INSPIREWATER – D6.1 Market Analysis report GA723702

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Project no. 723702

Innovative Solutions in the Process Industry for next generation Resource Efficient Water Management Collaborative project

Deliverable 6.1: Market analysis report

Due date of deliverable: September 30th 2018

Actual submission date: June 28th 2018

Start date of project: October 1st 2016 Duration: 42 months

Organisation name of lead contractor for this deliverable: IMCG Release no.1 Project co-funded by the European Commission within the Seventh Framework Programme (2007-2013) Dissemination Level PU Public PP Restricted to other programme participants (including the Commission Services) RE Restricted to a group specified by the Consortium (including the Commission Services) CO Confidential, only for members of the Consortium (including the Commission Services) X

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Document history and validation

This page is used to follow the deliverable production from its first version until it is approved by the Coordinator. Please give details in the table below about successive releases:

When Who Comments May 25th, 2018 IMCG 1st draft to Coordinator June 7th, 2018 IVL Coordinator’s comments to authors June 26, 2018 IMCG Final version to Coordinator

xx, 2018 IVL Submission of deliverable

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TABLE OF CONTENTS

1. EXECUTIVE SUMMARY – BFI, MOL AND BLUE-TEC ...... 5 2. INTRODUCTION ...... 6

2.1 Objective ...... 6

2.2 Market analysis ...... 6

2.3 Delimitations ...... 6

2.4 Deliverables ...... 7 3. METHODS APPLIED ...... 8

3.1 Work procedure and methods ...... 8 3.1.1 The Innovation Arrow ...... 8 3.1.2 SWOT ...... 10 4. INDUSTRIAL WASTEWATER TREATMENTS AND SYSTEMS ...... 11

4.1 Physical, chemical and biological processes ...... 11

4.2 Industrial wastewater equipment ...... 11

4.3 The price of an industrial wastewater treatment system ...... 12

4.4 Wastewater management in the industry ...... 12 5. INNOVATIONS AND TRENDS IN INDUSTRIAL WASTEWATER TREATMENT ...... 13

5.1 Innovation ...... 13

5.2 Trends...... 14 5.2.1 Macro trends ...... 14 5.2.2 Micro trends...... 15

5.3 Trends according to project partners ...... 19 6. REGULATORY FRAMEWORKS AND INFLUENTIAL ORGANISATIONS ...... 21

6.1 A need for suitable legal and regulatory frameworks ...... 21

6.2 Laws and regulations...... 22

6.3 2030 Agenda for Sustainable Development ...... 23

6.4 Influential organisations ...... 23 6.4.1 EIP – European Innovation Partnership ...... 24 6.4.2 EIP Water - The European Innovation Partnership on Water ...... 24 6.4.3 Initial Actions ...... 24 6.4.4 UNESCO...... 25 6.4.5 World Steel Association ...... 25

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7. POTENTIAL MARKET ...... 26

7.1 Industrial wastewater - an undervalued resource ...... 26

7.2 A growing market ...... 27 7.2.1 Water use in the steel industry ...... 28

7.3 Why invest in new wastewater treatment according to partners ...... 29

7.4 Global insight ...... 29 7.4.1 North America/Europe ...... 30 7.4.2 Asia and the Pacific ...... 31 7.4.3 The Arab region ...... 32 7.4.4 Latin America ...... 32 8. POTENTIAL CUSTOMERS ...... 33

8.1 Brownfield and Greenfield plants ...... 33

8.2 Selling directly to the customer ...... 34 8.2.1 How ArcelorMittal and Clariant perceive the buying process ...... 34 8.2.2 How BFI, BLUE-tec and MOL intend to reach the customer ...... 36

8.3 Going through a distributor ...... 37 9. COMPETITORS ...... 41

9.1 Competitor found through desktop research ...... 41

9.2 Competitors named by project partners ...... 42 9.2.1 BFI’s competitors ...... 43 9.2.2 BLUE-tec’s competitors ...... 44 9.2.3 MOL Katalysatortechnik GmbH - MOL (catalyst) ...... 45

9.3 Competitive treatment technologies ...... 46

9.4 SWOT ...... 46 9.4.1 Strengths ...... 46 9.4.2 Weaknesses ...... 49 9.4.3 Opportunities ...... 50 9.4.4 Threats ...... 51 10. FURTHER READING ...... 53

10.1 LinkedIn Groups ...... 58 11. CONCLUSION AND RECOMMENDATIONS ...... 60 12. APPENDICES ...... 61

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1. EXECUTIVE SUMMARY – BFI, MOL AND BLUE-TEC

This market analysis supports commercialisation, economic assessment and exploitation and is focused on wastewater treatment in the process industry. It aims to give BFI, MOL and BLUE-tec an overview of factors affecting one’s chances to make a market entrance:

• Market trends • Rules, regulations and influential organisations • Ways to reach the potential customers • Competitors and competitive techniques • SWOT-analysis (Strengths, Weaknesses, Opportunities and Threats) • Further reading and venues where to meet potential customers

There is a clear shift from wastewater treatment to water reuse and resource recovery. Water scarcity leads to the implementation of stricter regulations, which in turn makes the process industry invest in a wastewater treatment system that can fulfil the new rules. This opens up tremendous opportunities to make a market entrance.

Through INSPIREWATER, opportunities to work closely with potential customers and collaborators such as Sandvik, ArcelorMittal, Clariant and DOW arise. They have provided information for this report, which will be of value when planning for exploitation.

All three companies intend to address potential customers directly. During interviews we also discussed the possibility of going through a distributor that provides the process industry with a wider range of wastewater treatment technologies. There are pros and cons with both these methods. And a distributor can also be seen as a potential competitor or a company with the objective to buy your company. The close cooperation with Sandvik, ArcelorMittal, Clariant and Dow opens up the possibility to work on several parallel processes, as the IMCG Innovation Arrow suggests. For example, while demonstrating and testing the technologies, it is also possible to interact with the decision-makers at their purchasing department.

To know what the competition looks like gives advantages when planning for market entrance. The three companies are at different stages regarding knowledge about their competitors. Even though there might not be a technique like their own on the market, there will be other techniques that they either have to replace or that can replace them.

The SWOT-analysis describes the strengths (such as having tested ones’ techniques), weaknesses (such as poor competitor analysis), opportunities (such as stricter regulations) and threats (such as a myriad of existing well-known techniques). The SWOT will show what the companies need to work with in order to get better chances to actually reach their potential customers.

There are several appendices attached to this report. These are worth looking into, as they will give further information about buying habits and market potential. With this market analysis as a base, we will be prepared to plan for the next step: exploitation.

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2. INTRODUCTION

2.1 Objective

This market analysis aims to give an indication of what the market looks like for wastewater treatment in the process industry.

The report is written by IMCG and WP6; Commercialisation, economic assessment and exploitation. The market analysis supports achieving the following main specific objectives of INSPIREWATER: Secure that more than 50% of the INSPIREWATER solutions, that have been positively validated for their business and technical potential during the demonstration activities will result in a credible business plan for commercialisation.

This market analysis aims to make our small and medium-sized enterprises (SMEs); MOL Katalysatortechnik GmbH (MOL), BLUE-tec and BFI, aware of the benefits of looking at the potential market. The process industry represented in INSPIREWATER, Sandvik, ArcelorMittal and Clariant constitute a part of the potential market and by interacting with them, the SMEs can evaluate the value proposition offered to them.

2.2 Market analysis

A market analysis is often done for a certain company within a specific industry operating or interested in a certain geographical area. This market analysis is mainly done for the SMEs in INSPIREWATER; MOL, BFI and BLUE-tec, that all have the objective to reach the market with their technologies.

In order to be able to make strategic market decisions and reach market impact with the technologies represented in this project, we need to get a picture of the market needs. This analysis is based on questions such as:

• Who are the potential customers? • What does the buying process look like? • How large is the potential market? • How much is the market willing to pay? • Who is the competition? • What have the competitors’ challenges and successes been?

2.3 Delimitations

Wastewater treatment is needed in all process industries. The process industry represented in this project is within the steel and chemical industries. Therefore, some information is more specific for those areas. However, due to the fact that the market analysis is done for several companies as a group (the SMEs in this project), the analysis as a whole is held on a general level.

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Being a very broad report, we have not chosen a specific region or country as being the market. Instead, we have gathered information that sometimes concerns the world as a whole, a continent like Europe or a very large country, like the US.

The INSPIREWATER project application stated that the market analysis would include a deeper understanding of the non- technical obstacles and gaps within primarily the steel and chemical sector, secondly with further SPIRE process industry sectors. However, it has proved to be difficult to find such specific information for different types of industries and since the process industry as a whole is of interest for all the SMEs in INSPIREWATER, that is our focus.. When it has been possible to get facts on wastewater specifically regarding the steel or chemical industry, it is stated in the report.

It is highly desirable that a market analysis contains information about what the market is willing to pay. However, this type of information can’t be covered in such a broad market analysis, and this report can’t go into details concerning the SMEs competitors’ challenges and successes.

As this report will show, there is some market data available to buy, but for this report we have not bought information, but used that available online.

2.4 Deliverables

The main content of this market analysis concerns trends in industrial wastewater treatments, information about the potential market and market needs, lists of potential competitors and lists of where to get more information about the market.

The following appendices go with this report: • Appendix I: Interview with Dow – with valuable market information • Appendix II: Interview with Clariant – with valuable information about their buying process • Appendix III: Questionnaires filled in by ArcelorMittal – with valuable information about their buying process • Appendix IV: List of steel producers in the world • Appendix V: The article, ”Water Use in Industries of the Future: Steel industry”, 2003, that relates to the water consumption in the steel industry (provided by ArcelorMittal) • Appendix VI: Strengths and weaknesses of BFI, MOL and BLUE-tec – from D6.2 • Appendix VII: Generation of wastewater by industry – gives valuable information about how much wastewater is generated in different countries

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3. METHODS APPLIED

3.1 Work procedure and methods

IMCG has gathered information about the wastewater treatment market in the process industry via desktop research and interviews with our project partners. The task coordinates the collection, analysis and the circulation of the knowledge coming from the experts involved in the project, as well as from workshops, visits to fairs and conferences. It supports the strategic decisions and provides the project partners with updated analysis regarding market trends, policies and regulation, activities of existing and coming competitors/colleagues and the evolution of the relations between the different actors of the value chain. The participants in INSPIREWATER have provided information about their view of trends, possible competitors and the market envisaged regarding industrial wastewater treatment. This information will be found in appendices and part of it is integrated in this report.

To illustrate the importance on working with several different processes in parallel while aiming at market impact, we have used the Innovation Arrow, which will be presented below.

A traditional SWOT analysis proved to be a good way to conclude the gathered information and to visualise the strengths, weaknesses, opportunities and threats that the SMEs need to be aware of in order to better reach the market potential.

3.1.1 The Innovation Arrow

Stanford Research Institute, SRI, developed the NABC model that is constructed from four processes: Need, Approach, Benefits and Competition. This is a great way to present status and development plans for a new, innovative solution. Inspired by this model and with experience gained by working in research and demonstration projects, IMCG has developed The Innovation Arrow – a process model that is more similar to a general business platform than the original NABC model.

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Figure 1: The IMCG Innovation Arrow process model is designed to open up the perspectives, develop a broader plan of activities and to foresee coming necessary activities for a successful business development. One positive side of the model is that you will see the advantages of working with several parallel processes.

The IMCG model suggests an integrated work plan based on six parallel processes: Communication, Market, Product/Service, Technologies, Resources, Organisation/Governance. See Figure 1 above. The model also presents different phases: Phase 1: Business feasibility study and Phase 2: Business development. What happens afterwards, Phase 3: Business scale-up, isn’t shown in the figure.

The different phases signal that there is a need to shift priorities between the processes and indicate that there are times when one should focus on certain activities that generate the most innovative effect at that particular time. This model emphasises that there should not only be a technology focus, but one should have an encompassing approach with for example communication in order to reach the market in the most time effective manner.

In order to compose the market analysis for INSPIREWATER, we have used our experience from working with the IMCG Innovation Arrow. By using this process model, we can discuss and evaluate the potential of the innovations both from a technological and a business perspective. The Innovation Arrow also supports the work to identify potential barriers for market entrance, which will be presented.

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3.1.2 SWOT

A SWOT analysis is a useful tool to plot certain Strengths (S), Weaknesses (W), Opportunities (O) and Threats (T) of a project (or organisation) along the four designated quadrants. In essence, this directs attention to both project internal aspects (SW – strengths and weaknesses) and external aspects (OT – opportunities and threats). In light of the INSPIREWATER project, we can rephrase this as strength and weaknesses in our technology providers (especially our SMEs), and opportunities and threats in its contextual environment, their means to become a supplier to the (steel) process industry.

Figure 2: Visualisation of a SWOT analysis

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4. INDUSTRIAL WASTEWATER TREATMENTS AND SYSTEMS

4.1 Physical, chemical and biological processes

Physical processes enable the removal of substances by the use of natural forces (i.e. gravity) as well as physical barriers, such as filters and membranes or ultraviolet (UV) disinfection, which are mainly used for disinfection. The use of membranes is increasing because of the high quality of effluent after treatment and for the effective removal of organic micro-pollutants, from pesticides to pharmaceuticals and personal care products (Liu et al., 2009). Membrane systems are on the downside characterised by high energy consumption and high levels of operation and maintenance (Visvanathan et al., 2000).

Chemical processes are often used for disinfection and for the removal of heavy metals. Chemically assisted primary treatment, for example using ferric salts or polyelectrolyte, can remove BOD (Biochemical Oxygen Demand) and solids, but the sludge generated is often difficult to treat and dispose of (UN-Water, 2015a). Chemically advanced oxidation has been shown to remove endocrine- disrupting compounds (EDCs) (Liu et al., 2009).

Biological processes in wastewater treatment reproduce the degradation that naturally occurs in rivers, lakes and streams. These processes are used in wastewater treatment plants where biological reactors are engineered to boost biochemical degradation under carefully controlled conditions, therefore enhancing the removal of pollutants and the stabilisation of sludge.

4.2 Industrial wastewater equipment

According to Global Market Insight, on the basis of technology, equipment can be categorised into;

• disinfection • desalination • filtration • testing

Disinfection technology is used for water purification in order to eliminate pathogenic microorganisms and limit waterborne diseases. Increasing popularity of ultraviolet (UV) disinfection over chlorination owing to its efficiency and cost effective nature is likely to propel demand for UV.

Desalination is a process to remove salt from saline water from sources such as river and sea in order to make it for direct and indirect consumption. As of 2015, there were over 17,000 desalination plants globally. Increasing energy efficient processes trend is likely to create opportunities for hybrid and solar desalination. Filtration equipment used for municipal and industrial applications are available in a wide range, including table top portable filters to scale up specific systems as per the industry requirements.

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4.3 The price of an industrial wastewater treatment system

Samco1 is a wastewater system company that describes the wastewater management in a very good way. According to the company there are two main factors that drive the main cost of a wastewater treatment system: the quality (levels of contaminants) of the plant’s effluent and the local maximum and average monthly discharge limits to the environment, how much water the plant needs to process per day and how fast.

4.4 Wastewater management in the steel industry

In the steel industry, water is used for cooling. While water usage is substantial, water consumption is low. About 90% of the water used is returned to source. Most of the remainder evaporates, returning to the natural water cycle.

Water treatment facilities are an integral part of the steel plant. Water returning to source is often cleaner than extracted. In areas of water scarcity steel plants are able to recycle and reuse around 98% of their water.

There is a global recognised importance that one should find a method to evaluate the impact caused by products, services and organisations related to water. These efforts often only focus on consumption, because this is the easiest information to collect. But one needs also to look at local aspects such as availability and quality in order to see the true water related impact.2

1 https://www.samcotech.com/cost-wastewater-treatment-system/ 2 Water management in the Steel industry, www.worldsteel.org

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5. INNOVATIONS AND TRENDS IN INDUSTRIAL WASTEWATER TREATMENT

There are significant market opportunities for knowledge and technology with regard to innovative water and wastewater treatment systems. A sufficient quantity of water with the right quality needs to be supplied, bringing the challenge to match the available water resources with the required type of water. In addition, there is a need to change the focus from treating wastewater and sludge to be ready for disposal, to providing water fit for use and yielding revenues from recovered energy and resources. Robust wastewater treatment units can lead to the development of new products and business opportunities.3

The 2017 World Water Development Report shows that improved wastewater management targets four actions:

• Reducing pollution at the source • Removing contaminants from wastewater flows • Reusing reclaimed water • Recovering useful by-products

Together, these four actions generate social, environmental and economic benefits for all society, contributing to overall well-being and health, water and food security, and sustainable development.

5.1 Innovation

There are two factors in particular driving innovation in the wastewater management sector;

• The scarcity of water • More and stricter state and federal requirements regulating wastewater

The scarcity of water has become a more pressing issue globally and the increasingly stringent state and federal requirements regulating contaminant limits for wastewater discharge are factors that make it more important for the industry to reclaim and reuse wastewater. Moreover, conventional treatment technologies alone – such as precipitation, filtration and ion exchange – can’t meet new and emerging discharge limits. Over the past decade or so, industrial wastewater treatment has experienced a transition from conventional filtration to high efficiency centrifugal filters to micro-, ultra-, and non-membrane filtration systems. Plants are too frequently designed for averages instead of peak conditions or are too optimistic in terms of performance or redundancy.4

But there are also factors inhibiting the innovations to reach the market.5 There is a lack of; • Awareness of the economic value of water by end users

3 Water and wastewater treatment, including recovery of resources 4 http://www.uswaterservices.com/news/2014/08/trends-in-industrial-wastewater-treatment/ 5 Water and wastewater treatment, including recovery of resources

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• Incentives for full scale implementation • Validation of innovative solution • Knowledge with regard to the occurrence of emerging pollutants, and how they are spread

New applications of industrial water reuse are emerging, and more efficient water recycling and process technologies can lead to the closing of the water loop in industries, according to the report. The following latest technological innovations in wastewater treatment, particularly for improving treatment efficiencies, are highlighted in the UNESCO report6 :

• Membrane filtration: Includes membrane technologies (reverse osmosis, microfiltration, ultrafiltration, etc.) for tertiary or advanced treatment, which is becoming more common.

• Membrane bioreactors (MBRs): Intensifies the membrane separation by incorporating it with the activated sludge process.

• Microbial fuel cells: Based on bio-electrochemical processes of bacteria.

• Biological treatment processes: Examples improved nitrogen removal and mineral crystallization processes, as well as granular sludge treatment processes using engineered microbial structures.

• Nanotechnology: An emerging field in water purification and wastewater treatment, as well as in water quality and wastewater monitoring (Qu et al., 2013).

• Wastewater monitoring and control systems: New sensors, computerized telemetry devices and innovative data analysis tools.

5.2 Trends

There are both macro trends, such as global mega trends, and micro trends, such as trends within the specific field of wastewater treatment, affecting our SMEs and the process industry partners in INSPIREWATER. Here we present examples of these and also a list of trends that the partners have stated affects them.

