LIVING MACHINES BY JOHN TODD ECOLOGICAL DESIGN

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A BIOMIMICRY CASE STUDY LIVING MACHINES BY JOHN TODD ECOLOGICAL DESIGN

The commercialization story behind the wastewater treatment & water body remediation process that mimics natural wetlands.

Published by Synapse by Biomimicry 3.8 Written by Biomimicry Business Intelligence

© 2017 Biomimicry Advisory Services & Biomimicry 3.8. All rights reserved. © John Todd Ecological Design © John Todd

BIOLOGY DESIGN Wetland ecosystems cycle and purify water Eco-Machines mimic wetlands to produce clean water

4 | SYNAPSE.BIO SYNAPSE.BIO | 5 Biomimicry (from bios, meaning life, FORWARD CONTRIBUTORS and mimesis, meaning to imitate) is & SUPPORTERS Forward a scientific design discipline that seeks 06 08 Biomimicry for Innovative sustainable solutions by emulating Business Opportunities ’s time-tested patterns and EXECUTIVE INDUSTRY Biomimicry is not itself a strategies. product but a process, drawing 13 SUMMARY 17 OVERVIEW on strategies observed The core idea of Biomimicry is that nature, in natural organisms and practices in order to spark after 3.8 billion years of research and innovation. development, has already developed COMPANY COMMERCIALIZATION solutions to many of the problems facing OVERVIEW PROCESS & STRATEGY industry, government and agriculture. 23 26 Such problems include packaging, trans- portation, energy production, non-toxic chemistry, carbon sequestration, and crop FINANCIAL CONCLUSION production. 52 STRATEGY 56

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Contributors & Supporters

RESEARCH AND EDITING

Jacques Chirazi, Managing Director & Senior Editor, Biomimicry Advisory Services Constanza Jozami, Editor Gabriel Canale, Editor Andrew Scanlon, Research Analyst Leon Wang, Research Analyst Jingting Shao, Research Analyst Xinyi Wang, Research Analyst

ADVISORS

Rosibel Ochoa, Executive Director, UC San Diego von Liebig Entrepreneurism Center Stuart Valentine, CEO, Centerpoint Investing Beth Rattner, Executive Director, The Biomimicry Institute Hazel Henderson, CEO, Ethical Markets Certified B Corp Katherine Collins, CEO HoneyBee Capital Jamie Brown Managing Partner, Biomimicry Switzerland Douglas Kot, Senior Professional, DNV GL Beth Brummitt, CEO, Brummit Energy Nicole Miller, Managing Director, Biomimicry 3.8

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At Synapse by Biomimicry 3.8, we are dedicated to providing biomimicry intelligence that The ability to innovate is a key driver of productivity, competitiveness, and prosperity. informs, inspires, and empowers businesses to leverage nature’s genius in solving their own Innovation requires entrepreneurs to rethink their strategies and adopt new approaches innovation challenges. to their businesses, embracing new technologies and manufacturing opportunities that can be the difference between success and failure in the business world. By publishing biomimicry case studies that detail the commercialization stories experienced by biomimetic innovators, we hope to expose key insights and lessons learned about getting Biomimicry innovations are fertile hunting grounds for innovative business opportunities. the most value out of the biomimicry approach as evidenced by real world projects so that Due to this immeasurable potential, corporate executives, investors, policymakers, and others are better prepared to take advantage of nature’s 3.8 billion years of research and entrepreneurs across many industries look to this emerging field to drive sustainable development. growth.

While these case studies are detailed, we have highlighted critical take aways throughout the But what are some powerful technology trends that can drive company success? What are document to provide at-a-glance learnings about market viability, the competitive landscape, the important factors that should be considered when trying to identify the next big trend? the environmental issues, industry drivers, biomimetic insights, and more. Whether you are Biomimicry’s inherent value lies in the answers it proposes to these questions. browsing or diving deep into the details, this case study will provide strategic insight for your next biomimicry project regardless of sector.

SYNAPSE BY BIOMIMICRY 3.8 BIOMIMICRY ADVISORY SERVICES MISSION is a premium biomimicry intelligence and GET FULL ACCESS (BAS) is an independent financial market advisory service to help our innovative clientele research and advisory organization that BAS’ mission is to help leaders in the effect positive change by staying ahead of the ✓ Live & recorded webinars provides strategic advice and ongoing intel- commercial, public, and social sectors latest trends in biomimicry, empowering their ✓ Expert inquiry hours ligence on emerging biomimicry technol- develop a deeper understanding of teams, and filling their innovation pipelines. ✓ Latest biomimicry news ogies. BAS is a project initiative of Biomimicry biomimicry innovations and to provide Since 1997, Biomimicry 3.8 has been the global ✓ Biomimicry intelligence briefings Switzerland. a fact base that contributes to financial thought leader and consulting experts on decision making on these emerging biomimicry across sectors. technologies.

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Executive Summary John Todd Ecological Design (JTED) is a Massachusetts-based sustainable water management company that designs and integrates natural systems for the treatment of wastewater and the remediation of degraded water bodies. The designs are based on robust ecological systems in nature that effectively cycle nutrients and water.Harnessing and natural processes in the system allows JTED’s machines to treat the most difficult contaminants and human waste streams, meeting and surpassing regulatory requirements.

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Since it was founded in 1989, and reduce nutrient levels, only invested in constantly the company has worked bringing the water body back evolving the technology, on over 80 projects on five to ecological health. but also in making sure its continents and 11 countries. projects create a positive net These projects have dealt with As the company continues impact on both the community domestic and industrial waste to take on projects all over and the environment. JTED streams and remediation of the world, it currently focuses designs its ecological waste contaminated urban canals, on investing in research treatment systems to serve as storm water ponds, landscape and development to further an effective utility, an aesthetic features, and natural lakes. develop their tools and amenity, and a healthy habitat. JTED has experience deliv- processes. JTED tries to source ering global technical support their R&D investment from to natural water treatment clients as much as possible, INSPIRED BY NATURE projects in both rural and urban using their contributions to environments and in both solve challenges that the JTED’s success comes from warm and cold climates. The company faces. Each project applying time tested strate- company employs and adapts is financially independent and gies of natural processes and “living machines”, including self-funded, with additional creating mechanically simple their patented Eco-MachineTM, a resources coming from but biologically complex treat- cost-competitive living system clients as well as government ment systems. The individual that creates distinct treatment funds and research grants. projects solve the contamina- zones that use plants, microbial The company is completely tion challenges that companies species, fungi, beneficial sustainable with revenues of and communities face, but bacteria and aquatic species up to $1 million per year as JTED continues to aim beyond to convert “waste” into a each project can generate that with their vision to reinte- resource. For the remediation an average of $150,000s. grate human life back into the of water bodies, the company Key takeaways on JTED’s biological cycle with natural, offers Aquatic Restorers that success revolve around the safe, and effective systems. jumpstart the of a company’s culture, practices,

water body, digest sediments and vision. The team is not Ecological Design © John Todd Eco-Machine at The Omega Center in Rhinebeck, New York

