Ben-Gurion University Honor MBA QT.Waters Students: Elad Ilan Dorit Tamari Ehood Oron Academics advisor: Rafi Glick

The need for water The lack of fresh water Urbanization process The world's water consumption rate is doubling every 20 years, outpacing by two times the rate of population growth. It is projected that by the year 2025 water demand will exceed supply by 56%, due to persistent regional droughts, shifting of the population to urban coastal cities, and water needed for industrial growth. The supply of fresh water is on the decrease. Water demand for food, industry and people is on the rise. Lack of fresh water reduces economic development and lowers living standards. Clearly, there is a critical worldwide need to better manage this increasingly valuable resource. המחסור במים הינו אחת הבעיות החמורות ביותר שניצבות בפני מין האנושי במאה 21. נכון אמנם כי כ- 80% מפני הכדור מכוסים  מים אולם קרוב ל – 97% מהמים בעולם הם מלוחים ואינם  ניתנים לשתייה ללא תהליך התפלה. יש סבורים כי תפקיד שמילאה הנפט לכלכלה העולמית במאה ה-20 ימלאו בהכרח המים במאה ה-21. יש לזכור שכל המדינות מתפתחות ומפותחות כאחד עוברות וימשיכו לעבור במאה 21 תהליכים של עיור, ויצרכו עקב כך יותר ויותר מים ומאידך הן יתגלו מחסור תמידי הולך וגובר במקורות למים איכותיים.

Desalination methods today Thermal distillation Membrane processes water is heated, producing water vapor, which is in turn condensed to form fresh water. The water is heated to the boiling point to produce the maximum amount of water vapor. אנטיסקלנט, סתימת ממברנה. Out of all the membrane processes, the most widely used is the Reverse Osmosis (RO) method, in which, water from a pressurized saline solution is separated from the dissolved salts by flowing through a water-permeable membrane. As a portion of the water passes through the membrane (potable water), the remaining "feed water" increases in salt concentration.

The founder Dr. Gilron is a Senior Scientist at Ben Gurion University. He holds several patents in the field of desalination and his current research activities include bio fouling in membrane distillation and other desalination processes.

Flow Reversal t < τ feed water Brine Pure water

Ultrasonic Sensor (US) Detection New Technologies Ultrasonic Sensor (US) Detection Flow Reversal (FR) Onset of scaling detected via ultrasonic sensor; triggers rotation of blocks of elements between beginning and end of water process train.

What are the outcomes? Recovery only 80% without flow reversal Recovery 90% with flow reversal Assume fixed and variable pretreatment costs are $0.1/m3 feed and brine disposal costs of $1/m3 brine Then increasing recovery from 80-90% reduces cost of product water by: 0.153 USD/m3 Annual savings for a 10,000 m3/d plant= 0.153 x 350 x 10,000 = $535,000/year

Competitive advantages Higher recovery Less antiscalant needed Less energy used to rid of brine Lower cost of desalinating

Market opportunity 59% of the new plants will be membrane based Existing Market – 12,000 plants, 25% desalinating brackish water The near future: 59% of the new plants will be membrane based 2010 – 64.3M and $30B as capital investment 2015 – 97.5M and $58B as capital investment The global brackish desalination industry is set to reach 16.1 million m3/day of desalinated water in 2010 and 24.4 million by 2015. This expansion of capacity will entail capital investment totaling $7.5 billion by the end of 2010 and $14.5 billion by the end of 2015.[1] [1] GWI- Global Water Intelligence - providing analysis and strategic data on the international water market: The method of Reverse Osmosis will continue to take a bigger and bigger market share, with 59% of the total new build capacity being membrane based, and will gradually become the most widely used method of the desalination. The global desalination industry is set to reach 64.3 million m3/day of desalinated water in 2010 and 97.5 million by 2015. This expansion of capacity will entail capital investment totaling $30 billion by the end of 2010 and $58 billion by the end of 2015.[1]

Market opportunity 2015 2014 2013 2012 2011 2010 2009 2008 140 105 75 50 30 - Number of plants 28 21 15 10 6 Income* 12.6 9.5 6.8 4.5 2.7 (2) (1) (0.5) Costs* 15.4 11.5 8.2 5.5 3.3 Pretax net profit* We are expecting to penetrate with the product reaching 7%-10% from current brackish water desalination market over the first 5 years, and at least 15% of the future market. The growth is expected to be 8.68% per year.12000*1.0868^5-12000=6194 6194*0.59*0.25*0.15=137 from new plants. (0.07+0.1)/2=0.085*12000*0.25=255 from current plants. 30+50+75+105+140=400 255+137=392 almost the same. The price of a unit is to be $75,000 which consists of both software & hardware and components (valves, ultrasonic sensor, solenoids). The price for the customer will be $200,000. Costs are calculate that $75,000*1.2 (20% other costs). *Figures in $M Growth: 9% - total pretax profit = $44M Growth: 13% - total pretax profit = $51M

Patent Our product is in advanced stages of the patent registration procedure, formally submitted worldwide in December 2003 (USA, EU, Australia, India, China, etc)

Finance 1,600,000$ to R&D 1,900,000 to marketing 3,500,000$ for 60% of the company: 1,600,000$ to R&D 1,900,000 to marketing

In summary The need Desalination methods today The technologies Competitive advantages Market opportunity

Questions