Green Kitchen for 6500 Poor Household in Bangladesh

problem 

In Bangladesh,over 90% of Household use wood &traditional stoves for cooking,inhale smoke and subsequently damage their health& environment. Inefficient wood based cooking increase deforestation. They have less access to affordable Clean cooking technology. Rural household women are unaware that traditional stoves contribute to Climate and Air pollution leading to premature mortality deaths &respiratory diseases.

 solution 

6500 families will get access to Green Kitchen Technology through High efficient  cookstove & setup a pellet mill using un-used biomass-waste.300 women entrepreneur &200 technicians will be trained for sensitizing on behavior change campaign to climate mitigation activities. Affordable efficient 5Star stoves &pellet fuel will help to reduce health hazard, save fuel and support to achieve 12SDG Goals.

  solution positively change the lives of people in Bangladesh

PEOPLE DON’T USE FIREWOOD/CHARCOAL.Our biomass pellet fuel is reliant on forestry/agricultural waste and so takes the pressure of logging of trees for firewood .

Around 3-billion people on the planet and 32M households in Bangladesh less access to affordable Clean-cooking technology.Huge biomass waste produced in-rural Bangladesh create unhealthy environment and burn inefficiently in household mainly-for-cooking.Rural household women are unaware that traditional stoves contribute to Climate and indoor-Air pollution(IAP) leading to premature mortality deaths&respiratory diseases.  

 About 90%people are affected with various problems.So the practice is very important forall people.Yearly-140K Mother&child Died By IAP.

In2012,Government Bangladesh Developed and in 2013approved Country Action Plan(CAP)for Clean Cooking.It identifies key barriers to the large-scale adoption of clean cookstoves and fuels.The target of  CAP isto disseminate cookstoves to over 32m households inBangladesh by2030. 

In 2015,Government Bangladesh Established Household Energy Platform(HEP-BD)Supported by GIZ&GACC(UN)for Developing a coordination mechanism to-ensure sector players  andfacilitators are working towards a-cohesive coordinated strategy and learning from each  other and  able to-advocate for the sector with one unified-voice.

IDCOL-GoB  First phase completed 4M-in2017 and has initiated a new program for dissemination of 5M stoves  by2021. GIZ,Practical Action,CCDB,BCSIR-GoB &private manufactures andNGOs dissemination more then 2M-stoves.

Overall, as a result  Affordable efficient 5Star stoves & pellet fuel will help to reduce health hazard, save fuel and support to achieve 12SDG Goals. Our stove 99%Thermal efficiency.

we envisages setting up  a manufacturing unit clean cooking stoves & Pellet & Briquette Plant .300 women entrepreneur &200 technicians will be trained for sensitizing on behavior change campaign to climate mitigation activities, improving public health & Healthy kitchen  in Bangladesh. Our 5Star Ladies is the distribution channel we rely on to service our households.  

We provide a cost competitive solution to Household,Tea & Hotel/Resutant purchase rice briquettes from wholesale/retailer or directly form the briquettes manufacturer. Purchase cost of rice briquettes ranges from 10 to 14BDT/ Kg. Most of  households and tea seller are using homemade or brick cookstoves and some of them are using improved cook stoves. For Households the monthly consumption of briquettes ranges from 30 to 120kg whereas for tea stall it ranges from 70 to 600kg and for-restaurants 250 to 2400 kg. Most of the consumers were using wood fuel prior to switching to briquettes which are more reliable, less smoky, easier store and to transport compared to wood. Moreover, briquettes are available round the year.

Besides the use of Pellet in commercial boilers more economical than conventional fuel (coal/oil).This application may cover textile,lather,pharma,foodindustry and cancreate a colossal-demand for-Pellet to  large extent .

My solution is to introduce totally new format of Social work practice in our community. We envisage enabling community of Bangladesh by encouraging the use of green cooking solution, capable of protection for  poverty,health, environment and food security.The project is design a thoughtful planning   with national targets to scale up the use of energy saving cook stove. Many of the lessons will be explicable & contribute to the country’s development objectives while enhancing community resilience to climate change and avoiding greenhouse gas emissions from household energy sector.The project serves as a safety net and behavioral.Affordable efficient 5 Star stoves & pellet fuel will help to reduce health hazard, save 60% fuel, Time , money &  Earth and support to the Government of  Bangladesh to achieve 12SDG Goals.

The cost of fuel on the pellet is 40 percent less than all other fuel and the risk is free. People's interest in petals and briquettes,fuel and ovens are increasing day by day. 80% of the usual tea shops are using normal briquettes which are not clean fuels

5 Star Stoves Bangladesh (5SSBD) is the first clean cooking solution that has mapped   the entire value chain into a single business model as a local women (5Star ladies) franchise (Entrepreneurs).5SS-BD Design TLUD micro Gasification Stove (Tier-4) for Pellet fuel from un used biomass solid wastage   and ML Lining Insulation Stoves ( tier-3) Technology supported by BUET& IDCOL .5SSBD works  for -Protecting maternal health  and reducing environment pollution ,Global  greenhouse gas & CO2 emissions continue their upward trend .  

Our model is to get the best technology in the household and then to sell improved fuels (pellets) to them as fuel for the stove. Providing a clean and cost effective solution for the household and positive financial returns for the business and our investor.

We have developed our own biomass value chain approach to address the energy needs of people living.   People are spending their money on unhealthy cooking devices and fuels.  

We have already established distribution network for their Stove market/ boiler market and some shall be exploited for selling pellets. Distribution network includes either own market representatives or whole seller /retailers  and network of NGO’s already working on cook-stove program

5 Star Stoves Bangladesh ( 5SSBD) awarded and working  with IDCOL , HEP BD  , SREDA , CCEB-USAID ,  5 Star Stoves Captown , E4ALL , SE4ALL , GACC and Startup Bangladesh -2017

5Star Micro Gassification High Effiency CookStove, households will not only save up on time,money, health& earth that would otherwise be spent on collecting wood or long hours of cooking, but will significantly reduce the safety risks associated with firewood collection prepare a meal and has reduced the exposure to respiratory infections.

We envisage enabling rural community of Bangladesh by encouraging the use of green cooking solution, capable of providing protection for health, environment and food security

To Promote Energy for all forever and affordable Clean cooking solution for rural people through women enterprise development

To provide thermal clean energy for clean cooking & ensure IAP free cooking environment for rural people which is cost effective enterprising and contributes to a safer living environment

 Such coping mechanisms can have serious consequences including malnutrition and loss of livelihood opportunities, and is a risk to personal safety and dignity.

In CHAR Area of Raipura  & Sadar Upazila of Narshing &Sadar upazila of Satkhira ,  

The stove consists of an 8-litre stainless steel pot and a heat-retaining device known as the Wonderbox that enables cooking with very small amounts of fuel-wood, hence a significant reduction of emissions to the environment. The stove aims to save up to 80% of the firewood consumption used in the preparation of a single meal.

The project is design and developed base on ambitious vision and thoughtful planning and engagement with the local communities and stakeholders to develop a roadmap with national targets to scale up the use of energy saving cook stove. Many of the lessons will be replicable in other geographical rural regions of the Bangladesh. Project will contribute to the country’s Action Plan ( CAP) while enhancing community resilience to climate change and avoiding greenhouse gas emissions from household energy sector

Sustainable energy solution that generates and delivers household energy to the local communities cover their living and comfort needs. The project has address and solves many development challenges. Advancing employment in local communities reducing rural urban migration among people, it also helps promote sustainable economic growth (SDG 8). Increasing the share of local energy sources will also contribute to combat climate change and its impacts (SDG 13). Universal access to clean cooking is the key to improving the health and well-being of people (SDG4) poverty alleviation (SDG2) and education (SDG3). The positive  impact of such demand‐driven household energy systems on local communities goes beyond the delivery of energy services and providing universal access to modern, affordable, reliable clean cook stove contribute to (SDG 7).

• 1. the current number of people you’re serving =75750 Household past years

• 2. the number you’ll be serving in one year = 10000-25000 yearly 

• 3. the number you’ll be serving in five years = 425000 stoves next fivers

 5StarStoves BD aims To Promote Energy for all forever and affordable Clean cooking solution for rural people through women enterprise development. To provide thermal clean energy for clean cooking & ensure IAP free cooking environment for rural people which is cost effective  and contributes to a safer living environment .

