A complete solution for

sustainable recycling of lead 11th January 2017

Jashan Bhumkar

Business OverviewSoujanya Color Pvt. Ltd. | Navi Mumbai - India

AUTOMOTIVE SECTORNumber of vehicles in India increased from 55 million (2001) to159.6 million (2012)

Automotive sector growing at about10% CAGR (2006-16)

RENEWABLE & GRID ENERGYRenewables Target: 100 GW solar, 60 GW wind by 2022 – need storage mechanisms

National Smart Grid Mission: batteries formonitoring and control of power flow

HYBRID & ELECTRIC VEHICLES National Electric Mobility MissionPlan (NEMMP): 7 million HEV’s by2020

HEV segment growing at 40% annually

BACK UP POWERDemand for large-scale back uppower for industries slated togrow 7-9% over the next 5 years

Increased Demand for Lead Acid BatteriesDriving Forces

15%Growth in Demand forLead Acid Batteries in

India

20%Speculated increase

in price of leadbetween 2016 and

2018 – favorable timesfor the commodity

(ILZDA)

50%Amount of recycled

lead in battery

97%Percentage of lead

recycled in USA

Current Market Situation

Only safe at

ZEROThere is no known level of lead exposureconsidered to be safe• WHO: Number 1 of 10 metals that are a

public health hazard• Affects brain, liver, kidneys and

accumulated over time in bones andteeth

• Brain disorders (10% of global burdenof disease as per WHO)

• Ischemic heart disease and stroke

120 millionPeople overexposed to leadglobally

99 %Of these are in developingcountries

12 %Loss of productivity, percentage ofIndia’s GDP

billionEconomic losses in India alonedue to lead poisoning

$230

>3 timesThe number of people affected by HIV/AIDS

Recycling is the ONLY OPTION

2 millionPeople in India are adverselyaffected due to improper recyclingof lead

The IRONY

Lead recycling is motivated by our desire to achieve sustainabilityYET

The current recycling processes are themselves damaging to the environment

Pyrometallurgical (Smelting) Process

Energy intensive

Capital intensive: $5 million for a10,000 tpy plant

Hazardous Emissions

Lead fuming

Excessive waste: sludge, slag, dross

Pyrometallurgical (Smelting) Process

ENERGY INEFFICIENT!

Energy density of lead-acid battery 50 Wh/kg

Energy input into smelting process 750 Wh/kg

Net energy per kg of recycling -700 Wh

LOW CAPITAL COSTS

NO PB FUMING NO NOXIOUS GAS

EMISSIONS

PROFITABLE ENERGY EFFICIENT

MINIMISES WASTE

The Hydrometallurgical Process

Can fuel cells play a role in the future?A fuel cell can generate electricity silentlyand without combustion. The fuel streamis fed into a compartment separated froma second compartment into which air isfed. The two streams never mix or burn,but still electricity is pro duced at effi -ciencies that can be more than 100 percent higher than turbine-based powerplants using the same fuel. In principle,the fuel cells are similar to batteries. Thesecret material in both cases is theseparator – an electrolyte – which allowsfor silent but active communication be -tween the fuel and the air (Figure 2).

Leaching(with bio-reagents)

Wastebattery

Newpaste

Crystallinecompounds

Newbattery

Pastepre-

cursor

Usedpaste

Metalliclead

Spentlead grid

Melting andrefining kettles

Combustion-calcination

Patent:PCT/GB2007/004222;

WO2008/056125R.V. Kumar, S. Sonmez,

V. Kotzeva

Energy

Residual battery paste is dissolved in an aqueous solution of carboxylic acids derived fromplants (leaching) to produce lead organic material which is converted by combustion at hightemperatures to lead monoxide and metallic lead for new battery paste preparation. Thelead grids are refined separately using heat from the first process. The use of acids fromplants results in a very low carbon footprint. Thus it is possible for rural users to send backto battery manufacturers value-added products for re-engineering.

