European bank funds energy-efficiency improvements at Turkey’s largest industrial firm

ISTANBUL

The European Bank for Reconstruction and Development (EBRD) has said it was supporting the largest resource-efficiency program in the Turkish industrial sector to date with a $150 million loan to oil refiner Türkiye Petrol Rafinerileri A.Ş. (Tüpraş), in a written statement late Aug. 1.

Majority-owned by Koç Holding, Tüpraş is Turkey’s largest industrial company. It operates refineries in İzmit, İzmir, Kırıkkale and Batman.

The EBRD’s eight-year unsecured loan, with a three-year grace period, will finance a comprehensive $232 million modernization program at the company’s refineries in İzmir and Kırıkkale in 2016-2018.

The upgrades include a new on-site thermal power plant, a waste heat recovery system, stack gas treatment, a fluid catalytic cracking unit and hydrocracker unit refurbishments, according to the statement.

These improvements will lower the energy intensity of the two refineries, as well as reduce CO2 emissions by 270,000 tons per year (625,000 barrels of oil equivalent per year) and water consumption by 120 million cubic meters, it added.

“We applaud Tüpraş for its commitment to adopting high environmental standards and we are pleased to finance this ambitious modernization program. We believe that the competitive advantage Tüpraş will gain with lower energy costs will encourage other large industrial players in Turkey to follow suit towards more sustainable practices,” said Riccardo Puliti, managing director for energy and natural resources at the EBRD.

As energy demand in Turkey is expected to nearly double by 2023, the country’s Energy Efficiency Strategy Paper has set a 20 percent target for reducing energy intensity by 2023. It is encouraging private actors such as Tüpraş to take bold measures to increase energy efficiency.

“The EBRD loan is specifically tailored to assist Tüpraş in reducing the energy and water intensities at the İzmir and Kırıkkale refineries. The value of these efficiency gains will further improve Tüpraş’ sustainable competitiveness. The EBRD’s decision to grant this loan to our company once again proves the trust in the financial credibility and strength of Tüpraş,” said Tüpraş General Manager İbrahim Yelmenoğlu.