BAKU, Azerbaijan, January 18. The European Bank for Reconstruction and Development (EBRD) is providing a loan of up to $4.2 million to Azerbaijan's Az-Lead, a lead-acid battery recycling company, a source at EBRD told Trend.
The company produces secondary (unrefined) lead bullion and refined lead ingots by recycling end-of-life lead-acid batteries that would otherwise have ended up in a landfill. The transaction will be supported by a guarantee from the European Fund for Sustainable Development (EFSD).
The investment is set to boost the company’s recycling and refining capacity, improve lead-recovery rates and allow Az-Lead to increase its monthly production from 500 to 800 tons and eventually to more than 1,000. This will support the company in meeting the growing demand for recycled lead in the automotive and renewable energy sectors.
In addition to the financing, the Bank will also support Az-Lead in legal due diligence, as well as in developing an environmental, social, and governance pathway in line with international best practices for small and medium-sized enterprises.
This investment project contributes to the implementation of the EU’s Economic and Investment Plan (EIP) in the Eastern Partnership region. One of the key flagship priorities of the EIP for Azerbaijan is to promote the country’s economic diversification and greening of the economy while supporting local businesses.
"We are delighted to support our first circular economy project in Azerbaijan. Az-Lead is recycling batteries that would otherwise have ended up in landfills. With our support, the company is aiming to ramp up its recycling and refining capacity, which will boost Azerbaijan’s exports while protecting the environment. We are proud of the nature of this project and that it fully corresponds with the EU Circular Economy Action Plan," Matteo Patrone, Managing Director for Eastern Europe and the Caucasus at the EBRD, said.
Az-Lead was established in 2014 and is located in the Sumgayit industrial zone. The company is the largest secondary producer of unrefined lead and the sole producer of refined lead ingots. The company exports all of its lead-based products internationally.
The EBRD is a leading institutional investor in Azerbaijan, where it has invested US$ 3.6 billion in 187 projects to date in the financial, corporate, infrastructure and energy sectors, with most of those investments in private enterprises. The Bank’s strategy in the country focuses on helping Azerbaijan to diversify its economy and develop the non-oil private sector.