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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