiency measures
were developed. The company
implemented some of these thus
reducing the share of energy in
unit production costs. Specifical-
ly, thermal insulation of steam
and ice-water pipes was carried
out and boiler economisers were
replaced. Moreover, a range of
measures was implemented to
set up an enterprise-wide system
Network (LEEN Lviv) that also
had been established with sup-
port from the Advisory Services
for Energy Efficiency in Compa-
nies Project. LEEN Lviv joined
11 enterprises of the region that
have committed for reducing
energy consumption by 6.33 GW
in two years and cutting on
GHG emissions accordingly.
The enterprises in the Network
of energy carrier consumption
monitoring.
Parallel to that, a person-
nel training was carried out with
support from the GIZ during
which company professionals re-
ceived new knowledge on energy
efficiency specific for enterprise’s
manufacturing processes.
In late 2018, Halychyna
joined Lviv Energy Efficiency
regularly meet to exchange in-
novative practices and acquired
experience of energy efficiency
measures implementation. Hal-
ychyna made a substantial con-
tribution into assisting the LEEN
Lviv beat the taken commitment
by more than 50% and jointly
save 10.55 GWh energy.
Thermal Insulation of Ice-
Water Pipes
Photo:
The absence of insulation on
certain steam pipe sections and
rotating valves led to substantial
losses at heat carrier transfer.
That was confirmed during the
thermal imaging survey within
the scope of the energy audit.
Respectively, the company in-
sulated the steam pipes and the
rotating valves. With a view of a
rather high (120°С+) temperature
of the heat carrier, it was decided
to use insulation material with
adequate specifications: mineral
wool cylinders with aluminium
liners and thermal conductivity
of 0.04 W/(m·К) (at 25°С), densi-
ty of 80-100 kg/m3
and working
temperature of up to 250°С.
In the second quarter of 2019
more than 300 m of pipes and all
rotating valves were insulated.
As the company had no required
technical resources to implement
the measure, it was decided to in-
volved a third-party provider.
That allowed the compa-
ny to reduce heat losses in the
steam pipes by 40.7% and save
UAH 293 thousand/year. Besides,
the measure allowed enhancing
labour safety for enterprise em-
ployees as thermal insulation of
high-temp sections reduced the
probability of labour accidents.
Duration of procurement procedure
Duration of implementation
Implementation period
Implementation costs
Energy losses
before implementation
after implementation
Energy loss reduction
Savings from implementation
Simple payback period
Emission reduction
1 month
3 months
06.-08.2019
191 000
1 059,20
628 10
431,10
40,7
293 000
8 months
87
UAH
MWh/year
MWh/year
MWh/year
%
UAH/year
tCO2eq
/year
Indicators
Thermal Insulation of Steam Pipes
Thermal Insulation of Steam
Pipes
Photo:
Thermal Insulation of Ice-Water Pipes
Following energy audit recom-
mendations, the company also
implemented a range of meas-
ures on thermal insulation of
ice-water pipes. Pipe insulation
provides for better maintenance
of the water temperature with-
out additional load of respective
equipment. It should be noted
that cooling installations for
ice-water production consume
a lot of electricity, more than
2.5 GW/year. The lack of insula-
tion led to increased electricity
consumption and consequently,
higher costs.
For thermal insulation min-
eral wool covered with foam rub-
ber and protected with aluminium
liner was used. The key specifica-
tions of the foam rubber are: ther-
mal conductivity: 0.035 W/(m·К);
density: 50-65 kg/m3
; working
temperature range from -60°С
to + 130°С; water-absorbing ca-
pacity: 10% max. The selection of
this insulation material was also
related to its relatively low cost,
non-flammability and durability.
An external contractor was
also involved in the implementa-
tion of this measure. During 2019,
about 70% of pipelines were in-
sulated.
Thermal insulation works
for the remaining pipelines
are scheduled for completion
in 2021.
The monitoring of electric-
ity consumption by the refriger-
ation equipment has shown the
electricity consumption after the
insulation of ice-water pipelines
is almost 80 MWh/year, or 3%
less. At the same time, the annu-
al savings due to the implemen-
tation of the measure stand at
UAH 223,156.