5.2.1 Macro trends

DECHEMA’s report Trends and Perspectives in Industrial Water Treatment7 states that there are a number of mega trends affecting industrial wastewater treatment deeply on a global scale: • consumption and population growth • shortage of resources • climate change • the growing significance of environmental protection

6 https://www.watertechonline.com/tech-market-unesco-report/ 7 https://dechema.de/dechema_media/Industrial_Watertechnologies_Positionpaper_ProcessNet2017-p-20002755.pdf

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The global population is dependent on clean water, not only for daily population consumption, but also for the industrial production of power, goods and services that keep the globe running on so many levels. As water usage at the industrial level starts to gain more attention, there are emerging challenges that wastewater treatment professionals are dealing with more and more.

In the article, “5 Key Trends that Will Shape the Future of Water & Wastewater”, produced by Flow Control talks about key emerging trends that are to impact industrial water and wastewater going forward: • Water security • Climate change • Reuse and recycle • New technology • Consumer education

The weight of each of these trends offers an opportunity for technological advancement, but is also contingent upon the adoption of new ideas and paths forward.

5.2.2 Micro trends

In this report, by micro trends, we mean the trends that are within the specific sector of industrial wastewater management. These are the ones we found:

• Increased recycling and decreased pollution in industrial wastewater • A holistic view on industrial wastewater management • Reuse and resource recovery, recovering by-products • Industrial symbiosis • A cross-technical approach • Increased usage of membranes

As you will learn in this section, there is a tendency to significantly decrease the amount of pollutants and increase the ability to recycle and reuse the industrial wastewater. At the same time, focus is more on wastewater management as a whole, rather than a specific technical treatment.

A SHIFT FROM: TOWARDS: Advanced treatment Solutions combining both technological and management aspects Wastewater treatment Reuse and resource recovery Being far from zero liquid discharge Recycling within a plant(s) Treatment only within a specific plant/section Industrial symbiosis One technique fits all Cross-technical approach with customised solutions Cost focus Focus on low environmental impact combined with cost and energy efficiency

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Increased recycling and decreased pollution in industrial wastewater Overall, industry is in a good position to use or recycle its wastewater internally. This might involve the direct use of untreated wastewater, provided its quality is good enough for the intended purpose. Cooling and heating water, as well as rainwater, may be suitable for washing, pH adjustment etc. However, process water which is sufficiently treated to match resulting quality with intended purpose has more potential for recycling, for example in conveying materials, rinse water, water-cooling towers, boiler feed, production line needs, dust suppression and washing.

According to the United Nations World Water Development Report, the toxicity, mobility and loading of industrial pollutants have potentially more significant impacts on water resources, human health and the environment than actual volumes of wastewater. There are two steps to handle this:

• Keep the volumes and toxicity of pollution to a minimum • Recycle as much water as possible

To keep the pollution to a minimum at the point of origin, from concept to design and in operations and maintenance, includes substitution with more environmentally friendly raw materials and biodegradable process chemicals, as well as staff education and training to address pollution-related issues. To recycle at maximum level within a plant is an overall aim to minimize discharge.

SMEs and informal industries often discharge their wastewater into municipal systems or directly into the environment. Industries discharging into municipal systems or surface water have to meet discharge regulations to avoid fines, so in many cases end-of-pipe treatment is required at the plant before release. In some situations, however, industries may find it more economical to pay fines than to invest in treatment to meet regulations.

A holistic view on industrial wastewater management The fact that so little wastewater management is currently occurring, particularly in developing countries, means that there are vast opportunities for water reuse and for the recovery of useful by- products, provided the appropriate incentives and business models are in place to help cover the substantial costs. 8

Waterworld presents top 7 smart water trends for 20179, produced by Smart Water Networks Forum (SWAN). Given concerns related to water scarcity, reliability and security, it’s now imperative to implement digital solutions to improve operations and efficiency, as well as build the right organisation and processes to support it. There will be a growing shift towards smart wastewater management solutions that urge for key industry stakeholders to collaborate and leverage best industry practices. This is something DECHEMA emphasise in their report as well.

Reuse and resource recovery, recovering by-products Wastewater treatment innovations used to focus mainly on advanced treatment technologies. The new and innovative solutions that are emerging, are combining both technological and management aspects. There is a clear shift from wastewater treatment to water reuse and resource recovery. Instead of ”treat and dispose”, it’s ”reuse, recycle, and recover resources”.

8 http://unesdoc.unesco.org/images/0024/002471/247153e.pdf 9 http://www.waterworld.com/articles/wwi/2017/01/top-7-smart-water-trends-for-2017.html

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The UNESCO report ”Wastewater, the untapped resource”10 states that future trends in innovation and research in wastewater will most likely focus on resource recovery. The report states that using wastewater or recycling treated wastewater is a process that can be repeated many times. It not only reduces the cost for industry of acquiring freshwater by decreasing intake, particularly in areas or times of scarcity, but also has the added benefit of reducing discharges. In this way, the need to meet regulatory standards and the risk of fines is minimized. Furthermore, the practice benefits the environment and adds weight to any social license to operate.

Trends in resource recovery move towards innovative management approaches, most notably integrated resource recovery, which in turn requires supportive regulations, market demand, investment, social acceptance and a willingness of different stakeholders to work together. It also requires a holistic view in order to ensure collective thinking among future practitioners, decision- makers and marketers.

Future wastewater treatment plants will be expected to deliver recovered resources and high-quality water for reuse in different sectors, while being cost-effective and self-sufficient in terms of energy.

The UNESCO report11 explains that industrial water reuse involves recycling industrial wastewater for industrial uses (process water) and non-industrial uses (irrigation, landscape irrigation, non-potable urban uses, etc.). Industries can also use treated municipal wastewater.

Further, the UNESCO report states that recycled industrial water has been used as process water in power stations, textile manufacturing, paper industry, oil refineries, heating and cooling, and steelworks for a long time. New applications of industrial water reuse are also emerging, such as the use of treated wastewater as cooling water in big data centres (for example, the Google data centres in Belgium and Georgia, USA). More efficient water recycling and process technologies can ultimately lead to the closing of the water loop in industries, while reducing water use by more than 90%.

Waterworld has presented eight trends for 2018 concerning the water industry12. One concerns wastewater in the process industry; Water reuse provides a key opportunity for a long-term supply option.

There is a trend to reduce the gap between treatment and recycling (GE Reports, 2015), obstacles may include implementation, costs not outweighing benefits, long payback periods, maintenance and increased energy consumption. Moreover, the location and availability of the wastewater stream must fit with its intended use. 13

Industrial symbiosis One notable opportunity for industrial wastewater use and recycling is the cooperation between plants in industrial symbiosis. This can involve the exchange of process water or the recycling of treated wastewater for purposes similar to in-plant recycling. The treatment technology options are

10 http://unesdoc.unesco.org/images/0024/002471/247153e.pdf 11 http://unesdoc.unesco.org/images/0024/002471/247153e.pdf 12 http://www.waterworld.com/articles/print/volume-33/issue-12/features/eight-water-trends-to-watch-in-2018.html 13 http://unesdoc.unesco.org/images/0024/002471/247153e.pdf

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Industrial symbiosis is best seen in eco-industrial parks, which strategically locate industries adjacent to one another to take convenient advantage of wastewater management and recycling. For SMEs, this can be a significant way to save on wastewater treatment costs. Important factors are the sharing of information to match needs, reasonable proximity, and reliability of supply in terms of quantity and quality, where the by-products of one enterprise are used as a resource by other enterprises, in a closed cycle.

Cleaner production through green industry creates value by lowering operational costs through the elimination of infancies by using the 3R strategy (reduce, recycle, reuse), which also helps limit environmental impacts.

A cross-technical approach DECHEMA’s report Trends and Perspectives in Industrial Water Treatment, says that the water technology needs of the industry sector do not only differ fundamentally from those of the municipal sector, they also vary strongly between industries and locations so that standardized solutions are not feasible. Rather, the different needs call for:

• a combination of methodical/technical know-how and • customized process technology

In view of the close interaction between production and water technology, integrative technologies and management systems are called for.15

Thus, there is a new need for a cross-technical approach. Water recycling can leverage synergies if:

• it can save energy at the same time • an ecologically, economically and technically purposeful solution for the substances separated from the recycled water can be found (resource-conserving handling of useful and valuable substances contained in the water) • it allows for rationalization effects • the reduction in the wastewater volume and contaminant content helps relieve the downstream wastewater treatment and avoids or reduces the impact on receiving water bodies

Increased usage of membranes In terms of water technology trends, there is a clear shift to make existing technologies, such as the notoriously energy-intensive seawater desalination, cheaper and more efficient.16

A report from Deloitte17 says that one of the most significant improvements the water industry has seen in recent years is the advancement in membrane technologies. The report from UNESCO

14 http://unesdoc.unesco.org/images/0024/002471/247153e.pdf 15 https://dechema.de/dechema_media/Industrial_Watertechnologies_Positionpaper_ProcessNet2017-p-20002755.pdf 16 https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Energy-and-Resources/gx-er-water-tight.pdf 17 https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Energy-and-Resources/gx-er-water-tight.pdf

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H2020-IND-CE, SPIRE-01-2016 indicates the same thing stating that the growth of membrane separation equipment is likely to gain momentum, as it utilizes economically viable and environment-friendly treatment technologies.

5.3 Trends according to project partners

Input from BFI, MOL, BLUE-tec, ArcelorMittal and Clariant confirm the information we have listed regarding trends in the previous sections. This is a list of what the partners mentioned regarding trends in the wastewater treatment field:

The global perspective – the mega trend • Stricter legislations forcing industry to change • Higher need for recycling due to water scarcity

Local perspective - systems • Increase the level of automated systems • Industry 4.0 • Lower the need for maintenance • Lower costs for analysing water

Local perspective - processes • Low energy consumption • Lower chemical demand • Reuse of water • Recover of valuable materials in the water • Zero Liquide Discharge (ZLD)

BFI18 sees an increase in the level of automated systems with low energy consumption, a lower chemical demand and a lower need for maintenance and therefore, less need for people to be involved in the process.

“When an industry has a polluted waste stream, the stream needs to be handled in an efficient way. It might, or might not, include recovery of valuable materials. There is thus a tendency to focus on saving energy.” says Martin Hubrich, BFI.

Many industries also strive to use waste heat for different purposes, especially within oil and gas. Both ArcelorMittal 19and BFI have also seen strong tendencies towards industry 4.0, which is the name for the current trend of automation and data exchange in manufacturing technologies. It includes Internet of things (IoT) and cloud computing. In a production process, one thoroughly goes through what might need to be changed in order to maximise, in this case, the wastewater management process.

18 Interview BFI, November 30, 2017 19 Questionnaire ArcelorMittal, April 4, 2018

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Blue-Tec20 sees the following trends – especially for the western countries: reuse of water, recover valuables in the water – heavy metals etc. and the goal of reaching Zero Liquide Discharge (ZLD), the situation in which all water is recycled within a plant or traded to another, and the only consumption is through evaporation, which in theory means all the wastewater is used or recycled and there is no discharge.

MOL says21 that in Asia more traditional industrial wastewater management systems are still in use, but they look at the western world and move forward quickly, starting to use the techniques being used now. MOL says that in Asia they might be slow starters, but they are adapting fast now to new techniques.

“There is an increased need for recycling, due to the water scarcity. This calls for global requirements for stricter standards concerning industrial wastewater management,” says Friedhelm Zorn, Head of Competence Center Environmental Technologies, Clariant.

It’s getting cheaper to analyse water and to check what chemical substances there might be in it. And along with that legislation regarding water treatment tightens up. The current guidelines will be changing. And, when Clariant, for instance, invest in new facilities, they have to decide whether they should go for a standard solution or save money by using alternative solutions. When the guidelines change, industries don’t have a choice any longer. They have to invest. But of course, they want to do it cost-efficiently and save money, at least in the long run.

20 Interview BLUE-tec, January 8, 2018 21 Interview MOL, December 17, 2017

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6. REGULATORY FRAMEWORKS AND INFLUENTIAL ORGANISATIONS

According to Grand View Research, over the recent years, key governmental authorities including the European Union have updated their existing regulatory framework as well as established new ones for controlling wastewater generation and promotion of recycle and reuse. For instance, the European Union introduced a blueprint on water treatment in Europe in 2012.

According to Sophie Carler at Jernkontoret22, the amount of waste in the process industry water is about the same as 20 years ago and it consists of the same type of particles. So the wastewater hasn’t increased, but the rules and regulations have become stricter due to water scarcity. There are mainly two things that drive the process industry towards investing in better wastewater management:

1. The rules and regulations have become stricter and demand that the industry reuses more of the used water.

2. A process that demands less energy and resources used is, in the long run, a good investment.

6.1 A need for suitable legal and regulatory frameworks

An effective regulatory framework requires that the implementing authority has the necessary technical and managerial capacity and performs in an independent fashion, with sufficient powers to enforce rules and guidelines. Transparency and access to information motivates compliance by promoting trust among users with respect to the implementation and enforcement processes. Achieving progress will require a flexible and incremental approach.

Policies and regulatory instruments are implemented locally and need to be adapted to varied circumstances. It is therefore important that political, institutional and financial support be given to ‘bottom-up’ initiatives and small-scale local (i.e. decentralised) provision of wastewater management services.

New regulations regarding water reuse and the recovery of wastewater by-products are also required. There is often little or no legislation on quality standards for these products, creating market uncertainties that can discourage investment. Markets for these products could be stimulated by financial or legal incentives (e.g. compulsory blending of recovered phosphates in artificial fertiliser).23

22 Interview, Jernkontoret, November 15, 2017 23 http://unesdoc.unesco.org/images/0024/002471/247153e.pdf

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6.2 Laws and regulations

Laws and regulations are essential when it comes to wastewater management. DOW24 explained that it is the buyer – for instance the steel or chemical industry – that will provide the supplier with information what is acquired by law in their particular case.

This is confirmed by Jan Koppe, MOL Katalyst, who says that “The legislation is making people aware of that they have to leave their comfort zone and it is the industry which knows the legislation best.”

According to an UNESCO report, there are several ways of regulating the treatment of wastewater25 • Regulatory instruments – standards, bans, permits, quotas, zoning • Economic instruments – changes, tariffs, subsidies, water quality markets • Agreements and information instruments – advocacy campaigns, self-regulation by industry, guidelines • Development of new services – national plans and programmes, project by external support agencies, household investment

In some situations, industries also find it more economical to pay fines than to invest in treatment to meet regulations.26

The steel industry The steel industry supports the ISO 14046:2014 standard for water footprints. It is currently the only methodology that contains all the factors necessary to assess a product, service or organisation’s water footprint.27 For further information, see www.worldsteel.org.

24 Interview, Dow, November 11, 2017 25 http://unesdoc.unesco.org/images/0024/002471/247153e.pdf 26 http://unesdoc.unesco.org/images/0024/002471/247153e.pdf 27 http://www.worldsteel.org

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6.3 2030 Agenda for Sustainable Development

Figure 3: Sustainable Development Goals, UNESCO

Global policy frameworks and the cross-cutting importance of wastewater is highlighted in the 2030 Agenda for Sustainable Development. It is stated through Sustainable Development Goal 6 on water and sanitation, and especially Target 6.3 on halving the proportion of untreated wastewater and substantially increasing recycling, and safe reuse globally.

Regional bodies and national governments reflect these global agendas in their policies on water resource management, the provision of water services, and the management of wastewater and solid waste. Policy-makers set goals, embracing or relating to more general principles which may be enshrined into general law and detailed regulations.

6.4 Influential organisations

There are a number of bodies that influence market for wastewater treatment in different ways of which some will be presented in this chapter.

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6.4.1 EIP – European Innovation Partnership

European Innovation Partnerships (EIP) aim to speed up innovations that contribute to solving societal challenges, enhance Europe's competitiveness and contribute to job creation and economic growth. EIPs help to pool expertise and resources by bringing together public and private actors within the EU, national and regional level, combining supply- and demand-side measures.

6.4.2 EIP Water - The European Innovation Partnership on Water

EIP Water is an initiative within the EU 2020 Innovation Union28. The EIP Water facilitates the development of innovative solutions to address major European and global water challenges. At the same time, EIP Water supports the creation of market opportunities for these innovations, both inside and outside of Europe.

EIP Water aims to remove barriers by advancing and leveraging existing solutions. Its implementation started in May 2013 with the main objective to initiate and promote collaborative processes for change and innovation in the water sector across the public and private sector, non-governmental organisations and the general public. This is mainly done via the establishment of Action Groups29.

There are 29 IP Water Action Groups in water management. The Action Groups are to develop, test, scale up, disseminate and stimulate the uptake of innovative solutions to water-related challenges by the market. There are eight priority areas30. One of the eight is Water and wastewater treatment, including recovery of resources31.

EIP Water focuses furthermore on the following five key barriers and bottlenecks to innovation in the water sector: 1. Access to funding and adequate financial instruments 2. Overcoming regulatory barriers 3. Promoting best practises in public procurement 4. Identifying the role of Public-Public/Public-Private Partnerships 5. Promoting testing facilities and dissemination of showcases

6.4.3 Initial Actions

The Steering Group of EIP Water invites Action Groups to develop and test: 1. Innovative concepts for (alternative) water supply, wastewater treatment and recovery of resources.

28 http://ec.europa.eu/research/innovation-union/index.cfm 29 https://www.eip-water.eu/action-groups 30 https://www.eip-water.eu/about/priorities 31 https://www.eip-water.eu/priorities/water-and-wastewater-treatment

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2. Source control methods for discharges of emerging pollutants and pathogens into the wastewater treatment system and cost-effective on-site technologies, removing as much as possible at source. 3. Water treatment innovation hubs, in regions that currently lack of appropriate sewer systems and treatment and sanitation facilities, applying smart technologies and decentralized systems with a focus on alternative water sources. 4. Systematic approaches to avoid loss of water, energy and resources in industrial production and water and wastewater infrastructure.

6.4.4 UNESCO

For its part, UNESCO through its ”water family”, is working to support Member States in responding to water quality challenges – including the World Water Assessment Programme of UNESCO, the International Hydrological Programme, the UNESCO-IHE Institute for Water Education in Delft, and numerous Category II Centres and Chairs around the world. Our action stretches across the board, from promoting scientific research, mobilizing and disseminating knowledge and facilitating the exchange of technological and policy approaches to building capacity and raising awareness on risks caused by emerging pollutants in water and wastewater. There are 31 members and 38 partners in UN-Water.32

6.4.5 World Steel Association

According to the organisation World Steel Association the industry is using 22% of the world’s fresh water. Through the organisation, the steel industry is committed to manage their water responsibly. They are doing so by minimizing water intake in areas of water scarcity, ensure high quality water returned to source and exchange and implement best practices. The World Steel Association has set up seven focus areas of which water is one of them. In order to address its challenges and ensure the sustainable development of the steel industry, steel companies are taking action both on the individual company level and by collaborating on a global level on a range of initiatives through Worldsteel.33

32 http://unesdoc.unesco.org/images/0024/002471/247153e.pdf 33https://www.worldsteel.org/en/dam/jcr:938bf06f-764e-441c-874a-057932e06dba/Sust_Steel_2017_vfinal_web.pdf

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7. POTENTIAL MARKET

BFI34 states that has 20 steel producing sites with cooling water demand hot rolling mills including descaling, casting units, vacuum treatment, partly with wet gas washing - meaning potential need of 2 - 10 magnetic separators per site. There are also several dozen flat steel, wire and tube producing sites with hot rolling units. In Europe, ArcelorMittal has 12 sites and Evraz has five. All in all there are more than several dozen flat steel, wire, profiles and tube producing sites with hot rolling units.

