Innovation in the Water and Wastewater Sector: Leading the World

1. Innovation in the Water and Wastewater Sector:Leading the World George Rocoski Ministry of the Environment FMI Ontario Chapter Event October 20, 2010

2. The Water Opportunity • 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 Report available at www.oceta.on.ca

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. Fundamental Research Applied Research Technology Development & Demonstration (Pilot to Full Scale) Product Commercialization & Market Development Market Entry & Market Volume Technology Technology Technology Technology Financial Financial Financial Financial Financial Market Market Market Market The Innovation Chain Stages of technology development 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 Risk Profile Sustainable Development Technology Canada (www.sdtc.ca)

10. 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)

11. 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.

12. 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

13. 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

14. 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