Water & Wastewater Asia March/April 2019

16 | MARKET REPORT
WASTEWATER REUSE
CONTINUES TO PLAY
A KEY ROLE IN WATER
STRATEGY
From breweries to tech firms, companies continue to invest in water
reuse as part of their overall water strategy. Intel is completing
a US$25 million recycling facility in Oregon, which was preceded
by its plan to return 100 per cent of its recycled water back to
communities by 2025. In this era of water scarcity and resiliency,
reclaiming wastewater for reuse may hold the key to long-term water
supply. Decentralised water and wastewater treatment will continue
to increase in importance, as utilities work with commercial property
owners to reclaim or reuse wastewater.
THE CONVERGENCE
OF INFRASTRUCTURE
PROGRESSES
Utilities are capitalising on synergies between water and energy.
Water utility Aqua America had just bought People’s Natural Gas
in a US$4.27 billion deal while natural gas utilities are also buying
up water companies. For instance, NW Natural announced its
expansion into the water utility sector last, buying small water
companies in Oregon, Idaho and Washington. This came at the
same time that Massachusetts-based gas and electric service
provider Eversource acquired Aquarion, a water utility.
RESILIENCE IS CRITICAL
FOR WATER STRATEGY
Resiliency has become a priority for utilities’ capital allocations
due to climate change; which include algae blooms to hurricanes
and drought. With these large storm events, more emphasis on
wastewater and storm water impacts on the environment are
placed. For instance, municipal water systems — from Florida to
Oregon — are experiencing greater financial burdens due to toxic
algae blooms threatening the safety of drinking water supplies.
SMART CITIES DEPLOY
NEW APPROACHES TO
ADDRESS WATER RATES,
FUND INFRASTRUCTURE
IMPROVEMENTS.
Water rates are on the rise. Across the 50 largest metropolitan
areas in the U.S., monthly water bills average US$40.35 and
monthly wastewater bills average US$56.00. Combined water
and wastewater bills have increased an average of 4.07 per cent
per year over the past five years. Cities are taking innovative
approaches to address water rates, and infrastructure funding.
Green bonds are also growing in popularity reflecting a broader
shift toward innovative water infrastructure finance.
WASTEWATER TO
BECOME A REVENUE
GENERATOR
The annual operating costs at wastewater treatment plants average
about US$151 per person served, exceeding the cost of providing
water service by five per cent. Visionary utilities are looking to
tap produced byproducts for alternative revenue streams. Usable
byproducts produced from wastewater treatment processes
include biosolids in the form of fertilisers and soil amendments,
biogas and associated heat and power products, digester capacity
for organic waste processing, reclaimed water, and synergies with
an electrical grid utilising renewable power.
About the Author:
Keith Hays is a seasoned market insight professional with over 15
years’ experience in the telecom and energy sectors as a management
consultant and industry analyst. Prior to joining Bluefield, Keith built
market insight services for Pyramid Research, Emerging Energy
Research, and IHS in the US and Europe, providing strategy guidance
to infrastructure investors, global energy companies, utilities, and
equipment manufacturers.
Mr Hays holds a BA from Columbia University in English Literature and
Hispanic Culture, and an MBA from IESE Business School. He leads
Bluefield Research’s team of water experts in Barcelona, Spain.
Water & Wastewater Asia • March / April 2019