360 Degree Perspective of the Environmental Industry and Review of Major Trends by 2020

360 Degree Perspective

of the Environmental Industry

and Review of Major Trends by 2020

Q2 Analyst Briefing

Environment & Building Technologies

Presented by:

Konkana Khaund

Industry Manager

Environment and Building Technologies Practice


Apr 20, 2011

Today’s Presenters

Konkana Khaund,

Industry Manager – North America


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Future Mega Trends and Implications to Environmental Industry

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Waste Management

Environmental Management

Sustainability with Social

Responsibility

Green Monitoring and Diagnostics

The Interplay of Environmental Issues

Cross-impact of Diverse Issues

Air Pollution Control

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Water and Wastewater

Green Supply Chain Management

Responsibility

Source: Frost & Sullivan analysis.

Circular Economy/Cradle-

to-Cradle

Low Emission Future

Environmental Protection and

Security

Diverse Issues

Achieving environmental sustainability depends on a multitude of factors exerting simultaneous influence

Poll Question #1

A. Effective in stirring dialogue for change

1. What is your opinion of the current legislation in the environmental area?

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B. Adequate for tangible change

C. Grossly inadequate

1950s Urbanization

2000s Suburbanization

2020s: Branded Cities

Creation of the historic center and

districts

Ring road motorway, living areas growing

outside the ring road as seen in

London

Urbanization Trends will Impact Environmental PrioritiesNeeds from emerging deurbanized cities and corridors will create new challenges and opportunities

Western Hemisphere will face an increasing trend of deurbanization

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2015s Network City

• Emerging urban layouts will have a

tremendous impact on environmental

issues

Urban sprawl, first highways and ring

road

Third suburban area and cities along the

highways created, ring road overblown by

urban sprawl


Top Trends in the Environmental Industry

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2010 2015

Water Issues

Major Issues

Global Environmental IndustryAnticipated Timeline for Major Issues

2020

Price stability

Deregulation and public-private-partnerships (PPP)

Mandate for water footprinting and

reporting globally

Water becomes the new carbon

“Green” dominates chain of command

Revisiting drinking water security

Drinking water and sanitation

Drinking and sanitation needs for developing countries

Water stress

Concerns on chlorine by-productsUV joined by ozone,

advanced oxidation, and

Mandatory standards for cradle-to-cradle production

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Sustainability and

Environmental Security

China overtakes the United States as the

world’s biggest emitter of CO2

Accelerated investmentin carbon capture

and storage


Environment Management

Issues Water security planning gains momentum

Information technology plugs Into

environmental diagnostics

Carbon becomes a business imperative

Environmental information monitoring

Regulators take class actions

chain of command

Streamlining of landfill regulations

Municipalities establish commercial links of selling treated

wastewater to industry

Concerns on chlorine by-products advanced oxidation, and chlorine alternatives

cradle-to-cradle production process

Global sustainability rankings

Membranes and reverse osmosis, EDI –

electrodeionization

Bioremediation

Rapid population growth and urbanization

Water quality and public health

SocialWater supply and sanitation

needs of remote communities

International agenciesRegional/national environmental

protection agencies

Political and

Financial Business and financial agencies

Key Sustainability Drivers

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and urbanization

Water stressStorm/flood

water management

Material resource and energy recovery

Carbon footprint

public health

Water reuse and recycling

(membranes, chlorine injections)Water tariffs

Ecological

Economical

needs of remote communities

Aquatic biodiversity and habitats

� Global populations are expected to exceed 9 billion by

2050.

� Inadequate infrastructure and management systems.

� Only 1% of the Earth's fresh water is available for

withdrawal and human use.

� Water availability, security, and the problems of

wastewater management are challenged by

three interlocking crises that make present

supply and distribution systems unsustainable:

� Rising costs

� Changing demographics

� Quality

The Size of the Problem

Water and Wastewater—A Key Global Challenge

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withdrawal and human use.

� Inadequate attention from various sources continue to

spell uncertainty.

� Successful and sustained water and wastewater

management will need new investments.

� Communities should plan water and wastewater

management against future scenarios

Cost

Demographics Quality

Cost

Demographics Quality

Poll Question #2

A. Yes

2. Should we price water as a commodity?

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B. Yes, with reservations

C. No

American Clean Energy and Security Act

“Reduce GHG emissions by 83 percent over 2005 levels by 2050”

UNCCC, 2009 -

WORLD WATER WEEK Stockholm

“Review regulatory directives; Highlighting Water Stress and Water Foot printing”

A mixed bagof bills making

headlinesin 2009

with varying priorities

and mandates

Regulatory Perspective

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California Global Warming Solutions Act

“GHG reductions to 1990 levels by 2020”

Other state and provincial initiatives:United States—Oregon, New York, Florida, ConnecticutOntario, Canada—Green Energy ActBritish Columbia, Canada—Environmental Assessment Act

Other state and provincial initiatives:United States—Oregon, New York, Florida, ConnecticutOntario, Canada—Green Energy ActBritish Columbia, Canada—Environmental Assessment Act

UNCCC, 2009 -Copenhagen Climate Summit

“Copenhagen Green Climate Fund -$30 billion to developing nations to fight climate change issues”

“Outcome –Still Divided on

Climate Change”

Key Market Opportunities in 2020

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Smart infrastructure: Multimodal transport hubs providing air, rail, road connectivity to other megacities.

