Storage of diesel fuel and LPG where possible, seeking contracts for the purchase of LNG cargoes to carry out gas exchanges with DEPA, as well as providing the necessary transport and other facilities for the above are some of the plans being implemented by large Greek energy-intensive enterprises using natural gas as fuel.

And this is in order not to be forced to stop production if Russia decides to shut off the gas valve to Europe. While everyone avoids the possibility, it seems that most major players have made significant progress in preparing for the use of alternative fuels where possible.

Many of the large Greek foundries that currently use natural gas can also run on diesel or LPG. So those with storage tanks are filling or have already filled them, and the same is happening with LPG. Cement plants that rely primarily on electricity are in a somewhat better position, but many of these plants can use coke or pellets as fuel and are therefore considering resorting to such solutions if necessary. The situation is more complicated with those industries for which natural gas is the raw material. These are fertilizer plants that use natural gas as feedstock for nitrogen fertilizers and typically account for about 80% of production costs.

In many cases diesel stockpiling has already taken place, but in other cases it is still a working scenario. However, as is the case with natural gas power plants, which can also be powered by diesel fuel, supply logistics cannot be taken for granted in the industry. For example, those who seek to purchase shipments of liquefied natural gas on the international spot market and transport them by sea to Greece in order to make an exchange with DEPA, so that it, in turn, will supply gas to their facilities, must solve the problem. issuance of slots and availability of storage space in the lobby at the DESFA facilities in Revitus.

These alternative plans are absolutely necessary in order not to completely stop industrial production, which would mean losing a few percentage points of GDP. However, they are not a panacea, since a complete replacement of natural gas to meet all the needs of the industry in such a short time is impossible, experts say. As for the cost increases associated with many of these moves, concerns are limited for now, as manufacturers remain able to pass the increase on to their customers. But this cannot continue for long, because eventually at some point the increase in costs will affect the demand itself, the same sources note.

Cement plants that mostly use electricity are considering running on coke or pellets.

“Plan B” is being developed and drafted by the food industry to face what is arguably one of the toughest winters in decades. It is difficult not from the point of view of weather conditions, since they cannot be predicted from mid-August – if you do not believe in the moons – but from the point of view of energy supply.

And if last winter industrial enterprises had to deal with hugely increased costs for natural gas and electricity, this year it is possible that they will face interruptions in natural gas supplies.

While many food industry officials looked optimistic when they spoke Sunday with Catimerini, believing that there would be no problem with natural gas supply after all, they did not hide their concern, unable to rule out this possibility. Interrupting their work, especially for certain industries, such as the production of perishable products or products with a very short shelf life, such as fresh milk, even for 1-2 hours is not even considered as an inevitable scenario, but non-existent, as this would mean destruction of production, as well as the equipment itself. Large companies in the industry, such as DELTA, whose plants run on natural gas, have been using the so-called dual system for many years. In other words, they also have oil tanks that they always keep full, which can replace, if necessary, natural gas.

Melissa Kikizas has recently started installing oil tanks to be ready for use in the event of a natural gas cut. A specific investment of 100,000 euros was launched in May and concerns a plant in Larisa (a pasta factory). According to the schedule, it will be ready by the end of August.

What, of course, rightfully worries the industry is not the cost of such an investment if they do not already have oil reservoirs, but whether there will be enough of the fuel in question and at what cost. It is expected that interruptions in the supply of natural gas will push up oil prices even more, precisely because of increased demand.

Other food processors operating in the meat and cheese industry are also taking similar steps to install oil systems to run their units, while alternative solutions are also being sought by poultry companies, which, in fact, have large needs. for electricity, both for incubators and subsequently for the stage of processing and standardization of products.

And the use of biomass

Other steps that are being taken, and in some cases decided and started well before the current energy crisis, are the use of biomass for energy production. In this way, industries reduce their dependence on traditional forms of energy and at the same time reduce their impact on the environment. A typical example is Kri Kri, which completed its biogas plant this year – an investment of 6 million euros. This unit, located on the site of a dairy plant in Serra, uses liquid waste and by-products of the plant, mainly whey left over from the production of yogurt. The biogas produced is used in a cogeneration plant for electricity and heat, the electricity is sold to the DEDDIE network, and the heat produced is used in Cree Cree facilities, which helps to reduce the use of natural gas. The company also installed photovoltaic systems on the roof of a block in Serra for private use, with a capacity of 1 MW. Creta Farms is planning a plant to generate electricity using biomass using wastewater from its facilities. This is an investment of 1.8 million euros. At the same time, the company plans to install photovoltaic systems on the rooftops of its factories, as well as some of the land it has acquired around its Rethymnon plant.

The 15% reduction in gas consumption demanded by the EU is a nightmare.

The possibility of cutting off natural gas supplies to Greece is seen as a nightmare, as it would mean a reduction in GDP by several percentage points due to the shutdown of industrial production that this could lead to. According to the BSE Energy Committee, even the proposal of the European Commission to reduce the consumption of natural gas, made a few weeks ago, could have very detrimental consequences for the Greek industry. The Greek industry is already facing very high energy prices and increasing costs to meet climate targets set by Europe, notes the BSE, and “an additional imposition of the target of reducing natural gas consumption by 15% will jeopardize the smooth operation of the industry.” “. He explains that the possibilities of limiting the consumption of natural gas are very limited, especially in important energy-intensive sectors, with extremely adverse consequences in key value chains for both the Greek and European economies and society. “The use of natural gas cannot be reduced in in the short term without disrupting their operations,” the BSE energy committee said in a statement, as in some sectors “the forced reduction in production will have a number of negative consequences, while industry with significant investments is already trying to take advantage of available energy saving technologies.”

According to the BSE, this will jeopardize the smooth operation of the industry.

The Committee also notes that Greek industrial companies will suffer severe consequences as their production costs are indirectly affected due to the high share of natural gas (over 70%) in electricity generation.

He also expresses his disagreement with the base of comparison for the reduction of consumption by 15%, which is the last five years on the basis of the relevant proposal of the Commission, from which, however, our country has received an exception. The BSE Committee notes that the past five years is a period during which, in addition to the coronavirus pandemic, the Greek industry has also had to face a drop in demand caused by the financial crisis and the implementation of the memorandums. Thus, industrial production, and hence energy consumption, has already been reduced, meaning that in the case of Greece, the European target of reducing natural gas consumption by 15% is actually close to 25%.