Opportunties in Cleantech and Water Business in California by Päivi Luoma, Gaia Consulting

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Opportunities in cleantech and water
business in California
Päivi Luoma, Gaia Consulting
18.5.2017

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Content of the presentation
1. Why California?
2. Smart Water
3. Customers and needs
4. Finnish expertice

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Why the western US water market?
• Due to water scarcity and competition on the limited water resources, water
efficiency innovations are in high demand.
• Lower-quality sources of water supply are being deployed
• Wastewater is being recycled in increasing scale.
• In addition to higher costs, regulation and customer awareness is driving
deployment of smarter ways of using and managing water.
• Drought is a key innovation driver by changing the economics of infrastructure
renewal, utility mergers and stormwater capture.
• For instance, according to the American Water Works Association in some
American cities about one-sixth of clean water supply leaks out of pipeline and
storage infrastructure before it reaches end users.
• In 2015, the price of water in the US increased on average by 6 percent and by 41
percent since 2010. Portions of southern California continue to experience severe
drought conditions, reducing the state’s total agricultural output by about 3
percent each year.
• Due to these drivers, the western US water market is highly motivated to adopt
new innovations. Also venture capital to fund such innovation is more readily
available in California than anywhere else in the US.
Sources: Buried No Longer: Confronting America’s Water Infrastructure Challenge
http://www.awwa.org/Portals/0/files/legreg/documents/BuriedNoLonger.pdf
http://www.circleofblue.org/2015/world/price-of-water-2015-up-6-percent-in-30-major-u-s-
cities-41-percent-rise-since-2010/
https://www.ucdavis.edu/news/drought-impact-study-california-agriculture-faces-greatest-
water-loss-ever-seen

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Why the western US water market?
Top 10 water innovation opportunities
1. Conserving and Recovering Energy
2. Recovering Nutrients
3. Improving and Greening of the Water Infrastructure
4. Conserving and Eventually Reusing Water
5. Reducing Costs and Improving Techniques for Water
Monitoring
6. Improving Performance of Small Drinking Water Systems
7. Reducing Water Impacts from Energy Production
8. Improving Resiliency of Water Infrastructure to the Impacts of
Climate Change
9. Improving Access to Safe Drinking Water and Sanitation
10. Improving Water Quality of Our Oceans, Estuaries, and
Watersheds
Sources: US Environmental Protection Agency (EPA) (2014)
https://www.epa.gov/sites/production/files/2014-
04/documents/clean_water_blueprint_final.pdf
1. Real-Time Energy and Water Quality
Management System
2. Removal of Nitrogen from Well Water
3. Removal of Entrained Air
4. Non-Intrusive Ozone Generator Cleaning
5. Real-Time Pump Condition Assessment
6. Real-Time Water Quality Management
7. Distributed Contamination Treatment
8. Predictive Break Model
9. Energy Savings for Buildings
Sources: Nevada’s WaterStart

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Smart Water
• Water scarcity in the western US is increasing competition and development of non-
traditional water sources
• This in turn is changing water technology value chains and spurring innovation
• Lower-quality water sources are leading to the deployment of advanced technologies,
catalyzing broader scale water recycling and efficiency, and increasing the business value
of connected water monitoring devices
• Wastewater management previously addressing hygiene issues and environmental
protection has expanded into nutrient and energy recycling

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Smart Water
• Preliminarily, the following business areas were identified as having significant potential
for Finnish SMEs to strengthen their position in western US water markets, especially in
California: industrial process technology, data analytics, connected devices
(internet of things IoT), turnkey water solutions, and water conservation.
• Smart Water was identified as an attractive business case coupling Finnish water
technology companies with western US market needs and linking several interesting
market opportunities.
• Water agencies, food and beverage, energy and mining as well as agricultural
water users are seen as the potential customers for these solutions.

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Smart Water
Key Smart Water drivers include:
• advancement of sensor technologies,
• networked communications protocols,
• decreasing computing costs,
• cloud data storage,
• descriptive and predictive analytics.
These technologies are revolutionizing
business operations and processes in
multiple industrial sectors. They are
increasingly being deployed to manage
and conserve water.
Smart Water solutions offer many
potential benefits:
• reduced water and energy use,
• reduced chemical
consumption,
• water quality improvements,
• reduced leakage.
Improved monitoring, automation
and asset management can lead to
huge cost savings and recovered
revenue.

