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Access to Energy for the Base of the - Ashoka

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40<br />

How did <strong>the</strong> Pro<strong>to</strong>s project start?<br />

Samuel N. Shir<strong>of</strong>f: "It started with <strong>the</strong> rekindling <strong>of</strong> a<br />

friendship between Pr<strong>of</strong>essor Muhlbauyer in Hohenhein<br />

University who created <strong>the</strong> s<strong>to</strong>ve and <strong>the</strong> head <strong>of</strong> our<br />

cooking unit who wanted <strong>to</strong> take on <strong>the</strong> technological<br />

challenge <strong>of</strong> using BSH core capabilities <strong>to</strong> help some <strong>of</strong><br />

<strong>the</strong> world's poorest families".<br />

So BSH saw a business opportunity in it?<br />

Samuel N.Shir<strong>of</strong>f: "The primary added value <strong>for</strong> BSH is<br />

reputational. We use our capacity as a world leader in<br />

home appliances <strong>to</strong> help reduce indoor air pollution,<br />

de<strong>for</strong>estation and climate change in developing countries.<br />

But this must also be economically self-sustaining."<br />

Jatrpha seeds Plant oil production<br />

Project economic viability Project scalability<br />

� Project targets OPEX self-sustainability:<br />

� $35 current manufacturing cost<br />

� $15 market price <strong>to</strong> be achieved by:<br />

– Mass-production, including local manufacturing<br />

(50k unit p.a. opening in Indonesia by Q3 2009)<br />

– Carbon credit financing<br />

� "7 digit" CAPEX funding by BSH: Pro<strong>to</strong>s is a social<br />

business investment <strong>of</strong> which returns will mainly be<br />

in brand reputation<br />

� Ability <strong>to</strong> attract funding from foundations and<br />

development agencies: partnership with 4 German<br />

and European institutions<br />

Project ability <strong>to</strong> solve <strong>the</strong> problem<br />

Samuel N. Shir<strong>of</strong>f, Direc<strong>to</strong>r<br />

Sources: Hystra analysis, Interviews with pro<strong>to</strong>s Direc<strong>to</strong>r; www.bsh-group.com<br />

� >2.5b people are cooking on "three-s<strong>to</strong>ne fire-<br />

place" or kerosene worldwide:<br />

� De<strong>for</strong>estation and pollution<br />

� 1.6m deaths from indoor air pollution p.a.<br />

� Pro<strong>to</strong>s s<strong>to</strong>ve benefits:<br />

� Reduced cooking time<br />

� No <strong>to</strong>xic smoke, 10 times less emissions than<br />

kerosene, neutral CO2 emissions<br />

� High temperature flame (700 °C)<br />

� Value-creation from local plant oil<br />

� Mid-BOP cus<strong>to</strong>mers cooking on purchased<br />

biomass targeted:<br />

� Approximate plant oil <strong>for</strong> 1 month: $6-12<br />

� Plant oil is 20% more expensive than kerosene<br />

but 50% more efficient<br />

� Targeted s<strong>to</strong>ve market price: $15-$30<br />

� Needs addressed: access <strong>to</strong> modern cooking (clean,<br />

ready <strong>to</strong> use, adjustable power output) on biomass<br />

� Sustainability:<br />

� S<strong>to</strong>ve life expectancy: 4-5 years<br />

� Focus where oil plants don't compete with<br />

food crops<br />

★★✩<br />

★★✩ ★★✩<br />

� Market environment: unregulated market <strong>of</strong> cus<strong>to</strong>mers<br />

cooking on purchased biomass or fossil fuels<br />

� Requires availability <strong>of</strong> plant oil:<br />

� Tropical and sub-tropical areas with adequate<br />

plant agriculture targeted<br />

� Suitable countries: Indonesia, The Philippines,<br />

Vietnam, India, Central and Latin America<br />

� Online outreach <strong>to</strong> potential partners:<br />

� Target distribution partner able <strong>to</strong> purchase<br />

s<strong>to</strong>ves, train users and commit <strong>to</strong> communication<br />

guidelines<br />

� 3-5 requests <strong>for</strong> blue print per week

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