Duration of procurement procedure
Duration of implementation
Implementation costs
Energy losses
before implementation
after implementation
Скорочення втрат енергії
Savings from implementation
Simple payback period
Emission reduction
1 year 1 month
01.2019 – 02.2020
461 000
2 656,62
2 576,95
79,70
30
223 156
2 years 1 month
73
UAH
MWh/year
MWh/year
MWh/year
%
UAH/year
tCO2eq
/year
Indicators
Replacement of Boiler Economisers
Optimising the heat generating
system be-came the next meas-
ure. The heat generated at the
enterprise is partly from two
DKVR 4/13 solid fuel-fired boil-
er plants that use wood chips as
the main fuel. The economisers
installed in the boilers have the
efficiency of only 20% and 40%
respectively. Therefore, a deci-
sion to replace them was made.
It resulted in two economisers,
one of roll type, another of tubu-
lar type. The measure was imple-
mented by a specialist contractor.
Replacing the old econo-
misers with new ones increased
the heating system efficiency
by 1.9%. The implementation
of the measure has been sav-
ing the company more than
UAH 130 thousand/year.
Duration of implementation
for Boiler 1
for Boiler 2
Implementation period
for Boiler 1
for Boiler 2
Implementation costs
Energy utilisation
before implementation
after implementation
Energy savings
Savings from implementation
Simple payback period
Emission reduction
1 month
1 month
09.2019
10.2020
362 000
87,61
250,30
162,69
286
130 157
2 years 9 months
66
UAH
MWh/year
MWh/year
MWh/year
%
UAH/year
tCO2eq
/year
Indicators
The first step towards energy
efficiency is about setting up an
energy consumption monitoring
system. The commercial elec-
tricity and natural gas metering
equipment available at the en-
terprise does not allow tracking
of consumption per each pro-
duction site separately. On top
of that, this metering equipment
is owned by distribution system
operators and sealed by them
limiting access for the consumer.
The technical metering of
electricity was limited to a group
of meters recording power con-
sumption of refrigerator com-
pressors. The technical metering
of gas only covered consumption
for heating purposes.
In order to be able to more
accurately measure the energy
efficiency indicators of all pro-
duction processes, as well as to
evaluate the results of the imple-
mented measures, the company
decided to build an energy con-
sumption monitoring system.
Halychyna started imple-
menting this idea with its own
Implementation of Energy Monitoring System
resources: it purchased 6  elec-
tricity meters for a total of
UAH 
54,000 and linked them
into a technical metering system.
Thanks to participation in the
Project on Advisory Services for
Energy Efficiency in Companies,
the company was able to bring
the work to a new level. The com-
pany had an energy monitoring
concept developed for it, and the
project procured the necessary
equipment: 2 loggers, 2 GPRS
routers, also 11 electricity me-
ters, 27 current transformers and
2 gas meters. A relevant training
was held for company's special-
ists as users of the monitoring
system.
Thanks to the implemen-
tation of the energy monitoring
system the company will be able
to establish a continuous control
of energy consumption and re-
spond to deviations in a timely
manner, as well as determine
energy efficiency indicators for
the production cycle and assess
the performance of implemented
measures.
Technological Cooling Systems.
Additionally, in the framework of
development of the energy con-
sumption monitoring system and
for the sake of optimal use of all
its benefits, a specialized train-
ing on the setting-up of energy
monitoring system and obtaining
data from it, as well as on using
JEVis software package for gen-
eralisation and visualisation of
energy consumption data was
carried out.
Staff Training
With positive results from the im-
plementation of measures already
obtained, Halychyna intends to
complete the works and develops
new plans.
It has been planned to com-
plete thermal insulation of steam
and ice-water pipes.
Gradually, a modern system
of monitoring energy consump-
tion is being gradually set up
within which a single gas and
electricity metering unit will be
established at the enterprise.
The company's immediate
plans are to install a variable
speed drive on a 200 kW compres-
sor motor to optimise equipment
operation and reduce power con-
sumption.
Halychyna is an excellent
example of improving production
processes and implementing suc-
cessful energy efficient solutions.
Company’s Plans for the Future
© GIZ 2021
Pilot Projects on Energy Modernisation
in Industry
01004, Кyiv
16b Antonovycha St.
T:   +38 044 594 07 60
F: +38 044 594 07 61
I: www.giz.de/ukraine-ua
www.eeplatform.org.ua
Fb: www.facebook.com/energyefficiency.ua
Total energy savings
Total reduction of emissions
Total cost savings
Investments
673,49
226
646 313
1 014 000
MWh/year
tCO2eq
/year
UAH/year
UAH
Indicators
Total energy savings
2,8%
Given a considerable time of use of equipment and materials, the
companywillsaveUAH 646.3 thousandannuallyforatleast10 years.