BLUE-tec35 looks upon the market in a broader perspective than the steel industry and claims that the industrial wastewater market is huge. BLUE-tec is concerned on how the company can get a share of the market. The challenge is in the barriers to enter the market.

“There are several options – go directly to the end-user or reach end-users through contractors. Either way, it’s important with alliances and cooperation with contractors. You will have to have a unique product that is hard to copy. Just to sell know-how is very difficult.” says Lex van Dijk, BLUE- tec. MOL36 delivers a brand-new technique, doesn’t yet have a market share and sees the potential size of the market as being as big as the wastewater treatment market. In Germany MOL is a well-known company – all water companies are aware of MOL. Outside of Germany MOL is not that well known.

7.1 Industrial wastewater - an undervalued resource

Industrial wastewater remains an undervalued resource, all too often seen as a burden to be disposed of or a nuisance to be ignored. This perception needs to change to correctly reflect its value – wastewater is a potentially affordable and sustainable source of water, energy, nutrients, organic matter and other useful by-products. Improved wastewater management, including the recovery and safe reuse of water and other key constituents, provides a great deal of opportunities. This is especially true in the context of a circular economy, whereby economic development is balanced with the protection of resources and environmental sustainability, and where a cleaner and more sustainable economy has a positive effect on water quality. 37

The generation of wastewater by different industries is listed in Appendix VII.

The second edition of Water Tight, a publication by Deloitte, has innovation as the central theme. It is about how industries explore new ways to tackle:

• supply-side • demand-side

34 Interview, BFI, 35 Interview, BLUE-tec, 36 Interview, MOL, 37 http://unesdoc.unesco.org/images/0024/002471/247153e.pdf

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• regulatory challenges or • business-related challenges

This is precisely what the IMCG Innovation Arrow encourages companies to do – to work with several different processes in parallel in order to reach market impact. The Innovation Arrow process model is designed to open up the perspectives, develop a broader plan of activities and to foresee upcoming necessary activities for a successful business development. It is recommended that this is achieved by bringing in competence to the team that adds expertise and engagement for specific processes. One cannot expect top achievements of a person if she or he doesn’t have the competence needed to handle the specific process. Needless to say, an engineer could not be expected to be in charge of the market activities. Neither could a communicator be expected to handle the development of the technology itself.

Deloitte’s report focuses on the water sector from a global perspective, with country specific examples that provide a view of how some trends could work in a local setting. Demand for water continues to rise. According to The Organisation for Economic Co-operation and Development (OECD), by the middle of the century water demand will increase by 55% compared with 2015 levels. This increase will mainly be driven by population growth. Since Water Tight 2012, the world’s population has grown by 300 million and the United Nations (UN) estimates that it will further increase by another 2.4 billion people between 2015 and 2050 with the world’s total population reaching 9.7 billion in 2050.

7.2 A growing market

The market growth is highly due to the mega and micro trends previously described. Urbanization, dietary and lifestyle changes will accelerate the growth in demand for water. With rapid population growth expected in parts of Asia, which are already under water stress, these areas face acute water scarcity problems. The intense competition between water users means that as early as 2030, the planet may face a 40% water supply shortfall assuming business as usual.38 But it’s also due to other facts such as growth in certain industry sectors.

Raw and processed water is used in several applications including cooling, washing, and processing in various manufacturing industries such as pulp and paper, pharmaceuticals, chemicals, power, metal & mining, semiconductors, textiles, oil and gas. Global market insight says that fast growth in these industries is leading towards more water pollution. Increasing contamination due to rapid industrialization coupled with scarce resources has led to strict government regulations, which is expected to be among the key driving factors for the wastewater treatment equipment market.

The water technology market intelligence provider BlueTech Research39 has calculated the value of industrial wastewater. Focused geographically on the and Europe, the study examines industries that include pulp and paper processing and manufacturing, chemicals production, meat and poultry, pharmaceuticals production, dairy processing, and the brewing industry. The

38 https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Energy-and-Resources/gx-er-water-tight.pdf 39 http://www.waterworld.com/articles/iww/print/volume-15/issue-2/columns/market-outlook-calculating-the-value-of- industrial-wastewater.html

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H2020-IND-CE, SPIRE-01-2016 calculations were based on the volumes of wastewater generated per unit of product processed or manufactured.

Cleaner production40 has an important place in industrial ecology, which also includes:

• pollution control (reducing and preventing) • eco-efficiency • life-cycle thinking and • closed loop production

These allow the identification of opportunities for enhanced resource efficiency, recovering by- products and value-adding activities with the ultimate goal being zero liquid discharge.

Once an industry knows its water footprint, it can target its wastewater generation to look for possibilities of water reuse and recycling. Moreover, it can expand its efforts into water neutrality, which means that after the industry has made efforts to use or recycle its wastewater, the negative impacts of remaining water pollution can be compensated for by investing in projects that promote the sustainable management of water (i.e. wastewater treatment) within local environments. Thus, wastewater might also be seen as a resource for promoting investment.

7.2.1 Water use in the steel industry

The major environmental effects of untreated wastewaters of steel plants if discharged into the receiving water bodies are toxicity to aquatic life, reduction of dissolved oxygen, silting due to suspended solids, taste and odour problems, temperature rise affecting the dissolved oxygen, effect on the aquatic life, and formation of oil slicks due to the floating oil.41

ArcelorMittal provided us with an article which, though dated 2003, should be considered valuable input for this report. The whole article is to be found in Appendix V, with information regarding water use for various unit operations in the steel industry.

ArcelorMittal42 refers to the article mentioned above when being asked about water use in the steel industry. At their site in Asturias they use 12Mm³ yearly. The water intake 13 m³/ton steel generates a water discharge of 3 m³/ton steel.

Clariant43 states that at their plant in Tarragona, Spain, they handle 350-400 tons of water/day. In the year of 2017 that was 120,000m³. The very same year, the worldwide use, at Clariant’s 130 production sites was 12.6 million m³.

40 http://unesdoc.unesco.org/images/0024/002471/247153e.pdf 41 http://ispatguru.com/waste-water-and-waste-water-treatment-in-the-steel-plant/ 42 Questionnaire, ArcelorMittal, April 4, 2018 43 Interview, Clariant, March 9, 2018

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7.3 Why invest in new wastewater treatment according to partners

In practice, the goal for the process industry is to go beyond mere pollution abatement and to seek to gain value from wastewater, if for no other reason, as an additional means of paying for wastewater management and for enhancing the economic sustainability of the system.

During our interviews with our SMEs we discussed the different reasons the process industries have for investing in their particular solution and what drive the industries to invest in it. Here BFI and BLUE-tec list their thoughts about it:

According to BFI44 the motivation for buying a magnetic separator would be: • replacement of old equipment, increase of cooling water need • additional filter needed • improvement of cooling water quality regarding solid content to decrease maintenance caused by scaling in e.g. heat exchangers (decrease heat out-take, in worst case clogging), wear of nozzles/vales/pumps correlating with shut downs/production stop • Further selling factors of the magnetic separator: compact automated plant, chemical free, energy saving (CO2), no compressed air needed

According to BLUE-tec45 the motivation for buying a BLUE-tec’s technique would be: • Legal standards: rules are changing • To improve energy efficiency • Save money

7.4 Global insight

One estimate that UNESCO presents suggests that the volumes of industrial wastewater will double by 2025.46 According to the large Indian company "Everything about Water", global water consumption is doubling every twenty years. The global water industry is now affluent with quick innovations and technologies. Over the past several years, global water market trends have witnessed several enormous changes. Also, the very concept of people toward water and its use has had a notable change and water reuse; water desalination and wastewater management have gained huge significance.47

Wastewater has long been seen as a burden for disposal. With rising water scarcity in many regions, this is changing, and we see increasing recognition of the importance of wastewater collection, treatment and reuse. Infrastructure is a central issue in all countries. Data availability remains a persisting challenge, particularly in developing countries. Recent analysis shows that out of 181 countries, only 55 had information on the generation, treatment and use of wastewater, and the

44 Interview, BFI, November 30, 2017 45 Interview BLUE-tec, January 8, 2018 46 http://unesdoc.unesco.org/images/0024/002471/247153e.pdf 47 http://eawater.com/trends.html

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H2020-IND-CE, SPIRE-01-2016 remaining ones had no or only partial data. In the majority of countries where data was available, it was outdated. This information bottleneck impedes the research and development necessary to craft innovative technologies and adapt existing ones to local needs.48

The United Nations World Water Development Report 2017, states that on average, high-income countries treat about 70% of the municipal and industrial wastewater they generate. That ratio drops to 38% in upper middle-income countries and to 28% in lower middle-income countries. In low- income countries, only 8% undergoes treatment of any kind. These estimates support the often-cited approximation that, globally, over 80% of all wastewater is discharged without treatment.49

7.4.1 North America/Europe 50

The U.S. is one of the major consumers of wastewater treatment equipment. Rising water intensive gas exploration activities coupled with substantial demand for industrial water reuse in the country is expected to enhance the growth over the coming years. GE Water & Process Technologies (now SUEZ) and Ecolab, Inc., are some of the key market players that have a dominant presence in this country. The companies are focusing on optimum business growth by implementing various growth strategies. They are forming strategic partnerships with regional players and on providing technological expertise for industrial wastewater treatment in sectors including oil and gas and pulp and paper.

The growth of membrane separation equipment is likely to gain momentum in the short term, as it utilizes economically viable and environment-friendly treatment technologies. Sludge equipment was the second-highest revenue-generating segment of the industry in 2015. This equipment category uses activated sludge and other physical and chemical methods such as dewatering, thickening, and thermal oxidation. This segment is used for treating both municipal and industrial waste slime. Increasing requirements for the minimization of the global water footprint and optimum treated water quality yields has pitched the number of membrane bioreactor installations especially in North America and Europe regions. This is anticipated to drive the demand for tertiary treatment technologies and ultimately propel the market growth by the end of 2025. Municipal and industrial are the major application segments of the global market. In terms of revenue, municipal application held the highest share constituting 66.3% of the overall market. In terms of revenue, the market for municipal wastewater application is likely to gain significant market growth by 2025.

The industrial sector receives increasing attention from water technology providers due to opportunities presented by increasingly stringent regulations or growing production capacity, as is the case for craft brewing. The figure below shows the U.S. and European wastewater and biochemical oxygen demand for the six industries identified.

48 http://unesdoc.unesco.org/images/0024/002471/247153e.pdf 49 http://unesdoc.unesco.org/images/0024/002475/247553e.pdf 50 http://www.grandviewresearch.com/industry-analysis/water-and-wastewater-treatment-equipment-market

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Figure 4: US and European Wastewater and Biochemical Oxygen Demand Source: Global market insight

Industrial processes that use water always need specific grades which are determined by measuring parameters such as conductivity, pH, dissolved oxygen content, temperature, and other dissolved compounds, namely microbial count and ammonia. Regions such as Europe and North America are anticipated to witness high demand for this method due to strict norms pertaining to industrial effluent water discharge into water bodies.

According to the UNESCO report referred to earlier, emphasis is on region legal instruments when it comes to wastewater in Europe and Northern America.

7.4.2 Asia and the Pacific

According to the UNESCO report51, wastewater is being increasingly recognized as a potential resource for different sectors across the Asia and Pacific region, with uses ranging from climate resilience to by-product recovery.

Global market insight states that Asia Pacific was the major contributor and is anticipated to grow at a high rate owing to large population size, portable water scarcity, and rapid industrialization in countries such as , and . The wastewater treatment equipment market size is likely to witness significant growth due to stringent water regulations and increasing water recycling and reusing trend.

51 http://unesdoc.unesco.org/images/0024/002471/247153e.pdf

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7.4.3 The Arab region

Industrial wastewater management is costly and controversial in the Arab region. Chemical and biological effluents from the textile and tannery industries in Egypt, Morocco and other Arab countries affect surface and groundwater supplies, but closing these small-scale businesses threatens traditional livelihoods. On a larger scale, brine released from desalination plants includes chemical residues that negatively affect coastal ecosystems. Oily water brought to the surface during oil extraction contaminates aquifer systems and degrades land resources.

7.4.4 Latin America

The UNESCO report52 states that Latin America and the Caribbean is largely a humid region with abundant water resources. Agriculture is the largest user of water, accounting for over 70% of withdrawals, while domestic supplies and industry represent 17% and 13%, respectively (AQUASTAT, 2016).

52 http://unesdoc.unesco.org/images/0024/002471/247153e.pdf

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8. POTENTIAL CUSTOMERS

In the INSPIREWATER project our SMEs have the opportunity to test and demonstrate their technological inventions at the sites of large, global process industries like Sandvik, ArcelorMittal and Clariant. These industries constitute typical potential customers.

After having had discussions with the SMEs in the project we have come to the conclusion that there is an option to go through a distributor to reach the potential customers. Not all customers want to buy directly from small technology suppliers.

As the steel industry is very much in focus for INSPIREWATER and also being of interest to potential customers for our three SMEs, there is an Appendix IV listing top steel producers 2016 made by Word Steel organisation.

This chapter starts off with an introduction of different types of plants, i.e. old and new ones don’t share the same kind of needs concerning wastewater treatment equipment.

8.1 Brownfield and Greenfield plants

Old plants need to adapt to stricter regulations as well as new ones, in order to reduce and prevent pollution. With established plants, while some re-engineering is possible, pollution reduction might be the only option. This includes: • substitution with more environmentally friendly raw materials and biodegradable process chemicals • staff education • training to identify and remedy pollution issues

A holistic water management point of view is needed. And the possibility to alter brownfield steel plants further is often limited due to53; • space restrictions and/or • existing water interdependencies between processes

Presently, many companies refrain from recovering valuable substances because of the high capital expenditure required for the technical realization of these processes. Moreover, in the case of older plants, significant remodelling would be required, something that is often difficult to implement for lack of space and due to the temporary production downtimes involved and the resulting costs. Consequently, technical concepts for the recovery of valuable substances can primarily be implemented when planning production extensions or new projects.

53 www.wordsteel.org

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In addition to these practical and organisational problems it must be considered that individual concepts tailored to the respective application case have to be developed for the realisation of valuable substance recovery units. This task is so complex that it usually requires external support (process design including laboratory tests and pilot plant testing). Practicable solutions are in most cases obtained when combining adequate materials and management with a range of established separation processes.54

In Greenfield plants water consumption considerations were taken into account during the design phase as new plants will be designed for optimal use of resources.55

8.2 Selling directly to the customer

8.2.1 How ArcelorMittal and Clariant perceive the buying process

In the INSPIREWATER project we have direct access to some of the SMEs potential customers. The SMEs get to demonstrate their technologies at their plants and perform long term testing. Through an interview with Clariant and a questionnaire filled in by ArcelorMittal we have obtained valuable information on the buying process. Some of the information is presented here and all of it is to be found in Appendix II and Appendix III.

Table 1: Case study – ArcelorMittal and Clariant Topic(s) discussed ArcelorMittal Clariant Wastewater management Wastewater management Conventional arrangements techniques used today process is based on (global standard) including wastewater treatment plants. chemical / physical and In general, physio-chemical biological treatments. treatment plants for pollutants removal: scale pits and/or These standard processes are conventional coagulation- complimented by specific flocculation and decantation processes used in addition processes in combination with before or after the standard reagents addition and/or sand- process. filtration and/or cooling towers.

Buying process Handled on a global scale by Standard equipment is often continent division. In Europe, bought locally. Special there is a central purchasing equipment if required is department located in usually bought on the global . market.

54 https://dechema.de/dechema_media/Industrial_Watertechnologies_Positionpaper_ProcessNet2017-p-20002755.pdf 55 https://www.wordsteel.org

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People involved in the buying There is a specialised group of Laboratory personnel, process people devoted to purchasing technical personnel, decision- topics. They are the decision- makers, purchasing makers. Local staff from the department. sites inform them technically and give support to them in the decisions. Major reason for investing in The major reason is legal A need for an add-on to the new wastewater treatment restriction. These regulations standard process. To change apply globally to all the system completely will not ArcelorMittal sites. Each be an option. There should be country and each site has a certain degree of specific regulations. conventional systems and since there are frame conditions that ask for additional steps, the new technologies that are being tested and developed must be economic, cover ecologic aspects like reduced energy consumption and CO2 footprint, be reliable and user-friendly (not complex systems).

Main objectives to test Savings of: Water Economic driven, have an wastewater management consumption, effective treatment of techniques in the operational costs and wastewater. INSPIREWATER project investment costs for a new technology. How to become a supplier It is preferable to buy directly When Clariant needs add-on from a company (cost savings). processes, they do tests to see Many administrative it will make the quality documents are required from improvement. They conduct the company. In relation to laboratory tests, piloting etc. If requirements: if they have yes, a technical specification is previous successful stories in written and that is the base for big/medium scale companies, the purchasing phase. Clariant this is a key factor. As well, a contacts specific suppliers of a very important factor is the certain, chosen technology and deep analysis done by the ask them to see if they qualify suppliers in relation to the for the specification, then technical feasibility of the conduct a second pilot test for technique and the economical ensuring dimension and pros/cons in terms of technology. operational and investment costs. At the technical site, one

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collects the results of the testing. This is converted into a technical specification and handed over to the purchasing department which starts the commercial part. Purchasing department search on the market for suitable suppliers.

To test new techniques is a way of requiring a toolbox of techniques and collecting interesting data to evaluate. Timeline for becoming a It depends on urgencies. The timeline depends on the supplier complexity, but it could take six months to do the following principle steps: 1. Lab phase, lab scale. And if lab phase works; 2. Piloting in the field. And if pilot works; 3. Technical specification ready for project realisation

8.2.2 How BFI, BLUE-tec and MOL intend to reach the customer

BFI56 has a planned distribution chain, which is to go directly to the steel industry. But it’s a time consuming procedure that involves three steps: 1. First contact is often with the engineers – the operators, who have the knowledge to see the advantages of the solution and understand that the solution will not involve additional work to handle 2. When the engineers are convinced they will talk to the chief of the site and convince that person of the advantages. This person will often calculate the return on investment (ROI). 3. When the chief of the site has the ROI he or she go to the purchase department who looks at both the technical and economic aspects of the product. The financial aspect is in focus.

BFI states that the demand-side must be convinced that the magnetic separator is solving problems, simplifying processes or being a reliable technology bringing savings in the subjects of e.g. operational cost.

BLUE-tec57 provides parts of the industrial wastewater management system – it’s an add-on to existing systems. BLUE-tec is usually dealing with end-users, like Clariant. The distribution chain has

56 Interview BFI, November 30, 2017

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1. First contact is a process engineer, a person that is very similar to the people working at BLUE-tec. They understand one-another and this first contact could be someone working at the environmental department or someone process oriented. This person is looking for solutions for an identified problem. The main drive for her or him is to solve the problem, profile her/himself and make an improvement for the company. This person doesn’t make purchase decisions. 2. When the process engineer is convinced that Blue-tec has a great solution, she or he can go to a manager and sell the product. This can only be properly done if BLUE-tec puts in a lot of effort by providing testing modules, making a pilot demonstration and often also a business calculation. 3. The manager, if interested, can now talk directly to BLUE-tec.

