Summary sheet
The project concerns the modernisation of productive and storage capacities of a German family-owned dairy company, over the period 2023-2026.
The aim is to improve the promoter's logistic facilities by replacing obsolete equipment and implement technologies to replace the use of natural gas, in line with the promoter's decarbonisation plan for its two manufacturing sites in Germany. Hence, the project supports its "science-based targets initiative" commitment.
The Project is expected to increase the energy efficiency of the promoter's dairy production and increase the storage capacity, by financing the modernisation of an existing dairy factory and the construction of a highly energy efficient new warehouse.
The financing of this project is aligned with the article 309, paragraph c), of the Treaty of the Functioning of the European Union, and participates to the Bank's public policies on Research, innovation and digital (72%) and energy (28%).
The implementation of this operation, thanks to the reduction of the Promoter's carbon footprint and dependency to natural gas, will contribute to the national climate protection act and its objectives of carbon footprint reduction. The operation is fully aligned with the EU Energy Efficiency Directive (EED).
The fully automated high bay warehouse powered by self-produced energy and integrating energy savings components and the replacement of the natural gas in production will improve the air quality, secure jobs in rural areas, and support the country's GHG reduction objectives.
The Project addresses sub-optimal investment flows because of non-internalised positive externalities/market failures such as GHG emission reductions, the split incentives between consumers and producers of food products (information asymmetry) and imperfect competition on the offtake side as well as the asymmetric power of large competitors.
The Bank's contribution to the project is also supported by a combination of its advantageous terms, flexible availability and utilisation of the loan, as well as helping crowd-in other financiers, thereby facilitating the project's financing and full implementation.
The project, which will diminish the road traffic linked with distant storage, complies with all applicable national and EU environmental legislation, as verified during the appraisal. All project components have been screened out or are not in the scope of the Environmental Impact Assessment (EIA) Directive 2011/92/EU amended by the Directive 2014/52/EU.
The promoter has been assessed by the EIB as being a private company not subject to EU rules on public procurement or concessions.
The project concerns the manufacturing of dairy products.