FEBRUARY 2020
BLUETECH
INTELLIGENCE
BRIEFING
This month at BlueTech we have been considering what the future holds in terms of the impact AI tools will have on the
water sector. In this Briefing are key takeaways from our latest Horizon Scan on AI and Decision Support tools. The prospects
for change are potentially dramatic, particularly for the way in which utilities operate. The chief attraction of adopting
AI seems to be value propositions. To give two examples, Optimatics, profiled in this report, saved a large UK utility £25
million by reducing the number of nitrate treatment facilities required to meet the regulatory requirements from an originally
estimated four, to two. SmartCover Systems, also profiled, eliminated the requirement to invest $10 million in new stormwater
infrastructure at another utility through better operation and maintenance of the existing system.
While CAPEX savings is one of the most striking potential benefits, AI is also being used to lower OPEX, for example through
optimizing cleaning and inspection regimes for water and wastewater networks. With operating expenses for water and
wastewater utilities expected to reach $100Bn annually and estimates of CAPEX requirements ranging from $300Bn to $1
trillion dollars in the next decade, there is significant opportunity to invest a portion of those funds in data-driven operational
improvements, and optimized capital investments. There are certainly challenges with adopting AI tools; however, as budgets
for utilities continue to get tighter, utilities are looking for cost-effective means to meet their increasing obligations, and
investment in AI technologies could offer significant returns.
This month we also consider an issue which is certain to grow more prominent in future, and indeed has already been
capturing headlines: microplastics. Despite the interest in the mainstream media, there has been surprisingly little research so
far directed specifically at microplastics in wastewater treatment plants. One of the challenges is that there is no commonlyagreed consistent method for identifying and quantifying microplastics in water. The lack of data has fed into a relative lack
of legislation. As things stand, if this is a crisis-driven market, it is probably one which will come to bear after the next 5 years.
BlueTech will continue to monitor this area closely.
Our Company Report this month provides an in-depth look at Microvi Biotech, which offers a microbial encapsulation
technology which improves the performance of biological treatment systems. Microvi’s technology has the potential to be
highly disruptive if it can find widescale application in drinking water and prove to be more cost effective than IFAS/MBBR
and Granular Activated Sludge.
The patent tracker’s highlights this month include a novel bottle-brush polymer for scale reduction from Dow, a new twist on
DAF from Evoqua and a method for lowering the pH of cow manure prior to land application from BKT.
I hope you enjoy the Briefing.
Rhys Owen,
Research Editor, BlueTech®
www.bluetechresearch.com
Content Overview
THIS MONTH’S BRIEFING
01
•
AI and Decision Support Tools: Horizon
Scan. Key takeaways from BlueTech’s
latest Horizon Scan report, crosscomparing AI offerings in the water
sector. TAG expert Graham Symmonds
analyses the drivers, challenges
and potential of AI and related
technologies and how they are set to
transform the water space.
02
•
TRENDS/CRISIS WATCH
Microplastics monitoring and
removal. A look at the issues posed
by microplastics in water, including a
discussion of the status of research.
03
•
RAPIDLY EVOLVING
TECHNOLOGIES
04
•
INNOVATION TRACKER
Selected additions and updates
to BlueTech’s Innovation Tracker:
Featuring a flat-sheet ceramic
membrane from Cembrane, algae
lagoons from CSIR, Hydropath’s
pulsed power-based scale reduction
technology, and Bactosense, an
innovative microbial sensor.
05
•
NEW TECHNOLOGY
DEVELOPMENT AND
PATENTS
Updates from BlueTech® Patent Watch.
Highlighted patents this month include
a “Cow excreta treatment apparatus
and method” from BKT which addresses
its relatively high pH, an intriguing
application from Dow for bottle-brush
polymers for use in inhibiting scale
formation, and an innovative take on
DAF from Evoqua.
COMPANY REPORT
Microvi Biotech. Snapshot of BlueTech’s
in-depth analysis of the company, its
commercial progress and its microbial
encapsulation offering.
Added to inside.bluetechresearch.com
Intelligence Platform:
•
•
•
•
2
AI and Decision Support Tools: Horizon
Scan
Microvi BioTech: Company Report
Web Briefing: Entrepreneurship Battle
Scars - The Do’s and Don’ts!
Web Briefing: Algal Wastewater
Treatment Innovations
BlueTech Alerts:
A BRIEF LOOK AT THE LATEST NEWS
•
•
Culligan, a major player in point of use (POU) and
• French water supply company Saur has made a
other consumer-focused water solutions, has solidified
step into the digital space, having announced
its position in the market with a $1.1Bn acquisition of
its acquisition of a 51% stake in British startup
NYSE-listed AquaVenture Holdings. AquaVenture’s
Riventa Ltd., which offers innovative solutions
water cooler business made the company an inviting
for real-time monitoring of pump performance
target for Culligan, which will also gain control of a
in drinking water production plants, aimed at
small portfolio of municipal desalination plants.
delivering energy savings.
Sustainable Development Technology Canada is
• El Paso Water and Carollo are taking the next
investing CAN46.3 ($35M) in 14 start-up cleantech
step towards direct-to-distribution potable
companies across the country. Fibracast, which
reuse with a $3.5M grant from the US Bureau
offers a hybrid hollow fiber-flat sheet ultrafiltration
of Reclamation to complete design of an
membrane for submerged applications, secured
Advanced Water Purification Facility (AWPF). The
CAN2.5M ($1.9M). Anaergia, which provides modular
facility will treat wastewater and deliver it to the
biogas plants for use in the agricultural sector, is to
city’s drinking water distribution system.
receive CAN4.54M ($6M).
