2015 minnesota water technology summit

MinnesotaWaterTechnology SummitFriday, September 11, 2015

University of MinnesotaHumphrey School of Public Affairs

#MNWater

CleanAbundantRecovery

QualityTechnologyInnovation

EnvironmentConservation

Ecosystem

Michael LangleyCEO, GREATER MSP

#MNWater

SPONSORS

Additional Support Provided by:

ADDITIONAL SPONSORS

AERATION INDUSTRIESBARR ENGINEERINGIEC

SJE-RHOMBUSTONKA WATER

#MNWater

PLANNING COMMITTEE

AERATION INDUSTRIES

CARTWRIGHT CONSULTING

DOW WATER & PROCESS SOLUTIONS

ECOLAB

FAEGRE BAKER DANIELS

GE WATER & PROCESS TECHNOLOGIES

GREATER MSP

LENZ CONSULTING

THE METROPOLITAN COUNCIL

THE MINNESOTA TRADE OFFICE

PENTAIR

TONKA WATER

THE UNIVERSITY OF MINNESOTA

#MNWater

Slides will be available on SlideShare at

http://www.slideshare.net/

GREATERMSP

#MNWater

David KansasEVP, COO Minnesota Public Radio

#MNWater

Randall J. HoganChairman & CEO, Pentair

#MNWater

PENTAIR


#MNWater

COLLABORATION & COMMERCIALIZATION

Moderator | Bill Weimer, Faegre Baker Daniels

Panelist | Carrie Eppelheimer, Dow Water

Panelist | Marc Hillmyer, University of Minnesota

Panelist | Paige Novak, University of Minnesota

Panelist | Jay Schrankler, University of Minnesota#MNWater

Collaboration and Commercialization

Moderator: Bill Weimer

2015 Minnesota Water Technology Summit

Collaboration and Commercialization

►Panel Members► Bill Weimer, Faegre Baker Daniels► Carrie Eppelheimer, Dow► Professor Marc Hillmyer, University of Minnesota► Jay Schrankler, University of Minnesota► Professor Paige Novak, University of Minnesota

Point of this Panel

► Recognition

► Great collection of water-related technologies, businesses, universities and government entities in Minnesota

► Strong interest in growing/strengthening this by private and public players

Point of this Panel

► Collaborations (and collaboration attempts) involving Minnesota companies, universities and government

… are vehicles for communications, learning, relationship building and commercialization

Point of this Panel

► Types of collaborations

► Different Goals, e.g.,► Bringing together two technologies► Bringing together a material technology with a manufacturing capability► Bringing together a technology with a existing market channel► Bringing together a business goal with an expertise to scientifically uncover the mechanism that provide a

material property► Bringing together two business capabilities

► Different Combinations of Parties► Bigger companies, smaller companies, universities, govt entities

Point of this Panel

► Realities of a Collaboration

► Sometimes a collaboration makes sense, sometimes not► Collaboration must be based on both (or all) parties’ business objectives► Requires compromise ► Introduces risks

► Sharing confidential information, depending on another party

► The benefits of collaborating need to outweigh the risks and costs► How will this potential collaboration benefit us? What are the costs? Risks? What is the probability of success?

Point of this Panel

► Realities of Collaborations

► The “deal” you can strike depends on what each party brings to the table and needs from the other party► Business acumen► Willingness to compromise, to take smart risks, adjust► Existing market channel, ability to move quickly in the marketplace► Intellectual property: patent portfolio, trade secrets, brands, etc. ► Funding

► Collaboration agreements take time and care to negotiate and draft► Capture how the parties want to proceed, including how to end the deal

Point of this Panel

► Realities of Collaborations

► Collaboration deals take time and care to negotiate and draft► Agreement needs to capture how the parties want to proceed► Including how they want to end the deal

Collaboration Examples and Tips

► Carrie Eppelheimer, Dow► Professor Marc Hillmyer, University of Minnesota

Carrie EppelheimerGlobal Marketing Director,Dow Water & Dow Microbial Control

#MNWater

Marc HillmyerMcKnight Presidential Endowed Chair,Department of Chemistry, University of Minnesota

#MNWater

University of MinnesotaOffice for Technology Commercialization

IP and Collaborations

September2015Jay Schrankler

Executive Director

Nature Biotechnology Ranking Dec 2014

OTC MetricsFiscal Year 2008 2009 2010 2011 2012 2013 2014Invention Disclosures 217 244 255 250 324 331 343New U.S. Patent Filings 52 65 66 78 115 146 138New Licenses 63 44 67 76 71 91 154University Start-Ups 2 3 8 9 12 14 15

Current Revenue-Generating Agreements 281 306 399 457 426 331 429

Gross Revenues ($MM) $86.9 $95.2 $83.8 $10.1 $45.7 $39.5 $27.4

Recent OTC Awards/Recognition• 2013 MHTA (Minnesota High Tech Assoc.) Tekne: Innovative Collaboration Award

Teamed with Boston Scientific• 2014 MSP (Minneapolis St. Paul) Business Journal: Eureka Award• 2014 MN Finance & Commerce: MN Progress Award• 2014 Tech Connect: National Innovation Award

• Make it easier to do business with the University• Eliminate protracted negotiations about IP terms• More self-service, more/better information online

• Eliminate the uncertainty in future financial obligations • Define the licensing terms in the research agreement