Since the steps described above are time consuming, BLUE-tec has a new strategy, which includes to aim for contractors, companies that provide entire systems for the industry, rather than go directly to the large industries.

MOL’s58 customers are all types of industries that have cooling systems. The steel industry has a very high demand on cooling water, so it’s a big potential customer. The first step to reach a potential customer within the process industry is to talk to the utility manager. The one that take care of plant operations, often controlling more than one plant. A person in this position will understand the technique and how it can be cost-efficient. This person is then to convince her/his superiors – usually someone responsible for the environment, the security environment. Jan Koppe at MOL sees a person who is inclined to change from one system to another and who is willing to step out of the comfort zone, as probably being in the range of 30-50 years old. He or she must be convinced that making a decision to change the wastewater treatment and include the catalyst will generate a positive effect on their career. That is most likely what will drive them to make the decision.

When MOL is searching for customers, they look for companies that don’t produce chemicals. The companies of interest are the ones with cooling water processes. The perfect customer is well known on the market – such as Clariant, Frankfurt. When a company like Clariant knows about the life-time and side-effects of our product, other companies dare to try it. A benefit with being in a project like INSPIREWATER is that MOL gets to know the vocabulary of a certain industry – all industries have its own. MOL’s catalyst could be used as a tool together with the technical solutions that BFI and BLUE-tec provide.

8.3 Going through a distributor

During the interviews with MOL59, BFI60 and BLUE-tec61, the option of going through another company in order to reach the final customer, the process industry, came up. As the three SMEs

57 Interview BLUE-tec, January 8, 2018 58 Interview MOL, December 17, 2017 59 Interview, MOL, December 17, 2017

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H2020-IND-CE, SPIRE-01-2016 technologies are ”only” a part of a complete industrial wastewater system, it could be of interest to deliver the magnetic separator to a distributor who offers a complete system/several of parts to a system to the industry.

Possible distributors are listed in Table 2. These have all been named by our project partners. However, there are downsides to these types of distributors. BFI with its magnetic separator says it could be of interest to deliver the magnetic separator to someone who offers a complete system to the industry. Today these kinds of distributors will typically distribute sand filters – a technique used for a very long time. They are not that familiar with magnetic separators.

“Possible distribution chain could involve these kind of companies – for example SMS and . They are selling hot rolling mills, which today include sand filters, but could, in the future, if convinced, be including magnetic separators instead”, says Martin Hubrich, BFI.

BLUE-tec is not only interested in the chemical or steel industry, which means that a distributor can be operating in other industries.

“SUEZ Water Technologies & Solutions, Veolia, Badure, Fluor, Danieli, AlfaLaval and TetraPak could be potential distributors, but large contractors often want to own the solutions they sell, therefore they are also often potential competitors. Many of them buy smaller companies in order to get to their innovative techniques”, says Lex van Dijk, BLUE-tec.

MOL also mentioned SUEZ as a global company that could act as a distributor. Other companies with a similar function are Best Water Technologies and Kurita Water Industries, according to MOL.

“When a company like Veolia Water Technologies writes about your technique, it’s worth a lot, since they have direct access to the market and are in touch with all the potential customers. However, a distribution chain that involves a distributing company is complicated. They are not very prone to change what they already know, they use traditional ways of treating water – they use more chemicals.” says Jan Koppe, MOL Katalyst.

60 Interview, BFI, November 30, 2017 61 Interview BLUE-tec, January 8, 2018

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Table 2: Possible distributors Distribution Country Website Comments Named company by Danieli Italy www.danieli.com Global partner in the steel BFI industry, introduces BLUE-tec innovations to the steel industry. SMS Group Germany www.sms-group-com Global partner in the world BFI of metals. Innovation and application within design of a new plant, modernization, digitalization or life cycle services.

Suez Water France https://www.suezwaterte In 2017 the environmental BLUE-tec Technologies chnologies.com/applicati giant Suez integrated the MOL & Solutions ons/wastewater- technology supplier into the treatment water services provider’s business, GE Water.

Veolia Water France https://www.veoliawater Specializes in water BLUE-tec Technologies technologies.com/en treatment solutions and MOL provides the complete range of services required to design, build, maintain and upgrade water and wastewater treatment facilities for industrial clients and public authorities. Fluor The US http://www.fluor.com/cli Fluor delivers engineering, BLUE-tec ent- procurement, fabrication, markets/industrial/water construction (EPFC) and maintenance solutions to government and private sector Clients in diverse industries. Badger The US https://www.badgermete Badger Meter is a leading BLUE-tec Meter r.com/industries/water- marketer and manufacturer wastewater/ of products using flow measurement and control technologies developed both internally and with other technology companies. Its products are used to measure and control the flow of liquids in a variety of

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applications. Jacobs http://www.jacobs.com/ Jacobs offers a complete BLUE-tec (Comprimo) water-and-wastewater solution package to its clients’ water, wastewater and flood control challenges across the world. Our in- depth knowledge of the regulatory environment enables us to adapt solutions to help our clients address their stakeholder needs – from investor to end user. Best Water Germany www.bwt-group.com Claims to be Europe’s MOL Technologies leading water technology (BWI) group. BWT offers products, water treatment systems and services for: drinking water water for the pharmaceutical industry and process water heating water boiler and cooling water water in air-conditioning systems swimming pool water Kurita Water Japan www.kurita.co.jp Global company providing MOL Industries solutions to diverse issues associated with water and the environment.

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9. COMPETITORS

Many of the potential distributors mentioned in the previous chapter can very well be considered potential competitors. They are listed here along with other potential competitors.

Furthermore, BFI and BLUE-tec have provided a list of their competitors. MOL says they have no competitors. Even though the potential market for the SMEs of INSPIREWATER is enormous, there are a tremendous amount of other possible treatment options, including stabilisation ponds, anaerobic digestion and bioreactors to produce biogas, activated sludge, different types of membranes, UV radiation, ozonising advanced oxidation and the use of wetlands of various sorts.

9.1 Competitor found through desktop research

Many of the potential distributors mentioned earlier focus on improving their presence through acquisitions and collaborations in potential regions and increasing price competency to maintain their market position. Wastewater treatment equipment market share is comprised of Ashland Water Technologies, Aquatech International Corporation, Danaher Corporation, Degremont SAS, Kemira OYJ, GDF SUEZ S.A., GE Water and Process Technologies, The Dow Chemical Company, Veolia Environment SA, and Xylem Inc. Companies focus on improving their presence through investing in supply chain process in order to expand their end-user base which is likely to be a key strategy.62

GWR63 also mentions GE Water and Process Technologies, Veolia Environment S.A, Aquatech International Corporation, Ashland Water Technologies and Suez Environment as key actors. Furthermore, they mention Buckman Laboratories International, Inc., Best Water Technology AG and Culligan International Company, as of being of equal importance.

Note that as of October 2017 Suez acquired GE Water Technologies.64

Samco lists nine companies that, according to Samco, are among the best companies in the world when it comes to delivering wastewater treatment systems. To this list we added Samco themselves.65

62 https://www.gminsights.com/industry-analysis/wastewater-treatment-equipment-market 63 http://www.grandviewresearch.com/industry-analysis/water-and-wastewater-treatment-equipment-market 64 https://www.suez.com/en/News/Press-Releases/SUEZ-finalizes-the-acquisition-of-GE-Water-and-Process-Technologies 65 https://www.samcotech.com/9-best-industrial-wastewater-treatment-equipment-supply-technology-companies/

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Table 3: Large companies delivering wastewater treatment systems, listed by Samco Company Country Website

Dow Water & Process Solutions US www.dow.com WesTech Engineering, Inc. US www.westech-inc.com Calgon Carbon US www.calgoncarbon.com Evoqua Water technologies US www.evoqua.com SUEZ Water Technologies & US www.suezwatertechnologies.com Solutions (former GE Water & Process Technologies) Aquatech US www.aquatech.com Xylem US www.xylem.com Nalco Company US www.nalco.com Veolia Water Technologies France www.veoliawatertechnologies.com/en Samco US www.samcotech.com

9.2 Competitors named by project partners

IMCG interviewed BFI, BLUE-tec and MOL in order to get their view on who are their competitors. The information received is presented below.

BFI (magnetic separator) BFI’s magnetic separator can be used for the removal of containing particles in cooling waters, gas washing waters and cold rolling or grinding emulsion. Focus in this project is the treatment of cooling water. BFI knows the competitors very well. Two of them are Nordic Water and Leiblein, who offer a competing technology, sand filter. It has similar removal efficiency, but sand filters have more expensive operational costs due to the need of more energy (operational pressure: 3 – 4 bar), compressed air. Furthermore, sand filters produce a high amount of sludge, which has to be treated further requiring chemicals and energy for operation, for instance a centrifuge.

Other competitors producing magnetic separators are Steinert, Outotec, Eclipse and Rowland magnetics. They are based on different technical applications, such as the use of electro magnets (consuming energy), mash networks (tendency of clogging in presence of oil/grease) or different hydrodynamics/magnet arrangements. Applications of these magnetic separators in the iron and steel industry could not be found. BFI has done a complete competitor analysis.

BFI’s cooling water technology competes with sand filters and BFI has done a study to compare the several technologies. BFI’s technology has well documented advantages. The key innovation factor is that it is a high efficient chemical free and energy saving technology for separation of magnetic particles. The magnetic separator technology generates benefits that are easy to understand:

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• The technology generates lower sludge amounts (0.6% of the treated flow compared to 3 - 10% for sand filters) with higher solid contents than sand filter, reducing the dewatering effort, which has a positive effect on investment costs and operational costs. • Furthermore, it uses no chemicals and operates pressure less and therefore uses less energy. Additionally, the selective recovery of iron particles, makes it possible to reduce disposal costs by an internal metallurgical re-use of separated particles as ore or scrap substitute in the steel industry.

9.2.1 BFI’s competitors

Table 4: Competitors listed by BFI Company Country Website Comments STEINERT Germany www.steinertglobal.com/grp/en/ Magnetic separator Elektromagnetbau GmbH

Outotec Sweden www.outotec.com Magnetic separator

Eclipse Magnetics UK www.eclipsemagnetics.com/row/ Magnetic separator

Dango & Dienetahl Germany http://www.dds-filter.com/ Gap Filter

Nordic Water Sweden http://www.nordicwater.com/de/ Sandfilter, continuous Products AB Leiblein Germany http://www.leiblein.com/filtration/f Sandfilter, continuous and

lowsand-filter.html discontinuous Andritz AG Austria https://www.andritz.com/group- Sandfilter, continuous

en/sitemap

BLUE-tec (forward osmosis, membranes) BLUE-tec works with development in membrane contact process technology. And forward osmosis is a low fouling and low temperature concentration technology, which is able to replace evaporators for the removal of water from products. Several developments have been achieved in the last years: membrane flux has been increased by a factor of 3, membrane modules up to 15m2 are available now, the energy consumption in the field of operation of evaporators is 15kWh/m3 water removed.

Forward osmosis helps operation managers to reduce energy consumption in comparison to the use of evaporation technology. Another advantage of this technology is the mild concentration, compared to evaporation.

Two years ago, BLUE-tec took a “road trip” – covering parts of Europe and the US - in order to get a good idea of both the market and the competitors. They looked mainly at direct competition. There are no actual competitors in the Netherlands, but in Europe and the US there are 4-5 competitors working within the same technology. There are companies similar to BLUE-tec, such as Oasys in Boston, US and AquaPorin in Denmark. Several competitors are also to be found in California, US.

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BLUE-tec knows people in person at those companies and knows the companies’ weaknesses and strengths. The indirect competitors are using techniques that can replace BLUE-tec’s technique. Those companies are often big, such as General Electric.

BLUE-tec’s technique has a clear benefit: more and more industries face the request for zero liquid discharge (ZLD), as described in previous chapters, due to undesired compounds in the final effluent. BLUE-tec’s technology can make zero liquid discharge possible against acceptable cost. Furthermore, BLUE-tec's technique lowers the energy consumption by 50%.

It is easy to explain what BLUE-tec’s technique does – it extracts water from fluids in an efficient way. The fluid could be wastewater or for example juice. But it’s not as easy to explain the complicated technique behind this. It’s also hard to demonstrate the cost effectiveness of it compared to competing techniques such as evaporation. There are many replacement technologies and evaporation is the main competitive replacer.

9.2.2 BLUE-tec’s competitors

Table 5: Competitors listed by BLUE-tec Company Country Website Comments Oasys Water US www.oasyswater.com Builds a full scale FO on power plant in China and scale gas in the US - for treating oil field brine. Furthermore there are new initiatives of FO membrane production. Modern Water UK www.modernwater.com Full-scale FO-RO plants in Gibraltar and Oman for drinking water production through seawater desalination. Trevi Systems US www.trevisystems.com Builds several FO pilots – focus is on desalination - based on their own patented draw recovery system. No commercial units are available yet. H2OFTS US www.ftsh2o.com One of the pioneers on FO – module producer, no references. Porifera US www.porifera.com One of the main membrane producers. module and pilot plant producers. Aquaporin Denmark www.aquaporin.com One of the main

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membrane producers. producing special membranes based on Aquaporins, collected a lot of money, still academic. Kunst GmbH Germany http://www.gebr- Three ammonia kunst.de/drucklufttechnik.php membrane stripping units with Liquicel membranes / strong position in Switzerland and Germany. Sustec bv Netherlands www.sustec.nl Limited activities in this field anymore, due to lack of references. Membrane distillation. Solar Spring GmbH Germany www.solarspring.de Small AquaStill Netherlands www.aquastill.com Small company on MD, producing modules and pilots. MemSys Germany www.memsys.com Producer of MD modules, recently taken over by NCHL from Hong Kong. Toyobo Japan www.toyobo-global.com One of the main membrane producers.

9.2.3 MOL Katalysatortechnik GmbH - MOL (catalyst)

“MOL’s technique is like the first car. The competitors are the horse and carriages. It’s a brand-new technique that can take over the conventional water treatment techniques. It’s a thriving market – the customers need to use less chemicals, to secure the environment. It’s much easier to sell an update of an already established technology, than to sell a new technology that replaces something old.”, says Jan Koppe, owner of MOL Katalysatortechnik GmbH.

MOL’s catalyst is a new technique – a tool that speeds up the reaction when one intends to influence water structures. It’s a tool for raising the efficiency of the chemicals. The benefits include not only speeding up the reaction, but also demands less chemicals, less maintenance (reduces the need for cleaning), uses less energy and demonstrates increased heat transfer. The novel and highly advanced technologies for the purification of air and water developed by MOL combine energy efficiency with eco-friendly approaches. This patented technology allows water treatment devoid of any biocides, toxic gases or high-energy radiation. Catalytic water treatment enables physical biofilm removal entirely without any surface damage. As a result, the efficiency of the facility is increased and the maintenance effort is reduced.

MOL’s solution is a high advanced technology for the purification of water that combines energy- efficiency with eco-friendly approaches. It is cost-cutting for cleaning, maintenance and use of

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H2020-IND-CE, SPIRE-01-2016 energy. MOL uses efficient water treatment technologies using less chemicals and less energy than competitors. Furthermore it doesn’t involve any interruption in production.

According to MOL, there is no technique that competes with the catalyst, but older techniques are competitors due to the fact that decision makers in industries can’t get out of their comfort zones and try a new technique. They stick to the old ones. There are many companies offering other types of techniques solving the same problem.

9.3 Competitive treatment technologies

MOL states that any type of water treatment is a possible competitor. BFI says that using sand filters is a competitive technique. BLUE-tec says that in general, competition is also the more classical technologies like evaporation, which is a field with a long list of suppliers.

9.4 SWOT

This SWOT is done with the SMEs perspective, with BFI, MOL and BLUE-tec in mind. Strengths and weaknesses are within the companies; opportunities and threats come from outside the companies.

We present the SMEs individual strengths and weaknesses, which are previously described in INSPIREWATER Deliverable D6.1, where these were first stated. We have chosen to present the strengths and weaknesses in a way that is applicable to the IMCG Innovation Arrow. Therefore, they are categorised into the six processes that innovative companies, that want to make an impact, need to work parallel with: Communication, Market, Product/Service, Technologies, Resources, Organisation/Governance. This information is to be found in Appendix VI.

In this chapter we present strengths and weaknesses shared by the SMEs. The opportunities and threats will be presented for the SMEs as a group and part of the INSPIREWATER project.

9.4.1 Strengths

• Offer innovative and sustainable wastewater treatment options • Demonstrating best practice • Can solve water scarcity challenges • Offer cost effective wastewater treatments • Insight in old and new plants and their different requirements • Are already testing a technique of tomorrow • Potential to offer customized process technology • Strong focus on reuse and resource recovery • International cooperation established • Deep expertise on how water and energy are linked • Enable the image improvement of the process industry

Offering innovative wastewater treatment options

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As stated in this report, there are significant market opportunities for knowledge and technology with regard to innovative water and wastewater treatment systems.

Demonstrating best practice There will be a growing shift towards smart wastewater management solutions and that it’s important for key industry stakeholders to collaborate and leverage best industry practices. Through INSPIREWATER our SMEs get the chance to show best practice.

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Can solve water scarcity challenges The SMEs of this project are all addressing the water scarcity challenges and have the potential to succeed in this area. Future wastewater treatment plants will be expected to deliver recovered resources and high-quality water for reuse in different sectors, while being cost-effective and self- sufficient in terms of energy.

Offering cost effective wastewater treatments BFI, MOL and BLUE-tec are technology companies that can solve the problems of industrial water users with cost effective, innovative solutions that improve efficiency. Therefore they will find plenty of business opportunities.

Through INSPIREWATER our SMEs will receive first-hand information on how their potential customers act when investing in new technologies. In collaboration with them, the SMEs can see to that the process industry gets as much cost saving in wastewater analysis and maintenance as possible.

Insight in old and new plants and their different requirements BFI, MOL and BLUE-tec all know how to implement their technologies both in old, aging sites and new ones.

Already testing tomorrow’s technique For the SMEs to be part of the INSPIREWATER project and get the opportunity to test their techniques at the facilities of global actors within the process industry is a huge competitive advantage, due to the fact that proof is collected to show how well the solutions work. Additionally, the tests are large scale and long term.

The ability to offer customized process technology Through the INSPIREWATER project the SMEs get to know each other and their techniques. There is a knowledge transfer between the companies and an understanding that there might be times when a collaboration among the SMEs could be the best offered solution to the process industry. As stated earlier in this report, the process industry’s different needs call for a combination of methodical/technical knowledge and customized process technology. Conventional treatment technologies alone, such precipitation, filtration and ion exchange, are unable to meet new and emerging discharge limits.

The strong focus on reuse and resource recovery In the past, wastewater treatment innovations focused mainly on advanced treatment technologies. The innovative solutions that BFI, MOL and BLUE-tec provide are combining both technological and management aspects. There is a clear shift from wastewater treatment to water reuse and resource recovery.

International cooperation established Our SMEs already know key personnel at global giants like Clariant, ArcelorMittal and Sandvik. Wastewater management is of international concern, as pollution problems have no borders. This is the importance of international collaboration.

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Deep expertise on how water and energy are linked Water sustainability is a critical issue for the future, which needs an integrated approach to manage it, as we know water and energy are unavoidably linked. The three SMEs all state that using their techniques save energy.