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Industry Overview

WATER “Water as an asset class will, in my view, become The most important thing about water is that all living things eventually the single most important physical need it to survive. Water is an essential resource in almost commodity based asset class, dwarf ing oil, copper, all human activities, such as: growing and processing agricultural products, and precious metals.” food, manufacture of products, transportation, mining, construction, medicine and energy production. Willem Guitler, Citigroup’s Top Economist

“Water is the petroleum for the next century” 2008 Goldman Sachs Report

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GLOBAL WATER USE BY SECTOR Source: Vital Water Graphics. UNEP, Nairobi (2002)

GROWING DEMAND WATER RECYCLING According to The Global Compact Water Mandate, A more sustainable model of recycling programs that will have been no documented the demand for water among water usage is desperately allow them to use water more cases of human health AGRICULTURE industry and agriculture needed by both humans and than once, and will lessen the problems due to contact with is expected to increase the environment. Water crises impact on water resources recycled water that has been significantly due to popula- around the world are not new, and aquifers. Water recycling treated in compliance with tion growth and economic and many countries are strug- is reusing treated wastewater regulatory standards. development. Freshwater gling to provide their citizens for beneficial purposes such consumption worldwide has with this essential commodity. as agricultural and landscape Water recycling is a marvel more than doubled since World There are cities on every irrigation, industrial processes, of the 21st century, but it has War II and is expected to rise continent that are running out toilet flushing, and replenishing limitations. In an ideal world another 25 percent by 2030. of fresh water, including Tokyo, groundwater basins. Waste- water could be recycled as We can notice, especially in Mexico City, Los Angeles, water treatment can be tailored many times as needed, but the domestic and industrial London, Cairo, Sao Paulo, and to meet the water quality that is not the case with current INDUSTRIAL sectors, that most of the water many more. Leading cities requirements of a planned technologies and processes. that is withdrawn is wasted at around the globe have under- reuse. Recycled water for Currently all the water that the end of the use cycle. Most stood the importance of taking landscape irrigation requires enters the human consumption water is used only once before full advantage of this precious less treatment than water cycle will eventually be trans- it becomes wastewater and is resource. Cities and municipal- which is recycled for human formed into wastewater. discharged into natural bodies ities have implemented water consumption. In the U.S. there of water, which is a major concern for all living organisms.

DOMESTIC

WITHDRAWAL CONSUMPTION

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WASTEWATER WATER DEGRADATION Wastewater is any water that has been Degradation of water quality is the adversely affected in quality by human contamination of bodies of water such as activities. Wastewater can originate from lakes, rivers, oceans, aquifers and ground a combination of domestic, industrial, and water by pollutants. Water degradation agricultural activities, as well as storm- damages and harms the lives of humans, water from surface runoff. animals and plants in noticeable ways.

© NASA WATER QUALITY GLOBAL MARINE DEAD ZONES

Some of the sectors in need into rivers or oceans. Unfortu- world are suffering. Even cities The expansion of harmful become dead zones. These States. The number of stream, of wastewater management nately, this does not happen with the most sophisticated algal blooms over the past are zones where water oxygen river, lake, wetland, and estuary solutions are: manufacturing, in the majority of countries and advanced water treatment 20 years is responsible for levels are too low for other restoration projects is growing municipal, pharmaceuticals, around the world. The plants are having trouble losses of approximately $100 organisms to survive2. yearly. Current federal initia- food and beverage, electronic technology to treat wastewater preventing pollutants from million per year nationwide1. tives call for a wide range of components, paper and paper- is expensive and generally entering bodies or water, as About 1.7 million tons of Events such as these have restoration actions, including board production, refined requires astronomical amounts their treatment plants have not agricultural nutrients, nitrogen underlined the need for improving or restoring 25,000 petroleum production and of energy and chemicals. been able to eliminate 100% of and phosphorus mainly, are a change in our water miles of stream corridors; consumption, electricity gener- contaminants. Aquatic environ- discharged into the Gulf of management policies. Conse- achieving a net increase of ation, mining, and desalination. As a result of the lack of water ments around the world are Mexico yearly. This nutrient quently, the restoration of 100,000 acres of wetlands In highly developed countries, treatment facilities and the having major problems such as runoff causes significant algae degraded ecosystems to a each year; and establishing two wastewater is treated to meet inability to control wastewater invasive aquatic vegetation and blooms during summer months. close approximation of their million miles of conservation stringent regulatory standards runoff, major bodies of water dead zones. As a consequence of this remaining natural potential is buffers. before it can be discharged around the country and the method of wastewater disposal, experiencing a groundswell areas where algae blooms form of support across the United

1 Harmful Algae Bloom. (n.d.). Retrieved September 2, 2015. 2 www.nature.org/ourinitiatives/regions/northamerica/areas/gulfofmexico/ explore/gulf-of-mexico-dead-zone.xml#video 20 | SYNAPSE.BIO SYNAPSE.BIO | 21 Company Overview JOHN TODD ECOLOGICAL DESIGN IS A SUSTAINABLE WATER MANAGEMENT SERVICES PROVIDER THAT OFFERS ITS CUSTOMERS INTEGRATED AND COST-EFFECTIVE AESTHETIC SOLUTIONS TO WASTEWATER AND STORM WATER TREATMENT, AQUATIC ENVIRONMENT

John Todd, the founder of John Todd Ecological Design (JTED), began MANAGEMENT, AND BIO-SOLIDS CONVERSION. ITS PATENTED ECO-MACHINE™IS A his career as a “doom watch scientist,” focusing on how pesticides were BEAUTIFUL WATER GARDEN THAT CAN BE DESIGNED TO PROVIDE ADVANCED WATER disrupting and harming the environment. At one point in his research, TREATMENT BY ALTERING THE PLANTS, MICROBIAL SPECIES, AND DISTINCT TREATMENT he became heavily discouraged by what he was finding. His wife, Nancy ZONES TO SUIT THE CLIENT’S NEEDS. Jack Todd, who was very involved with his work, wondered if ecological concepts could help to serve people’s needs. At that point, John The Eco-Machine system without the need for hazardous patent applications have considered his knowledge of ecosystems and looked into converting mimics a natural and robust chemicals or large amounts of further developed methods them into technologies that could help solve these challenges. He ecosystem, such as a wetland, energy. The methodology was to efficiently and naturally knew that there were efficiencies, ingenuities, and symbiotic relation- that filters and recycles waste, conceived by the company’s treat wastewater and manage ships in nature that could provide powerful solutions. In 1969, the nutrients, and contaminants. founder, Dr. John H. Todd, in aquatic environments (US Todds co-founded the New Alchemy Institute to conduct fundamental The result is an efficient and cooperation with Barry Silver- 5389257 A, US 5618413 A, EP research into aspects of biology and related disciplines and apply this refined wastewater treatment stein, with the first U.S. patent 0728122 B1). to technology for ecologically derived human support systems. After system that is capable of published in Feb 11, 1992 much research and testing, John founded JTED in 1989 to offer a achieving high quality water (US 5087353 A). Additional cost-effective and renewable solution to the growing global water crisis.

