Embed Size (px)
Citation preview
Why Water Innovation Matters –
and Why It’s Hard
Matthew M. Nordan
@matthewnordan
E2 EcoSalon
Friday, September 28, 2012
2 @matthewnordan
3 @matthewnordan
% of population
facing severe water
stress:
Areas of severe water stress in 2007
Source: OECD
>75%
50-74%
25-49%
<25%
4 @matthewnordan
Georgia:
Governor has convened
citizens regularly since
2007 to pray for rain
China:
Spending US$62B to
divert 45 km3 water/yr to
North China plains
Australia:
Ranchers slay their
sheep, sell water on
exchanges like WaterFind
Source: OECD
Areas of severe water stress in 2020
% of population
facing severe water
stress:
>75%
50-74%
25-49%
<25%
5 @matthewnordan
On one hand, there’s plenty of water
0 10,000 20,000 30,000 40,000 50,000 60,000
Available
Used
In accessible basins
Global water availability and use, 2008 (km3)
Source: U.N. FAO
6 @matthewnordan
7 @matthewnordan
On the other hand, it’s poorly distributed
0 10,000 20,000 30,000 40,000 50,000 60,000
Available
Used
In accessible basins
Global water availability and use, 2008 (km3)
Source: U.N. FAO
Already beyond definition of
severe water stress
(>40% utilization)
8 @matthewnordan
Water means food
9 @matthewnordan
10 @matthewnordan
11 @matthewnordan
12 @matthewnordan
13 @matthewnordan
Water means growth
14 @matthewnordan
Water means energy
1 10 100 1,000 10,000 100,000
Coal mining
Coal washing
Coal slurry
Synfuel production
Coalbed methane
Uranium mining
Uranium processing
Oil extraction
Enhanced oil recovery
EOR (CO2 injection)
EOR (tertiary steam )
Oil-shale (in situ)
Oil sands
Oil refining
Oil shale (surface retort)
Oil storage
Natural gas extraction
Natural gas process
Natural gas pipeline (<1)
Hydrogen reforming
Corn for ethanol (irrigated)
Ethanol processing
Soy for biodiesel (irrigated)
Biodiesel processing
Gallons/MMBTU (log scale)
Source: U.S. DOE
Water needs of selected energy sources
15 @matthewnordan
Water means peace
16 @matthewnordan
Complex, interconnected
2007 revenue US$522 billion
Growing 4.8%/year
Four top-level categories:
• Services: $386 billion (74%)
• Equipment: $64 billion (12%)
• Chemicals: $8.9 billion (2%)
• Bottled water: $62 billion
(11%)
`
Bottled water
$62.3 billion
Agriculture Domestic
Extraction
Water treatment
$206 billion
Groundwater
1,053 km3/yr
Surface water
2,942 km3/ yr
Sea/brackish water
12.9 km3/yr
Industrial
pretreatment
Wastewater
treatment
$73 billion
Recycled water
treatment
$2.7 billion
Desalination
equipment
$2.2 billion
Energy recovery
devices
$120 million
Physical
equipment
$11 billion
Chemical
equipment
$511 million
General
equipment
$36 billion
Monitoring/
metering equip.
$4.2 billion
Chemicals
$9.1 billion
Residential
equipment
$1.1 billion
Water shipping
$100 million
Irrigation
equipment
$9.3 billion
Industrial
Precipitation
113,435 km3/yr
Storage
Engineering
services
$54 billion
Infrastructure
services
$38.2 billion
Analytical
services
$2 billion
6.8 km3/yr
Treatment service Other service Equipment Intermediate process User
Water flow
Waste flow
Desalination
$9.59 billion
Irrigation
Source: Lux Research Q4 2008 Water State of the Market report.
Mapping the water sector
17 @matthewnordan
Markets for water innovation are…
Fragmented Hyper-local
Undervalued Conservative
Methodical
18 @matthewnordan
1) GDP
= 98% of variance between countries
US$1M GDP/yr =
22,000 m3 of water
CAGR to 2030:
3.0%
$0
$50
$100
$150
20
07
20
09
20
11
20
13
20
15
20
17
20
19
20
21
20
23
20
25
20
27
20
29
World GDP (US$ trillions)
Source: IMF, World Bank
2) Irrigation
1 hectare of land/yr =
10,000 m3 of water
CAGR to 2030:
1.5%
0
100
200
300
400
200
7
200
9
201
1
201
3
201
5
201
7
201
9
202
1
202
3
202
5
202
7
202
9
Irrigated land (million hectares)
Source: U.N. Food and Agriculture Org.
3) Population
1 person/yr =
60 m3 of water
CAGR to 2030:
0.9%
0
2
4
6
8
10
200
7
200
9
201
1
201
3
201
5
201
7
201
9
202
1
202
3
202
5
202
7
202
9
Population (billion people)
Sources: U.N. Population Division
Three factors guarantee more water needs
Source: Lux Research
19 @matthewnordan
Innovation
20 @matthewnordan
21 @matthewnordan
22 @matthewnordan
23 @matthewnordan
24 @matthewnordan
Thank you
Matthew M. Nordan
@matthewnordan
blog: mnordan.com
(617) 995-2020