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Smart Water
Sensors, smart
meters, leak
detection devices
Data analytics, IoT,
machine learning, artificial
intelligence and
augmented reality
Applications and benefits
Process optimization
Metering
Risk reduction
Asset monitoring
Predictive maintenance
Network optimization
Leakage management
Irrigation efficiency
Flood control
Other
technologies and
supporting
services
Smart Water
solutions

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Smart Water
Technologies and Solutions
Sensors, smart meters and
leak detection devices
To reduce chemical
consumption, control water
quality and identify leakage and
control pressure, temperature,
contaminants and chemical
usage.
Improved monitoring combined
with other technologies can lead
to huge cost savings and
recovered revenue.
Data analytics, IoT,
machine learning, AI
(artificial intelligence) and
augmented reality
Data streams are organized and
analyzed to support decisions to
optimize water use, improve
asset management, optimize
maintenance, and reduce risks.
This provides valuable and
actionable insights to decision
making and creates
opportunities for predictive
maintenance, remote control
and improved automation.
Other technologies and
supporting services
Part of the solution or platform
upon which to build a decision
support digital layer.
These technologies (e.g. machine
learning and AI) provide a way
to learn from the past and create
and deploy smart responses to
measurement data.
New service platforms (e.g.
clouds) and technologies (e.g.
blockchain) can provide data
storage, security and distributed
deployment of services.

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Customers and Needs

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Agricultural Water Users
Smart Water
Customers and Prioritized Needs
Sensors and measuring
systems
Data analytics, IoT,
machine learning,
artificial intelligence and
augmented reality
Other technologies and
supporting services
Food & Beverage
Industry
Energy & Mining
Industry
Water Agencies

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Agricultural Water Users
Smart Water
Customers and Prioritized Needs
Sensors and measuring
systems
Data analytics, IoT,
machine learning,
artificial intelligence and
augmented reality
Other technologies and
supporting services
Food & Beverage
Industry
Energy & Mining
Industry
Water Agencies • Water meters (radio, cellular)
• Water quality sensors
• Leak detection
• Water quality sensors
• Water quality sensors
• Leak detection
• Water meters
• Water quality sensors
• Soil moisture sensors
• Revenue recovery
• Leak detection
• Predictive maintenance
• Automation
• Security
• Automation
• Decision support
• Energy use reduction
• Water use reduction
• Cloud storage
• IoT
• AI
• Automation
• Decision support
• Water use reduction
• Automation
• Decision support
• Water use reduction
• Energy use reduction
• Cloud storage
• IoT
• AI
• Turnkey services
• Cloud storage
• IoT
• AI
• Turnkey services
• Cloud storage
• IoT
• AI
• Turnkey services

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Potential customers: Water Agencies
Water agencies focus on stabilizing revenue and reducing cost in light of increasingly scarce water
supplies and increasing pressure to reduce customers’ water consumption. Many (particularly
smaller agencies) have not deployed Smart Water solutions due to budgetary constraints. Agencies
are challenged to retain institutional memory as its work force ages and turns over, providing
opportunities for automated decision support systems and automation innovations.
Decision support systems that incorporate AI and machine learning
New treatment technologies (e.g. nitrate removal and desalination) to reduce water and energy use
Monitoring, security, automation
Customer service and customer-friendly mobile applications
Larger agencies are more likely to test and adopt new innovations, including: Metropolitan Water
District of Southern California, Las Vegas Valley Water District, East Bay Municipal Utilities
District, San Francisco PUC, Santa Clara Valley Water District, Irvine Ranch Water District, City of
San Diego, Truckee Meadows Water District. There are many others.
WaterStart website referencing partner technology priorities, https://www.californiawaterfix.com/
CUSTOMERS AND NEEDS
Specific
customer
needs
Potential
solutions and
technologies
Potential
customers
Sources

