How To Make A Plant Oil Stove

Transcription

1 Protos The Plant-Oil Cooker: Efficient, Safe, Clean October 2008 JatrophaWorld Samuel Shiroff

2 Agenda Who is BSH? Protos: A more efficient way to cook Business Model and Economics Market Introduction: Bringing Protos to the Market Thema des Vortrags I Abt. I TT. Monat JJJJ I Folie: 2

3 Who is BSH: Making use of shared strengths Robert Bosch GmbH Siemens AG 50 % 50 % BSH Bosch und Siemens Hausgeräte GmbH OI_over view Protos I VB3 I Nov 2007 TT. Monat JJJJ I Folie: 3

4 BSH third-largest Manufacturer of Home Appliances Worldwide Number of brands: 14 Number of employees: > 39,000 worldwide Sales in 2007: > 8.8 billion Number of companies: Number of factories: 70 in 40 countries around the world 40 in Europe, the USA, Latin America and Asia and a wide-coverage sales and customer service network Thema des Vortrags I Abt. I TT. Monat JJJJ I Folie: 4

5 BSH Brands Main Brands Special Brands Regional Brands Products Thema des Vortrags I Abt. I TT. Monat JJJJ I Folie: 5

6 Globalization: new customers and challenges shape our business model Thema des Vortrags I Abt. I TT. Monat JJJJ I Folie: 6

7 Agenda Who is BSH? Protos: A more efficient way to cook Business Model and Economics Market Introduction: Bringing Protos to the Market Thema des Vortrags I Abt. I TT. Monat JJJJ I Folie: 7

8 Traditionelles Traditional Cooking Kochen on Open auf offenen Fires Holzfeuern h Thema des Vortrags I Abt. I TT. Monat JJJJ I Folie: 8

9 Traditional Cooking on Open Fires h Air pollution - Comparison Average level of small particles µg/m 3 EU annual standard 40 µg/m Berlin City Center Bangkok Roadside Hut with open fire Thema des Vortrags I Abt. I TT. Monat JJJJ I Folie: 9

10 Traditional Cooking on Open Fires h Deforestation Ecological problems Unreliable energy supply Rwanda: km 2 forest, 150 km 2 deforestation p.a. Wood Supply Collection time consuming health damaging Expensive purchase Open Fire Cooking Low efficiency (5-10%) Hazardous emissions: Lung infections, Cancer 1,6 Mio. deaths p.a. Thema des Vortrags I Abt. I TT. Monat JJJJ I Folie: 10

11 Plant Oil Stove h Oil plants large-scale production small-scale production plantation on marginal lands and degraded soils Non-edible Oils Large Production By-Products Used oils Jatropha oil Rape seed oil Cotton seed oil Mc Donalds Castor oil Coconut oil Kapok seed oil Hotel Chains Babassu oil Palm oil Small business Neem oil Sunflower oil No competition to food production! Thema des Vortrags I Abt. I TT. Monat JJJJ I Folie: 11

12 Protos The World s First Plant Oil Stove Facts and figures: Power range: kw Usage: 1-3 liters oil per week for a family of liters per year Fuel: All plant oils, also used oils Efficiency: % Emissions: Ten times lower than with kerosene CO2-balance: Neutral Reason for introduction of Protos : - Powerful stove - Usage of renewable energies - Environmentally friendly - Healthy for the user - Local economic added value & job creation Thema des Vortrags I Abt. I TT. Monat JJJJ I Folie: 12

13 Market Segmentation Paying Customers Gas Kerosene Charcoal Wood Collected Biomass Fuel % % % % Target Segment POC % Income Level Bottom Low Low-to-Mid Mid Mid to High High % % Thema des Vortrags I Abt. I TT. Monat JJJJ I Folie: 13

14 Agenda Who is BSH? Protos: A more efficient way to cook Business Model and Economics Market Introduction: Bringing Protos to the Market Thema des Vortrags I Abt. I TT. Monat JJJJ I Folie: 14

15 Thema des Vortrags I Abt. I TT. Monat JJJJ I Folie: 15

16 Economics: Requirement for innovative business models Production Cost ~ 22 (includes tank) Sales Cost ~ 15 Cost gap = 7 per unit Two possible solutions 1. Carbon Credits 2. Development organizations (Foundations, Govts. NGOs, etc.) or Corporate Donations Thema des Vortrags I Abt. I TT. Monat JJJJ I Folie: 16

17 Business Model Project Developer B/S/H Licensing Local Manufacturer Quality Assurance Cooker Payment( 12-25) Subsidy( 5-10) DSM VER Cooker users VER VER VER VER VER Plant Oil Producer Payment Plant Oil Quality Assurance Thema des Vortrags I Abt. I TT. Monat JJJJ I Folie: 17

18 Key Factor: CO2 - Clean Development Mechanism CDM Process CO2 financing can generate 15-50* per cooker over 10 years Assumes replacement of liters kerosene/annum and VER price of 6-10 Thema des Vortrags I Abt. I TT. Monat JJJJ I Folie: 18

19 Key Market Factor: Plant Oil Plant Oils Triple Bottom Line Social Economic Environment Requires Cooperation with International Environmental NGOs and Local CSOs / Farmers Cooperatives Thema des Vortrags I Abt. I TT. Monat JJJJ I Folie: 19