Enabling the image improvement of the process industry Companies invest in wastewater treatment and reuse not just to comply with effluent standards but because product recycling and raw material recovery benefit a company’s image as well as the bottom line. The SMEs of INSPIREWATER are all being part of augmenting the process industry’s image.

9.4.2 Weaknesses

• Techniques/innovations not yet tested enough or validated • Poor competitive analysis for some • No clearly identified pathway for market entrance • No defined market • Funding is not ready

Techniques/innovations not tested enough or validated Not all SMEs in the INSPIREWATER project have yet tested their techniques long enough securing a natural entrance on the market.

Poor competitor analysis for some Not all SMEs in the project have done a proper competitor analysis.

No clearly identified pathway for market entrance There is a large difference in the way the SMEs work in order to reach the market. Emphasis should be on working in parallel with the different processes that the Innovation Arrow suggests. One must focus on marketing and selling activities even at a stage when the technique is not yet ready to be sold. And as the D6.1 implied, a small technique company might lack some competences that are essential for reaching the market and to stay there.

No defined market The SMEs of INSPIREWATER don’t seem to have defined the geographical market they wish to enter. There is a lack of knowledge of what it takes (resources, personnel, net of distributors etc.) to enter an international market.

Funding is not ready In order to get the innovation to the market, there is a need to look into financing opportunities. All the SMEs of the project have not yet managed to clarify how they will solve this as the involvement of stakeholders varies a lot.

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9.4.3 Opportunities

• Keeping up with when new plants are to be built or old ones to be renovated • Wastewater treatments solving water scarcity challenges • Growing awareness of environmental degradation • Stricter laws and regulations • Wastewater as an undervalued resource • The strive towards a circular economy • Industrial symbiosis • The municipality sector • The developing countries

Keeping up with when new plants are to be built or old ones to be renovated By following potential customers’ plans for building new plants or for renovating existing plants, it can become easier to find an entrance to deliver a part to the overall wastewater treatment system.

Wastewater treatments solving water scarcity challenges There are significant market opportunities for new business models and governance structures which can prevent defragmentation and can reorganise/redesign water, rainwater-harvesting and groundwater processing on site. The techniques represented in the project already show proof or soon will show proof that they can do this.

Growing awareness of environmental degradation Growing awareness of environmental issues, public pressure, implementation of increasingly stringent standards, and industrial interest in waste recycling. The declining supply and higher cost of raw water is also forcing industry to implement recycling technologies.

Stricter laws and regulations due to water scarcity The 2030 Agenda for Sustainable development - which SDG 6 of the 2030 Agenda has addressed by calling for the improvement of water resource management in a broad, inclusive and integrated way. As such, it places a particular emphasis on: drinking water, sanitation and hygiene; water quality and wastewater; water use efficiency and scarcity; integrated water management; protection of ecosystems; international cooperation and capacity.

The increasing requirements for the minimization of global water footprint and optimum treated water quality yields has pitched the number of membrane bioreactor installations especially in North America and Europe regions. This is anticipated to drive the demand for treatment technologies and ultimately propel the market growth by the end of 2025.

As stated before rising necessity towards access to proper sanitization in developing countries, such as and India are expected to boost the development of municipal water and wastewater market over the years ahead. This development is considered to be the major socio-economic factor to augment the requirement of performance efficient treatment equipment by the end of 2025.

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Wastewater as an undervalued resource Wastewater is still an undervalued resource. If this perception is changed to correctly reflect its value – wastewater is a potentially affordable and sustainable source of water, energy, nutrients, organic matter and other useful by-products.

The strive towards a circular economy Improved wastewater management, including the recovery and safe reuse of water and other key constituents, provides a great deal of opportunities. This is especially true in the context of a circular economy, whereby economic development is balanced with the protection of resources and environmental sustainability, and where a cleaner and more sustainable economy has a positive effect on water quality. This can turn into good business for the SMEs of INSPIREWATER.

Industrial symbiosis One notable business opportunity for industrial wastewater use and recycling is the cooperation between plants in industrial symbiosis. This is something for the SMEs of INSPIREWATER to consider.

The municipality sector As stated in the report, the water technology needs of the industry sector do not only differ fundamentally from those of the municipal sector, they also vary strongly between industries and locations so that standardized solutions are not feasible. The SMEs of INSPIREWATER can address these issues by a combination of know-how and customized process technology. This can create a new niche with profitable business models, which facilitates the sustainability of the applied solutions.

The developing countries The fact that so little wastewater management is currently occurring, particularly in developing countries, means that there are vast opportunities for water reuse and for the recovery of useful by- products, provided the appropriate incentives and business models are in place to help cover the substantial costs.

9.4.4 Threats

• Process industry reluctant to invest • Lack of financing • Process industry willing to pay fines • The refrain from recovering valuable substances • A myriad of existing and known techniques

Process industry reluctant to invest High initial investment cost and lack of awareness of the value in investing in wastewater infrastructure are likely to restrain growth.

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Lack of financing Lack of financing is a major barrier for the application of existing technologies in developing countries, but also for the promotion of research and the transitioning of new technologies for large- scale applications in developed countries.

Process industry willing to pay fines Even though there are stricter regulations regarding wastewater treatment there are a number of industries that find it more economical to pay fines than to change their current treatment processes.

The refrain from recovering valuable substances Presently, many companies refrain from recovering valuable substances because of the high capital expenditure required for the technical realization of these processes. Moreover, in the case of older plants, significant remodelling would be required, something that is often difficult to implement for lack of space and due to the temporary production downtimes involved and the resulting costs. Additionally there is often a limited knowledge about the market for products recovered from wastewater, which becomes a challenge in itself.

A myriad of existing and known techniques The SMEs of INSPIREWATER are to enter industries that have longterm relations with other suppliers of wastewater technologies.

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10. FURTHER READING

Here you will find further information about trends

Global Water Intel GWI66 GWI has reports available for purchase: Industrial Water Technology Markets 2015; Meeting industrial needs in process water treatment and wastewater reuse. GWI also provides a newsletter.

Water’s digital future67 The water and wastewater industry is in transition to a digital revolution. A report by Global Water Intelligence (GWI) provides a detailed guide to the opportunities in this smart market.

WaterWorld International - WWi68 WWi has a newsletter addressing the ever-changing demands of the water/wastewater industry up- to-date information on market trends, major projects, and problem-solving technology. Bi-Monthly editorial topics include: drinking water treatment, wastewater treatment, desalination, filtration, disinfection, membrane systems, bio-solids and sludge treatment, water reuse, pipe maintenance and repairs, trenchless technology, meter reading, valves, pumps, storm water management, odour control, computers and automation technology, corrosion control and so much more. Free of charge.

Global Industrial Wastewater Treatment Equipment Market 2015-201969. The market can be segmented into six based on end-users: oil, gas and chemicals, food and beverage, power generation, mining, pharmaceuticals. According to the website, some parts of this report is free of charge.

2017 United Nations World Water Development Report; “Wastewater: The Untapped Resource”70 (UNESCO) This report demonstrates how improved wastewater management generates social, environmental and economic benefits essential for sustainable development and is essential to achieving the 2030 Agenda for Sustainable Development. In particular, the Report seeks to inform decision-makers, governments, civil society and private sector, about the importance of managing wastewater as an undervalued and sustainable source of water, energy, nutrients and other recoverable by-products, rather than something to be disposed of or a nuisance to be ignored. The report maps out where there is water scarcity.

66 https://www.globalwaterintel.com 67 https://www.gwf-wasser.de/en/up-to-date/trade-industry/19-10-2016-water-is-going-digital/ 68 https://www.waterworld.com 69 https://www.technavio.com/report/global-industrial-wastewater-treatment-equipment-market-2015-2019 70 https://unesdoc.unesco.org/images/0024/002471/247153e.pdf

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The Smart Water Networks Forum (SWAN)71 SWAN claims to be the leading global hub for the smart water sector, accelerating the awareness and adoption of data-driven technologies in water and wastewater networks worldwide. A non-profit organisation, SWAN brings together key players in the water sector to collaborate and share knowledge while offering access to cutting-edge research, global networking opportunities, and the ability to proactively influence the future of the water industry.

International Water Resources Association (IWRA)72 IWRA is a non-profit, non-governmental, educational organisation. It provides a global, knowledge- based forum for bridging disciplines and geographies by connecting professionals, students, individuals, corporations and institutions who are concerned with the sustainable use of the world’s water resources.

Reports of interest

Water World: Market outlook: Calculating the value of industrial wastewater http://www.waterworld.com/articles/iww/print/volume-15/issue-2/columns/market-outlook- calculating-the-value-of-industrial-wastewater.html

2017 UN World Water Development Report, Wastewater: The Untapped Resource http://www.unesco.org/new/en/natural-sciences/environment/water/wwap/wwdr/2017- wastewater-the-untapped-resource/ This report concludes, highlighting the vital importance of improving the management of wastewater for our common future.

Global water intelligence Download free sample chapter; www.globalwaterintel.com/industrial-water-tech

Organisations

Global Water Intelligence – GWI73 Global Water Intelligence tracks major water projects around the world from conception to contract award and discusses the emerging trends in the industry to help you formulate strategy in a rapidly changing world. There is a newsletter you can sign-up for, for free. You can also purchase Global Water Report and other market reports.

Desadata.com74 DesalData.com is a business development tool and consultancy package for desalination professionals. The publishers of Global Water Intelligence in association with IDA produce the interactive database for companies in the desalination sector. DesalData.com is an online database

71 https://www.swan-forum.com 72 https://www.iwra.org/about-us/ 73 https://www.globalwaterintel.com - named by Dow during interview in November 2017 74 https://www.desaldata.com - named by Dow in an interview in November 2017

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H2020-IND-CE, SPIRE-01-2016 containing information on over 17,000 projects and plants and 3,000 company profiles. The database provides a network of related links between companies, projects, analysis and the latest news for desalination professionals. Information for a fee.

International Desalination Association - IDA75 The International Desalination Association (IDA) is the world’s leading resource for information and professional development for the global desalination industry – and the only global association focused exclusively on desalination and water reuse technologies. IDA lists events; http://idadesal.org/events/

European Desalination Society - EDS76 EDS is a Europe-wide organisation for individual and corporate members including universities, companies, research institutes, government agencies and all concerned with and interested in desalination and membrane technologies for water. Presents coming wastewater events that are up next: http://www.desline.com/events.php

Industrial Process Water and Wastewater Treatment Equipment Markets77 Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. They produce the Water & Wastewater Treatment Equipment Market Analysis By Product (Membrane Separation, Disinfection, Sludge), By Technology (Primary Treatment, Secondary Treatment, Tertiary Treatment), By Application, And Segment Forecasts, 2014 – 2025. And you can order it on the website.

Eureau78 This is mainly about drinking water and wastewater service operators, but the calendar presented on the website could be of interest.

Global Water Research Coalition79 The major challenges confronting the water industry across the world such as climate change, energy efficiency, sustainability and the protection of drinking water quality and therefore public health, are global in nature and transcend both national and continental boundaries. It is only through global collaboration that the water industry will be able to address these challenges.

World Steel Association80 The World Steel Association (Worldsteel) is a non-profit organisation with headquarters in Brussels, Belgium and a second office in Beijing, China. Worldsteel represents over 160 steel producers

75 http://idadesal.org - named by Dow in interview November 2017 76 http://www.edsoc.com - named by Dow in interview November 2017 77 http://www.grandviewresearch.com/industry-analysis/water-and-wastewater-treatment-equipment-market - named by Dow in interview November 2017 78 http://www.eureau.org 79 http://www.globalwaterresearchcoalition.net 80 http://www.worldsteel.org

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(including 9 of the world's 10 largest steel companies), national and regional steel industry associations, and steel research institutes. Worldsteel members cover around 85% of world steel production.

Jernkontoret81 (Sweden) Jernkontoret is the Swedish steel producers' association.

Dutch Chemical Industry (VNCI)82 (Netherlands) BLUE-tec is active in this industrial organisation in the Netherlands. It’s very international and it opens doors to global companies such as Shell and Dow. Here is also a site that describes the chemical industry; https://investinholland.com/industries/chemicals/ .

Steel Institute VDEh83 (Germany) The Steel Institute VDEh currently has about 6,600 members in Germany and abroad. Among the members you will find steel producers, plant manufacturers and other suppliers of the steel industry.

The German Steel Federation (Germany) On the website a list of members is presented. ArcelorMittal and Outokumpu are two companies you will find on the list.84

WE&RF – Water Environment & Reuse Foundation85 (the US) The WE&RF is a non-profit organisation officially formed in July 2016 as the result of the merger of Water Environment Research Foundation and the WateReuse Research Foundation.

Journals

We have asked several partners in the project about what websites, magazines, conferences and trade associations that are important for their work within the field of their profession and especially wastewater treatment. The results are presented in the lists below.

According to MOL there are enough water fairs and meetings around the world that could fill your calendar with 2 fairs a day every day of the week.

Table 6: Journals named by partners Journal Country Website Comment

Stahl & Eisen Germany http://www.stahleisen.de Only in German. Has a calendar over coming steel-related events in

81 http://www.jernkontoret.se/en/ 82 https://www.vnci.nl/english 83 http://en.stahl-online.de/index.php/about-us/vdeh/ - is the shareholder of BFI 84 http://en.stahl-online.de/wp-content/uploads/2017/02/20170214_Mitglieder_WV.pdf 85 http://www.werf.org

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the world Galvanotechnik Germany https://www.leuze- Only in German. verlag.de/fachzeitschrifte n/galvanotechnik Water https://www.tandfonline. The official journal of the International com/toc/rwin20/current International Water Resources Association (IWRA), and serve as an international gateway to the people, ideas and networks that are critical to the sustainable management of water resources around the world. British Water United http://www.britishwater. Seems more to be an organisation, Kingdom co.uk but it provides a lot of news on the website. Water https://www.watertechon Produces a lot of valuable on Technology line.com articles online.

Flow Control United http://www.flowcontrol- Claims to be the leading source for Magazine States digital.com/#&pageSet=0 fluid handling systems design, &contentItem=0 maintenance and operation. It focuses exclusively on technologies for effectively moving, measuring and containing liquids, gases and slurries.

Dow says that both EDS and IDA arrange conferences of interest. See their websites for list of events. EDS – European Desalination Society - http://www.desline.com/events.php IDA - International Desalination Association- http://idadesal.org/events/

Table 7: Fairs and conferences named by partners Fairs/ Country Website Comment Conferences Wire&Tube Germany https://www.wire- 16-20 April, 2018, Dusseldorf, tradefair.com claims to be world’s most important trade fair for the wire and cable industry Metec Germany https://www.metec- 25-29 June, 2019, Dusseldorf, tradefair.com international trade fair for metallurgy, steel casting and steel production ACHEMA Germany http://www.achema.de 11-15 June 2018, Frankfurt, World forum for the process

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industries Expert Germany http://www.stahl-online.de Forum dealing with technical- committees scientific and technical-economic Stahl VDEh aspects of the steel industry Aquatech The https://www.aquatechtrade. 5-8 November 2019, Amsterdam, Amsterdam Netherlands com/amsterdam/ during Amsterdam International Water Week (AIWW), Aquatech underlines its position as the world’s leading platform for process, drinking and wastewater. Aquatech China China https://www.aquatechtrade. 31 May – 2 June, 2018, Shanghai, com/china/ Claims to be the largest platform for process, drinking and wastewater in Asia. International Germany http://dechema.de/Program Was held in September 2017. MerWaterDays m_+Programme-p- (Dechema) 20073640.html IFAT Germany http://www.ifat.de May 14-18 2018. Claims to be world’s leading fair for water, sewage, waste and raw materials management. Arranges fairs globally. Focus on innovation. Wasser Berlin Germany http://www.wasser- March 26-28, 2019. Everything International berlin.de about water – like water treatment. SWAN Spain https://www.swan- The leading, global smart water Conference forum.com/swan-2018/ event of the year will be held in Barcelona, 21-22 May 2018 Everything India http://www.eawater.com/ex One of the most distinctive and About po/ comprehensive annual event of Water Expo India in Water and Wastewater Management sector, showcasing latest technologies of worldwide. August 23-25, 2018

10.1 LinkedIn Groups

There are a number of LinkedIn-groups that might be of interest for project members. Some of these groups are presented below.

Industrial wastewater - Recycle & Reuse

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Around 5,000 members. Focus is on industry in a world of water shortage. Reliable supply and management of water is essential in most industrial processes. To offset water and wastewater expenditure through water recycling and by the reuse of valuable material from aqueous waste.

Industrial Wastewater Treatment Around 17,000 members. This group is for all the professionals, who are involved in designing Industrial Wastewater treatment plants throughout the world, to exchange knowledge and ideas about different applications.

Industrial Water Treatment Around 13,000 members. From boilers, cooling towers, and closed loops to wastewater, processes waters, recycle and reuse, industrial water treatment offers many unique challenges.

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11. CONCLUSION AND RECOMMENDATIONS

The focus for this market analysis is to make the SMEs of INSPIREWATER: MOL, BLUE-tec and BFI aware of what it takes to reach the market. As stated in the beginning of this report, a market analysis often aims to answer questions like:

• Who are the potential customers? • What does the buying process look like? • How large is the potential market? • How much is the market willing to pay? • Who is the competitor? • What have the competitors’ challenges and successes been?

The main focus for the INSPIREWATER project is the steel and chemical industry. In this market analysis we have presented potential customers as being the process industry as a whole. However, when we have found information relevant for the specific industries, we have added that. It makes most sense for our SMEs to aim to become a supplier of the global process industries that are part of this project.

The process industries in INSPIREWATER have described their buying processes and the SMEs have described their selling processes. We have also discussed alternative ways of reaching the customer – by going through a distributor – and the pros and cons of this approach. We recommend that BFI, MOL and BLUE-tec learn about the buying process that the process industries in INSPIREWATER use and develop an approach.

The potential market for wastewater treatment technologies is large and will get even larger, mainly due to stricter regulations as a consequence of water scarcity. However, our SMEs need to work with the six parallel processes that the IMCG Innovation Arrow suggests in order to reach market impact. The processes regard: Communication, Market, Product/Service, Technologies, Resources, Organisation/Governance. There is a tendency among the SMEs to focus too much on technology. By being part of INSPIREWATER they have the opportunity to come really close to the potential market. By testing the products at the facilities of ArcelorMittal, Sandvik and Clariant, if being successful, there will be plenty of market opportunities.

It is not clear what the market is willing to pay for new technology, but more and more process industries realise that they have to invest in wastewater treatment that offers energy and cost savings in the long run. In this project we have representatives from different partners of the wastewater treatment eco-system and by networking with them, the SMEs will get more and more input on what the market is willing to pay.

There are many competing companies as well as techniques. Most of our partners know their competitors by name. However, since the SMEs haven’t clarified the exact geographical market they wish to enter, it’s hard to make a relevant list of competitors. We recommend making a thorough competitor analysis for each market and identify the strengths and weaknesses of the potential competitors.

