NETS - Green Net Finland

November 2008Nordic Environmental Technology Solutions (NETS)– Commercialization of Key Business Sectors• Common challenges call for closer co-operation• Commercialization is the key• Focusing on Nordic strengthsAuthors: Päivi Saarnia and Anu Hassinen, with contributions from project partners.

PROJECT PARTICIPANTSFinlandGreen Net FinlandLauri HietaniemiManaging Director, Project LeaderSwedenEnergidalen i Sollefteå ABTord FjällströmCEOPäivi SaarniaDevelopment Manager, Project ManagerNorwayGreen Business NorwayThor Sverre MinnesjordCEORagnar EriksenMarketing ManagerDenmarkGrontmij | Carl BroSilke AlsenConsultantBaltic Sea SolutionsChristian TheelSenior AdvisorII

Title:Nordic Environmental Technology Solutions (NETS) - Commercialization of Key Business SectorsNordic Innovation Centre project number:06229Author(s):Päivi Saarnia, Anu Hassinen, with contributions from project partners.Institution(s):Green Net FinlandAbstract:Within the NICe-funded project “Nordic Environmental Technology Solutions (NETS)” new type ofnetworking at the Nordic level was organized in order to jointly exploit the rapidly growing marketpotential in the cleantech sector. The project aimed at increased commercialization of Nordic cleanenergy and clean water business segments through closer co-operation of national business networksand strengthening their capacity to plan and carry out joint Nordic actions. The visibility of Nordicenvironmental solutions was improved through focused promotional activities, including jointrepresentation in relevant trade fairs, a web platform and several joint brochures. In addition, theavailability of Nordic cleantech solutions was increased through support to companies in forming valuechains and in business-to-business (B2B) marketing.Topic/NICe Focus Area:Environmental TechnologyISSN:-Language:EnglishPages:44Key words:marketing, Nordic, environmental technology, environment, energy, water,networking, commercialisation, cleantech, clean technology, value chainDistributed by:Nordic Innovation CentreStensberggata 25NO-0170 OsloNorwayPhone: +47 - 47 61 44 00info@nordicinnovation.netwww.nordicinnovation.netContact person:Lauri Hietaniemi, Managing DirectorGreen Net FinlandPakkalankuja 5FI-01510 VANTAAFinlandMobile: + 358 40 553 2764Fax: + 358 9 8700 6333lauri.hietaniemi@greennetfinland.fiwww.greennetfinland.fiIII

eliable partners at Nordic level. Out of 870 companies contacted during the project, 86companies that were mainly SMEs actively participated in project activities, e.g., in tradefairs, web site and brochures. The impact achieved by targeted promotional activities andinvolvement of national trade promotion organizations has been significantly higher thanany individual company could achieve on its own.• It is much easier to activate the companies in building value chains in the form ofconsortium for specific international tenders than generic value chains for networkingpurposes as it is difficult for them to commit resources for something that does not providefor immediate results. Network-building is a lengthy process in which a two-year project canonly lay the foundation for interested companies to take the lead in developing it further.• It is essential that the development of the Nordic Cleantech Hub continues and the startedcooperation is further developed and strengthened. The companies that have been committedto participate in the network are waiting for continuing services. Even when the projectpartners are now well aware of challenges related to Nordic networking, including the lackof available resources, concrete plans are already under development to continue the workafter the project ends. This willingness can be seen as further proof of the added-value thatNordic level networking generates in the cleantech sector.Recommendations for continued Nordic cooperation in cleantech sector• In order to build a stronger Nordic cleantech brand, the national business networks shouldcontinue co-operation in the chosen business sectors. The project has shown that this cooperationis most effective when partners from two main responsible countries of thespecific sector take the leading role and the other partners support the activity in case theyhave own interest in promotion of the sector. Closer co-operation with the national tradepromotion organisations enables better impact and is worth further development, especiallysince these national organizations are already active in the cleantech promotion and havededicated resources for this purpose.• The national business networks should also continue supporting the companies in formingNordic consortia for tendering in international competitive biddings when the expertise ofindividual companies complements rather than competes with each other. Main focus areascould be e.g., water sector (Sweden has been earlier the driving force) and environmentalmonitoring (Norway and Finland have started preparations).• For public sector (funding) organizations, it is recommended to continue supporting thecoordination and networking activities at Nordic level. Especially SMEs clearly benefit fromthe work carried out by national network organizations. However, these organizations needextra external resources for work at the Nordic level as it is often outside their nationalmandate. It should also be noted that the public sector often has a key role in creating themarket in the environmental sector through public procurement as well as financial supportfor investments, export, research and innovation. Therefore, closer co-operation with publicsector authorities and research institutions, both at national and Nordic level, is needed.V

TABLE OF CONTENTSPREFACE ......................................................................................................................................................................... 0COMMON CHALLENGES CALL FOR CLOSER CO-OPERATION ..................................................................... 1COMMERCIALIZATION IS THE KEY ...................................................................................................................... 2FOCUSING ON NORDIC STRENGTHS...................................................................................................................... 2Building a register of Nordic cleantech companies....................................................................................... 3Analyzing the market potential...................................................................................................................... 3Choosing target segments.............................................................................................................................. 3BUILDING THE NORDIC NETWORK ....................................................................................................................... 4Putting networking theory into practice ........................................................................................................ 4Capacity-building for network engines ......................................................................................................... 5Activating companies through participatory planning .................................................................................. 6Networking in practice .................................................................................................................................. 7PROMOTING NORDIC CLEANTECH ....................................................................................................................... 8Activities in water sector pave way for future............................................................................................... 8B2B activities bring fastest results ................................................................................................................ 9Value chains for tenders offer high potential .............................................................................................. 10Joint marketing achieves greater impact ..................................................................................................... 10LESSONS LEARNED FROM NORDIC NETWORKING........................................................................................ 15Country-specific challenges can be overcome ............................................................................................ 15Networking needs trust, time and resources................................................................................................ 16Concrete results push forward ..................................................................................................................... 17Stronger support and wider participation is needed .................................................................................... 17APPENDIX 1. FOCUS AREAS..................................................................................................................................... 18APPENDIX 2. SUMMARY OF THE COPENHAGEN WORKSHOP...................................................................... 26APPENDIX 3. PARTICIPATING COMPANIES ....................................................................................................... 31APPENDIX 4. PUBLIC SECTOR AND OTHER INVOLVED ORGANIZATIONS.............................................. 34APPENDIX 5. SUMMARY OF OUTPUTS, RESULTS AND CONCLUSIONS ..................................................... 35VI

PREFACECleantech is one of the fastest growing business sectors in the world. Issues like global and localresources to solve environmental problems are discussed in every corner of the world. New andinnovative technologies are continuously developed to reduce emissions and make the use ofresources and energy more clean and efficient.Nordic countries have been reported to be the most advanced countries in the adoption ofenvironmentally friendly practices for the development of the society. Many small and mediumsizedcompanies in the area have developed world-class innovative technologies and services forsustainable growth. The physical environment in all Nordic countries and the structure of thesociety are highly similar. At the same time, on global markets, the marketing forces of individualNordic companies are often too limited. These common starting points, interests and challengeswere the main reasons for starting the NETS (Nordic Environmental Technology Solutions) projectwith the focus on strengthening the networking and cooperation among Nordic SME´s in order tobe more competitive in global environmental technology markets.Nordic collaboration with partners from Sweden, Finland, Norway and Denmark has beenestablished to activate cleantech companies in the Nordic countries for closer cooperation and forjoining forces to increase their visibility in global markets.On behalf of the partner organizations, Green Net Finland would like to thank the NordicInnovation Centre for their generous financial support. Also, we thank the national financiers andcooperation partners as well as the companies and other organizations that have contributed to thisproject.We hope that the co-operation initiated during this project will lay basis for increasing, wideningand deepening networking and will result in more innovative and globally competitive Nordiccleantech solutions.Lauri HietaniemiProject DirectorManaging DirectorGreen Net Finland0

