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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.

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Presentation on theme: "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."— Presentation transcript:

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 nationwideFinal destination for about 2.8 million tonnes of waste/year 800 Direct employeesQuality, 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 Refrigeration Servicing Sector Utility Energy Efficiency Programs (200,000 Units/yr) Reclaim Centers Federal Refrigerator Replacement Program (1,000,000 units/yr) National Waste Management Program (2,000,000 units/yr) Reverse Manufacturing Facilities Foam Processing Facilities Qualified ODS Destruction Facility (Hazardous Waste Incinerator) Chiller Replacements

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

5 National Initiatives *CONAMA – National Environmental Council ** ANEEL – National Electric Energy Agency *** ABNT – National Association for Standardization 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 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

6 Step 1 CFC from refrigeration circuit Manual Dismantling Step 2 + Oil degassing Step 3 + Mechanized Dismantling + PU Panels Degassing Step 4 + All in one equipment solution Step by Step Solution (Reverse Manufacturing) Up to Fridges/Year > /year > /year $ - Investment - CFC Recovered $$$ $$$$ $$$ $ $$$$ $ $ $$$ US$ 5,000 US$ 25,000 US$ 2 million US$ 10 milion

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

8 Introdution of Demanufacturing Technology: Status WHIRLPOOL (Step 1) GTZ Bi-lateral Cooperation Underway – Step 4

9 ODS Destruction in Brazil 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$ ) UNDP is finalizing report on current destruction capacity in Brazil Potential Technology: Essencis Research on Non Thermal destruction

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

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 RevenuesCosts Logistics CFC from Refrigeration circuit Demanufacturing Services (EE Law) Recovered Materials Current Scenario

13 RevenuesCosts Logistics CFC from Refrigeration circuit CFC from Foam degassing CFC destruction Demanufacturing Services Recovered Materials Unsustainable Scenario

14 RevenuesCosts Logistics CFC From Refrigeration circuit CFC from Foam degassing Local CFC destruction Demanufacturing Services Recovered Materials CO2 US$ 3/ton CO2 US$ 15/ton 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 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 Carbon financing is critical to sustainability of CFC collection from Foam and CFC destruction activities In the future, Compliance Carbon Market rather than Voluntary Carbon Market: better price levels and predictability Export model not suitable for Brazil

16 Roberto Castillo Lopes 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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