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12. APPENDICES

• Appendix I: Interview with Dow – with valuable market information • Appendix II: Interview with Clariant – with valuable information about their buying process • Appendix III: Questionnaire filled in by ArcelorMittal – with valuable information about their buying process • Appendix IV: List of steel producers in the world • Appendix V: The article, ”Water Use in Industries of the Future: Steel industry”, 2003, that relates to the water consumption in the steel industry (provided by ArcelorMittal) • Appendix VI: Strengths and weaknesses of BFI, MOL and BLUE-tec – from D6.2 • Appendix VII: Generation of wastewater by industry – gives valuable information about how much wastewater is generated in different countries

INSPIREWATER Confidential Page 61 Appendix 1 – Interview with Dow

Dow Water and Process Solutions - Lorena Barbera

Questionnaire answered November 21, November 2017

What market is envisaged - Short description of technology/ies you test in the project and how the tests are run. (I have descriptions already, but this is your chance to put your own, best described sentences here) - Describe the market for industrial waste water management – what does it look like? What trends do you see? - Indication on where you will find your customers – industries and countries - Your perception as to who has a current need for your solution and what will drive them to invest in it.

Market size and expected market share - What is the market size? - How big of a market share do you envisage getting? When? - Where do you collect data that supports these facts?

Position of the partner in the market - What position do you have on the market as of today? - For how long have you been working with this?

Status of competition in the market - Who are your main competitors – name, website, short description - What other techniques do you regard as competitors

What market is envisaged

The ultrafiltration process in combination with reverse osmosis and catalysts pre-treatment and concentrate treatment will be developed and tested in this project for the specific case of reuse of industrial wastewater. The ultrafiltration filtrate requires further treatment for many usage scenarios such as usage in agriculture, potable water use or industrial water reuse. Therefore, the ultrafiltration process is considered mainly as pre-treatment technology. UF technology is attractive for water reuse from industrial wastewater and other wastewater such as municipal wastewater but also as pre-treatment of water sources such as industrial wastewater – e.g. from the food and beverage industry, textile and paper industry, etc. The reverse osmosis product which will be investigated in this project is especially designed for brackish feed water with high fouling potential. Hence the mainly targeted market is the desalination of pre-treated wastewater. As mentioned before, the focus of this project is the reuse from municipal wastewater treatment plants, but finally the market to be envisaged can be extended for other applications with water of high fouling potential.

DOW CONFIDENTIAL - Do not share without permission Both processes –ultrafiltration and fouling resistance reverse osmosis membranes – can be offered to the market together as process combination, but they can also be offered independently of each other. The market for both technologies is very similar. The envisaged market includes plant operators and plant designers, which are depending on the location of public or private entities. Water scarcity is a strong driver towards water reuse. Hence regions with high water stress mainly targeted with the products of this process, which are in Southern Europe, especially Spain, Cyprus, Greece and Italy, the countries of the Middle East and Australia. Furthermore, regions with high industrial activity with a high water demand and high volumes of wastewater production are targeted.

Market size and expected market share

The global installed desalination capacity for 2015 was estimated to be 74.7 million m3/d [DesalData, https://www.desaldata.com/], which represents the maximal capacity for the market that can be targeted with the membranes investigated in this project. As mentioned before, the main focus will be applications for wastewater and brackish water, for which the advantages of the products are significant which are together 26.6% or 19.9 million m3/d. Reverse Osmosis (RO) membrane technology has developed as a promising technology to address this problem, holding roughly 44% market share and growing among all the desalinating technologies [R. Valavala, J. Sohn, J. Han, N. Her, Y. Yoon, Pretreatment in Reverse Osmosis Seawater Desalination: A Short Review, Environmental Engineering Research 16.4 (2011) 205-212].

For the reverse osmosis market, a growth of 7.3% CAGR for the period of 2014 to 2019 was estimated [source: http://www.prnewswire.com/news-releases/water-recycle-market-and-water-reuse- growth-at-22-cagr-volume-and-19-cagr-revenue-forecast-to-2019-521062841.html]. Based on the percentage of the installed capacity held by reverse osmosis, the total reverse osmosis market for the applications brackish water and wastewater is estimated to be around 290 million US$. Estimating 38% market share for DOW Water and Process Solution, the total market share for the reverse osmosis market in the relevant applications is around 110 million US$. This corresponds to approximately 22,2 million US$ yearly for membrane replacements.

DOW CONFIDENTIAL - Do not share without permission Assuming that in 15% of the installations of reverse osmosis for the relevant applications, ultrafiltration is used as pre-treatment and assuming a recovery of 75%, the installed capacity of ultrafiltration is around 1.75 million m3/day, which corresponds to around 49 million US$ market size. Assuming 10% market share of DOW Water and Process Solutions in the ultrafiltration market, the market share of DOW Water and Process Solutions is around 4.9 million US$. The latter corresponds to approximately 0.97 million US$ yearly for membrane replacements.

Position of the partner in the market

DOW Water and Process solution is as supplier and manufacturer of reverse osmosis membrane the work leader regarding total installed capacity. DOW Water and Process solution is active and successful in all different applications of reverse osmosis membranes – seawater desalination, brackish water desalination, surface water treatment and wastewater treatment. Additionally, it dominated the nanofiltration market in sulphate removal plants in the offshore oil and gas industry. DOW Water and Process solution offers a wide spectrum of specific membrane solution and develops continuously new generations of membranes with improved performance and optimized properties as well as specific products for special applications. DOW Water and Process solution entered in the ultrafiltration market in 2006. DOW Water and Process Solution offers several different ultrafiltration solutions and obtained in the meantime some large references of plants equipped with DOW ultrafiltration membranes.

Status of competition in the market

Status of the competition on the market Describe the most important competitors and, if possible, their market share.

The main competitors in the membrane manufacturing market for reverse osmosis and nanofiltration are shown in the following figure and in the table below. The figure shows the market share for the different competitors and DOW Water and Process Solutions for the whole reverse osmosis/nanofiltration market including all types of applications. Since the market was traditionally mainly dominated by large seawater plants, this is now still the application, where the bigger players have the highest share. Two of the market leading companies (DOW Water and Process solutions and Hydranautics) are also focused strongly on the offshore oil and gas industry. Brackish water desalination mainly for industrial and municipal wastewater reuse is gaining overall interest, and of important interest to smaller players. Overall, the competition is diverse and changing. Pressure from new companies with new products is enhancing the drive for innovation in all membrane manufacturing companies.

Figure: Estimated membrane supplier market share since 2010, SWRO >10,000 m³/d, Source: DesalData

DOW CONFIDENTIAL - Do not share without permission

Competitor Competitive solutions Hydranautics: Hydroanautics shows strong presence in traditional seawater deslination market. It introducted low-fouling spiral wound module in 2000. Hydronautics is broadening the scope to sulphate removal by offering nanofiltration membranes. Overall obtaining position three in comparison with all competitors. Toray Toray is strong in seawater and brackish water desalination. Toray engaged in a joint venture with Abunavyan Holding in 2014. This joint venture target investment in production and supply facility in Saudi Arabia. Overall Toray obtains position two in the market. Toyobo Toyobo offers hollow-fibre reverse osmosis membranes, which differentiates it from most suppliers, which produce spiral wound reverse osmosis elements. Advantages are stated to be higher packing density and better fouling tolerance. Toyobo is based in Japan. Toyobo engaged in a joint venture for a production facility in Saudi Arabia. LG NanoH2O NanoH2O offers QuantumFlux membranes. These membranes are polymeric membranes strengthened with nano- composites. NanoH2O was taken over by LG Chem in 2014. NanoH2O is providing for a plant expansion in Palmachim, Israel.

DOW CONFIDENTIAL - Do not share without permission Woongjin Chemical Co.: Woongjin Chemical from Korea provides reverse osmosis membranes. Woongjin took over the CSM membrane brand in 2008 and was taken over by 56.2% by Toray in 2013. Woongjin is increasing its market in North America. •Lanxess: Lanxess is offering reverse osmosis membranes for brackish water market. Lanxess concentrated on the small-to- medium scale market. Lanxess is a German company and providing currently especially to China. Vontron: Vontron offers reverse osmosis and nanofiltration membranes for applications including wastewater treatment and low- salinity desalination. Vontron is a Chinese company and focusses on large industry market.

Microfiltration and ultrafiltration is growing in its role as pre-treatment for reverse osmosis membranes. This causes emerging of many different players. The main competitors are summarized in the following table:

Competitor Competitive solutions Pentair X-Flow: Pentair X-Flow offers ultrafiltration membranes both for seawater and for brackish and wastewater treatment. The main products are the Seaflex and Seaguard membranes. Pentair X-Flow provided ultrafiltration membranes to several large plants in middle East. Pentair is one of the strongest players. Hyflux: Hyflux offers ultrafiltration membranes, mainly for the market in China. Inge Watertechnologies: Inge offers ultrafiltration membranes in in- out mode with a specific hollow fiber geometry called Multibore technology. Inge primarily targeted brackish water, recently widening market to seawater and wastewater market. Inge is one of the strongest players. GE Water & Process Technologies: GE is mainly focused on ultrafiltration and microfiltration for brackish and wastewater. Its hollow fiber products are

DOW CONFIDENTIAL - Do not share without permission called ZeeWeed. Lately widening market for pretreatment of feedwater in seawater desalination with reverse osmosis membranes. Evoqua Water Technologies: Evoqua offers ultrafiltration membranes (called “Memcor”) mainly for drinking water market in USA. Evoqua is widening market to seawater desalination plants. Hydranautics: Hydranautics offers out-in-ultrafiltration membranes, also in combination with its reverse osmosis membranes. Hydranautics also offers rebranded membranes (called HydraCap Max) which are originally from the company Memstar. Pall/Asahi: Pall produces microfiltration membranes which are produced with the induced phase separation (TIPS) process. For many year having been strongest membrane on the market. Pall has few references on large desalination market. Pall came into the microfiltration market by taking over the company Asahi Microza. Koch Membrane Systems: Koch focused on pre-treatment for industrial desalination plants, mainly for power, chemical and refinery sectors. Toray: Toray offers ultrafiltration in combination with its reverse osmosis membranes. Polymem: Polymem focusses on pretreatment for seawater desalination, mainly for offshore oil and gas platforms having large modules with high membrane area and low footprint (product called “GigaMem” with 540 m2 membrane area). Memstar: Memstar offers its ultrafiltration for domestic market and as pretreatment for brackish water reverse osmosis.

Tips for further reading:

Website:

DOW CONFIDENTIAL - Do not share without permission www.desaldata.com Global Water Intelligence European Industrial Process Water and Wastewater Treatment Equipment Markets

Conferences: EDS – European Desalination Society IDA - International Desalination Association

Links to the videos: Dow Water and Process Solutions website: www.dowwaterandprocess.com

Information about Reverse Osmosis: FORTILIFE CR100 https://www.dow.com/en-us/water-and-process-solutions/products/reverse-osmosis/filmtec- fortilife

Video about Ultrafiltration: IntegraFlux and XP fiber: https://www.youtube.com/embed/hJC-Hav0ViA?rel=0&autoplay=1&enablejsapi=1&version=3

Video about the Global Water Technology Center (Tarragona): https://www.youtube.com/watch?v=ejUFjl_-_Cg

DOW CONFIDENTIAL - Do not share without permission Appendix II – Interview with Clariant

180309 Interview with Friedhelm Zorn, Clariant Head of Compentence Center Environmental Technologies

IMCG – leader of WP6; Commercialisation, economic assessment, exploitation The WP supports achieving the following main specific objectives of INSPIREWATER: Secure that more than 50% of the INSPIREWATER solutions which have been positively validated for their business and technical potential during the demonstration activities will result in a credible business plan for commercialisation.

Buying habits - wastewater management technique and equipment WP6 and IMCG work on the market analysis for INSPIREWATER. This deliverable (D6.1) is to give a picture of the market for the SMEs in the project; BLUE-tec, MOL and BFI. The report will include information about potential customers. Being part of the project and testing their techniques, Clariant, ArcelorMittal and Sandvik constitute examples of potential customers. Therefore, information that you can provide is very valuable.

1. How much wastewater do you handle? - At your site? - Globally (and at how many sites is that)?

At the demonstration site in Tarragona Clariant handles 350-400 kbm (tons) per day (2017: 120 000 m³/a). Worldwide – 12.6 million m³/a (2017, 130 production sites)

2. What technique(s) are you using today in your waste water treatment process? - Are the they used on all your sites? - Who are you buying it from? - What are the benefits with this/these technique(s)? - What are you lacking?

Today Clariant uses conventional arrangements including chemical / physical and biological treatments. This is basically a standard process used globally. Standard equipment is often bought locally. Special equipment if required are usually bought on global market.

On top of that there are specific processes used in addition before or after the standard process. The special equipment can be bought elsewhere in Europe or in the US for instance, since it’s sometimes too specific to be bought locally.

A benefit with the standard treatment is that it helps to reach the required targets for wastewater management in a reliable and economic way.

Lacking; if there are specific needs and requirements that the standard equipment don’t deliver, one adds specific solutions that helps lower maintenance costs etc. When it comes to maintenance and service, working with local services as offered by local suppliers or branches of international Companies is best.

3. According to you, what are the current trends in wastewater treatment? • There are global requirements concerning stricter standards. • Stricter standards include more and more limitations for single compounds along the known summary parameters. • There is a higher need for recycling because of the water scarcity.

4. What wastewater treatment technique do you prefer? - Why? What are the benefits?

The wastewater treatments must be proven to be working well by considering state of the art technology. They should be economically driven and have an effective treatment of wastewater. There should be a certain degree of conventional systems and since there are frame conditions that ask for additional steps, the new technologies that are being tested and developed must be • Economic • Cover ecologic aspects as , reduced energy consumption and CO2 footprint • reliable and • user-friendly (not complex systems)

To change a system completely won’t happen. Standard processes are used with add-ons. But if building a new site, standard processes with state-of-the-art technology will be used, not standards from 20 years ago. It will be state-of-the-art equipment and control systems.

5. What does your buying process look like when it comes to investing in wastewater treatment techniques and equipment? - Is this process handled on a global scale or at the individual site? - Who are involved? Who are the decision-makers? What function do they have? - Timeline?

When Clariant needs add-on processes, they do tests to see it will make the quality improvement. They conduct laboratory tests, piloting etc. If, yes, a technical specification is written and that is the base for the purchasing phase. Clariant contacts specific suppliers of a certain, chosen technology and ask them to see if they qualify for the specification. They then conduct a second pilot test for ensuring dimension and technology.

At the technical site, one collects the results of the testing. This is converted into a technical specification and handed over to the purchasing department starting the commercial part. The purchasing department search the market for suitable suppliers.

To test new techniques is a way of requiring a toolbox of techniques and collecting interesting data to evaluate.

The timeline depends on the complexity, but it could take six months to do the following principle steps: 1. Lab phase; lab scale. And if it works; 2. Piloting in the field. And if it works; 3. Technical specification ready for project realisation

6. What are the major reasons for you to invest in new wastewater treatment techniques and equipment? - How does harder regulation affect you? Your site? Globally?

Clariant is affected by global regulations and local framework conditions. Climate change has an impact on everyone. Requirements, standards are getting stricter. Technical solutions must contribute to the competitiveness of Clariant products.

In Tarragona, demonstration site for INSPIREWATER MOL Katalyst and membranes are being tested. Technologies might not only be used at Tarragona, but might also be suitable for other sites.

7. What are the main objectives for you to test wastewater management techniques in the INSPIREWATER project?

Through the project Clariant gets an extension of toolbox for technologies which can be used to design specific processes differently depending on local conditions and regulations.

Clariant is very proud of being part of INSPIREWATER, where all partners have a sustainability approach. The project helps partners to realize the involved companies’ environmental objectives.

8. If a company like MOL, BLUE-tec and BFI were to become a supplier of yours – what are your recommendations? What steps do they need to take in order to get there? - Do you prefer buying directly from a company or do you go through an intermediary? - What information is needed? What requirements do you have for a supplier?

MOL- catalyst has already proved to work well. A long reference list, INSPIREWATER works with a new point of application (final effluent Biology) which is a product that can be bought and used immediately.

BLUE-tec uses forward osmosis and membrane distillation as a technique and are fairly new, an application that needs to be tested enough.

DOW – membranes; need an up-scale test (it’s common procedure), but they can supply as of today, and it would work for Clariant.

BFI is being tested elsewhere, Clariant has not yet taken part in the results.

Standard equipment can be bought from a large or small company. Specific add-ons are often bought directly from small and middle-sized companies, like MOL.

9. How large of an investment in wastewater treatment technique and equipment do you foresee having within your company in Europe during the next five years? (or other timeline and geographical area, if you have that)

No general answer possible. It depends on different conditions. In the last 5 years the investments in the waste water area worldwide were in the range from 1 to 4 mio CHF per year. But this doesn’t include regular improvements on day to day basis. In general we are always trying to get better and ahead of requirements.

10. What LinkedIn groups, exhibitions, reports, websites, organisations etc do you find important when it comes to wastewater management for your industry?

IFAT, Munich – largest fair globally on environmental technologies Aquatec, Amsterdam

Associations: IWA International Water Association Dechema

Appendix III – Questionnaire filled in by ArcelorMittal

Filled in by Beatriz Padilla Vivas | R&D Engineer ArcelorMittal, Global R&D Asturias

Buying habits - wastewater management technique and equipment WP6 and IMCG work on the market analysis for INSPIREWATER. This deliverable (D6.1) is to give a picture of the market for the SMEs in the project; BLUE-tec, MOL and BFI. The report will include information about potential customers. Being part of the project and testing their techniques, Clariant, ArcelorMittal and Sandvik constitute examples of potential customers. Therefore information that you can provide is very valuable.

1. How much wastewater do you handle? - At your site? 12 Mm3/year - Globally (and at how many sites is that)? I don’t know. Please take a look at “Steel water use” document Asturias site: water intake = 13 m3/ton steel; water discharge = 3 m3/ton steel

2. What technique(s) are you using today in your waste water management process? - Are the they used on all your sites? Yes - Who are you buying it from? It depends on the geographical location - What are the benefits with this/these technique(s)? - What are you lacking? Wastewater management process is based on wastewater treatment plants. In general, physico- chemical treatment plants for pollutants removal: scale pits and/or conventional coagulation- flocculation and decantation processes in combination with reagents addition and/or sand filtration and/or cooling towers.

3. According to you, what are the current trends in wastewater management? Industry 4.0

4. What wastewater management technique do you prefer? - Why? What are the benefits?

5. What does your buying process look like when it comes to investing in wastewater management techniques and equipment? - Is this process handled on a global scale or at the individual site? Global scale by continent division. In Europe, there is a central purchasing department located in Luxembourg. - Who are involved? Who are the decision-makers? What function do they have? There is a specialized group of people devoted to purchasing topics. They are the decision- makers. Local staff from the sites inform them technically and give support to them in the decisions. - Timeline? It depends on urgencies.

6. What are the major reasons for you to invest in new wastewater management techniques and equipment? - How does harder regulation affect you? Your site? Globally? Major reason for investment in a wastewater treatment plant is legal restriction. These regulations affect globally to all ArcelorMittal sites. Each country and each site has specific regulations.

