SCALING UP BIOGAS DEVELOPMENT FROM SMALL-SCALE HOUSEHOLD PROGRAMS TO LARGE SCALE COMMERCIAL PROJECTS - 20 TH JULY 2017
Who are we – an overview of REHAU As a polymer specialist REHAU is a leading supplier in the divisions of: CONSTRUCTION AUTOMOTIVE INDUSTRY Key topics: Key topics: Key topics: Product and design Energy efficiency, water Lightweight construction, solutions for the furniture industry, management, infrastructure and alternative drive concepts and new developments for the hose, profile renewable energies. mobility approaches. and domestic appliance sectors. 2017-20-07 / Ernst-Otto Zippel / Scaling up biogas development from small-scale household programs to large scale commercial projects / 2
Close to the customer Rehau REHAU locations around the world Gshel Ross on Wye Vancouver Montreal Morhange Taicang Dubai Leesburg Gyoer Poona Muri Cullman Erlangen Celaya Neulengbach near Vienna Singapore Jakarta Port Elizabeth Melbourne Buenos Aires
Who are we – an overview of REHAU Achieve more together About 20,000 employees worldwide Over 170 locations worldwide Europe: about 12,000 employees Germany: about 8,000 employees More than 650 trainees in Germany Training rate: 8 percent 19 apprenticeships 2017-20-07 / Ernst-Otto Zippel / Scaling up biogas development from small-scale household programs to large scale commercial projects / 4
Where do we come from at the Biogas-sector REHAU AND BIOGAS Sample-Project: Bio-Energiezentrum Hochfranken Biomass: 30.000 to p.a. organic waste Elec. Power: 19.500 MWh Total local renewable energy ratio: approx. 40% 2017-20-07 / Ernst-Otto Zippel / Scaling up biogas development from small-scale household programs to large scale commercial projects /
What drives us IMPULSE – EXISTING PROBLEMS - Cooking with open fire Time for collecting firewood (mainly children, females) exhaust fumes, fuel is expensive 4 million prematurely deaths due to cooking with firewood per year (source:WHO) High CO 2 and methan emission Respiratory and eye-diseases - Deforestation long way to collect firewood soil erosion → loss of soil fertility less rainfall and loss of local climate regulation 2017-20-07 / Ernst-Otto Zippel / Scaling up biogas development from small-scale household programs to large scale commercial projects / 7
How we identify the demand of the target group in rural areas INITIATION Workshop with adolescents from the countryside → What could improve their situation? → Solution: Biogas for cooking - improves health condition - erases collecting firewood → time for education 2017-20-07 / Ernst-Otto Zippel / Scaling up biogas development from small-scale household programs to large scale commercial projects / 8
What was the existing technique Identification of the Kenyan and German Partners PPP with Agroscience / REHAU co-financed by DEG Our Partner JKUAT has been found through the GWP and its Africa Forum Big advantages of JKUAT are: Technical Knowledge Well-known in Kenya Industrial Partner Old REHAU Partner High technical and commercial competence 2017-20-07 / Ernst-Otto Zippel / Scaling up biogas development from small-scale household programs to large scale commercial projects / 9
What are the guidelines for our product development? SURROUNDING CONDITIONS Product - Customer expense not over the value of 1-2 cows - Easy installation and handling - Transportable on available means of transport (Matatu / Boda-Boda) - Moveable / Bankable construction Market - Tapping new market - Focusing in the beginning on Kenya - Produce locally, German Engineering, use local sales - Lead user important for mouth to mouth propaganda - Later upgrade with higher quality REHAU products - Local REHAU staff 2017-20-07 / Ernst-Otto Zippel / Scaling up biogas development from small-scale household programs to large scale commercial projects / 10
Who could be a potential customer REPRESENTATIVE FARMER - Kenya is affected by subsistence agriculture . At first the farmers (smallholders) produce mainly for own needs. If possible as well for sales (e.g. coffee, milk, tea, sugar cane). The first three products are produced in the Kenyan high plateau. We will focus on this area in the beginning. - In the agriculture sector are existing networks and organisations usable (COOP´s e.g. KCC, CAK, KWFT). - Kenyan population : 46 Mio. Rural population: 74,6 % → 34 Mio (source: world fact book) - Population of smallholders: 15,9 Mio (source: UN food and agriculture organization dtd 2015) - Family size rural population: 5 – 6 people - Market potential: approx. 3,2 Mio smallholders (nationally 4,3 Mio farms) (source: UN food and agriculture organization dtd 2015) 2017-06-08 / Ingo von Ramdohr / Frugal Innovation Network - Industry Perspectives / 11