A system for energy resource consumption monitoring is being
gradually set up thus allowing company’s free access to necessary
dataandenablingthedataanalysisformoreefficientuseofresources.
Thetrainingofin-houseexpertsandtheexchangeofexperiencewith
other enterprises members of the LEEN Lviv allows the compa-ny
finding new ideas and optimal solutions for energy modernisation of
its own production facilities.
Thanks to such a comprehensive approach, the company successfully
implements its plans.
Thankstotheimplementationofenergyefficiencymeasures,thecompanywas
able to reduce the share of energy consumption in the unit cost of production
by 2.8%. The total investment in the implementation of the measures was in
excess of UAH 1 million but paid off within a year and a half.
Cumulative Results
•
•
•
•
«Thanks to the implementation of the energy mon-
itoring system, we will be able to monitor energy
consumption and promptly respond to deviations. In
addition, it also helps us determine energy efficiency
indicators in production and evaluate the effect of the
implemented measures»
Svitlana Mishchenko
Deputy Director for Production
The company recognises that
in order to achieve successes in
energy efficiency, upgrading the
knowledge of enterprise profes-
sionals is no less important as
technical measures and the im-
plementation of a modern moni-
toring system.
With the support from the
GIZ Halychyna employees re-
ceived training on topics rel-
evant to the company: Energy
Management, Steam Boilers,

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Halychyna Milk Company

  • 1. The main business of the Haly­ chyna Milk Company, Ltd. is milk processing and dairy product manufacturing. The annual output (2019-2020  da- ta) is at 80 thousand ton, of them 40% milk, 55% fermented milk products and the rest is butter and powdered skimmed milk. The enterprise intends to double its output in 2021. The enterprise uses electric- ity, natural gas and solid fu- el (wood chips) to power up its manufacturing processes like cold, compressed air and steam generation. Produc- tion output increase in the past years has also let to the growth in energy resource consumption and volume of related GHG emissions. About the Company production costs. While looking for efficient solutions, the company received assistance in the increasing ener- gy efficiency of its production by partici-pating into the Advisory Services for Energy Efficiency in Companies Project imple- mented in Ukraine by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH commissioned by the German Government in political partner- ship with the Ministry of Econo- my of Ukraine. Starting in October 2018, the team of national and inter- national certified energy au- ditors held energy efficiency and investment grade audits of the enterprise according to the standard ISO 50002, types 2 and 3. Based on energy au- dit results recommendations In conditions of considerable en- ergy consumption energy man- agement and energy efficiency become increasingly relevant; hence, environmental policy has become one of the priorities of company operation. The range of most topical matters in the agenda of the enterprise includes reduction of energy carrier con- sumption to reduce adverse en- vironment effects and reduce Path to Success Establishment date Location Industry No. shops No. working shifts Working shift duration Staff Output 1998 Radekhiv, L’viv Oblast Dairy 13 2/3 12/8 500 80 000 hours tons/year Electricity Natural gas Solid fuel (wood chips) Total emissions 8 628,31 659 377 9 122 9 106 9 644,00 653 000 10 100 10 022 MWh m3 m3 tCO2eq /year 2018 2019 Indicators Review Pilot Projects on Energy Modernisation in Industry Halychyna Milk Company, Ltd. МІНІСТЕРСТВО ЕКОНОМІКИ УКРАЇНИ CO M PA N Y
  • 2. The energy audit results allowed the company identify spots of inefficient use of energy resources within its production processes and reasons for that. On their basis, a range of energy efficiency measures aimed at increas- ing energy efficiency were designed. Energy Efficiency Measures on energy efficiency measures were developed. The company implemented some of these thus reducing the share of energy in unit production costs. Specifical- ly, thermal insulation of steam and ice-water pipes was carried out and boiler economisers were replaced. Moreover, a range of measures was implemented to set up an enterprise-wide system Network (LEEN Lviv) that also had been established with sup- port from the Advisory Services for Energy Efficiency in Compa- nies Project. LEEN Lviv joined 11 enterprises of the region that have committed for reducing energy consumption by 6.33 GW in two years and cutting on GHG emissions accordingly. The enterprises in the Network of energy carrier consumption monitoring. Parallel to that, a person- nel training was carried out with support from the GIZ during which company professionals re- ceived new knowledge on energy efficiency specific for enterprise’s manufacturing