• Want exclusive rights to the IP• Eliminate concerns that competitors will license the IP that

results from research company funded• Make it easier to evaluate and license IP

• Minimize financial risks for licensing unproven technologies

What Industry told us…

Minnesota Innovation Partnerships

INDUSTRY

Sponsored Research

Technology LicensingMN-IP Try and Buy

MN-IP Create

Created IP

License fees $$

Research Funding $$$

Existing IP

MN-IP Create• Two options for establishing intellectual property rights

through a sponsored research agreement

• Option A: Created to remove uncertainty and financial concerns that often surround industry funded research projects in a university setting

• Option B: Retained for those sponsors who do not wish to pay an upfront fee and wish to await creation of IP before negotiating terms

• 6 month option period

MN-IP Create Option A• Pre-paid exclusive option fee

• 10% of sponsored research contract or $15k, whichever is greater

• Option to exclusive license with pre-set terms• No annual minimums• No time limits or milestones• Sponsor is free to sublicense/cross license• When annual net sales ≥ $20M, 1% royalty on total annual net sales• $5M cap on royalties if IP improves on sponsor’s existing product or

process

• Company pays patent costs and controls patent process • While collaborating with the University on patent strategy

MN-IP Try and BuyTransparent, industry-friendly IP license for existing technology

•Try: Exclusive Option with low, single fee– No U.S. patent expenses due– $0 for MN companies

•Buy: License with pre-set terms – published online– Low, published royalty % – First $1M sales are royalty-free– U.S. patent expenses due only when patent issues– Discount for MN companies

Satisfied MN-IP CustomerDear April,I hope this finds you well. The investors and Board of Directors of Diabetes-Free, Inc have asked me to reach out to you to let you know that the company's R&D has been very successful. The substantial scientific and commercial progress that has been made is due in large part the efficiency and attractiveness of the MN-IP: Minnesota Innovation Program. They have now established a second company unrelated to Diabetes-Free and would like to fund a $250,000 research project with the University with a new researcher in the department of Genetics, Cell Biology, and Development. Given the important role you played in making this a fast, efficient, and successful process and the relationship we have now established, we would be delighted to work with you again.Please let us know what next steps that we, the company, and the researcher can take to have the proposed research approved and for us to start work on the SRA.Thanks,-- Roger A.C. Kuypers | Partner

UMN Initiatives in Water Technology and

Remediation

Paige NovakDepartment of Civil, Environmental, and Geo- Engineering

Research in science and engineering has become a highly

collaborative enterpriseExamples:

•

• Multiple Centers, Institutes, Research Networks

• MnDRIVE (Minnesota’s Discovery, Research, and InnoVation Economy)

• Water Technology Working Group

Partnership between the State and the University to stimulate research/business collaborations, resulting in economic development and scientific advances

(https://mndrive.umn.edu)

MnDRIVE Initiative

MnDRIVE Initiative: Environment

• Supporting and stimulating research on the use of microorganisms to remove pollutants from the environment (“bioremediation”)

• Hired faculty, supported research, sponsored industry events

• RFP out now, requires industry participation

Researchers:– Membranes: Hillmyer, Romero-Vargas Castrillón, Tsapatsis– Environmental engineering: Arnold, Hozalski, LaPara, Novak, Hu– Physical/chemical systems: Aksan, Dutcher, Stein– Microbial systems: Behrens, Wackett, Gralnick– Sensors: Buhlmann, Wang

Water technology working group

Fostering collaborative research focused on integrated technologies for resource recovery from waste (metals, nutrients, organic chemicals, energy, clean water),“remediation and resource recovery”



#MNWater




Ecosystem


#MNWater

MN Water Technology SummitSeptember 11, 2015

Randy EllingboeMinnesota Department of HealthSection of Drinking Water Protection

Nitrate – MN, IA Drought – SW MN, CA, TX, NV … Floods – Duluth Harmful algal blooms – OH, IN, IL Spills – WV

Drinking Water in the News

State Agencies’ Responsibilities

Water Supply Environment

Safe Drinking Water Act (SDWA)

Assess contaminants effects on human health

Well construction and sealing

Clean Water Act

Ground & surface water pollution impacts

Water quantity management/ appropriations

Nitrogen fertilizer and pesticides impacts on groundwater

MDH administers federal Safe Drinking Water Act under delegation from EPA

MN’s public drinking water is protected through a series of strategic safeguards to protect drinking water from source to tap

Three basic strategies:◦ Monitoring◦ Prevention◦ Treatment

Drinking Water Protection

Public: Surface water 1.3 million

Private Wells:1.2 million

MN’s Drinking Water Sources

Public system, Groundwater Source:2.7 million people75 % drink

groundwater

Public Water Supply Systems

• Serve 4 million people

• ~11,000 Public Wells

• ~960 systems that provide water to people where they live

• ~6,000 systems that provide water to people where they work or play

Monitoring and regulation of public water supplies (PWS) to comply with federal drinking water standards

Technical assistance to PWS and well contractors Plan review and approval of infrastructure including treatment systems, water

mains, etc. Inspections of PWS infrastructure and wells Public Information (Consumer Confidence Report, Annual Report, etc.) Drinking Water Revolving Fund for infrastructure loans

◦ in cooperation with Public Facilities Authority, $40M+ per year Assessing human health risks

◦ E.g., Contaminants of emerging concern Regulation of well construction and sealing

MDH Drinking Water Protection Activities:

Well Construction

450 Licensed Well Contractors 250,000+ private wells State well code

◦ Location, confining units, grouting◦ 12,000 wells constructed annually

in MN on average Special well and boring

construction areas Testing required at construction:

◦ Nitrate ◦ Bacteria ◦ Arsenic

No additional testing or treatment required after construction for private wells

47

Microbiological: Bacteria, Viruses, Parasites) Inorganic Chemicals (e.g. Nitrate, Lead,

