Paul O'Callaghan, CEO, BlueTech Research is sharing his water technology innovation forecast, as well as insights and research on the emerging industrial water trends and technologies, that he presented at BlueTech Research Breakfast Briefing at WEFTEC 2017.

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Breakfast Briefing
WEFTEC 2017
Sponsored by
www.bluetechresearch.com
1

2. 6th ANNUAL WEFTEC INNOVATION PAVILION
2
Booth 7739c

3. BREAKFAST BRIEFING AGENDA
3
1. Introduction & Welcome (Divya Inna, Client Relations Manager)
2. Technology Innovation Forecast (Paul O’Callaghan)
• Analysing Water Innovation- Success & Failure
• Times for technology diffusion
• WE&RF Technology Forecasting
• Technology Adoption and forecasting
3. Industrial Water Trends - Corporate end user innovation needs (Jim Hotchkies and
Steve Gluck)
4. BlueTech Editorial Calendar (Rhys Owen, Senior Research Editor)
5. Thank you to our Sponsor – True North Venture Partners

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TECHNOLOGY INNOVATION
FORECAST
2017 INDUSTRY HIGHLIGHTS

5. 5
SUCCESS OF BLUETECH SHOWCASE ALUMNI
Success & Failure Rates in Water Technology
• BlueTech Research looked at 55 showcase companies from 2010-2014 & 85 BlueTech Tracker companies
• Success rates of BlueTech InnovaPon Showcase Alumni Companies over twice the industry average
• The failure rate is also over twice the industry average! - indicaPng a tendency to ‘go big or go home’.
• Defining Success is more complex than it seems at first glance
*1 BlueTech Tracker Sample Dataset: Longitudinal Analysis of 84 companies founded between 2000 -2005
*2 4% = >$10 M | 8.5% = Acquired
Venture
Capital
BlueTech Tracker
Sample Dataset *1
BlueTech Forum
Alumni
Successful 20%
12.5%
[8.5% acquire + 4%
>$10M/a]*
2
27.5%
(15% acquired + 12.5%
>$10M/a)
Failed 20% 20% 35%
Operating 60% 67.5% 37.5%

6. Successful,
20.0%
Successful,
12.5%
Successful,
27.5%
Failed,
20.0% Failed, 20.0%
Failed, 35.0%
OperaPng,
60.0%
OperaPng, 67.5%
OperaPng, 37.5%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
General Venture Capital BlueTech Tracker Data-set BlueTech Alumni
Successful Failed OperaPng
Success & Failure Rates in Water Technology

7. 7
SUCCESS OF BLUETECH SHOWCASE ALUMNI
Defining Success - whose success?
• Founder
• Investor (which one?),
• Technology
In Many of the ‘Failures’ the technology lives on:
• HTI –> FTS,
• MaxWest à PHG,
• M2 à Hydro InternaPonal
• While BlueTech has a good track record in selecPng
companies, we are befer sPll at picking promising
technology trends.

8. 8
BLUETECH - WaTA
WATER TECHNOLOGY ADOPTION MODEL (WaTA)

9. 9
WATER TECHNOLOGY MODEL - TIME LINES FOR CRISIS VS VALUE DRIVEN
INNOVATION
Innovator Early Adopter
Innovator + Early
Adopter
WaTAM 5 to 8 6 to 8 11 to 16
Crisis / Needs
Driven 3 3.7 6.7
Value Driven 5.3 6.7 12
No. Yrs Longer 2.3 3.0 5.3
% Difference 77 81
44% shorter / 80%
longer
Crisis - Approximately 5 years faster adopPon cycle
- Greater decrease in cost and increase in efficiency
Value - In the absence of a clear need, you need a 30% performance
advantage and paPence

10. -
50
100
150
200
250
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
Cumula2ve load (MLD)
Year
UF Technology S-curve
(United Kingdom)
1989: A large
Cryptosporidium
outbreak in UK
1992: Legislation
mentioned 1 micron
absolute barrier and
e x p e r t g r o u p
d e v e l o p e d a n d
published policy on
r e d u c i n g r i s k o f
Cryptosporidium in
water supplies.
UF Drinking Water Treatment - an example of a Crisis driven innova=on