• The U.S. Environmental Protection Agency
•
The U.S. House of Representatives has passed
(EPA) has announced the next 20 chemicals to
legislation which will designate PFOA and PFOS as
undergo risk evaluation under the amended
hazardous substances, which will begin the clean-up
Toxic Substances Control Act (TSCA). The 20
process at contaminated sites. The USEPA will also
chemicals that will undergo risk evaluation
have a two-year deadline to create a drinking water
consist of seven chlorinated solvents, six
standard.
phthalates, four flame retardants, formaldehyde,
a fragrance additive, and a polymer precursor.
•
The Water Research Foundation (WRF) has appointed
Christobel Ferguson as Chief Innovation Officer.
• Australia’s New South Wales Government has
Ferguson’s previous roles include time at Water
announced it will fast-track the construction
Research Australia, GHD, and the New South Wales
plan to expand Sydney’s desalination plant, to
Department of Industry.
double its size to 500,000m3/d. The SWRO facility
at Kurnell currently produces 15 per cent of the
•
RayVio, a UV LED technology supplier, has ceased
city’s water.
operations. Founded in 2012, the California-based
firm offered a range of products under its TRUVIOLET
• A $51.4 billion programme to connect the whole
brand, including a UVC LED pod which sterilized
of India to piped water supplies by 2024 has seen
baby bottles and small home items. The assets of
the first guidelines released by the government.
the company were sold by two disposition firms
Only 18% of rural Indian households have access
late last year. RayVio did not comment except to
to tap water in the home – the programme will
say that commercialisation had taken longer than
add another 146 million connections. The central
anticipated.
government will fund 58% of the programme,
with the states responsible for the rest.
•
Hydraloop Systems BV, which offers a point-of-use
system for household water reuse, has become a
member of the WaterCouncil in Milwaukee, and
plans to open a US subsidiary in 2020. This month the
company also won Best of Innovation in Sustainability,
Eco-Design, and Smart Energy at CES 2020 in Las
Vegas.
3
01
RAPIDLY EVOLVING
TECHNOLOGIES
AI and Decision Support Tools: Horizon Scan
Introduction
Municipalities and utilities are being afforded an opportunity to reimagine the production, treatment and delivery
of water, wastewater and stormwater services. This includes opportunities to:
•
develop data-driven ways to get more capacity from existing treatment systems;
•
use information to manage pressure transients to control bursts;
•
use technology to eliminate wasteful non-revenue water;
•
optimize the economic potential of existing infrastructure.
One of the newest tools for assisting in smart water management is data analysis powered by artificial intelligence.
The term “AI” has become a significant buzzword in the technology space, and there is evidence that in many
cases, what is portrayed as AI is not particularly “intelligent” nor is it “artificial”, but rather the output of cleverly
programmed routines. Notwithstanding, there are companies that have grasped the technical complexity of AI
and are delivering significant results to the water sector, including those profiled and compared in this report.
AI will be increasingly used in all facets of utility operations and there are companies exploiting the availability
and intersection of data in utilities to generate several significant value propositions. For example, AI-driven CAPEX
planning will combine growth projections with future trends in water availability and infrastructure condition
assessment to maximize the impact of investment in infrastructure; data focused operations of existing infrastructure
will eke out additional capacity to meet the needs of today and the future and minimize the impact of meeting
the capital requirements for the industry; and remote, intelligent infrastructure assessment tools will allow operators
to pinpoint potential failures in advance, minimizing costs to repair. These type of value propositions are already
generating significant returns for the industry. Optimatics, profiled in this report, saved a large UK utility £25 million by
reducing the number of nitrate treatment facilities required to meet the regulatory requirements from an originally
estimated four to two. SmartCover Systems, also profiled, eliminated the requirement to invest $10 million in new
stormwater infrastructure through better operation and maintenance of the existing system.
AI will also come to dominate the inspection of water and sewer systems, the accuracy and reliability of meters and
the process control of dynamic systems. In doing so, the water sector workplace will be revolutionized. Repetitive and
perfunctory activities will be replaced by a need for an increasingly data-aware and analytics-based employee.
Overall, the total addressable market is constrained only by the ability for AI-driven technologies to bring savings in
operational and capital expenses. In many cases the business case for these technologies involves an investmentto-save model, designed to fund technology from reductions in required OPEX and CAPEX.
With operating expenses for water and wastewater utilities expected to reach $100Bn annually and estimates of
CAPEX requirements ranging from $300Bn to $1 trillion dollars in the next decade, there is significant opportunity
to invest a portion of those funds in data-driven operational improvements, and optimized capital investments.
As budgets for utilities continue to get tighter, utilities are looking for cost-effective means to meet their increasing
obligations, and the investment in AI technologies offers significant returns.
What is it?
The first software decision support systems used hard-programmed “expert systems” or “rule-based algorithms”
in an “if-then-else” linear diagnostic structure. These systems proved adept at managing a discrete amount of
variability within a narrow knowledge base, but were often not capable of operating within a dynamic system
4
with heavily competing and indirect interests. In a dynamic data/information environment, this segmentationtype analysis rapidly becomes unwieldy due to the lack of a normative correlation between disparate data and
the computing power required to maintain the tree of options. Also, because of the linear nature of these types
of systems, the computing time and power required for analysis grow rapidly and substantially as the complexity
increases. In addition, absent some empirical or theoretical model of behavior, the sheer number of permutations
and combinations of potential options can overwhelm any system.