processes. In late 2018, Halychyna joined Lviv Energy Efficiency regularly meet to exchange in- novative practices and acquired experience of energy efficiency measures implementation. Hal- ychyna made a substantial con- tribution into assisting the LEEN Lviv beat the taken commitment by more than 50% and jointly save 10.55 GWh energy. Thermal Insulation of Ice- Water Pipes Photo: The absence of insulation on certain steam pipe sections and rotating valves led to substantial losses at heat carrier transfer. That was confirmed during the thermal imaging survey within the scope of the energy audit. Respectively, the company in- sulated the steam pipes and the rotating valves. With a view of a rather high (120°С+) temperature of the heat carrier, it was decided to use insulation material with adequate specifications: mineral wool cylinders with aluminium liners and thermal conductivity of 0.04 W/(m·К) (at 25°С), densi- ty of 80-100 kg/m3 and working temperature of up to 250°С. In the second quarter of 2019 more than 300 m of pipes and all rotating valves were insulated. As the company had no required technical resources to implement the measure, it was decided to in- volved a third-party provider. That allowed the compa- ny to reduce heat losses in the steam pipes by 40.7% and save UAH 293 thousand/year. Besides, the measure allowed enhancing labour safety for enterprise em- ployees as thermal insulation of high-temp sections reduced the probability of labour accidents. Duration of procurement procedure Duration of implementation Implementation period Implementation costs Energy losses before implementation after implementation Energy loss reduction Savings from implementation Simple payback period Emission reduction 1 month 3 months 06.-08.2019 191 000 1 059,20 628 10 431,10 40,7 293 000 8 months 87 UAH MWh/year MWh/year MWh/year % UAH/year tCO2eq /year Indicators Thermal Insulation of Steam Pipes Thermal Insulation of Steam Pipes Photo:
  • 3. Thermal Insulation of Ice-Water Pipes Following energy audit recom- mendations, the company also implemented a range of meas- ures on thermal insulation of ice-water pipes. Pipe insulation provides for better maintenance of the water temperature with- out additional load of respective equipment. It should be noted that cooling installations for ice-water production consume a lot of electricity, more than 2.5 GW/year. The lack of insula- tion led to increased electricity consumption and consequently, higher costs. For thermal insulation min- eral wool covered with foam rub- ber and protected with aluminium liner was used. The key specifica- tions of the foam rubber are: ther- mal conductivity: 0.035 W/(m·К); density: 50-65 kg/m3 ; working temperature range from -60°С to + 130°С; water-absorbing ca- pacity: 10% max. The selection of this insulation material was also related to its relatively low cost, non-flammability and durability. An external contractor was also involved in the implementa- tion of this measure. During 2019, about 70% of pipelines were in- sulated. Thermal insulation works for the remaining pipelines are scheduled for completion in 2021. The monitoring of electric- ity consumption by the refriger- ation equipment has shown the electricity consumption after the insulation of ice-water pipelines is almost 80 MWh/year, or 3% less. At the same time, the annu- al savings due to the implemen- tation of the measure stand at UAH 223,156. Duration of procurement procedure Duration of implementation Implementation costs Energy losses before implementation after implementation Скорочення втрат енергії Savings from implementation Simple payback period Emission reduction 1 year 1 month 01.2019 – 02.2020 461 000 2 656,62 2 576,95 79,70 30 223 156 2 years 1 month 73 UAH MWh/year MWh/year MWh/year % UAH/year tCO2eq /year Indicators Replacement of Boiler Economisers Optimising the heat generating system be-came the next meas- ure. The heat generated at the enterprise is partly from two DKVR 4/13 solid fuel-fired boil- er plants that use wood chips as the main fuel. The economisers installed in the boilers have the efficiency of only 20% and 40% respectively. Therefore, a deci- sion to replace them was made. It resulted in two economisers, one of roll type, another of tubu- lar type. The measure was imple- mented by a specialist contractor. Replacing the old econo- misers with new ones increased the heating system efficiency by 1.9%. The implementation of the measure has been sav- ing the company more than UAH 130 thousand/year. Duration of implementation for Boiler 1 for Boiler 2 Implementation period for Boiler 1 for Boiler 2 Implementation costs Energy utilisation before implementation after implementation Energy savings Savings from implementation Simple payback period Emission reduction 1 month 1 month 09.2019 10.2020 362 000 87,61 250,30 162,69 286 130 157 2 years 9 months 66 UAH MWh/year MWh/year MWh/year % UAH/year tCO2eq /year Indicators The first step towards energy efficiency is about