ECOWORK by Ichthion

Globally we generate approximately 260Mt of plastic per year and 8Mt of mismanaged waste, most of which is plastic, ends up in the world's oceans. According to WorldBank reports, middle to low income countries tend to have the highest per capita mismanaged plastic rates, which is the case of LATAM—responsible for generating 19Mt tons of plastic waste/year. Ecuador in particular is the second country that mismanages waste (30%) in the region.

We propose to reduce plastic-waste by repurposing the plastic that is recovered from river basins, and other high-density plastic waste recovered from other sources, into plastic wood. The pilot application of this solution is focused on the Guayllabamba basin, which feeds Quito and is a Pacific tributary. 

This is an inclusive venture that links technology with social programs, to integrate vulnerable groups into the innovation paradigm, so that base recyclers can learn new skills that enable them to get higher incomes within the waste-management sector.

Quito has 2´781.641 inhabitants (20% of the national population) generating approximately 0,86kg of waste per day. Waste-management is a municipal task, and based on academic analyses we know that approximately 15% of solid waste is mismanaged, which ends up leaking into rivers via direct disposal or via ravine landslides, and travels towards the Pacific Ocean. Furthermore, barely 4.5% of all waste is recycled, focusing mainly on PET plastic.

The direct effects of plastic pollution in rivers and mismanaged waste is presently bared by Quito and Esmeraldas (3'425.295 people), however, the indirect effects extend to the marine ecosystems, namely to the Galapagos Islands, one of the most biodiverse places in the world, and once it reaches the ocean it is transported around the world making it a global problem. 

In addition to plastic and other solids that leak into rivers, the low recycling rates are linked to low levels of source separation (barely 15%), which adds to the problem of adequately managing landfills. Most industries that recycle plastics as part of their value chain find local prices too high given that base-recyclers are their main supplier and they are unable to reach high volumes of separation.

In the LATAM&C region there are approximately 4million people who base their livelihoods on recycling solid residue, mainly plastic. In Ecuador, there are about 20thousand people working as base recyclers mainly in urban areas. According to a base line analysis developed by IDB (2015), the demand for recyclable raw material is approximately 600 thousand tons/year, and supply is little over 408 thousand tons/year, which means that the deficit borders 34% of what is required. Furthermore, the price per ton of raw material varies between $285-$300dollars with a profit margin of about 30% (0,30 cents on the dollar per kg). Base recyclers work under some of the harshest social conditions, and without the proper tools and safety. 

We are currently working with base recyclers through an alliance with AVINA and the National Recyclers Federation, in the framework of their Inclusive Recycling program. The common goal is to co-develop the enabling conditions for a joint venture to repurpose plastic extracted from river basins with Ichthion’s Azure technology. EcoWork was created to set-up a replicable pilot-project that allows recyclers to obtain higher volumes of raw material, under improved working conditions, and develop a technology transfer program for repurposing discarded plastic into plastic wood.

EcoWork is a scalable project, within Ichthion’s LATAM division, that aims to reduce plastic waste by reintroducing the plastic that is recovered from river basins, with our AZURE technology, as well as other high-density plastic waste recovered from other sources, into plastic wood. The specific pilot application we propose for this challenge is focused on the Guayllabamba river basin, which feeds Quito and is a Pacific tributary. We have identified four key components for this initiative:

1. Developing the enabling conditions (political, technical and social).

2. Setting up a plastic repurposing venture 

3. Implementing a pilot project

4. Community outreach and technology transfer 

The first component is currently underway. We have an agreement with the local government so that we have access to raw materials from their waste management system, and their data so that we can stabilize a mix for the prototype. Furthermore, EcoWork is collaborating closely to provide policy input in regards to developing and enabling context for recycling industries. 

Regarding the construction of a plastic-repurposing-plant that is linked to the installation of the Azure technology, which has the capacity to extract up to 80tons/day of suspended solids from rivers. We are advancing on an agreement with INTI in Argentina--given their experience implementing Bausano technology and setting up the plant at a local level--for assistance in the preparatory phases, as well as for the technology-transfer program. 

Given that this is an inclusive venture that links the technology we develop at Ichthion with social programs we promote through our Circular Foundation. We are currently working with base recyclers through an alliance with Fundación AVINA and the National Recyclers Federation, in the framework of their Inclusive Recycling program. The common goal is to co-develop a joint venture to repurpose plastic extracted from river basins with Ichthion’s Azure technology. EcoWork aims to set-up a pilot-project that allows base recyclers to obtain higher volumes of raw-material and develop a technology transfer program for repurposing discarded plastic into plastic wood. 

