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ODS Banks Management and Destruction in Brazil

ODS Banks Management and Destruction in Brazil . Who are we ?. Essencis is the No 1 company in Brazilian environmental services Market . Started in 2001 and operates nationwide. Final destination for about 2.8 million tonnes of waste/year. 800 Direct employees.

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ODS Banks Management and Destruction in Brazil

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  1. ODS Banks Management and Destruction in Brazil

  2. Who are we? Essencis is the No 1 company in Brazilian environmental services Market Started in 2001 and operates nationwide Final destination for about 2.8 million tonnes of waste/year 800 Direct employees Quality, Safety and Environmental certified Operations 7 Landfills (hazardous and non-hazardous) 2 Co-processing facilities 1 High Temperaure incinerator 3 Environmental Engineering offices 4 WEE Demanufacturing facilities 2 Thermal Dessorption Units

  3. Flow of ODS in Brazil Utility Energy Efficiency Programs (200,000 Units/yr) Federal Refrigerator Replacement Program (1,000,000 units/yr) National Waste Management Program (2,000,000 units/yr) Refrigeration Servicing Sector Reverse Manufacturing Facilities Chiller Replacements Foam Processing Facilities Reclaim Centers Qualified ODS Destruction Facility (Hazardous Waste Incinerator)

  4. Flow of ODS in Brazil Utility Energy Efficiency Programs (200,000 Units/yr) Federal Refrigerator Replacement Program (1,000,000 units/yr) National Waste Management Program (2,000,000 units/yr) Refrigeration Servicing Sector Reverse Manufacturing Facilities Chiller Replacements Foam Processing Facilities Reclaim Centers Qualified ODS Destruction Facility (Hazardous Waste Incinerator) Essencis Actual Business Essencis Future Business

  5. National Initiatives Legislation and government actions: CONAMA* resolutions about ODS recovery and licensing system ANEEL** resolution that mandated funding (0.5% NOR) for “Energy Efficiency Programme”, creating conditions for fridge replacement initiatives. 200,000 fridges in past 3 years ABNT – Standard for Demanufacturing of Refrigeration equipment National Waste Policy – To be approved by end 2010 This legislation will create obligations for manufacturers and importers concerning collection and recycling WEEE “Old fridges replacement plan” - This program will replace about 10 million fridges over 5 to 10 years - Estimated total CFC collection about 3,000 to 5,000 tonnes *CONAMA – National Environmental Council ** ANEEL – National Electric Energy Agency *** ABNT – National Association for Standardization

  6. Step by Step Solution (Reverse Manufacturing) US$ 10 milion $$$ $$$$ $$$ US$ 2 million $ - Investment - CFC Recovered $ $$$$ $ US$ 25,000 $$$ US$ 5,000 $ >200.000 /year >50.000 /year Up to 50.000 Fridges/Year

  7. LocationofFacilities ESSENCIS AM (Starting Operation) (Boa Vista/RR , Rio Branco/AC & Porto Velho/RO) ESSENCIS MG (Opening October/2010) ESSENCIS RJ (Magé –RJ – Start 2011) Oxil(Paulínia/SP) Industria Fox (Cabreúva/SP – Under construction) ESSENCIS SP (Taboão da Serra/SP) GTZ Bi-lateral Cooperation Underway Whirlpool (Joinville/SC) ESSENCIS PR (Curitiba/PR)

  8. IntrodutionofDemanufacturingTechnology: Status ESSENCIS AM (Step1) ESSENCIS MG (Step2) ESSENCIS RJ (Step2) OXIL(Step1) INDUSTRIA FOX(Step4) ESSENCIS SP (Step2) GTZ Bi-lateral Cooperation Underway – Step 4 WHIRLPOOL (Step 1) ESSENCIS PR (Step3)

  9. ODS Destruction in Brazil • Potential Technology: • Essencis Research on “Non Thermal destruction” Incineration at Hazardous waste incinerators 22 facilities in the country, Installed capacity about 75,000 tonnes/year 7 Capable to deal with CFC, with minor investment in specialized burners (US$ 500.000) UNDP is finalizing report on current destruction capacity in Brazil

  10. HazardousWasteIncinerators Cinal (Mal. Deodoro AL) - Cetrel Lumina (Camaçari - BA) Haztec Tribel (Belford Roxo - RJ) Servatis (Resende – RJ) Basf (Guaratinguetá - SP) ESSENCIS (Taboão da Serra –SP) Fonte: ABETRE – 2009 ABL (Cosmópolis - SP)

  11. ODS Destruction Challenges • Cost : • Initial Investment - Possible source of funding: • MLF; GEF; bi-lateral cooperation • Sustainable Operation - Possible sources of funding: • Partnership with UNDP - MDG Carbon Facility Carbon Market • Incineration in Brazil vs offsets under CAR and VCS • Export model not suitable for Brazil: • Why export given sufficient local destruction capacity? • Legal issues

  12. CurrentScenario

  13. UnsustainableScenario

  14. Sustainable (and desirable) Scenario Good carbon market revenue is essential to develop a sustainable business

  15. Conclusion Best way to start is “Step by Step” Export model not suitable for Brazil MLF; GEF; Bi-lateral cooperation: donor grant is crucial for start up activities / initial investment National Energy Efficiency Utilities Programme is an important catalyst for the market Government, Implementing agencies and private companies must join efforts to develop the national market In the future, Compliance Carbon Market rather than Voluntary Carbon Market: better price levels and predictability Carbon financing is critical to sustainability of CFC collection from Foam and CFC destruction activities

  16. Roberto Castillo Lopes rlopes@essencis.com.br www.essencis.com.br Special thanks to: UNDP Montreal Protocol and Chemicals Unit UNDP MDG Carbon Facility team UNEP Ozone Secretariat Brazil Minister of Environment, MMA

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