Water Innovation Across CanadaThe Canadian Water Summit

John Neate, Senior Associate, OCETA

June 17, 2010

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Process and Methodology

Partnership with three Ontario government ministries Environment, Research and Innovation, Economic

Development and TradeMore than 100 individuals consulted

Surveys, focus groups and personal interviewsRange of water ecosystem stakeholders:

Researchers, water technology and product developers, facility owners and operators, investors and financial institutions, consulting firms, non-government organizations

Review of market strategies of leading water jurisdictions

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Global Water Opportunity

Developing segments: 16.2% CAGR

Mature segments: 3.8% CAGR

Water industry expected to reach nearly $1 trillion by 2020:

XPV's current areas of focus fall in the developing segments

$510

$864

$97

$11.8

$-

$200

$400

$600

$800

$1,000

$1,200

2007 2020

Mature segment Developing segment

Source: LUX Research, XPV Capital

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Review of Leading Water Jurisdictions

Focus on Germany, Israel and SingaporeIdentified common set of best practices:

Establish a bold vision Solve domestic needs with export potential Set measurable goals and targets Build on existing strengths Make strategic investments Create an international brand

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Ontario Water Strengths

Largest market in Canada and situated close to the US

Proven track record creating world-class water technologies and companies

Leading water organizations and research institutes located in Ontario

Access to venture capital

Policy leadership on regulations, standards, source water protection, watershed management and water efficiency

Shared responsibility for Great Lakes sustainability

Significant investment in infrastructure

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Recommendation 1

Establish a Bold Vision

By the year 2015, Ontario is recognized as a global leader and centre of expertise for providing safe, clean, affordable and

sustainable water solutions

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Recommendation 2

Create an Ontario Water Opportunity ActMain Objectives:

Promote sustainable water resources management– Positive and practical water behaviour change

Introduce transparent costing and accounting of water use– Quantify the value of water

Test and demonstrate water technologies and solutions– Address risk, market barriers and opportunity cost

Attract early stage, innovative water technology companies to Ontario– Enhance Ontario’s water innovation cluster

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Recommendation 3

Increase Alignment and CollaborationOntario government

Align programs, policies and objectives Innovation, job creation and economic development

Industry and research organizations Increase market-driven water research

Non-governmental organizations Coordinate policy research and project initiatives

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Recommendation 4

Brand Ontario as a Global Water LeaderDevelop and market Ontario as a leader in sustainable waterWithin Ontario

Change water attitudes and behaviour Create public support and political will

Outside Ontario Recognized as “commercialization hub” for water technologies Proactively promote Ontario water technology solutions in US

and select global markets

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Outcomes and Benefits

Creation of world-class Ontario water technology and service companies

Increased job creation and economic developmentAttraction of significant private sector investmentEffective mobilization of Ontario’s assets as a testing and

demonstration platformSignificant reductions in water use and energy consumption

Wealth creation AND environmental sustainability

Current Status

Water Opportunities and Water Conservation Act Introduced on May 18, 2010 1st reading in the legislature

Three main objectives:1. Make Ontario a North American leader

– Water technologies and solutions– Water Technology Acceleration Project (WaterTAP)

2. Improve municipal water infrastructure– System optimization and conservation– Demonstrate new technologies/services

3. Use water more efficiently– Residential focus– Standards, labeling, smart metering/billing

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Contact Information

Kevin JonesPresident and CEOOCETA2070 Hadwen Road, Unit 201AMississauga, ON L5K 2C9905-822-4133, ext. 232kjones@oceta.on.ca www.oceta.on.ca

David HendersonManaging DirectorXPV Capital Corporation100 Adelaide Street WestToronto, Ontario M5H 1S3416-864-0475, ext. 301david.henderson@xpvcapital.comwww.xpvcapital.com