COMMON CHALLENGES CALL FOR CLOSER CO-OPERATIONNordic know-how and the image of Nordic environmental technology are at high level. Althoughthe environmental business sector is a remarkable employer today, domestic markets in the Nordiccountries are rather small. Yet, the global market is huge, estimated being €550 billion per year withan annual growth of 5-20 per cent.On the global cleantech market, customers are increasingly demanding integrated solutions wheredifferent products and services form together comprehensive value chains that are tailor-made tofulfill the customer needs during the whole life-cycle of the product. Especially on the area ofenvironmental technology, these integrated solutions often require expertise across many sectors,including energy, water and waste. However, international customers have difficulties to findsuitable Nordic solutions for their growing needs because the industry is fragmented by providingvery specific technologies and solutions that are also often marketed by small companies withlimited resources.Most of the Nordic environmental technology companies are faced with the same barriers inentering the global markets or establishing a deal with international customers. These barriersinclude:• Products´ limited visibility for customers• Competing and winning contracts in international projects where individual companies aretoo small for larger projects• Having adequate references and showing the required company or personnel/ overheadcapacity for large projects• Lack of cash flow for projects´ co-financing demands• Limited financial capacity to assist the customer or client in implementing newenvironmental technology, e.g., through support to project planning and feasibility studies.Based on the similarity of domestic problems and markets in Nordic countries, it can be expectedthat this business area could benefit from consolidations and networking in the Nordic countries.The Nordic Innovation Centre’s pre-study (2006) on “Cooperation between EnvironmentalTechnology Networks in Nordic Countries on Export” investigated the possibility of establishingcooperation between industrial networks and companies in the Nordic countries, aiming atincreasing export of environmental technology from the countries. Also, the development ofCleantech Scandinavia for the promotion of innovations and investments in the field is a sign of theneed for closer Nordic cooperation.Therefore, the Nordic Environmental Technology Solutions (NETS) project was developed inorder to remove some of the above-mentioned barriers. The main objectives of the NETS projectwere:• To develop a platform for commercialization of at least five key business sectors in order toincrease the competitiveness of Nordic cleantech companies in the global cleantech market• To increase the availability and visibility of Nordic cleantech solutions through support toforming value chains, marketing cooperation and capacity-building of national businessnetworks.1

The main method chosen to achieve the project objectives was to develop close cooperation amongthe already existing national cleantech business networks from Finland, Sweden, Norway andDenmark. As project partners, these network organizations were responsible to activate and committhe cleantech companies to participate in the project activities. The partner organizations were alsoresponsible to seek additional national funding in each country to complement the Nordic (NICe)financing.The project partners can be seen as cluster engines in their home countries, regions or businesssectors. Green Net Finland and Green Business Norway are both representing a national network ofenvironmental technology organisations and Baltic Sea Solutions (Denmark) is a regional clusterengine. Energidalen AB (Sweden) is specialised in the promotion of bioenergy. Grontmij/CarlBrofrom Denmark as a large multinational consultancy company has in-depth expertise in value chainbuilding.COMMERCIALIZATION IS THE KEYThe challenge of increasing Nordic environmental exports requires strongly integrated co-operationbetween existing national key institutions and business networks. The specific national businessnetworks demand a multilateral “Nordic Hub” for adequate marketing and export services. This hub– in the form of Nordic marketing platform by the national key institutions – can function as agateway into and out of the region.The starting point in the NETS project was to develop coordinated commercialization activity thatshould benefit Nordic companies in:• Faster access to the regional production market• Better comparability of products• Synergy effects (faster business development: know-how in marketing, funding, venturecapital, networking, verifications and standards, quality and environmental managementsystems, eco-business effects).It was also expected that:• Potential customers are looking for total solutions for their needs rather than a separateproduct or service• The Internet, combined with language diversification, offers a good tool for accessinginternational customers / markets.• Capacity-building improves intercultural marketing and operational business capacities ofthe “Nordic Hub” (e.g., virtual networking for tendering procedures and projectimplementation).FOCUSING ON NORDIC STRENGTHSIn order to gain maximum impact from the joint efforts, the project started with an analysis ofNordic strengths in the most potential business sectors.2

Building a register of Nordic cleantech companiesTo begin with, a register, including 600 Nordic companies representing different clean energy andenergy efficiency related business areas, was collected and analyzed by the project partners in orderto identify Nordic strengths in the wide collection of different energy technologies, products andservices. The companies were then divided into 25 different energy business areas (e.g., fromenergy efficiency in transportation to turbines and generators) that were further analyzed. Specificcriteria were set up for companies in order to be included into the register, such as the level ofinternationalization. Even if the collected register might not be totally comprehensive, it gives agood overview on the Nordic strengths on these business areas and can be used for building theNordic Hub, for example, by providing contact details for partner searches.Analyzing the market potentialThe selection of the final business areas for networking and promotional activities was done byanalyzing the market potential on the basis of recent market studies available to project partners.The studies proved that although the global environmental technology market is growing in mostsectors, it depends on the specific product or business segment where the most potential market is.For example, there is demand for sludge treatment in the East and Middle Europe and, moregenerally, potential for wave energy in ocean shore countries. China offers potential for all sectorsbut especially for air and water monitoring solutions. Therefore, at the early start of the project itbecame obvious that an overall strategy cannot be designed for the “Nordic environmentaltechnology” as such but it has to focus on a specific business sector, for example, energy efficiencyof buildings. This conclusion was strengthened by companies in the Copenhagen workshop inSeptember 2007.The participating companies were contacted on their interest in expanding and exporting tocountries like China and Russia. A general perception was that these markets are not of highestpriority for most of the companies. Still, starting up in those markets through assistance fromalready established networks and / or within a consortium of partners for a combined productsolution generated more interest among the companies to enter these markets. Yet, many smallcompanies were hesitant in entering unknown markets due to cultural differences as well, and oftenthese perceived difficulties weighed over expansion needs.Choosing target segmentsBased on the market analysis, the Steering Committee chose clean (renewable) energy and watersectors as the main focus areas for long-term Nordic co-operation. Specifically, the focus areas werethe following:• clean energy:o Energy Efficiency in Buildingso Bioenergyo Solar Energyo Wind Powero Wave Energyo Waste-to-Energy• water:3

o Water Resources - groundwater/protection of catchment areaso Water Supply - securing good drinking water qualityo Capacity – how to handle with extreme urban storm water/over floodingo Waste Water Treatmento Sludge Treatment.Short introduction to these focus areas is found in Appendix 1.In the NETS project, the approach was first to develop and test the networking model in cleanenergy sector and then to apply it to the water sector. In the latter, the activities focused on sludgetreatment and environmental monitoring.BUILDING THE NORDIC NETWORKAs stated above, the main purpose of the project was to strengthen Nordic networking in order tosupport Nordic cleantech companies to increase their share of the global market. Networking wasdeveloped as a long-term activity to form a Nordic Cleantech Hub between national cleantechbusiness networks. The other dimension in networking was to develop B2B (business-to-business)opportunities for Nordic companies to find partners and build value chains.Putting networking theory into practiceNetworking accelerates know-how and increases competitiveness. Business networks have beenstudied a lot and the term “cluster” is well-known among business developers. Michael Porterintroduced the cluster theory in 1990, according to which a cluster includes also the public sectorand the national/global business environment in addition to companies. A cluster includes differentnetworks. The project’s focus areas energy and water, being (at least partially) public goods, arehighly influenced by public decision-making and thus public-private cooperation is essential.Networking of companies, NGOs, local and regional authorities and research organizations on thesesectors promotes regional well-being and global competitiveness.Business value chains typically need a “lead company”, in practice often the contractor, whocoordinates and leads the operations and is also most visible to the customer. Lead companies are invital role in forming value chains and in winning tenders. After the selection of the focus areas ofthe project and mapping of companies operating in those fields, the project partners proceeded toidentification of the lead companies in each area. These companies were the main target group ofproject activities: their interest was regarded most important to gain right from the start of theproject in order to convince SMEs to join in as well. This approach was followed by all partners andproved to be the right strategy during the project implementation.The basic forms of networks are:• Discussion forum to generate development of a special theme• Virtual network established for a special task• Value chain formed by enterprises• Marketing network.In NETS project, all these forms of networking were in use in the following activities:4

o building “a Nordic Hub”, a network of national networkso building virtual networks/ consortia for tenderso promoting the formation of B2B value chains, ando joint promotional activities.The challenge in networking is to know the networking partners both from public and privatesectors well enough to be able to define common goals and strategies. The usual barriers tonetworking are:• Incompatibility of the partners, networking organizations and their strategies andprocesses• Focusing only on internal issues• Insufficient information flow• Lack of trust• Lack of engagement• Too small resources given for the use of the network• There is no real need for cooperation as business is uphill anyhow.During the NETS project implementation, some of these barriers, especially resource constraints,had to be dealt with decisive actions.Capacity-building for network enginesTo prepare the project partners in building the network at Nordic level, an internal capacity-buildingworkshop was organized in Oslo in May 2007. The purpose of the workshop was to address keyissues on how to develop a well-driven and dynamic cluster or network, from which themembers/stakeholders can receive additional value for their own business. Therefore, the workshopaimed at giving the participants a better understanding of the mechanisms that are important forrunning a cluster or a network and a clearer view of the different challenges in the four participatingcountries. Also, an agreement was reached on common areas of interest on product portfoliomanagement (i.e., similar services to be provided to companies in each country).To guide the networking process, a generic networking model was used at the workshop (as shownbelow) to ensure that the participants were able to address and agree on the most critical aspects.With regard to organizing networking/clustering, the following criteria need to be considered:• Organisational capacity of the cluster engine must be operational (reserve resources).• The administration (organisational capacity) must have established relevant structures tooperate as cluster engine.• A methodology; how to work with the members in the cluster on 1 – 3 must be defined:5

