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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. Ali Abo Sena Chemical Leasing Expert, ENCPC. Chemical Leasing on Cleaning with Hydrocarbon Solvent. Supplier : Dr Badawi Chemical Work User: GM Egypt

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Ali Abo Sena Chemical Leasing Expert, ENCPC

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

  2. 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

  3. 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

  4. Before Chemical Leasing Dr Badawi sells tons of hydrocarbon solvent for cleaning toGM 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

  5. Under Chemical Leasing 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 • 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)

  6. 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

  7. 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

  8. Summary of Results

  9. 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

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