In a continuous drive to promote the uptake of this model, BASE launched the Cooling as a Service (CaaS) incubator in January and is now supporting five technology providers from around the world to implement their respective projects.
These providers were selected among 35 applicants from various regions and sectors to integrate CaaS into their business strategies. The projects include air-conditioning and refrigeration for commercial and industrial buildings (university, retailers, malls, offices, hotels); as well as off-grid cold-rooms for agriculture; and off-grid small freezers for small budget users.
The selected providers were GrupoClima (Costa Rica), CoolingTech (Grenada), BGH (Argentina), CoolCrop (India), and KoolBoks (Nigeria). These companies have since set up a dedicated team to work with BASE on technical, legal, fiscal, commercial and financial aspects, with the aim of launching the first demonstration projects by the third quarter of 2020. This includes support to develop contractual arrangements, a pricing strategy, financial structures, risk mitigation mechanisms, and communicating with investors and potential adopters.
Law firms were identified for each project and work has started to draft tailored CaaS contracts in each location. Potential projects have been identified, and BASE has been involved in several meetings with potential customers as well as with implementing partners (including investors) to explain the characteristics and benefits of the CaaS model. In addition, the selected companies, together with BASE, have been working on a pricing model for the respective projects.
This article gives an overview of the progress of the different incubator companies thus far.
CoolCrop
CoolCrop is looking to implement CaaS for farmers in India who do not have the means to access refrigeration for storing their produce. Traditionally, traders or external parties process (ripening, cleaning, packaging) and market the products to sell these at higher premiums. The farmers however, do not get any part of the value that is added to the process. CoolCrop aims to provide off-grid solar-powered refrigeration through CaaS to these farmers who otherwise do not have the means to implement refrigeration, therefore bringing more value to them and the products they offer. CoolCrop estimates that the farmers’ incomes will increase by at least 50 percent thanks to this service, because they will be able to preserve vegetables and fruits for longer durations, while post harvest wastage will decrease to below 5 percent (from more than 25 percent previously). Moreover, this infrastructure will help employ at least two to three additional farm workers to operate and maintain the refrigeration units.
Cooling Tech Ltd.
Cooling Tech Ltd. is the premier solutions provider and qualified dealer for Carrier commercial and residential air-conditioning systems and refrigeration solutions in Grenada and throughout the wider Caribbean region. The company is modelling to implement the solution to customers who have old cooling technologies installed (some of which are using ODG and high GWP refrigerants). One of the projects looks to serve one of the flagship buildings in the region, which would, through CaaS, benefit from state-of-the-art service Energy Efficient technology. They will also benefit from improved service and maintenance, and the reduction in CAPEX and OPEX with regards to the solution they currently have. CaaS will improve the lifetime of the equipment and remove premature failures, which currently occur at the customer site due to inadequate operation and maintenance. Through CaaS, Cooling Tech aims to enable the customer to reduce expenses on their cooling equipment and redirect these funds to their core needs: providing to the persons in the building a more comfortable working environment thereby enhancing their overall experience.
Grupo Clima
The company is evaluating the possibility to implement CaaS for several of its customers, including a premium location certified by the US Green Building Council, where the installation, operation and maintenance will be provided by Grupo Clima. As a green building-certified asset, the building needs to have less negative environmental impact than standard buildings. To achieve this, Grupo Clima will retrofit the existing equipment with a highly energy-efficient variable refrigerant flow (VRF) system that offers superior indoor air quality monitoring as well. Every outdoor unit will be equipped with multiple inverter-driven compressors that provide efficiency and comfort. The entire system will be monitored remotely from Grupo Clima’s offices, while timely alerts will support in maintaining the system and keeping it running at its most efficient level. Overall, the new system will provide key advantages to the client, including higher efficiency, better maintenance, increased comfort, lower operation costs, and removing the need for large distribution fans, water pumps, and large hydronic pipes. Furthermore, since the systems will be remotely monitored, valuable real estate space will be freed-up in the building. Overall, the project will enable the customer to re-open its business more rapidly after the lockdown during the global pandemic, while strongly supporting the vision of low- or zero-net energy buildings.
KoolBoks
The team is focusing on providing high-tech energy efficient and solar-powered freezers and refrigerators to local small businesses in Nigeria. Two strong applications are being evaluated. One will provide fresh produce traders at the largest market in Lagos with the ability to store their goods using the KoolBoks freezers while on the market. Another will enable traders to reduce their waste by more than 40 percent and thus increase their revenues. CaaS will enable these traders to access the technology without the need for large upfront investments, while the company will also ensure the proper maintenance and operation of these systems throughout their lifetime – therefore removing the risk of having increased freezers waste in the region. The second application focuses on providing vaccine refrigeration for 25 of the Delta-state healthcare buildings. Refrigeration of vaccines is a challenge due to bad refrigeration, related to inadequate operation (the nurses and the doctors do not have the time to run these) but also power shortages. Having solar-powered systems and KoolBoks running their operation will ensure the vaccines are stored correctly and at the right temperatures, which is very important, especially as we come out of a global pandemic.
BGH
BGH is one of the leading Cooling technology providers in Argentina. The company has been focused on tailoring the CaaS contract to its customers that require a retrofit for systems approaching end of life. The applications target cinemas, office spaces, hotels and retailers. BGH will lead the implementation of the systems and ensure the correct operation and maintenance of these. As the country re-opens from the global lockdown linked to the COVID-19 pandemic, in addition of local economic challenges, CaaS will enable customers to reduce their OPEX and CAPEX linked to their cooling equipment by retrofitting to state of the art technologies with high energy efficiency, low GWP, and digital remote operating systems; ensuring an around the clock optimized operation. CaaS will provide strong value for businesses to accelerate their economy while optimizing their expenses.