• at cluster –individual company level,• at cluster – group of company level, and• for the cluster as a whole.After organizing the network management, a product portfolio of services must be defined, takinginto consideration the methodology mentioned above. After committing key companies in thenetwork, they will attract and invite other companies, especially SMEs, to join.Following this methodology, the leading role for each chosen business segment was assigned to themost experienced partner in order to gain maximum value from networking. It is natural that in sucha case “the network engine’s” own country comes first due to the established contacts with thebusiness sector. The leading roles for each partner are described in table 1.Table 1. Sector-specific network enginesSectorNetworkEnginePartner inthe groupBioenergy Sweden Finland,DenmarkSolar Energy Denmark NorwayWaste to energy Norway AllWind Energy Denmark NorwayWave energyNorwayEnergy efficiency FinlandDenmarkof buildingsWater Sweden AllActivating companies through participatory planningThe tentative product portfolio to be provided within the NETS project included B2B services,Export Initiatives, Innovation Management and Marketing and Promotion. The companies’expectations for the services to be derived from the project were collected in the Energy Workshopheld in September 2007 in Copenhagen. From the around 40 participants, half were companies,representing mostly SMEs from all NETS countries. Several theses about SME challenges wereaddressed by the workshop participants and feedback was structured into a summary document(Appendix 2).Response from the SMEs indicated a need for an extensive portfolio of services to be developed.Taking into consideration the timeframe of the NETS project, the portfolio was divided into shorttermand long-term services. Short-term services were considered to be services or activities theNETS project could implement within the project period, while longer term services should beconsidered in a follow-up project.One conclusion from the workshop was that SMEs with limited resources will to a large extent basetheir decisions on external input. In order to develop successful SME businesses, the workshop6

participants identified a strong demand for business intelligence. A central SME challenge is toseparate less relevant market information from highly relevant and accurate information.Furthermore, the workshop concluded that NETS role is to act as a facilitator, coordinator andinitiator. The core competence to be developed within the NETS team is to professionalize towardsthese roles. The companies also recommended that the NETS project should on case-by-case basisinvolve external expertise if the project team itself would not be able to demonstrate the necessarycompetence for the chosen portfolio of activities.Networking in practiceAltogether 870 Nordic companies were contacted by the project partners in order to introduce theNETS project and activate them to participate. Out of these, 86 companies have participated in theactivities (see Appendix 3). Among the participating companies, there are both high technologyniche SMEs and large globally operating key companies, which represents an ideal structure for acluster.In general, the feedback from contacted companies towards the project was positive. Nordic marketis often seen as “home market” and the companies saw easily the benefits of networking: gettingnew contacts and making themselves known and visible. They also saw the potential of business-tobusiness(B2B) contacts and value-chain building within the project framework. The SMEs wereparticularly interested in joint marketing activities. They admitted that their visibility grows manyfoldthrough joint marketing and that the joint promotion of “Nordic cleantech” will draw morecustomers to Nordic companies.In Finland, Green Net contacted approximately 120 companies in clean energy field to introduce theproject, out of the 180 companies in the Finnish register. 16 companies that were mostly newcontacts for Green Net decided to participate in the project, also with a financial contribution.Although initiated by NETS project, the new co-operation has been valued by the companies andsome of them have already become involved in Green Net’s other projects as well. Also, themanaging director of one company has become the chairman of the board at Green Net Finland.In Denmark, the project partners contacted about 350 companies in the energy and watertechnology sectors. NETS co-operation was introduced in detail, emphasizing its close connectionand support by the Danish Export Council, the Confederation of Danish Industries, as well as theDanish Energy Authority – the latter providing co-funding to the project. The total number ofcompanies that the NETS project has been working with in Denmark amounts to 33 companies. Ofthese, 20 companies have published their company profile via the NETS project website anddirectly benefited from further serviced offered within the project (brochure, fairs, B2B service,translation, etc.). Furthermore, several technology marketing initiatives have been contacted tocoordinate their efforts with NETS, including:• Coordination with Danish Bright Green Initiative and VE-Net (Renewable Energy, EnergyEfficiency Denmark, 2008)• Coordination with Danish initiative “World Energy Showroom” (Renewable Energy,Energy Efficiency, Denmark, 2008)• Involvement in ongoing Danish COP 15 discussions, UN Climate Change Conference(Denmark 2009).7

In Sweden, more than 150 companies were contacted and more than 50 visited in order to findsuitable forms for co-operation on a case-by-case basis. 35 companies were willing to participate inthe project, and, at the end of the project, 10 more companies were planning to join the NETS cooperation,including lead companies from different sectors in the area of energy.Photo: Networking in Practice. The Norwegian state secretary Ms. Liv Monica Stubholtfrom Department of Petroleum and Energy visited the NETS stand at WIREC 2008 inWashington, USA, and was informed about the NETS cooperation by Thor SverreMinnesjord, CEO of Green Business Norway.In Norway, existing network organizations such as GreenPartner Norway and Entech BA (beforemerging to Green Business Norway) were utilized as distribution channels to reach companies inthe environmental and renewable energy technology sectors. About 250 companies and institutionswere defined as a target group. 17 companies took part in B2B and joint marketing activities and 50companies took part in surveys on water and waste-to-energy sectors.In addition to companies and other business networks, the project co-operated with many publicsector, research and funding organizations at country-level. A list of these organizations in found inAppendix 4.PROMOTING NORDIC CLEANTECHIn addition to strengthening the co-operation of the network engines at the Nordic level, the majorfocus on the project was on promoting Nordic cleantech through joint actions and facilitating thenetworking of Nordic cleantech companies. The participating companies were offered the shorttermservices prioritized in the Copenhagen workshop: market information, value chain buildingand B2B focused joint promotional activities that are all described in more detail below.Activities in water sector pave way for future8

After the groundwork for network creation and capacity strengthening was completed on the cleanenergy sector, the Nordic networking model was replicated in the water sector.At the start, IVL, a Swedish research organization, was subcontracted in Sweden as an externalexpert to lead and coordinate the water sector activities, while in other countries the project partnerscoordinated the work themselves. A report on Nordic water sector challenges was made in order tofind long-term networking/ development needs which resulting in the selection of sludge treatmentand monitoring sectors for the focus areas. These focus areas were clarified in the Stockholm Waterworkshop in March 2008 in which 12 persons participated. On sludge treatment, the activitieswithin the project were mostly promotional activities, whereas in monitoring sector the approachwas to identify key segments and companies for potential co-operation beyond the project timeframe.A study on Nordic monitoring companies and organizations was made to get a view on Nordicstrengths especially for Chinese markets. Rapid scanning of Nordic environmental monitoringcompanies and institutions has shown that there are several enterprises active in the environmentalmonitoring field in each of the Nordic countries. It was possible to identify around 40 companiesboth in Finland and Sweden. In Norway and Denmark, the scanning resulted in around 10 majorcompanies. Based on the rapid scanning, it can be expected that with more in-depth analysis, thereare probably several smaller companies also in Norway and Denmark, as were identified in Finlandand Sweden. The study provided an overview of potential for value chain building, noting thatmany of the companies focused on consulting services that utilize environmental monitoring dataand probably conduct the sampling and measurements most often by themselves. Companies, thatprovide (only) measurement instruments and data collection and management systems, were moredifficult to find, whereas companies focusing on soil and water monitoring are plenty but lessnumerous on air quality monitoring. The study also found that the national authorities andinstitutions in the environmental monitoring field in the Nordic countries seem to be quite wellorganized which probably enhances environmental monitoring business development as well. Theresults of the study could be easily expanded into a Nordic environmental monitoring companydatabase.B2B activities bring fastest resultsCreation of B2B contacts between companies was considered an important “basic activity” in theproject in order to create added-value for companies. The NETS partners took a systematicapproach in dealing with B2B activities by:• Development of NETS B2B forms (Norway and Denmark)• Promotion of the opportunities to provide B2B services, utilizing the network engines’ nationalnetworks in all participating countries in order to have a wider outreach.A special contact form was designed by CarlBro/Grontmij for the companies to use if they search aNordic business partner. The form was tested by a couple of companies. The filled form withdefinitions on wanted partners was delivered among the network engines that in each country wereable to introduce potential partners to one another. During the project, B2B activity was mostly9