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ORGANIZATIONAL STRUCTURE

US HEADQUARTERS | JTED’s headquarters and administration are located in Woods Hole, MA, but the company also has a research and development arm in South Africa that focuses on devel- oping new designs and systems. Currently, this privately held company, owned by John Todd, JTED offers design services, environmentally beneficial sediments. These passive Jonathan Todd (son) and Richard Sherman, has a total of seven members of staff. The staff includes construction services, and and aesthetically pleasing. systems use sunlight, reducing a biologist, an architectural advisor, business manager, project manager, and project coordinator consulting services for natural The system has no chemical energy costs and mainte- that is heavily involved with the company. JTED also employs a network of contractors, landscape resources treatment and additives and little to no sludge nance. JTED builds beautiful architects, and engineers to fulfill the needs of each individual project. JTED has built well over 80 management. The company production, so the treated ecosystems that are integrated installations in the past 30 years. Several of these water management systems have been operating harnesses the biological effluent can be used for many into public spaces to grow for over 20 years (and continue to perform well because the clients remain engaged). Most projects processes that operate in purposes, from recycling water product value from waste and (around 80%) are located in the U.S with the rest in Europe, Latin America, and China. JTED has nature within the form of an to toilet flushing or irrigation. restore trophic layers in the recently begun working in South Africa and has begun work on new projects in Nicaragua. engineered treatment system land. to successfully meet state Currently two major models and federal requirements of living systems available: SOUTH AFRICA SATELLITE NICARAGUA SATELLITE JTED is currently working in partnership with for water discharge. The Eco-Machine that treats waste- In Nicaragua, JTED’s focus is on installing a Biomimicry South Africa as well as local engi- solutions are focused on cost water and the Aquatic Restorer wastewater treatment system for an arboretum, neers to create low cost ecological infrastructure effective, highly diverse, and that reverses eutrophication although this project is still in the planning stage. for the Western Cape Government. The project resilient systems that are both in water bodies and digests The team is currently working on eight projects is designed to treat greywater generated by in varying stages (3 of these projects are Aquatic informal settlements and has been in process Restorers and the rest were commissioned to since 2013, with the final two year construction deal with human waste). As an example of how phase expected to reach completion in 2017. diverse these projects may be, one of these clients wants to develop a design to treat a zoo’s hippo exhibit while another is a pilot to treat effluent from bus wash water which may include road salt, industrial chemical compounds, etc.

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Co-founded New Alchemy Trademarked Founded JTED TM Institute for fundamental _____ Eco-Machine research _____ Patented numerous water _____ Remains a small treatment technologies ARK: test installation _____ company providing for principles of living customized solutions Installed large scale water machine _____ remediation systems all _____ Offers design, over the world Founded non-profit org, _____ construction, and Ocean Arks International consulting services Conducted R&D and case Focused on treatment and _____ studies Eco-Machine at The Omega Center in Rhinebeck, New York © John Todd Ecological Design restoration of water Continues heavy R&D investment and pilots

CONCEPT PHASE DEVELOPMENT PHASE COMMERCIAL PHASE

1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 CommercializationProcess & Strategy

After the Todds co-founded the New Alchemy Institute, Todd and his colleagues designed miniature ecosystems, largely self-perpetuating, which bring ecological principles into the service of human challenges. Aside from designing and prototyping food-producing systems and approaches for communities of people, this work has resulted in innovative new approaches to processing sewage and industrial wastewater with the use of “living machines”. Todd’s approach has involved appli- cations of micro-organisms, fish, and plants (phytoremediation) to restore, conserve, or remediate sewage or other polluted water.

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CONCEPT PHASE DEVELOPMENT PHASE COMMERCIAL PHASE

In 1974 Todd returned to his native Canada waste and for water remediation. These natural John Todd Ecological Design Inc. was formed in In recent years, JTED has successfully regis- to design and build “An ARK for P.E.I.” at Spry systems technologies were known as Solar 1990 as a partner company and joint enterprise tered the Eco-Machine as an official trademark Point on Prince Edward Island on contract to Aquatics, Living Machines, Restorers, Ecological to focus on providing commercial ecological of the company in 2014. The small team the Canadian federal government. When it was Fluidized Beds and Eco-Machines. Todd worked wastewater treatment systems. The company continues to tackle new and exciting projects completed in 1976, the ARK had become a test on growing a robust ecosystem within clear- continued to file patents on the solutions they focused on the remediation of impaired natural bed for many of the principles that became the sided solar tanks to remediate water and solve developed to treat wastewater and manage water bodies and soils. The company is a “living machine”. In 1982, the Todds founded pollution issues. Their first experiment was aquatic environments. After some time, they pioneer in the use of natural systems for the Ocean Arks International as a non-profit organi- carried out in 1983 at Cape Cod, on a lagoon focused on two ranges of products, the Eco-Ma- removal of chemicals, petroleum hydrocarbons, zation with the goal of spreading the ideas and that leached pollutants into local groundwater chines used for wastewater remediation, and endocrine disruptors, and other detrimental practices of ecological sustainability throughout resources. John seeded these tanks along the the Restorer used to reverse eutrophication water pollutants. With each project, their array the world. Among its major projects is the lagoon like a solar river, filled with diverse plant and reduce sediments. From this point the team of solutions continues to grow as they develop protection and restoration of the world’s waters. life, and soon after the lagoon was able to meet continued to build and install Eco-Machines and new technologies and methods to solve the Here, John Todd developed a unique and EPA swimming water standards with a 12-day Restorers all over the world. They also began to challenges of sustainable water management. effective array of ecological technologies called retention time. conduct case studies on their installations, and JTED aims to bridge the gap between the eco-technologies. Over the next decade, Ocean started to gain traction as their projects received human world and natural world, finding solutions Arks developed, and in some cases patented, a rewards and praise. to complete the loop to support both. number of ecological technologies for treating

