Environment Technologies in Japan

Survey Report

on Water Pollution Control & Sludge Treatment

(FY2006)

TTPP

(Trade Tie-up Promotion Program)

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CONTENTS

１１１１．．．．Targets of the Survey and Categorization............ ................................... 1

2. Categories of Water Use and Related Technologie s/Products .............. 3

3. Regulations and Standards Concerning Water Poll ution Control in

Japan.............................................. ................................................................... 6 3-1. Law Concerning Water Pollution Control in Japan and International

Conventions ....................................................................................................................... 6

3-2. Legal System Concerning Water Pollution Control in Japan................................11

4. Technologies/Products for Water Pollution Contro l and Water

Purification....................................... ............................................................... 13 4-1. Technologies for Water Pollution Control and Water Purification, as Seen by

Category ........................................................................................................................... 13

4-2. Development and Commercialization of Technologies in the Areas of the Water

Pollution Control and Water Purification...................................................................... 15

4-3. Examples of Technologies/Products for Water Pollution Control and Water

Purification ...................................................................................................................... 15

4-3-1. Category A: Water Use for Daily Life and Production Activities................... 16

4-3-2. Category B: Water Pollution Control............................................................... 19

4-3-3. Category C: Improvement of Water Quality in Public Water Bodies ............ 26

4-3-4. Category D: Water Purification........................................................................ 27

5. Business and Distribution Situation ............ .......................................... 27 5-1. Environmental Equipment (Water Pollution Control Equipment) Industry in Japan................................................................................................................................ 27

5-1-1. Production Figures............................................................................................ 28

5-1-2. Production Value (by Type, Capital, and Demand Sector)............................. 28

5-1-3. Trends in Number of "Specified Factories" ..................................................... 30

5-2. Form of Orders in Environmental Equipment Industry ................................... 33

5-2-1.Relationship of Main Contractors and Subcontractors ................................... 33

5-2-2. Features of Market and Form of Orders ......................................................... 34

5-3. Features of Overseas Business From Companies Interviewed......................... 34

5-3-1. State of Overseas Business............................................................................... 34

5-3-2. Competition and Market Entry........................................................................ 36

6. Results of Questionnaire Survey: Case Studies of Japanese

Technologies and Products.......................... ................................................. 37 6-1. Interest in Overseas Business................................................................................. 37

6-2. Technologies and Products by Category ................................................................. 38

Appendix <Table A> Categorization of Technologies f or Prevention of

Water Pollution, Water Purification and Technologie s/Products ............... 39

Appendix <Table B> Results of Questionnaire Survey : Japanese Water

Pollution Control and Water Purification Technologi es and Products ...... 42

1

The survey was conducted to provide information about leading-edge

environment protection technologies/products offered by small businesses in

Japan to overseas business people. In this survey, we gathered information on

systems, technologies/products, which are practically useful for businesses, with

a particular focus on the area of water purification and water pollution control.

The following is a link to the list of TTPP proposals regarding technologies and

products registered by some of interviewed companies, which have interest in

overseas business. (Researched by Shinko Research Co., Ltd. based on

contract with JETRO.)

１１１１．．．．Targets of the Survey and Categorization

Targets of the survey include systems/equipment, parts, and materials related to

the water purification as well as the water pollution control. In this report, they

are grouped into four categories from a viewpoint of the water cycle used; (a)

Water use for daily life and production activities, (b) Water pollution control, (c)

Water quality in public water bodies, and (d) Water purification.

Water Cycle

(1) Category A: Water Use for Daily Life and Produc tion Activities

Wastewater is derived from many sources such as homes, commercial,

manufacturing and other business facilities. Category A includes two types of

technologies/products. The first is pretreatment technologies/products to deal

with wastewater from its sources to the inflow of network for treatment systems.

The second is technologies developed to improve function and quality of water

through the reuse and circulation of water within the network.

2

(2) Category B: Water Pollution Control

This category involves technologies/products developed for the water pollution

control to meet different requirements for water quality in facilities for the

treatment of sewage and wastewater from factories. Used water flows into public

water bodies after being treated according to water quality standards for

wastewater treatment facilities.

(3) Category C: Water Quality in Public Water Bodie s

As water quality in rivers, lakes and underground water deteriorates,

technologies/products have been developed for the improvement of water

quality and the preservation of aquatic plants/animals.

(4) Category D: Water Purification

Water purification technologies have been developed to provide tap water,

industrial water and agricultural water for daily life and production activities using

public water bodies such as rivers and lakes as well as underground water

resources.

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2. Categories of Water Use and Related Technologie s/Products

Along with the accumulation of various pollutants that come into network of

water cycle, it is becoming more difficult to protect people’s health and to

preserve ecosystem. From a viewpoint of people’s life and industrial activities,

water can be divided into two categories: usable water and wastewater. Usable

water involves tap water, industrial water and agricultural water. Wastewater

includes industrial wastewater and municipal sewage.

