Climate Change Learning Conference
Transcript of Climate Change Learning Conference
Climate Change Learning Conference
The Business Case for Climate Change
Thursday July 17th 2014 • The Jamaica Pegasus Hotel
Presented by: Vaughn Morris
Benefits to the Business Bottom Line
SEAL Sprayed Solutions is a private limited liability company and a member of the
Jamaica Manufacturers’ Association, the Incorporated Masterbuilders Association Of
Jamaica, and the Spray Polyurethane Foam Alliance- A business unit of the American
Plastics Council.
SEAL specialises in the waterproofing of buildings through the application of various
energy efficient and environmentally friendly cool roof technologies. Primarily, we
manufacture Spray Polyurethane Foam (SPF) which provides the most efficient
insulation available commercially. Spray Polyurethane, as the name suggests, is a
polyurethane that is sprayed onto a roof or structure as a liquid which hardens
instantly to form an 1" - 1½" thick insulation barrier against water and heat. SPF can
be applied to a variety of roof types- concrete slab, metal, wood, shingles etc. to
substantially reduce the heat loading on the building, and in effect reducing the
energy required to cool the building by up to 40%.
SEAL also offers Silicone coatings for waterproofing and cooling of roofs. Our Poly-
Sil line of coatings are Energy Star and Cool Roof Rated ® and form part of the cool
roof and “green” technologies available in Jamaica. Silicones are more affordable but
not as insulation efficient compared to SPF. This cost effective alternative consists
of a brilliant white elastomeric coating that relies on reflectivity rather than true
insulation to make a building cooler.
Spray Polyurethane Foam (SPF) being applied to top of roof
Spray Polyurethane Foam Insulation being applied to inside of building
Spray Polyurethane Foam Insulation applied to walls
Brilliant white Silicone being applied over a dark membrane roof.
Business Bottom Line
The story of Seal Sprayed Solutions is one of a fortuitous accident. Back in 2001, I
was in another business venture and our office roof was leaking terribly. Long story
short, we used a newly emerging technology for Jamaica- SPF, and loved the results,
more so that our light bill was reduced by almost half. No More Leaks, No More
Heat.
Myself and another business partner bought out the one man company that did the
job, and together with him, SEAL was formed in 2002 with all new equipment and
technology. We haven’t looked back, and now have 50 persons on staff, with over 10
million square feet of SPF installed to over 1,200 buildings, and have a fully
operational subsidiary in Trinidad that serves the Eastern Caribbean.
Although SEAL’s main objective is to provide energy saving technologies to our
Clients, we also employ best practice systems within our manufacturing process to
mitigate against climate change.
In 2013, under a UNDP/NEPA Phaseout Project for use of HCFC in the Foam
Manufacturing Sector in Jamaica, Seal signed a MOU to only import raw materials
that do not contain Ozone Depleting Substances (ODS) such as HCFC 141-b.
Under this MOU, we received a technical and financial grant to:
-Attend a “Workshop Assessment of HCFC Alternatives” in Sao Paulo, Brazil,
-Purchase Non- Ozone Depleting raw materials for trials,
-Retrofit equipment, and
-Train our spray technicians in use of these new climate friendly raw materials.
It should be noted that these new HCFC free raw materials are more expensive, but
part of the grant is used to help offset this cost, thereby enabling SEAL to hold cost
down for our Clients.
SEAL also employs best practices with regards to internal waste management- we
recycle used 55 gallon drums for use as garbage receptacles (which we donate to
schools etc.). Our Silicone products contain Zero VOC’s (Volatile Organic
Compounds) and are NSF certified for potable water use. As such the used plastic
pails are in high demand for water storage and mostly given away to our staff.
Equipment retrofitted to handle the new HCFC free raw materials
Used drums recycled for use as garbage cans
In terms of energy management, our office building is insulated as is expected (walls
and roof), LED lighting was installed, and air-conditioning units upgraded to mini-
split systems. The result is our modest 700 square foot office has an electricity bill in
the region of J$20,000 per month.
As mentioned, SEAL’s core business is to provide energy efficient technologies to
our Clients, thereby enabling them to benefit from substantial energy savings in the
case of commercial and industrial users of heavy cooling requirements, and in the
case of residential Clients- to enjoy a cooler more comfortable living environment.