During this year we will work towards funding the installation of the plant, as well as with one of the local construction firms to employ the final product in a sustainable building project. And working with the waste management stakeholders to improve their capacities for source separation, providing input for public policy, and improving capacities of at least 1000 base-recyclers so that they are able to increase their gains from optimizing the plastic repurposing system.

EcoWork’s solution is innovative from a three-fold perspective:

1. Optimizing resources in the process of extracting plastic from rivers and repurposing it as raw material. Azure, which is an original development of Ichthion, is a brand-new technology that extracts plastic at high volumes (up to 80tons/day) from river basins. The technology design allows for increasing the amount of plastic collected from 408thousand tons/year from mining, to 730thousand tons/year (based on an 11-river basin implementation of Azure model). Optimizing the operational costs for base recyclers and for the recycling industry, based on economies of scale and time optimization from the capacity of the technology to prefilter the waste with its A.I. system.

2. Setting-up the first repurposing-plant resulting from a private-public alliance in Ecuador. The local government will provide the space for the separation, repurposing and distribution plant and Ichthion will set up the plant, develop a business plan that integrates better work conditions for base recyclers, at the different stages, implement a skill development and a technology transfer program, and define the technology.

3. Improving the product available in the local and regional market. For the plant, we are Implementing one of the best-available-technologies for plastic wood, allowing the venture to supply middle to high income, as well as lower-income population segments, based on accessible prices as well as attractive designs. Thus, creating a product that is lighter and aesthetically better than the products available in the local market and competitive in global markets. 

Ichthion’s technology was designed to tackle plastic-pollution from a country-based perspective, with scalable and replicable components. As a company, we focus on the sources of the problem and the solutions to the existing issues. EcoWork complements our other ventures by focusing on repurposing existing plastic waste and involving the community in the solution from creating awareness, to providing data and assistance for the development of public policy, to developing skills and transferring technology, to promote a circular economy. In Ecuador, we’ll be solving the following specific problems: 

*Component (C), Problem (P), Activity (A), Result (R). 

C1.Developing the enabling conditions

P1.Waste mismanagement leads to plastic pollution in water sources.

A1.Alliances with private and public (P&P) stakeholders to implement a plastic repurposing venture.

R1.Support and involvement from the local government, NGO’s, community and base recyclers (BR).

C2.Setting-up a plastic repurposing venture 

P2.Ecuador recycles only 4.5% of its waste

A2.Developing a plant to separate, repurpose into plastic wood and distribute the end product.

R2.The first repurposing plant from a P&P alliance. Plastic wood to be distributed at a national and international level.

C3.Implementing a pilot project 

P3.Existing product is very dense and the quality is very basic.

A3.Arranging a pilot implementation to showcase the product.

R3.A sustainable building solution that employs our product.

C4.Community outreach and technology transfer

P4.Recycling is very limited and small in scale.

A4.Skill development. Generating and sharing relevant information at a national-level.

R4.National waste separation initiatives. Resource-optimal ventures and better pay for BR.

Ichthion’s technology and projects are designed to be scalable and replicable, not just in the LATAM&C region but also around the world.

The pilot implementation of EcoWork in Quito, is currently estimated to involve and benefit the following population:

Beneficiaries

2017-2019

• Direct: Ichthion staff: 15, University research: 75. Total 90.
• Indirect: Unable to estimate. 

2020

• Direct: Total 3’426.295

Population of Quito and Esmeraldas: 3'425.295

Base Recyclers: 1000

• Indirect: 

Ecuadorian population: 17.3 million

Unable to calculate for the rest of the region at this point.

2025

• Direct: Total 31.7million

Population of the 11 river basins in Ecuador: 14.6million

Population of London: 9.8million

Population of Osaka: 7.3million

• Indirect:

Population of at least the 3 countries implementing technology to clean their rivers from plastic pollution: 199’481.940.

The positive impacts of EcoWork’s application in Quito will be measured in terms of the following areas:

Environmental: The main impact indicator the percentage of plastic waste that is repurposed, aiming for 100% of Quito’s plastic waste being adequately managed and recycled not only through EcoWork’s plastic wood plant, but through other recycling initiatives.

Social: EcoWork’s mission is to eliminate plastic waste by engaging community stakeholders and the general population in recycling initiatives. Consequently we measure social impact in terms of improving working conditions for base recyclers, developing skills and transferring technology, as well as new ventures for improving waste-management or recycling. In this regard we have two main impact indicators, (1) number of base-recyclers increasing their income to at least minimum wage; (2) number of base recyclers who take part of the technology transfer and skill-building program, aiming for at least 1000; and (3) percentage increase in source separation and number of new repurposing ventures.