Smart technology: Intelligent communications systems connecting home, office, iPhone and car on a single wireless IT platform.

Smart energy: About 20% of the energy produced in a city will be renewable (wind, solar).

Smart buildings: At least 50% of buildings will be green and intelligent, built with building integrated photovoltaics (BIPV); 20% of the buildings will be net zero energy buildings.

The Integrated Industry Overview—2020Environmental Issues and the Urban Infrastructure Setting

Megatrends in parallel industries will influence the

environmental sector

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Satellite towns: The main city center will merge with several satellite towns to form one megacity.

Smart cars: At least 10% of cars will be electric, with free fast-charging stations every half mile.

Smart grid: Infrastructure to enable real-time monitoring of power flow and provide energy surplus back to the grid.

Source: Google ImagesImpact zone for water, waste management, environmental management

environmental sector and present new opportunities for

suppliers

ProjectedImpact on the

Industry

High Impact

Opportunity Triggers—Major Trends by 2020

2015

2020

EU water reuse and

Biosolid concerns in the municipal sector catalyze growth in Europe and the

United States

Sludge generation in developing countries

triggers biogas and waste in the energy market

Interest in nonchlorine

UV joined by ozone, advanced oxidation, and chlorine alternatives

The Asia-Pacific region emerges as the strongest market opportunity for

biosolids

Complex contaminants such as endocrine

disruptors gain focal

Marketplace established for water trading between municipalities and commerce

Europe and North America evaluate best options to tackle extreme

weather -related flooding

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Industry

Low Impact

Drinking water and sanitation needs in Asia, the Middle East,

Latin America, and Africa


2010

EU water reuse and recycling catalyzes growth;

China and India boost momentum

Carbon footprint drives energy recovery particularly in

industries

Sludge dewatering continues to be the choice for developing countries

Produced water sector for oil and gas establishes presence

Interest in nonchlorine disinfectants and

techniques such as UV

disruptors gain focal point

Rainwater harvesting systems emerge as a strong market in the

Asia-Pacific region

Decentralized systems market heats up in Southern, Central and Eastern Europe

Immediate Long Term

Addressing Market and Customer Needs

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Mark

et

Dri

vers

1-2 yrs 3-5 yrs 6-10 yrs

Lack of resource supply to meet existing demand on a regional basis

Corporate social responsibility and sustainability considerations

Government support stemming from a need to satisfy resource demand in a sustainable way and curb carbon emissions

Addressing needs of aging infrastructurerequirements globally

Current Trends and Challenges to Market Growth

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Mark

et

Restr

ain

ts

Slow adoption rate for innovative technology and high investments

Planning issues and slow regulations for energy and resources, including technology adoption


Economic instability, reductions in capital expenditures and budget constraints

Environmental Market SegmentsGlobal Snapshot of Projected Growth of Select Segments

2010

Water and Wastewater

Waste Management

2012

��

2013 2014 2015

��

��

Example: North American Market Opportunities by 2015

• Water and wastewater treatment equipment

dominate all key environmental market segments

• Water and wastewater treatment equipment

equals approximately $4.50 billion

• Bioremediation equals approximately $12.00

billion

• Air pollution control equals $1.35 billion

• Waste to energy equals 2,500 megawatts of

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Bioremediation

Waste to Energy

Air Pollution Control


• Waste to energy equals 2,500 megawatts of

installed capacity

��

Global Water and Wastewater MarketsMarket Growth Opportunities

� Global growth for the past five years

creating a sustainable buzz

� Clean water is the oil of the 21st century,

representing a rising demand for a fixed

resource

Market Growth Opportunities

Drive

rs

Drive

rs

Growing demand for

potable water

Environmental legislation

Private sectorinvestment

Qualityrequirements

Initiatives toraise access to

sanitation

Drive

rs

Drive

rs

raise access to

Intrinsic link to energy markets

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Restra

ints

Restra

ints

Failed privatization

ventures

Re

stra

ints

Re

stra

intsRegionally

poor enforcement

Lack of public sector capital

Market maturity in the European Union (and United States)

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

($ m

illio

n)

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

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Water Wastewater Sludge

Emerging Technologies and New Business Models of the Future

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Future

Competitive Tiers and Future Evolution

Manufacturers

Technology incubators, third-party solution

providers and integrators

Monitoring, quality control, health and safety

providers, IT solution providers

Market Evolution and Consolidation

Traditional Positioning

Diversification, collaboration and

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Environemntal consulting companies/service providers