11. 11
WATER TECHNOLOGY MODEL - TIME LINES FOR CRISIS VS VALUE DRIVEN
INNOVATION
• BlueTech esPmates
$2.6 Bn invested in
water technologies
companies in last 10
yrs
• Exit Early may be
the best strategy
• PaPence and
tenacity are
rewarded over
speed and agility

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TECHNOLOGY INNOVATION
FORECAST
2017 INDUSTRY HIGHLIGHTS

13. 13
TECHNOLOGY INNOVATION FORECAST WE&RF TOOL
• Another paper worth taking in is by Aaron Fisher of WE&RF in which they showcase a new
visualisaPon tool based on uPlity end-user surveys on their projected deployment of over 60
different innovaPons at water faciliPes across North America. The informaPon in the tool has
been collected via a survey sent out to water faciliPes. Each was asked about completed,
ongoing, and planned technology implementaPons to gain a comprehensive understanding
around the forward-looking deployment of innovaPve technologies and processes.
• BlueTech is partnering with WE&RF to interpret the findings and view these side by side and in
context with the BlueTech technology S-curves and to raise awareness with other uPliPes and
industrial users globally.
WE&RF LIFT Water Technology Survey
• Wastewater
• Drinking Water
• Stormwater
• Desalina2on
• Water Reuse

14. 14
TECHNOLOGY INNOVATION FORECAST WE&RF TOOL
• BlueTech has categorized the surveyed technologies and differenPated up-and-coming
technologies from those that are not gaining tracPon as well as those that have already reached
majority adopPon.
• We categorized the results into three categories: fast / moderate growth and flat liners.
SURVEYED WASTEWATER TECHNOLOGIES
• Granular sludge
• Mainstream shortcut
nitrogen removal
• Membrane aerated
bioreactors (MABR)
• Biogas to vehicle fuel
• Biogas to energy
• Carbon diversion
• Biological
augmentaPon for
digesPon (e.g.
superbugs, enzymaPc
hydrolysis)
• Thermal hydrolysis
• Biological
enhancement
• Sidestream
shortcut nitrogen
removal
• Phosphorus/
Struvite
management
• Chemically enhanced
primary treatment
• Low dissolved oxygen
treatment
• Advanced blower
technology
• Onsite renewables (e.g.
solar or wind)
• Co-digesPon
• Digester mixing
• Biological nutrient removal
• Biogas recovery and
cleaning

15. 15
TECHNOLOGY INNOVATION FORECAST
FAST GROWTH AREAS
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
2017 2018 2019 2020 2021 2022
Percent Adop=on/Interest
Year
Mainstream
shortcut
nitrogen
removal
Sidestream
shortcut
nitrogen
removal
Phosphorus/
struvite
management
Biogas to
vehicle fuel
Biosolids to
Energy - Various
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
2017 2018 2019 2020 2021 2022
Percent Adop=on/Interest
Year
Algae
ANA treatment
of low strength
WW
HydrokinePc
energy
recovery
Chemical
digesPon
enhancements
Mechanical
digesPon
enhancements
Temperature
phased
digesPon
Late Majority
Early Majority
Early Adopters
Innovators
Late Majority
Early Majority
Early Adopters
Innovators
FLAT LINERS

16. 16
TECHNOLOGY INNOVATION FORECAST – FAST GROWTH AREAS
These technologies have also been idenPfied by BlueTech Research as key growth technologies in the wastewater sector. Here
is where the survey agrees with BlueTech opinion on technology stages.
FAST GROWTH AREAS

17. 0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
2017 2018 2019 2020 2021 2022
Percent Adop=on/Interest
Year
Thermal Hydrolysis
Late Majority
Early Majority
Early Adopters
Innovators
TECHNOLOGY INNOVATION FORECAST
– Thermal Hydrolysis – @ EARLY ADOPTER: North America

