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Israel’s Water Technology and Industry

Roots, Growth, Sustainability

Mexico City17 September 2014

Raanan AdinIPN Representation in Israel

CEO, Adin Holdings, Israelradin@ipn.mx; raanan.adin@adinholdings.com

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Outline

IntroductionRoots of Israel’s water industryInnovation and start-upsConclusions

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IsraelArea: 22,000 sq. km.Population: 8 million (2013)

Source: Google Maps, http://maps.google.com

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1948 1953 1958 1963 1968 1973 1978 1983 1988 1993 1998 2003 2008 20130

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

919

1,6692,032

2,4302,841

3,3383,738

4,1194,477

5,328

6,041

6,748

7,419

8,107

Israel's Population 1948-2013

Year

Thousands

Population growth

Sources:

Central Bureau of Statistics, Israel, http://www.cbs.gov.il;

Mexico: http://www3.inegi.org.mx/Sistemas/temas/Default.aspx?s=est&c=17484

2013 = 1948 x 8.8

Mexico: x 4.8 (25m119m 217m)

9,000

01948 2013

919

8,107

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Initial Technology DriversThe need for survival resulted in rapid growth:

Military Industry Agriculture

Hi-TechMedical

Equipment Biotechnology Water

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Trade ChallengesTrade destinations in a distance: Require being

more attractive and more effective.

Source: Central Bureau of Statistics, Israel, http://www.cbs.gov.il

N. America30%

S. America3%

Europe34%

Mexico0.7%

Asia25%

Oceania1%

Africa2%

Others5%

Export from Israel in 2012

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WaterBalance (1)

Climate

Yearly precipitation (mm)Average 1981-2010

Source: Israel Meteorological Service

http://www.ims.gov.il/Source: http://mapasdemexico.org/maps/rain.html

Yearly precipitation (mm)Average 1941-2000

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Water Balance (2)Water balance (MCM/y @ 2010): Fresh water resources available - 1,200 Demand - 2,131 Deficit - 44%

MCM - Million Cubic Meters

Source: Israel Water Authority - Water Sector Master Plan v4

1,200

764

1,044

12014360

0

500

1000

1500

2000

2500

Natural resources Demand

Urban 764

Agriculture 1,044

Other 60Regional support 143Industry 120

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Water Resources40% Ground water20% Surface - Lake Kinneret20% Reuse 450 50020% Desalination 430 750

Milestones:National water carrier: 1964Shafdan WWTP: 1969Ashkelon desalination plant: 2005

Israel’s Major Water Works

Israel’s Major Water WorksBlack: Water Red: Reuse

Jerusalem

Lake Kinneret

Dead Sea

Tel Aviv

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Water Reuse in IndustryChallenges:

Water quality requirements are highTreatment of industrial pollutants is difficult

Drivers:Regulation+enforcement: Discharge quality restrictions; Tight

quotasCost: Fresh water consumption; Wastewater discharge

Solutions:Flow source separationEqualization tanksMatch the right technology

Ex.: Intel Israel, Kiryat Gat factory reuse over 50%. Goal: 80%Government support: Loans for establishing reuse systems

Source: Israel Water Authority - Water Sector Master Plan v4

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Main State InstitutionsMinistry of Energy and

Water - Legislator

National Water Authority - Regulation, Pricing,

Supervision

Ministry of Health - Water Quality - Legislator,

Regulation

Ministry of Environmental Protection - Pollution

Control

Ministry of Agriculture - Regulator, Legislator

Mekorot National Water Company - Water supply

Municipal water authorities - Distribution

to consumers

Ministry of Economy - Water industry

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Israel’s Water IndustryMain segments Irrigation Treatment Management Flow control Security and safety Consulting, design offices

Challenge: Develop locally, operate globally

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Innovation and Technology

Evolution paths:Universities research -> Incubator -> Private

investor-> Productization "Back yard" -> Incubator -> Private investor ->

Productization Industry in-house development

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Innovation and Technology

Evolution paths:Universities research -> Incubator -> Private

investor-> Productization "Back yard" -> Incubator -> Private investor ->

Productization Industry in-house development

The gaps are hard to cross . . .