Economic: Improving waste-management and creating repurposing ventures has important economic benefits, therefore, our 3 main economic impact indicators are (1) reduced costs per ton of plastic raw material, (2) percentage increase in income for base recyclers, (3) reduction in waste management costs for the city. 

So far the main beneficiaries are our staff-members and RENAREC leaders, who are collaborating in the project planning. We look forward to starting the skill building program and plant construction during the last quarter of 2020, and being operative during the first quarter of 2021.

First year:

• Developing and financing EcoWork’s pilot project in Quito, Ecuador.

Next 5 years:

• In Ecuador, we are looking forward to installing at least 9 Azure machines and developing a corresponding local EcoWork's solution for repurposing plastic recovered from river basins. Given that Ecuador is a small country we will strive to incorporate all national Ecowork applications to the plastic wood initiative. However, we understand that each solution will be constructed with local stakeholders. 

• Implementing the Azure technology in London and Osaka. Currently underway. 

• Expanding our operations to LATAM&C with a focus on other countries that are mismanaging their waste, increasing recycling in the region, promoting a circular economy, and supporting the rehabilitation of the Caribbean sea.

First Year

Financial:

• We need to find financing in order to begin components 2, 3 and 4.

Technical:

• There is insufficient and unreliable data relating to waste management.
• The Bausano technology has not been implemented in Ecuador before.

Cultural:

• Source-separation of waste is very uncommon and the city’s waste management system is not equipped for handling source-separated waste.  

Market:

• Currently there is little demand for plastic wood in Ecuador, the market is prone to traditional products.

Next 5 Years

Financial:

• Each EcoWork solution will require seed financing from Ichthion in order to begin operations.

Technical:

• Technology transfer in countries with little to no development of recycling industries.
• Working in countries with little or unreliable data, as many LATAM&C countries are.
• Guaranteeing that the production chain is carbon-efficient, aiming for carbon-neutral.

Legal:

• Working in contexts with no legislation against plastic pollution.

Cultural:

• Prioritizing source-separation campaigns and incentives at a local level.
• Direct correlation between income and waste generation.

Market:

• Not being able to develop a wider market for repurposed plastic products.

Solutions- Next Year 

Financial:

• Access grants and concessional financing sources.  

Technical:

• Once Azure-Quito begins its operations EcoWork will benefit from its data generation.
• Working with INTI and Bausano to develop capabilities in the EcoWork team and local stakeholders to operate the technology.

Cultural:

• Promoting policies, incentives and regulations for local governments so that source-separation goals are set at a national level.

Market:

• Implementing a pilot application that showcases the product in the local market.
• Guaranteeing that the product is price-competitive with other materials.
• Allocating resources for promotional purposes.

Solutions- Next 5 Years

Financial:

• Guaranteeing that each application generates seed-funding for the next.
• Motivating local and regional financial institutions to develop financial products for sustainable cities that include waste-management and recycling.
• Ichthion will apply to GCF and GEF financing for the following 10 Ecoworks applications in Ecuador and other countries that enter the cluster expansion category.

Technical:

• Implementing a technology transfer program that is accessible to local stakeholders.
• Developing data through the Azure installations and making that data available to other stakeholders.
• Mapping out the projects carbon footprint and implementing a carbon neutrality strategy for our operations.

Legal:

• Supporting local and national authorities in developing policies, incentives and regulations.

Cultural

• Investing in source separation of waste campaigns and initiatives.
• Supporting local and national authorities in developing the enabling conditions for circular economies.

Market:

• Guaranteeing that our products are high quality and design.

We have started operations in Quito, Ecuador. Our first implementation will begin with the implementation of Azure in the Guayllabamba river and expand to 10 other tributaries, of the following rivers: the Esmeraldas river (3), the Portoviejo river (1), the Guayas river (2), the Pastaza (2), Jubones (1), and Napo (1). 

Starting October 2019, we began establishing agreements and strategic alliances with local and international stakeholders As of February 2020, we will start implementing Azure-Quito in Guayllabamba. After over 3 months of developing a strategic alliance with the local government. We will begin other negotiations following the initial works with Azure-Quito. 

We look forward to expanding to other countries in the LATAM&C region, focused on fulfilling Ichthion’s mission of eliminating plastic pollution from water sources, through the implementation of the different technologies and associated projects.

Ichthion: 4 full-time implementation staff in Ecuador, and 9 full-time technology development staff in the UK.

Fundacion Circular: 2 full-time staff.

Avina: 2 staff members. Strategic partners.