uilt between Danish and Norwegian companies by Green Business Norway and CarlBro/Grontmij.10 potential B2B cases were introduced and 3 of them are now proceeding.Value chains for tenders offer high potentialIn the water sector, 45 international tenders were scanned for further evaluation in 2007-2008 inorder to for build a consortium and prepare a commercial offer. Two consortiums with an offerwere prepared for the following tenders:• EBRD: Zagreb Holding Water and Sewer Investment Project, Croatia. ID 5698-GPN-38501• WORLD BANK: Consulting services for the projects on sustainable tourism developmentproject in Serbia-Montenegro. Identification of the alternatives for enhanced wastewatertreatment and disposal in Ulcinj and Bar and preparation of their final designs. ID P093461Joint marketing achieves greater impactThe strategy for promotion was based on both face-to-face contacts and internet. The followingprinted materials were prepared for marketing and promotion of Nordic Environmental TechnologySolutions:• Nordic Clean Technology Solutions (project introduction) (500 copies)• Nordic Energy – Clean, clever and competitive. The publication introduces 52 Nordicsolutions or initiatives and has proved to be very popular among experts and potentialcustomers. (6000 copies)• Sludge Treatment – Nordic Waste water Treatment (2000 copies)• Project posters.In co-operation with the national trade promotion organizations, these publications were widelydistributed throughout the world to potential clients. According to Finpro, that delivered 2 500copies via its country offices, these brochures turned out to be extremely popular.A joint website www.nordiccleantech.net was established by Green Net Finland with companysearch tools to introduce Nordic cleantech solutions. The site is a window to Nordic environmentalknow-how. The challenge is to involve more resources to keep the site up-dated and in continuousdevelopment. This is under discussion among Nordic organisations through, for example, partiallyintegrating the information to the new “Nordic Energy Showcase” platform coordinated by NordicEnergy Research.10

Picture: www.nordiccleantech.netThe main trade fairs and industry events where the NETS partners participated during the projecttogether with interested companies were:• Environmental Technology 2008 (Helsinki, Finland)• 3rd Nordic Sustainability Conference (Odense, Denmark, 2008)• Copenmind, (Copenhagen, Denmark 2008)• Environmental Technology & Innovation hosted by the Nordic Council of Ministers(Copenhagen, Denmark 2008)• RESTA 2008 (Building Technology, Vilnius, Lithuania)• WIREC (Renewable energy, Washington D.C., USA 2008)• Green Trade Network Summit (Santa Cruz, USA 2008)• World BioEnergy 2008 (Jönköping, Sweden)• Nordic Green Technology Conference (Palo Alto, USA, 2008)• Green Business Norway Conference 2008• Meeting Arena Environmental County Västernorrland (project) (Sweden 2008)• 16th European Biomass Conference & Exhibition. (Valencia, Spain 2008)• EU water seminar (Brussels, 2007)• Swedish Delegation to Shanghai, Nanjing and Zhongsan (2007)• International Ecological Fair POLEKO (Poznań, Poland 2007)• The 15th European Biomass Conference & Exhibition (Berlin, Germany 2007)• easyFairs INDUSTRI & MILJÖ I NORR (Sundsvall, Sweden 2007).During these events, the strong interest for Nordic Environmental Technology Solutions becameobvious. The printed materials were on high demand and attracted many visitors to start discussionson the NETS stand shown in the different locations.11

Some of the key events are described below in more detail:Environmental Technology 2008The NETS final seminar “NORDIC CLEANTECH SOLUTIONS - Future visions and tools forenergy efficiency in buildings and housing areas was organized jointly by NETS project and theFinnish Cleantech Cluster Programme in September 2008. 120 persons, including all NETSpartners and representatives from architects, construction companies, housing financiers andmunicipal planners, participated in the seminar that was organized as an official side event to theexhibition “Environmental Technology 2008” at Helsinki Fair Centre. In addition, a joint exhibitionstand was organized at the fair. As a result of the seminar and the exhibition stand, Nordic cooperationgot a lot of visibility; the NETS energy and sludge brochures were requested to be sent toDubai and India, for example.Photo: NETS final seminar at the Helsinki Fair Centre in September 2008.120 persons, including all NETS partners and representatives from architects,construction companies, housing financiers and municipal planners, participatedin the seminar.12

Photo: NETS stand at the Environmental Technology 2008 Fair in Helsinki.Co-operation between project partners: Ms. Päivi Saarnia from Green Net Finlandand Mr. Christian Theel from Baltic Sea Solutions congratulated each other onsuccessful project.RESTA 2008Green Net organized a stand at the Building Technology exhibition RESTA 2008 in Vilnius,Lithuania, in April 2008. The fair is biggest of its kind in the Baltic countries and, for the first time,energy efficiency was the main topic. RESTA was a perfect place to be visible for NETS as crowdof exhibition visitors were very willing to make contacts with Nordic companies and / or buy theirproducts. A list of potential contacts was made as a result of the exhibition. 400 energy brochureswere handed out to visitors during 4 days which means almost as many face-to-face contacts.Wirec 2008The NETS project was present at the Wirec Conference and Exibition in Washington DC in March2008. Green Business Norway organized the stand in close cooperation with Baltic Sea Solutionsand Grontmij Carl Bro. 4 companies, representing mainly geothermal and waste-to-energysolutions, were present at the exhibition.The materials used at the exhibition included on-line access to NETS web site, NETS publication,brochures from Finland, Sweden and Denmark promoting networks, showcases and companies aswell as company presentations.Results from the exhibition were as follows:• About 200 visitors where registered at the NETS stand.• 40 contacts where established for follow up, either directly as B2B connections or more longterm cooperation development.• The Norwegian state secretary Ms. Liv Monica Stubholt from Department of Petroleum andEnergy visited the NETS stand and was informed about the NETS cooperation.13

• The companies attending the exhibition emphasised the importance of NETS as a facilitator andcoordinator.• The brand “Nordic Environmental Technology Solutions” received high recognition from thevisitors.World BioEnergy 2008At the World Bioenergy Fair in Jönköping, Sweden in May 2008, Energidalen had a centrallylocated conference hall rented in direct connection with the fair area. The focus was entirely onmaking contact with new companies suitable for participating in NETS project. The conferencehall became an oasis and a hub for the NETS activities as the majority of visitors chose to get theinformation directly, producing interesting discussions. About 100 NETS brochures and other kindof marketing materials, like CDs, were distributed. All together 25 persons were approached,representing 15 companies. 13 of those qualified for the NETS contact list as bioenergy companies,which resulted in around 10 new members in the NETS network. These companies are all waitingfor the continuation of NETS project.Green Business Conference 2008Green Business Conference is the annual Green Business Norway conference, and took place April9 th , 2008. A Nordic dimension was integrated in the conference programme, presenting Swedishand Danish showcases as best practice examples for sustainable environmental technologysolutions.The Green Business Conference was a combined conference and exhibition attracting 22 exhibitors,and 140 delegates, from the Nordic countries. The delegates included 80 technology basedcompanies, 20 investment companies (banks, venture funds, private investors etc.), 20 end users,looking for new technology solutions and 20 public sector/government representatives.3rd Nordic Sustainability Conference (Odense, Denmark)The NETS project participated in the 3rd Nordic Sustainability Conference in Odense, September2008. The conference addresses both authorities as well as technologies.The conference offered an exhibition area to Danish and Nordic companies to present theirproducts. The present NETS partner made a strong effort to address further companies to participatein NETS.As a result, 5 new companies expressed their interest in participating in NETS.Poleko Fair 2007Green Business Norway and Energidalen took part in Poleko Fair November 2007. Green BusinessNorway organized the stand in close cooperation with Innovation Norway. The NETS cooperationwas promoted during the seminars and stand. A joint seminar was also held together withInnovation Norway and Clean Tech Mid-Norway presenting Norwegian solutions for the PolishMarket.14

18 Norwegian companies where present at the exhibition. All companies distributed their ownbrochures presenting their products and services. One joint brochure was made in Polish forpresenting the co-operation and participating companies. Also, advertisements were placed inexhibition catalogue and some Polish magazines.As a result of the exhibition, a contact list of potential customers with names of 250 Polishdecision-makers was collected. Later, letters with information about Norwegian companies and thebenefits of co-operating were sent to them and contacts established with several organizations. Atleast one Norwegian company has been discussing with a Polish company to become theirrepresentative on the Polish market. Moreover, encouraged with the good results, more than half ofthe participating companies were also participating in Poleko exhibition 2008. Energidalen was incontact with about 20 companies, mostly in the biomass sector.LESSONS LEARNED FROM NORDIC NETWORKINGDuring the two-year project co-operation, the project partners faced many challenges, yet achievedthe project objectives so successfully that the willingness to continue co-operation has only grownduring the process. The lessons learned from Nordic networking as described here are not sectorspecificand can easily be applied to other business areas as well.Country-specific challenges can be overcomeAt the start of the project co-operation, country-specific factors that could pose risks in expandingthe national networks to Nordic level were identified and discussed by project partners.Promoting the idea of a Nordic Environmental Technology Network was not very popular inDenmark due to experiences gained by public and especially private institutions with “Green CitiesDenmark” – a comparable network at the national level. This network had just gone bankrupt withfinancial losses to all shareholders some months before the NETS idea started to develop. Thisincident clearly caused the reluctance of companies to become active members in NETS projectwith a financial contribution or to even show interest for participating in NETS activities.Furthermore, Denmark experienced a special situation: it occurred in 2007 that Denmark wasdeclared host for COP 15, the 15 th United Nations Climate Change Conference in Copenhagen inDecember 2009. Since then, the focus on cleantech and especially on energy technology as well ason measures and tools for climate change adaptation have become of high political and commercialinterest. Not only that demonstration projects on innovative technology are boosted for showing theworld Danish technology at its best – but also marketing efforts for technologies to attract as manyfuture clients as possible have been appearing all over. This situation resulted in a heavycompetition among upcoming “Cleantech networks” to attract companies’ involvement andmembers’ fee.Taking into account the driving force of strong national companies to convince also smallercompanies about the quality of an initiative, the Danish NETS partners feel to have used the earlyhour in 2007 quite well: Vestas, Velux, Solar Cap and VE-net have seen potential in NETS andbecame members. The Bright Green Initiative offered to promote NETS through their website. Andthe Danish Energy Authority approved to support the activity financially. This is also due to the fact15

