Massachusetts Water Innovation Sector Overview

495 MetroWest Partnership

Thursday, December 8, 2016

Michael MurphyDirector of Water Innovation

For today’s meeting…

1. MassCEC Mission2. A Brief History of MassCEC3. How MassCEC Operates 4. Programmatic Areas5. MassCEC Funding Programs6. The Massachusetts Water Industry 7. MassCEC Water Innovation Programs8. Water Tech Roadmap9. Discussion

The MassCEC Mission

Cultivate a robust marketplace for innovation in clean technologies

Build sustainable industry to create jobs, long-term economic growth

Accelerate cost reduction for clean energy technology

Support training and education to build a skilled workforce

A Brief History of MassCEC

• Electric Restructuring Act• Renewable Energy Systems Benefit charge assessed by utilities

established• Renewable Energy Trust Fund (“RET Fund”) created, administered

by Massachusetts Technology Collaborative (MTC)

• Green Jobs Act• Establishes MassCEC to accelerate job growth and economic

development in the state’s clean energy industry • Creates Massachusetts Alternative and Clean Energy Investment

Trust Fund

• Act Relative to Clean Energy• Designates control of RET Fund to MassCEC and adds to its mission

of supporting installation of renewable energy projects throughout the Commonwealth

1997

2008

2009

Renewable Energy

Generation

Investments

Innovation and Industry Support

• Support the deployment of clean technologies across the Commonwealth

• Drive down energy prices state-wide• Operate key cleantech infrastructure: WTTC,

Marine Commerce Terminal

• Provide funding (debt and equity) to companies along the entrepreneurial lifecycle to accelerate the commercialization of new technologies and attract private capital to promising companies

• Support and accelerate innovation in clean energy and water innovation technology

• Support the development of a trained and diverse workforce to meet the needs of the rapidly growing Cleantech industry

• Analyze the growth and development of the industry to ensure transparency and effective impact

5

Three Core Programmatic Divisions

Systems Benefit Charge of $0.0005/kWh(Approx $0.32/moaverage)

Renewable Energy Trust Fund

Alternative and Clean Energy

Investment Trust

Pay

$24M Annually

≥$5M/yr.

Wind Technology

Testing Center

Marine Commerce

Terminal

Renewable Energy

Generation

Innovation & Industry Support

Investments

Massachusetts’ Ratepayers

How MassCEC Operates

Incubators and Accelerators

For Massachusetts college students at Massachusetts-based clean energy companies

ØPlaced over 1,303 interns at more than 280 companiessince 2011

ØOver 96 students have gained full or part-time employment at host companies

ØRecord number nearly 200 companies, 1399 internsapplied in Summer 2015

Ø2014: Winner of CESA State Leadership in Clean Energy Award and IREC National 3iAwards State and Local Project Award

Internship Program

Inve

stm

ent S

ize

Research & Prototyping Commercialization & Growth

Catalyst Program

Up to $65K Grant

<14 Grants / Year

Equity Investments~$500K Equity Investment

1-3 Deals / Year

Venture Debt$100K - $1M Debt Investment

InnovateMassUp to $150K Grant <10 Awards / Year

DeployMassProject-dependent

Workforce Development Programs

AmplifyMass ARPA-E Match~$100K-300K

Convertible Grant

AccelerateMassUp to $150K

Convertible Grant<5 Awards / Year

Academic Collaboration & Leveraging Funding Opportunities

(excludes ARPA-E) ~10% Match

Investment Grant

Demonstration & AccelerationCompany Stage

Acceleration programs at MassCEC

Water InnovationProgramming

Why Water Tech in Massachusetts?

§ Water Technology Cluster Ø Outstanding graduate-degree programs (MIT, Tufts, UMass, WPI)Ø Thousands of employees in engineering firms (CDM Smith, AECOM)Ø Products firms (Watts, Xylem, Evoqua, GE)Ø Startups (OptiRTC, Cambrian Innovation, Oasys Water, Resolute Marine

Energy, Desalitech, Gradient Corp)Ø Competitions (MIT 100k, Imagine H20, MassChallenge, Cleantech Open

Northeast)Ø New technologies (water purification, reclamation, desalination, treatment)Ø High precedent and spirit for innovationØ New England Water Innovation Network

MWRA, Quabbin Reservoir

Mass Water Infrastructure Finance Commission 2012

Local Water Challenge: Massachusetts

Massachusetts faces a $40B funding GAP over

the next 20 years

Water-Energy Nexus

Water-Energy Nexus

§ Administration of the Water Innovation Trust§ Support the creation of testing facilities in the Commonwealth§ Support the New England Water Innovation Network (NEWIN)§ Provide opportunities for R&D in water tech § National level strategy conversation on water innovation§ Water Tech Equity Investment§ Increase focus on stormwater management § Foster international partnerships to encourage innovation

MassCEC Water Innovation

Objective: Foster economic growth in the promising water technology innovation sector in Massachusetts through programs that support the development of pilot and demonstration projects.

Water Innovation Trust Fund (H.4375)

§ Water Infrastructure Bill (Chapter 259 Acts of 2014, Section 2A, Item 2200-0236)Ø $800,000 administered by MassCEC in partnership with DEP

− Feasibility Studies at Existing and Potential Test Bed Locations ($300,000)− Wastewater Treatment Technology pilot Initiatives ($500,000)

§ Environmental Bond Bill (Chapter 286 Acts of 2014, Section 2A, Item 1100-2530)Ø Authorization of $10 million for the Trust Fund

− Testing and piloting facilities (No less than $4 million)− UMass demonstrations( $4 million)− MassCEC water innovation projects ($2 million)

17

Wastewater Treatment Plant -Innovative Technology Pilot Program

Ø Supports the piloting of innovative water technologies that increase energy efficiency, recover re-usable resources, or remove nutrients

Feasibility studies of potential test bed locations

Ø Supports the development of a water technology test facility network

Ø A robust network of test beds will:−Attract new companies and

researchers to the Commonwealth

−Advance new solutions to local water challenge

−Provide a strong foundation for innovation

− Serve existing Massachusetts-based water technology companies

MassCEC Water Innovation Programs Cont.

MWRA, Carroll Water Treatment Plant

Inve

stm

ent S

ize

Research & Prototyping Commercialization & Growth

Catalyst Program

Up to $65K Grant

<14 Grants / Year

Equity Investments~$500K Equity Investment

1-3 Deals / Year

Venture Debt$100K - $1M Debt Investment

InnovateMassUp to $150K Grant <10 Awards / Year

DeployMassProject-dependent

Workforce Development Programs

AmplifyMass ARPA-E Match~$100K-300K

Convertible Grant

AccelerateMassUp to $150K

Convertible Grant<5 Awards / Year

Academic Collaboration & Leveraging Funding Opportunities

(excludes ARPA-E) ~10% Match

Investment Grant

Demonstration & AccelerationCompany Stage

Acceleration programs at MassCEC

Water InnovationProgramming

Michael MurphyDirector of Water Innovation

MassCECCleanEnergyGroup@MassCEC

The Massachusetts Water Industry

MA Water Tech

EducationResearch

Start-Ups

ProductCompanies

Engineering& Consulting

State &Federal

GovernmentInvestors

ProfessionalServices

Advocates

IndustrialUsers

Utilities