Turnkey infrastructure providers

Municipalities, grid-security solution

providers, power infrastructure providers, IT

solution providers

providers, IT solution providers

Co

mp

eti

tive T

iers

collaboration and new capability creation with

market evolution

Competitive Focus and PositioningInnovation to Drive Positioning of Players

Supply chain and logistics

management for remote

deployments

Advanced environmental quality monitoring

Advanced waste management for

nuclear waste and carbon waste

Water grid management and

monitoring

Packaged solutions for small

communities Technology and market trends will shape competitive focus

Mark

et

Tech

no

log

y

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monitoring

Carbon capture, storage and

sequestration

Turnkey solutions for water, waste

and sanitation for emerging markets

Technology diversification to

include treatments for complex

environmental contaminants

Value recovery and treatment of by-products

Readiness to respond to these changing trends will influence

growth of market participants by ensuring potentially high returns

Readiness to respond to these changing trends will influence

growth of market participants by ensuring potentially high returns

Mark

et

Tech

no

log

y

Strategy for operating decentralized market

systems

Meeting Emerging Environmental Challenges

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Global Water Shortages Will Drive Water Strategy and Planning Issues

� Intelligent water planning to be

strictly followed by organizations in

2020

� Mandates for water footprint and

reporting

� Challenge from waste disposal and

� Intelligent water planning to be

strictly followed by organizations in

2020

� Mandates for water footprint and

reporting


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Water stress in the above map is defined as: • Low when less than 10% of total available is withdrawn • Moderate when 10% to 20% of total available is withdrawn • Medium-High when 20% to 40% of total available is withdrawn • High when more than 40% of total available is withdrawn

Source: The World Business Council for Sustainable Development, and Frost & Sullivan analysis.


deep-sea burial issues will continue

� Emergence of new demand

influencers


deep-sea burial issues will continue

� Emergence of new demand

influencers

Energy and resource recovery from reverse osmosis desalination plants

Water reuse and recycling systems market (membrane bioreactor systems) *

Biogas generation from wastewater treatment (anaerobic digesters such as upflow anaerobic sludge blanket

Demand from Asia, Africa, and the

Middle East will fuel the need for faster commercialization and deployment.

Demand for Emerging Technology Solutions

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Chemical-free, disinfection, and water and wastewater treatment (UV and ozone; OSHG and BHC; advanced water treatment technology such as UV, EDI, ozone; desalination) *

Nutrient removal and wastewater treatment solutions for rapidly growing cities (moving bed bioreactor systems)

as upflow anaerobic sludge blanket systems)

Continued Interest in DesalinationDriving Water Programs and Innovations

� Limited technological advancements continue to restrict

the use of this process, however, prospects for innovation

will keep this segment active

� Limited technological advancements continue to restrict

the use of this process, however, prospects for innovation

will keep this segment active

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The Road Ahead

Impact of Market Forces (Present to 2020 and beyond)

Present

2015

Market proliferation of smart concepts

Decentralized markets with enhanced

competitiveness

2020 and beyond

Explore linkages for market commercialization of innovative technologies

Water scarcity planning techniques and advanced treatment process to gain market traction

Sustainability rankings to influence corporate decisions and behavior

Enhanced awareness for climate change issues

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Present

Stimulus funding

Entry of sustainable technologies

Infrastructure renewal opportunities

Increased interest and attention for water

scarcity planning and emission reduction

Growth in opportunities supported by

emerging demand from developed

countries

change issues

Smart technologies make serious inroads into stress areas

Effective C02 reductions and adherence toward climate change targets

Focus Areas for Industry Participants

Focus Areas


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• Focus on technological innovations

• Explore geographic concentration of opportunities

• Adopt strategic alliances and partnerships

• Maintain competitive differentiation


Key Issues

o Issues of water and energy are

converging . Efficiency is emerging as

the most important value proposition.

o Smart technology is redefining the

Key Issues

o Issues of water and energy are

converging . Efficiency is emerging as

the most important value proposition.

o Smart technology is redefining the

Conclusion

The Big Questions

� Commoditization of water—Is it time for

a seasonal water tariff?

� Green nuclear—How should the industry

address safe disposal and treatment

The Big Questions

� Commoditization of water—Is it time for

a seasonal water tariff?

� Green nuclear—How should the industry

address safe disposal and treatment

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market and becoming integral to energy

efficiency. “Smart” solutions have

leapfrogged “green” solutions.

o Technology convergence leads to

convergence of competition and

redefined value chains.

market and becoming integral to energy

efficiency. “Smart” solutions have

leapfrogged “green” solutions.

o Technology convergence leads to

convergence of competition and

redefined value chains.

practices?

� Smart technologies—How do we speed

up “concept to commerce”?

� Waste to value—Will there be viable

commercial linkages for treated

wastewater and hazardous waste?

practices?

� Smart technologies—How do we speed

up “concept to commerce”?

� Waste to value—Will there be viable

commercial linkages for treated

wastewater and hazardous waste?

Poll Question #3

A. Established global player

3. How would you rate your current capabilities in meeting global challenges?

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B. Regional player, in need of global strategy

C. Yet to make an informed market entry decision into global markets

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For Additional Information

Britni Myers

Corporate Communications

Energy & Environment

(210) 477-8481

[email protected]

Nils Frenkel

Sales Director

Energy & Environment

(210) 247-2451

[email protected]

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Konkana Khaund

Industry Manager – North America


(416) 495-2673

[email protected]

360 Degree Perspective of the Environmental Industry and Review of Major Trends by 2020

Technology

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