20 Plant Oil Issues Clear Preference for us of non-edibles Jatropha Only other viable large-scale oils are Palm & Coconut Carbon Credit Project Oil Land requirements with 20,000 units Total oil = 1 3 million liters per annum Jatropha = hectares Coconut Oil = hectares Palm Oil = hectares Thema des Vortrags I Abt. I TT. Monat JJJJ I Folie: 20

21 h Simplicity of Oil Pressing and Filtration Required: Removal of particles larger than 300 micro-grams Oil Laboratory LSU, Philippines BO SC H U N D S IE M EN S H AU S GE R ÄT E GR U P P E Jatropha Oil processing Diligent, Tanzania Thema des Vortrags I Abt. I TT. Monat JJJJ I F olie: 21

22 Agenda Who is BSH? Protos: A more efficient way to cook Business Model and Economics Market Introduction: Bringing Protos to the Market Thema des Vortrags I Abt. I TT. Monat JJJJ I Folie: 22

23 Market Entry Flow Chart Country Background Plant-oil Preheating fluid Surveys Households Stove dealers Fuel dealers A. Field Test Households (Selected areas) Adaptation Requirements B. A. + Production possibilities Stove and Oil Localization added value Market Introduction Adaptations as required Key factors Stable political system Availibility of plant-oil Availibility of preheating material Target area Decision to continue Key factors POS suitable for local cooking habits POS economically competitive Desktop research Field survey with intl. and local staff Field test with intl. and local staff 4 weeks 6-8 weeks 4-6 months Decision to continue Key factors Market acceptance Is localization an economic requirement What is the market potential Securing oil and preheating material supply Decision to continue and If yes, at what level Defining a sustainable, economical system to introduce a new cooking technology! Thema des Vortrags I Abt. I TT. Monat JJJJ I Folie: 23

24 Requests for cooperation from around the world Uganda 7 Indien 20 China 4 Canada 4 USA 12 Gambia 5 Ruanda 1 Nepal 4 Mexico 6 Haiti 15 Burkina Faso 7 Dominican Republic 3 Äthiopien 10 Philippinen 20 My anmar 5 Nicaragua 4 Columbia 3 Ghana 3 Sri Lanka 3 Solomon Islands 1 Honduras 5 Kambodscha 2 Niger 3 Kenia4 Brasilien 7 Additionally: Africa 30 Asia 12 Europe 154 World 4 Unspecified 14 Bolivien 2 Namibia 1 Kamerun 5 Südafrika 5 Senegal 8 Simbabwe 4 Tansania 6 Madagaskar 8 Mosambik 3 Indonesien 25 Thema des Vortrags I Abt. I TT. Monat JJJJ I Folie: 24

25 Top Markets Identified Indonesia India South Africa Largest potential market 3-5 million units Adequate plant oil Massive Kerosene use for cooking Govt. desire to phase out subsidies Huge but complex market Widespread kerosene use Access to plant oil major hurdle Identification of pilot region underway Widespread kerosene use Supply chain establishment major hurdle Huge potential market for 1 million + Thema des Vortrags I Abt. I TT. Monat JJJJ I Folie: 25

26 Agenda Who is BSH? Protos: A more efficient way to cook Business Model and Economics Market Introduction: Experience in Indonesia Bringing Protos to the Market Thema des Vortrags I Abt. I TT. Monat JJJJ I Folie: 26

27 Business Case Indonesia Market Size 230 million population At least 150 million people cook with Kerosene Household Kerosene use liters/annum ( tons /CO 2 per year) 5 people per family = ~ 30 million families 8% market share means 2.5 million potential protos users (up to 5 million burners). Thema des Vortrags I Abt. I TT. Monat JJJJ I Folie: 27

28 Current status in Indonesia Time line Begin first plantation tests with protos II Q3/Q4 Establish Local Production Capacity Q1 09 Begin 0-series production Q1 09 Delivery of first series units Q2 09 Availability for Project Outside Indonesia Q2 09 Planned 2009 Production = 50,000 Units (can be expanded) Thema des Vortrags I Abt. I TT. Monat JJJJ I Folie: 28

29 Initial Customer Model: Builder Model only orders of 500+ units Proof of plant oil sustainability BSH does serve customers directly Builder responsible for closing cost gap (although cooperation on carbon is possible based on individual agreements) Training and Management Capacity must be proven BSH interested in initial communication / press resonance as multiplier and added-value Hand Press for rural areas Thema des Vortrags I Abt. I TT. Monat JJJJ I Folie: 29

30 How to get protos Contact BSH Munich Present business plan Sustainable Oil Supply Correct market segment & economics (cost / meal) Meet BSH guidelines for communication Order minimum of 500 units Local production possible only with 25,000+ units per annum Thema des Vortrags I Abt. I TT. Monat JJJJ I Folie: 30

31 Thank You for Your Attention Thema des Vortrags I Abt. I TT. Monat JJJJ I Folie: 31

32 Land-use requirement for plant oil Type of Plant Oil KgOil/ha/yr Liters/ha/yr Area Required to produce 100l/yr (1 hectare = 10,000 m 2) Palm oil m 2 Coconut m 2 Jatropha m 2 Rapeseed, Industrial m 2 Canola m 2 Peanut m 2 Sunflower m 2 Safflower m 2 Soybean m 2 Source: Cruz, R.O. (1992): Process Dev elopment and Evaluation of Rapeseed Biodiesel: A Progress Report, Agricultural Engineering Dept, University of Idaho, Moscow, Idaho. Thema des Vortrags I Abt. I TT. Monat JJJJ I Folie: 32