Cocarbon: Sustainable Activated Carbon

In Peru, only 54% of the population has 24-hours-per-day access to safely managed water. Almost 9 million Peruvians (27%) have less than 24-hour access to water and more than 3.5 million Peruvians (11%) have no access to safe water at all, relying on unhealthy tankers and wells (INEI Peru, 2023). In addition, it is estimated that due to climate change, 58% of Peruvians will live in a water-scarce area by 2030 (CEPLAN Peru, 2023); although Peru is the 8th country with more fresh water (2%) in the world (ANA Peru, 2023).

We want to change this. We seek to eradicate transportation of water for human consumption in tankers (cost 10 times the city water per cubic meter), as well as the diseases it brings. We want to democratize access to clean water in places with low water quality problems, in cities and in remote areas. Thus, we want to generate more opportunities for the future of the country.

Water purification requires 3 macro steps: flocculation, filtration and disinfection. Normally the filtration process (the most expensive) involves using activated carbon, a filtering material currently made in an unsustainable way (socially and environmentally) and from mineral carbon in some cases.

Our goal is to provide an affordable solution for water purification in remote areas (and in cities), through the production of activated carbon from agricultural waste. While having developed our own supply chain, we reduce costs by 50% compared to imported activated carbon, use solar energy and agricultural waste, recover exhaust gasses (CO2) from our process, and use local labor. Even the end us of the product is to purify liquids and gases, such as CO2 from exhaust gasses.

Our impact on climate relies on the recovering of 9.6 of equivalent CO2 tons (eCO2t) from our process (6 tons per month, 1.6kg of CO2 recovered per kg of activated carbon produced), using 40 tons per month of agricultural waste from coconuts (in our pilot), destinating 30% of profits will to plant endemic trees of the location and raw material species (coconut for example). Our social impact relies in generating income for local families through employment (15 direct and 50 indirect), plus, loans that we offer in certain cases to decarbonize machinery (transform machinery from wood energized to solar).

I've always been passionate to use science and technology to create a sustainable future and reduce inequalities. I founded two companies based on this principle: Orgánica in 2017, with my father and a friend, a company that uses coconut shells to make sustainable BBQ charcoal; and Cocarbon in 2021, my current startup, which uses coconut shells to create activated carbon for water purification.

I've been developing my professional career since 2016 too. Having worked in a pension fund (biggest investment funds in Peru), in an investment bank (top Peruvian investment bank), I discovered my passion for manufacturing, and the power of this industry to help tackle the most important and complex problems of our world. Thus, I moved on to the real sector, first to a mining company and then to a manufacturing company, where I could learn much from what complexities does this kind of companies face. My last job experience was in the environmental fund of Peru, an experience where deploying Impact Investing funds, developing Carbon Credits, Conservation and Sustainability-Linked Projects within manufacturing companies, where my responsabilities.

Through my work experiences, I have developed some skills that help me nowadays to collaborate with industries and make Cocarbon thrive. After four years (2017-2021) of product research and testing with self-funded capital, and conversations with 50+ executives from the industry, plus an alliance with a US-based activated carbon factory; the project is ready to take place in 2023. So the team grew with Daniel Obregon, a MSc in chemistry with a decade of experience in research and development of new materials (analyzing and improving chemical products, and having worked with activated carbon); and Cristina Ratti, an educator with five years of content creation and alliance development expertise; both joined to bolster the project in the chemical technical and commercial line, respectively.

Over the past 4 years, significant milestones mark our journey. We established an exclusive supply chain that allowed raw material collection (the reason why this industry never existed in Peru before), and founded a laboratory to conduct trials on various agricultural waste types to formulate optimal activated carbon. Our artisanal production exceeded 4,000 kg in 2 years, generating approximately PEN 19,000 (USD 5,000) in sales over the last 6 months, even we did this with a prop machine. Strategic distribution partnerships with top-tier international brands (Carbon Activated Corporation - US) to deepen customer insights. Engaged with over 50 executives and operators, and have received potential clients express keen interest, anticipating plant expansion. Notably, two of three members of our team received an MIT Technology Review award for our contributions to the activated carbon field. Furthermore, Cocarbon have won a climate innovators prize from the Ministry of Production of Peru.