5StarStoves BD setup Goal for next year : Sufficient access to 75000HH (25000 TLUD stoves & 50000 ML insulation CC Stoves) Clean cooking solutions and household lightings at 10upazilas (Haors,costal) under 7districts and one pellet mills at Habiganj in Bangladesh

The proposal envisages setting up of a new industrial unit for manufacturing clean cooking stoves, Pellet & Briquette  at Lakhpur , Amlabo, Belabo under Narsingdi district. The project has been designed on the basis of 100-ton Pellet and 80ton Briguette per day and 36000 ton per year  and 75,000 unite of stoves   350 working days/year

5StarStoves BD setup Goal for next 5 year::

Stoves Manufacturing  & installed :75000x5=375000

Pellet Production & supply =35000x5=175000 ton

Pellet Production & supply =28000x5=14000 ton

We are aware that we are promoting a new approach to the clean cooking. It is only by changing that you come to different result. Our approach is environmentally sound, by making use of waste industrial, agricultural and forestry biomass, and so takes pressure off the natural forests.

We offer the household the best technology, fully serviced, with additional functionality to charge a mobile phone and run LED lighting for a nominal cost of the power pack

We view the following risks as the most prominent and prepared the following measures to ensure business continuity and risk mitigation measures. Risk

Measure

User adoption

The stove appearance is aspirational and supports a better lifestyle. Training and instruction from trained pellet agents to communicate the value proposition, who are incentivised to sell pellets and maintain the stoves.

Mass implementation planned to create the perception of a new standard being set.

Multiple product options of cell phone charging and LED lighting options, at no additional cost.

Local economy improvement and value proposition communication.

Feedstock and pellet availability

Ensuring that there is always an alternative feedstock available or back-up production plan in place.

Planned capacity at running one shift a day for 250 days per year. Retaining the spare shift to accommodate for a rise in demand or to accommodate growth flexibility.

Collaborating with capacity in the market to support production.

Fuel competitors

Unscrupulous competitors can target the stoves.

The entry threshold is high to manufacture good quality pellets and we collaborate with existing capacity to ensure that we have reserve supply.

The system is a closed loop and the agent can only be paid in the system. The upside it too great to pilfer some pellets on the side and the stoves are fully tracked monitoring pellet consumption per stove and per household.

Counter party risk

Vetting the right team who already have prior clean cookstove experience and looking for a more sustainable business model.

To reduce risk we try and build in as much incentive as possible for our supply chain to ensure that we will be able to manage ourselves out our challenges and that our supply chain is incentivised to deliver at all cost.

Feedstock prices are set at Tk2,500 per ton. We can buffer prices up to Tk3,500 per ton. At this point it is more lucrative to pay for labour to collect biomass from environmental clean-ups.

Pellet sales pricing at Tk17.5 per kg can be reduced down to Tk35 per kg.

The comparative cost environment we operate in is at a floor price for wood at Tk30 per day and a ceiling of LPG at Tk90 per day. With an average daily cost we can target the top end of the wood burning market at a Tk7.50 per day premium or a Tk 52.5 saving from LPG.

Taking 500 stoves out of service would reduce the IRR to 54% from 56% and a 1,000 or 12% stoves down to 52% IRR.

A worst case scenario, where no growth is introduced and should still be achievable over the 5 year timeframe.

All variables are highlighted in yellow in the accompanying excel financial model and can be toggle to test various scenarios.

IVDS & eSheBee Enterprises a renowned social enterprise dedicated to promote technology based women entrepreneurship in Bangladesh and India will provide technical know how for selecting, capacity building and business linkages of 5Star Sisters. 5STAR SISTERS take the pellets to the last customer mile. They market and service the stoves and make sure pellets are delivered. This is all managed from their mobile tablets. Collection of biomass feedstock around the sites opens up enterprising opportunities for local collectors or harvesters. The customer buys and pays for pellets via 5 Star Sister’s mobile phone. We have a fleet of delivery vehicles supporting the delivery of the pellets from the densification plant to the agent hubs and households. We use our backend system to performance manage the business and identify unproductive stoves and underperforming agents. It is managed out in line with the contractual stove user agreement. Our IT backend links the entire organization with the payments from the customers into orders and eventual deliveries and payments to the 5 Star Sisters. This allows us to identify issues early on a move quickly on corrective actions

Management

Our Board ofManagement and Advisory-Committee include eminent people who,as independent appointees,actively participate in the activities with the local community.