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TARGET SECTOR &

MARKET ANALYSIS ADVANTAGES OF BROAD SCALE JTED SOLUTIONS OF MARKET

JTED has proven itself capable JTED is capable of targeting as wastewater in dire need of JTED living machines use no in different ways through cities Currently in the U.S. the of treating water in a cost multiple markets in need of some sort of treatment before chemicals and are thus less and regions. These systems market for water treatment effective and environmentally degraded water solutions. it can be discharged back into costly than conventional water will be able to satisfy human equipment is estimated to be friendly manner. The Eco-Ma- According with United Nations the environment. Current water treatment plants. They are needs without adversely approximately $9.8 billion, and chine is capable of removing University “In North America, treatment technologies are easy to operate and maintain; affecting the environment, forecasted to grow 5.9 percent not only human waste from of the estimated 85 cubic highly energy- and chemical-in- caring for a living machine, and in most cases they will per year to a projected $13.0 water, but also industrial kilometers, or 22.5 trillion tensive, which imposes high such as a Restorer, is less labor actually help heal, rebuild and billion in 2017. These gains will waste such as that which is US gallons, of wastewater operations and maintenance intensive since the operator sustain natural spaces. Since be fueled by rising concerns generated by the food and generated each year, 61 cubic costs, as well as environmental is working with living and most ecosystems are primarily about contaminants, chemicals, mining industry, as well as kilometers, or 16 trillion US costs of their own. In addition growing , instead of solar-powered systems, they and byproducts in supply restoring bodies of water to gallons, (75%) is treated. (A to the private and environ- with bags filled with tons of are self-sustaining, and their water and wastewater, and by their natural state. And even cubic kilometer is 1 trillion mental costs, the chlorine and chemicals. Another feature of productive lifespan is relatively more stringent manufacturing more fascinating, Eco-Ma- liters—about 220 billion US other chemicals that public this technology is that these long. Living machines have requirements in process water.5 chines can achieve this without gallons).”3 This number is utilities add to drinking water to systems are modular, and can the ability to be designed in a The market is wide open for relying on large quantities of constantly increasing given kill microorganisms can react be arranged in various designs modular fashion, which means sustainable water solutions chemical inputs or energy-in- population growth and market with other materials - such as to meet the needs of growing that they can be made as large like those offered by JTED. tensive-systems, which results demand for clean water. As sewage and manure- to create businesses or communities. as necessary. The idea behind Cities like San Diego and in incredibly large savings for stated earlier, most of the water hundreds of toxic byproducts, Living machines can be easily modular design is that they San Francisco are looking for the new owners of the Eco-Ma- that enters cities or farms ends many of which are detrimental enhanced and improved could be installed to treat a decentralized water treatment chines. As a result, that segment of its lifecycle to human health.4 without excessive costs. As specified amount of waste- plants. These plants consist the systems are refined and in water, but more units could be of approaches for collection,

3 UN: Rising Reuse of Wastewater in Forecast but World Lacks Data on “Massive Potential Resource” - United some cases miniaturized it will added to account for future treatment, and dispersal/reuse Nations University. (2013, September 9). Retrieved September 2, 2015. be possible to integrate them demand growth. of wastewater for individual 4 Chemicals used to treat your drinking water might be hurting you, environmental group says. (2013, February 27). Retrieved September 2, 2015. 5 Water Treatment Equipment - Market Size, Market Share, Market Leaders, Demand Forecast, Sales, Company Profiles, Market Research, Industry Trends and Companies. (2013, July 1). Retrieved September 2, 2015. 30 | SYNAPSE.BIO SYNAPSE.BIO | 31 COMMERCIALIZATION PROCESS & STRATEGY COMMERCIALIZATION PROCESS & STRATEGY

dwellings, industrial or insti- wastewater without relying on jump-start those efforts and low MARKET FOR tutional facilities, clusters large scale treatment plants, interest rates on $800 million of homes or businesses, thus eliminating the depen- more in loans. Experts believe BIOSOLID BYPRODUCTS and entire communities. It dence on these systems that most of those investments is believed that properly and lowering the operating will be directed towards turning John Todd and his team of to crops reduces the need Milorganite is manufactured managed decentralized waste- cost. According to the EPA’s human wastewater into potable designers and engineers for chemical fertilizers. The by the Milwaukee Metropolitan 7 water systems can provide Guidelines for Management of water. did not stop with water, as National Academy of Sciences Sewage District. Milorganite the treatment necessary to Onsite/Decentralized Waste- they realized that their Living has concluded that “the use of products can be purchased at protect public health and meet water Systems, “Onsite/decen- As we will discover later, Machines had potential that biosolids in the production of places such as Home Depot water-quality standards just tralized wastewater systems JTED’s living machines are surpassed the mere purification crops for human consumption and other farming equipment as effectively as centralized serve 25% of the US population capable not only of treating of water. One of the byproducts when practiced in accordance stores at an average price of systems. These systems can and 40% of new develop- wastewater, but they can also of their process are biosolids, with existing federal guide- 13 US dollars per 36 lb. bag. 6 help promote better watershed ments.” The current drought be used as a closed water which are nutrient-rich organic lines and regulations, presents More than ever before people, management by avoiding the crisis in the southwestern loop system within buildings, materials resulting from negligible risk to the consumer, are looking for new organic potentially large transfers of United States has generated allowing them to reuse water the treatment of domestic to crop production and to plant-growing products, and water from one watershed to a clamor for solutions that will up to twelve times. Global sewage. When treated and the environment.’ There are the organic fertilizer market is another that can occur with allow cities and counties to markets for wastewater processed, these residuals can many popular brands offering growing larger by the minute. centralized systems. take full advantage of every recycling and reuse technology be recycled and applied as organic fertilizers made out of In 2006, the U.S. fertilizer drop of locally available clean are expected to grow from $9.5 natural fertilizer to improve and biosolids. market was estimated at $40 John Todd Living Machines water. In the state of California, billion in 2012 to $23.4 billion maintain productive soils and billion, with the organic fertilizer provide a system that will allow as part of recent drought relief in 2017, reflecting a five-year stimulate plant growth. Farmers Among these we have accounting for only $60 million. 8 individuals, industries and measures, the state allocated CAGR of 19.7%. and gardeners use biosolids Milorganite, a Milwaukee With current market trends, we communities to manage their $200 million in grants to in all 50 states of the U.S. based company that can expect this last number to The application of biosolids sells class A biosolids. increase significantly.9 6 http://water.epa.gov/infrastructure/septic/upload/MOU-Intro-Paper-081712-pdf-Adobe-Acrobat-Pro.pdf 7 SANGREE, H. (2014, April 14). California looking to recycled water to ease drought concerns. Retrieved September 2, 2015. 9 MarketWatch. (2007, March 21). Organic fertilizer companies see growing market, but efficacy debated. 8 FARMINGTON. (2013, February 7). Global wastewater reuse, recycling markets expected to expand, research Retrieved September 2, 2015. says. Retrieved Septem-ber 2, 2015.