Water Resources and Usage in Volume in Japan

Water balance can basically be calculated by “ways to use” and “quantity of

water used.” A look at the balance of water pollutants in Japan shows that useful

water subtracted from wastewater is minus. This is one of roots for today’s water

pollution problems. Establishing legal system for the water pollution control and

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developing technologies of water treatment for commercial use can be viewed

as ways to solve these problems, by balancing input and output of water

pollutants.

Water such as tap water, industrial water and agricultural water which people

use in their daily life and industrial activities is taken from public water bodies

(rivers, sea, etc.) and groundwater. Most of water used returns to public water

bodies.

In FY2004, the largest volume was taken from Japan’s rivers and ground waters

as agricultural water (55.7 billion cubic meters). The second largest volume was

consumed for daily life (16.1 billion cubic meters). Most of it returned to public

water bodies after being used or consumed temporarily.

In Japan, water intake for industrial use amounted to 12.1 billion cubic meters in

volume, smaller than that for daily life. However, the consumption of water for

industrial use reached as much as 53.3 billion cubic meters, because a large

volume of water was required in manufacturing processes for industrial activities.

As a result, volume of water used in industrial activities was equivalent to the

volume of water taken for agriculture. In order to meet demand for industrial

water, it is quite important to collect and treat wastewater in factories and other

business facilities for the reuse and recirculation. Water intake in volume from

precious natural water resources can be reduced, by promoting the reuse and

recirculation of recovered water. These efforts will contribute to decreasing the

final effluent into public water bodies and water pollutant load.

In FY2004, 79% of industrial water was derived from recycled water. In Japan,

three industries were consuming the largest volume of water including chemical

industry, steel industry and pulp/paper industry. The use by these three largest

water-consuming industry sectors accounted for about 71% of industrial water.

Recycling rates reached 80 - 90% in chemical industry and steel industry,

compared to about 45% in pulp/paper industry. Recycling rates were low in food

manufacturing industry at about 40% and textile industry at about 15%. In these

industries, there are a lot of companies that are small in business size. So it is

necessary to promote the dissemination of technologies to improve water quality

at low cost and to increase recycling rate as well as the introduction of closed

systems for recirculation and reuse.

5

Japan’s Potential Water Resource and Consumption in Volume

In recent years, demand for ultra-pure water and highly functional water has

been rising in electronics and other industries. Demand for higher quality

water has been also increasing in daily life.

New technologies/products have been developed and commercialized to

respond to different needs for water in a variety of sectors, in addition to

technologies for wastewater treatment in water cycle. So one technology or

product can be classified into multiple categories in many cases.

6

Trend of industrial Water Usage

3. Regulations and Standards Concerning Water Poll ution Control in

Japan

3-1. Law Concerning Water Pollution Control in Japa n and International

Conventions

In Japan, the water pollution control is regulated by the following three methods.

(1) Control the pollutant concentration of wastewater (Effluent Standards): These

standards are employed for the control of most of water types.

(2) Control the pollutant concentration in water bodies (Environmental Quality

Standards): These standards are considered as long-term mandatory

targets in administrative guidelines for environment policy. They can be

used as yardstick for environment consciousness in the society.

(3) Control the pollutant of wastewater in volume (Total Pollutant Load

Regulation): This method is applied to water bodies in large closed public

water bodies receiving large amount of effluent emitted from daily life and

industry sectors, when environmental quality standards cannot be achieved

just only by restriction of pollutant concentration.

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These methods are employed to target so-called point source loads, or facilities

with identifiable sources of wastewater. It is a future challenge to take measures

against non-point source loads like rainwater/agricultural wastewater with

unidentifiable pollution sources.

It is in 1950s when the enactment and revision of laws started in Japan to control

water pollution. In the late 1950s, “Water Supply Law” and “Sewerage Law” were

enacted to set quality standards for tap water, discharge standards and effluent

standard for sewage. At the same time, “Old Two Laws Concerning Water

Quality Control“ were introduced to control water quality of industrial wastewater

from factories. “Basic Law for Environmental Pollution” was legislated in 1960s.

In 1970s, “Waste Disposal and Public Cleansing Law” and “Law Relating to the

Prevention of Marine Pollution and Maritime Disaster” were enacted. Standards

for quality of wastewater from factories and plants were set based on “Water

Pollution Control Law”. In the Seto Inland Sea, damage in fishing industry

caused by red tide became serious, as entrohication due to the inflow of nutrient

such as nitrogen and phosphorus progressed. It led the government to

implement “Law Concerning Special Measures for Conservation of the

Environment of the Seto Inland Sea”.

Since then, water supply and sewerage projects have been promoted more

strongly as part of the policy for infrastructure improvements. More facilities have

been established to control the pollution of water from factories. During this

period, introduction of foreign technologies for water purification in water

treatment for tap water, sewage treatment, and industrial water/wastewater

treatment has progressed along with the development and commercialization of

new technologies in Japan. When it comes to industrial wastewater, a variety of

technologies were required because water qualities are different from one

industry to another. So a diversity of technologies have been developed and

commercialized.