that none of these national initiatives has established a comparably strong Nordic focus as theNETS partners are already consolidating.In the NETS starting phase, Finnish environmental networking was strengthening in different partsof the country. Green Net Finland had been founded a few years ago and had an established rolealready. In its traditional business areas, such as environmental monitoring, bioenergy, wastemanagement and mining, Green Net had been working successfully in cluster development and inoffering B2B services (finding partners, building value chains, etc.). However, the activity chosenin NETS project as Green Net’s specific focus area (energy efficiency of buildings) was new toGreen Net and, thus, extra efforts were required to get the key companies committed. In any case,this choice was made strategically, as at the same time, energy efficiency in the urban environmentwas chosen to be Green Net’s second major focus area in the national cleantech cluster, for whichGreen Net is designing and implementing the programme in the Uusimaa region for years 2007-2013.Sweden started building a national clean energy network and succeeded well. They also had somekind of barriers in the beginning, as the company register of SWENTEC was already functioning.Yet, 35 Swedish companies joined NETS activities and there are 10 more expected to join in thenear future. The Swedish companies are very much waiting for B2B activities and they underlinethat as this network has been set up, it must now be further developed and taken care of.Green Business Norway instead relied on their recent member companies, though also building newcontacts. This seemed to be a good strategy to start effectively new Nordic networking activities.Green Business was able to concentrate on B2B activities perhaps quicker than other partners.Networking needs trust, time and resourcesThe project partners were also faced with some common challenges that are not country-specific butrather typical for project-based business networking:• Companies seemed not as ready as expected to utilize the project as a means to find partners andbuild value chains. 86 out of 870 contacted companies participated in the project. Competingtechnology markets in the neighbouring Nordic countries hindered free floating of technologyback and forth between the member companies. Establishing B2B contacts to build value chainswas not desired as many of the bigger companies already had established networks and smallercompanies were lacking the required references and resources. It is much easier to commit thecompanies in building value chains in the form of consortium for international tenders thangeneric value chains for marketing purposes, as it is difficult for them to commit resources forsomething that does not provide for immediate results. Network-building is a lengthy process inwhich a two-year project can only lay the foundation for interested companies to take the lead indeveloping it further. Based on the experience of project partners, the coordination of a jointNordic B2B promotion is not simple and the communication structures for such activities needfurther planning.• It is also very important to take the limited capacities into account that companies can apply forinitiatives outside their core business. The partners exchanged experiences how to inform andattract companies to the NETS network without disturbing their daily business. Therefore, shortinformation and registration forms where developed to make involvement into the NETSwebsite as time effective as possible. Still, respecting cultural differences as well as the already16

established relations with key companies that the national networks had in their home countrieswas determined to be a key factor for succeeding in attracting new companies.• Regardless of close co-operation between Nordic countries on financing environmental projects,e.g. through NEFCO, NIB and NDEP, at governmental level, there seem to be financial barriersthat also limit Nordic cooperation as these institutions/instruments tend to finance strictlynational activities rather than joint Nordic activities.Concrete results push forwardThere were many concrete results achieved during the NETS project which motivated the projectpartners and the participating companies to continue the networking activities. Some of the resultsare highlighted below and summarized in Appendix 5.• The awareness and understanding of Nordic strengths in clean energy and water businesssectors have grown both within the project network (consisting of project partners and theparticipating companies) and among wider audience, including potential internationalcustomers, as a result of closer cooperation and joint marketing activities.• The capacity of Nordic cleantech companies, especially SMEs, to cooperate at the Nordic levelhas been strengthened through coordinated support provided by the project partners (i.e., thenational business networks) at the national level. Especially smaller companies value thesupport for marketing and B2B contacts to find reliable partners at Nordic level that otherwisethey would not have the resources to undertake. It should be noted that out of 870 companiescontacted during the project, 86 companies that were mainly SMEs actively participated inproject activities, e.g., in trade fairs, web site and brochures, including some of the leadingcompanies in their fields. Marketing cooperation showed its power as the partners were able toreach far more contacts jointly than working solely by themselves.• More concrete results include the two commercial offers made by Nordic consortia forinternational water sector tenders, the three B2B contracts under preparation, successfulmarketing activities and popular promotional materials, large number of companiesparticipating in project workshops and seminars (e.g., 40 companies participated in theCopenhagen NETS workshop and 133 in the NETS final seminar “Visions for energy efficiencyin housing sector” in Helsinki).• The national export promotion organisations showed to value the project cooperation, especiallyas NETS supports their own efforts – limited by capacities – to guide international delegationsthrough the Nordic Cleantech landscape. The impact achieved by targeted promotional activitiesand involvement of national trade promotion organizations has been significantly higher thanany individual company could achieve on its own.Stronger support and wider participation is neededIt is essential that the development of the Nordic Cleantech Hub continues and the startedcooperation is further developed and strengthened. The companies that have been committed toparticipate in the network are waiting for continuing services. At the end of the project, 10 moreSwedish companies and 6 more Danish companies were planning to join the network. Even whenthe project partners are now well aware of challenges related to Nordic networking, including theavailable resources, concrete plans are already under development to continue the work after the17

project ends. This willingness can be seen as further proof of the added-value that Nordic levelnetworking generates in the cleantech sector.Based on the two-year experience of co-operation of Nordic cleantech networks, the followingrecommendations are made for further co-operation:• In order to build a stronger Nordic cleantech brand, the national business networks shouldcontinue co-operation in the chosen business sectors. The project has shown that this cooperationis most effective when partners from two main responsible countries of thespecific sector take the leading role and the other partners support the activity in case theyhave own interest in promotion of the sector. Closer co-operation in promotional activitieswith the national trade promotion organisations enables better impact and is worth furtherdevelopment, especially since these national organizations are already active in thecleantech promotion and have dedicated resources for this purpose.• The national business networks should also continue supporting the companies in formingNordic consortia for tendering in international competitive biddings when the expertise ofindividual companies complements rather than competes with each other. Main focus areascould be e.g., water sector (Sweden has been earlier the driving force) and environmentalmonitoring (Norway and Finland have started preparations).• For public sector (funding) organizations, it is recommended to continue supporting thecoordination and networking activities at Nordic level. Especially SMEs clearly benefit fromthe work carried out by national network organizations. However, these organizations needextra external resources for work at the Nordic level as it is often outside their nationalmandate. It should also be noted that the public sector often has a key role in creating themarket in the environmental sector through public procurement as well as financial supportfor investments, export, research and innovation. Therefore, closer co-operation with publicsector authorities and research institutions, both at national and Nordic level, is needed.APPENDIX 1. FOCUS AREAS18

Definition of the project’s focus area was started by analyzing the potential in environmentalbusiness and choosing the most promising business areas on the basis of Nordic know-how andmarket information of resent market studies.After the first Steering Committee held in Helsinki on January 12 th , 2007, the potential sectors werelisted and a collection of information on the companies operating on these sectors was done. Theregister of these companies include over 600 companies. The sectors are:• Transportation• Solar energy• Geothermal energy• Construction and engineering• Biogas• Biomass technology or fuel delivery• Pellet Technology• Peat• Windpower• Hydro Power• Measurement and automation• Energy efficiency of buildings • IT solutions• Waste to energy• Gasification Boilers (small)• Enrgy saving fireplaces• Boiler plants• Heating pumps• Fuel treatment, burners• Purification of exhausting gases• Expert services, project management• Electrification• Turbines, generators• Big boilers• Steam boilers• Energy plant components• Building services• Construction materials• Contracting, total solutions• Services, energy efficiency consultingBased on the analysis of, and discussions on, the sectors, priority areas were chosen, first picking up10 sectors, being:1. Urban energy efficiency2. Energy efficiency in small houses3. Energy efficiency in industry4. Energy efficiency in transporting and logistics5. Forest based bioenergy6. Agricultural bioenergy7. Wind energy19