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MARKET FOR WATER ECOSYSTEM RESTORATION

So far we have discussed in need of a solution. Eutro- cause grave environmental without access to safe drinking around the world, and this how John Todd has provided phication typically promotes damage. As stated by the water in Ohio and Michigan as number is expected to grow 10 Aquatics Update: Management Minute - Aquatic Plant Management humanity with a clean, excessive algae growth, Aquatic Ecosystem Restoration consequence of an algal bloom given the current trend of Options. (2010, March 10). Retrieved sustainable, and cost effective commonly known as algae Foundation, “The limitations in Lake Erie.11 Algal blooms have increasing water temperatures. September 2, 2015. way of treating domestic, blooms, which cause health to effective management significant economic impacts 94 percent of dead zones are

industrial, and agricultural problems for people, fish and of aquatic plants in their when they occur. For example, in areas expected to warm by 11 Abbey-Lambertz, K. (2014, August wastewater, but that is not all wildlife in general. environment are time, patience, a 1976 New Jersey red tide 2 degrees Celsius or more 6). These Disturbing Photos Show this amazing company has and funds, not the lack of an caused losses estimated at by 2099. This is critical for Why Algae Blooms Are A Growing done. They recognized that In the past, the federal effective management tool.”10 more than $1 billion.12 dead zones since it has been Global Water Threat. Retrieved cleaning wastewater was not government has played the shown that the population September 2, 2015. the only problem that could prominent role in maintaining The United States Environ- Dead zones such as the one in of invasive vegetation grows 12 Prevention, Control and Mitiga- be solved with these living a coalition of research scien- mental Protection Agency the Gulf of Mexico has led to in warmer water. John Todd tion of Harmful Algal Blooms. (2001, ecosystems. They created what tists, natural resources reported that a substantial decrease in the Restorers offer an efficient and September 1). Retrieved September they called Restorers, which agencies, academic insti- will have many effects on fish population of the affected cost effective solution for this 2, 2015. are special machines capable tutions, and private sector freshwater and marine environ- areas. This adversely impacts problem. The Restorers are of returning a degraded water interests for studying and ments, and these effects along the local economy, especially capable of decreasing nutrient ecosystem to a close approx- managing nuisance aquatic with nutrient pollution (chemical the fishing and tourist indus- levels in water, which removes imation of its natural state. and wetland vegetation. fertilizers) might cause more tries, and have the potential to some of the food these Eutrophication, which is the However, significant reduc- intense and harmful algal affect millions of people around invasive plants use to grow at process by which a body of tions in agency funded R&D blooms and dead zones to the world. The U.S. is not the exponential rates. As a result, water acquires an excess programs have created a occur more often, in more only country suffering from we expect to see a decline of concentration of nutrients, technological void while bodies of water. During the degraded water ecosystems. dead zones and algal blooms particularly phosphates and invasive aquatic and riparian summer of 2014, more than It has been reported that there in areas where Restorers are nitrates, is a big problem that weeds continue to spread and 400,000 people were left are more than 400 dead zones installed.

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ECO-MACHINETM John Todd Ecological Design offers 1 Water purification system two major “living machine” products along with design, construction and consulting services to their clients AQUATIC RESTORER 2 Water-based ecosystem restoration system

Diagram of Eco-Machine for City of South Burlington municipal installation © John Todd Ecological Design PRODUCTS AND SERVICES ECO-MACHINETM

There are several factors which even train customers in the restoration. The team has The Eco-Machine is a tank specifications and will provide of wastewater per day. Solar make them a unique player operation and maintenance a deep commitment to the based system typically housed advanced water treatment. The energy supplies 100% of the in the market. Every product procedures needed for lasting ecological integrity of their within a greenhouse and size of an installation depends electricity necessary to power created is a customized design efficiency. JTED offers a broad systems and to reducing their contains a natural and robust on the water flow requirements the natural water reclamation crafted through a process of and comprehensive range of overall environmental impact. ecosystem that naturally which can range from tens achieved by the Eco-Ma- close communication with services, and the company’s cleans water. The system to hundreds of thousands of chines. The individual tanks customers. Since the company philosophy focuses on often includes an anaerobic gallons per day. Many clients and suspended racks contain already knows the customers’ including integrated systems pre-treatment component, have sites with 3,000 to all the major groups of life preferences, they can deal used in agriculture, storm water flow equalization, aerobic 20,000 gallons of waste-water, from microscopic algae, fungi, with specific issues and management, and watershed tanks as the primary treatment but JTED has built Eco-Ma- and bacteria to snails, fishes, approach followed by a final chines that treat volumes far shrubs, and trees. The result is polishing step, either utilizing beyond this. an efficient and refined waste- Ecological Fluidized Beds or a water treatment system that small artificial wetland. It is an The largest Eco-Machine is capable of achieving high aesthetically pleasing water built to date processes an quality water without the need garden that can be designed to impressive 80,000 gallons for hazardous chemicals.

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For an area of 2 acres, a Aquatic Restorer installed for Tyson’s poultry processing facility in Berlin, Maryland typical DESIGN, CONSTRUCTION, installation can have 3-4 units depending on how quickly the & CONSULTING SERVICES client wants to digest the sedi- ment. The largest installation of the Aquatic Restorer for lagoon John Todd Ecological Design is system to successfully meet that are both environmentally treatment to date processes 1 million gallons per day. Photo an experienced company with discharge standards and beneficial and aesthetically © John Todd Ecological Design more than 30 years experience regulatory requirements. Based pleasing. What makes of dealing with natural waste- on the information from inter- John Todd Ecological Design water treatment design, views with company staff, they special is that their staff can general aquatic management, express that each project has provide complete design and project supervision. Based unique challenges based their services from conceptual AQUATIC RESTORER on Dr. John Todd’s thinking, clients’ particular situations design through detailed the company harnesses the and needs. The solutions of construction documents. The Aquatic Restorer is a within. The system helps made readily available for biological processes that the company are focused on The following sections will system of floating platforms restore the pond health and plant life and zooplankton. operate in nature in the form building cost effective, highly elaborate further on the details linked to an upwelling bottom ecology by removing accumu- The Aquatic Restorer is more of an engineered treatment diverse, and resilient systems of this process. filter that slows and reverses lated sediments, excess of a streamlined unit that can eutrophication. It is composed nitrogen and phosphorous, be easily installed and scaled. of planted ecologies, media reducing organic matter, and The cost of each unit is roughly to support microbial films, eliminating algal blooms. It $60,000. Typically, one unit is and an aeration system. This is able to accomplish this by installed per half acre to one technology can be installed pushing nutrient and organic acre and circulates 100,000 in bodies of water to enable rich sediment through the gallons per day, digesting as organisms to metabolize bottom filter and into bacteria much as five inches of accumu- nutrients and organic loading zones to be metabolized and lated sediment per year.

