Water. Desalination + reuse
Issue link: https://fhpublishing.uberflip.com/i/640467
BUSINESS February-March 2016 | Desalination & Water Reuse | 15 | _________ Dr Trevor Loveday, editor D&WR ___ Aquatech managing director, Devesh Sharma, tells how economic slowdown isn't necessarily reflected in water demand. And he explains how he is putting faith in technology so clients reap the benefits. WAter ScArcity iS groWing. But it's not all bad. every area of drought brings opportunities to alleviate the shortage and to build a business. And lack of water has sparked invention and created commercial openings for technologies that were once merely cool and interesting. nevertheless, while technology might be cutting edge, ground breaking or state- of-the-art, the customer wants certainty; economical and operational certainty. "Water scarcity is the driver. the big issue is in reducing the total cost of ownership while maintaining reliability – through technical innovation – then we have success. But it has to be judged on a performance basis," says managing director of industrial water purification technology firm, Aquatech, Devesh Sharma. He emphasizes the need for companies that offer advanced solutions to industries' water supply challenges to win the deal by guaranteeing the outcome, not the technology: "Aquatech has to take accountability for performance for the client to consider a new technology or a new business model," he says. Hotspots this focus on providing a performance- based offering to the customer, he says, applies irrespective of the solution on offer or the market segment in play. And the chief reason is because customers are more interested in leading the field in operational efficiency and risk reduction and less interested in pioneering the use of a new technique. "We can talk about the technology and market hotspots but let's talk about the business model hotspot which is to deliver industrial solutions on a performance basis rather than to advocate the technology," says Sharma. He adds: "if you're going to reduce the cost of desalination it's going to be through new technology. But customers are very sluggish in adopting new technology." Cool stuff and hotspots customers are still reluctant to engage on a performance basis because they feel a need to have a full understanding of the technology being used before they feel secure in engaging with it says Sharma. He cites research from market analyst, Bluetech, which indicates that the time taken to commercialize a new technology in the water industry is some 12-14 years: "not from inception but from the initial piloting to repeatable and sustainable revenue generation," Sharma emphasizes. "We have to reduce that number," he says. "if we are going to make technological strides that lead to higher performance and lower cost of ownership, it has to become easier and faster to commercialize technology in this industry." He believes customers should appraise companies on their track record in delivering reliable and cost effective solutions without overly concerning themselves with the technologies they use to achieve those results. "As a reputed company in the industry such as Aquatech, when we come to you as a client, we are going to be looking to offer a long-term relationship and we're going to offer you a competitive cost of water by using an innovative technology. "Most importantly, we are taking accountability for the performance of that technology at a defined availability and cost, for several years. you don't have to evaluate the technology, just evaluate our ability to perform; leave the details to us. this type of approach will help the industry make strides in developing innovative and valuable solutions. "the only way we're going to bring down the lifecycle cost of desalination is if we allow experts [like Aquatech] to provide performance-based contracts. And what's in it for the clients? Because we're using new technologies and we are willing to take the risk of their performance – the clients are getting a reliable water supply at an equal or lower lifecycle cost of treatment than they could accomplish themselves…all with a lot less risk." Sharma recalls a wave of offerings some 20 years ago called treated water outsourcing which he said was an early take on performance-based deals. "But really the drive for the client during that period was to take the water facility off of their balance sheet." While avoiding upfront capital cost could be a secondary advantage for the client, Sharma insists that the real advantage has to be a lower "total cost of ownership" of water facilities through the use of innovative technology and operational knowhow. "And when i say total cost of ownership i mean capital cost and normal operating costs such as labour, chemicals, and consumables. But what is more impactful in this equation is risk of operation. We see it all the time. clients putting together their spreadsheets of capital and operating costs and making assumptions of operating performance that are rarely met. "What if the membranes foul prematurely? What is the cost of that replacement? Moreover, what is the cost Sharma: "If you're going to reduce the cost of desalination it's going to be through new technology."