Arsenic) Organic Chemicals (e.g. Fuels, Solvents,

Pesticides) Radiological (e.g. Radon, Radium)

Samples analyzed in MN laboratories Testing frequency varies depending on

contaminant and levels found Over 150,000 samples tested each year

Public Water Supplies – 100+ Regulated Contaminants:

Meeting SDWA requirements:◦ Some MN public water supplies require little or no treatment to meet standards ◦ Some have a variety of naturally and/or man-made contaminants in their

ground or surface water source Treatment needs can vary greatly Costs to public vary greatly Drinking water treatment may create challenges for wastewater

treatment, e.g., ◦ Reverse osmosis◦ Phosphate for corrosion protection

Challenges

80,000+ chemicals in use in US◦ Pharmaceuticals◦ Personal care products◦ Industrial◦ Agricultural

Periodic reconnaissance efforts◦ EPA Unregulated Contaminants Monitoring Rule◦ Contamination events

MDH Contaminants of Emerging Concern program assesses nominated chemicals for potential health impacts

Emerging/Unregulated Contaminants

Innovation needed to deal with emerging issues Challenges

◦ Regulatory staff knowledge/capacity varies by state◦ Assessing feasibility and effectiveness of new

technologies important to public Independent certification of technology? Pilot studies

Resources for states:◦ Great Lakes/Upper Mississippi River Board

Provides guidance for drinking water and wastewater technology regulatory review

Technology and Innovation

Randy EllingboeMinnesota Department of [email protected]

Thank you!

mailto:[email protected]

Lt. Governor Tina Smith

#MNWater

Douglas M. Baker, Jr.CEO, Ecolab

#MNWater

WATER SCARCITY

FORCE FOR INNOVATIONDouglas M. Baker, Jr. Chairman and Chief Executive Officer, ECOLAB

11 September 2015

2.5%= FRESH WATER

glaciers, ice capsgroundwaterlakes, rivers,

ice/snow

1.72%

.75%

.03%

97.5%= SALT WATER

vs.

Of the earth’s water supply:

Water Inventory

57

Embedded Water in Everyday Products

167 Gallons of Water

=

55 Gallons of Water =

39,090 Gallons of Water

=



2.6 Gallons of Water =

58

Water Demand to Surpass Supply by 40%

59

+50%

+87.5%

+45%

-40%

Water Scarcity Intensifying

60

2014

Top 20 GDPWater Price

($/m3) Water RiskUSA 17,419 $3.53 Moderate/highChina 10,380 $0.52 highJapan 4,616 $2.12 moderateGermany 3,860 $6.02 lowUK 2,945 $5.62 moderateFrance 2,847 $4.59 lowBrazil 2,353 $2.43 moderateItaly 2,148 $1.90 moderateIndia 2,050 $0.14 highRussia 1,857 $1.01 lowCanada 1,789 $3.54 lowAustralia 1,444 $6.50 moderateKorea 1,417 $0.95 moderateSpain 1,407 $2.58 moderateMexico 1,283 $0.95 moderateIndonesia 889 $0.53 lowNetherlands 866 $5.86 moderateTurkey 806 $1.73 moderateSaudi Arabia 752 $0.03 highSwitzerland 712 $4.49 low

2030

Top 20 GDPWater Price

($/m3) Water RiskChina 32,529 $1.21 highUSA 25,458 $10.30 highIndia 6,235 $0.25 very highGermany 4,976 $10.90 moderateJapan 4,543 $2.57 moderateUK 4,441 $8.85 moderateFrance 3,035 $5.40 moderateCanada 2,656 $11.22 lowBrazil 2,391 $15.55 moderateKorea 2,382 $2.67 highAustralia 2,212 $40.58 highRussia 2,044 $5.12 lowItaly 2,015 $3.15 highIndonesia 1,941 $0.50 lowMexico 1,789 $6.14 highSpain 1,758 $4.10 highSaudi Arabia 1,324 $0.04 highTurkey 1,273 $2.44 highNetherlands 999 $32.99 highSwitzerland 977 $3.61 moderate

+158%

Water Crisis Making Headlines

In 2015, the global water crisis was cited as the number-one business risk for impact

70% of companies surveyed identify water as a substantive business risk

US-based Fortune 500 companies:Global Water Crisis impact upon

80%60%

affects their decisions on where to locate facilities

affects business growth and profitability within five years

face potential physical challenges

face reputational risks

94% 69%

Business Impact

SOURCES: World Economic Forum2013 CDP Water Report

Bridging Concern with Action: Are US Companies Prepared for Looming Water Challenges?, Pacific Institute and VOX Global 2014 survey of

US-based Fortune 500 companies62

Impacting Revenue & Profits

saw a in its California-based carrot division profits in early 2015 due in part to drought followed by intense rains

28% dropU.S. Based Food Company

Global Agriculture Producerreported a in 2014 Q4 profits as a drought in the U.S. damaged pastures used to raise beef

12% drop

North American Food Companyintroduced an on coffee packs in early 2015 to offset impact of Brazil drought

8% priceincrease estimated that

natural disasters linked to a changing climate cost the company around $400 million annually

Consumer Packaged Goods Manufacturer

Australian Agribusinessreported a 64% drop in 2014 profits due to a prolonged drought• cut grain deliveries by 23%• nearly halved grain exports

on the development of an $81 million bottling plant in Southern India in April 2015 due to resistance from local farmers who cited concerns about strains on local groundwater supplies

decided not to move forwardFortune 500 Beverage Company

Source: Ceres 201563

California’s Drought Has Led to a Water Reduction Mandate

statewide water reduction mandate for urban users by February 2016.

