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Ali Abo Sena
Chemical Leasing Expert, ENCPC
Chemical Leasing Project in Egypt Case Study:
Chemical Leasing on Cleaning with Hydrocarbon Solvent
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Chemical Leasing on Cleaning with Chemical Leasing on Cleaning with Hydrocarbon SolventHydrocarbon Solvent
Supplier : Dr Badawi Chemical Work
User: GM Egypt
Industrial process: Cleaning of equipment with solvent
Chemicals: Hydrocarbon Solvent
Hydrocarbon SolventHydrocarbon Solvent ManagementManagement
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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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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)
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Benefits I 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 IIBenefits 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)
Collected Solvent Waste 5 % of total generated waste 20-25 % of total solvent waste
generated (Based on data colleted from monitoring
Reduction of Cleaning Cost per
Vehicle 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)
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 barrel Zero per barrel
Volatile Organic Compounds (VOCs)
Emissions, measured as Toluene 100 ppm (Meets the Egyptian environmental Law limit in workplace )
40 ppm
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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