Feasibilty study to determine market entrance for the Solvatten green technology into the agri-business value chains in Eastern Africa

Project Information

Solvatten_agri-bus

Grant agreement ID: 673583

DOI

10.3030/673583

Project closed

EC signature date 6 May 2015

Start date 1 June 2015

End date 30 November 2015

Funded under

• SOCIETAL CHALLENGES - Climate action, Environment, Resource Efficiency and Raw Materials

Total cost

€ 71 429,00

EU contribution

€ 50 000,00

Coordinated by

SOLVATTEN AB
Sweden

Periodic Reporting for period 1 - Solvatten_agri-bus (Feasibilty study to determine market entrance for the Solvatten green technology into the agri-business value chains in Eastern Africa)

Reporting period: 2015-06-01 to 2015-11-30

Summary of the context and overall objectives of the project

Solvatten AB is a registered Swedish SME producing the patented green technology Solvatten, a portable solar water heater and water treatment unit. Solvatten is unique on the market, as it contributes to solving, in one product, the water and energy challenge of the poor. No other product delivers both safe water up to WHO’s highest standards, improved health and significant savings; while also offering hot water and a renewable energy source that addresses both climate change mitigation and adaptation. It delivers social, economic and environmental benefits over an entire childhood, without additional investments, including energy effectiveness.

The feasibility study funded by Horizon 2020, SME instrument has helped us determine the path towards full commercialisation of the innovation.

The objective of the study was to provide Solvatten with the cornerstone of a business plan to enter the agri-business market in Kenyan and Ethiopian, by undertaking a market analysis and a partner search, and by identifying price and sales strategy and distribution channels.

Work performed from the beginning of the project to the end of the period covered by the report and main results achieved so far

We undertook a macro analysis of the market, an analysis of priority sectors and identified our target user and customers and potential distribution and financing partners. The market analysis and partner search led to the formulation of a plan for further action in Ethiopia and the development of a marketing and price strategy that is being tested through a number of distinct pilots in Kenya.

Progress beyond the state of the art and expected potential impact (including the socio-economic impact and the wider societal implications of the project so far)

Thanks to the Horizon funding, this feasibility study has given us critical insights into our markets that will be vital to our green SME development and growth. We have reached all of the objectives set out at the outset of this study. We have identified significant opportunities in Kenya and Ethiopia. We concluded that the market in Kenya is the most mature and promising for our innovation and decided to pursue primarily market entrance in Kenya at this stage. We have identified the key opportunities and challenges associated with both B2B (business to business) and B2C (business to consumer) models and pursued partnerships that will help us target different customers segment and resolve the distribution, marketing and financing challenges to reach such customers. We have also been able to surpass the objectives and initiate two pilots that will provide critical inputs for our business plan going forward.

Succesful commercialisation means delivering a range of economic, social and wider societal impact on a larger scale. Each sold unit of Solvatten, during each year of its long life span (approximately 7-10 years) will serve a family of approximately 5-6 people, and will deliver significant health improvements, resulting in 45 fewer sick days per year; it will deliver some 200 USD in energy and health costs savings, will save 2 tonnes of firewood, leaving 6-10 trees standing and reducing Co2 emissions by 1-2 tonnes. It will also absorb some 400-450 KWH of solar energy, contributing to increasing the amount of renewable energy globally and release 675 hours that can be used for productive activities, especially for women and girls who won't need to spend time collecting firewood.

selling Solvatten