Water use reporting requirements will expand under the proposed emergency regulationWHAT THIS

MEANS FOR BUSINESSES:

Water suppliers will rely on both residential and non-residential user reductions to meet the standard

Regulatory and public pressure to reduce water consumption will increase

Violations will be costly

California hasimposed a 25%

64

By 2020, safely return to communities and nature an amount of water equal to what is used in finished beverages and their production

Committed to “zero-discharge” operations as a critical part of a long-term target to build a resource-saving and no-emission management enterprise

Intends to cut water use per pound of product by 20% by 2020, compared to a 2008 baseline

Cut total water intake by 30% by 2020, compared to 2010 baseline

Aims to reduce direct water withdrawal per ton of product by 40% by 2015, compared to 2005 baseline

Goal to reduce water consumption per guest night by 25% by 2020, 30% in water-stressed areas

Further reduce water consumption 20 percent per occupied room by 2020 from a 2007 baseline

Water-use-per-vehicle reduction goal of 30% from 2009 to 2015

2015 goal to improve freshwater efficiency by 5%

2020 target to reduce water intensity by 15% from 2011 levels

20% reduction in fresh water use by 2015, compared with 2006

15% improvement in water use by 2015 as compared to 2011

The Most Forward-Looking Companies Have Aggressive Water Goals

65

http://www.google.com/imgres?imgurl=http://www.jazdchemicals.com/chemyellowpages/content/download.htm?contentSetId=5736&contentId=5607&contentSetTypeId=4&pageTypeId=5&imgrefurl=http://www.jazdchemicals.com/chemyellowpages/company/Abbott-Laboratories.htm?supplierId=13653597&usg=__-rzvrc8OizHxEVX9gFWPZ9iWTgs=&h=243&w=782&sz=78&hl=en&start=11&sig2=jHLxgmp5F9t9jqMD3n3Ebg&zoom=1&tbnid=KeiDXj-fnJUIvM:&tbnh=44&tbnw=143&ei=CM9kTrXmEInH0AGOy_D_CQ&prev=/search?q=abbott+labs&um=1&hl=en&sa=N&tbm=isch&um=1&itbs=1

+=

66

Serving the World’s Most Water Intensive Industries

67

Ecolab’s Businesses Impact Our Customers’ Water Usage in Many Ways

80%

Ecolab Sales $14B2014

68

• Global Textile Care 2%

• Global Food & Beverage 12%• Global Paper 6%

• Global Water 15%

• Specialty Sector 6%

• Global Healthcare 4%

• Global Institutional 20%

30%30%

35%

5%

WATER USAGE

more than

of sales

IMPACT

Actionable quantification of water-related risks in financial termsInforms efforts to assess and manage water risk

The Solution

Potential Revenue at Risk =estimated amount and likelihood of the revenue that could potentially be lost at a facility due to the impact of water scarcity on operations

Full Value of Water (Risk-Adjusted Water Price) = monetary estimate of the full value of water at a facility level, based on what water would cost if supply and demand were accurately reflected

The Challenge

Water price does not reflect its full value

Water scarcity makes it harder to access water necessary to operate

Business Implications

Reduced profit margins

Decreased production & loss in revenue

BUSINESS OUTCOME

$

From Operations at Risk to Risk Mitigation

Introducing a New Way to Factor Water Risks into Business Decisions

70

Understandthe full value of water to your

business

Quantifywater risks in

financial terms that make

business sense

Calculatepotential revenue

at risk

First-of-its-kind Publicly available No cost

Assesswater scarcity

risks at site and/or enterprise level

Visibility into Operational Risks

Beverage plant water usage = 5,353,591

Water Cost

Risk Adjusted Water Cost

Potential Revenue at Risk

Likelihood of Revenue Loss

$

LOS ANGELES

RIO

MUMBAI$1.85

$1.11

$.17

$.31

$ $6.33

$ $5.59

$ $4.65

$ $4.79

37%

<1%

96%

17%

BEIJINGLOW

HIGH

MODERATE

MODERATE

71

Our Unique Solutions Help Businesses Reduce Water Use

Helped customers save more than

72

445 billion liters in 2014

http://www.arcelormittal.com/index.php

http://www.alcoa.com/global/en/home.asp

http://www.petrobras.com/

http://www.dow.com/

http://www.shell.us/

http://www.google.com/imgres?imgurl=http://www.jazdchemicals.com/chemyellowpages/content/download.htm?contentSetId=5736&contentId=5607&contentSetTypeId=4&pageTypeId=5&imgrefurl=http://www.jazdchemicals.com/chemyellowpages/company/Abbott-Laboratories.htm?supplierId=13653597&usg=__-rzvrc8OizHxEVX9gFWPZ9iWTgs=&h=243&w=782&sz=78&hl=en&start=11&sig2=jHLxgmp5F9t9jqMD3n3Ebg&zoom=1&tbnid=KeiDXj-fnJUIvM:&tbnh=44&tbnw=143&ei=CM9kTrXmEInH0AGOy_D_CQ&prev=/search?q=abbott+labs&um=1&hl=en&sa=N&tbm=isch&um=1&itbs=1

73

Our Unique Solutions Help Businesses Reduce Water Use

Our solutions help customers save:

of water used by a typical five-line beverage, brewing or food processing plant

of warewashing water use by restaurant customers

of a typical customer’s water consumption through the innovative wash processes

of water use by open recirculating cooling system

90%UP TO

90%UP TO

50%UP TO

30%UP TO

DryExx™

dry conveyor lubricant

Apex™

conveyor dish machine

Aquanomic™

laundry system

3D TRASAR™

cooling watertechnology

3D TRASARTM Saves Water By Optimizing Chemical Use

74

3D TRASARTM Technology saved more than 119 billion gallons of water in 2014.