The current plan consists of building a pilot plant in the jungle of Peru (6,000kpm) that will allow the production of international-quality activated carbon in the impact zone, to help democratizing access to clean water there; while we get ready to replicate the model to other regions (and countries in the future) with production of agricultural waste and an activated carbon demand.

I've always been passionate to use science and technology to create a sustainable future and reduce inequalities. Thus, I founded two companies based on this principle: Orgánica in 2017, with my father and a friend, a company that uses coconut shells to make sustainable BBQ charcoal; and Cocarbon in 2021, my current startup, which uses coconut shells to create activated carbon, a filtering material widely used to purify water.

Cocarbon's mission aligns perfectly with Solve's commitment to tackling global challenges. We believe everyone deserves access to clean water, and that's exactly what Cocarbon is working towards.

However, we've encountered some challenges. Although the technology for making activated carbon exists, the project required understanding complex regulations and building strategic partnerships to get to it. Also, developing commercial actions and deploying a marketing strategy is a hard task when you have physical product and live in a developing country. Solve's network of experts and partners can help us in providing us with guidance and connections.

We require an investment of USD 300,000, which is a very small and safer number compared to similar initiatives. Solve's financial support would be crucial in achieving this milestone. It would not only help in the construction, but also allow us to attract further investment for the implementation of the same project (and other projects like portable water treatment plants) in different regions and with different agricultural wastes.

Solve's commitment to comprehensive support aligns perfectly with our goals, and we believe that together, we can create a positive impact on the world. Making clean water accessible to all and promoting sustainable practices can build a brighter future for everyone.

The only competitors in Peru are chemical products distribution companies. Large corporations with years-long contracts where they link one of the largest companies in the world with a client in Peru. There are very small Peruvian activated carbon producers, which still do not reach the required quality (due to machinery available), and we know this because we have spoken with large and medium-sized consumers of activated carbon (90% of the product consumed).

We developed our own supply chain for collecting waste and separating coconut pulp from shells. The activated carbon from our pilot plant cuts costs by 50%, enhances water quality in hard-to-reach areas, produced sustainably from waste, with 100% renewable energy. It generates local employment, and aims to adapt the product to the local culture, fostering closer customer relations and preference.

In Peru, only 54% of the population has 24-hours-per-day access to safely managed water and more than 3.5 million Peruvians (11%) have no access to safe water at all, relying on unhealthy tankers and wells. In addition, it is estimated that due to climate change, 58% of Peruvians will live in a water-scarce area by 2030; although Peru is the 8th country with more fresh water (2%) in the world.

We want to change this. We seek to eradicate transportation of water for human consumption in tankers (cost 10 times the city water per cubic meter), as well as the diseases it brings. We want to democratize access to clean water in places with low water quality problems, in cities and in remote areas.

Water purification requires 3 macro steps: flocculation, filtration and disinfection. Commonly the filtration process (the most expensive one) involves using activated carbon, a filtering material currently produced in an unsustainable way (socially and environmentally) and from mineral carbon in some cases by the biggest companies in the world. The filtration process sometimes (depending on the water source) could be the only process needed to clean the water.

Our goal is to provide an affordable solution for water purification in remote areas (and in cities), through the production of activated carbon from agricultural waste.

Cocarbon is committed to comprehensive sustainability through key indicators. Energy efficiency is paramount, with the pilot plant operating at 100% solar capacity. Resource circularity is evident by aiming to use 100% of coconut industry waste, turning it into activated carbon instead of discarding. Job creation is tangible, with an estimated 30 new positions in the impact zone. Water quality impact will be assessed through strategic partnerships, such as with MIT Media Lab, exploring IoT technologies for water quality measurement. Reforestation investment constitutes 30% of profits, contributing to environmental balance. Standardization and certification, backed by ISO 9001 and 14001, ensure the quality and sustainability of our activated carbon. Transparency and collaboration will be reflected in annual reports, communicating progress and contributions. Continuous research and development, funded with 40% of net profits, will drive ongoing improvements in our products to effectively address the water crisis. With these initiatives, Cocarbon not only positions itself as a key player in water purification but also as a model of corporate sustainability.

We will begin to measure our impact as soon as our pilot plant is built.

