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5 Sustainable Used Lead Acid Battery Management Solutions for Emerging Economies: Case Study Nepal Brian Wilson Wim Van Breusegem

6 In Association with.. Environmental Resources Management and Kreditanstalt für Wiederaufbau

7 Wim Van Breusegem

8 Nepal - Power Grid Demand: 1,300 MW Capacity: 700 MW Re

9 Nepal - Power Grid Demand: 1,300 MW Capacity: 700 MW Result: Load Shedding Re

10 Load Shedding - Mitigation Inverter Batteries

11 Hydro-Electric Energy Potential: 83,000 MW Viable: 42,000 MW Actual: 600 MW

12 Alternative Energy Promotion Centre

13 Solar Energy Systems Nangi, Nepal: Community Clinic

14 Solar Energy Systems Nangi, Nepal: Community Clinic

15 Alternative Energy Promotion Centre 200,000 Solar Home Systems

16 Alternative Energy Promotion Centre 200,000 Solar Home Systems 200,000+ Lead Acid Batteries Total SHS 700,000+

17 Alternative Energy Promotion Centre 200,000 Solar Home Systems 200,000+ Lead Acid Batteries Total SHS 700,000+

18 Sustainable Recycling Current Situation for the Recycling of 1. All are drained of Electrolyte prior to export 2. All Exported to India for recycling 3. Basel Convention PIC procedure is not observed

19 What happens to exported to India? Bihar - India

20 What happens to exported to India? Bihar - India

21 Sustainable Recycling Current Situation for the Recycling of 1. All are drained of Electrolyte prior to export 2. All Exported to India for recycling 3. Basel Convention PIC procedure is not observed 4. Nepal and India have ratified the Basel Convention 5. Neither party follow the BC Technical Guidelines 6. Therefore all exports are illegal under BC

22 Sustainable Recycling 2 Options for the Sustainable ESM of 1. Export of the to India for recycling 2. Domestic Recycling

23 Sustainable Recycling 2 Options for the Sustainable ESM of 1. Export of the to India for recycling Legally only Battery Plates can be imported to India Dispensation permitted if are drained No guarantee of ESM of the recycling No prospect of BC Enabling Legislation in Nepal 2. Domestic Recycling No Secondary Lead Smelter Doubtful whether a SLS can be profitable

24 Sustainable Recycling 2 Options for the Sustainable ESM of 1. Export of the to India for recycling Legally only Battery Plates can be imported to India Dispensation permitted if are drained No guarantee of ESM of the recycling No prospect of BC Enabling Legislation in Nepal 2. Domestic Recycling Sustainable Secondary Lead Smelter A profitable Secondary Lead Smelter

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28 Ministry of Finance No. Vehicles Year

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30 Sustainable Recycling CATEGORY OF LAB SOLAR 39,718 7,944 AUTOMOTIVE 12,876 5,475 MOTIVE POWER STATIONARY (INDUSTRIAL) 6,776 1,355 BACK-UP (COM., IND. & DOM.) 29,196 9,286 TOTALS METRIC TONS 89,196 24,374

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32 Solar Project: Lungra Health Clinic in Achham

33 Solar Energy Project: Hartford High School

34 Piluwa Khola - Bridge Construction Project

35 Everest Base Camp: Lukla Airport Project

36 Sustainable Recycling CATEGORY OF % Increase/Yr SOLAR 7, AUTOMOTIVE 5, MOTIVE POWER STATIONARY (INDUSTRIAL) 1, BACK-UP (COM., IND. & DOM.) 9, TOTALS METRIC TONS 24,

37 Sustainable Recycling CATEGORY OF SOLAR 7,944 13,360 AUTOMOTIVE 5,475 9,748 MOTIVE POWER STATIONARY (INDUSTRIAL) 1,355 1,496 BACK-UP (COM., IND. & DOM.) 9,286 10,139 TOTALS METRIC TONS 24,374 35,145

38 Sustainable Recycling

39 Sustainable Recycling Criteria for a Sustainable Secondary Lead Smelter in Nepal 1. Health and Safety A safe, hygiene and healthy working environment 2. Environmental Efficient resource use: energy, water, land and reagents Controlled atmospheric emissions to International norms No process effluent discharges to water courses No solid hazardous waste disposal Only saleable products to be produced ESM of the collection system