3D TRASARTM Allows Many Cycles

75

Additional cycles of concentration enable additional water savings

Enabling Water Reuse

76

Impact:ArcelorMittal saved 2.2 billion gallons of water at its steel mill in Galati, Romania in 2014

Achieving water reductions: Identified undetected leaks in the cooling

system through 3D TRASAR™ Technology’s monitoring capability

Increased the cycles of concentration in the cooling tower through automated processes that maintained optimal cleaning formulas

Eliminated the need to demineralize water for continuous casting systems by switching the make-up water source to soft water

Optimized recirculation pumps by switching to a high-efficiency motor

ArcelorMittal

Enabling Water Reuse

77

Impact:GNP Company saved more than 68 million gallons of water at one plant through the use of Ecolab’s InspexxTM Inside Outside Bird Washer Water Recycling System

Achieving water reductions: US Department of Agriculture-approved

control and filtering system safely recirculates and treats water

Leverages specially formulated antimicrobial solutions

Recycled water can be reused four to five times to wash birds without compromising cleanliness

GNP Company

Helping Customers Recycle Water

78

Impact:A large food production plant reduced water use by more than 275 million gallons and reduced wastewater discharge by 95 percent to achieve its goal of dramatically reducing water use in a drought region

Achieving water reductions: Improved the quality of discharge

water by using a dissolved air flotation unit to separate and remove suspended matter from the water

Recycled the treated water as cooling tower make-up water

Large Company

HIGHER PRICES WATER RATIONING OUTCOME:

increased incentives for innovation

The Good News: Scarcity Is Driving Increased Innovation

79

REPUTATIONAL CONSIDERATIONS

REGULATORY CHANGES

80

NecessityIS THE MOTHERof Innovation

Introducing an Innovative Approach to Conservation in Minnesota

OF Minnesota Headwaters Fund in Minnesota

81

www.nature.nps.gov/ParkScience

Mississippi

River

St. Croix

River

$10Mprivately

funded investment to

SUPPORT CONSERVATION



#MNWater




Ecosystem


#MNWater

Bonnie KeelerLead Scientist, Natural Capital ProjectUniversity of [email protected]

Raj V. Rajan, PhD, PERD&E VP, Global Sustainability Technical Leader

Minnesota Water SummitSeptember 11, 2015

Water Risks and Conservation

True Cost of Water Toolkit

BEVERAGE INDUSTRY ENVIRONMENTAL ROUNDTABLE (BIER)

91

W H Y: T H E C H A L L E N G EWater is a strategic priority, but investments commonly do not meet company return on investment (ROI) rates due to only considering “cost at the tap” and not the true cost of water.

TRUE COST OF WATER

What You THINK You Pay FULL

COST

ACCOUNTING

What You ACTUALLY Pay

What You MIGHT Pay

What You COULD Pay

TOMORROWTODAY

Is the actual cost of water beyond just what we pay for it ‘at the tap’?

Transport

Treatment/

Chemicals

Heating/

Cooling

Scarcity Impacts: Financial Implications to Business

Revenue X

Cost of Goods Sold X

Operating Profit XOperating Expenses XDepreciation X

Ebit X

Interest XTax XProfit After Tax X

Water scarcity increases the cost of

water, which reduces profit

margins.

Water scarcity limits availability

of water, leading to decreased

production and loss in revenue.

REGIONSLAND USEWATERSHEDSLAKES: SWIMMING & RECREATIONSTREAMS & RIVERS: SWIMMING & RECREATIONLAKES, STREAMS & RIVERS: NITROGENLAKES, STREAMS & RIVERS : PHOSPHORUSLAKES, STREAMS & RIVERS : SEDIMENTSSTREAMS & RIVERS: AQUATIC LIFEWATER TABLES: TRENDS IN ANNUAL LOW LEVELSGROUNDWATER QUALITY: NITRATEWATER RESTORATION & PROTECTION STRATEGIES CLEAN WATER FUND PROJECTS & IMPACTS

Douglas Shaw, Assistant State Director The Nature Conservancy in Minnesota

~ 60% forested/wetland

~ 78% agriculture

Photo credit: Minnesota Pollution Control Agency, 2015

The Problem: Water Supplies at Risk

Our Water Comes From Here

INCREASED USE OF SURFACE WATER

POPULATION GROWTH

LAND USE CHANGE

CLIMATE CHANGE

96

The Problem: A Changing Landscape

The Problem: Loss of Forest = Increased Costs

For every 10% decrease in forest cover, 20% increase in treatment

costs

“Minnesota struggles to slow deforestation, protect water”Star Tribune February 1, 2015

Minnesota River Mississippi Headwaters

Photo credit: Brian Peterson, Star Tribune, 2015

/98

Watershed Benefits

Downstream Users

UpstreamConservation

Fund

The Vehicle: A Water Fund

99

The Solution: Making Wise Investments

Protect

Vigilance

Restore

Manage

/100

The Solution: Targeted Conservation in Watersheds

Rum RiverWatershed

/101

The Solution: Aligned and Targeted Public Funding

Total Costs ofNitrogen Contamination

Grey Infrastructure Natural Infrastructure

Total Costs of Prevention

Costs DiscountedThrough TargetedPublic Resources

ReducedUtility/Water User

Investment

PENTAIR

Innovating Across The Water Cycle

Minnesota Water SummitSeptember 11, 2015

PHILIP M. ROLCHIGO, PhDVice President of Technology

PENTAIR

Industry

Residential & Commercial

Agriculture

Treatment & Distribution

Well Water

Surface Water

Sea WaterSource

Water

Treated

Water

Municipal Infrastructure

Waste Water Waste Water

WaterReuse

103

Improving Quantity, Quality & Energy Efficiency … Critical to a Sustainable Future