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PROCESS OVERVIEW DESIGN-BUILD CAPABILITIES In a typical project, the JTED visit, the team will develop a After the project is finished, The John Todd Ecological services could provide longer experience in consulting for a team will spend one or two list of questions for their client they provide an Operations Design team is experienced term assistance for the broad range of clients to help days with the clients on site to to perfect not only their under- and Maintenance manual, in the construction of natural company because the structure them make decisions regarding reach a better understanding standing of the problem, but onsite training for maintenance wastewater treatment facil- matters for the company their natural resources of their client’s water treatment also their understanding the workers, email and telephone ities and aquatic environ- rather than simply solving an management challenges. requirements. During the client’s requirements. This support, and site visits as mental management projects immediate problem. JTED also John Todd Ecological Design onsite visit, they will identify process lays the foundation desired. As part of the commis- worldwide. JTED offers their offers integrated construction provides insights from the the problem and assess the of the eventual project. After sioned project, the team also clients a complete design and oversight services, working business planning stage of site itself. Then the team will obtaining the approval of the offers operational training for build option in addition to the with primary contractors to resource allocation through discuss constraints and expec- client, the project goes to the their new customer, which is conventional design- bid- build ensure the natural water site visits, feasibility studies, tations with the clients and engineering team and then the around 3-5 days. approach, allowing the accel- treatment element is efficiently report writing, design and outline their recommenda- construction team. JTED teams eration of the project from integrated into the larger construction consultations, and tions. The JTED team will then maintains a close relationship planning and design through overall project. last, but not least, help with research and write their report with its clients after completing to construction completion facility operations. about the on-site visit and their projects, with the goal of and training of personnel for Besides offering design begin the process of prelim- assisting them in the long-term facility start-up promptly within services and construction inary design. After the initial maintenance of the project. the context of the project services, John Todd Ecological timeframe. The construction Design also has adequate

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EXAMPLE PROJECTS

The team members of JTED have been working in this field for several

decades and have succeeded in completing well over 80 projects during Ecological Design © John Todd the past 30 years. These projects are located all over the world, and RURAL RESORT LAKE RESTORER several of them have been in operation for over 20 years. The company KONA, HAWAII currently has a list of roughly 20 case studies that detail the performance

and effect of these projects. These examples cover over a dozen This case exemplifies the valuable water on the dry side Hawaiian fish and shrimp. This projects in various states of the U.S. as well as in countries such as China, company’s ability to help of the Big Island of Hawaii. Two diversity of plant life provides achieve sustainable water Restorers were installed during a thriving habitat for a lot of Germany, England, and Honduras. Installation sites are diverse and include management solutions. the construction of the pond wildlife. Some of the fish and commercial settings such as industrial sites and resorts, and natural This EPA award-winning 3.5 along with six airlifts and a shrimp species are supplied environments such as canals and lagoons. million-gallon pond at the Four subsurface filtration system. to the onsite restaurant as Seasons Resort golf course in fresh seafood. Below the water Kona, Hawaii was designed by Pond water is pulled through surface, aerobic bacteria attach John Todd Ecological Design the bottom gravel filtration to both the gravel media and and constructed in collabo- and up to the center of the plant roots. The bacteria work ration with Ocean Arks Interna- Restorers at a turnover rate to digest nitrates in the water tional and Natural System Inc. of 32 hours. As a biological column and out-compete algae The caretakers of the resort platform, each Restorer for other available nutrients, wanted to keep the pond free provides an ecosystem for over ensuring the pond stays both of algae without resorting to 26 species of native Hawaiian clear and environmentally high flush rates that would use flora and several species of stable.

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TYSON INDUSTRIAL WASTE TREATMENT URBAN MUNICIPAL CANAL RESTORER BERLIN, MARYLAND FUZHOU, CHINA

Before consulting with Chincoteague Bay, a local create a balanced and complex Fuzhou, a city of 6 million Baima, considered one of the Todd Ecological Design collab- Ocean Arks International fishing and shellfishing site. aquatic ecosystem which could people, empties its commercial worst in the city, had extreme orated with Ocean Arks Inter- and John Todd Ecological With the help of John Todd’s provide a habitat for a variety wastewater and sewage problems with odor and national and Natural Systems, Design team in 2001, the Lagoon Restorers, Tyson of microbial communities, all into 80 kilometers of canals floating solids created by the Inc. to design a restorer using Maryland Environmental Foods Inc. turned their sludge of which perform a unique that run throughout the influx of 750,000 gallons per 12,000 plants composed of 20 Protection Agency levied filled lagoon into a thriving function in the waste-treatment city before this canal itself day of untreated domestic native species for their Chinese several fines against Tyson’s ecosystem and compliant process. The result was a 95% flows into a large river. The sewage. Rather than re-piping partners to place in the Baima poultry processing facility wastewater treatment site. reduction in contaminants, 70% polluted canals not only pose the polluted water to a remote canal. Built under an elevated in Berlin, Maryland. Effluent Lagoon Restorers were reduction in energy use, 20% a health risk to the city’s wastewater treatment facility, central walkway surrounded by from the Tyson lagoon was installed to work in collabo- reduction in sludge production, inhabitants, but also threaten the city government sought greenery, the restorer has met frequently out of compliance ration with existing traditional and a discharge stream that the livelihood of fishing an affordable and low-mainte- water quality goals and created with MD-EPA standards and treatment elements. 25,000 complied with Maryland’s open communities downstream. nance treatment system within a desirable recreational desti- was unfit to discharge into native plants were chosen to water effluent parameters. A 600-meter canal named the canal itself. In 2002, John nation for the city’s residents.

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PRICING STRUCTURE

SYSTEM COST BY SIZE TREATMENT COST/GALLON For Eco-Machines, pricing Half of the money will be The company’s pricing strategy

begins at $80-100 per gallon assigned to the purchase of varies greatly with the client, GALLONS ANNUAL MAINTENANCE CAPITAL for sub-20,000 gallon per day material and the other half will project size and complexity, PER DAY (15 year period) projects, dropping to $25-30 be used for the staff salary and timeline, and special require- per gallon for 40,000-50,000 overhead. JTED projects are ments. At the same time, the 1,300 to $300,000 to gallon per day projects, all extremely cost effective. Other wastewater treatment can $180/gallon $120/gallon $20,000/yr the way to $20 per gallon solutions such as dredging be the public asset as well, 2,500 $450,000 for 50,000+ gallon per day can produce costs of up to as JTED projects create a projects. JTED can adjust one million dollars per every positive externality that spills 2,501 to $400,000 to project size according to few hundred yards. Using a over into the public sphere. $150/gallon $120/gallon $40,000/yr 5,000 $750,000 client-specific needs. The price JTED project in California as an As indicated in the case study also depends on the timeline example, the client was origi- section, restoration of habitats of the clients. If some clients nally spending $250,000 per provides positive externalities 5,001 to $600,000 to $60/gallon $36/gallon $60,000/yr have an urgent requirement for year on an activated sludge in both social and ecological 25,000 $1,500,000 expedited project completion, plant. JTED will be able to help contexts, benefiting the public. the cost can exceed the the client reduce operation If external benefits are added 25,001 to $1,000,000 to aforementioned values. The costs by up to $200,000 per to the evaluation of costs, $25/gallon $12/gallon $80,000/yr investment for a typical project year and therefore provide a JTED project are always excep- 100,000 $2,500,000 is around one million dollars for return of investment in just 4 or tionally cost effective and a 20,000 gallon per day project 5 years. attractive. from scoping to installation.