The tools of AI are changing that. True AI uses pattern recognition applications that employ a set of inputs, weighting
factors, summation and transfer functions that, by definition, are autonomously and dynamically updated as new
information is presented. In the water sector, the gateway to AI is taking on two main forms: 1)”Learned” AI: ingesting
new data and subjecting it to analysis based on what the algorithms have been trained on; and 2) “Derived” AI:
mining existing large data sets for new insights and correlations.
Figure 1: Comparing types of AI
Learned AI
In a learned system, AI replicates the way humans learn. During the “learning phase” of AI programming, input
data is correlated to known outputs to allow the algorithms to learn over time. Once “taught” the platform is
employed in the “operational phase” to deduce a statistically accurate output.
It is an important aspect of learned AI that it does not require that all potential outcomes are coded, but rather
takes into account the context, the location (word, equation, adjoining letters or symbols etc), the physical shape,
mathematical, pronunciation and grammar rules and other information. As a result, when AI encounters a character
that looks like
, the platform can infer that this is an “E” and not an ampersand (&).
As an added benefit, learned AI-driven platforms continue to expand their association universe, improving statistical
accuracy at every iteration. Key companies working in this manner, and profiled in the report, include:
•
Plutoshift
•
SmartCover Systems
•
Aganova
•
Fracta
5
01
RAPIDLY EVOLVING
TECHNOLOGIES
Derived AI
In a derived system, large data sets are intersected and sorted and compared to find new insights and determine
how variables and parameters are related to each other. These systems employ models of system behavior to
determine these correlations and feedback the output to the algorithms.
Employing a physical or theoretical model as the basis of the correlation allows for real-world constraints to act
as guardrails for the output and ensure that any proposed solution fits the model of operation. Key companies
focusing on this type of system (and profiled in the report) include:
•
Optimatics
•
Baseform
•
EMAGIN
•
Enging
•
Bunt Planet
Who should read this report?
CEO: Companies looking to maximize the usefulness of data should look to develop a strategy that provides for
data-driven decision making. Understanding the value of data and artificial intelligence as it relates to revenue
assurance, compliance, operational efficiency and human resources is critical for every organization.
Additionally, the impact of AI on human resources cannot be underestimated. Managers and HR professionals
must develop the programs necessary to transition staff into this data-centric world and challenge both their
employees and organizations to train and exercise the analytics tools that AI provides. Creating data aware staff,
and developing analytical skills for all, will be key hallmarks of the utility in the future.
CTO: To access the value delivered by AI platforms, companies serving these solutions to water utilities need to
create the processes around which data is collected, accessed and analyzed. This requires the creation of an
ecosystem in which there is unfettered access to primary data and other supporting data sets, as well as a means
of normalizing and storing this data, combined with a team of skilled professionals to make sense of it all. For
example, providing interoperability between consumer water quality complaints (customer information systems
or CIS), asset management (computerized maintenance management system or CMMS), SCADA, advanced
metering infrastructure (AMI), laboratory information management system (LIMS) and engineering systems
(hydraulic models etc) can result in a highly effective distribution system monitoring program. Getting to that point
will require CTOs to focus on data accessibility.
Data across the utility estate can be very distributed and entirely concentrated within functional groups within the
company. To maximize the potential of using data, companies will need to establish a data infrastructure that: 1)
Provides an architecture that can store vast amounts of data; 2) Provides a curation and access mechanism for
that data; and 3) Provides the means to analyze that data.
Acquisition manager: Within the cohort of companies reviewed in this report, the majority have been in existence
for several years to a decade, nurturing the availability of data to develop significant value propositions for the
industry. Some of these entities have already been acquired by, or forged strong relationships with, the sector’s
larger entities. Examples include Optimatics, now a subsidiary of Suez, Bunt Planet (partnership with Siemens)
and Emagin, which was acquired by Innovyze shortly before the publication of this report. As value propositions
become increasingly cross-platform, and access to clients depends on working with existing platforms already
in use, the logical avenue for most, if not all, companies engaged in AI will be at a minimum collaboration, and
ultimately merger or acquisition. Companies with strong utility-oriented value propositions, access to the market
and strong barriers to competition will be prime targets for acquisition.
6
R&D manager
The water sector has some significant issues that are, as of yet, not being addressed in this space. Examples include:
•
Customer engagement and personalization of messaging;
•
Water resource sustainability; and
•
Water quality preservation and optimization;
•
Water scarcity management.
•
Segmentation of water use behind the meter;
Technology review
The companies profiled below, and their relative commercial development stages, are shown in Figure 2 below. For
the detailed cross-comparison of the company offerings, see the full report on the Intelligence Platform.
Commercial
Development
Stage
Early/Late
Majority
SmartCover
Systems
Optimatics
Early
Adopters
Enging
Baseform
Fracta
Aganova
Demonstration
PlutoShift
Emagin
BuntPlanet
Pilot
Applied
Research
1998
2000
2005
2008
2011
2015
2016
Year founded (not to scale)
Figure 2: Technology development stage vs year founded of companies featured in this report
Verdict
Historically, water utilities are often perceived to lag other industries when it comes to technology adoption and
innovation. While we often view the water industry as a staid, slow moving creature, the reality is that the water
community continues to adopt and adapt to evolving trends and conditions. This is true of innovation in treatment
technologies, adoption of customer-oriented business process experiences, non-revenue water reduction,
identification and control of new and emerging contaminants.