40 Sustainable Recycling Criteria for a Sustainable Secondary Lead Smelter in Nepal 3. Financial Low cost SLS design and O&M with regard to 1 and 2. Cost effective, optimising resources to max. results 4. Techincal Quality engineered design and equipment Reliable and easy to maintain equipment After sales support and equipment spares

41 Sustainable Recycling Criteria for a Sustainable Secondary Lead Smelter in Nepal 5. Capacity Capacity tailored to recycle all domestic Modular: allows expansion for increase in. 6. Inputs Recycles all types of generated in Nepal Recovers 99% of recyclable material in every

42 Sustainable Recycling Criteria for a Sustainable Secondary Lead Smelter in Nepal 7. Outputs High Quality Saleable Products Refined Lead ingots of 99.97% 99.99% purity Refined Lead Alloys for LAB manufacturing Clean Polypropylene Pellets Building materials to Nepalese standards

43 Sustainable Recycling COLLECTION TRANSPORTATION RECEPTION REFINING SMELTING BREAKING/SAW LEAD DROSS SLAG FUME PLASTIC ACID

44 Recycler Pb Ingots LAB Manufacturers LAB Distribution Network LAB Sales Outlets LAB LAB Reverse Logistics LAB Users LAB

45 LAB Importers Closed Loop Recycler Pb Ingots LAB Manufacturers LAB Importers LAB Distributors LAB Distribution Network LAB Scrap Dealers Independent Collectors Importers & Independent LAB Retailers LAB Reverse Logistics LAB LAB Sales Outlets LAB Users LAB LAB

46 Sustainable Recycling COLLECTION TRANSPORTATION RECEPTION REFINING SMELTING BREAKING/SAW LEAD DROSS SLAG FUME PLASTIC ACID

47 Sustainable Recycling Collection and Transport UN Certified for

48 Sustainable Recycling COLLECTION TRANSPORTATION RECEPTION REFINING SMELTING BREAKING/SAW LEAD DROSS SLAG FUME PLASTIC ACID

49 Option 1. Battery Saw

50 Option 2. Hammer Mill

51 Effluent Treatment Plant

52 Effluent Treatment By-Product Sales Options Sodium Sulfate Gypsum Ammonium Sulfate Glass Making Paper Making Cement Industry Building Materials Fertilizer

53 Sustainable Recycling: Polypropylene Pellets

54 Sustainable Recycling COLLECTION TRANSPORTATION RECEPTION REFINING SMELTING Plates BATTERY SAW LEAD DROSS SLAG FUME PLASTIC ACID Option 1.

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56 Sustainable Recycling COLLECTION TRANSPORTATION RECEPTION FURNACE FURNACE BREAKER PLASTIC ACID

57 Sustainable Recycling COLLECTION TRANSPORTATION RECEPTION GRID MELTING PASTE SMELTING BREAKER SLAG FUME PLASTIC ACID Option 2.

58 Sustainable Recycling COLLECTION TRANSPORTATION RECEPTION GRID ALLOYS PURE LEAD GRID MELTING PASTE SMELTING BREAKER DROSS SLAG FUME PLASTIC ACID LEAD ALLOY INGOTS PURE LEAD INGOTS Option 2.

59 Sustainable Recycling: Refining Brazil

60 Sustainable Recycling

61 Sustainable Recycling Twin Furnace Operation: Energy Saving up to 35% COLLECTION TRANSPORTATION RECEPTION GRID ALLOYS PURE LEAD GRID MELTING PASTE SMELTING BREAKER DROSS SLAG FUME PLASTIC ACID LEAD ALLOY INGOTS PURE LEAD INGOTS Option 2.

62 Sustainable Recycling: Automated Charging

63 Sustainable Recycling: Manual De-Drossing Colombia

64 Environmentally Sustainable: Baghouse Brazil

65 Environmentally Sustainable: Baghouse The Economic Argument: Estimated Lead Production = 14,400 mt 2% Loss to the atmosphere = 288 mt Loss at the LME Lead Price = $ 583,200 Brazil

66 Sustainable Recycling Twin Furnace Operation COLLECTION TRANSPORTATION RECEPTION GRID ALLOYS PURE LEAD GRID MELTING PASTE SMELTING BREAKER DROSS SLAG FUME PLASTIC ACID LEAD ALLOY INGOTS PURE LEAD INGOTS