18. TECHNOLOGY INNOVATION FORECAST
– Granular Sludge and MABR– @ Innovator & Early
Adopter: North America

19. 0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
2017 2018 2019 2020 2021 2022
Percent Adop=on/Interest
Year
Mainstream shortcut nitrogen removal Sidestream shortcut nitrogen removal
Late Majority
Early Majority
Early Adopters
Innovators
TECHNOLOGY INNOVATION FORECAST
– DeammonificaPon: Approx. 8% of respondents had it

20. 20
TECHNOLOGY INNOVATION FORECAST – FAST GROWTH AREAS

21. 21
TECHNOLOGY INNOVATION FORECAST – FAST GROWTH AREAS
FAST GROWTH AREAS

22. 22
TECHNOLOGY INNOVATION FORECAST – MODERATE GROWTH AREAS
MODERATE GROWTH AREAS

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INDUSTRIAL WATER
TRENDS
2017 INDUSTRY HIGHLIGHTS

24. 24
CORPORATE END USER INNOVATION NEEDS
DRIVER – REGULATIONS
Small wastewater generators, such as the craq brewers, arPsanal cheese producers and
etc., are now being pressured by their local municipaliPes to either install on-site
treatment or pay some heqy fines.
ALTERNATIVE SOLUTIONS – DECENTRALISED, SCALABLE TREATMENT SYSTEMS
Unfortunately, a lot of the exisPng technology is geared to either municipal wastewater
or to larger industrial clients.
CHALLENGES – EFFECTIVE COD REMOVAL, LOWER ENERGY CONSUMPTION,
For these small companies, perhaps with <5,000 gpd of wastewater, oqen high strength,
there is a dearth of opPons.
THE NEED – BALANCE EFFICIENCY BETWEEN WATER AND ENERGY
New technologies being developed have significant potenPal for applicaPons in industrial
WW treatment.

25. 25
TECHNOLOGY INNOVATIONS HIGHLIGHTS
DisrupPve /
Enabling
Technologies
Membrane Aerated Biofilm Reactors
(MABR)
Microbial EncapsulaPon
Granular Sludge
Forward Osmosis
Technology Example Providers
GE, Fluence, Oxymem, BioGill
LenPKats, Microvi, Nanospun, Hitachi,
BioCastle, Kuraray
Royal HaskoningDHV, Demon,
Aquafortus, Aquaporin, Forward
Water, FTSHE2O, Oasys, Modern
Water, Trevi Systems, Hyrec
AnMBR
Kubota, Veolia, ADI, GE, Fluence
(RWL), Aquabio

26. 26
MICROBIAL ENCAPSULATION HIGHLIGHTS
MICROBIAL ENCAPSULATION - WHAT’S IT GOOD
FOR?
• Microbial encapsulaPon is the pracPce of concentraPng beneficial microbes used in water/
wastewater treatment processes into polymer “cages” or capsules.
• It has not had large-scale commercial acceptance yet, but industry interest is increasing.
Nitrifica=on – Companies such
as Hitachi and LenPKats are
mainly focused on this. Competes
with NEREDA, MABR and IFAS
Denitrifica=on - most
commercial tracPon for
denitrificaPon (Microvi for
groundwater denitrificaPon)
Nitrita=on - selected
organisms purportedly provide a
nitrite enriched stream without
nitrate enabling such
denitrificaPon schemes without
carbon addiPon
BOD removal - Only Microvi
and BioCastle are addressing
carbonaceous BOD removal
Micro pollutants/emerging
contaminants - products
under development that address
perchlorate, E2-estradiol, NDMA
and dioxan
Market Applica=ons
RelaPve size and materials used in encapsulaPon technologies