Limited capacity in data acquisition, and the tools necessary to curate and analyze that data have hindered
the use of “big data” in water. However, with the availability of open data SCADA systems, advanced metering
infrastructure (AMI), rapidly decreasing cost of sensors, and the availability of massive data sets, including weather
and climate, hydrological, and remote sensing information, water utilities now have a significant opportunity to
expand their data footprint.
Artificial intelligence will fundamentally change the way water utilities operate and manage water resources in
an increasingly volatile environment. To be ready for this revolution, the water sector’s immediate challenge is to
structure data and smart water management services to maximize AI’s potential.
7
02
CRISIS/TRENDS WATCH
Microplastics monitoring and removal
What is it?
Microplastics are defined as plastic particles of less than 5mm in size. There are two main categories:
•
Primary microplastics are particles used in personal care products (PCP’s) and commonly include cosmetic
beads found in scrubs and shampoos.
•
Secondary microplastics are derived from larger plastic particles and include the release of fibres from textiles,
or fragments of larger plastics degraded in the environment.
There are close links between urban environments and microplastics, with some of the largest concentrations of
microplastics found in some of the most densely populated areas of the world, such as the canals of Amsterdam
(100,000 items/m3) and off the coast of South Korea (16,727 items/m3)1.
Why are microplastics an important issue?
There is some evidence to suggest that microplastics pose a risk to organisms, either by the direct physical ingestion
of particles or indirect exposure to organic contaminants adsorbed on the surface of microplastics. In other words,
plastics can adsorb and concentrate pollutants, such as PAHs, PCBs and pesticides as well as heavy metals. One
study into the Lawrence WWTP in Kansas also found bacterial biofilm on the plastic surface of micro-particles
sampled2 .
As such, the presence of microplastics in the environment is contributing to increasing concerns shared by both by
the scientific community and the general public.
Microplastics are attracting increasing research attention; a systematic review of peer-reviewed papers containing
the word “microplastic” undertaken by Burns & Boxall (2018) has found an increase from 10 papers in 2010 to
306 papers in 20171. Much of this research is driven by the fact that the risks posed by microplastics have yet to
be fully characterised. One of the major reasons for this has been a lack of a robust and systematic process of
sampling and detection, caused in part by a lack of available technologies which can meet the requirements of
monitoring programmes. Studies are also taking place on the degree to which wastewater treatment plants may
be responsible for the introduction of microplastics to the environment.
Extent of research
Within the water industry, the growth in research has been far slower than the study referred to above might suggest.
Taking the annual WEFTEC event as an example, which usually features around 500 papers and presentations, the
2019 event programme featured just two papers addressing microplastics in water. One was “Reliably Quantifying
Microplastics within a Wastewater Matrix”, by Tyler Mayo of the University of Kansas. The paper compared various
measurement methods including FTIR and Raman spectroscopy, Nile Red staining and visual identification. The
second paper was “Performance of conventional activated sludge (CAS) and aerobic granular sludge (AGS)
reactors for microplastics removal during municipal wastewater treatment” by Omolola Odunola, also of the
University of Kansas. The paper’s findings suggest that the AGS method retains more microplastics in the sludge.
__________________________________________________________________
1
Burns, E.E. & Boxall B.A. “Microplastics in the Aquatic Environment: Evidence for or Against Impacts or Major Knowledge Gaps”
(2018), Environmental Toxicology and Chemistry, Vol. 37, pp.2776 – 2796.
2
Water Research Foundation web cast, December 13, 2018: https://www.waterrf.org/system/files/resource/2019-07/
Webcast121318_FINAL.pdf
8
At the previous WEFTEC in 2018, there were two discussion sessions, and a presentation titled “Fate of Microplastics
Through North America WRRFs: An Initial Survey”, which was also from the University of Kansas and was also coauthored by Tyler Mayo. There was one other session, “No Lego in my Effluent Please - Danish Perspective on
Microplastics”. This was presented by Per Nielson of VCS Denmark. The focus was on the search for a consistent
method for detection and removal, and presented results from measuring microplastics levels in the effluent of
the 410,000 PE Ejby Mølle WWTP in Odense, Denmark. The study concluded that 99.6% of microplastics were being
removed by the plant, and speculated that CSO events may be more of a problem than wastewater treatment
effluent in terms of microplastics.
How are microplastics currently detected and measured?
Visual identification methods using the naked eye and dissecting microscopes are the most common methods
used for the detection and measurement of microplastics. While these are simple and cost-effective, particles
may be misidentified, with cellulosic fibres from toilet paper and clothes leading to false estimations of relative size
fractions and identification error rates as high as 70%.
More effective analytical methods such as fourier transform infrared spectroscopy or raman scattering allow for
particles to be characterized in terms of chemical composition and lower the limit of size detection to between
1 μm – 10 μm, ensuring distinction from natural particles or cellulosic fibres. While these methods are more robust
compared with simple visual inspection, issues concerning biofouling, disintegration and small size (less than 1 μm)
of particles may limit the potential of these methods to undertake robust measurements.
As the research papers outlined above discuss, there is no widely-agreed best practice in terms of measuring and
sampling microplastics.
