Innovative Technology Solutions for Sustainability

Introduction to European Innovation Partnership on Water

FInnoWater: the financing for innovation action group.

“Water beyond Europe” South Africa

February 2014

ABENGOA

2

Our commitment

Abengoa focuses its growth on creating new technologies that contribute to sustainable development…

Generating energy from renewable sources

Converting biomass into biofuels and producing drinking water from sea water

Creating infrastructures that respect the environment

Promoting new development and innovation horizons

invests in research, development and innovation (R&D+i)

expands the technologies with the greatest potential

develops the necessary talent, attracting and retaining the best professionals (more than 26,000 employees)

dedicates economic and human resources to promoting social action policies that contribute to social progress

To achieve this, Abengoa…

Abengoa’s commitment to sustainable development is a priority in all its activities we try to reduce the impact of our activities with the support of an integrated management system

European Innovation Partnership on Water

3

EIP Water

EIP Water is a flagship initiative of the European Commission to pool water expertise and resources by bringing together public and private actors at EU

• Speed up development of water innovation

• Contribute to sustainable growth and employment

• Stimulate uptake of water innovations by market and society

EIP Water: priorities

4

Water innovations with high impact

EIP Water

What

How

EIP Water: structure

5

EIP Water

EIP Water: Action Groups

6

• Anaerobic membrane Bioreactor for Recovery of Energy and Resources

• CITY BLUEPRINTS: Improving Implementation Capacities of Cities and Regions

• ESE - Ecosystem Services for Europe

• FInnoWater: Financing for Innovation in Water sector

• Industrial Water Re-use and Recycling

• Renewable Energy Desalination (RE-Desalination)

• Smart Pricing and Drought Insurance Schemes in Mediterranean countries

• W4EF: Framework for evaluation and reporting of the energy impacts on water

• WaterCoRe: Regional governance of water scarcity and drought issues

EIP Water

FInnoWater

7

• What is Innovative financial instruments and mechanisms to support public and

private sector in water innovation

• Overall objective: identify, analyze and recommend on innovative tools to remove the barriers that hamper the existing demand and offer cycle for a wide range of water technologies and services as identified by the priorities of work of the EIP Water, as well as the conditions (legal, financial, procedural, institutional, etc.) which may spur this market process.

• Leader: European Regions Research and Innovation Network

• Members: Red Aragon 7PM Network/University of Zaragoza; WETSUS; VTT, Abengoa Water; Deltares; FEUGA; R+i Alliance; Regione Puglia, Department for Environment, Water Resources and Public Works; Central Denmark Region; Gov. of the Region of Valencia; Development Agency of the Region of Murcia; CDTI; Acciona Agua.; Aqua Publica Europea; ZINNAE; ACQUEAU; OIEAU; Paragon Europe

• Expected result: become a consolidated platform which can give advice to all water actors and stakeholders on how to promote and benefit form innovation oriented procurement and financial tools.

FInnoWater

Initial actions

8

• Initial Action 1 - An EU wide common structure to build interfaces

between funders, industry, companies, SMEs and research

organizations to foster relationships promoting innovation and

improve knowledge about access to finance

• Initial Action 2 - Options to improve access to finance for SMEs active

throughout the water cycle, especially those with potentially disruptive

technologies and those with high export potential

• Initial Action 3 - Frameworks and instruments to stimulate public

sector innovation in the priority areas identified by the EIP, based on a

review of public procurement best practices in relevant sectors of

industry in Europe and other OECD countries

• Initial Action 4 - Innovative financial instruments at an EU level to

support European companies proposing innovative goods and services

and to facilitate access into overseas water sector export markets in

line with the objectives of the EIP

FInnoWater

Initial action 4: why overseas?

9

The top 10 municipal wastewatertreatment markets, 2013-2017 (source: GWM-2014)

FInnoWater

The top 10 desalinationt markets, 2011-2018 (source: GWM-2014)

Initial action 4: Goal and objectives

10

• Promote and support actions to

overcome financial barriers:

Limit

Difficult

Slow down

FInnoWater

• Penetration of innovative

solutions into:

New markets

New geographiesWater companies (including SME)

General objectives

Help EU water companies to be competitive in the international markets and in

particular in developing countries.

Support EU water companies to have the know-how, technology and

capabilities to lead this global market

Initial action 4: specific objectives

11

FInnoWater

To identify new instruments to mobilize public and private funds at local,

regional, national and European levels to support innovation at each level.

To promote bilateral investment treaties between EU and third countries that

enable to boost a favourable political and commercial environment for EU water

companies

Link initiatives like Environmental Technologies Verification (ETV) for supporting

different stages of the innovation cycle and foster new approaches.

To increase overall financial flows to the water innovation sector especially

improving the financing of –EKA programs that allows the companies to

penetrate into new markets.

To align EU RTD&I addressed funds with the priorities of EIP Water.

To boost strategic alliances between SME and large companies to cooperate in

common business models.

Initial action 4: outcomes

12

FInnoWater

Study of RTD&I funding mechanisms out of EU

Key locations (USA, China, Middle East, India, etc.)

Report on successful business models in water sector

Type of costumer (public, private, etc.)

Geographical market

Application (desalination, wastewater treatment , water reuse, etc.)

Report on penetration of innovative solutions into market

Proposal to improve financial scheme of –EKA programs

Conclusions

13

FInnoWater

EIP Water is necessary to bridge the innovation valley of dead

Our market is not only Europe but the world

Leadership of EU water sector must be kept through technology

To achieve our goals FInnoWater is the key instrument

Innovative Technology Solutions for Sustainability

Thank you