8. Solar energy and hydrogen cells9. Hydropower10. Waste to energy solutionsThe final selection for the priority areas in NETS project was made by the Steering Committee in itsmeeting in Oslo on May 22 nd , 2007. These priority areas were:Clean Energy:• Energy Efficiency in buildings• Bio Energy• Solar Energy• Wind Power• Wave Energy• Waste to Energy• Water sector.In the water sector, the NETS activities focused on sludge treatment and environmental monitoring.Below is a brief description of these focus areas.OVERVIEW OF CLEAN ENERGY SECTORThe Nordic solutions for clean energy are based on local renewable energy resources combinedwith proven technologies and clean efficient processes. The use of local renewable resourcesincreases energy security and benefits both the environment and the local economy. In the field ofclean energy, the Nordic countries not only have similar strengths, but they also complement eachothers in many ways. Denmark is a forerunner in utilizing integrated district heating concepts andwind power technology. Finland provides a large share of the world’s wind turbine components.Sweden and Finland are strongest in utilization of bio-energy in combined heat and powerproduction, providing technological solutions from forestry machines to logistical chains and cleancombustion. Norway has in-depth expertise in hydropower and carbon capture and storage at thebottom of the sea, while Sweden has top knowledge in utilizing the energy from the seawater.Together, the Nordic countries offer top-level know-how on clean energy in many areas.According to Nordic Energy Research, the export of energy technology from the Nordic countries iscurrently worth €18-19 billion, corresponding to approximately 11 percent of the total value of EU15 member states’ energy technology export. In all Nordic countries, the export of energytechnology has increased, particularly during the last 2-3 years. Total Nordic energy technologyexport to rapidly growing economies in Brazil, Russia, India, China (BRIC) and Eastern Europe(EU-10) was approximately €2.8 billion in 2006, corresponding to 15 percent of the total Nordicenergy technology export. By comparison, energy technology export to the US was 9 percent oftotal. The Nordic energy technology export to BRIC and EU-10 increased by 14.3 percent from2005 to 2006.By utilizing the Nordic clean energy solutions, the Nordic countries are able to lead the way tocombat global climate change. By the year 2050, the Nordic countries have set themselves anambitious target of reducing green house gas emissions by 60-80% relative to 1990 levels. The20

advanced technological solutions of Nordic countries in many fields are based on close cooperationbetween the industry and the leading research organizations. This cooperation at the Nordic levelenables the Nordic countries to stay on top of the latest knowledge and turn it to new innovations.Energy Efficiency in BuildingsEnergy Efficiency of buildings refers to products, systems or technologies using less energy to dothe same or better job than conventional products, systems or technologies. Energy Efficiency savesenergy and money as well as helps to protect the environment by reducing the effects of greenhouse gases. The products include ventilation and automation systems, lightning and heatingtechnology. In the long term, low energy building concept is developed. Company groups andvalue chains formed by building companies together with niche product producers can offer totalsolutions for the customers, who can be construction companies, building contractors, private housebuilders and hardware wholesalers and stores.International, EU and national regulations increase the demand of energy efficient buildings.Building sector counts for nearly 40% of energy used in the EU. The European Union Green Paperon Energy Efficiency, adopted in June 2005, sets the goal that the European Union could make 20%savings in its energy consumption by 2020. The other EU market drivers affecting the constructionand building maintenance sectors are: The Directive on the energy performance of buildings;Cutting greenhouse gases by up to 30 % by 2020 compared to 1990 levels; Target for renewableenergy (20 per cent by 2020). In addition to the EU, there are international market drivers thatincrease the demand of energy efficient products and/or even the low energy building concept.International Energy Agency IEA says that the possibility of energy efficiency within all availabletechnologies to decrease green house gases is 58% until 2030.Solar EnergySolar energy is the most natural energy source available globally. Like other renewable energysources buying equipment is rather expensive, however, very cheap in operation compared to fossilfuel sources. The value of solar energy contribution in residential buildings is profound becauseroom heating and hot water heating account for over 75 % of the energy used in single and multifamilyhomes. Solar energy can cover up to 100 % of this demand.Solar heating equipment is used for domestic water heating with a minor part being used as acombination of room heating and hot water. In addition, solar energy is used in pools and largerplants in connection with district heating often in combination with biomass like pellets and straw.Solar heating in households can be used together with other energy sources such as oil, wood,heating pumps and electric heating.Solar cells used in production of electricity for households are entering the market with decreasingequipment prices. Solar cells are expected to play an important role internationally in future energysupply. A solar cell is an advanced semiconductor which transforms influx of light to electricity.Wind powerThe Nordic countries are among the world's leading producer of high-tech wind power systemscovering development, manufacture, sale, marketing and maintenance of wind power systems thatuse wind energy to generate electricity. Global experience and local expertise go hand in hand.21

Working relationships with turbine owners do not end with delivery. On the contrary, final deliveryof a turbine marks the beginning of close collaboration over a period of at least 20 years. Utilizationof wind power can take place both on and off shore.Waste-to-Energy solutionsAn increasing attention is paid to the resources available in waste, both the reuse of waste materials,and the energy potential. There are four key macro drivers that support the booming potential ofwaste to energy solutions:• Increasing energy demand and hence increased energy prices• Closing of landfills, turning towards recycling• Local energy control• Stricter emission controlWave energyIn the last 25 years the persistent efforts in R&D and accumulated experience has improved theperformance of wave power techniques. Today wave energy solutions are closer to commercialexploitation than ever before.BioenergyBio energy (energy from biomass and waste) is recognized as the most important amongst theRenewable Energy Sources (RES) and its potential contribution to several global policies isconsidered very high. There has been a continuous development of bio energy technologies over thelast three decades with various degrees of acceleration during certain periods in time as a reflectionof the variations in the price of oil. Climate change offers the opportunity for long lasting policiesfor a constant support of bio energy.OVERVIEW OF WATER SECTORHalf of the Earth’s available freshwater is already appropriated. Concurrent with an increase infreshwater demand, the supply of “clean” water continues to dwindle as a result of contaminationfrom pollutants. This contamination, from municipal and industrial discharges and non-point sourcerunoff affects coastal receiving waters, inland water bodies and groundwater. Every year, over 2billion people suffer from water-borne illnesses and water-related diseases account for 5 milliondeaths. Further, more than one-fifth of the world’s people do not have access to safe drinking waterand one-half of the world’s population does not have adequate sanitation and more than 30countries in Africa and Middle East have acute shortage of water. Years after adopting themillennium development goals the progress on the water sector is still very inadequate. Therefore,water quality monitoring is critical to the future health of the human population as well as the healthof the ecosystem by determining the current status of water quality conditions and helps anticipate,and hopefully avoids, future water catastrophes.There are also encouraging developments in the water sector, but much has to be done. The worldsummit in Johannesburg has headed the political agenda. There is an agreement in the internationaldiscussion regarding the central importance for water in the human development. The UN has awater agenda up to 2015. Political initiatives like G8 for Africa and the EU water initiatives express22

an increased determination of the government of the industrialized countries and developingcountries to tackle the problems together. The millennium goals, the EU countries programmes onwater and the concept Integrated Water Resources Management are the main guidelines forEuropean community.The view point and approach regarding water sector was different from that of energy sector. It wasagreed that Nordic countries traditionally have succeeded in water related business but arenowadays losing opportunities and this trend need to be changed. Past and recent experiences andstudies in the water resources sector, particularly in the water supply and sanitation sub-sector,show that a number of issues which hampered the development of the sector are still outstandingand need to be addressed immediately to avoid further widening gaps in the sector. Among themajor issues identified are the following: fragmented planning in the sector, lack of comprehensiveregulation, inadequate institutional capacity and financial constraints.The market is huge in the water sector as the demand for drinking water and sanitation is growing.In general, existing water supply systems have problems meeting the growing demand for watereven in developed countries. Some urban areas are already experiencing severe water shortages andthreatened water supply sources. Existing sanitation and sewerage services are also unsatisfactoryand inadequate to meet health and environmental standards, which eventually result in groundwaterand surface water pollution and outbreaks of epidemics of waterborne diseases.Many developing countries have problems in accessing appropriate water quality monitoringtechnologies to enable them collect the type of data which permit useful assessment, coherentenvironmental management and which can guide investment decisions. Water quality data programsare often fragmented, often collect the type of information, that does not reflect the real needs andobjectives, and are inefficient in terms of information collection, use and cost. Also conventionalwater quality monitoring methods are increasingly less suitable due to their cost and their inabilityto deliver results quickly.It has thus been identified that a key constraint on the development of the sector is the access tocapital and innovative technology. New technology solutions are very import tools for being able toreach the millennium goals. Development of cost effective small scale technologies is the righttrack. Innovative technology solutions that are easy to adapt in the developing countries and scaleconcepts are important.The challenge and also opportunities in developing the technologies are enormous and thus verypotential for the Nordic countries that could form “a silicon valley” for water technologies due tolong research experience, strong economic development and a history of entrepreneurship.The country-specific priority areas were studied in NETS resulting in:NorwayDenmark• Coastal zone water management• Measurements of water quality• Discharges of oil• Manure dispersal• Drinking water• Change in water consumption• Rain water issues23