7. What are the main objectives for you to test wastewater management techniques in the INSPIREWATER project? - Water consumption savings - Operational costs savings - Investment costs savings for a new technology

8. If a company like MOL, BLUE-tec and BFI were to become a supplier of yours – what are your recommendations? What steps to they need to take in order to get there? - Do you prefer buying directly from a company or do you go through an intermediary? It is preferable to buy directly from a company (cost savings) - What information is needed? What requirements do you have on a supplier? Many administrative/bureaucracy documents are required from the company. In relation to requirements: if they have previous successful stories in big/medium scale companies, this is a key factor. As well, a very important factor is the deep analysis done by the suppliers in relation to the technical feasibility of the technique and the economical pro/cons in terms of operational and investment costs.

9. How large of an investment in wastewater management technique and equipment do you foresee having within your company in Europe during the next five years? (or other timeline and geographical area, if you have that) There is not an estimated quantity for this. It will depend on the legal requirements in terms of water discharge.

10. What LinkedIn groups, exhibitions, reports, websites, organisations etc do you find important when it comes to wastewater management for your industry? Mainly communication groups/exhibitions where the main topic to be treated is water with applications for the steel industry.

Top steelmakers in 2016

List of companies with tonnage above 3 million in 2016 million tonnes crude steel production Tonnage Tonnage Tonnage Tonnage Tonnage Tonnage 2015 2016 Companies HQ 2011 2012 2013 2014 2015 2016 Ranking Ranking ArcelorMittal * Luxembourg 97.25 93.58 96.10 98.09 97.14 95.45 1 1 China Group ** China 81.02 79.12 83.22 76.40 60.71 63.81 2 HBIS Group * China 44.36 42.84 45.79 47.09 47.75 46.18 2 3 Japan and Sumitomo Metal Corporation (NSSMC) * 33.39 47.86 50.13 49.30 46.37 46.16 3 4 POSCO * 39.12 39.88 38.42 41.59 41.97 41.56 4 5 Baosteel Group * China 43.34 42.70 43.91 43.35 34.94 5 China 31.92 32.31 35.08 35.33 34.21 33.25 6 6 * China 29.75 30.23 33.69 34.35 32.50 33.19 7 7 JFE Steel Corporation * Japan 29.90 30.41 31.16 31.41 29.83 30.29 8 8 * China 30.04 31.42 31.52 30.78 28.55 26.80 9 9 Group * India 23.82 22.97 25.27 26.20 26.31 24.49 10 10 Wuhan Steel Group China 37.68 36.42 39.31 33.05 25.78 11 Group China 24.02 23.01 22.79 23.34 21.69 23.02 12 11 Corporation * USA 19.89 20.13 20.16 21.41 19.62 21.95 14 12 Company * South Korea 16.29 17.12 17.30 20.58 20.48 20.09 13 13 Maanshan Steel * China 16.68 17.34 18.79 18.90 18.82 18.63 15 14 * Germany 17.94 14.46 15.86 17.23 17.34 17.24 16 15 (NLMK) * 12.11 14.92 15.47 16.11 16.05 16.64 19 16 Jianlong Group China 12.36 13.76 14.30 15.26 15.14 16.45 20 17 S.A. * Brazil 20.50 19.81 18.97 19.00 17.03 15.95 17 18 Corporation * , China 14.01 12.73 14.29 15.40 14.82 15.52 23 19 Valin Group China 15.89 14.11 14.99 15.38 14.87 15.48 22 20 JSW Steel Limited * India 7.01 8.48 11.80 12.72 12.42 14.91 30 21 Benxi Steel China 16.49 15.08 16.83 16.26 14.99 14.40 21 22 Ltd. (SAIL) * India 13.50 13.50 13.52 13.56 14.34 14.38 26 23 United States Steel Corporation * USA 21.99 21.44 20.38 19.73 14.52 14.22 24 24 IMIDRO * 12.58 13.61 14.29 14.42 14.10 14.02 27 25 Rizhao Steel China 11.20 13.22 12.68 11.40 14.00 13.86 28 26 Fangda Steel China 2.62 3.28 13.16 13.64 13.21 13.68 29 27 EVRAZ * Russia 16.77 15.95 16.11 15.54 14.35 13.53 25 28 Magnitogorsk Iron & Steel Works (MMK) * Russia 12.20 13.04 11.94 13.03 12.24 12.54 31 29 * China 10.22 10.19 10.69 10.72 11.86 12.30 32 30 * Russia 15.29 15.14 15.69 14.23 11.45 11.63 33 31 Liuzhou Steel China 11.39 10.83 11.05 35 32 Jinxi Steel *** China 9.04 9.10 8.75 9.12 9.77 11.05 39 33 Jingye Steel China 5.83 7.30 9.69 10.54 11.32 11.01 34 34 Anyang Steel China 9.38 7.74 10.32 10.89 10.74 10.48 36 35 Sanming Steel China 5.72 6.95 8.22 9.21 9.58 10.39 41 36 Holding LLC * Ukraine 14.38 14.34 14.29 11.18 9.65 10.34 40 37 Taiyuan Steel China 9.90 10.13 9.99 10.72 10.26 10.28 38 38 Zongheng Steel China 8.65 9.11 10.19 10.32 10.38 10.23 37 39 Zenith Steel China 7.01 7.57 8.51 9.01 9.08 9.24 42 40 Erdemir Group * Turkey 7.47 7.87 8.27 8.49 8.93 9.18 43 41 Nanjing Steel China 7.65 7.18 6.05 8.04 8.59 9.01 45 42 Xinyu Steel China 8.72 8.66 8.50 8.82 8.64 8.57 44 43 CITIC Pacific Special Steel * China 6.73 6.62 7.66 7.93 7.61 8.40 50 44 SSAB * Sweden 5.67 5.25 5.57 8.07 7.59 7.99 51 45 Techint Group * 9.53 8.71 9.00 9.38 8.40 7.98 46 46 Group * Austria 7.67 7.36 8.02 7.95 7.76 7.47 48 47 Top steelmakers in 2016

List of companies with tonnage above 3 million in 2016 million tonnes crude steel production Tonnage Tonnage Tonnage Tonnage Tonnage Tonnage 2015 2016 Companies HQ 2011 2012 2013 2014 2015 2016 Ranking Ranking Group * India 6.82 6.70 6.09 5.50 5.66 7.45 61 48 Shaanxi Steel China 5.20 6.65 8.00 7.91 7.47 7.30 53 49 , Ltd. * Japan 7.39 7.09 7.53 7.57 7.52 7.26 52 50 CELSA Steel Group * Spain 7.84 7.62 6.99 7.03 7.08 6.94 55 51 Guofeng Steel China 8.21 7.98 8.06 8.40 8.29 6.90 47 52 Salzgitter AG Stahl und Technologie * Germany 5.66 6.09 5.58 5.74 6.65 6.80 56 53 Ruifeng Steel China 3.36 5.03 6.29 6.26 57 54 Binxin Special Steel China 3.14 3.12 4.48 6.06 71 55 Donghai Steel China 1.37 2.31 3.88 4.36 3.30 5.90 86 56 Tianjin Steel China 5.94 5.82 57 Tsingshan Holding Group * China 5.80 58 Hangzhou Steel China 3.65 3.25 3.43 3.60 7.12 4.50 e 54 59 Yingkou Plate China 2.21 2.25 3.33 4.70 5.68 5.78 60 60 SpA * Italy 5.68 6.22 4.76 5.67 66 61 BlueScope Steel Limited * Australia 6.00 4.23 4.20 4.10 4.52 5.63 69 62 Jiuquan Steel China 10.22 10.10 11.16 10.34 7.69 5.50 49 63

RIVA Group * Luxembourg 7.59 7.76 6.21 5.47 58 64 Yuhua Steel China 4.60 4.60 5.42 68 65 Saudi Iron & Steel Co. (Hadeed, an affiliate of SABIC) * KSA 5.28 5.20 5.47 6.29 5.23 5.27 62 66

AK Steel Corporation * USA 5.95 6.17 5.05 59 67 Ji'nan Steel (Hebei, China) China 4.49 5.01 68 Puyang Steel China 4.53 4.35 3.40 3.30 3.55 4.96 81 69 Lingyuan Steel China 3.59 3.56 5.21 5.14 4.64 4.88 67 70 Tianjin Metallurgy Group China 5.69 4.88 71 Metalloinvest Management Company * Russia 5.82 5.61 4.68 4.50 4.50 4.66 70 72 Altos Hornos de México, S.A.B. de C.V. (AHMSA) * Mexico 3.81 3.88 4.16 4.42 4.46 4.65 72 73 ISD (Industrial Union of Donbass) Ukraine 8.49 7.94 6.03 4.80 4.61 65 74 Hangzhou Steel China 3.65 3.25 3.43 3.60 7.12 4.50 e 54 75 Yuanli Group China 3.11 3.49 3.82 4.29 4.39 4.39 73 76 Russia 6.53 4.65 4.27 4.32 4.19 74 77 Usinas Siderúrgicas de Minas Gerais S.A. () * Brazil 6.84 7.16 6.86 6.05 5.01 4.06 64 78 Companhia Siderúrgica Nacional (CSN) * Brazil 4.87 4.64 4.48 5.41 5.16 4.06 63 79 Rashtriya Ispat Nigam Ltd (VIZAG Steel) * India 3.19 3.11 3.11 3.28 3.64 3.82 79 80 Delong Steel China 3.57 3.75 3.63 3.31 3.31 3.69 85 81 Ezz Steel * Egypt 4.32 4.56 4.33 4.01 3.28 3.66 87 82

Nisshin Steel Co., Ltd. * (part of NSSMC from March 2017) Japan 3.76 3.81 3.70 4.07 3.82 3.65 77 83 Jiyuan Steel China 2.61 3.25 3.50 3.55 3.41 3.60 83 84 Shiheng Special Steel China 2.81 2.96 3.07 3.16 3.14 3.54 90 85 Rockcheck Steel China 2.99 3.22 3.30 3.59 3.55 3.51 82 86 Qianjin Steel China 3.54 3.43 3.46 3.09 3.65 3.49 78 87 Tianzhu Steel China 3.09 3.49 88 Ltd (JSPL) * India 2.62 2.73 2.87 2.95 3.08 3.48 92 89 Xinxing Ductile China 3.76 4.36 3.65 3.27 3.83 3.48 76 90 Donghua Steel China 2.70 3.38 3.27 3.30 88 91 Dongkuk Co., Ltd. * South Korea 3.07 3.31 3.33 3.04 3.32 3.29 84 92 Taishan Steel China 2.53 2.81 3.02 3.12 3.26 3.28 89 93 Outokumpu Oyj * Sweden 1.68 1.68 2.97 3.41 2.71 3.20 94 Emirates Steel * UAE 2.38 2.88 2.39 3.01 3.15 94 95 Ganglu Steel China 3.01 3.06 3.10 3.07 3.07 3.07 93 96 Tranvic Steel China 2.63 2.66 3.02 97 Tosyali Holding Turkey 3.00 e 98

* worldsteel member e: estimates

** New company formed from the merger of Baosteel Group and Wuhan Group - worldsteel member

*** Also known as China Oriental, partly owned by ArcelorMittal - worldsteel member Water Use in Industries of the Future: Steel Industry1

Contributed by: Rick Johnson CH2M HILL 13921 Park Center Rd., Suite 600 Herndon, VA 20171

Prepared under contract to Center for Waste Reduction Technologies for: U.S. Department of Energy Office of Energy Efficiency and Industrial Technologies Program 1000 Independence Ave., SW Washington, D.C. 20585

JULY 2003

1 A section in a chapter from the book, Industrial Water Management: A Systems Approach,2ndEdition, prepared by CH2M HILL for the Center for Waste Reduction Technologies, American Institute of Chemical Engineers, 3 Park Avenue, New York, NY 10016. 8.1 Steel Industry rolled products for the construction market. Finishing mills generally buy hot- or cold- Contributed by Rick Johnson, in CH2M HILL’s rolled flat steel products and then form or coat Herndon, Virginia, office products to meet market demands. 8.1.1 Steel Industry Overview The water use patterns in these operations vary considerably, depending on process require- Steel is an industry in evolution from large, ments. Water is used in the steel industry for integrated, multiple-product facilities to three purposes: smaller facilities focused on specific products or markets. The energy intensity of the steel • Material conditioning. Water is used for industry has been steadily decreasing since dust control in sinter feeds, slurrying or 1950 (Stubbles, 2000). Independently, the dust and slag in blast furnaces, water use intensity of the steel industry has mill scale removal in hot- rolling opera- also been decreasing, principally because water tions, solvent for acid in pickling opera- is being recycled in the production facilities tions, or rinsing in other rolling operations. (AISI, 2001). Increasing demands for water • Air pollution control. Primary operations, resources will make continued recycling of particularly in integrated mills, use water in water a business imperative in the steel indus- wet scrubbers for air pollution abatement. try as well as other basic industries. Water is also used for acid control in pick- The steel industry can be categorized into three ling operations and for wet scrubbers in types of facilities: coating operations that have caustic wash- ing operations. • Integrated mills, which use ore, coke, lime- • Heat transfer. Primary iron- and steel- stone, energy, and water to make multiple making processes require heating the raw products for a wide variety of markets materials beyond the melting point of iron, • Minimills, which use scrap steel to make a in the range of 2,600 – 3,000 degrees narrow list of products for multiple mar- Fahrenheit (°F), while hot-rolling opera- kets tions require heating the materials to 2,100 • Finishing mills , which use intermediate - 2,300 °F. The equipment used for proc- steel products to make products for focused essing is protected by a combination of re- markets fractory linings and water-cooling of the refractory and shell of the equipment. Coke oven gas, gas, and the offgas from basic oxygen furnaces and electric arc furnaces must be treated to remove air pollutants. In the case of coke oven gas and 8.1.2 Water Use in Various Steel Industry blast furnace gas, this is generally accom- Operations plished by using the gases as process fuels Table 8.1-1 shows the various unit operations and alternatives to fossil fuels in boilers for that make up the steel industry universe. Inte- cogeneration of steam and electricity. Heat grated mills may have all of the operations transfer applications account for the largest listed in the table. Minimills, as constructed in use of water in integrated steel plants. the late 20th century, are built around an elec- tric arc furnace melt shop, a caster, and rolling mills to produce plate products; structural products; bar, rod, and wire products; and flat-

62 TABLE 8.1-1 Water Use for Various Unit Operations in the Steel Industry

Unit Energy Con- Recycled/ Re- Material Condi- Air Pollution Con- sumption (Stubbles, used Fraction Process Area tioning trol Heat Transfer 2000)

Cokemaking 200 gallons per ton 250-300 gallons per ton 8,000 - 8,500 gallons 5.1 MM BTU/ton coke 0% (newer plants coke coke per ton coke may recycle cooling water)

Boilers for Con- 40,000 - 120,000 7.5 MM BTU/ton coke ex- Varies depending verting Coke Oven gallons per ton coke ported energy in the form of on the age of the Gas, Tars, and gas, tars, and light oils boilers Light Oils

Sinter Plant 20 - 30 gallons per 900 - 1,000 gallons per 200 gallons per ton 2.2 MM BTU/ton sinter 80% ton sinter ton sinter sinter

Blast Furnace 100 - 200 gallons per 800 – 1,000 gallons per 2,500 – 3,000 gallons 15.48 MM BTU/ton molten 90% ton molten iron ton molten iron per ton molten iron iron

Boilers for Con- 20,000 - 60,000 gal- 3.2 MM BTU/ton molten iron Varies depending verting Blast Fur- lons per ton molten exported in the form of blast on the age of the nace Gas iron furnace gas boilers

Basic Oxygen Fur- 100 - 200 gallons per 800 - 1,000 gallons per 2,500 – 3,000 gallons 1.17 MM BTU/ton liquid 50% nace ton liquid steel ton liquid steel per ton liquid steel steel

Direct Reduced Iron 70 - 80 gallons per negligible 200 - 250 gallons per 8.3 MM BTU/ton iron ~80% Processes ton iron ton iron

Electric Arc Furnace negligible negligible 2,000 – 2,500 gallons 5.65 MM BTU/ ton liquid 80% per ton liquid steel steel

Continuous Caster negligible negligible 3,000 – 3,500 gallons 0.15 MM BTU/ton cast steel 70% per ton cast product

Plate Mill 1,000 – 2,000 gal- negligible 7,000 - 8,000 gallons 3.0 MM BTU/ton plate 30% lons per ton plate per ton plate product

Hot Strip Mill 400 - 600 gallons per negligible 7,000 - 8,000 gallons 2.2 MM BTU/ton hot-rolled 60% ton hot rolled strip per ton hot-rolled strip strip

Pickling 30 - 40 gallons per 80 - 100 gallons per ton 20 - 30 gallons per ton 0.20 MM BTU/ton steel 70% ton steel pickled steel pickled steel pickled pickled

Cold Rolling 50 - 100 gallons per negligible 2,500 - 3,000 gallons 4.2 MM BTU/ton cold-rolled 90% ton cold- rolled strip per ton cold-rolled strip strip

Coating 60 - 70 gallons per 1 - 10 gallons per ton 1,200 - 1,800 gallons 5 - 8 MM BTU/ton coated 80% ton coated steel coated steel per ton coated steel steel, depending on process and product

MM BTU/ton = million British thermal units per ton.

Source: Compiled CH2M HILL client project data

Overall, approximately 12 percent of the water heat transfer, which does not include the water use is for material conditioning, 13 percent is requirements for the boilers. The fraction of for air pollution control, and 75 percent is for the water recycled varies from operation to op-

63 eration, but it may be as much as 90 percent Water in Products for some operations. Water is not a part of steel products. Water is sold or transferred with spent pickle liquors. Not all integrated mills have all of the opera- tions listed in Table 8.1-1; for instance, sinter Return-Flow Uses plants have been disappearing for economic Water is supplied to the unit operations in steel reasons. plants and recycled or treated and discharged. Coke ovens produce by-product gas and liquids Water supply comes from surface water from the destructive distillation of coal. These sources, groundwater sources, and--in one by-products have considerable energy value. case--as treated water from a municipal sewage The liquids used to have considerable value as treatment plant. Water is used for heat transfer chemical products or raw materials for phar- from the processes, for treating and washing maceuticals, dyestuffs, or resins. The market product, and as a solvent for electrolytic plat- for the coal tars and light oils has been over- ing operations. taken by the production of similar products Contact Water from oil refineries (AISI, 2001). The produc- Water is used for contact cooling (quenching) tion of coke will require that the by-products in coke oven gas treatment, slag handling in be treated or consumed as raw materials and basic oxygen furnaces, electric arc furnaces, not released to the environment. For the pur- continuous casters, scale breaking in hot- poses of this study, it is assumed that the by- rolling operations, acid pickling, cold-rolling products are consumed in boilers for the pro- operations, caustic washing for coating lines, duction of electric power or steam. Similarly, and to make up electrolytic solutions in tin- blast furnaces produce a by-product gas that coating and chrome-coating lines. Water is also must be treated or consumed and not released used in wet scrubbers for air pollution control untreated to the atmosphere. For the purposes in coke oven gas treatment, sinter plants, blast of this study, it is assumed that this gas stream furnace gas treatment, basic oxygen furnaces, is used as low-heating value fuel in heat recov- acid pickling, and coating operations. ery boilers for the production of electric power or steam. This is a simplified view of energy Noncontact Water use and recovery practices that have been at Water is used in a series of heat exchangers in the heart of integrated for the past coke oven gas treatment, blast furnaces, basic 100 years. oxygen furnaces, electric arc furnaces, hot- rolling operations, cold-rolling operations, Steel Manufacturing Processes boilers, furnaces, and coating lines. Figure 8.1-1 provides a graphical overview of This noncontact water is generally discharged steel manufacturing processes: separately from the process waters. Process waters require treatment before being dis- Consumptive Uses charged to receiving waters. Evaporative Losses Water is consumed in operations where the Table 8.1-2 shows a breakdown of contact and water is evaporated. These operations include noncontact discharges and evaporative losses slag quenching at blast furnaces and basic oxy- for steel-making operations gen furnaces, coke quenching in coke ovens, spray chamber cooling at casters, and evapora- tion in cooling towers.

