case 2: danfoss aquaz – danish water · pdf file28/04/2009 · april 28, 2009...

April 28, 2009 1

Case 2: Danfoss AquaZ – Danish Water Forum

• Drivers of Opportunity– Potable Water Scarcity– High Water Desalination Costs

• Danfoss AquaZ Value Proposition

• Our Solution: The Cost-Effective Aquaporin Membrane

• The Current RO/NF Market and its Development

• Key Facts

• Company Development State and Future Challenges

• Our Vision

Danfoss AquaZ

http://www.danfoss-aquaz.com/

April 28, 2009 2


The Story of Danfoss AquaZ is about

• Astonishing fundamental research

• Nanotechnology

• Million € investments

• Skunk Work

• Risk of failure

• Billion € gain perspectives

• But initially it’s about clean water


April 28, 2009 3


Driver of Opportunity: Potable Water Scarcity

Source: Elsevier B.V. 2008

Facts on water:

• Covers ¾ of the Earth’s surface!

• 3% is potable!

• 25% of population have no access to satisfactory quality/quantity!

• > 80 countries with severe water problems!

• Worldwide drought and desertification will sharpen scarcity.

• This is NOT ONLY a 3rd World problem!

• According to the Worldwatch Institute, more than two-thirds of the world’s population may experience water shortages by 2025, thus affecting practically every country in the world, including the developed, unless they reduce demand and/or develop additional water sources.


April 28, 2009 4


Driver of Opportunity: High Water Desalination Costs

Specific Energy Consumption for Different Water Sources and Desalination Technologies

0

2

4

6

8

10

12

14

16

Conventional BWRO SWRO MED METC MSF

Desalination Technology

Tota

l Sp

ecif

ic E

ner

gy

Co

nsu

mp

tio

nEl

ectr

ical

/Th

erm

al k

Wh

/m3

Thermal Processes

Sea Water Desalination

Brackish Water Desalination

Ground Water

Source: Gary J. Crisp,GHD Australia, September 2008www.ghd.com.au


April 28, 2009 5


0,00

0,10

0,20

0,30

0,40

0,50

0,60

0,70

0,80

RO, FilmTec SW30HR-380, 9 GFD, 50% Recovery AquaZ, 45 GFD, 85% Recovery

O&

M &

To

tal C

ost

s U

S$/m

3

Other Misc Unit Costs**Cartridge FiltersSolids DisposalLaborMembrane ReplacementMaintenanceChemical CostsFinished Water PumpingPermeate Lift PumpingMembrane/PX Booster PumpingFiltered Water PumpingRaw Water PumpingOther Capital Costs*MembranesPrefiltrationDewatering EquipmentInstrumentation/ControlElectricalContractor Overhead & ProfitSkidsContingenciesBuildingEngineering & CM

Sea Water Reverse Osmosis Desalination Costs vs. AquaZ @ 190 k m3/day

US$ 0.74/m3

RO/Booster Pumping**

33%of Total Costs!

US$ 0.47/m3

37% Total Cost Reduction!

SWRO Danfoss AquaZ


April 28, 2009 6


Danfoss AquaZ Value Proposition

Conventional Plant 80% Smaller Plant

Same Amount of Water

Up to 400% More Water

Same Size Plant

Up to 70% Less Energy

OR

• Danfoss AquaZ develops a cost-effective membrane technology, which will increase the efficiency of sea water desalination plants by 5-10 times!


April 28, 2009 7


Our Solution: The Cost-Effective Aquaporin Membrane

• The membrane purifies water through its incorporated proteins called “Aquaporins”. Aquaporins isolate water molecules based upon electrostatic physical recognition leading to production of truly pure water

H2O !• They operate at the thermodynamically

lowest energy level for purification.The purification process can be gravity-driven and may increase water throughput by 5-10 times compared to traditional state of the art desalination technologies.

• Unlike other Aquaporin-based membrane projects Danfoss AquaZ is deeply focused on developing reliable membranes, which can be produced using industrialised scalable processes and can withstand harsh working environments.

• … and we have our own GMO approvedmanufacturing of aquaporins…

Polymer Polymer

Aquaporin

Water Channel

Danfoss AquaZMembrane withproprietary NanoMembraneredundancy!