How effective are wastewater treatment plants in removing microplastics?
It is estimated that primary treatment can remove anywhere between 50% - 80% of microplastics, while secondary
and tertiary treatment typically attain higher removal rates of 90% - 99.99% (See Table 1).
While these figures suggest that effluent should be free of microplastics, particles are eliminated by skimmers in
primary treatment or become fouled or subject to flocculation, redirecting particles to primary and secondary
sludges rather than effluent. This accounts for the fact that more than 95% of microplastics in the treatment process
are more likely to be found in sludge rather than remaining in the aqueous phase and being discharged to the
environment. This also suggests that the spread of biosolids to land may constitute a primary exposure pathway of
micropollutants to the environment.
Table 1: Typical reported removal rates of microplastics at the various stages of a wastewater treatment plant.
Treatment type
Reported removal rates
Primary
50 – 78%
Secondary
96 – 99%
Tertiary
90 – 99.9%
Membrane bioreactor
72 – 99%
How is the problem being tackled?
Legislation focusing on microplastic has been limited:
•
UK Environmental Protection (Microbeads; England) Regulations (2017) which banned microbeads in wash-off
cosmetic products.
9
02
CRISIS/TRENDS WATCH
•
The Microbead Free Water Act (2015) in the United States.
•
SB 1422 - CA Safe Drinking Water Act in California, which would require the State Water Resources Control Board
to adopt regulations requiring annual testing for, and reporting of, the amount of plastics in drinking water,
including public disclosure of those amounts.
Major gaps in the legislation remain. Legislation enacted to date has focused solely on microplastics of primary
origin alone, despite the fact that they account for less than 10% of particles found, where monitoring studies have
focussed on characterization of microplastics. The remaining 90% of particles are believed to be of secondary origin
(see table 2).1
The focus of legislation so far on primary particles is mirrored by the research focus, which has also concentrated
on primary particles. This is likely because “usage/ sales volume multiplied by microplastic content enables a
rough emission estimation for down-the-drain microplastics, which are expected to enter the environment through
wastewater treatment plants” (WWTPs; Sundt et al. 2014). 1
Table 2: Typical microplastic composition in effluent
Treatment type
Fiber
Primary
Mainly fibres
Secondary
36-48%
Fragment
Bead/spherule
46-67%
0-9%
Tertiary
8.80%
91%
Not reported
Membrane bioreactor
61-84%
11-33%
0%
BlueTech verdict
The current lack of standardization in sampling methods makes cross-analysing and comparison of monitoring results
difficult to achieve. This affects the ability to properly assess the risk posed by microplastics to the environment. Burns
and Boxall (2018) conclude that “Microparticles do occur in the environment, but based on our analysis, there is
currently limited evidence to suggest that they are causing significant adverse impacts or that they are increasing
the uptake of hydrophobic organic compounds into organisms....based on the current evidence, it is impossible to
conclude that microplastics do or do not cause harm to the environment.”
The lack of robust data has dampened legislative drivers or public demands for action. As such, it is too early to
categorise microplastics as a crisis-driven market. However, this may change as further research studies take place
concentrating on establishing a proper risk characterisation for microplastics.
In the long term (2030 onwards), it is likely that there will be legislative pressures behind a market for microplastics
detection and removal technology, since by then more research will have been carried out into the effects, methods
for detection and removal. Until then, the opportunity in this area is likely to be focussed on sensor technologies and
monitoring equipment. The prime unmet need is for equipment with the ability to detect and correctly identify
microplastic particles of less than 1 μm in size.
The amount of plastic in water bodies and oceans is certain to keep rising. However, BlueTech estimates that it is
unlikely that there will be significant drivers behind market growth in this area before 2030.
10
03
INNOVATION
INVESTMENTS/ACQUISITIONS/IPOS/JVS
COMPANYSCOUTING
REPORT
Microvi Biotech
What is it?
Microvi’s MicroNiche Engineering (MNE) platform is a microbial encapsulation technology which improves the
performance of biological treatment systems. The key selling point for the MNE platform is the self-sufficiency of
the microbes which are retained within their biocatalyst. The encapsulated micro-organisms eliminate sludge
production and intensify the treatment process. The biocatalyst structures and organisms utilized by Microvi are
protected by IP. The chemical composition of the biocatalyst is protected through a trade secret.
The MNE platform is marketed toward municipal wastewater and drinking water applications. In the municipal
wastewater market, Microvi has two late-stage pilot plants demonstrating secondary and tertiary NH3 removal in
the UK. It has also won a sidestream deammonification project in California. In the drinking water market, Microvi
has recently won a 5.5 MGD contract focused on nitrate removal.
The municipal wastewater market is highly commoditized. If Microvi is to gain significant market share, its
encapsulated solution will have to outcompete IFAS/MBBR & GAS on cost. In drinking water, Microvi’s commercial
success appears to provide evidence that the encapsulated solution is more cost-effective than IX. While other
companies offering encapsulation technologies have been stagnant, Microvi seems to have found a strategy
sufficient for short-term growth.
Investment/acquisition manager
Microvi has raised at least $6.25M in venture capital to date. The company raised a $1.25M Series A round in 2009,
backed by Perry Solomon, a Microvi board member and executive in residence with Battery Ventures. The Company
subsequently raised a $5.0M Series B round in 2015 backed by SKion GmbH, the investment arm of Susanne Klatten
focused on industrial investments. Microvi has raised an additional $7.6M in government grants, which has allowed
The company to fund research and development, often through prestigious University laboratories. For example, in
2013, Microvi and the Lawrence Berkeley National Lab were jointly awarded a $3.5M ARPA-E grant for gas-to-liquid
conversion.