64 Coal Ore Fines Limestone

Coke Breeze Cokemaking Sinter Plant

Iron Ore, Coke Pellets Sinter Scrap Limestone, Dolomite Waste Oxides Injectants: oxygen, coal, Blast Furnace oil, natural gas Purchased Steel Scrap Oxygen Slag to Reclaim Internal Scrap Electricity, Fuels Molten iron Oxygen Fluxes Waste Oxides Scrap Basic Oxygen Furnace

Slag, Scrap Molten Steel to Recycle Ladle Ladle Treatment Treatment

Scrap Mill Scale Casting

Bar, Rod, Tubing Hot Rolling or Structural Mills Plate Mill Mill Scale Scrap

Scrap Acid Pickling

Mill Scale

Scrap Cold Rolling Mills

Mill Scale

Scrap Finishing Mills

Mill Scale

Wire, Bars, Rods Hot-Rolled Sheet Cold-Rolled Sheet, Strip Structural Shapes Strip and Plate Plate, Pipe and Tubing Rails, Pipe, Tubing Blooms and Billets

Source: Adapted from U.S. Council on Wage and Price Stability, Report to the President on Prices and Costs in the United States Steel Industry, 1977 (COWPS, October 1977) Reported in the Steel Industry Technology Roadmap, AISI, December 2001

FIGURE 8.1-1 Overview of Steelmaking Processing

65 .

TABLE 8.1-2 Evaporation losses and discharges for various steel-making operations

Process Contact Noncontact Water Process Area Makeup Water Evaporation Water Discharge Discharge Recycle Rate

Cokemaking 8,800 gallons per ton 230 gallons per ton 260 gallons per ton 8,310 gallons per ton Negligible to signifi- coke coke coke coke cant, depending on the age of the plant

Sinter Plant 240 gallons per ton 100 gallons per ton 140 gallons per ton negligible 1,000 gallons per sinter sinter sinter ton sinter

Blast Furnace 350 gallons per ton 70 gallons per ton mol- 25 gallons per ton 260 gallons per ton 3,500 gallons per molten iron ten iron molten iron molten iron ton molten iron

Basic Oxygen Fur- 2,100 gallons per ton 120 gallons per ton 140 gallons per ton 1,840 gallons per ton 2,050 gallons per nace steel liquid steel liquid steel liquid steel ton liquid steel

Direct Reduced Iron 290 gallons per ton 20 gallons per ton iron negligible 270 gallons per ton iron ~1,000 gallons per Processes iron ton iron

Electric Arc Furnace 250 gallons per ton negligible negligible 250 gallons per ton 2,000 gallons per steel steel ton steel

Continuous Caster 1,000 gallons per ton 10 gallons per ton cast 10 gallons per ton cast 980 gallons per ton cast 2,200 gallons per cast steel steel steel steel ton cast steel

Plate Mill 6,700 gallons per ton 30 gallons per ton plate 2,300 gallons per ton 3,000 gallons per ton 2,700 gallons per plate plate plate ton plate

Hot Strip Mill 3,100 gallons per ton 30 gallons per ton hot- 1,750 gallons per ton 15 gallons per ton hot- 4,700 gallons per hot-rolled strip rolled strip hot-rolled strip rolled strip ton hot- rolled strip

Pickling 60 gallons per ton 15 gallons per ton steel 15 gallons per ton 30 gallons per ton steel 120 gallons per ton steel pickled pickled steel pickled pickled steel pickled

Cold Rolling 80 gallons per ton 4 gallons per ton cold- 1 gallon per ton cold- 75 gallons per ton cold- 3,000 gallons per cold-rolled strip rolled strip rolled strip rolled strip ton cold- rolled strip

Coating 250 gallons per ton 10 gallons per ton 60 gallons per ton 180 gallons per ton 1,400 gallons per coated steel coated steel coated steel coated steel ton coated steel

Source: Compiled CH2M HILL client project data

Water Use by Facility Type mediate and final products. The amount of water will depend on the specific mill and ca- The integrated mills use more water than the pacity. other facility types, minimills and finishing mills. This is because integrated mills start Finishing mills tend to use less water than ei- with the most basic raw materials (ore, coal, ther integrated mills or minimills because and limestone) and convert them to steel that (1) the technology for recycling water is more is then processed into products. amenable to the finishing mills and (2) the fin- ishing mills start with an intermediate product Minimills use more water than finishing mills that needs processing only into a specific shape do because minimills start with scrap steel and or finish for the market. convert it into steel to be processed into inter-

66 Unit Operations That Use the Most Water experiences occur with the blast furnaces as Figure 8.1-2 shows a breakdown of water use in more cooling is added to the shell of the blast the various steel-making unit operations that furnace to extend the life of the linings at the use the most water. same time that incremental improvements are Steel industry operations tend to fall into three ranges for Sinter Plant water use: Blast Furnace 1240 Hot rolling (plate and 3850 • 8800 Basic Oxygen Furnace strip) and cokemaking use 4150 Electric Arc Furnace water in the range of Continuous Caster 7,000 to 9,000 gallons per 1650 2250 ton of product, including Hot Strip Mill both makeup water and 3080 Plate Mill 3200 recycled water. 180 Pickling • Blast furnaces, basic oxy- gen furnaces, electric arc Cold Rolling 9400 7800 furnaces, casters, and cold Coating Lines rolling use water in the Cokemaking range of 2,500 to 4,000 FIGURE 8.1-2 gallons per ton of product, Water Use By Operation, Gallons per Ton of Production including both makeup made to the energy balance with coal injection, water and recycled water. heat recovery, oxygen addition, and burden • Pickling, coating, and sintering use water in management to increase yields. the range of 200 to 1,800 gallons per ton of product, including both makeup water and In the transition from blast furnace and basic recycled water. oxygen furnace combinations to electric arc furnaces with high scrap and supplemental 8.1.2 Relationship of Water to Energy supplies, the net energy and water consump- Each unit operation in the steel-making proc- tion will decrease. The blast furnace - basic ess exhibits a different relationship between oxygen furnace combinations require a net use water use and energy consumption. In some of approximately 2,400 gallons of water and 17 cases, there is actually an inverse relationship. MM BTU/ton steel produced. the use of scrap For instance, reheat furnaces for hot strip mills steel in place of hot metal as feed to the basic have progressed from three-zone furnaces with oxygen furnace would reduce these ratios. If a a heat rate of 5 million British thermal units direct reduced iron plant and electric arc fur- per ton (MM BTU/ton) of steel heated to eight- nace were coupled together with no scrap steel zone furnaces with a heat rate of 1.4 MM feed, the similar net usage rates would be ap- BTU/ton. The cooling requirements increase proximately 550 gallons of water and 14 MM with each zone added, however, in order to BTU/ton steel produced. The use of scrap steel protect the internal components of the furnace. as feed to the electric arc furnace would reduce In this particular example, the energy required these ratios. now is only 28 percent of the 1980 require- The path to energy and water conservation in ment, but the cooling water requirement is the steel industry is transformational in 230 percent of the 1980 requirement. Similar changing processes and not incremental in im-

67 proving existing processes. This transforma- is located on a developed peninsula at the tion is impeded by the current (calendar year mouth of the Patapsco River east of Baltimore, 2002) worldwide over-capacity in steel pro- Maryland. Water supply had been provided by duction. a combination of groundwater wells and sur- face water withdrawal. The increased demands 8.1.3 Water Reuse Practices and Chal- for cooling water and process water supply also lenges in the Steel Industry required closer control of the quality and reli- ability of water supplied. Dissolved solids in Overview of Water Reduction and Reuse Practices and Challenges the cooling water for new blast furnaces and hot strip mill reheat furnaces were becoming In the steel industry, water is used primarily stringent limitations as these units operated for heat transfer. Cooling towers minimize this hotter and with higher heat fluxes, making water use. In some cases, closed-loop cooling scale formation a more significant impediment systems have been used for heat removal from to productivity. Increasing demand for cleanli- the process. Water has been supplied from a ness on the finished product as the product mix combination of surface water and groundwater shifted from plate to hot- and cold-rolled flat, withdrawal. thin-section, strip was another market crite- Future water supply may be in jeopardy from rion that made dissolved solids and salts in the population pressures and competing demands. process water an increasing concern. The flows This situation may be mitigated by water reuse in the Patapsco River and Old Road Bay were from treated municipal effluent or by increased not sufficient to support the increased de- internal treatment and recycling. mands for water, especially during dry years. The water from the Chesapeake Bay is brack- Process changes in steel production will reduce ish, with relatively high salt and carbonate con- water demand; an example of such a change centrations. The next best choice appeared to would be replacement of the cokemaking – be taking water from the rivers to the north of sintering - blast furnace method with direct Baltimore, but the only river that appeared to reduced iron processes for making iron as a have the capacity to supply the plant was the raw material. Continuing replacement of the Susquehanna, which was also being developed basic oxygen furnaces with electric arc furnaces for the Baltimore Department of Public Works has the potential to reduce water demand in as a drinking water supply for the expanding the industry. This will be offset, however, by population of Baltimore City and Baltimore the water required for the alternative iron pro- County. cesses that will replace the blast furnaces and extend the scrap steel supply. Currently, the Simultaneously, the Baltimore Department of scrap steel supply is adequate for supplying Public Works was increasing treatment of the minimills. This is likely to change in the future municipal water discharge plant at the Back as blast furnaces are taken offline and not re- River Waste Water Treatment Plant. The water lined for economic reasons. Then an alterna- discharge quality as designed was sufficient to tive iron supply will be required to supply the provide a relatively low dissolved solids con- minimills. centration. The discharged waters were filtered and disinfected sufficiently to make this water Case Study Outline a potential source for heat transfer in the more Around 1950, the Sparrows Point Plant of the demanding processes that were being devel- Corporation was facing a oped at the time. The requirement for clean shortage of water to support plant expansions water for processes could be met by a combi- to meet increasing market demands. The plant nation of the effluent discharge and the treated

68 potable water from the Baltimore Department the users in the plant. Facilities are provided at of Public Works. the pond for bleach treatment (previously chlo- rine treatment) for algae control in the in-plant The final resolution was that the Sparrows distribution system. This solution avoided the Point Plant contracted for 160 million gallons necessity of laying 60 miles of pipeline from per day of treated effluent from the Back River the Susquehanna River and allocating water Waste Water Treatment Plant as a new indus- from the river, which has become a primary trial water supply. This water is monitored to water supply for Maryland and Pennsylvania meet the wastewater discharge criteria set by communities in the river basin (Mendelson and permits for the wastewater treatment plant. Hanson, 1996) The water is delivered by pipeline to a pond where the water is inventoried and pumped to

69 9.1 References AISI. 2001. Steel Industry Technology Road Map. American Iron and Steel Institute, Washington, D.C. COWPS (Council on Wage and Price Stability). 1977. Report to the President on Prices and Costs in the United States Steel Industry. Re- ported in the Steel Industry Technology Road- map, AISI, December 2001. American Iron and Steel Institute, Washington, D.C. Maryland Department of the Environment. 1995. Application for NPDES Permit Renewal, Bethlehem Steel, Sparrows Point Division, Sparrows Point, MD. Mendelson, J.T., and D.R. Hanson. 1996. Per- sonal Communications. Bethlehem Steel Cor- poration, Sparrows Point Division, Sparrows Point, MD. Stubbles, J. 2000. Energy Use in the U.S. Steel Industry: An Historical Perspective and Future Opportunities. Prepared under contract to En- ergetics, Inc., for the U.S. Department of En- ergy, Office of Industrial Technologies, Wash- ington, D.C. 58 pp. Appendix VI – Strengths and weaknesses of BFI, MOL and BLUE-tec

We present the SMEs individual strengths and weaknesses, which are taken from D6.1, where these were first stated. We have chosen to present the strengths and weaknesses in a way that is applicable to the IMCG Innovation Arrow. Therefore, they are categorized into the six processes that innovative companies, that want to make an impact, need to work in parallel with; Communication, Market, Product/Service, Technologies, Resources, Organisation/Governance.

Figure: The IMCG Innovation Arrow process model is designed to open up the perspectives, develop a broader plan of activities and to foresee coming necessary activities for a successful business development. One positive side of the model is that you will see the advantages of working with several parallel processes.

After that we present strengths and weaknesses shared by the SMEs. The opportunities and threats will be presented for the SMEs as a group and part of the INSPIREWATER project.

BFI – Strengths and weaknesses

Strengths Weaknesses RESOURCES (Patent, CA, FTO)

. Has discussed whether to apply for a . To not have a patent registered patent or not and can state reasons because it is not possible to protect why not to do it magnetic separator as a phenomenon . It is not easy to copy the technology . The license agreement can limit the . Has a license agreement with Oxytec possibility to enter markets outside of . Performed work regarding patent and Germany – relies heavily upon Oxytec market analysis is equal to FTO . BFI has experience from other EU projects and is therefore familiar with the type of content that is to be found int the CA

TECHNIQUE (Competitors)

. Knows the competitors very well . There are competing technologies – . BFI’s technology has well documented such as sand-filter advantages compared to competitors . There are many competitors (but they . Has clear benefits: saving of energy, are known by BFI) decrease of operational costs and decrease of investment costs. . The benefits are easy to understand . The benefits can easily be explained and compared to other technologies

ORGANISATION/GOVERNANCE (Exploitation team relations) . There don’t seem to be any agreements . Good relations within the exploitation that claim that anyone has a special team. right to buy the technology by the end . The participants know who own what of the project as of now

PHASE 2 COMMUNICATION/MARKET/ PRODUCT/SERVICES (Market readiness) . The potential market is huge and there . Is close to market entrance are several different industries within . Good relation with Oxytec the target group . There is market potential within certain . Depending upon the selling and industries and many of them can be marketing capacity of Oxytec reached through BFI’s owner . Oxytec is not known outside of . Can handle the German market through Germany Oxytec . Oxytec does not have the capacity to go . Oxytec has a clear plan on how many outside of Germany magnetic separators to sell within the . Information only available in German next couple of years. . As long as Oxytec is not selling, the . BFI has a good story to communicate good story that belongs to BFI might . Benefits easy to explain – unique selling not be relevant to the market. points

MOL – Strengths and weaknesses

Strengths Weaknesses RESOURCES (Patent, CA, FTO)

. Technique patented in Germany . Technique not patented outside of . The technique is hard to copy due to a Germany five-step protection chain . The five-step protection chain could be . Has a good understanding of the CA described more in detail . Continues to invest in R&D to secure . Does not have a FTO protection of technique . Is in touch with company that has competence about patents and legal aspects

TECHNIQUES (Competitors)

. Has an understanding of the market . There are many competitors and potential competitors . Studies competitors and markets . Has clear benefits: energy-efficiency mainly through social media like with eco-friendly approaches. It’s cost- LinkedIn cutting for cleaning, maintenance and . No worldwide service options use of energy . It’s a brand-new technique that can take over the conventional water treatment techniques ORGANISATION/GOVERNANCE (Exploitation team relations) . Does not seem to have considered what . Good relations within the exploitation will happen with ownerships within the team. team or in relation to other exploitation . Everything is clear among the partners teams in the project, if a new concerning who owns what technology is being developed. . It’s stated that it’s extremely clear who owns what when it comes to the relationship between MOL and DOW. PHASE 2 COMMUNICATION/MARKET/ PRODUCT/SERVICE (Market readiness) . Generation change might slow down . Has good story-telling possibilities the market entrance, but not . The technique is described in several dramatically since the younger languages generation runs the international . Has high transferability to other sectors business development producing water and waste streams . Communication is technically oriented

BLUE-tec – Strengths and weaknesses

Strengths Weaknesses RESOURCES (Patent, CA, FTO)

. Has a clear picture of what could be . There are no patents as of today patented . Lacks written document about how the . Has a well-generated know-how that is technique is protected hard to copy . Does not have any written agreements . Has done research on potential markets within the exploitation team, although in the Netherlands, elsewhere in there might be a need for it Europe and in the US . Doesn’t have a legal department as large companies do. Has no legal expertise within the company

TECHNIQUES (Competitors)

. Is doing business intelligence – knows . There are indirect competitors that are both direct and indirect competition – using techniques that can replace BLUE- often knows people at the companies, tec’s technique knows competing companies’ . There are many replacement weaknesses and strengths technologies and evaporation is the . There are few direct competitors main competitive replacer . It’s hard to demonstrate the cost effectiveness compared to competitors

ORGANISATION/GOVERNANCE (Exploitation team relations)

. Good relations within the exploitation . Is not certain that the roles within the team team will be as clear as they are now, . Clear roles within the team at this state later in the project . Does not seem to follow what techniques being developed in the other exploitation teams

Appendix VII - Generation of wastewater by industry

Generation of wastewater by type of industry, 2011 (million m3) Produc on and distribu Industry Mining and Manufacturing on of electricity Construc total quarrying industries* (excluding cooling on water)** Austria1 1 487.2 n.a. 889.6 363.3 n.a. Belgium2 530.0 42.0 239.9 7.9 0.4 Bulgaria 153.6 12.5 91.3 37.9 0.6 Bosnia and 9.5 n.a. 9.5 n.a. n.a. Herzegovina Croa a 84.7 1.7 81.4 0.5 n.a. Cyprus5 1.9 n.a. 1.9 0.0 n.a. Finland n.a. n.a. 14.4 26.5 14.7 The Former Yugoslav Republic 687.7 9.2 408.1 251.6 n.a. of Macedonia2 Germany1 1 534.6 227.6 1 180.6 75.4 0.6 Hungary4 154.3 17.8 129.7 3.9 0.0 Latvia3 45.5 5.5 20.2 6.1 1.3 Lithuania 40.4 0.6 33.9 2.6 0.7 Poland n.a. 342.9 484.6 79.8 6.6 Romania n.a. 47.3 n.a. n.a. 3.6 Slovenia n.a. 0.1 42.8 n.a. 0.1 Slovakia 192.2 20.5 163.0 7.9 0.1 Spain1 6 335.2 47.2 602.0 n.a. n.a. Sweden1 878.0 26.0 839.0 14.0 n.a. Serbia 76.8 10.3 36.3 30.2 n.a. Turkey1 528.7 41.9 460.8 26.1 n.a. n.a.: Not available 1 2010 2 2009 3 2007 4 2006 5 2005 Notes: *Manufacturing industries include: food products; textiles paper and paper products; petroleum products, chemicals and chemical products; basic metals; motor vehicles, trailers, semi-trailers and other transport equipment; other manufacturing. **Production and distribution of electricity includes the activity off providing electric power, natural gas, steam, hot water through a permanent infrastructure (network) of lines, mains and pipes.

Source: Eurostat (n.d., Table 7). © European Union, 1995–2016.