atec biodigesters international...typical households income: atec targetsfarminghouseholdswho aspire...
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ATEC* Biodigesters InternationalFebruary 2017
TheProblem- Social
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Inefficientdailytasksforwomenplaceshugeburdenontheeconomicsituationofthehousehold
1.5days/monthspenton
collectingwood
3hours/dayspentonhouseholdchoresdueto
inefficientcooking
Bottledgascostsanaverage$274/year
Source: Shujog’s impact assessment interviews
Economic & time burden on households• The households in rural communities have to spendtime collecting wood in the forest, which is illegal andunsustainable
• More time also has to be spent on cleaning the potsand clearing the ashes from wood fuel
• Wood is also an inefficient medium for cooking, whichgenerates smokeand is harmful to the family
• Prices of wood have increased on an average of 10%per year over the last five years
Traditionalcookingmethodscreatehealth-relatedissueswithinfamilies
TheProblem- Environment
85%ofCambodianwoodconsumptionisusedfordomesticcooking.Themajorityofthiswoodcomesfromunsustainableillegal logging,translatingtosignificantpressureontheforestinCambodia.
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Source: GERES, Harnessing Biomass Energy in Cambodia, 17 September 2015
Woodfuel ConsumptioninCambodia
Growingpressureonforestmountsasthereisnoeffectivesolutionforcleancookingforhouseholds,leadingtodepletionofforest.
DomesticCooking,85%
BrickManufacturing,
4%
GarmentFactories,7%
OtherCommercialUses,4%
Traditionalcookingmethodsalsotranslatesintoenvironmentaldegradation
TheSolution
• A biodigester is a simple system that collects and treats manure,human, kitchen and green waste and effectively converts this intothe valuable resources of biogas and organic fertiliser for future use.
• ATEC biodigester is the first biodigester globally that can be installedin high groundwater and flooded areas – conditions which effects anestimated 89% of the target market in Cambodia as well as manyother developing countries.
• Each ATEC biodigester is sold with a twin biogas cookstove and ricecooker.
• Setup is marketed as an aspirational product as an upgrade to theirkitchen, which is a critical sales point to its target customers
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Pioneeringbiodigester systemthatprovidesbothbiogasandfertiliser
VisionandMission
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TheATECVisionFamiliestohaveaccesstoaviablemarketof
appropriate,sustainabletechnologiesthatimprovetheirlivesandincreasesopportunity
TheATECMissionTobea globalleaderinhouseholdbiodigesters
TheProduct
ATEC* has established a new rotor-moulded design that uses export-qualityUV-treated LLDPE plastic with an expected lifespan of 25 years. Manufacturedby H2O Co Ltd in PhnomPenh
Key featuresof the product include:• Renewable biogas forall cooking needs• Renewable organic fertiliser for crops and vegetables, increasing yield by 5-
30%and cut fertilizer expenditure in half• A smoke-free cooking environment, estimated to kill over 14,000
Cambodians per year.• Dimension of 2m high by 1.5mwide, total volume 3.25m3• Flood resistant up to 1.8metres, no cracking in high groundwater• Can be movedand/oron-sold byhousehold as an asset• Estimated 3 tons of carbon abated per unit per year• Up to $6,500 in savings to the user over product lifetime
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TheBiodigestersystemhasevolvedtomeetcustomerrequirements
In a typical Cambodian rural farming family scenario with 2 to 3 livestock, aBiodigester system can provide enough biogas for all daily cooking needs, aswell as high quality organic fertiliser for1.5 hectare of rice.
Efficiency&SavingsofCookingFuel
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EFFICIEN
CY LPG
Butane
Wood
ATEC*
HighcostlongtermUnsafetouse
HighcostlongtermLimitedavailability
Minimaldirectcosttocollectingwoodfuel
Pressureonforests&environment
SignificanttimespenttochopandgatherwoodfuelLoggingisoutlawedinCambodia
Renewable&freegaseverydayOrganicfertiliserCostsavingsofupto$6Kproductlifetime
Economicpressureonhouseholds
Highrecurringexpenditureonpurchasinggas
SAVINGS
ATECbiodigesterishighlyefficientandprovidessignificantcostsavingsforcustomers
TypicalHouseholds
Income: ATEC targets farming households who aspire for more modern cooking facilities and have thefinancial capacity to purchase a biodigester, either directly or through monthly installments. Thesehouseholds earn an average of US$3-10 per day and have enough income or assets to be economicresilient, but are not ‘wealthy’ farmerswho can easily access LPG forcooking.
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Land (Crops): ATEC currently focuses on retailing its biodigesters to small-scale farming households inCambodia. Rural households make up 85% of Cambodian households, with the majority of thesefocusedeither fully or partially on farming.
Livestock: Typical household size for ATEC end-users is approximately 5 people. Each householdusually owns 2-3 livestock (such as cows and pigs) and approximately 1.5 hectare of land that is mainlyused for rice cultivation. Some households also grow vegetables and fruits both for sale and for theirown consumption. Family members often earn additional income by working in garment factories orother manufacturing industries.