At this stage, it is unlikely that Microvi would be interested in raising a Series C investment. The company is at the
cusp of expanding its drinking water technology in California and has two pilots assumed to be nearing completion
in the UK. Microvi’s valuation could raise substantially subsequent to positive progress in either market, which could
be achieved in the short term. Microvi is more likely a possible target for strategic acquisition. For companies offering
traditional biological technologies, acquiring Microvi offers the opportunity to “future-proof” their portfolios.
Achilles heels’
One major technical concern with Microvi’s technology stems from the use of a single organism for treatment. If
there is an event which manages to wipe out the all of the bacteria, the entire media would need to be completely
replaced at a cost which may be un-feasible to the end user. It is not clear if the system has been truly stress-tested
at any level.
In the drinking water market, there is concern surrounding whether an encapsulated solution can be economically
feasible. If the confluence of factors which made the drinking water project in Cucamonga, California, feasible (an
arid climate and high cost of brine disposal) are necessary, the size of the total addressable market will be limited.
In the municipal wastewater market, there is not enough evidence to suggest that Microvi’s MNE technology can
11
03
COMPANY REPORT
truly outcompete IFAS/MBBR or granular activated sludge. Microvi’s pilot projects in the UK have been on-going for
more than a year, and subsequent contracts should be awarded in the next 1-2 years if results are positive.
Innovation Type: Value Driven
Microvi’s technology offers potential value which cannot be achieved with traditional methods. While tightening
regulations do put pressure on many utilities to adopt new technologies, the MNE platform is not a unique solution
to these regulatory shifts. Potential customers will adapt Microvi’s technology if it is the most cost-effective way to
address regulatory challenges.
BlueTech verdict
Microvi’s technology and recent progress give reason for excitement, and many of the market risks mentioned in
this report will be addressed in the next one or two years. If Microvi can make further progress in the US drinking
water market and win secondary/tertiary treatment contracts at the near close of related ongoing pilots, the
company would indeed be capable of displacing existing product offerings.
BlueTruffle: 4 Star Rating (Max 5)
✪ ✪
Size of Addressable Market:
Although the municipal wastewater and drinking markets are large, competition is fierce and there are many
competing technologies. In the drinking water market, it is yet to be seen that Microvi’s technology can be cost
effective outside of geographies where an arid climate and high cost of brine disposal makes encapsulation cost
effective. In the municipal wastewater market, it is too early to tell if encapsulation can outcompete IFAS/MBBR or
GAS.
IP Position: ✪
✪
Microvi has a robust patent portfolio covering key technical aspects of its biocatalyst. It has chosen to keep the
chemical composition of its biocatalyst a trade secret to reduce the risk associated with technology infringement.
Microvi’s technology has >5 years of research behind it. It would take significant investment in R&D for a newentrant to close the technical gap.
Management Team: ✪
✪
The executive team has successfully scaled Microvi to the level it is at today and is complemented by an experienced
board of directors who believe in the technology.
Technology Innovation: ✪
✪
Key issues facing traditional biological treatment, such as sludge production and process efficiency, are addressed
by Microvi’s MNE platform. If the technology can prove to be commercially feasible, it is likely that Microvi will find
wide-scale market adoption.
✪ ✪
BlueTech Opinion:
While Microvi’s technology and recent progress is impressive, there are a few commercial milestones Microvi must
achieve before it can truly represent a shift in the industry.
12
04
INNOVATION
INVESTMENTS/ACQUISITIONS/IPOS/JVS
SCOUTING
INNOVATION
TRACKER
Cembrane
Technology Offering: Cembrane ceramic membrane technology What is it? A flat-sheet ceramic membrane with a pore size of 0.1µm. The silicon carbide
composition of the membranes ensures resistance to chemicals, and discourages fouling, as well as allowing for periodic sludge loadings of up to 50,000 ppm
without clogging.
Website: http://cembrane.com/
Strong Management Team: 0.5/1. The Cembrane management team brings a
Technology Development Stage: Early and Late Majority
wealth of experience from both technical and commercial backgrounds.
Company Revenue Stage: Revenue Positive
Strong IP Position: 0.5/1. One Danish patent. International patents pending.
Disrupt-o-meter: Moderately Disruptive. Cembrane has found its niche
Innovative Technology / Business Model: 1/1. One of the most innovative
in a crowded market by focusing on providing small scale treatment
aspects of the ceramic membrane is the ability to combine with other non-
systems (less than 600 m3/day) for industrial wastewater and drinking
filtration technologies (such as ozone and powdered carbon) for the removal of
water treatment purposes.
micropollutants.
BlueTruffle Rating: 4/5
BlueTech Opinion: 1/1. Cembrane is the third largest player in the ceramic
Large Addressable Market: 1/1. Applicable for a variety of uses, including membranes space (in terms of number of commissioned installations), having
drinking water treatment, municipal and industrial wastewater treatment
installed 50 plants between 2015 - 2019. It is likely to remain as a major player in
and can be fitted into membrane bioreactors.
this market.
