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.

ODS Banks Management and ODS Banks Management and Destruction in Brazil Destruction in Brazil

Who are we?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 facilities1 High Temperaure incinerator3 Environmental Engineering offices4 WEE Demanufacturing facilities2 Thermal Dessorption Units

Flow of ODS in BrazilFlow 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

Flow of ODS in BrazilFlow 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 Business Essencis Future Business

National InitiativesNational 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 2010This legislation will create obligations for manufacturers and

importers concerning collection and recycling WEEE

Step by Step SolutionStep by Step Solution(Reverse Manufacturing)(Reverse Manufacturing)

Up to 50.000 Fridges/Year>50.000 /year

>200.000 /year

$ - Investment

- CFC Recovered

$$$$$$$$$$

$$$$$

$

$

$$$

US$ 5,000US$ 5,000

US$ 25,000US$ 25,000

US$ 2 millionUS$ 2 million

US$ 10 milionUS$ 10 milion

Location of FacilitiesLocation 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 CooperationUnderway

Introdution of Introdution of Demanufacturing Demanufacturing

Technology: StatusTechnology: Status

WHIRLPOOL (Step 1)GTZ Bi-lateral CooperationUnderway – Step 4

ODS Destruction in BrazilODS 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$ 500.000)

UNDP is finalizing report on current destruction capacity in Brazil

Potential Technology:

Essencis Research on “Non Thermal destruction”

Hazardous Waste IncineratorsHazardous 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

ODS DestructionODS 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 MarketIncineration in Brazil vs offsets under CAR and

VCS

Export model not suitable for Brazil:•Why export given sufficient local destruction capacity?•Legal issues

Current ScenarioCurrent Scenario

Unsustainable ScenarioUnsustainable Scenario

Sustainable Sustainable (and desirable) (and desirable)

ScenarioScenario

Good carbon market revenue is essential to Good carbon market revenue is essential to develop a sustainable businessdevelop a sustainable business

ConclusionConclusion

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

Roberto Castillo LopesRoberto Castillo [email protected]

www.essencis.com.br

Special thanks to:UNDP Montreal Protocol and Chemicals UnitUNDP MDG Carbon Facility teamUNEP Ozone SecretariatBrazil Minister of Environment, MMA