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Nurturing Innovation Knowledge and research Capacity building R&D encouragement Leveraging the local market and infrastructure Helping global expansion

NEWTECH - National program aimed at promoting Israel’s water and sustainable energy sectors Under the Ministry of Economy “First round” for start-ups: 2006

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R&D EncouragementOffice of the Chief Scientist tools to assist new

technological initiatives:Tnufa - EUR 40,000 grantIncubators - EUR 700,000 investment/2 yearsSupport of research institutionsMagnet - Collaborative R&D in Industry

ISERD - EU R&D programs support (Ex.: HORIZON2020)

Numerous bi-lateral agreements

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Leveraging the Local Market

Implementation of new water technologies with:Local water utilitiesMekorot National Water Company

Openness in the private sector to support startups and allow beta and pilot testing

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Helping Global ExpansionUtilize commercial attaches’ network abroadSign joint ventures with international partners &

institutesFunding for marketing effortsLeverage standardization;

Active participation of IIS in ISOParticipation in international eventsPromote local conferencesGovernment guaranteed insurance

for oversees project

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WATEC Exhibition & ConferenceBi-Yearly water industry promotion event

150 exhibitors, including Israel’s leading companies, startups, institutions and several international companies

Delegations from over 100 countries, including ministers, investors and procurement officers

http://www.watec-israel.com/

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Private Incubators (1)Kinrot VenturesFounded in 1993; Privatized in 2006Main operation model: PPP - Private-Public-

Partnership combining the owners and Chief Scientist incubator program

Portfolio: 14 companies, 10 in water:TA Count - Near real time sensor for detection of

reproducible microorganismsDiffusaire - Energy saving aeration technologyFiltofleX - Fine filtration flexible mediaand more . . .

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Private Incubators (2)L.N. Green Technological IncubatorOperating almost 20 yearsEstablished more than 70 companiesFocused on environment since 2007Portfolio: 9 companies, 3 in water:

JP AquaKnit - 3D flexible biomass carrier for WWTAgRobotics - Anerobic process for high organic loadAccurate Watering - Sprinklers for irregular areas

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Success StoriesTreatec 21 IndustriesA.R.I.DiffusaireApplied CleanTech

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Treatec 21 IndustriesSector: Wastewater treatment1996: Academic research at the Hebrew University

in Jerusalem2000: IP registration by “Yissum”2002: Ashkelon incubator supported

by the Chief Scientist ofthe Ministry of Economy

2004: Private investor - Solor2010: Merged into a public company, traded in Tel

Aviv Stock Exchange - Yaad Industries

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A.R.I.Sector: Water meteringChallenge addressed: Low flow metering at homesCollaboration with Jerusalem’s local water company

(Hagihon) to install at “neighborhood scale” of 5,000 homes

Support budget: EUR 200,000Success boosted

international sales !

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DiffusaireSector: Aeration - Wastewater treatmentChallenge addressed: Reduce

aeration energy costCollaboration with a municipal water

company to install in their WWTPSupport budget: EUR 50,000Project started: 2012Success in reducing energy cost

dramatically - Company ready for the next step - private investment

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Applied CleanTechSector: Wastewater treatmentChallenge addressed: Reuse of solidsNewtech: Collaboration with a municipal water

company; ACT decided to use private investment.Support budget: NoneKey issue: Newtech’s support brought the partners

together

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ConclusionsMotivation: Survival . . .Focus = Dedicated program NEWTECHSupport from pure R&D to global expansion,

Connecting the pieces of the puzzlePrivate initiatives strengthened by state policy

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WATER IS LIFE

Raanan Adin; IPN Representation in Israel; radin@ipn.mxCEO; And Holdings; raanan.adin@adinholdings.com