Water & Wastewater Treatment Magazine
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www.wwtonline.co.uk | WWT | SEPTEMBER 2018 | 7 proven technology to the attention of util- ity clients. In this way we are also assisting our new partners and clients bear the risk of developing and deploying innovative technologies; something that will be vital given the financial pressures likely in AMP7. Among the technologies we are currently looking at is a smart chemical odour scrubbing system for wastewater applications, that may also be of value to power station operators. Another example of a technology brought to the fore by the Innovation Hub is a company offering pressure sensing hardware and systems to monitor and analyse conditions in water supply networks. Alternative Funding Models This Innovation Hub project is largely, but not exclusively, aimed at supporting water companies' response to Direct Procure- ment for Customers (DPC), a new Ofwat initiative for PR19. Under DPC water companies are expected to competitively tender services for discrete, large-scale projects with an anticipated whole-life TOTEX of more than £100 million. This differs from current procurement norms in that the tenders are expected to cover more aspects of service, for instance operations and - in a significant departure – project finance. The change is intended to deliver reduced total costs for larger capital projects, including the cost of operations and financing, over a potential 15-30-year timeframe which will span numerous price review periods. Here we are, for instance, drawing upon our extensive contacts and experi- ence in the international energy market to see if funding and delivery models for power projects can be adapted to suit DPC projects. Energy projects have proved very successful in attracting international investors, water less so; but with the need to innovate greater than ever – the time for a reappraisal is now. Our Alternative Funding Models work also includes looking into alternative delivery models, such as design, build, finance, operate and maintain (DBFOM). One of the things that sets Black & Veatch apart is the ability to support every point in the lifecycle of our clients' assets, so DBFOM is an area that is of great interest to us. Smart Maintenance With the PR19 determination likely to see customer bills reduce – and a low WACC – AMP7 CAPEX investment will need to be very carefully considered and targeted. This means the water companies will need to focus on the performance of their existing assets – to an unparalled degree – to ensure regulatory compliance, while also meeting the expectations of owners and shareholders. We have already made great inroads into digitally enabled Lean Reliability Centred Maintenance (Lean RCM) asset management programmes, most notably Workstream 69 with Yorkshire Water. The Innovation Hub is looking at ways in which these offerings may be extended and augmented; oœen looking at building upon the digital tools we have success- fully deployed. For example we are investigating the feasibility of building a digital main- tenance model for free/at cost, then charging a service fee for use; possibly sharing risk by including a gainshare element of any savings made during the lifetime of an asset. Another innovative delivery model for investigation might be taking control of pumping station assets, for example, for an extended period; and charging a service fee for building a digital analytics and control model and implementing a long-term asset manage- ment regime for each station. Alternative Ways of Working The water industry's aging workforce pro- file is a well documented challenge. The skills and mindsets the industry needs to prosper in the digital age, however, will be different to those upon which it has built such solid foundations. So another area of innovation will be looking at how to attract and retain people with these 'non-traditional' skills to build a long- term platform for innovation. To attract the talent able to offer the best for our clients, we are assessing dif- ferent ways of working and engagement. We have to offer a 'future working style' and operating model that will appeal to Generation X, Y and Z. Looking at how technology can enable remote and disperse working is part of this; but the flip side of this is how best to simultane- ously create a common culture and sense of community, engaged with the business and our clients. Among the concepts being explored are a STEM Hub, innovation centre or a start-up environment for certain teams. Not all of the concepts the Innovation Hub considers will make it to fruition. That's the point. What we have sought to do is create a nimble, agile platform to assess the viability, and client value, of multiple new ideas and technologies. The hub is a deliberate departure – allowing us to innovate on innovation.