Industries in São Paolo become more productive and spend less energy

An energy auditor at work.

The energy efficiency programme already reached more than 280 companies throughout the state of São Paulo

The NAMA Support Project “PotencializEE” in Brazil financed with funds of the International Climate Initiative (IKI) through the NAMA Facility already received applications from more than 280 Small and Medium-Sized Industries (SMEs) in the state of São Paulo to produce more while wasting less energy in their manufacturing processes.

PotencializEE provides technical assistance and financial mechanisms to enable energy efficiency investments and greenhouse gas (GHG) emission reductions in Brazil’s industrial sector, which is the country’s largest energy consumer. Most of the industrial companies are located in the state of São Paulo, where the programme is concentrating its activities. Of the 10 regions attended by the programme in São Paulo in partnership with SENAI, the National Service for Industrial Training (SENAI), the cities of Campinas, Ribeirão Preto and Presidente Prudente stood out with regards to industrial company’s interest. In the automotive and metallurgy sectors more than 85 industrial SMEs are enrolled in the programme.

“The current economic situation in Brazil and the world has significantly increased the cost of electricity and fuels, thereby raising expenditures in the entire value chain of industries and compromising their business model, especially of SMEs. Energy efficiency allows drastically cutting energy bills, which is why a lot of companies are seeking support from the programme”, explains Rodolfo Pinheiro, Supervisor of Projects and Technologies at SENAI-SP.

Around 50 specialists trained and certified by SENAI-SP as part of the programme are currently visiting industrial facilities in the manufacturing hubs of Sorocaba, Jacareí, Araraquara, Sertãozinho, São José do Rio Preto, Marília e Presidente Prudente conducting energy audits and preparing the implementation of energy efficiency projects.

For now, the industrial sectors with the highest participation are metallurgy and metallic products, automotive and auto-parts, machines and equipment, rubber and plastics followed by food, beverage, textiles and clothing.

“We observe a strong uptake of industrial sectors with high levels of fossil fuel consumption and efficiency potentials in heating and cooling processes. The program focuses on thermal energy efficiency interventions (furnaces, boilers, cogeneration, etc.), in addition to modernizing and replacing motors, compressed air systems and lighting,” commented the director of the PotencializEE Program at GIZ, the German Agency for International Cooperation. 

The PotencializEE Programme's website is still open for applications.

Industrial SMEs from any manufacturing segment in the state of São Paulo with up to 499 employees can request support. After the application, a specialist from SENAI-SP will schedule a visit to carry out a first pre-diagnosis (free of charge). This includes an analysis of the structural situation of the production facility with basic recommendations for improvement. If there is significant potential for energy efficiency, the recommendation is to implement an energy audit and prepare an investment project. PotencializEE also supports SMEs’ access to finance through public and private financial institutions. A Guarantee Found is being structured with 8 million euros to reduce collateral requirements for industrial SMEs, which has the potential to mobilize 80 million euros in low-carbon investments.

About the PotencializEE Programme

PotencializEE is a NAMA Support Project led by the Brazilian Ministry of Mines and Energy (MME) and coordinated through GIZ. 

The programme expects to support 425 energy efficiency projects until 2024, carrying out more than thousand energy audits and raising awareness around energy efficient technologies in 5260 industries. With the support of PotencializEE, it will be possible to mitigate approximately 1.1 tons of CO2 equivalent, stimulating the achievement of Brazil’s Nationally Determined Contribution (NDC) established under the Paris Agreement on climate change, which aims to keep the global average temperature increase well below 2°C and pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels.

This article was originally published in Portuguese.

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