We use widely known technology for the peripheral machines, and a specific technology for the kiln (core machinery) currently used in some countries (USA, India, Japan, Germany, among others). The plant is powered by solar energy, while the recovery of CO2 is made through Oxyfuel Combustion. The kiln has a known technology where the material reaches a high temperature within a water steam atmosphere. The machinery for separating pulp and shells is widely used in Asia.

Aldo Galli: Founder - CEO, full-time

Daniel Obregon: COO, part-time

Cristina Ratti: CMO, part-time

In 2017, I co-founded “Orgánica”, to manufacture BBQ charcoal from coconut shells. Next year, looking for a bigger impact in climate and people, trials of “Cocarbon” began. Here I focused in producing coconut-shell-based activated carbon to purify water and to recover CO2 from the air, two main problems in my country. In 2021, I formally registered Cocarbon.

So in 2023, the team grew with Daniel Obregon, a MSc in chemistry with a decade of experience in research and development of new materials with a patent and publications related to activated carbon; and Cristina Ratti, an educator with five years of content creation and alliance development expertise.

There is a marketer and commercial woman in our team of three (1/3) because I think it was crucial to improve creativity and innovation, to ultimately reaching better solutions to our problems. 

We work with coconut graters and coconut producers, and since day 1 we have offered them solutions to their problems, like sharing knowledge regarding business management and offering them loans at lower rates than the banks (because they are all small enterprises and have a high risk associated). Our goal for developing a long-lasting relationship is to keep creating jobs, cleaning water and generating energy in remote areas.

We partner with diverse organizations to reach a wider range of talented individuals. We foster meaningful connections and professional growth through mentorship programs.

1. Customer Segments:

• B2B with Contract: Contractual clients in various industries like water treatment, mining & metallurgy, petrochemicals, etc. with contract of at least 1 year.

• B2B Spot or B2C: On demand clients.

2. Value Propositions:

• Cost reduction: 50% cost reduction compared to competitors.

• Improved water quality: Especially beneficial for remote areas and applicable to cities.

• Sustainability: Made from recycled coconut shells with 100% renewable energy.

• Local impact: Generates local employment and adapts products to local needs, as well as local clients.

• Environmental benefits: Repurposes waste, captures CO2 for fertilizer production.

3. Channels:

• Direct sales: To clients who don't have existing contracts with distributors.

• Distribution companies: Partnering with existing distribution networks.

• Digital channels: Website, WhatsApp, and social media for online sales and communication.

4. Customer Relationships:

• Focus on long-term partnerships: Supporting clients with their needs beyond just product sales.

• Leveraging network: Utilizing connections to find additional services for clients when needed.

5. Revenue Streams:

• Sales of activated carbon: Contractual and spot pricing depending on the client and volume.

• Sales of coconut pulp and water: Byproducts from the production process.

• Sales of captured CO2: Byproduct of combustion process. Sold to small fertilizer manufacturers.

6. Cost Structure:

• Variable costs: Raw material, energy, packing, transport, maintenance.

• Fixed costs: Depreciation, Direct Labor, Indirect Manufacturing Costs, SG&A.

Parallel to Cocarbon, I've been developing my professional finance career since 2016. Having worked in a pension fund (biggest investment funds in Peru), in an investment bank (top Peruvian investment bank), in a mining company (one of the biggest copper mines in the world), in a plastics manufacturing company (one of the biggest from LatinAmerica), and in the environmental fund of Peru (Impact Investing, Carbon Credits, Conservation and Sustainability-Linked Projects within manufacturing companies); I can assure that my knowledge regarding financial areas is secured.

Before Cocarbon, I developed my first company, Organica, with my father and a friend, a company that is still working today. After that experience, I built Cocarbon by myself, reaching a position as one of the top activated carbon companies in Peru, winning an award from MIT Technology Review, and an award (USD 15,000) from the Ministry of Production of Peru.

Through my work experiences, I have developed some skills that help me nowadays to collaborate with industries and make Cocarbon thrive.

Currently, I am looking for building the first Cocarbon professional plant, a pilot plant in the rainforest of Peru. This plant will have the capacity to produce activated carbon to clean water for 150,000 families, and to be a groundbreaking project, easily replicable and scalable to other regions and other countries.