27. 27
MEMBRANE AERATED BIOFILM REACTOR HIGHLIGHTS
• The MABR concept is based on membrane-diffused aeraPon.
• The idea is to essenPally use a gas permeable membrane to deliver oxygen more efficiently and
directly to the microorganisms, thus reducing energy consumpPon.
• Industrial ApplicaPons: Dairy, Winery, Aquaculture, etc.
Technology
Providers
Development Stage
OxyMem DemonstraPon
GE DemonstraPon
Fluence DemonstraPon
BioGill Early Commercial
MEMBRANE AERATED BIOFILM REACTORS

28. 28
FORWARD OSMOSIS HIGHLIGHTS
FORWARD OSMOSIS
Poten=al applica=ons in product manufacture
• Food and Beverage: PotenPal for FO in beverage concentraPon and applicaPons where the low
temperature of the separaPon provides superior product quality relaPve to a thermal process.
• SoluPon mining and solar evaporaPon processes: Produce inorganic salts such as sodium,
lithium or magnesium salts, may, in some cases, be advantaged by an FO process to replace or
intensify either thermal or solar evaporaPon capacity.
FO vs. alterna=ves
FO
RO
DisPllaPon
Membrane
disPllaPon
Solvent
extracPon
Humidific
aPon-
dehumidi
ficaPon

29. 29
ANAEROBIC MEMBRANE BIOREACTORS HIGHLIGHTS
Anaerobic membrane bioreactors
(AnMBR)

30. 30
INDUSTRIAL WATER TRENDS HIGHLIGHTS
INDUSTRIAL WASTEWATER TRENDS
ReflecPng several global Mega-trends, and leveraging technology
advances across the industry, we are seeing a number of significant trends
within the Industrial Wastewater space:
u a focus on water and energy footprint reducPon, as well as maximizing resource recovery:
q reduce OPEX;
q support sustainability goals;
u growth in decentralized wastewater treatment:
q enhance the potenPal for water reuse and resource recovery;
q eliminate potenPal sewer surcharges;
u an emergence of new business models that valorize “waste” and leverage this to implement
new technologies;
q there is no such thing as waste, only opportuniPes to “revisit” value;
u out-sourcing wastewater management, including complete BOO soluPons
q focus on what you do best;
q from global mulP-naPonal clients to arPsanal F&B businesses.

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BLUETECH FOCUS AREAS 2018

32. 32
FOCUS AREAS
Fast-moving technology areas
- Technologies that will be at a different stage in 5 years =me
Recent reports:
• Microbial Encapsula=on
• Forward Osmosis
• Online bacterial monitoring
• Onsite disinfectant genera=on
Coming up:
• Brine management & ZLD
• Anaerobic treatment of high-strength industrial wastewater
• Nano-filtra=on: Business as usual or the start of a membrane
revolu=on?
• Innova=ons in MBR Horizon scan/ MBBR/IFAS
• Membrane dis=lla=on

33. 33
FOCUS AREAS
Fast growth niche areas
- markets growing at > 10% per annum
Recent reports:
• Advanced Oxida=on Processes
• Ballast water management: insight report
• Perace=c acid: a new approach to water disinfec=on
Coming up:
• Stormwater treatment and management market update
• Decentralised/Modular treatment systems
• Direct & Indirect potable water reuse
• IOT in desalina=on and biological treatment

34. 34
FOCUS AREAS
Drivers and themes
Crises and issues driving innova=on
in water technologies
Recent reports:
• Nitrates in drinking water in the US
• PFAs
• Analysis of mergers and acquisi=ons in the water
industry
• Sensors and big data analysis in buried water
infrastructure
Coming up:
• Cybersecurity and IOT in water
• Lead detec=on technology
• Chromium 6
• Metagenomics
• Micro-pollutants

35. 35
FOCUS AREAS
Delivery methods
• Face-to-face meePngs
• Telephone support
• Web Briefings
• Client Monthly Update email
• Monthly Intelligence Briefing
• Intelligence Playorm
• Hard copies of reports

36. The InnovaPon tracker tool now includes a “cross compare func=on” which will help
to create some relevant comparaPve lists.
36
New cross-compare feature on BTR 8.0
INTELLIGENCE PLATFORM