BOARD OF Management: SMM Kamal Bhuiyan,Founder  and Chairperson,Mushraat Jahan Fahmida-Co-Founder andManaging Director , Farzana Mofiz-Member,Iqbal Hossan-Member,Tanvir Hossain-Member   

ADVISORY COMMITTEE: D.Prof.MA Sattar,Mr.Zahhirul Islam &Meherun Nessa

MANAGEMENT COMMITTEE:The committee meets monthly to review policies and take major decisions affecting the project’s operations.  

PROJECT MANAGER:Architect  Ms Mushraat Jahan Fahmida, the Project Director.He is  full-time worker overseeing the whole project.All members of the Management Committee and the core project team are full-time volunteers.

 Full-Time Staff =13

Part-Time =27

Volunteering=41 

• We believe that our  skills, background, and experiences that mine and our team have that uniquely position  to deliver the solution and solve the problem

Name                              Designation        Qualification              Experience
SMM Kamal Buiyan           Chairman           BSc.SE & MBA              22Years  
Musraat Jahan Fahmida    MD/CEO          Architect & CDD            10Years  
Tanvir Hassan               AD Technical         MSc in EEE                  10Years
Sabikunnahar          AD Finance &admin     M.COM & ACA             5 Years 
Ms Farzana Akter   Manager (Marketing )       MSS                        15Years  
MS Monira Akter    Manager Pellet Plants   Mechanical Eng.          7years 
Chittra Akter      Manager Briquette Plants  Mechanical Eng.      6years 
MS Monira Akter Manager Stoves Plant  s     EEE . Engineer       5years of exp

The proposed Social Business project will be implemented in collaboration with Five Star Stoves-Bangladesh (FSSB), a private enterprise run by valid trade license; Integrated Village Development Society (IVDS) a non-profit organization registered under Department of Social Services and NGO Affairs Bureau. Owner of Five Star Stove Technology FSSB will lead the project. As an eligible entity IVDS will receive grants/donation from donor agencies. As a pioneer of Women Entrepreneurship model development, eSheBee 5 s t a r Stov e s Bangl adesh -Spa r k Bos si ne s s Plan 1 6 Enterprises & Five Star Stoves Cap will provide advisory services to the project in terms of women entrepreneurship and Willem the strategy, technical, IT and oversight of the business development according to its contribution. We aim to create women entrepreneurship based business model called 5 Star Ladies, which will enable poor rural women to start their own business. We will support those women entrepreneurs with our adequate products supply, IT backend to build their capacity. Note: 5 Star Stoves is a separate entity from IVDS and run as a social enterprise

We are considered as the pioneer for ESCO cooking by E4ALL. As an energy service company we offer an expensive stove at a discounted cost and recoup the cost of the stove from a premium levied on the sale of the fuel. We require a 3 year commitment to repay the stove and investment in the service. From the deposit the sales agent is paid a commission and then ongoing commission for the sale of pellets. This ensures that the customer service is incentivized and there is a decent sales incentive to mobilize a new value chain or distribution channel.

  5 Star Ladies is the distribution channel we rely on to service our households. This is done from a mobile device. Once a 5 Star Lady recruits a household it offers an on-going revenue opportunity as she receives commission for the sales of the cooking unit and ongoing revenue for the sale of fuel pellets to the household.  . Our target price point is to provide a competitive cost to cook for the bottom of the LPG market, some kerosene and the top end of the wood burning market.

ESCO businesses are unfortunately capital intensive to set up and require scale to execute.    which reduces the capital ask. It allows us to change our current business model from manufacturing and sales of stoves only model to a more sustainable model of recurring revenue from the sales of pellets in a higher value market

Proposed Projects  : Assumption for financial analysis .

The capacity utilization have been assumed at 65%, 70%, 75%, 80% & 85% for the  year      2020,   2021, 2022, 2023 &  2024 

Cost of Production:                                                     BD TK in Lacs . 