TotalCustomers=1,050,000
AspirationalruralfarminghouseholdsareATEC’stargetedcustomers
Identification
Validation
Assessment
Sale
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Installation
Education
Service(3months)
Service(2years)
POST-SALES
Pricing• Upfrontcashpaymentof$550-650inclusiveoftax(provincedependent)• MicrofinanceinpartnershipwithaMicrofinanceInstitutionatworkingoutat$30/monthfor2years.• Retailersofferingin-housefinanceforproducts,similar ratestoMFIsataround$30/monthfor2years.• Repaymentscanbeaccelerated.
PRE-SALES
SalesStrategy&TouchPointsSignificanttouchpointsandeffortgotowardsensuringcustomersatisfaction
ForecastedDistributorsUnitSales
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Households inCambodia(byprovince)
55 55 30 30150 150 85 85 30 30
600 600
350 350175 175
1400 1400
1200 1200
800 800
SiemReap KampongThom
PreyVeng SveyRieng Battambang KampongSpeu
FY17 FY18 FY19 FY20
30
135 135
60 6040
400 400
150 150 135
75 75
Takeo KampongCham
BanteayMeanchey
Kampot KampongChnnang
Pursat Kratie
ATECforecasteddistributorsunitsalesscalingupto13provinces
Partnerships
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ATEChasstrongpartnershipsacrosscriticalareasofoperations
Technical Sales SupplyChain
Progress&Milestones
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Earlystagebiodigester prototypesdevelopedincollaborationwithNGOpartners
ATEC’sbiodigesterunitannouncedtheinauguralwinneroftheGoogleImpactChallenge.
2011-2014
ConductedinitialmarketanalysisandsupplychaindevelopmentinCambodia
2016ATECBiodigestersestablishedasasocialenterpriseinCambodia,withanewpatenteddesignmanufacturedinPhnomPenh.
250unitssoldbyFeb2017,average40units/month
2014
2015
Strongfoundationalprogressachieved
2017
Targetof4,000unitsperyear(330units/month)2019
Scalingup
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Indonesia– 250mpopulation• 16kunitsinstalledpresently• Alreadysuppliedsmallscale
salestoRumah Energi.
Myanmar– 53.3mpopulationNocurrentbiodigester supplierpresently.
Nepal– 27.8mpopulation• 400kunitsinstalledpresently,but
estimated30%ofunitsaredamaged• Installing45kunits/year
India– 1.25bpopulationTheonlymarketwithextensiveproductdevelopment,with4.5munitsinstalledtodate.
Vietnam– 90mpopulation• 1munitsinstalledpresently• Installing200kunits/year
CambodiahastheopportunitytobethecountrythatshowstherestoftheworldthepotentialATECBiodigestershaveforsustainabledevelopment
InternationalSalesofBiodigestersTherearemanysimilarmarketsthatfacethesameconstraintsasCambodiawherehouseholdsarespendingasignificantamountoftimeandexpensesonnon-renewableenergysourcesforcooking.Additionally,themarketforhigher-margineco-lifestylehouseholdsystemsindevelopedcountriesremainslargelyuntapped.
ATEC biodigesters generate average time savings of 3 hours per day (cooking) and 19
days per year (fuel collection) for each farming household. This additional time is typically used by women for childcare and by men to engage in additional income-generating activities (mainly farming).
ATEC biodigesters enable average annual cost savings of USD 213 per farming household
from avoided expenditure on fuel and fertilizer. These cost savings can be used to upgrade housing conditions and invest in education, healthcare, improved nutrition,
loan repayment and other activities.
ATEC biodigesters reduce exposure of to indoor air pollution by 80%,
enabling members of the households (especially women) to enjoy better
health leading to increased productivity and well-being.
Each farming household experiences an average annual income increase of USD 207 from additional time for
income-generating activities.
Each ATEC biodigester reduces 3 tons of CO2 emissions per year.
Increased crop yield from use of bio-slurry from ATEC biodigesters results
in an average annual income increase of USD 101 per household.
Impactoutcomes
ATECSROISummary
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Company Name: ATECBiodigesters InternationalStatus in Cambodia: Foreign Branch
Year of Registration in Cambodia: 2016Country of Operation: Cambodia
Impact Assessment Conducted by: ShujogImpact Assessment Date: December 2016
MISSIONTo provide sustainable clean energy and livelihood options to rural faming
households.
IMPACT SUMMARYSocial Return on Investment for US$887,000 capital raise is ‘3.69’ (US$3.69
of impact created for every US$1 raised).
ATEC achieves six overarching outcomes:
1. Reduced Exposure to Indoor Air PollutionStakeholder: Farming Household (especially women)
2. Increased Cost Savings (Fertilizers)Stakeholder: Farming Household
3. Increased Cost Savings (Fuel)Stakeholder: Farming Household
4. Increased ProductivityStakeholder: Farming Household
5. Increased Farm ProductivityStakeholder: Farming Household
6. Reduced Carbon EmissionsStakeholder: Environment
ATECgeneratessixpositiveoutcomes,generatingaSROIof3.69
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