67 Sustainable Recycling Furnace Residue - Hexagonal Paving.. Kathmandu - Relaying the pavement

68 Sustainable Recycling Twin Furnace Operation COLLECTION TRANSPORTATION RECEPTION GRID ALLOYS PURE LEAD GRID MELTING PASTE SMELTING BREAKER DROSS SLAG FUME PLASTIC ACID LEAD ALLOY INGOTS PURE LEAD INGOTS BRICKS & PAVING GYPSUM

69 Paving Slab Machine

70 Brick Paver Machine Tegal, Indonesia

71 Recycling: 1. Can a Lead smelter in Nepal be financially viable?

72 Recycling: Financial Analysis - Assumptions 1. Lead Smelter will not be commissioned until % of available will be recycled = 24,000 mt

73 Recycling: Financial Analysis - Assumptions CATEGORY OF SOLAR 7,944 11,074 AUTOMOTIVE 5,475 7,718 MOTIVE POWER STATIONARY (INDUSTRIAL) 1,355 1,438 BACK-UP (COM., IND. & DOM.) 9,286 9,788 TOTALS METRIC TONS 24,374 30,383 FIRST YEAR 80% 24,306

74 Recycling: Financial Analysis - Assumptions CATEGORY OF SOLAR 7,944 11,074 AUTOMOTIVE 5,475 7,718 MOTIVE POWER STATIONARY (INDUSTRIAL) 1,355 1,438 BACK-UP (COM., IND. & DOM.) 9,286 9,788 TOTALS METRIC TONS 24,374 30,383 FIRST YEAR 80% 24,306

75 Recycling: Financial Analysis - Assumptions 1. Lead Smelter will not be commissioned until % of available will be recycled = 24,000 mt 3. All the tax breaks and import concessions are applied 4. Purchase price for is competitive 5. are delivered with electrolyte 6. All the Lead and by-products produced are sold 7. The Government will not subsidise recycling

76 Recycling: Financial Sustainability Indicators Option 1 Option 2

77 Recycling: Financial Sustainability Indicators Option 1 Option 2 CAPEX Investment ~ $ 3,460,000 4,960,000

78 Recycling: Financial Sustainability Indicators Option 1 Option 2 CAPEX Investment ~ $ Fixed Costs $/Year 3,460, ,000 4,960, ,000

79 Recycling: Financial Sustainability Indicators Option 1 Option 2 CAPEX Investment ~ $ Fixed Costs $/Year Variable costs $/mt of 3,460, , ,960, ,

80 Recycling: Financial Sustainability Indicators Option 1 Option 2 CAPEX Investment ~ $ Fixed Costs $/Year Variable costs $/mt of 3,460, , ,960, , Variable costs $/mt of Lead

81 Recycling: Financial Sustainability Indicators Option 1 Option 2

82 Recycling: Financial Sustainability Indicators Option 1 Option 2 10% Discount rate $ 1,836,193 5,686,275

83 Recycling: Financial Sustainability Indicators Option 1 Option 2 10% Discount rate $ 1,836,193 5,686,275 Internal Rate of Return %

84 Recycling: Financial Sustainability Indicators Option 1 Option 2 10% Discount rate $ 1,836,193 5,686,275 Internal Rate of Return % Payback Period - Years ~ 3.7 ~ 3.7

85 Financial Risks Lower throughput of NPV $ 000 s 6,000 80% of 5,000 4,000 52% of ,000 2,000 1, Option 2 tonnes 000 s

86 Sustainable Recycling Benefits of Domestic Recycling of in Nepal

87 Sustainable Recycling Benefits of Domestic Recycling of in Nepal 1. Economic ~ USD 3.7 M income from 13% VAT on Lead Ingots Additional tax revenues on profits by-product sales Valuable Resources kept in Nepal 2. Environmental No export of environmental contamination to India No more battery acid dumped in Nepal

88 Sustainable Recycling Benefits of Domestic Recycling of in Nepal 3. Legal No more illegal exports of to India Nepalese Scrap Dealers can trade openly 4. Social Creation of Green Jobs in Nepal ~ Commercial Removes reliance on Indian Lead imports

89 Sustainable Recycling Role and Responsibilities of the Government of Nepal

90 Sustainable Recycling Role and Responsibilities of the Government of Nepal Introduce a Policy for Sustainable Management Establish Sustainable Criteria for Smelter Operations Revise the Licensing Procedure ESM conditional Introduce Monitoring and Inspection protocols Set up Information and Public awareness campaigns Ban the export of to India

91 ERM Would Like to Thank. The following suppliers for their assistance with this project:

92 Thank you for your Attention Wim van Breusegem Brian Wilson