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Closing the Loop:
Generating Value from Power Distribution End-of-Life
Presented by Matthew Wise
Global Head of Strategy & Business Development, Electrification Service, ABB
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ABB Accelerating Circularity Startup Challenge
Winner award – Collaboration project worth $30,000
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ABB ELECTRIFICATION SERVICE CHALLENGE
Closing the Loop:
Generating Value from Power Distribution End-of-Life
ABB Electrification has an installed base of around 17 million power protection systems and devices, from switchgear and circuit breakers to soft starters to uninterruptible power supply (UPS) systems. Beyond these devices, our customers also have a huge scope of closely related electrical and electromechanical products such as drives, motors, batteries and electric vehicle chargers.
With innovation and sustainability at our core, at ABB Electrification Service we recognize the opportunity to help customers with the ongoing need to address the end-of-life phase of the installed base. We want to partner with our customers to enable circularity and a focus on sustainability through responsible decommissioning, disposal and recycling of electrical equipment to achieve both safety and environmental outcomes.
The challenge
The current process for managing the decommissioning and end-of-life of electrical equipment, particularly in relation to finding suitable logistics, transportation and waste management partners, is complex, timely and costly.
We need a strategic business model that clearly maps out the end-of-life methodology, customer value proposition and go-to-market strategy, above and beyond our current service offering.
Critical to this business model is identifying the most appropriate businesses to partner with, across multiple countries, who can demonstrate the safe, sustainable and efficient management of disposing, refurbishing or recycling electrical equipment that abides by local country environmental regulations. The business model would define the “rules of engagement” between ABB, our customer and partners.
Partners would need to have expertise in plant and equipment disposal, PCB (Polychlorinated Biphenyls) disposal, pollution prevention and control, and SF6 gas decommissioning and disposal, and provide certification as proof of managing the materials in line with local environmental standards and laws.
In addition, we are looking for the development of a user-friendly tool to enable the suggested business model for both customers and ABB Electrification Service.
The outcome
This challenge would extend Electrification Service’s end-of-life offering by closing the loop for the life of power distribution systems through a partnership model that delivers efficient and effective disposing, refurbishing or recycling services.
Further, by having easy access to certified logistics and waste management companies, we will be able to work closely with our customers to proactively plan a strategy for continuous end-of-life services in a cost efficient, safe and environmentally friendly way.
Importantly, ABB and our customers and partners would be positively contributing to a circular economy by minimizing waste, reducing carbon emissions and recycling for a greener world.