From the late 1970s to 1980s, primary total pollutant regulation according to

“Water Pollution Control Law” began in three sea areas including Tokyo Bay, Ise

Bay and the Seto Inland Sea. “Law Concerning Special Measures for

Conservation of Lake Water Quality” was also enacted. The law system was well

established to prevent eutrophication in closed water bodies. These laws

encouraged the development and commercialization of advanced technologies

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to remove COD, nitrogen and phosphorus.

In 1990s, “Basic Environment Law” was legislated to set environmental quality

standards for water quality, etc. “Drinking Water Sources Law ”, “Laws

Concerning Special Measures for Conservation of Drinking Water Sources” and

“Law on Livestock Excreta Management and Recycling” were enacted to keep

water sources from being polluted.

In 2000s, pollution caused by hazardous substances began posing a new

problem. So “Law Concerning Special Measures against Dioxins” and “Soil

Contamination Countermeasures Law” were enacted. Furthermore,

environmental quality standards for water were also established for the

preservation of aquatic plants/animals, tightening the regulations for the

protection and improvement of water environment.

There are important international conventions concerning the prevention of

water pollution such as “Convention on the Prevention and of Marine Pollution

by Dumping of Wastes and other Matter”, “International Convention for the

Prevention of Pollution from Ships”, 1973 (as modified by the Prot), and

“International Convention for the Control and Management of Ships’ Ballast and

Sediments”.

“Convention on the Prevention and of Marine Pollution by Dumping of Wastes

and other Matter” regulates ocean dump wastes generated on land from ships,

marine facilities and aircrafts as well as incineration of these wastes on the

ocean. Ocean dump is prohibited in principle, but it is partially permitted based

on approval systems. Japan ratified this convention in October 1980.

“International Convention for the Prevention of Pollution from Ships”, 1973 (as

modified by the Prot) is a general international convention concerning the

prevention of marine pollution caused by the operation of ships or marine

accidents. Japan signed the convention in 1983 and the protocol took effect in

October the same year. In Japan, “Law Relating to the Prevention of Marine

Pollution and Maritime Disaster” was entirely revised to enforce the regulations

in the protocol.

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“International Convention for the Control and management of Ships’ Ballast and

Sediments” is to control and regulate ballast water and sediments on board in

order to prevent danger to the environment and people’s health due to the

movement of hazardous aquatic plants/animals and pathogen. After the

expiration of transitional period, facilities for the treatment of ballast water must

be built on board. The development of treatment systems remains as a

challenge for the future.

10

A History of Enactment of Laws Concerning Water Pol lution Control

11

3-2. Legal System Concerning Water Pollution Contro l in Japan

Presently, the legal system concerning prevention of water pollution in Japan is

as follows.

Legal System Concerning Water Pollution Control

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These relating laws are grouped into four categories according to the definition

of categories of technologies/products in this survey.

Categorization of Laws Concerning Water Pollution Co ntrol

13

4. Technologies/Products for Water Pollution Contro l and Water

Purification

4-1. Technologies for Water Pollution Control and Water Purification, as

Seen by Category

The water pollution control involves technologies for water treatment, sludge

treatment, and water quality measurement. In Table A, water treatment

technologies are grouped into four categories used in this survey. Products, can

be commercialized and exported to overseas market, were selected for this

survey. (See column “Technologies/Products” in Appendix<Table A>)

Technologies for water pollution control are being used not only for the discharge

of wastewater after the treatment process, but also for the reuse of wastewater

as intermediate water or reclaimed water. In addition, they are used to change

usable water into high-purity process water such as pure water and ultra-pure

water. The technologies can be also used to produce functional water with

special functions.

Generally, a large amount of workloads and investment in time and cost are

required for the R&D and commercialization of new technologies. New social

environment brought about by tougher regulations has been motivating

companies to increase their investment for the development of new technologies.

In the area of the technologies for the prevention of water pollution, a number of

regulations have been enacted to introduce tougher standards for water quality.

It can be said that development and commercialization of necessary

technologies progressed along with introduction of new related laws and

regulations.

See Appendix <Table A> Categorization of Technologies for Prevention of Water

Pollution, Water Purification and Technologies/Products (P39)

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Flow of Wastewater Treatment Technology

15

4-2. Development and Commercialization of Technologi es in the Areas of

the Water Pollution Control and Water Purification

The numbers of patents for water and sludge treatment technologies showed a

notable increase twice: the first rise was in the period from the late 1970s to the

early 1980s and the second is in the period since the late 1990s. The numbers of

technical documents on water treatment technologies have been increasing

since the late 1970s, while the documents about sludge treatment technologies

have remained flat since then.

4-3. Examples of Technologies/Products for Water Po llution Control and

Water Purification

The following questionnaire survey and interview survey were conducted to

introduce technologies/products for the water pollution control in Japan. The

description about selected technologies/products are based on these survey

results and other existing data. Refer to Table B regarding serial numbers at the

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end of the reports about each technology/product.

<Questionnaire Survey>

Companies surveyed : About 200 small businesses with noticeable business

results in the field of technologies/products for the water pollution control and

water purification

Date of survey : