Access to Energy for the Base of the - Ashoka
Access to Energy for the Base of the - Ashoka
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