George RocoskiMinistry of the Environment

FMI Ontario Chapter EventOctober 20, 2010

Innovation in the Water and Wastewater Sector: Leading the World

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• Rapid shifts in global economy impacting economic growth, jobs and investments - water and wastewater sector withstands economic cycles

• Large-scale investment in aging infrastructure creating local and global demand for rapid upgrades and advanced technologies

• Climate change threatening to affect water quantity and exacerbate many forms of water pollution

• High economic gains anticipated from short –term investment. Water technology sector is valued at more than $400 billion worldwide, doubling every 5 to 6 years

The Water Opportunity

Report available at www.oceta.on.ca

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Context• Ontarians have access to a clean, safe and abundant supply of water

• Ontarians have faced water pollution and supply issues

• Threats to water sustainability are increasing

• Water resources are limited in many parts of the world– 1 Billion people worldwide lack access to clean water– 47% of OECD countries are approaching unsustainable water use levels– 47% of world’s population will live in water scarce areas by 2025

• Demand for solutions to water quality and quantity problems is growing – Water sector is valued at more than $400B worldwide, doubling every five to six

years– Ontario has a large water infrastructure deficit ($1.5B annual gap)– Ontarians are amongst the highest per capita consumers of water; water

conservation is a cost effective way to reduce energy consumption and greenhouse gas emissions

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Ontario’s Situation• Ontarians are stewards and managers of water resources

• Opportunity to translate our water expertise/stewardship into economic growth and address Ontario’s water infrastructure deficit

• What is happening now in Ontario?– Ontario has progressive policies on water quality– Need for sustainable water, wastewater, and stormwater infrastructure – Water technology& services sector small and fragmented: large potential

• How do we compare?– Ontarians’ water use twice the amount of many European countries– Water quality policies are comparable to the U.S. but Europe has more advanced

policies and technologies developed to address the more difficult quality and quantity conditions they face

– European countries have developed water policies to grow strong partnerships in order to enhance economic opportunities

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Ontario’s Business Portfolio• Ontario is greatest contributor to Canada’s leadership position as third largest

exporter of water and wastewater products and services

• Water and wastewater is largest sub sector of Ontario’s environment industry and generates $1.8 billion in sales

• Sector is heterogeneous – includes: – engineering companies – consultants – component and technology suppliers, and – contractors

• Mainly comprised of small and medium sized enterprises (SMEs)

• Portfolio includes: – well known large, multi-national companies such as Zenon (General Electric),

Trojan Technologies and Hatch, and

– smaller firms developing and supplying technologies

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Ontario Innovations

Global Market Leaders• Zenon (GE) developed mobile water filtration technology; used to remediate well water in

Walkerton

• Trojan Technologies designs and manufacturers ultraviolet disinfection systems for range of industrial and commercial uses

Examples of Ontario Companies with New Technologies• Pathogen Detection Systems developed system that provides automated microbiological

testing of water quality for municipal drinking water systems (recently procured by Veolia)

• Echologics Engineering developed non-destructive test methods for water utilities to use in evaluating pipe wall thickness and locating leaks

• UV Pure produces low cost self cleaning UV treatment systems for small systems

Emerging Technologies• Nano-engineered membranes that have improved performance characteristics such as

higher throughput

• Coupling water technologies with advancements in measurement/ communication technologies to increase efficiency and reduce operational costs

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Building on Ontario’s Strengths

Strengths• Geography, research capacity, operational expertise, private sector knowledge,

access to capital

Opportunities for Ontario• To create technology and policy solutions that meet domestic needs and

accelerate the development and growth of exports to global markets

• To bring together the fragmented water industry in Ontario to compete on a global scale

• To create a brand for Ontario’s that identifies Ontario as a “go to” place for water and wastewater technologies and services

• To help companies bring their products/services to market: Pilot testing, demonstration, early adopters

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Overview of proposed Water Opportunities and Water Conservation Act, 2010

• As part of its Open Ontario Plan the province is taking steps to make Ontario a North American leader in the development and sale of water technologies for treatment and conservation

