water reuse market in us · global market size and characteristics. 720.4 billion usd. source....

| Document Number | October 4, 2019 | © Yokogawa Electric Corporation

東大水フォーラムワークショップ「世界の水マーケットの動向」

松井康弘横河電機株式会社マーケティング本部イノベーションセンター研究開発部マネージャー

2019年10月4日

1

Topics Company Profile, Yokogawa Electric Corporation Global Water Market Trends Water Reuse Market in US


2

Yokogawa Electric Corporate

Through “Process Co-Innovation,” Yokogawa creates new value with our clients for a brighter future.

Yokogawa Electric Corporation

September 1, 1915

December 1, 1920

43.4 billion yen

403.7 billion yen (consolidated)



Company Name

Founded

Incorporated

Paid-in Capital

Sales

Operating Income

Ordinary Income

Profit Attributable toOwners of Parent

R&D Investment/Sales

Number of Employees

Capital Ratio

6.5 %17,848

61.7 %


(Results of fiscal year 2018)


Yokogawa Employees Worldwide

3

17,848Worldwide

Outside Japanbreakdown

North & South Americas 1,154

Middle East & Africa 939

Asia & Oceania 6,762

Europe, Russia & CIS 2,508

Yokogawa ElectricCorporation

2,574Group companies in Japan

3,911

Group companies outside Japan

11,363（As of March 31, 2019）


Worldwide Business Operations

4

Global network supporting business growth

World HeadquartersYokogawa Electric Corporation

(Japan)

Yokogawa Corporation of America（USA）

Yokogawa China（China）

Yokogawa Middle East & Africa

（Bahrain）

Yokogawa Europe（The Netherlands）

Yokogawa Electric InternationalYokogawa Engineering Asia

（Singapore）

Yokogawa Electric CIS（Russia）

Yokogawa Americado Sul

（Brazil）

Yokogawa Electric Korea（Korea）

Yokogawa India（India）

12 offices in Japan 100 offices outside Japan

（As of March 31, 2019）

Subsidiaries and Affiliates


Manufacturing Organization

5

Our manufacturing operations span 13 countriesThe NetherlandsAnalytical instruments

GermanyField instruments

United StatesField instruments, analytical instruments

RussiaField instruments

KomineAnalytical instrumentsKofu

Field instruments Measuring instruments Analytical instruments

KanazawaLife science-related equipment

Main factories in Japan

KomaganeSilicon sensors

BrazilField instruments

China (Shanghai)Field instruments

China (Suzhou)Field instruments,meters

China (Sichuan)Field instruments

IndiaField instruments

Singapore/IndonesiaControl systems, analytical instruments, measuring instruments, field instruments, aviation instruments

BahrainField instruments

（As of March 31, 2019）

KoreaControllers,measuring instruments

Saudi ArabiaField instruments

KanazawaLife science-related equipment


Consolidated Sales and Operating Income

6

388.5 405.8 413.7

391.4 406.6 403.7

25.9 29.8 39.6 31.6 32.7 34.6

66.869.3 69.3

67.3 67.9 68.3

0

100

200

300

400

500

FY2013 FY2014 FY2015 FY2016 FY2017 FY2018

Sales Operating Income Overseas sales ratio(%)Aviation and Other Businesses 4.0%

Industrial Automation and Control Business90.3%

Test and Measurement Business5.7%

Japan 128.1

South and Central America8.3

Middle East, Africa 49.8

Unit: Billion yen

*The figures are rounded to the nearest 100 million yen.

Net sales by segment

Net sales by region

（Billion yen）

Southeast Asia,Far East 72.6

All Europe34.2

(Results of fiscal year 2018)China 47.0

India 13.8

Russia18.1

North America31.8


Services Anywhere - global reach, local delivery

7

Service OfficeResponse Center (RC)

Network

Regional Response Centers

Security Operation Center Security Competence Laboratory

230 service offices in 80 countries2,000 service engineers

The Netherlands China Korea USA India Singapore BrazilRussia

（As of April 1, 2019）

Bahrain


Global Water Market Trends

8

EnergyWaterFood

World populationexplosion

Globalization

Climate change

Non predictablevolatility

Lack of resources

Technological innovation


9

Global Market Size and Characteristics

720.4 Billion USD

SourceGlobal Water Market 2017 (GWI)

※Waste Water treatment includes “reuse”SourceGlobal Water Market 2017 (GWI), Global Market 2018 (GWI), Water’s Digital Future (GWI)

573.1 Billion USD


10

Water & Waste Water Market Size 2016 & 2025


Asia PacificMajor Countries

Regional Characteristics


Project priority in global water market

11

Resource & material price fluctuation

Business continuity& optimizationin supply chain Digital transformation

Competitive dynamicsEnvironment & safety regulation Changing workforce

Market Size USD m3/day

Stra

tegi

c Sc

ore


Source Water Seawater to Wastewater

12


Capital Cost for Planned Reuse Projects by US application

SourceNational Academy of Sciences (Bluefield Research)

SourceExpert Panel Final Report(California State Water Resources Control Board)

Municipal Water Reuse vs Brackish/Seawater Desalination

Water reuse solutions are not just more cost-effective and energy-efficient alternatives to desalination, but are much more practical and justifiable once drought conditions recede.

SourceFramework for Direct Potable Reuse (WateReuse)

Comparative Energy Requirements

Potable Reuse Treatment Trains

Water Reuse Market in U.S.

