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 operates nationwide
7 Landfills (hazardous and non-hazardous)
2 Co-processing facilities
1 High Temperaure incinerator
3 Environmental Engineering offices
4 WEE Demanufacturing facilities
2 Thermal Dessorption Units
Final destination for about 2.8 million tonnes of
waste/year
800 Direct employees
Quality, Safety and Environmental certified Operations
Flow of ODS in Brazil
Refrigeration
Servicing
Sector
Utility Energy
Efficiency
Programs
(200,000 Units/yr)
Federal Refrigerator
Replacement
Program
(1,000,000 units/yr)
National Waste
Management
Program (2,000,000
units/yr)
Reverse Manufacturing
Facilities
Chiller
Replacements
Foam Processing
Facilities
Reclaim
Centers
Qualified ODS Destruction
Facility (Hazardous Waste
Incinerator)
Flow of ODS in Brazil
Refrigeration
Servicing
Sector
Utility Energy
Efficiency
Programs
(200,000 Units/yr)
Federal Refrigerator
Replacement
Program
(1,000,000 units/yr)
National Waste
Management
Program (2,000,000
units/yr)
Reverse Manufacturing
Facilities
Chiller
Replacements
Foam Processing
Facilities
Reclaim
Centers
Qualified ODS Destruction
Facility (Hazardous Waste
Incinerator)
Essencis Actual Business
Essencis Future Business
National Initiatives
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 2010
This legislation will create obligations for manufacturers and
importers concerning collection and recycling WEEE
“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
*CONAMA – National Environmental Council
** ANEEL – National Electric Energy Agency
*** ABNT – National Association for Standardization
Step by Step Solution
(Reverse Manufacturing)
US$ 2 million
$ - Investment
- CFC Recovered
US$ 25,000
$$$
US$ 5,000
$
Step 1
Step 2
+ Oil
degassing
$
$$$$
$
$$$
$$$$
$$$
Step 3
Step 4
+
Mechanized
Dismantling
+ PU Panels
Degassing
+
“All in one”
equipment
solution
CFC from
refrigeration
circuit
Manual
Dismantling
>200.000 /year
>50.000 /year
Up to 50.000 Fridges/Year
US$ 10 milion
Location of Facilities
ESSENCIS AM
(Starting Operation)
(Boa Vista/RR , Rio Branco/AC & Porto Velho/RO)
ESSENCIS MG (Opening October/2010)
ESSENCIS RJ (Magé –RJ – Start 2011)
Oxil (Paulínia/SP)
Industria Fox (Cabreúva/SP – Under construction)
ESSENCIS SP (Taboão da Serra/SP)
ESSENCIS PR (Curitiba/PR)
GTZ Bi-lateral Cooperation
Underway
Whirlpool
(Joinville/SC)
Introdution of Demanufacturing
Technology: Status
ESSENCIS AM
(Step 1)
ESSENCIS MG (Step 2)
ESSENCIS RJ (Step 2)
OXIL (Step 1)
INDUSTRIA FOX (Step 4)
ESSENCIS SP (Step 2)
ESSENCIS PR (Step 3)
GTZ Bi-lateral Cooperation
Underway – Step 4
WHIRLPOOL (Step 1)
ODS 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 Incinerators
Cinal
Cetrel Lumina
(Mal. Deodoro
-
Haztec Tribel
Servatis
Basf
Fonte: ABETRE – 2009
(Guaratinguetá
(Cosmópolis
-
(Camaçari - BA)
(Belford Roxo - RJ)
(Resende – RJ)
- SP)
ESSENCIS
ABL
AL)
(Taboão da Serra –SP)
SP)
ODS Destruction
Export model not suitable for Brazil:
•Why export given sufficient local destruction capacity?
•Legal issues
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 Market
Incineration in Brazil vs offsets under CAR and VCS
Current Scenario
Revenues
Costs
Recovered
Materials
CFC from
Refrigeration
circuit
Demanufacturing
Services
(EE Law)
Logistics
Unsustainable Scenario
Revenues
Costs
Sustainable
Revenues
CO2
US$ 3/ton
CO2
US$ 15/ton
(and desirable) Scenario
Costs
Local CFC
destruction
CFC from Foam
degassing
Recovered
Materials
CFC From
Refrigeration
circuit
Demanufacturing
Services
Logistics
Good carbon market revenue is essential
to develop a sustainable business
Conclusion
Best way to start is “Step by Step”
Export model not suitable for Brazil
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
Roberto Castillo Lopes
rlopes@essencis.com.br
www.essencis.com.br
Special thanks to:
UNDP Montreal Protocol and Chemicals Unit
UNDP MDG Carbon Facility team
UNEP Ozone Secretariat
Brazil Minister of Environment, MMA