setting up an energy consumption monitoring system. The commercial elec- tricity and natural gas metering equipment available at the en- terprise does not allow tracking of consumption per each pro- duction site separately. On top of that, this metering equipment is owned by distribution system operators and sealed by them limiting access for the consumer. The technical metering of electricity was limited to a group of meters recording power con- sumption of refrigerator com- pressors. The technical metering of gas only covered consumption for heating purposes. In order to be able to more accurately measure the energy efficiency indicators of all pro- duction processes, as well as to evaluate the results of the imple- mented measures, the company decided to build an energy con- sumption monitoring system. Halychyna started imple- menting this idea with its own Implementation of Energy Monitoring System resources: it purchased 6  elec- tricity meters for a total of UAH  54,000 and linked them into a technical metering system. Thanks to participation in the Project on Advisory Services for Energy Efficiency in Companies, the company was able to bring the work to a new level. The com- pany had an energy monitoring concept developed for it, and the project procured the necessary equipment: 2 loggers, 2 GPRS routers, also 11 electricity me- ters, 27 current transformers and 2 gas meters. A relevant training was held for company's special- ists as users of the monitoring system. Thanks to the implemen- tation of the energy monitoring system the company will be able to establish a continuous control of energy consumption and re- spond to deviations in a timely manner, as well as determine energy efficiency indicators for the production cycle and assess the performance of implemented measures.
  • 4. Technological Cooling Systems. Additionally, in the framework of development of the energy con- sumption monitoring system and for the sake of optimal use of all its benefits, a specialized train- ing on the setting-up of energy monitoring system and obtaining data from it, as well as on using JEVis software package for gen- eralisation and visualisation of energy consumption data was carried out. Staff Training With positive results from the im- plementation of measures already obtained, Halychyna intends to complete the works and develops new plans. It has been planned to com- plete thermal insulation of steam and ice-water pipes. Gradually, a modern system of monitoring energy consump- tion is being gradually set up within which a single gas and electricity metering unit will be established at the enterprise. The company's immediate plans are to install a variable speed drive on a 200 kW compres- sor motor to optimise equipment operation and reduce power con- sumption. Halychyna is an excellent example of improving production processes and implementing suc- cessful energy efficient solutions. Company’s Plans for the Future © GIZ 2021 Pilot Projects on Energy Modernisation in Industry 01004, Кyiv 16b Antonovycha St. T:   +38 044 594 07 60 F: +38 044 594 07 61 I: www.giz.de/ukraine-ua www.eeplatform.org.ua Fb: www.facebook.com/energyefficiency.ua Total energy savings Total reduction of emissions Total cost savings Investments 673,49 226 646 313 1 014 000 MWh/year tCO2eq /year UAH/year UAH Indicators Total energy savings 2,8% Given a considerable time of use of equipment and materials, the companywillsaveUAH 646.3 thousandannuallyforatleast10 years. A system for energy resource consumption monitoring is being gradually set up thus allowing company’s free access to necessary dataandenablingthedataanalysisformoreefficientuseofresources. Thetrainingofin-houseexpertsandtheexchangeofexperiencewith other enterprises members of the LEEN Lviv allows the compa-ny finding new ideas and optimal solutions for energy modernisation of its own production facilities. Thanks to such a comprehensive approach, the company successfully implements its plans. Thankstotheimplementationofenergyefficiencymeasures,thecompanywas able to reduce the share of energy consumption in the unit cost of production by 2.8%. The total investment in the implementation of the measures was in excess of UAH 1 million but paid off within a year and a half. Cumulative Results • • • • «Thanks to the implementation of the energy mon- itoring system, we will be able to monitor energy consumption and promptly respond to deviations. In addition, it also helps us determine energy efficiency indicators in production and evaluate the effect of the implemented measures» Svitlana Mishchenko Deputy Director for Production The company recognises that in order to achieve successes in energy efficiency, upgrading the knowledge of enterprise profes- sionals is no less important as technical measures and the im- plementation of a modern moni- toring system. With the support from the GIZ Halychyna employees re- ceived training on topics rel- evant to the company: Energy Management, Steam Boilers,