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Potential customers: Food & Beverage Industry
Sierra Nevada Brewing, Lagunitas Brewing, Numerous small beer brewers, wineries, food
processing. Sales channels include Summit Engineering and Placer Process Systems which are the
predominant brewery engineering firms in California.
California League of Food Processors (http://clfp.com/water-use-efficiency-study/)
Food Processing Suppliers Association, (http://www.fpsa.org)
California Craft Brewers Association (http://californiacraftbeer.com)
CUSTOMERS AND NEEDS
Specific
customer
needs
Potential
solutions and
technologies
Potential
customers
Sources
The food and beverage industry is focused primarily on implementing water and wastewater
solutions incorporating water and energy efficiency elements, turnkey operations and maintenance
services, and life cycle infrastructure management. Water supply and quality are critical to their
operations, yet at the same time secondary to production. For those customers with in-house water
operations, automation, decision support, and monitoring technologies are of primary interest.
Attaining sustainable, carbon-neutral operations is important to some.
Water treatment technologies to reduce water and energy use
Monitoring, security, automation
Wastewater treatment technologies with nutrient and energy recovery features

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Potential customers: Energy & Mining industry
The energy and mining industry is focused primarily on implementing water and wastewater
solutions incorporating water and energy efficiency elements, turnkey operations and maintenance
services, and life cycle infrastructure management. Water supply and quality are critical to their
operations, yet at the same time secondary to energy and minerals production. Automation,
decision support, and monitoring technologies are of secondary interest.
Energy: Pacific Gas & Electric, Southern California Edison, and smaller energy services providers.
Mining: Comstock Mining, Inc., Barrick Gold Corporation, Granite Construction Company,
Haliburton Energy Services, Inc., and Klondex Gold & Silver Mining Co. (all Nevada)
The California mining sector is inactive at present due to economic and environmental conditions.
Nevada Mining Association (http://www.nvmineraleducation.org/issues_policy/water_use.php)
Silver State Energy Association )http://silverstateenergy.org)
Pacific Gas & Electric (http://pge.com)
CUSTOMERS AND NEEDS
Specific
customer
needs
Potential
solutions and
technologies
Potential
customers
Sources
New treatment technologies to reduce water and energy use
Monitoring, security, automation
Decision support systems that incorporate AI and machine learning

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Potential customers: Agricultural water users
Producers: Winnemucca Farms (potatoes), Paramount Farming (almonds, pistachios), Farmland
Management Services (almonds, pistachios), Dole Food Company, Sunkist Growers, Inc., Foster
Farms, Pacific Coast Producers.
Sales Partnership Channels: Agrian (ag tech innovations), PureSense (Water/irrigation innovation)
California League of Food Processors (http://clfp.com/water-use-efficiency-study/)
Food Processing Suppliers Association, (http://www.fpsa.org)
California Agricultural Irrigation Association, (http://calagirrigation.com)
Western Growers (http://www.wga.com)
CUSTOMERS AND NEEDS
Specific
customer
needs
Potential
solutions and
technologies
Potential
customers
Sources
The agriculture industry is focused primarily on implementing turnkey water and wastewater
solutions incorporating water and energy efficiency elements, operations and maintenance services,
and life cycle infrastructure management. Water supply and quality are critical to their operations,
yet at the same time secondary to agricultural production. For those customers with in-house water
operations, automation, decision support, and monitoring technologies are of primary interest.
Water supply management
Treatment technologies to reduce water and energy use
Monitoring, security, automation, soil moisture and irrigation control systems
Decision support systems that incorporate AI and machine learning

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Finnish Expertise
• In Finland, there are more than 250
companies and research institutes
addressing water-related issues—
representing over 4.2 billion USD in
revenue per year.
• In addition, there is a strong cluster of
technology and software companies able
to provide solutions to water-related
problems.
• These companies, many of them SMEs,
have innovative, emerging technologies
and services highly attractive to US West
Coast markets.
• Example business applications include:
measurement, predictive analytics,
process control, asset management,
resource optimization, and water
management
Sources:Etla,FromCleantechtoCleanweb–TheFinnishCleantechSpaceinTransition(2015)

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Strengths and challenges of the Finnish technologies and companies on
the field of smart water management and use
Strengths
• Sensors and measuring systems
• Mining industry solutions
• Specific technologies for water treatment
• Process automation including process
optimization and resource-efficiency
• Water chemicals
• Specific smart concepts on water efficiency
Challenges
• Customer-driven turnkey services and
solutions
• Applications and references in food and
beverage industry
• Predictive and prescriptive analytics
• AI including cognitive learning
• Local presence including O&M services
and solutions
• Access and delivery channels to
agricultural water users

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