The way at which ideas learn to walk FIRST PROTOTYPES - Collecting experience through testing the product Arising problems: - Climatic influences - Termites attack - Difficult digging - Glueing vs. welding → modify the product to local conditions 2017-20-07 / Ernst-Otto Zippel / Scaling up biogas development from small-scale household programs to large scale commercial projects / 12
The first touchdown GERMAN IDEA AWARD 2014 The microbiogasplant ‘REHAU HomeGas ’ from the polymer specialist REHAU was granted the german idea award 2014 in the category ‘environment - idea’. The award which was initiated by the german institute for managerial-economics (DIB) in 2011 is since then yearly conferred. It is dedicated to the guidelines innovation, creativity and responsibility. In the laudation it was said that the microbiogasplant persuades amongst others with its social-cultural- as well as its ecological overvalue. 2017-20-07 / Ernst-Otto Zippel / Scaling up biogas development from small-scale household programs to large scale commercial projects / 13
Long way to get everything together Version 2.0 2017-20-07 / Ernst-Otto Zippel / Scaling up biogas development from small-scale household programs to large scale commercial projects / 14
Catch the low hanging fruits FOCUSING ON TARGETGROUP ORGANIZIED MILK FARMER Kenyan smallholders: 3.200.000 (nationally 4,3 Mio farms) Dairy farming => 4,5% of national GDP, production: 5,2 Billion ltr/a (2014) -> 12 Billion ltr/a (2030), consumption: 4 Billion ltr/a (2014) -> 11 Billion ltr/a (2030) Smallholder milk farmers: 1.800.000 -> 3.500.000 dairy cattle Organized milk farmers: < 300.000 (Coop´s e.g. KCC, Brookside) KCC milk farmers: 60.000 (2-3 milk cows, regularly dairy business, regularly income, access to micro financing system) 2017-20-07 / Ernst-Otto Zippel / Scaling up biogas development from small-scale household programs to large scale commercial projects / 15
Check the amortisation of REHAU HOMEGAS CALCULATION FOR AN AVERAGE FAMILY REHAU HOMEGAS: 58.000 KES Expenses for charcoal/firewood: 1.700 KES/month for fertilizer: 3.000 KES/month 4.700 KES/month Mais Pflanzenwachstum 58.000 / 4.700 = 12,3 months => 1,0 years Mit mineral. Dünder mit org. Dünger ohne Dünger mit Kuhdung 2017-20-07 / Ernst-Otto Zippel / Scaling up biogas development from small-scale household programs to large scale commercial projects / 16
How to create a win-win situations for all AGRICULTURE PROGRAM: „BETTER MY DAIRY FARM“ In Cooperation with: Now: Now: 2-3 cows, 5 ltr/cow x day, 15 ltr/day 2-3 cows, 5 ltr/cow x day, 15 ltr/day 10x 4.500 ltr/year => 2.250 € /year 4.500 ltr/year => 2.250 € /year 3x Target – Phase 2: Target – Phase 1: 10 cows, 15 ltr/cow x day, 150 ltr/day 2-3 cows, 15 ltr/cow x day, 45 ltr/day 45.000 ltr/year => 22.500 € /year 13.500 ltr/year => 6.750 € /year 2017-20-07 / Ernst-Otto Zippel / Scaling up biogas development from small-scale household programs to large scale commercial projects / 17
How we organize the business 2017-20-07 / Ernst-Otto Zippel / Scaling up biogas development from small-scale household programs to large scale commercial projects / 18
How we make people talk about it MARKETING CAMPAGNE - New logo for REHAU HOMEGAS - New web-page www.REHAUHOMEGAS.com - Videos for web-page and YouTube -> image, fertilizer, cooking - Broschures for 2 target groups: farmer, urban family supporter - Establishing REHAU HOMEGAS hotline - Billboards in Nairobi - Fence billboard for each installed unit „RHG inside “ - Polo-Shirts for farm manager, installer, REHAU partner - T-Shirts for SmartFarmer (Swahili: Mkulima Smart) - Branded backpack for farm manager und installer (motorbike) - Presentation - “ flipchart “ DIN A3 for farm manager - Kick-off event management KCC - Training events for know-how transfer of 200 farm manager - Training events for installers (REHAU partner) - Opening ceremony after successful product launch (Press, TV, Politics) 2017-20-07 / Ernst-Otto Zippel / Scaling up biogas development from small-scale household programs to large scale commercial projects / 19
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