Nature’s Hydrologic Water Cycle & The Consumptive Water Cycles Are Critically Interdependent

INNOVATING ACROSS THE WATER CYCLE

http://www.ict4us.com/mnemonics/en_rivers.htm

http://www.picsearch.com/info.cgi?q=well%20pump&id=ixpGDSAhcmgkcUo7huwZ3L6AoJWCyj-LmZFEm0Obma0&start=101&opt=&cols=4

http://www.picsearch.com/info.cgi?q=water%20treatment&id=t5Gm8KtNvTxytqB3l4DUkSYAg-tUpl6pKiQ5gjPKFVo&start=41&opt=&cols=4

PENTAIR 104

Some Examples of Our Innovative Solutions

PENTAIR

• Innovative Rainwater Reuse System Captures, Purifies & Reuses Rain Water for Washing Down the Stadium

• Reduces Municipal Water Used for These Applications by ~ 50%

• Saves ~ 2 Million Gallons of Water per Year

• Protects The Mississippi River from Storm Water Run-Off

An Innovative, Integrated Solution Required

TARGET FIELD RAINWATER REUSE TECHNOLOGY

One of The Greenest Ball Parks in America105

PENTAIR 106

TARGET FIELD RAINWATER REUSE TECHNOLOGY

Saving & Protecting One of Minnesota’s Most Precious Resources

ENTER PRESENTATION TITLE UNDER "INSERT>HEADER AND FOOTER"

UNTREATED WATER TREATED WATER

PENTAIR

INNOVATING FROM ‘TOP TO TAP’A Founding Partner of The Nature Conservancy’s Nairobi Water Fund

107

Goal of Improving Quality, Quantity and Reliability of Source Water to Nairobi• 1,600 Farmers Along Watershed Engaged in Water

and Soil Conservation to Reduce Water Use, Erosion, Run-off and Water Treatment Costs

Pentair Water Quality Monitoring

Improving & Proving The Impact of Superior Water Quality

PENTAIR 108

PENTAIR


#MNWater

WATER REUSE & RESOURCE RECOVERY

Moderator | Peter Cartwright, Cartwright Consulting

Panelist | Paul Helgeson, Golden Plump

Panelist | Bob Nordquist, Metropolitan Council

#MNWater

Industrial Waste & Pollution Prevention Section

September 11, 2015

Bob NordquistManager

• Administer EPA Approved Pretreatment Program• Protect 8 Wastewater Treatment Plants & Interceptor

System• Protect 3 Major Rivers• Protect the Health and Safety of:

– MCES Plant Operators and Interceptor Workers– City Collection System Workers– General Public

• Support the MCES Mission, Vision and Values

Industrial Waste Section Purpose

• Twin Cities Region of 2.6 Million People• 848 Total Active Permits

– 178,964 Employees at Permitted Companies– 226 Significant Industrial Users (SIUs)– 102 General Industrial Permits– 84 Liquid Waste Haulers– 104 Groundwater and Leachate Discharge Permits

• 108 Communities Connected to our System

IWPP Customers

Metropolitan Council Environmental ServicesStrategic Visioning 2013 – 2015

Mission: Provide wastewater services and integrated planning to ensure sustainable water quality and water supply for the region.

Sewer Availability Charge - SAC

•1 SAC Unit = 274 gallons/day•Based on the discharge of an average household•Based on maximum expected daily flow•2015 Rate - $2,485 / SAC Unit•SAC Wholesaler to Municipalities•Many Municipalities base their own SAC and WAC charges on MCES SAC determination

115

Sewer Availability Charge - SAC

•Residential SAC•Commercial SAC

• Square footage depending on use• Number of seats for restaurants

• Industrial SAC• Based on Expected Flows• Baseline set on Paid SAC, or Grand-Parented Levels• Reviewed in the Permit Renewal Process

116

Industrial SAC Review

• 1 Year Prior to Permit Renewal• Compare Reported Discharge to Baseline• Facilities Have 1 Year to Reduce Discharge Volume or

Make SAC Payment to their Local Community• Demonstrate Reduction by 30-day Volume Study

117

Prohibited Waste DischargesWaste Discharge Rule 406.00

• Waste Discharge Rule 406.17“…Any unpolluted water, including but not limited to…”

• Non-Contact Cooling Water• Rain/Storm/Groundwater• Water Collected from Foundation Drains or Sumps

“…unless there is no effective and practical alternative…”

118

Economic Feasibility Study

• Examples• Reuse of RO Reject Water• Reuse of Cooling Tower Bleed• Reuse of Environmental Testing Water• Use of Contaminated Groundwater Remediation Water• Elimination of One-Pass Cooling Water

119

G & K Services, St. Paul

• Industrial Laundry – Uniforms• 52,000 gallons / day of Industrial Waste• Heavy Soil Waste Stream (Washing Cycle)• Light Soil Waste Stream (Rinsing Cycle)

120

G & K Services, St. Paul

• Heavy Soil Waste Stream (Washing Cycle)• Light Colors – Fresh Water• Dark Colors – Reused Water

