Chemical Leasing Project in Egypt
Case Study:
Chemical Leasing on Cleaning with Hydrocarbon
Solvent
Ali Abo Sena
Chemical Leasing Expert, ENCPC
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Chemical Leasing on Cleaning with
Hydrocarbon Solvent
Supplier :
Dr Badawi Chemical Work
User:
GM Egypt
Industrial process: Cleaning of equipment with solvent
Chemicals:
Hydrocarbon Solvent
Hydrocarbon Solvent Management
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Companies Profile
Dr Badawi Chemical Work : A small private company highly specialized in
chemicals used in metal finishing
General Motors Egypt : A market leader in the automotive industry
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Before Chemical Leasing
Dr Badawi sells tons of hydrocarbon solvent for cleaning
to GM Egypt
against EGP per Litre
with a minimised responsibility
• Solvent waste is a common problem in the automotive sector
• Current practice is dumping of solvent waste (hazardous) in
non-sanitary dumpsite
• High price of raw material (high petroleum price)
• 70-80% of solvent waste is considered as raw material
• More consumption leads to more VOCs in the workplace
• Cost for dumping of solvent waste
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Under Chemical Leasing
Dr Badawi sells to GM Egypt the service of cleaning with hydrocarbon
solvent
against
a fixed fee-per– vehicle (“unit pricing”)
with
defined responsibilities in a ChL contract
between GM Egypt, Dr Badawi and the ENCPC
•
Six months monitoring phase (fixation of price per vehicle)
•
Chemical Leasing Business Model for two years
•
Recycling of solvent waste at Dr Badawi facility (Recycling Unit)
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Benefits I
Economical Benefits:
• Cost reduction by 15%(saving of raw
material with recycling)
• Reduction of solvent consumption
from 1.5 L per vehicle to 0.85-1 L
per Vehicle
• Share liability and benefits
• Ensure long term business relationship
based on long contract
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Benefits II
Environmental Benefits:
• Recycling of solvent waste and stop dumping (Closing the Loop)
• Better hazardous waste management in accordance to
environmental regulations and international environmental
corporate policy
Organizational and management benefits
- More efficient cleaning process with hydrocarbon solvent by
applying a procedure for cleaning by batch cleaning
- Stop of using the hydrocarbon solvent in other purposes rather
that cleaning of equipment (e.g stop washing worker hands,
cloths etc)
- Capacity building and awareness of operation staff
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Summary of Results
Item
Before Chemical Leasing Item
Under Chemical Leasing
Consumption of Hydrocarbon
Solvent
1.5-2.0 L per vehicle (almost 30 tons of
solvent was used per year at the
beginning of project)
0.85- 1.0 Per Vehicle (total
consumption based on number
of produced cars)
5 % of total generated waste
20-25 % of total solvent waste
generated (Based on data
colleted from monitoring
14-18 L.E Per Vehicle (Based on prices
of raw material
9-10 L.E per Vehicle ( almost
reduction of 40 of total cost of
cleaning per car)
0 % is recycled ( all collected
quantities go for illegal dumping)
100 % of all collected waste
(Percentage of value of recycled
solvent to the delivered solvent
= 10 %) (cost of recycling is 1
L.E per liter and )
1L per barrel
Zero per barrel
100 ppm (Meets the Egyptian
environmental Law limit in workplace )
40 ppm
Collected Solvent Waste
Reduction of Cleaning Cost per
Vehicle
Recycling rate
Cost of disposal
Volatile Organic Compounds (VOCs)
Emissions, measured as Toluene
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Lessons learned
• Involvement of top management was helpful
• Role of ENCPC was appreciated
• Raw material price developments need to be considered
• Early warning systems is important to avoid increasing
conflicts
• Mediation and Moderation of ENCPC for conflicts is
required
• Transparent recording system required
• Additional services of ENCPC accepted
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