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SALES MODEL GROWTH & CONSTRAINTS

The John Todd Ecology sales money by going with JTED’s Europe, the United States and Thus far, JTED has been focus is to push the devel- alternative methods of model is mostly dominated solutions is only part of the China, as well as Latin America growing over the past 25 opment of product design to a treatment. Companies such by indirect sales. The annual draw. John is still a professor in and Africa. JTED’s marketing is years. Today they have a whole new level. JTED plans as Oregon based Orenco, revenue produced by JTED the university but he has built a not limited to client outreach: total of seven staff and eight to expand the size of its team offer pump, disinfecting, oscillates between half million reputation and network in the when former clients face a ongoing projects. Projects are from the current seven staff to and water reuse systems for dollars and million dollars. The field as well. People know John new requirement to solve an completed on a rolling basis around 15. What JTED wants to installation. Other compet- sales model and how much Todd products and approach environmental and/ or water and project duration depends do is to do more pilot studies itors include Triplepoint Water biomimicry plays a role in the the company with their management issue, they know on the particularities of each in the field, which is where Technologies LLC, DO2E sales process depends on problem looking for a solution. that few if any companies case. During the past 2 or 3 John’s passion truly lies. The Wastewater Treatment, and clients. Biomimicry is always a Take the South African project can provide an equivalent years, the company has begun water treatment market’s devel- Waltham Technologies Inc. part of John Todd Ecological for example: the government service. In these cases, it is the re-thinking its entire structure. opment today really depends Most competing companies Designs internal conversation. needs a solution for water customer that reaches out to John Todd Ecological has no on government regulations. are wetland based while For some clients who have treatment and they approached JTED. plans to grow much further, This will be the major obstacle JTED is primarily tank based. a deep understanding of the JTED seeking a potential which means they not will to John Todd’s plans because Half of JTED clients will have company’s process and have design installation. So far, the expand beyond their current the company’s pace of talked to other companies known John for years, saving company has secured clients in size and produce more of research and development and vetted the industry to their products as a traditional does not depend on the pace some degree, but mostly the manufacturing company of government regulations. question is whether JTED would. On the contrary, has the resources and skill John Todd plans to keep his JTED’s Eco-Machines are a set to complete the project. company small in the hopes unique solution to wastewater While some companies are to of maintaining the company’s treatment, however there are potential competitors, JTED founding vision. JTED’s current competing companies with believes that there is at present

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FUTURE POTENTIAL MARKETS

an effectively infinite number machines have increasing been abused before in their John Todd Ecological Designs John’s PhD students wrote his different contexts. John has of market opportunities in this returns to scale, therefore they joint ventures with Living wants to offer the world a dissertation on the treatment of addressed a wide variety of space, allowing for all of these could offer a larger benefit for Machine, and as a result JTED new way of thinking, a radical AEEA, one of the mining indus- waste products in the past, companies to work comfortably the customers by helping them has shifted to not issuing these solution to an environmental try’s principal waste products. such as confectionary waste without entering into direct use their machines continu- rights to outside their firm. challenge. This challenge The results of a project (chocolate factory), dairy waste, competition with each other. ously. Additionally, in terms of is finding a better, cheaper designed to treat this waste etc. There are a lot of waste- Possible competitors include R&D, they have relationships This means their licensing way to treat water in a more product were astounding: the water pilot projects that they Roth Ecological Design Interna- not only with clients but also rights will now be more efficiently. The potential market compound was dissolved in 72 plan to take on in the near tional, Natural Systems Interna- with academic institutions. secured, which allows them for this solution is infinite hours, rendering this process future. At the time of writing, tional, and Ecosolutions LLC. JTED is currently pursuing to retain their competitive because almost every industry, an effective solution. The JTED had a proposal out partnerships with university edge. Through their unique such as mining, energy, food potential market is huge and the door to treat frack water The features and compati- researchers and considering offer of customized products processing and manufacturing, the challenge begs for readily generated by the fracking bility of JTED’s products and partnerships with like-minded and services, JTED can be uses water for production. available solutions that can industry as well as a pilot to services enable them to gain a companies, such as Biomimicry expected maintain the unique JTED is interested in focusing meet environmental standards treat the effluent stream from competitive edge in the market. South Africa in 2014. Unfortu- advantages they hold at more on their research and and move towards more bus wash water (road salt, For example, costs of operating nately, licensing rights have present. growing their relationship with sustainable development. industrial effluent). There is also the institutes. Now JTED is a facility in the works treating focusing on domestic waste- If JTED can continue to find a canal contaminated with water treatment, such as more solutions for other indus- petroleum hydrocarbons that is laundry water and bath waste- tries, the scale of potential not a commercial offering, but water. In the future, JTED also growth is effectively unlimited. JTED is interested in piloting wants to work with heavy JTED relishes a new challenge and offering solutions for these industry, such as the chemical and enjoys thinking about dangerous contaminants. and mining industries. One of ecological design in many