• Hot Water• Heat Reused

• 30% to 40% of Heavy Soil Waste Stream Reused

121

G & K Services, St. PaulNorchem Process• Solids Removed

• Trench Screens• Centrifuge• Shaker Screen• Basket Filter

• Feed Tank• Ceramic Membrane Channels

• Clean Water – To Reuse Tank• Dirty Water – Reject back to Feed Tank

122

G & K Services, St. PaulNorchem Cleaning Process• Concentration Operation

• Run at End of Day• Continuous Recirculation in Closed Loop to Remove Water

• Concentrate Tank• Oil Separation

• Ceramic Membrane Channels Cleaning• Sodium Hydroxide• Phosphoric Acid• Nitric Acid/Citric Acid

123

Other Reuse Examples

• Metal Finishing Rinse Tanks• First Flush from Blending Tanks• Produce Handlers

• Water from rinsing produce• Disinfected• Reused to grow tomatoes in high density hydroponics• Remainder to Fruit Trees• Goal of Zero-Discharge to Sewer

125

• A public/private partnership that could be a win-win-win for Council ($), Industry ($) and the environment:

– Council: • Delays need for wastewater facility

expansion• Avoids some operating costs

– Industry• Reduces or eliminates strength

charges paid to Council• Return on investment

– Environment• Reduces energy at wastewater

plants• Possibly increases energy recovery

at industries

Industrial Pretreatment Incentive Program - IPIP

Digester

Thank You

Metropolitan CouncilEnvironmental Services

Bob [email protected]

Questions?


Minnesota Water Technology SummitPaul Helgeson

September, 2015

GNP Company Water Sustainability

Efforts

Maker of these premium natural chicken brands:

DOCUMENT IS PROPRIETARY/CONFIDENTIAL AND M

AY NOT BE USED OR DISTRIBUTED WITHOUT THE EXPLICIT APPROVAL OF GNP COM

PANY. © 2014 JFC LLC.

• Overview of GNP Company• Our commitment to sustainability• Life cycle analysis • Upstream and facility water risks• Past: effluent quality• Present: water efficiency • Future: water reuse

05/03/2023

Summary of presentation

129




Founded in 1926 and family owned The Midwest’s leading provider of premium quality chicken

under the Gold’n Plump® Just BARE® Chicken brand labels Partnerships with over 350 family farmers and operations in

Minnesota and Wisconsin Headquartered in St. Cloud, Minnesota Process approximately 100 million chickens annually 2014 Sales: $457 million National distribution and competition

Company Overview




131 05/03/2023




Customer Service Excellence

Operational Low Cost

Technology/InnovationLeader

Industry Norm

Industry Leader

World-Class Performance

Consumer InsightFresh IdeasProduct, Service & SolutionsOperational Excellence & FlexibilityExecutional ExcellenceProduct QualityBrand StrengthCategory KnowledgeService Oriented PeopleCommunications

Our Strategic Priorities Add value to marketplace Know the customer/consumer Differentiation/Customization Integrated, Aligned, Engaged

Team

13205/03/2023

How We Differentiate Ourselves




Values Based Company

133 05/03/2023

STRATEGIC

PLAN

SHARED

GOALS + SUCCESS

Integrated Systems & Thinking

VOICE of our

Customers &

Consumers




Our Commitment to Sustainability

We thrive by embracing safety and balancing the need for economic Progress with the needs of our People, Planet and Poultry.




135

Life Cycle Analysis




Water Risks at GNP Company

• Upstream: water quality impacts related to feed ingredient sourcing and nutrient management of our growers. – Ensuring our growers have nutrient management plans.– Field Stewards program to support a sustainability feed

ingredient supply chain.

05/03/2023137




Water risks at GNP Company

Processing: Water quantity and performance of wells.

EffluentEfficiency Direct contact reuse

05/03/2023138




Current Wastewater FacilityConstructed in 2010, online Biological nutrient removalMembrane bioreactorUltrafiltration followed by ultraviolet disinfection and

chlorine addition




PAST: Improving EffluentWater treatment expansion, online in 2011

– Biological nutrient removal– Polymeric membranes – Ultraviolet disinfection and chlorine addition– High efficiency turbo blowers

Effluent EXCEEDS regulated standards

140 05/03/2023

Pre expansion Post expansionTSS 8 mg/l ~ 80 lbs/day <2 mg/l ~ < 10

lbs/dayBOD 6 mg/l ~ 60 lbs/day < 2mg/l ~ 1

lbs/dayPhosphorus 9 mg/l ~ 90 lbs/day .6 mg/l ~ .7 lbs/dayNitrate 10 mg/l ~

100lbs/day1 mg/l ~ 10 lbs/day




141 05/03/2023




142 05/03/2023




143 05/03/2023




144 05/03/2023




145 05/03/2023




PRESENT: Water Efficiency

Water recycling • Saved 68 million gallons with our Ecolab water reuse system.• Reconditioned water makes up almost a third of total facility

water use, 113 million gallon in 2014.– Reconditioned water used for 1st rinse of birds, as well

cooling towers.

Monthly team meetings • Review performance indicators• Discuss improvements that can help us reach our goals.

