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The Corporate Influence on Water Efficiency
November 4, 2010
Prepared By:
Mia Javier, Analyst – Water Technologies
Cleantech Group, LLC
Prepared for the Cleantech Water Focus Event
Agenda
• Water Innovation in Perspective
• Core of Cleantech Ecosystem
• Tool for Economic Development & Security
• Key Issues Driving Innovation Need
• Paradox of Water Innovation
• Significant gap between opportunity and innovation financing
• Investor Hesitancy: Complex Market
• Influence of Corporations Remains Strong
• Water Joins the ‘Cleantech Club’: Watershed Acquisitions
• Convening the Stakeholders: Water Efficiency
• Water Analytics: Opportunities at the Convergence of IT & Water
• Water Reuse/ Wastewater Treatment Panel
• Accelerating the Business of Conservation:
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ENERGYEnergy Generation, Storage, Infrastructure and Efficiency
TRANSPORTATIONVehicles design and technology,
fuels and logistics
AIR & ENVIRONMENTRemediation, emission control,
trading and offsets
RECYCLING & WASTEVarious recycling services and
waste treatment services
WATERFiltration, purification, water
conservation and wastewater treatment
MANUFACTURINGMonitoring/control appliance
and smart production industries
MATERIALSNanotech, biotech, chemical
materials
AGRICULTURELand management, natural
pesticides, natural fertilizers, irrigation
Water: Core to a Rapidly Growing Cleantech Ecosystem
Cleantech is new technology and related business models that offer competitive returns for investors and customers while providing solutions to global challenges
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Tool for economic development & security
Germany and Denmark
continue to expand their
clean energy manufacturing
capacity
Cleantech manufacturing
jobs grow in China, South
Korea, Japan, Taiwan and
Singapore for solar panels,
advanced batteries and
wind turbine components.
4
Cleantech attracting innovation finance
$5.7 billion dollars across 590 deals in 2010 YTD.
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Water Innovation Is Critical
• Emerging Contaminants
• Water Tradeoffs • Supply Shortages• Aging Infrastructure / Infrastructure Gapes
Water
Energy Food
Common Goods
Urbanization and
Economic Development
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Large market opportunity in global water equipment
Source: GWI, Cleantech Group Analysis
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$188 B
Water Remains Small % Of Cleantech Venture Finance
8
Challenging Go-To-Market Strategies in Water
Extraction Treatment Distribution Use Collection Wastewater Treatment/
Reuse
Asset Owners
Asset Operators
Engineering Services (&
System Integrators)
Equipment Vendors
U.S. Water Market
1. Geographic Differences
2. Fragmented Customer Base
3. Disaggregated Processes
ROI Is Not Predictable: Water Economics Vary Widely
2010 Likely New High in VC Investments
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$166 M raised during the
first three quarters of
2010 – just $15 million
short of the 2007 record.
Key Acquisitions Put Water on the Map
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Zenon, Ionics,Osmotics, Betz
DearbornU.S. Filter
Actaris Metering Service
U.S. Filter
• Sold to Vivendi Environnment
Vivendi Environnement
• Vivendi Environnment
renamed
Veolia Environnement
• Veolia sells U.S. Filter to Siemens
Siemens Water Technologies
Voltea
$4.6 million round of venturefunding to support the commercialization of its capacitive deionization technology.
Intevras Technologies
Acquired Intevras’ EVRAS evaporative system is used for the treatment of frac or produced water from natural gas exploration. Their systems utilize waste heat from the existing national gas compression via evaporation to treat 1,350 barrels per day of produced water.
American Micro Detection Systems
Minority stake help the company finalize the development of their REX Sensor, which has the ability to detect dissolved metals down to the parts-per-billion in real-time.
Corporate Influence on Water Innovation Continues in 3Q10
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Looking Ahead
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• We have a lot of work ahead of us!
- There is steady, albeit slow, progress being made
• Incubation platforms and testbeds to pilot and prove
out technologies will be critical.
• Genuine interest on the part of large corporations,
utilities and regulators to deploy innovation could truly
catalyze investment in the sector.
LA Water Focus: Convening the stakeholders
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Innovative Solutions to
Water Resource Management/
Efficiency Approaches
Governments
Regulators
Investors
Corporations
Innovators
Utilities
Experts• Ontario Government
• U.S. EPA
• SAIL
•XPV Capital
• Vantage Point Venture Partners
• CMEA
• Ecomundi ventures
• Veolia
• GE
• IBM
• Syngenta• HydroPoint
• Banyan Water
• Exhibitors…
• MWD
• LADWP
• McKinsey
• The Artemis Project
•M2 Renewables
The Business Case for Water Analytics
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Real-time monitoring of water treatment and
distribution at the utility, industrial and
commercial/residential scales continue to attract
the interest of investors. While there are a
handful of established players in analytics and
instrumentation, a market that aims to address
water loss is emerging. Furthermore, real-time
water quality management remains the holy grail
for water utilities seeking prevention measures
and many other industries that require
monitoring of process water. This panel of
experts discusses the solutions that are selling
today, who the dominant players are in the
market and who and what they expect to see as
the future winners of this space
William
Fahey &
Veolia Water North America
Jeff
Fulgham
Chief Sustainability Officer and Ecomagination
Leader
GE Power & Water
John
Picard
Author and Founder
John Picard & Associates
Alex
McIntosh
Founder & CEO
Ecomundi Ventures
Emerging Trends in Wastewater Reuse and Energy Recovery
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Corporations and utilities are increasingly
using reuse technologies to diversify water
supply sources. This panel of experts will
discuss the challenges and opportunities in
the current procurement process for reuse
systems, as well as who will be the leading
technology providers today and tomorrow.
Andy
Corr
Associate Principal
McKinsey & Co.
Thomas
Erb
Water Resources Director
Los Angeles Department of Water & Power
Ken
Stedman
Founder
M2 Renewables
Sally
Gutierrez
Director National Risk Management Lab
U.S. Environmental Protection Agency
Accelerating the Business of Conservation
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In addition to diversifying sources of water
supplies with reuse technologies, utilities,
industry and commercial water users are
seeking ways in which to conserve water
resources. With over 60% of water use
attributed to agriculture 25% to industry and the
remaining share attributed to
commercial/residential water use, innovative
irrigation is emerging as an important demand-
side market. The appeal of such IT-driven
technologies are its lower upfront costs and fast
potential payback. This panel of experts discuss
the opportunity and challenges of such
technologies. What barriers to adoption are
present and how can regulation incentivize such
technologies?
Peleg
Chevion
Head of Business Development, Water
Syngenta
Paul
Ciandrini
HydroPoint Data Systems, Inc.
John
Coburn
Managing Director
XPV Capital Corporation
