1. h
Cool Carbon: A Multi-Faceted Refrigeration Product
Samuel Shiroff
Conference âThe Future of
Sustainable Products and
Servicesâ
September. 28, 2009
BOSCH UND SIEMENS HAUSGERĂTE GRUPPE
2. h
The BSH Shareholders | 1
BSH Bosch und Siemens HausgerÀte GmbH
50 % 2009 50 %
Robert Bosch GmbH Siemens AG
1967
BOSCH UND SIEMENS HAUSGERĂTE GRUPPE Cool Carbon: A Multi-Faceted Refrigeration Product Sept 28, 2009 I Folie: 2
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The BSH Corporate Principles | 2
Our Vision Our customers can trust us.
We want to be the
benchmark
of our industry. We are pioneering innovators
in our industry.
Our Mission
BSH is one of the
Our people are the foundation
worldâs leading
of our success.
manufacturers of
home appliances,
and creates value We enhance the value of our
for its customers company.
and shareholders.
We bear responsibility for
environment and the society.
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BSH â Global Success
13 brands*
~ 39,000
employees worldwide*
~ EUR 8.76 billion
sales**
> 60 companies
in ~ 40 countries*
42 factories in Europe,
the U.S.A., Latin America
and Asia*
Global sales and
customer service network
** Valid at: August 2009
** Valid at: 31.12.2008
BOSCH UND SIEMENS HAUSGERĂTE GRUPPE Cool Carbon: A Multi-Faceted Refrigeration Product Sept 28, 2009 I Folie: 4
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BSH â Brands
Main Brands Special Brands Regional Brands Products
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BSH Wins the First German Sustainability Award 2008
The panel was impressed by BSHâs
consistent sustainability management all
along the entire value chain and
communication on sustainability issues,
furthering the companyâs image.
The prize is awarded to companies
combining financial success with
social responsibility and environmental
protection
More than 350 companies entered the
competition (incl. Volkswagen, BASF,
Osram, Henkel)
The structures and processes for
sustainable corporate management were
assessed
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Contents
Refrigerators and the Energy Challenge in Brazil
Project Overview
Lessons Learned
Moving Forward
BOSCH UND SIEMENS HAUSGERĂTE GRUPPE Cool Carbon: A Multi-Faceted Refrigeration Product Sept 28, 2009 I Folie: 7
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BOSCH UND SIEMENS HAUSGERĂTE GRUPPE Cool Carbon: A Multi-Faceted Refrigeration Product Sept 28, 2009 I Folie: 8
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The importance of refrigerators in Brazilian energy use
Energy consumption due to fridges: Participation of major utilities in average
18,3 TWh/year residential energy consumption
Energy use percentage of fridges:
4,5 % of national consumption
22 % of residential consumption
Shower
Light bulbs
Freezers
Fridges
Iron
Sound system
TV
Air Conditioner
Source: Research of utilities possessions and usage habits â base year 2005 - July 2007, EletrobrĂĄs, Procel
BOSCH UND SIEMENS HAUSGERĂTE GRUPPE Cool Carbon: A Multi-Faceted Refrigeration Product Sept 28, 2009 I Folie: 9
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In most cases refrigerators are acquired in very precarious situation and are
basically used to refrigerate bottle of waters
examples found in north of Brazil
source: CELPA
BOSCH UND SIEMENS HAUSGERĂTE GRUPPE Cool Carbon: A Multi-Faceted Refrigeration Product Sept 28, 2009 I Folie: 10
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Some Refrigerators work continuously with a curtain instead of a door. Projected
consumption measured on an average use during a 4 day period: 169 kWh/month
examples found in north of Brazil
source: CELPA
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Concept: Use current fridge-exchange program as test for CDM
Brazilian energy efficiency requirements
â Utilities must spend .05% of revenues on efficiency (supply &
demand-side programs)
â Funds are spent on combo efficiency and social âfocus on
favelas (slums)
BSH at forefront of fridge exchange program
â BHS exchanged 45,500 (total 100k industry-wide)
â BSH offers recycling old fridges (guarantees they are no
longer used)
â Risk: Cost position weaker than comparative rivals, might
mean losing future business
Opportunity: increase revenue per fridge via CDM
â Leverage based on:
â Efficiency of new fridge / Inefficiency of old (recycled)
fridge Macro-economic savings
â Fuel-mix used to produce electricity âLower âbaseâ and âpeakâ demand
â 1 MW Coal = approx. 1 ton CO2 (country/region specific) âFewer additional power plants to build
â Recycling of Old Fridges âMore down-time for costliest fuels
â Possible subsidy to build new recycling plant (Montreal
Protocol) Micro-economic savings
âSignificantly lower energy bills and/or
â Carbon credits for CFCs and/or HFCs (t.b.d.) ârealization of âsuppressed demandâ
â Revenue from sale of recycled materials âSocial added value
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BSH Business Model, Modular and flexible proposal with both ecological product
and reverse manufacture
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Recycling
Initial Old refrigerator
Exchange Program