146 05/03/2023




Jan-uary

Febuary

March April May June July Aug Sept Oct. Nov. Dec. YTD Avg

0

1

2

3

4

5

6

7

Gal/Bird Gal/Bird this years goal 2014

Cold Spring Water Usage




148 05/03/2023

05-May-1521-Apr-1507-Apr-1524-Mar-1510-Mar-1524-Feb-1510-Feb-1527-Jan-1513-Jan-1529-Dec-14

7

6

5

DATE

Indi

vidu

al V

alue

_X=5.310

UCL=6.169

LCL=4.451

05-May-1521-Apr-1507-Apr-1524-Mar-1510-Mar-1524-Feb-1510-Feb-1527-Jan-1513-Jan-1529-Dec-14

1.5

1.0

0.5

0.0

DATE

Mov

ing

Rang

e

__MR=0.323

UCL=1.055

LCL=0

1

222

11

3

22

1

I-MR Chart of GAL/ BD POTABLE

Project: Untitled; Worksheet: Worksheet 1; 6/16/2015 2:04:13 PM




FUTURE: Direct Water Reuse• City of Cold Spring

– Municipal Wells/DNR issues

• GNP Company Production Wells – Depth and proximity to the Sauk River

• GNP Company Production Requirements and Planet Goals– Consistency of influent water quality – Water efficiency, 4 gallons per bird goal

• Requirements of government agencies– MN Department of Health (MDH)– USDA: Food Safety Inspection Service (FSIS)

149




Minnesota Technology CompaniesCeramic & Polymeric MembranesLiqTech

150 05/03/2023

• Minnesota manufacturing facility for ceramic membranes

HIGHEST FLUX FOR ANY MEMBRANE MATERIAL

REDUCED FOOTPRINT & SYSTEM COSTS (less pipes, valves etc.)

CHEMICALLY INERT pH 0-14

Nanostone• Manufactures both

ceramic & polymeric membranes




Submittals/Approvals

Pilot Plant Procedures Document Format Interagency review with MDH & USDA Documentation required during/following

pilot testing program Time frame MN does not have protocol for direct reuse

– How can MDH say ‘yes’ to direct water reuse?

151




Approval Pathway for Direct Water Reuse

• Interagency review with MDH & USDA– MDH defines potable standards – Validates process integrity of water technologies

• MDH does not have protocol for direct reuse– How can MDH say yes to direct water reuse?

• Engage with internal GNP Company departments – Quality Services

• Partnership with other MN companies and stakeholders– Willingness to do what it takes to get there– More support can help us achieve a more robust outcome

152




153

Paul Helgeson

Main Office: 320-251-3570Email: [email protected],

GNPCompany.com JustBareChicken.com GoldnPlump.com





154



#MNWater




Ecosystem


#MNWater

Panel: Water Technology and International Trade.

September 11, 2015

Minnesota Trade OfficeMinnesota Water Technology Summit

MINNESOTA TRADE OFFICE Department of Employment & Economic Development

Why Is International So Important?

Global water challenges and the global business opportunity go hand-in-hand

We’re already good at solving other’s problems (desal), and our leadership gives us an edge—we just jumped from 10th to 8th in exports

Consider our reputation in med devices, is water tech next?

All leads to healthy, successful companies and new investment


Governor’s International Trade Award

Criteria Generated a significant portion

of business internationally Demonstrated growth in

international business over at least the past three years, with continued likelihood of growth

Increased or maintained employment in Minnesota through the expansion of international trade activity

Developed novel ideas or approaches to doing business intern

An Honor with 30 year history


Global Trade Opportunities

Upcoming water roundtables—see your program; new ideas welcome! ANEAS in Mexico—Grant Funds for eligible companies

Listening Sessions with the UMN Institute of BioTechnology Institute—most recent on mine water; let’s do more!


Meet the Honorees

1. Richard Rankka, SJE-Rhombus2. Greg Harding, Aeration Industries3. Tom Davis, Tonka Water4. Brian LeMon, Barr Engineering5. Dave Anderson, Industrial & Environmental

Concepts

MINNESOTA TRADE OFFICE332 Minnesota Street, Suite E200

Saint Paul, MN 55101 USA

Tel (651) 259-7494 Fax (651) 296-3555Trade Assistance Help Line: (651) 259-

7498Email: [email protected]

Email [email protected]

Call Us1+218+847+1317

Visit Uswww.sjerhombus.com

• 22 Years, 35 countries • Primary focus - Latin America • Europe• [email protected]

Richard RankkaInternational Business Development Director



Call Us1+218+847+1317


40 Years Strong and Growing• Water and Wastewater Controls Manufacturer

• Industry leader since 1975• Seven locations across the United States and Asia

serving customers globally• 400 employees• 100% employee-owned• Corporate office located in Detroit Lakes, MN


Call Us1+218+847+1317


International Focus• Canada• Latin America and Europe• Asia• Africa and Middle East• Total International – 17% of sales• Total Export from USA – 11% of sales


Call Us1+218+847+1317


International Focus• Customers – Distributor, Representatives, and OEMs• Resources – Minnesota Trade Office and US Commercial Service

• Market research• Gold Key services• Trade Missions • Export Training and Networking sessions

Barr Engineering Company

resourceful. naturally.TM

who we are andwhat we do

Barr’s history

1966: incorporated; trace origins to 1912

1994: acquired A.W. Mathewsof Hibbing, MN

1996: opened office in Ann Arbor, MI,and in Duluth, MN

1998: acquired Environmental Concepts of Jefferson City, MO

2007: acquired Service Engineering Group of St. Paul and Kaeding & Associates of Minneapolis

2008: opened office in Bismarck, ND

2010: opened office in Calgary, Alberta

Barr today

• over 700 engineers, scientists, technical specialists, support staff

• employee owned

• we integrate engineering and environmental expertise to help clients develop, manage, and restore natural resources.

• Our clients’ projects take us across the Midwest, throughout the Americas, and around the world.

Barr’s services

• assessment and remediationof contaminated sites

• environmental managementand compliance assistance

• engineering and design ofstructures and processes

• water resources management and planning

some of our client sectors

• mining

• power

• natural-resource management organizations

• fuels

• manufacturing

for more information, please visit www.barr.com


#MNWater



#MNWater




Ecosystem