SwedenFinland• Protection of ground water reserves• Surface water quality• Rain water issues• Waste water treatment• Water quality• Waste water treatment• Water treatment in heavy industry• Water ecosystem managementSludge treatmentDue to the physical-chemical processes involved in the treatment, the sludge tends to concentrateheavy metals and poorly biodegradable trace organic compounds as well as potentially pathogenicorganisms (viruses, bacteria etc) present in waste waters. Sludge is, however, rich in nutrients suchas nitrogen and phosphorous and contains valuable organic matter that is useful when soils aredepleted or subject to erosion. The organic matter and nutrients are the two main elements thatmake the spreading of this kind of waste on land as a fertilizer or an organic soil improver suitable.The progressive implementation of the Urban Waste Water Treatment Directive 91/271/EEC in allEU Member States is increasing the quantities of sewage sludge requiring disposal. The SewageSludge Directive 86/278/EEC seeks to encourage the use of sewage sludge in agriculture and toregulate its use in such a way as to prevent harmful effects on soil, vegetation, animals and man.Land-filling as well as incineration in some Member States are the most widely used disposaloutlets. (European Commission Environment DG, http://ec.europa.eu/environment)Sludge treatment:• Reduces organic ingredients• Removes odour• Reduces volume and weight• Improves hygiene by removing of pathogen organisms• Prepares sludge for further utilization or disposalAs VTT Technical Research Centre of Finland points out, sludge could be considered as a valuablesource for nutrient use, reuse of inorganic material, carbon upgrading processes, and energyproduction. In the Nordic countries there is a good industry base to cover the most promising recentinnovative technologies.MonitoringOne purpose of monitoring is to enable assessments of the current state of water quantity andquality and its variability in space and time. Often such assessments are appraisals of thehydrological, morphological, physicochemical, chemical, biological and/or microbiologicalconditions in relation to reference conditions, human health effects and/or the existing or planneduses of water. Such reference conditions may take into account elevated concentrations of specificdeterminants due to “natural” geophysical and geochemical processes.24

Another purpose of monitoring is to support decision-making and operational water management incritical situations. In critical hydrological situations, such as floods, ice drifts and droughts, timelyand reliable hydro-meteorological data are needed, which often requires telemetric systems totransmit data continuously. When pollution events occur, reliable data are needed, which mayrequire early warning systems to signal when critical pollution levels are exceeded or toxic effectsoccur. In these cases, models can often support decision-making.Water quantity and quality monitoring using on-line technologies combined with latest informationand communication technologies as well as so called turn-key solutions have been identified as verypromising and most relevant areas.25

APPENDIX 2. SUMMARY OF THE COPENHAGEN WORKSHOPSeptember 11 th 2007 , parallel sessionsThe summary below is based on input from all parallel sessions during the workshop. The proposals represent:1. Concrete and specific activities to be conducted, either in the NETS project or in a NETS 2 or as a separate specific spin-off with its ownad-hoc funding.2. Services to be provided either in the NETS project or in a NETS 2 projectShort term services:Longer term services:Services and/or activities to be conducted during the NETS project periodServices and/or activities to be conducted in a NETS 2 projectProposals Short Term Services Longer Term Services CommentsInnovation Management session B2B IM EXP M&P B2B IM EXP M&PProject manual on innovation management,Xbest practice examples, case studies –goodand bad examplesInnovation Management training (coursesXand programs for companies)Innovation Management mentorship onXcompany levelBusiness Dating/speed dating/match making XInnovation project dating/coupling (E-bay:Xbuy a project)Legislation lobbying and training XJoint Innovation Day in all NETS companieswhere individual companies receives ideason internal projects, projects with customerand/or NETS partnersX26

Proposals Short Term Services Longer Term Services CommentsInnovation Management sessionB2B IM EXP M&P B2B IM EXP M&Pcontinues…Database with profiles of the participatingcompaniesx x x Should NETS be responsible for the profile, orshould the companies?Collection of market information, and ax x x xsystem for sharing knowledge about goodmarket reportsInnovation Camp, dealing with a particularx xfocus e.g. how to choose 1 winner idea from101 good ideasWorkshop with companies and customersx xdiscussing current and future needsMarketing and promotion B2B IM EXP M&P B2B IM EXP M&PPrint a magazine with 60 – 100 pages, to bedistributed through trade councils, andexhibitions abroadx A magazine should be1. rather short and general, and work as an“extended” business card to attractpeople to the web site2. If a magazine is made it should be highclass and used as a gift from companiesand the trade councilsNote: The participants were in general reservedto the idea of a high quality magazine.Web site as the main marketing instrumentfor NETSx x The nets web site can be developed and adjustedto different needs and target groups, should alsocontain links to company web sitesOrganise and participate at Trade fairs x x x x It was impossible to name trade fairs that shouldbe visited. There are many target groups, Aselection has to be made at a later stagedepending on the engagement of thecompanies/or the first value chains27

Proposals Short Term Services Longer Term Services CommentsMarketing and promotion continues…. B2B IM EXP M&P B2B IM EXP M&PLobbyingx Lobbying was a service named by many• Governmentparticipants, as different legislation is one• Regional administratorsobstacle while doing business in the (Baltic Sea• Parties in target countriesRegion). Lobbying could increase government’sawareness and willingness to change.Market surveys, and common knowledgeabout target marketsEnergy Map for promotion of bestpractice/applications/production sites/projectrelated to renewable energyUN Climate Summit 2009 in Copenhagenas a window to present Nordic Cleantech tothe worldNordic Conference involving companies, thepolitical environment, research anddevelopment organisations etc. to discussNordic needs and promote Nordic solutionsx x x x There is a huge amount of information offeredalready by different export organisations. A partof a service offered by NETS could be to helpthe members to identify the relevant informationx x Energymap.dk is a google based map (anexample of what could be done on a Nordiclevel)x x x x Could be a suitable stage to present NordicCleantech to the world. Instead of going to fairsout in the world, NETS could use this high-classevent, where the world will look to Denmark.First two weeks in Dec. 2009. Ulla Röttger(participant from I/S Amagerforbrænding,Denmark) prepares a World Energy Showroomand offered cooperation. Also, a “total Nordicsolution” in form of a built house with NETStechnologieswas proposed.x x x Could be done as an alternative to participate intrade fairs28

Proposals Short Term Services Longer Term Services CommentsB2B (business to business services) B2B IM EXP M&P B2B IM EXP M&PEstablish a database for internal and externalx x X x A database should be integrated with the websitepurposeswww.nordiccleantech.netExternal purposes:1. marketing and promotion,illustrations of showcase/totalsolutionsx XInternal purposes:1. A support tool for Nordiccompanies/members to identifytechnological solutions, exchange ofknowledge2. Experience with Brussels,information about public regulationsX xEstablish a mechanism for cooperationbetween small and large companies1. Focus on partnership development(technology development andverification, market introductionetc.)2. Subcontractingx x x XFinancial engineering1. The network NETS to act asfinancial engineers in projectdevelopment and export activities onbehalf of groups of companies (3 rdparty funding)x x x X29

Proposals Short Term Services Longer Term Services CommentsB2B (business to business services) B2B IM EXP M&P B2B IM EXP M&Pcontinues..Events, conferences and workshops aiming x x x xat promotion of Green Business/Cleantechsector1. E.g. a Nordic conference involvingcompanies, the politicalenvironment, and research anddevelopment organizations/institutes–focus: Energy efficiency in citiesIndustrial Symbiosis/synergies (energy x Xproduction in Lahti as an example1. Support/develop value chains thatcreates e.g. more optimal use ofenergy, reduced energy consumptionand improved environmentalperformanceEstablish mechanisms/programs for creatingdemonstration projects for promotion oftechnology and solutions provided by Nordiccompanies/member companies• Public sector• Private sector (e.g industrialparks)Regular Match Making when membercompanies present their need to NETSproject team• Technology demand• Engineering capacity demand• Personnel/employees• Joint ventures, distributorsx x Such idea could be defined as a spin out projector a programme (long term activity includingseveral projects)x x Requests from companies could be coordinatedthrough the project team30

