AquaZ Presentation - Danish Water Forum
AquaZ Presentation - Danish Water Forum
AquaZ Presentation - Danish Water Forum
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Case 2: Danfoss <strong>AquaZ</strong> – <strong>Danish</strong> <strong>Water</strong> <strong>Forum</strong><br />
Danfoss <strong>AquaZ</strong><br />
• Drivers of Opportunity<br />
– Potable <strong>Water</strong> Scarcity<br />
– High <strong>Water</strong> Desalination Costs<br />
• Danfoss <strong>AquaZ</strong> Value Proposition<br />
• Our Solution:<br />
The Cost-Effective Aquaporin Membrane<br />
• The Current RO/NF Market and its<br />
Development<br />
• Key Facts<br />
• Company Development State and<br />
Future Challenges<br />
• Our Vision<br />
April 28, 2009 1
Case 2: Danfoss <strong>AquaZ</strong> – <strong>Danish</strong> <strong>Water</strong> <strong>Forum</strong><br />
The Story of Danfoss <strong>AquaZ</strong> is about<br />
• Astonishing fundamental research<br />
• Nanotechnology<br />
• Million € investments<br />
• Skunk Work<br />
• Risk of failure<br />
• Billion € gain perspectives<br />
• But initially it’s about clean water<br />
April 28, 2009 2
Case 2: Danfoss <strong>AquaZ</strong> – <strong>Danish</strong> <strong>Water</strong> <strong>Forum</strong><br />
Driver of Opportunity: Potable <strong>Water</strong> Scarcity<br />
Facts on water:<br />
• Covers ¾ of the Earth’s surface!<br />
• 3% is potable!<br />
• 25% of population have no access<br />
to satisfactory quality/quantity!<br />
• > 80 countries with severe water<br />
problems!<br />
• Worldwide drought and desertification will sharpen scarcity.<br />
• This is NOT ONLY a 3rd World problem!<br />
• According to the Worldwatch Institute, more than two-thirds of the world’s<br />
population may experience water shortages by 2025, thus affecting practically<br />
every country in the world, including the developed, unless they reduce<br />
demand and/or develop additional water sources.<br />
Source: Elsevier B.V. 2008<br />
April 28, 2009 3
Case 2: Danfoss <strong>AquaZ</strong> – <strong>Danish</strong> <strong>Water</strong> <strong>Forum</strong><br />
Driver of Opportunity: High <strong>Water</strong> Desalination Costs<br />
Specific Energy Consumption for Different <strong>Water</strong> Sources and Desalination Technologies<br />
16<br />
Ground<br />
<strong>Water</strong><br />
Brackish <strong>Water</strong><br />
Desalination<br />
Sea <strong>Water</strong><br />
Desalination<br />
14<br />
Total Specific Energy Consumption<br />
Electrical/Thermal kWh/m3<br />
12<br />
10<br />
8<br />
6<br />
4<br />
Source:<br />
Gary J. Crisp,<br />
GHD Australia,<br />
September 2008<br />
www.ghd.com.au<br />
2<br />
Thermal Processes<br />
0<br />
Conventional BWRO SWRO MED METC MSF<br />
Desalination Technology<br />
April 28, 2009 4
Case 2: Danfoss <strong>AquaZ</strong> – <strong>Danish</strong> <strong>Water</strong> <strong>Forum</strong><br />
Sea <strong>Water</strong> Reverse Osmosis Desalination Costs vs. <strong>AquaZ</strong> @ 190 k m 3 /day<br />
0,80<br />
US$ 0.74/m 3<br />
0,70<br />
0,60<br />
37% Total Cost<br />
Reduction!<br />
O&M & Total Costs US$/m 3<br />
0,50<br />
0,40<br />
0,30<br />
0,20<br />
0,10<br />
RO/Booster<br />
Pumping**<br />
33%<br />
of Total<br />
Costs!<br />
US$ 0.47/m 3<br />
Other Misc Unit Costs**<br />
Cartridge Filters<br />
Solids Disposal<br />
Labor<br />
Membrane Replacement<br />
Maintenance<br />
Chemical Costs<br />
Finished <strong>Water</strong> Pumping<br />
Permeate Lift Pumping<br />
Membrane/PX Booster Pumping<br />
Filtered <strong>Water</strong> Pumping<br />
Raw <strong>Water</strong> Pumping<br />
Other Capital Costs*<br />
Membranes<br />
Prefiltration<br />
Dewatering Equipment<br />
Instrumentation/Control<br />
Electrical<br />
Contractor Overhead & Profit<br />
Skids<br />
Contingencies<br />
Building<br />