CSIR
Technology Offering: Algae lagoons What is it? A robust, low-tech algae-based lagoon wastewater treatment process based on Advanced Integrated Water
Pond Systems (AIWPS). The process does not require pumps (unless algal biomass is taken out) but relies on gravity. The algal biomass used in this system is
grown at a CSIR raceway pond and is cultured for high P removal and to withstand high ambient temperatures.
Website: https://www.csir.co.za/
Strong IP Position: 0/1. No patent has been filed for the technology.
Technology Development Stage: Early Adopters
Innovative Technology / Business Model: 1/1. The process is simple to operate, so
Company Revenue Stage: Revenue Positive
that the operators only require minimum training (e.g. color-coded tables show
Disrupt-o-meter: Low Disruptivity. Due to its nature, algal treatment is
when inoculation with fresh algae species is needed). Another value proposition
poised to be a niche solution and not expected to be disruptive in the
is that this process can be retrofitted into existing pond systems. Algal biomass is
wastewater market.
recovered as feed for ornamental fish.
BlueTruffle Rating: 3/5
BlueTech Opinion: 1/1. There are currently 7 reference sites in South Africa,
Large Addressable Market: 0/1. The process is applicable as a retrofit
Botswana and Malawi. Additional plants are planned in Mauritius, Namibia and
where ponds are already in use or where climate and land conditions are
Mozambique. The largest of the operating systems treats 4,200 m3/d over a
suitable.
1-hectare surface area, 1.5m depth and at a 28h HRT. Smaller systems treat 500
Strong Management Team: 1/1. CSIR is a research organization with
m3/d. CSIR’s approach appears to be commercially viable in underdeveloped
experienced management.
economies.
Hydropath Technology
Technology Offering: HydroFLOW What is it? HydroFLOW is a physical water conditioner that reduces scaling through precipitation. The technology uses a
ferrite coil wrapped around a pipe to deliver a 90V AC potential through a capacitive discharge cycle at 150 kHz, which inductively propagates through the
water system. The technology is differentiated from other pulsed power technologies as it claims additional performance of corrosion prevention through the
formation of a coaxial magnetic field.
Website: http://hydropath.com/
Strong IP Position: 1/1. The technology is patented.
Technology Development Stage: Early Adopters
Innovative Technology / Business Model: 1/1. Pulsed power technology for
Company Revenue Stage: Revenue Positive
water treatment is an innovative way to prevent scaling without chemicals. This
Disrupt-o-meter: Moderately Disruptive. As regulations force companies to technology has the additional benefit of preventing corrosion using a magnetic
address chemical discharge, chemical-free treatment technologies may
field.
become disruptive in the future.
BlueTech Opinion: 1/1. Over the past 20 years, the company has established itself
BlueTruffle Rating: 4.5/5
in cooling and boiler water applications with a large footprint of sold units. For
Large Addressable Market: 1/1. The company addresses a substantial
about 6 years, the company has been also focusing on applications in wastewater
market; prevention of scaling from salt precipitation and biofilm formation. treatment with an increasing number of references.
Strong Management Team: 0.5/1. Small yet experienced team.
Sigrist-Photometer AG / bNovate Technologies
Technology Offering: BactoSense What is it? BactoSense is a fully automatic flow cytometer that measures the total microbial cell count or intact cell count
present in a water sample within 20 minutes. The catridge system allows up to 1,000 measurements autonomously without any chemicals handling. The device
is also IP65 protected, allowing its use in industrial environment.
Website: https://www.photometer.com/en/
Strong Management Team: 1/1. A well-established company with a strong
Technology Development Stage: Early and Late Majority
management team. The current CEO was appointed in September 2019.
Company Revenue Stage: Revenue Positive
Strong IP Position: 0.5/1. The technology’s patent is held by bNovate Technologies.
Disrupt-o-meter: Moderately Disruptive. The technology will likely be
Innovative Technology / Business Model: 1/1. The technology has been developed
disruptive to manual lab analysis of microbial contaminants that is time
by Swiss company bNovate Technologies while Sigrist-Photometer manufactures
consuming (days vs minutes).
and actively commercializes the technology.
BlueTruffle Rating: 4.5/5
BlueTech Opinion: 1/1. Considering the relatively recent launch of this product
Large Addressable Market: 1/1. The addressable markets include drinking
(2017-2019) and the fact that around 80 devices have been sold already,
water, food & beverage, academic research applications as well as
BactoSense appears on course to reach wider adoption in the near future.
pharmaceutical and cosmetics industry.
13
05
NEW TECHNOLOGY
DEVELOPMENT AND PATENTS
BlueTech® Patent Watch
IP trends, innovation opportunities and strategic insight from the BlueTech Intelligence Platform, giving you the latest
patents applied for by, or granted to, BlueTech Innovation Tracker companies over the past month. For the full updated
searchable database see the BlueTech Patents Portal.
Applicant
Patent no.