Those of you who live in concrete slab roofed houses will probably identify with this
need, especially over the hot summer months- unless of course you are already one
of our Clients.
A further benefit of SPF on certain roof types, is that it forms a monolithic covering
on top or under the entire roof which adds tremendous strengthening to the roof
structure against windstorm or hurricane events. SPF can practically make your
sheeted or tiled roof hurricane proof. Also, there is usually no need to tear off the old
roof to apply SPF, thereby reducing waste disposal impact on the city dump.
With a typical payback period of 3 - 5 years, and service life of several decades
with minimum maintenance, SPF insulation is a win-win solution- for the Client’s
bottom line, and for our planet.
In a nutshell, less energy use for cooling our buildings, lower electricity bills, and
less scarce foreign exchange needed to purchase expensive imported fuel for
electricity generation. A cost which by all indications will continue to trend up.
All of us would like to see our energy use and bills go down- if not for the altruistic
sake of the impact on climate change, certainly for the sake of our pockets.
It only makes sense for a small island nation with scarce foreign exchange and a fuel
import bill in excess of US$2.0 B
It only makes sense that as a small island that relies heavily on a pristine environment
to attract tourists, an island that is susceptible and vulnerable to climate change, an
island with one of the highest energy cost in the region.
It only make sense- to encourage energy conservation as a matter of practice
and policy.
I commend the present government for recognising this, and on August1, 2006,
polyurethane roof insulation along with 29 other energy saving products including
solar lighting, occupancy sensors etc., were made GCT and Import Duty Exempt
in a move to encourage greater public take-up while reducing the national import
fuel bill.
Unfortunately however, the present government as of 31st July 2004, is imposing
16.5% GCT on imported raw materials, including those used to manufacture
Polyurethane Insulation- a cost which we cannot claim back on the sale of an Exempt
product. As such, manufacturers of GCT exempt products, such as SPF insulation,
will have no choice but to pass this cost on to the consumer as an additional
production cost.
Ladies and gentlemen, on top of increased
costs due to constant devaluation of the J$,
and inflation, your energy saving roof
insulation just went up by 16.5%. This
doesn’t make sense.
This is a retrograde move and I hope the
relevant authorities will see the folly afoot
and correct.
Let me further point out that in some First World countries such as our neighbours
to the north- The USA with relatively inexpensive electricity averaging US$0.12 -
0.15c and Canada US$0.10 - 0.12c per kilowatt hour- INSULATION OF
BUILDINGS IS MANDATORY. You CANNOT build an office or house without
insulation.
Here in Jamaica at US$0.40+ cents, (3 to 4 times their cost) and we have no such
codes or requirement. It doesn’t make sense. In fact, some US states actually pay
you to insulate or retrofit your office and house to standards above the minimum
requirements. Rebates are given to encourage use of energy saving technology such
as SPF- by making it cheaper.
Here in Jamaica, our “well thinking” policy makers are in the process of making it
more expensive. It just doesn’t make sense.
No matter how good the product, no matter how much sense it makes to conserve
energy and benefit the bottom line, if consumers can’t afford to adopt the technology
due to policy, we as a nation will continue to suffer the consequences of high energy
use and contribute unnecessarily to climate change.
We are all painfully aware of the fact
that government revenues are down
and they are strapped for cash. They
are now seeking to extract more
revenue- by imposing a tax on a
product that will allow the nation to
save money on fuel imports. At the
same time this measure was
announced, they also announced the
lowering of duties on imported luxury
motor vehicles- the ones with the
largest gas guzzling engines. It
doesn’t make sense.
I urge our government not to be short-sighted. By making energy conservation more
expensive, our policy makers are discouraging us from saving fuel- and at the same
time making cheaper and encouraging the importation of gaz guzzlers that will
increase fuel consumption. How can this be ? It doesn’t make sense !
Ladies and Gentlemen, lets hope that good sense will prevail, and our policy makers
will do what is necessary to make energy conservation more affordable, more
accessible- allowing us all to benefit the Bottom Line is a positive way.