Engineering & CM<br />
0,00<br />
RO, FilmTec SW30HR-380, 9 GFD, 50% Recovery<br />
<strong>AquaZ</strong>, 45 GFD, 85% Recovery<br />
SWRO<br />
Danfoss <strong>AquaZ</strong><br />
April 28, 2009 5
Case 2: Danfoss <strong>AquaZ</strong> – <strong>Danish</strong> <strong>Water</strong> <strong>Forum</strong><br />
Danfoss <strong>AquaZ</strong> Value Proposition<br />
• Danfoss <strong>AquaZ</strong> develops a cost-effective membrane technology, which will<br />
increase the efficiency of sea water desalination plants by 5-10 times!<br />
Conventional Plant<br />
Same Size Plant<br />
80% Smaller Plant<br />
OR<br />
Up to 70%<br />
Less Energy<br />
Up to 400%<br />
More <strong>Water</strong><br />
Same Amount of<br />
<strong>Water</strong><br />
April 28, 2009 6
Case 2: Danfoss <strong>AquaZ</strong> – <strong>Danish</strong> <strong>Water</strong> <strong>Forum</strong><br />
Our Solution: The Cost-Effective Aquaporin Membrane<br />
• The membrane purifies water through its<br />
incorporated proteins called “Aquaporins”.<br />
Aquaporins isolate water molecules based<br />
upon electrostatic physical recognition<br />
leading to production of truly pure water<br />
H 2 O !<br />
• They operate at the thermodynamically<br />
lowest energy level for purification.<br />
The purification process can be gravitydriven<br />
and may increase water throughput<br />
by 5-10 times compared to traditional state<br />
of the art desalination technologies.<br />
Polymer<br />
<strong>Water</strong> Channel<br />
Polymer<br />
Aquaporin<br />
Nano<br />
Membrane<br />
• Unlike other Aquaporin-based membrane<br />
projects Danfoss <strong>AquaZ</strong> is deeply focused on<br />
developing reliable membranes, which can<br />
be produced using industrialised scalable<br />
processes and can withstand harsh working<br />
environments.<br />
• … and we have our own GMO approved<br />
manufacturing of aquaporins…<br />
Danfoss <strong>AquaZ</strong><br />
Membrane with<br />
proprietary Nano<br />
Membrane<br />
redundancy!<br />
April 28, 2009 7
Case 2: Danfoss <strong>AquaZ</strong> – <strong>Danish</strong> <strong>Water</strong> <strong>Forum</strong><br />
The Current RO/NF Market<br />
• Danfoss <strong>AquaZ</strong> Membranes substitute current Reverse Osmosis (RO) and<br />
Nano Filters (NF).<br />
2008 World Market for Membrane Elements US$ million,<br />
Manufacturers level<br />
Market Size: 600-700 m US$; CAGR 8-16%<br />
Transmembrane pressure, dP (bar)<br />
OPERATION COST<br />
100<br />
10<br />
1<br />
Ultra pure<br />
water<br />
RO<br />
525<br />
Brackish<br />
water desalination<br />
Danfoss <strong>AquaZ</strong><br />
potential<br />
Seawater<br />
desalination<br />
Chemical<br />
& pharmaceutical<br />
NF<br />
125<br />
Fresh<br />
water<br />
Foods &<br />
beverages<br />
UF<br />
575<br />
Wastewater<br />
treatment<br />
Pathogens<br />
(bacteria &<br />
viruses)<br />
Potable<br />
water<br />
MF<br />
875<br />
0,1<br />
0,00001 0,0001 0,001 0,01 0,1 1 10<br />
Impurity size (μm)<br />
April 28, 2009 8
Case 2: Danfoss <strong>AquaZ</strong> – <strong>Danish</strong> <strong>Water</strong> <strong>Forum</strong><br />
Seawater RO Desalination<br />
• RO/NF Elements are to a large extent standardized<br />
providing a lucrative retrofit opportunity<br />
April 28, 2009 9
Case 2: Danfoss <strong>AquaZ</strong> – <strong>Danish</strong> <strong>Water</strong> <strong>Forum</strong><br />
Key facts<br />
2005 Mail from MT Technologies, USA to Jorgen Mads Clausen, Danfoss<br />
Subject: Unique business proposal<br />
– Carlo Montemagno, Dean of Engineering, University of Cincinnati<br />
– Steven Tozzi, Business Man, Serial Entrepreneur<br />
Danfoss Ventures: global market and technology investigations (IPR)<br />
2006 Danfoss <strong>AquaZ</strong> A/S established<br />
– Danfoss 51,0%<br />
– BankInvest 25,5% (BI New Energy Solutions)<br />