Fuel Air

Excess fuel andwater

Unusedgases

Anode CathodeElectrolyte

H2

H2O

O2

O2-

O2-

e-

e-e

Figure 2 A fuel cell

Leapfrogging to sustainable power

39

Figure 1 Green battery recycling process5

Residual battery paste is dissolved in an aqeous solution of plant-derived carboxylic acidsto produce alead organic material is produced as a pre-cursorwhich can be converted at moderate temperatures (350-400oC)to produceBattery-ready PbO/Pb

Lead grids are refined separately using heat from the first, exothermic process

The Hydrometallurgical Process

1. Reduced Capital Expenditure

0

1

2

3

4

5

6

1000 TPY 10000 TPY

More than 50% reductionin capital costs

Traditional process not viable atsmall scale since costs ofregulatory compliance areprohibitive

Traditonal process

Green Process

10,000 tpy plant can be set up on 10,000 sq ft land

2. Improved Profitability

At current reagentmarket prices.For a 10,000 tons throughput ofbatteries

$ 3.5 millionadditonalprofit

In-house production of reageentbeing considered

$ 5 millionadditionalprofit

Securing lowcost supply ofthe reagent willensure maxprofitability andstability

73

3

14

8

Equipment

Waste

Energy

Reagents  

19

12

78

Comparison of 10 year average yearly cost proportions between traditional and green process

New grids + Lead Oxide

Direct manufacturing of battery ready lead oxide directly; reduced processing steps

3. Improved process efficiency

Spent grids

IngotsCyclic voltametry results for nanostructured PbO. Corresponding reactions below

The final product is abattery-readynanocrystallinePbO/Pb paste.

Shown to have atleast 30% greaterenergy efficiencythan conventionalpastes.

4. Improved product efficiency

SEM image of battery-ready PbO/Pb mixture showing nanocrystalline strructure

TEM image of PbO product showinglnanocrystalline strructure

5. Improved Energy Efficiency

The greenhydrometallurgical processis a NET PRODUCER ofEnergy

Assumption: Using a variableorganic turbine system for lowtemperature energy consumption, we can generate 1250 MWhelectricity from the process. :

Net 750 MWh energyproduced per 10,000 tonsbattery recycled

-­‐8000 -­‐7000 -­‐6000 -­‐5000 -­‐4000 -­‐3000 -­‐2000 -­‐1000 0 1000 2000

Hydrometallurgy

Pyrometallurgy

Energy  (MWh)

Energy  (MWh)  consumption  and  production  per  10,000  tons  battery  recycled

E_consumed

E_produced

What about smelting?Competitive Landscape Analysis

Surplus ofenergy from

green process

Lowtemperature

combustion ofintermediate

organicprecursor

Can loweroperatingtemperatureof smeltingfurnace

Can reduceelectrity usagein electrowinningrun in parallel

Can reduceenergy input for smeltingrun in parallel

26

Battery Collection

Battery Management and Handling Rules (BMHR), 2001Battery manufacturers to collect 90% of the batteries sold throughdealers for recycling

Extended Producers’ Responsibility (EPR) framework

Battery CollectionPoor compliance with BMHR

Study conducted by OK International to evaluate compliance withBMH and gauge the extent to which regulation has encouragedproduct stewardship among lead battery companies

Regular and thorough reporting, but

Alarmingly low levels of compliance

Inadequacy of the system to ensure formalized recycling

Where do half our batteries land up?