RENAREC: 10 organization leaders. Strategic partners.

INTI: 1 director. Strategic partners.

Bausano: 1 UK representative. Strategic partners (technology provider).

For three years the Ichthion team has developed technology to face and eliminate plastic pollution in water sources. We currently have one patented solution for river basins, and two on track to be patented, one for eliminating plastic pollution coastal regions and the other at sea. The company also set-up a Foundation (Fundacion Circular) as a vehicle to implement social programs aimed to promote a circular economy. 

The experiences setting up the conditions to implement the technology and the development of the business model brought about a need for supporting the local authorities in repurposing the recovered plastic. That need coupled with the work the Foundation is developing, was the reason we created the EcoWork project. 

Our local multidisciplinary team in Ecuador includes former state officials, entrepreneurs, engineers and international-NGO veterans, that have come together to combat plastic pollution and promote a circular economy. Their combined skills and experiences have helped expedite the P&P alliance with the local government, as well as the strategic alliances with our technical and base organization partners. This is a dream team that is uniquely positioned to make EcoWork a reality. 

Avina: This international NGO leads the Inclusive Recycling Program in Ecuador, working closely with RENAREC. We reached out to them due to their expertize and ongoing work which complements the skill building and technology transfer program we will be implementing. 

Universidad Central del Ecuador: We have a signed agreement with the Biological Sciences Department. We hope to work closely with academia in order to strengthen the circular economy eco-system.  

Imperial College London: Our founders started Ichthion out of the Labs of ICL. We currently have faculty members advising in the board of Ichthion. 

RENAREC: We are working with RENAREC through their partnership with AVINA to include them in the project design and planning process. They are our main partners in the operations of EcoWork and we intend to work closely with them throughout the project and as strategic advisors for future ventures. 

INTI: We have an ongoing exchange with INTI in developing this project. By march we will have signed an agreement with INTI to receive technical support throughout this and perhaps future implementations. 

Bausano: We received a letter of support from Bausano and they are aware of our plans to incorporate their technology into EcoWork-Quito.

• Value proposition: High quality and design products that employ plastic waste as raw material. 

• Customer segmentation: The most environmentally conscious segments are located in the EU, followed by Small Island Developing States, which are acutely aware of the risks of climate change; then North America but only in specific regions and among higher income customers. Unfortunately, LATAM&C is a region with little demand for sustainable products. However, there is growing demand (2% increase in 2019) for discretionary home products, which signals to the importance of quality and aesthetics. 

• Client relationship: Mainly business to business.

• Income flows: EcoWorks is currently receiving its income flow from Ichthion. We are working to find grants and other financing sources to begin implementing the venture. 

• Key resources: Human capital, high-density plastic waste as raw material, wood-waste-chips, Bausano technology, organic waste. 

• Key activities:  (1) Sending a ton of a stable mix of waste matter to INTI as raw material for the development of the prototype, (2) optimizing our cost-structure, (3)calibrating the Bausano technology machinery, (4) constructing the plant, (5) implementing the skill building and technology transfer program, (6) developing the pilot project, (7)beginning of the operations and production. 

• Partner network:  The local municipal government of Quito, the national government--Ministry of the Environment, Ministry of Production, Secretary of Water, Vicepresident’s office, local universities, Imperial College, Bausano, INTI, Advance Foundation Spain, AVINA, RENAREC. 

• Cost-Structure: Our current expenditure areas are the full-time staff dedicated to this endeavor, and the co-creation workshops. 

EcoWork is currently operating as an embedded enterprise within both Ichthion and its Circular Foundation. Ichthion is covering the wage expenses and Circular is covering the engagement activities. 

Once we raise funding for EcoWork it will become an integrated venture between Ichthion and Circular and the business model linking the two organizations will be based on organizational support. 

Each venture should become financially independent after 3-5 years, depending on the implementation time for Azure. Until then, Circular will find mechanisms for financing the venture. Once the venture is financially independent Ichthion will chose to keep or sell its equity shares. 

It's Ichthion's experience that start-ups and innovative enterprises benefit greatly from gaining exposure and engaging with similar projects. We are sure to gain from finding other technologies available that can help us optimize our costs, finding distribution channels for our products and technology, accessing new sources of funding, as well as from the experience of MIT and IDB's experts.

We would like to partner with:

• The IDB to develop financial products for cities with waste-management deficiencies, so that low-income countries can make adequate investments in waste-management, river health, and new value chains that repurpose plastic waste. 
• MIT Sloane School of Management to innovate EcoWork's business model.
• IKEA, due to their climate possitive and sustainable corporate policy. We would like to have their input for our product design.