– MT Technologies 23,5%<br />
Subsidiary,<br />
Danfoss <strong>AquaZ</strong> Inc.,<br />
Cincinnati, Ohio<br />
HQ,<br />
Nordborg,<br />
Denmark<br />
April 28, 2009 10
Case 2: Danfoss <strong>AquaZ</strong> – <strong>Danish</strong> <strong>Water</strong> <strong>Forum</strong><br />
Senior Management<br />
• Jorgen Steen-Pedersen - President and CEO<br />
– The project is headed by Jorgen Steen-Pedersen, who<br />
leads a focused team of international researchers<br />
working on the membrane development.<br />
– Before being appointed head of Danfoss <strong>AquaZ</strong> in<br />
2006, Jorgen successfully managed various R&D- and<br />
venture departments at Danfoss.<br />
• Carlo Montemagno - Professor and Co-founder<br />
– Dean of Engineering, University of Cincinnati<br />
– Fellow of the American Academy of Nanomedicine<br />
– Recipient of the Feynman Prize for Experimental Work<br />
in Nanotechnology<br />
– Previously Chair of the Department of Bioengineering<br />
and Roy & Carol Doumani Professor of Biomedical<br />
Engineering, UCLA.<br />
– At Cornell University he served as associate professor<br />
at the Department of Biological and Environmental<br />
Engineering and as director of graduate studies in<br />
biomedical engineering<br />
April 28, 2009 11
Case 2: Danfoss <strong>AquaZ</strong> – <strong>Danish</strong> <strong>Water</strong> <strong>Forum</strong><br />
Current Investors<br />
• Founder, Carlo Montemagno<br />
– See previous slide for a biography on Carlo<br />
• Danfoss Ventures A/S<br />
– Danfoss Ventures is the corporate venture arm of the<br />
Danfoss Group.<br />
– Danfoss Ventures is a leading corporate venture investor,<br />
investing in early stage companies within <strong>Water</strong> and<br />
Energy.<br />
– The Danfoss Group is a $ 5bn+ industrial components<br />
manufacturer with acitivities in Heating, Refrigeration,<br />
Motion Controls and Mobile Hydraulics.<br />
– For more information, please visit: www.danfoss.com<br />
• BankInvest<br />
– BankInvest is a <strong>Danish</strong> venture capital firm focusing on<br />
early stage investments within Cleantech<br />
– For more information, please visit: www.biventure.com<br />
April 28, 2009 12
Case 2: Danfoss <strong>AquaZ</strong> – <strong>Danish</strong> <strong>Water</strong> <strong>Forum</strong><br />
Company Development State and Future Challenges<br />
• By 2010 a ø25 mm Danfoss <strong>AquaZ</strong> Membrane will be available for “small<br />
membrane applications” such as:<br />
Tap water filters<br />
Lifeboat/rescue kits<br />
Travel filter kits<br />
Aquarium filters etc.<br />
• To gain distribution power and increase application knowledge Danfoss<br />
<strong>AquaZ</strong> will partner with one or more major suppliers in the current RO/NF<br />
market using their current communication channels, push/pull strategies<br />
and brands.<br />
• Financial investors are invited to pursue an interesting business<br />
opportunity with Danfoss <strong>AquaZ</strong><br />
• For more information please visit: www.danfoss-aquaz.com<br />
April 28, 2009 13
Case 2: Danfoss <strong>AquaZ</strong> – <strong>Danish</strong> <strong>Water</strong> <strong>Forum</strong><br />
Our Vision<br />
Functional<br />
Ingredients<br />
[Biological Cell<br />
Wall Proteins]<br />
-Aquaporin<br />
- Bacteriorhodopsin<br />
- Cytochrome<br />
Oxidase<br />
- Na+/K+ ATPasen<br />
- β-galactoside<br />
permease<br />
- Glucose permease<br />
-Etc.<br />
Nano<br />
Membranes<br />
Primary Business Focus<br />
Energy Conversion<br />
Applications &<br />
Market Niches<br />
-RO/SWRO<br />
membranes<br />
Rescue kits<br />
- Solar Energy and<br />
Carbon Dioxide<br />
(CO²) Uptake<br />
- Controlled<br />
Medication Dosing<br />
for Bioengineered<br />
Pharmaceuticals<br />
-Etc.<br />
April 28, 2009 14
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