0.15 μg/m3USA: Standard lead

particle concentration in air

1.4 μg/m3“Lead event”

6.2 μg/m3Pb concentrations in air around 25 unregistered smelting sites near New

Delhi

> 400 timesLegally allowable limits

Pb concentrations in exhaust gases of

unregistered smelters

Comprehensive study by University of Michigan School of Public Health

Workers in unregistered smelting facilities in India have 10 times higher bloodlead levels than healthy age-matched controls

Aurelius Technology Limited A subsidiary of AEG Holdings Ltd Page 7 of 26

source: pureearth.org - Bihar, India, is home to many of the world's most

polluting informal recycling facilities for used lead acid batteries. Lead-based battery technology will play a significant role in helping to achieve national and international energy policy. For this reason, we believe that new Government regulations globally will force smelting to become less profitable and more heavily controlled. It is only a matter of time before old technology is replaced by newer, more efficient alternatives. The demand for a new, low-capital cost process for the recycling of lead, which can lend itself to small scale and is environmentally friendly, will have a major global impact. Our novel approach, based on a process invented by researchers at Cambridge University, has the capacity to transform lead recycling into a more profitable and environmentally friendly business.

Formalized Smelting is Prohibitive at Small ScaleCosts of pollution control equipment are unviable at small scale

For a 5000 MT/year plant,Gross Margin is approx. 10%

Much lesser pollution control equipment required since no SO2 and NO2 emissions in Green Process

Gross Margin for Green Process is upwards of 60% at small scales

Government action: Subsidisation of costs for switching to Green Process

Parallel Supply Chains for Used Batteries

Retailersare paid1% moreby scrapdealersthan bycompanies

Costs ofcompliance

areforegone by

theinformal

sector

Digital TransformationCan Provide Solutions For Efficient, Foolproof and Formalized Battery Collection Systems

Data-driven collection system using “smart” bins and GPS-enabled collection route optimization

Apps for at-door pick up of batteries

Mobile-based and digital payment systems

Intelligent memory-encoded packaging

EPR: investment from battery manufacturers

With appropriate incentives from Government

s

Bridge performance gap with Lithium

batteries

E-waste recycling in Smart Cities

Formalize the informal recycling sectorLARGER IMPLICATIONS

Smart Villages – impact 200 million people. Off-grid electrification in remote locations

made possible by small scale, profitable operations

SMART VILLAGESNew thinking for off-grid communities worldwide

A single car battery has more lead than in 26,944 cell phones, 6 standard television monitors or 11 computers

Thank You

Q A&

Acknowledgements

• Prof. Vasant Kumar, University of Cambridge, UK

• Aurelius Environmental, UK

Appendix 1 – ROI calculations• 10,000 tpy plant • Equipment cost: £200k for calcination kiln, £650k for battery breaking system, £100k on gas

abatement system, £70k electric turbine generator, £150k on recovery system for lead metal = Total £1.1 million

• Assume total CapEx = Rs. 15 Cr • Straight line depreciation = Rs. 1.3 Cr• At current market price of reagent, Gross Profit = £12 million = approx. Rs. 81 Cr • Taxable profit = 81 – 1.3 = approx. Rs. 80 Cr• At 12% interest rate, NPV is highly positive• Internal Rate of Return (IRR) = 280%

Appendix 2 – Waste, Byproducts and Carbon footprint

• Plastic from spent battery wash, granulate and sell to plastic manufacturers

• Acid from spent battery drain, neutralize and sell as a sulfate salt to glass manufacturers, orconvert to gypsum for use in agriculture

• If electrolysis in parallel no slag, but need to recycle the electrolyte

• If smelting in parallel 200 tpy dross (for a 10,000 tpy plant)

• Water Fully recyclable

• Waste mother liquors Fully recyclable

• CO2 emission 5000 tpy (for a 10,000 tpy plant)Carbon footprint can be offset if reagent is derived from a renewable

source

Appendix 3 – IP Situation

• US Patent number 8323376 (claiming priority from PCT application PCT/GB2007/004222 filed on 6 Nov 2007) - granted

• China Patent number 101573461 (claiming priority from PCT application PCT/GB2007/004222 filed on 6 Nov 2007) - granted

• India Patent number 2216/KOLNP/2009 (claiming priority from PCT application PCT/GB2007/004222 filed on 6 Nov 2007) - pending