Granted/Applied
Title (original)
Alfa Laval
WO2019234015A1
Applied
A plate heat exchanger, a heat exchanging plate and a method
of treating a feed such as sea water
All/Unitika/Osaka Gas
Chem
WO2019244903A1
Applied
Activated carbon
Aqua Q
EP3102936B1
Granted
Method for online monitoring of water quality
Atlantis Technologies
US20190367386A1
Applied
Spirally wound electric double layer capacitor device and
associated methods
Atlantium
Technologies
US10494273
Granted
Method and apparatus for liquid disinfection using light transparent
conduit
BKT
WO2019245209A1
Applied
Cow excreta treatment apparatus and method
BKT
US20190367399A1
Applied
Nitrogen-rich wastewater treatment apparatus using partial
nitritation sequencing batch reactor tank linked to ammonium
oxidizing bacteria granule production tank and anaerobic
ammonium oxidation
Cambi Technologies
EP3458413B1
Granted
Method for recovery of phosphate
Dow Chemical/Rohm
And Haas
WO2019232011A1
Applied
Inhibition of silica scale using bottle brush polymers
DuPont
EP3383516
Granted
Chromatographic Separation Of Propionic Acid Using Strong Base
Anion Exchange Resin
DuPont
EP3328524
Granted
Filter Assembly Including Spiral Wound Membrane Module And
Brine Seal
Ecolab
US20190389741A1
Applied
Enhanced foam fractionation of oil phase from aqueous/oil mixed
phase via increased viscoelasticity
Emefcy
US20190389754A1
Applied
Module, reactor, system and method for treating water
Evoqua
WO2019236589A1
Applied
Combination of dissolved air flotation and fixed film bioreactor
solutions
Fuelcell Energy
US10516180
Applied
Carbon dioxide removal system for anode exhaust of a fuel cell
Kuraray
US10500527
Applied
Ballast water production method and ballast water treatment
system
Kurita Water Industries
WO2019230706A1
Applied
Water processing control and monitoring device
Metawater Co
US20190381478A1
Granted
Activated carbon slurry supply method
Micronic Tech
US10507402
Applied
System for liquid purification
14
Applicant
Patent no.
Granted/Applied
Title (original)
Microrganic
Technologies
US10522861
Applied
Electroactive cultures and apparatuses therefor
Orege
WO2019229196A1
Applied
Treatment method and device for dehydration of organic sludges
Oxymem
EP3582883A1
Applied
A low-pressure, reversible airlift mixing system for use with a
membrane aerated biofilm reactor
Porifera
US10500544
Granted
Advancements in osmotically driven membrane systems including
multi-stage purification
Siemens Energy
US10513448
Granted
Electrooxidation at elevated pressures
Suez
EP2800730B1
Granted
Coagulation/flocculation apparatus for the treatment of a
hydraulic flow, and implementation process
Veolia
US20190389753A1
Applied
Biological treatment installation with sequencing batch reactor
integrating purifying plants and moving biomass carriers, and
method of implementation
Voltea
US20190382289A1
Applied
Apparatus and method for removal of ions
Winner Water Services
US10494270
Granted
Water purification
BlueTech comment
In this month’s patent review, we present three very different innovations:
WO2019245209A1, “Cow excreta treatment apparatus and method” from BKT addresses nutrient removal from dairy
cattle manure, which is a higher pH and alkalinity than hog manure due to the feeding and excretion of calcium
carbonate. The market needs are regulatory requirements which have limited the land application of such treated
waste due to its high nutrient content. BKT has published a system that includes the step of raising the pH by removal
of carbon dioxide using air bubbles, with subsequent ammonia stripping in addition to what appear be conventional
unit operations for biological nutrient removal and solids management.
WO2019232011A1, “Inhibition of silica scale using bottle-brush polymers”, from Dow Chemical. Bottle-brush polymers
are characterized by a very long chain with repeating short pendant groups grafted to, or branched from, the chain.
In this innovation, the use of specific bottle-brush polymers has been demonstrated as a new class of materials to
inhibit the formation of silica scale for a wide range of water treatment applications. Whereas such polymers are
interesting, it was not demonstrated to be a marked improvement over other silica inhibition chemistries. Nonetheless,
the arena for future improvements could be locked in for Dow Chemical by this composition of matter patent.
WO2019236589A1, “Combination of dissolved air flotation and fixed film bioreactor solutions”, from Evoqua describes
an innovative combination of sequencing in which a DAF unit is placed between a mixed-liquor contactor (which
takes the solids from the DAF) and an aerobic, attached growth, treatment reactor. Such a combination reduces the
BOD load on the reactor while minimizing solids formation, a common trend for improving sustainability of wastewater
treatment operations. The oxygen from the DAF can be used for BOD removal in the contact tank or reactor as
opposed to a separate, downstream, operation. A number of operational advantages may be realized with this
configuration.
15
FEBRUARY 2020
BLUETECH
INTELLIGENCE
BRIEFING
BlueTech Forum 2020 | Innovating for Impact
As a global community of water professionals, we have developed technology with the capacity to
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to clean water and safe sanitation. It is with this potential in mind that we announce the theme of BlueTech
Forum 2020 as Innovating for Impact, which will focus on the actions necessary to allow us to solve water
in our generation.
BlueTech Forum is an opportunity to discuss the barriers holding us back and explore what will happen
if every government, utility, corporation and municipality steps up, invests smartly, rethinks policy and
finance models, and accelerates the process of bringing solutions to market. What impact could our
community have then?
Bringing a sharper focus to topics including innovation, sustainability, natural treatment, finance and
policy will be our distinguished speakers, who will reinforce our belief that if we take a different approach
to managing and financing water technology,
we can impact the global environmental,
urban and human landscape for the better
and address problems that many would see
as unsolvable.
Join us for our 10th Annual
BlueTech Forum
June 3rd-4th, Vancouver Convention Center
A special rate is available to all BlueTech
Research clients. Please contact us to receive
your discount code.
For more information, contact:
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Europe: +353 21 233 9380
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www.bluetechresearch.com