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Two Attempts from BSH
“How to create effective markets
for low carbon energy solutions
that ensure equitable and
widespread access to energy
services in the Global South?”
Samuel Shiroff
London, June, 2013
BOSCH UND SIEMENS HAUSGERÄTE GRUPPE
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Agenda

BSH Overview

Protos: An interesting case study

HealthyHoods: A tool in an improving arsenal
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The BSH shareholders 2011 | 2
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Brands
13 brands, 42 factories, about 45,000 employees
■ around 9.7 bill. Euro sales in 2011
■
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■
■
about 70 companies in 49 countries
Global sales and customer service network
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Agenda

BSH Overview

Protos: An interesting case study

HealthyHoods: A tool in an improving arsenal
BOSCH UND SIEMENS HAUSGERÄTE GRUPPE
Two Attempts I Sustainability I 24.06.2013 I Folie: 5
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Traditional Cooking on Open Fires
Average level of small particles µg/m3
Air pollution
3000
240
EU annual standard
40 µg/m3
30
Berlin City Center
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Bangkok Roadside
Hut with open fire
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Protos – The World‘s First Plant Oil Stove
•Facts and figures:
Power range:
2.0 – 2.5 kW
Usage:
2-4 liters oil per week for a family of 4-5
→ 100 – 200 liters per year
Fuel:
All plant oils, also used oils
Efficiency:
45 – 58 %
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
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Protos – Product Development
$250
2005
2004
$60
$75
2006
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2007
~$50
2008-2010
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Establishing the Target Market
Target market: who and where are our users?
current
customers
“The Cooking-fuel
Pyramid”
Developing World
LPG Users
Kerosene and
Monetized Bio-mass
Non-monetized Bio-mass users
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Initial Market Focus
Determined via field tests
with ~1000 families in:
 Guatemala
 Philippines
 Tanzania
 India
 Indonesia
Test Start
1999
2003
2005
2007 
2007 
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Business Model: Cost of the Cooker
 Production Cost ~ $50 (includes tank)
 Sales Cost
~ $20
 Cost gap
~ $30 per unit
Question: To whom does the cooker bring added value?
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Protos: Innovative Business Models
Services
Warm Food, Safe Fuel, Faster, Low Cost
Health / MDGs
Environmental
Payment
Cost Gap
Payment
Companies
Governments
Reduce Costs:
Scale,
Technical
Development
Grants
Reduced Deforestation
CO2 Neutral Fuel
Individuals
paying for:
Maternal Health
Child Health
WHO / UN
IGOs/ NGOs
General Public
Foundations
Development Orgs
Kerosene
Charcoal
Wood
H
Reputation / Brand
Political
Operational
CDM
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Two Attempts I Sustainability I 24.06.2013 I Folie: 11
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Three Possible Business Models
Builder Model
Traditional
Cooker Price
~$50 ExW
Warranty Deducted
Spare Parts
Optional % of
purchase
Cooker Price
Warranty 1-year
Service
Builder Subsidy
CO2 Model
~$50 ExW +
~$?? +
~$?? +
- $xx
Total User Cost:
<55
$55++++
Cooker +
Cooker +
Transport +
Transport +
Training
Training +
Profit margin +
Warranty
 Customers
 Customers
 Government
 Businesses in regions where
 Plantations
user can pay
 Charitable Organizations
 CSR
Total User Cost:
Cooker Price
Warranty 7-year
Service
CO2 Project Cost
CO2 Revenue
Total User Cost:
~$50 ExW+
~$?? +
~$?? +
$xx
-$yy
<<55
Cooker +
Transport +
Training
 Customers
 CO2 Project Developers
 CSR
 Energy Companies
overlaps
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Project Conclusion: It didn’t work
 The Technology never outcompeted Kerosene
 Plant oil supply chain was difficult and controversial
 Carbon market collapse made primary financing model impossible
 Adequate economies of scale could not be achieved

Decision 2010: Cease production and make patent available to all
www.plantoilcooker.org
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Agenda

BSH Overview

Protos: An interesting case study

HealthyHoods: A tool in an improving arsenal
BOSCH UND SIEMENS HAUSGERÄTE GRUPPE
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http://www.youtube.com/watch?v=y0HXGqHvbUM
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Project Overview
 Concept:

Using BSH core competence in co-operation of an NGO (Practical Action) to create solutions
for global health issue

Design & Optimize smoke hoods for developing countries and establish construction
guidelines:
–
–
–
–
Taking into consideration available materials and manufacturing capacity
Variable depending on family size and needs
For a variety of regions and heating/cooking needs
Using local manufacturers

Distribute information on website and with partners to leverage impact

Generate media awareness
 Partners:

Universität der Bundeswehr München: Institute for Thermodynamics

Practical Action: UK-based non-profit organization with extensive experience
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Project Overview
Goals
 Design smoke hoods
 Establish design guidelines
 Create a functional internet-accessible overview
 Generate awareness of the problem and potential donations for the solution
 Establish scalable and sustainable business model.

Make a Positive Difference and reinforce BSH‘s reputation
“Do good things and talk about them”
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Project Organization
BSH
€ + Mngmt
Bundeswehr Uni
CFD
DEG
€200k
Practical Action
UK & Nepal
Gareto
Training & Mngmt
Local Coop
Financing
Users
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Users
Users
Manufacturer
Users
Users
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Implementation model
Awareness raising
Social marketing for
demand generation
Establishment of
revolving fund and
capacity building
Capacity building of local
fabricator
Quality Assurance
Technology fabrication at
local level
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Impacts to date
•82% indoor smoke reduction
•30% less firewood used and
drudgery reduction of women, and
reduction in Co2 emission
•>800 households reached 
Significant reduction of smoke
related diseases
•Expansion efforts underway
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Key Economic Challenges
Core funding for revolving funds
Investor-friendly business model
Bundling with improved cookstoves
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Thank you
www.healthysmookehoods.org
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