37. By clicking on the “compare companies” bufon, the tool produces an interacPve
table (as below) that will allow users to compare informaPon between the
companies.
37
New cross-compare feature on BTR 8.0
INTELLIGENCE PLATFORM

38. 38
WEFTEC 2017 TECHNICAL EXHIBITION AND CONFERENCE TOP PAPERS
Each year we analyse the papers presented at WEFTEC. BlueTech Research’s curated selecPon of
the most impacyul papers presented at WEFTEC 2017.
1. Membrane Aerated Biofilm Reactors (MABR) conPnue to remain a topical item. Oxymem and
GE both present papers again this year.
2. Granular sludge is also a topic that is seeing a high degree of acPvity:
• We saw a sharp increase in the number of papers from 2015 to 2016.
• In 2017 the numbers of papers appears marginally down on 2016 but there is sustained
interest within the engineering and research communiPes to try and decode the ‘black
box’ that is sPll held by only a few.
3. Perace=c Acid (PAA) comes up with a number of case studies looking at its potenPal as an
alternaPve to chlorine in wastewater disinfecPon. BlueTech’s latest report “Perace=c Acid – A
New Approach to Water Disinfec=on” looks at the potenPal for this disinfectant to make
inroads into the wastewater disinfecPon arena.

39. 39
WEFTEC 2017 TECHNICAL EXHIBITION AND CONFERENCE TOP PAPERS
Brewery wastewater: There are a number of papers focused on the
treatment of brewery wastewater, and in parPcular the market niche in the
craq brewing market.
1. The ADI Systems paper describes using an anaerobic system at the
Olands Brewery in Nova Sco=a, using technology licensed from HydroThane,
(not to be confused with BioThane).
2. Waterleau has a fascinaPng paper, which talks about a project with a larger brewer in
Belgium, where they teamed up with the regional water supply company De Watergroep and
offered their soluPon as a BOOT contract to the client, which involves selling the client the
treated effluent which is treated to a potable standard.
3. A paper by the University of Manitoba describes how they used the Headworks Bio fixed film
media in an anaerobic MBBR to run pilot tests. This fixed film approach is also taken by the
Dutch company, Aquana, with its DACs technology. Aquana partners with various players
including AqWise and Nijhuis.
4. Chandler Johnson of World Water Works describes use of an Aerobic MBBR followed by a
DAF at the Alchemist Brewing in Vermont. Cambrian Innova=on also uses a fixed film
anaerobic treatment system.
Trends In Brewing

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Anaerobic Wastewater Treatment
– undergoing a renaissance
40
1 1 1 3 4 4 6 8
13 14 16 18
22
26
35
42 45
51
58
66
74
83
1 0 0
2 1 0
2
2
5 1
2
2
4
4
9
7 3
6
7
8
8
9
0
10
20
30
40
50
60
70
80
90
100
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
No. Of Installa=ons
Year
AnMBR S-Curve
Forecast No. Of Annual InstallaPons
No. Of Annual InstallaPons
Forecast No. Of CumulaPve Capacity
No. Of CumulaPve Capacity
CumulaPve Capacity
Forecast CumulaPve Capacity
Innovators Early Adopters

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Value Chain Shiqs
lue Chain Shiqs

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Examples of
Modular Water
and Wastewater
Treatment
Providers and
Concepts
with references
in Africa
42

43. 43
BLUETECH FOCUS AREAS
Industrial Market Opportuni=es
• Food & Beverage – move to circular economy soluPons
• Water Reuse & Energy
• Lease based modular soluPons
Other Growth Opportuni=es
• Point of Use – opportunity for integrated online sensors and chemical
free
• Decentralised Modular Micro-grid – taking off in developing world
economies
Key Opportuni=es in Municipal Market in North America
• Buried Infrastructure assef management
• Water Reuse – merging of DPR and IWR
• Nutrient Removal – parPcularly nitrogen
• Sludge Treatment – improved stability and dewaterability
• Niches: Nitrates, Chromium VI, PFOA

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