Information Source: Bluefield Research (2017)Focus Report, U.S. Municipal Water Reuse: Opportunities, Outlook, & Competitive Landscape 2017-2027

13

Population Growth Drives Increasing Demand for Reuse

• The U.S population is expected to grow 18% between 2015 and 2040.

Forecasted Population GrowthBy State governments & Bluefield Research

14

Drought Drives Need for New Water Supplies

• Climate change is expected to increase the likelihood of drought events.

• Decreased precipitation, increased evapotranspiration and increased demand related to population and economic growth.Water Reuse is one in a portfolio of solutions to water shortages.

Water Supply Sustainability Index (2050)

Natural resources Defense Council & Bluefield Research

15

Summary of Water Reuse Trends

Municipal wastewater reuse in U.S.The current reuse capacity of 18.2 million m3/d, 35% of the global total.Expected to increase by 37% with 6.7 million m3/d through 2027.Potable reuse capacity increases 2.2 million m3/d from 2017 to 2027.California & Florida & Texas represent 80%, 5.4 million m3/d, of total forecasted capacity additions through 2027.

Potable vs. Non-Potablethrough 2027

Capacity Additions 16

Water Reuse in California

The State Water Board adopted the amendment to the recycled water policy (SWRCB, 2013).

Increase the use of recycled water over 2002 ・by at least 3.3 million m3/d 2020 ・by at least 6.6 million m3/d by 2030.Los Angeles’ Green New Deal (April 29th, 2019) sets aggressive goals :

recycling 100% of our wastewater by 2035.Sources:Recycled Water Policy (SWRCB, 2013)https://www.waterboards.ca.gov/board_decisions/adopted_orders/resolutions/2013/rs2013_0003_a.pdf

Mayor Garcetti launches L.A.’s Green New Deal (2019)https://www.lamayor.org/mayor-garcetti-launches-la%E2%80%99s-green-new-deal

Regulations for Indirect Potable Reuse (IPR) & Direct Potable Reuse (DPR) IPR by Groundwater Augmentation Regulation (2014) IPR by Surface Water Augmentation (2016) DPR by Raw Water Augmentation Regulation (until end of 2023)

17

Brief Note of Orange County Water District (OCWD)

Seawater intrusion threat since the early 1900sIn 1965, OCWD injected imported water into the groundwater basin

Water Reuse start In 1975, Water Factory 21 used reverse osmosis to purify wastewater.

In 2008, the world’s largest advanced water purification plant to supplement drinking water supplies began operation.

Los Angeles

Orange CountySourcehttps://www.ocwd.com/about/history/

18

Potable Reuse Heightens Demands for Advanced Treatment Technologies

Orange County Groundwater Recharge ProjectThe 379,000 m3/d built in 2008

the largest potable reuse project in the U.S. Key example for the development of addition IPR projects across U.S.

Expands capacity of 492,000 m3/d until 2023.

Potable reuse treatment trains

& Operation costs

19

20

For IPR using groundwater replenishment and surface water augmentation, the State Water Board developed minimum LRV requirements for target pathogen groups (i.e. enteric viruses and parasites).The LRV requirement were determined using following assumptions:

The tolerable annual risk of infection is 10-4 per person per yearThe necessary treatment for the worst-case exposure scenario for microbial infection

California Log10 Reduction ValuesWater Recycling Criteria, Title 22, Division 4, Chapter 3, California Code of regulations

21

Required Log10 Reduction Values as Determined by the State of California (CCR, 2015)

Parameter Viruses Giardia Cryptosporidium

Maximum concentration in finished water (infectious units/L)

2.2 × 10−7 6.8 × 10−6 3 × 10−5

Maximum concentration in raw wastewater (infectious units/L)

105 105 105

Removal requirements 4.6 × 1011 1.5 × 1010 3.3 × 109

Log10 removal requirements 11.7 10.2 9.5

Proposed log10 requirement 12 10 10

Log Removal Value Allocation - California

Process Monitoring Virus Giardia Crypto

Primary WW Turbidity, Suspended Solids, TOC 0 0 0

Secondary WW Ammonia, Phosphorus, Oxygen Demand, TOC 0 0 0

Ozone (CT = 1 mg*min/L minimum) Ozone residual, UVT, fluorescence 5 3 0

Biologically Active Filtration BDOC or AOC reducation, ATP 0 0 0

Microfiltration Daily PDT 0 4 4Ultrafiltration Daily PDT 1 4 4

Reverse Osmosis Electrical condutivity, TOC 1.5-2.0 1.5 1.5

UV UV fluence 6 6 6

Free Chlorine (CT=900 mg*min/L) Chlorine residual 6 3 0

22


Yokogawa Challenges in Global Water Market

23

Digital transformation technologies strengthen engineered buffer in the IPR/DPR. The worst-case exposure scenario is too much conservative. RO and some other treatments also remove viruses but are not counted in LRVs.

Market Trend The global water market is estimated to be worth around 720.4

Billion USD in 2016. Wastewater reuse is one of the biggest market trends, as utilities

no longer view municipal effluent as waste but as a resource.

Challenge !


The names of corporations, organizations, products and logos herein are either registered trademarks or trademarks of Yokogawa Electric Corporation and their respective holders.

Thank you for your attention.

24

water reuse market in us · global market size and characteristics. 720.4 billion usd. source....

Documents