Favela
BSH New refrigerator
Utility or Govt
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Contents
Refrigerators and the Energy Challenge in Brazil
Project Overview
Lessons Learned
Moving Forward
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Project Framework
Public Private Partnership with the GTZ
Synergistic and complimentary expertise
Risk-sharing cost and reputational
Goals:
Design: Develop a new CDM methodology to allow for CO2 credits from energy
efficiency and coolant gasses to encourage refrigerator exchanges and
environmentally responsible recycling
Prepare: Develop an action plan for applying the new methodology
Apply: Establish partnership with a utility for first pilot project
Repeat: Determine where replication is possible
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3 Core elements offering new sales opportunities for selling refrigeration
Refrigerator Exchange
Goal is to replace old inefficient fridges with new highly efficient
models saving electricity for the consumer and the planet
Recycling
The old fridge must be recycled to ensure it is no longer used and all
CFCs are destroyed
CDM
The Clean Development Mechanism (CDM) is used to capture the
value of the carbon saved by the increased efficiency and captured
gasses from recycling
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Recycling
CDM Utility Old refrigerator
Exchange Program
Favela
BSH New refrigerator
10yr 9 yr 8 yr 7 yr 6 yr 5 yr 4 yr 3 yr 2 yr 1 yr
CO2 Emission Reduction (CERâs) 1 yr
2 yr
3 yr
4 yr
5 yr
6 yr
7 yr
8 yr
9 yr
Utility 10yr
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Recycling is a fundamental component for exchanges
Old units must be removed from market!
Recycling ensures efficiency gains and environmental advantages
Waste Electrical and Electronic Equipment. (WEE)
CFC / HFC â Ozone Killers and Climate Killers added value
Metals 42,81%
(Fe/NE/Al)
Plastic 12,95%
Glass 3,89%
HFC CFC
CER / VER
destruction
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Contents
Refrigerators and the Energy Challenge in Brazil
Project Overview
Lessons Learned
Moving Forward
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Lessons Learned
Methodology Preparation:
â Overall very successful and fast: 144 days
â PPP highly conducive to success legitimacy and expertise
â Meth Panel made unprompted and problematic alternations (lack of
understanding of industry)
Preparation of action plan
â Coordination with utilities proved complex due to CO2 learning curve
â Establishing necessary conditions challenging but not impossible
Apply:
â PDD with methodology already submitted
â BSH working with new factory owner and utility on 2nd one
Repeat:
â Currently in the process of determining where conditions are suitable
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Lessons Learned
Technology:
â It is possible to design highly efficient appliances
that meet or exceed minimum requirements
â âŠbut. . . the most efficiency technologies require
additional support to ensure access
Access
â Incentives need to be created
â Financing (including CO2) needs to be in place
Action
â Companies must see a clear economic benefit
(government programs can help)
â NGOs and Development Orgs need to be integrated to facilitate access to market
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Contents
Refrigerators and the Energy Challenge in Brazil
Project Overview
Lessons Learned
Moving Forward
BOSCH UND SIEMENS HAUSGERĂTE GRUPPE Cool Carbon: A Multi-Faceted Refrigeration Product Sept 28, 2009 I Folie: 23
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A market research has been compiled in 47 countries around the world:
âą fridges older than 10 years ?
âą refrigerant containing CFC?
âą energy mix ?
âąâŠ
âą CDM market potential ?
BOSCH UND SIEMENS HAUSGERĂTE GRUPPE Cool Carbon: A Multi-Faceted Refrigeration Product Sept 28, 2009 I Folie: 24
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Program Potential in the Researched Countries
CDM Potential
Low Medium High
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Next steps
In Brazil
Brazilian Factory Sold
Working with new owner to implement first project
Around the world
Searching for locations for repetitions
New dynamic for Phase II recycling and CFCs set into motion
Learning Curve
BSH better understands CDM and is looking into other possibilities
New perspective on working with un/under-served market segments
Exploring other resource-related issues (water)
Very open to additional Public Private Partnerships
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Protos: Sustainable Products and Services
Services
Warm Food, Safe Fuel, Faster, Low Cost Target
Market
Segment:
Environmental Health / MDGs
Kerosene Stove
Users
Cost Gap Payment
Reduced Deforestation Maternal Health
Grants
CO2 Neutral Fuel Child Health
Payment Reduce Costs:
Scale,
Technical
H
Development
Companies WHO / UN Reputation / Brand
Governments IGOs/ NGOs
General Public Political
Foundations
Development Orgs Operational
CO2 Certificates
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28. h
Thank you for your attention
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