NanoMembrane


April 28, 2009 8


2008 World Market for Membrane Elements US$ million, Manufacturers level

RO525

NF125

UF575

MF875

0,1

1

10

100

0,00001 0,0001 0,001 0,01 0,1 1 10

Impurity size (μm)

Tran

smem

bra

ne p

ress

ure,

dP

(bar

)O

PERA

TIO

N C

OST

Brackish water desalination Foods &

beverages

Fresh water

Wastewater treatment

Ultra pure water

Seawater desalination

Pathogens(bacteria & viruses)

Potable water

Danfoss AquaZ potential

Chemical & pharma-ceutical

The Current RO/NF Market

Market Size: 600-700 m US$; CAGR 8-16%

• Danfoss AquaZ Membranes substitute current Reverse Osmosis (RO) and Nano Filters (NF).


April 28, 2009 9


Seawater RO Desalination

• RO/NF Elements are to a large extent standardized providing a lucrative retrofit opportunity


April 28, 2009 10


Key facts

2005 Mail from MT Technologies, USA to Jorgen Mads Clausen, DanfossSubject: Unique business proposal

– Carlo Montemagno, Dean of Engineering, University of Cincinnati– Steven Tozzi, Business Man, Serial Entrepreneur

Danfoss Ventures: global market and technology investigations (IPR)

2006 Danfoss AquaZ A/S established– Danfoss 51,0%– BankInvest 25,5% (BI New Energy Solutions)– MT Technologies 23,5%

HQ, Nordborg, Denmark

Subsidiary, Danfoss AquaZ Inc., Cincinnati, Ohio


April 28, 2009 11


Senior Management

• Jorgen Steen-Pedersen - President and CEO– The project is headed by Jorgen Steen-Pedersen, who

leads a focused team of international researchers working on the membrane development.

– Before being appointed head of Danfoss AquaZ in 2006, Jorgen successfully managed various R&D- and venture departments at Danfoss.

• Carlo Montemagno - Professor and Co-founder– Dean of Engineering, University of Cincinnati– Fellow of the American Academy of Nanomedicine– Recipient of the Feynman Prize for Experimental Work

in Nanotechnology– Previously Chair of the Department of Bioengineering

and Roy & Carol Doumani Professor of Biomedical Engineering, UCLA.

– At Cornell University he served as associate professor at the Department of Biological and Environmental Engineering and as director of graduate studies in biomedical engineering


April 28, 2009 12


Current Investors

• Founder, Carlo Montemagno– See previous slide for a biography on Carlo

• Danfoss Ventures A/S– Danfoss Ventures is the corporate venture arm of the

Danfoss Group.– Danfoss Ventures is a leading corporate venture investor,

investing in early stage companies within Water and Energy.

– The Danfoss Group is a $ 5bn+ industrial components manufacturer with acitivities in Heating, Refrigeration, Motion Controls and Mobile Hydraulics.

– For more information, please visit: www.danfoss.com

• BankInvest– BankInvest is a Danish venture capital firm focusing on

early stage investments within Cleantech– For more information, please visit: www.biventure.com

http://www.biventure.com/showpage.aspx?pageid=967

http://www.danfoss.com/


April 28, 2009 13


Company Development State and Future Challenges

• By 2010 a ø25 mm Danfoss AquaZ Membrane will be available for “small membrane applications” such as:

• To gain distribution power and increase application knowledge Danfoss AquaZ will partner with one or more major suppliers in the current RO/NF market using their current communication channels, push/pull strategies and brands.

• Financial investors are invited to pursue an interesting business opportunity with Danfoss AquaZ

• For more information please visit: www.danfoss-aquaz.com

Tap water filters Lifeboat/rescue kitsTravel filter kits

Aquarium filters etc.













April 28, 2009 14


- Aquaporin

- Bacteriorhodopsin- Cytochrome

Oxidase

- Na+/K+ ATPasen- β-galactoside

permease- Glucose permease- Etc.

Our Vision

Functional Functional IngredientsIngredients[Biological Cell Wall Proteins]

NanoNanoMembranesMembranes

Applications & Applications & Market NichesMarket Niches

- RO/SWRO membranesRescue kits

- Solar Energy and Carbon Dioxide (CO²) Uptake

- Controlled Medication Dosing for Bioengineered Pharmaceuticals

- Etc.

Energy Conversion

Primary Business Focus


case 2: danfoss aquaz – danish water · pdf file28/04/2009 · april 28, 2009...

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