APPENDIX 3. PARTICIPATING COMPANIESCompany Key words Web CountryArontis solar concentrator Solar energy www.arontis.se SwedenABAgeratec AB Bioenergy, Waste to energy www.ageratec.com SwedenAbelko Innovation AB Energy efficiency of buildings www.abelko.se SwedenAquasol AB Solar energy www.aquasol.se SwedenBioprocess Control Bioenergy www.bioprocesscontrol.se SwedenSweden ABBiofuel - Solution Bioenergy Research www.biofuel-solution.com SwedenCompower AB Bio -Solar-Waste to energy www.compower.se SwedenClimateWell AB Solar, District heating, E. E. www.climatewel.com SwedenComponordic System AB Waste to energy www.componordicsystem.se SwedenEconova Energy AB Bio energy, Waste to energy www.econova.com SwedenEmotron AB E.E. , Measurement autom. www.emotron.se SwedenEcoTec värmesystem AB Bioenergy, Boilers, Burners www.ecotec.net SwedenEffpower AB Energy Storage www.effpower.com SwedenEnstar AB Many activities se web www.enstar.se SwedenFirefly AB Fire protection www.firefly.se SwedenGrabitech Solutions AB Bio energy, Waste to energy www.grabitech.se SwedenGällivare PhotoVoltaic AB Solar energy www.gpv-solar.com SwedenMinestro AB Hydro power www.minestro.com SwedenOptimation AB Many activities se web www.optimation.se SwedenPPC engineering ab Many activities se web www.ppc.se SwedenScandinavian Biogas Fuels Bio energy, Waste to energy www.scandinavianbiogas.co SwedenABmSplitvision Development Waste to energy, E. efficiency www.splitvision.se SwedenABSkyCab AB Transportation www.skycab.se SwedenSwebo Bioenergy AB Bioenergy www.swebo.com SwedenStridsberg Powertrain AB Transportation www.powertrain.se SwedenSnowpower AB Waste to energy, Construction www.snowpower.se SwedenTTM Energiprodukter AB E. effiency and services techn. www.ttmenergi.se SwedenTexsun AB Solar energy www.texsun.se SwedenUlma AB Bioenergy, Burners www.ulma.se SwedenLackebywater Group AB Water, slugde www.lackebywatar.se SwedenVilokan AB Water, cleaning www.vilokan.se SwedenMercatus AB Water, purification www.mercatus.se SwedenAriterm AB Burners, Stovers, Boilers www.thermiapellets.se SwedenMafa AB Silos www.mafa.se SwedenEnvor Biotech Waste processing www.envor.fi Finland31

Company Key words Web CountryKemira Water treatment www.kemira.com FinlandPreseco Oy Waste water www.preseco.eu FinlandWatrec Oy Waste water www.watrec.fi FinlandVTT Research www.vtt.fi FinlandSYKLI Education, consulting www.sykli.fi FinlandPöyry Environment Oy Consulting, environment & www.poyry.comFinlandinfraPöyry Building Services Consulting, Building & www.poyry.comFinlandOyconstructionBMH Technology Energy and waste www.bmh.fi FinlandPuzair/Puztec Oy Energy and Waste www.puzair.fi FinlandFidelix Oy Building Technology www.fidelix.fi FinlandEnervent Oy Building technology www.enervent.fi FinlandFCG Planeko Oy Consulting, www.fcg.fi FinlandUponorBuilding tech, plumbing, www.uponor.comFinlandheating, pipesOilon Oy Energy, burners www.oilon.com FinlandTepcomp Oy Building technology, lightning www.tepcomp.fi FinlandEcoVent ApsBuilding tech, ventilation, heat www.ecovent.dkDenmarkrecoveryCenergia EnergyEnergy www.cenergia.dk DenmarkConsultantsANS Solar Energy Solar Energy anssolarvarme.dk DenmarkIRD Fuel Cells A/S Hydro power www.ird.dk DenmarkJHM-Moldow A/S Building techniology, filters www.jhm-moldow.com DenmarkLandia A/S Water treatment equipm. www.landia.dk DenmarkSavePower A/S Energy saving products www.savepower.eu DenmarkSimon Moos Maskinfabrik Waste water treatment, sludge www.simonmoos.com DenmarkA/Sequip.SolarCAP A/S Solar Energy www.vkr-holding.com DenmarkSolarVenti A/S Solar Heating www.solarventi.dk DenmarkSOLUM Ltd. Waste treatment www.solum.com DenmarkUniTErm Solar Heating www.uniterm.dk DenmarkVELUX A/S Solar Heating www.VELUX.com DenmarkVE-Net Energy www.ve-net.eu DenmarkVestas Wind Systems A/S Wind www.vestas.com DenmarkGaia Solar A/S Solar Energy www.gaiasolar.dk DenmarkH2Logic Hydrogen www.h2logic.com DenmarkRo-Clean Desmi A/S Oil Spill response www.ro-cleandesmi.com DenmarkOwec Tower Offshore wind mill structure www.owectower.no NorwayWave Energy wave energy www.wavenergy.no NorwayLindum Ressurs og waste to energy www.lindum.no NorwayGjenvinningCambi waste to energy and water www.cambi.no Norway32

Company Key words Web CountrytreatmentBioTekwaste to energy and water www.biotek.noNorwaytreatmentGoodtech MRABwaste to energy and water www.goodtech.noNorwaytreatmentRock Energy geothermal energy www.rockenergy.no NorwayAlcym AS waste to energy www.alcym.no NorwayEcoRisk Finance AS business development www.ecoriskfinance.com NorwayAquateam water treatment expertice www.aquateam.no NorwayGeoenergi AS geothermal energy www.geoenergi.no NorwayMiljøbil Grenland AS electric vehicles www.miljobil.no NorwayMiljø-Teknologi AS odour reduction systems www.mtgruppen.no NorwaySeptik 24 water and sludge treatment www.septik24.no NorwayInfratech AS energy efficiency www.infratech.no NorwayØstlandet Plast og water treatment www.opd.no NorwayDykkservice ASIbsen Business Group AS business development www.environ-consulting.com Norway33

APPENDIX 4. PUBLIC SECTOR AND OTHER INVOLVED ORGANIZATIONSFinlandMinistry of EnvironmentTekes, the Finnish Funding Agency for Technology and InnovationNational Cleantech ClusterSitra, the Finnish Innovation FundFinproNefcoFinnish – German Chamber of CommerceVTT National Research Centre of FinlandDenmarkDanish Export CouncilDanish Ministry of Foreign AffairsConfederation of Danish IndustriesDanish Energy AuthorityDanish Agricultural CouncilTechnical University of DenmarkDanish Association of Consulting EngineersForest & Landscape Denmark, University of CopenhagenNorwayInnovation NorwayFederation of Norwegian IndustriesArena cluster programme (a cluster development programme coordinated by InnovationNorwayClean Water NorwayCleantech Mid-NorwaySwedenExportrådetSwedish Trade CouncilLänsstyrelsenVästernorrlandIVL Svenska miljöinstitutetSollefteå kommunEnergidalen34

APPENDIX 5. SUMMARY OF OUTPUTS, RESULTS AND CONCLUSIONSThe table below summarizes the main outputs and results achieved within the project.Outputs Results Conclusions• 86 companies involved andmore interested• Contact lists of 600companies made• 10 potential B2B casespromoted and 2 consortiabuilt for tenders• Common brochuresprepared and delivered tocustomers, CommonWebsite built• Seminars: approx. 300seminar participants todiscuss Nordic cooperation• Exhibitions: worldwidecontacts (USA: BalticStates, China, Spain,Germany...)• Awareness andunderstanding of Nordicstrengths in clean energyand water sector has grown• Nordic level clustering andB2B activity have beentested and proved to bepossible and potential• Marketing cooperation hasbeen effective and visibilityof Nordic solutions hasincreased• Interest inNordic B2Bcooperation hasincreased• B2B activitiesneed a lot ofefforts,resources andeffectivecommunicationstructures• Willingness toNordicexperienceexchange hasincreased• Commonmarketing needsa lot ofresources,cooperation withNational exportorganisations isessential• Networking canbe made inseveral businessareas, also otherthan the chosenfocus sectors35

Nordic Innovation CentreThe Nordic Innovation Centre initiates and financesactivities that enhance innovation collaboration anddevelop and maintain a smoothly functioning market inthe Nordic region.The Centre works primarily with small and mediumsizedcompanies (SMEs) in the Nordic countries. Otherimportant partners are those most closely involved withinnovation and market surveillance, such as industrialorganisations and interest groups, research institutionsand public authorities.The Nordic Innovation Centre is an institution under theNordic Council of Ministers. Its secretariat is in Oslo.For more information: www.nordicinnovation.netNordic Innovation CentreStensberggata 25NO-0170 OsloNorwayPhone: +47-47 61 44 00Fax: +47-22 56 55 65info@nordicinnovation.netwww.nordicinnovation.net