Particulars                                        Yr-1      Yr-2       Yr-3       Yr-4        Yr-5 

                                            100%     65%       75%         80%        85%       90% RawMaterials : pellet-7t*20h*350dx5000tk/t

 +Briquette-6t*20h*350dx

4000tk/t+Stoves -tk2000x75250-stoves/year                                             Packing Materials

  Salary &Wages  Utilities

Depreciation                                           Incentives & Other Expenses 

Total  BDT in Lacs        6591      4284      4943      5273      5603     5932

Sales Estimates and Sales Value :                                BDT in Lacs 

Products 

100% Capacit ( qty in ton)

                                                            Sale Value  BDT in Lacs

                            Total Sales 100%   Yr-1        Yr-2      Yr-3      Yr-4      Yr-5 

                                                        65%          75%        80%      85%      90>#/p###

Pellet-

38500ton*14000tk/ton

  Briquette -

28000ton*10000 tk/ton Stoves -

75000stoves*3000 tk/stove

 Total BDT in  lacs     10440    6786     7830     8352     8874     9396

IncomeStatement                                                                  TK in Lac   Description                         Yr-1        Yr-2          Yr-3          Yr-4          Yr-5     Sales                               6786        7830         8352          8874         9396 Cost of production               4265        4921         5249          5577         5905 GrossProfit                          2520        2908         3102         3296          3490 OperatingCosts                    743          815           861           908            955 

EBITDA                                1777          2092        2241         2388          2535 Depreciation Expenses         213           213          213           213             213 

EBIT                                   1564         1879         2027         2174           2321 Interest Cost(9%)                 304             259         211          163             114 Profit BeforeTax                 1259          1620        1816         2011           2207 Tax-15%                             176            185          222           259             297 

Profit afterTax                  1083        1434         1594           1752           1909 Dividend-20%                      216          286          318             350            381 

Retained Earnings                866          1147        1275          1401          1527 BondProduces                      162           184         215            250            306 

NetProfit in BDT                 1083         1434        1594          1752          1909

NetProfit in  USD      1289285  1706460  1896860  2084880     2271710

USD = 84 BDT

To solve the my problems of my country applying to the Tiger Challenge

We started working with ModernStove and Biomass Clean Fuel from un-used biomass wastes at2013.

At development Phase  We discussed some banks including Bangladesh Bank , IDCOL –GoB and  donor agency PracticalAction, Muslim Aid,GIZ,CCEB-USAiD  but no one agreed with the newtechnology.

In 2015, SREDA –MoE GoB and GACC-UN have taken initiatives to promote the nationwide implementation of stove and clean fuel projects and campaign everywhere.

We have taken initiatives to camping and exhibitions in different parts of the country. We provide a number of gratification stoves and biomass clean fuel for use within the Pellet and Briquette Some Families. The public interest is aroused.

In 2015, we have participated Startupfund arranged by E4ALL (ADB)& Asia Clean Energy Forum (ACEF) at Singapore  and  we won the 1st  Runner-ups prize. ADB agreed to fund $ 5m in our project, but we could not succeed by trying 2 years for the complexity of the government's task and VAT rules and regulations. Because initially we had to import stoves and fuel.

We are striving to implement our latest advanced stove and biomass clean fuel project in the the country at small scale. To start our project, we need the support of a courageous fundraiser.

We hope and believe that  Tiger Challenge is skilled courageous fundraiser and help us our Challenging & more sustainable project for good reason. we can solve these challenges  through Tiger Challenge TEAM Skill & Experience .

In future I will select them.

We are looking for investment of $5M. This to set up pellet densification capacity, the cost for 21,000 micro gasification stoves and operational expenditure to manage to a positive cashflow.

Our base investment has been completed and the business has access to its own stove designs and tooling to fabricate the combustion chambers. 5 Star Stoves has 2 stove types approved for the IDCOL program and has an all-round tier 4 stove ready post development for commercialization for the next commercial scale production run of stoves. We have aligned ourselves with IDCOL and ADB’s E4ALL program.

We are looking to E4ALL and World Bank  for our first round of SEED funding to commence business complementary to the current IDCOL stoves programme.