• On May 18, 2010, Bill 72 (The Water Opportunities and Water Conservation Act, 2010) was introduced and received first reading

• If passed, the proposed act would achieve the following outcomes:

– Make Ontario a North American leader in developing and selling water technologies and services through the creation of the Water Technology Acceleration Project

– Encourage Ontarians to use water more efficiently by creating and implementing innovative approaches to conservation

– Strengthen sustainable municipal water infrastructure planning by helping municipalities identify and plan for long term infrastructure needs

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The Innovation Chain

New Activities in Ontario– Green Focus on Innovation and Technology (GreenFIT)– Water Technology Acceleration Project (WaterTAP)– Expanding the role of the Ontario Clean Water Agency (OCWA)– Enhancing training and education for water operators

Stages of technology development

Risk Profile

Sustainable Development Technology Canada (www.sdtc.ca)

FundamentalResearch

AppliedResearch

TechnologyDevelopment & Demonstration

(Pilot to Full Scale)

ProductCommercialization

& MarketDevelopment

MarketEntry

&MarketVolume

Technology

Technology

Financial

Financial

Market

Technology

Financial

Market

Technology

Financial

MarketFinancial

Market

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GreenFIT• Strategy of the Ontario government to leverage its buying power to stimulate

innovation and sustainable production in Ontario’s Manufacturing sector

• Opportunity for public entities to act as “early adopters” of progressive solutions and technologies

• Focus on innovative goods and services that will help improve Ontario’s environmental footprint:– Support the protection, conservation, management and supply of clean water– reduce toxic and polluting emissions (including green house gases)– conserve energy– provide for renewable energy generation– reduce/divert waste

• New opportunities will be created through open and targeted expressions of interest

• Municipalities could get involved by advising the Ministry of the Environment about potential opportunities, challenges and/or priorities related to water services/management that could be addressed by a targeted expression for emerging water technologies

(www.doingbusiness.mgs.gov.on.ca)

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WaterTAP• WaterTAP is a non-Crown, non-profit organization proposed to be

established under the Water Opportunities and Water Conservation Act

• If the act is passed, WaterTAP would bring together industry, academia, and government in a central hub of water excellence to raise the profile of Ontario’s strengths

• Would facilitate the creation and growth of globally-competitive companies and high-value jobs by:– Building capacity for testing, demonstrating and commercializing innovative

technologies and services;– Creating business opportunities in Canada and abroad;– Advising government on actions to foster development of the sector; and– Sharing information and ideas between government, the private sector,

academia.

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OCWA

• OCWA is a provincial crown agency that provides water and sewage services across the province to municipalities, First Nations communities, institutions and businesses

• Operates approximately 500 facilities on behalf of over 175 clients in Ontario

• Services include project management, engineering, advisory and emergency response

• Potential to leverage OCWA’s experience and expertise to support key pillars of the proposed act

• Proposed new roles under the act:– Financing and promoting the development, testing and commercialization of technologies for water

treatment and management– Conducting business outside of Ontario

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Professional Training• Municipalities and water associations have identified shortages of skilled water

professionals in the near future– Need to strengthen the profile of careers in the water sector to encourage the next

generation of professionals– Working with associations to inform youth of career options in the water sector

• Working with the Walkerton Clean Water Centre, associations, colleges and universities, the Ministry will explore opportunities to develop or enhance water conservation training for professionals.

• The new Walkerton Clean Water Centre is a state-of-the-art facility that:– Trains water system operators from across Ontario;– Demonstrates conventional and innovative technologies for water treatment and

distribution; and– Researches new ways to ensure all Ontarians have access to safe, clean drinking

water now and in the future

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Summary

• Opportunities in the new economy will gravitate to jurisdictions demonstrating vision, creativity and leadership

• Government has vision of sustainable and profitable industries, providing jobs and high quality of life for Ontarians, and making Ontario competitive leader in new economy

"We want Ontario to provide the solutions the world is calling for. Innovative made-in-Ontario technology will help us conserve and protect our water, create jobs and boost our economy. "

Minister Gerretsen, May 2010 speech