50 | SYNAPSE.BIO SYNAPSE.BIO | 51 Financial In addition to self-funding, a solution for greenhouse Government and Biomimicry government funding is another effluent. This project was South Africa at a slower pace. Strategy important source of revenue, funded by the greenhouse along with companies facing industry when regulations Because they built several environmental challenges who began growing ever more restorers, they have clients that All of the projects and however currently every expressed an interest in finding also provide research funds. strict. Considering that pay for the design and are not work completed by JTED on-going projects is self-funded solutions to their wastewater With regards to government JTED would like to continue investing their own money or are completely financially to preserve the company’s treatment problems, particu- funding, JTED’s focus on producing and maintaining anyone else’s money at the independent. In the past, financial independence. JTED’s larly in the current increasingly reducing environmental impact innovative solutions and moment. JTED tries to channel the company was in a more fiscal situation last year was strict regulatory environment. will work well for them. Specif- processes, finding many its R&D investment through precarious place due to its within the company’s targeted The potential benefit for this ically, since their products and sources for funding is a good clients as much as possible, size, but now it is completely performance parameter: is huge: the players in the services are geared towards option for the company. using their contributions to sustainable. Most of their revenues were greater than industry stand to save as environmental regulations and solve the challenges that the projects are self-funded by $500,000 per year, less than much as $200,000 per year sustainable development, there JTED reinvests 100% of its company faces as it works to earlier reinvestment in the $1,000,000 per year, and each in operating costs and follow is a lot of potential to obtain profits into its R&D efforts. This provide customized solutions company. Additionally, other project generated approxi- in the footsteps of one of funding from government makes their future product for its clients. entities perform as liaisons mately $150,000 million dollars JTED’s clients in California. compared with other indus- development more meaningful between industries, including of profit. Average project scope The industry has a strong tries. A lot of work has been and sustainable in a long run, the hydraulic fracking industry. usually exceeds $100,000, and incentive to fund research and funded by the EPA (particularly and also pushes the company Therefore, JTED has culti- they obtain their money from develop through JTED in order those dealing with petroleum). towards continued innovation. vated investor relationships both the specific client and to comply with government JTED has completed a project Furthermore, the company has on and off over the past few earmarked overhead. regulations. working with a client in the an R&D arm in South Africa and years. Usually, pilot projects Manufacturers from the Netherlands developing works with the Western Cape are funded by the industry, chemical industry have

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FINANCING FUTURE POTENTIAL PILOT STUDIES FINANCIERS ATTRACTIVENESS FOR INVESTORS The company is privately held amount of time required for the Furthermore, as the interview Potential investment funds for This could provide an incentive by John Todd, the architectural pilot study to eventually turn with JTED suggests, while the JTED are expected to come to JTED staff to work harder to Even though they do not advisor, and John’s son. JTED a profit when the technology potential market for JTED is mainly from research grants maximize their own investment. expect to expand their busi- has worked with investors, but acquired in the study is applied infinite, this means that it is for pilot studies. The ideal If JTED could obtain outside ness dramatically in a short over the last 15 months JTED to for-profit projects. However, hard to choose which sector of investors will be the people financing, this could provide run, JTED’s business model has received no additional approaching this difficulty the market to go after first. who seek to fund environ- a further opportunity and has some unique advantages investments. JTED’s current from a different perspective, mental friendly projects long more resources for the team in the market. Especially in strategy to secure additional the pilot project could provide With the current size of JTED investment horizon and high to attempt taking on multiple the US, JTED does not face financing is by pursuing a high rate of return for the and the lack of research expected rates of return. projects at the same time. any meaningful direct compe- research and development right investors. Unlike risky funding for pilot studies, it Risk and return tend to move John, who is still a professor, tition, and there are a variety funding for pilot projects. investments such as junk is hard for JTED to go after together in JTED’s projects. brings additional confidence in of projects underway all over Because JTED does not have bonds, the long history of multiple sectors simultane- The risk is not insignificant: it the quality of research because the world in emerging markets. plans to expand the size of the JTED’s successes provides ously, especially considering is a unique risk which derives he is one of the leading Considering this, along with company, most of their funding a measure of security for the that different industries face from the uncertain results of professional in his field. All of the strength of JTED’s custom goes towards supporting risk-averse investor. Because wildly different challenges. research and development these factors could provide an designs, and the high reinvest- research and development the company is privately The company is exploring efforts, especially it is cutting excellent motive to invest in ment rate of R&D, the company efforts. However, it takes a long owned and does not have any the possibility of partnering edge research. In this case, it these projects, if the potential is successfully maintaining time to see the results of this interest in going public, it could with a university to pursue is a perfect option for investors investor has the patience to solid relationships with their investment in new areas. No be an ideal alternative for an grant research funding from looking to diversify their put off seeing a return on their current customers. The success one really has the experience individual investor who wishes the Department of Energy or portfolio into environmentally investment until the project is of JTED in their diverse port- JTED does with pilot studies to diversify their portfolio another federal agency. friendly activities. The fact that complete. folio of projects could make it in wastewater management. It while putting their money into JTED reinvests 100% of their feasible for them to enter new is hard to find the third party an environmentally friendly profit into R&D helps signal markets and find innovative investors willing to wait the enterprise. JTED’s confidence in their solutions to similar challenges. projects.

54 | SYNAPSE.BIO SYNAPSE.BIO | 55 Conclusion Lessons Learned With each of the projects that JTED has completed, the team acquires new methods for solving STAY ENGAGED THROUGH OPERATIONS & MAINTENANCE challenges. The company does much of its R&D through its clients in the process of tackling the It is important to continue to build strong relationships with the client even after unique customization process for each new system. The clients that they work with may either installation. JTED remains involved with the system for its lifetime, providing have their own specific demands or will let the team approach the issue in their own way. This maintenance and support to ensure the longevity and performance of their has allowed JTED to use the client’s’ contribution to solve each new challenge they face installations. and potentially gain a lesson that can be applied to other projects. This builds the capital or brain trust that JTED holds, beyond just their products, which is their capacity to solve the STAY SMALL YET MIGHTY problem at hand in a creative way. Maintaining company integrity and vision is essential to developing sustainable solutions. JTED seeks to expand the use of sustainable, living John Todd Ecological Design has been around for 27 years, but in the past few years they technologies as a part of everyday life and to educate others in these have begun actively restructuring and redesigning the company. As JTED continues to practices. The team would have been more restricted working in a corpo- take on additional projects and discover new solutions, it has done some strategic rate environment that focused on profit generation. Instead, JTED has a thinking about its long-term future. The current team is very interested in keeping the more free-thinking and innovative culture with a small yet diverse and company fairly small. The staff, composed of creative people that like to innovate, energetic group of focused and dedicated staff. are not interested in having a production arm to scale up. They are interested in research and creating relationships with academic institutions, and are not IN-HOUSE INVESTMENTS IN R&D CAN BE CAPITALIZED ON focusing primarily on the generation of large cash flows or profit. As a result, the THROUGH DIVERSIFICATION company can be found taking on new and extremely diverse projects in various A high focus on the R&D end of JTED has contributed significantly contexts and industries in order to expand their design capacity and further to the company’s success in improving and adapting its core optimize their systems. JTED also runs design workshops open to the public technology. As a company that offers products and services for at the Living System Laboratory in Massachusetts, and has plans to transform a wide range of dynamic challenges, JTED invests heavily in it into an ecological design hub. This way, JTED can remain a voice that R&D. The innovation that flows from this investment allows contributes to the world in a positive way, and offer radical solutions and a the company to offer a continuously evolving process as new way of thinking about water treatment infrastructure. a unique solution for water treatment in a variety of envi- ronments. JTED aligns its R&D initiatives with the needs of each client, allowing them to take advantage of the client’s contributions to find innovative solutions.

56 | SYNAPSE.BIO SYNAPSE.BIO | 57 For more information about John Todd Ecological Design ToddEcological.com

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