Ali Abo Sena Chemical Leasing Expert, ENCPC Chemical Leasing Project in Egypt Case Study: Chemical Leasing on Cleaning with Hydrocarbon Solvent

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 SolventManagement Hydrocarbon Solvent Management

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

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

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 Under Chemical Leasing 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)

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 L per Vehicle Share liability and benefits Ensure long term business relationship based on long contract

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

Summary of Results ItemBefore Chemical Leasing ItemUnder Chemical Leasing Consumption of Hydrocarbon Solvent L per vehicle (almost 30 tons of solvent was used per year at the beginning of project) Per Vehicle (total consumption based on number of produced cars) Collected Solvent Waste 5 % of total generated waste20-25 % of total solvent waste generated (Based on data colleted from monitoring Reduction of Cleaning Cost per Vehicle 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) Recycling rate 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 ) Cost of disposal 1L per barrelZero per barrel Volatile Organic Compounds (VOCs) Emissions, measured as Toluene 100 ppm (Meets the Egyptian environmental Law limit in workplace ) 40 ppm

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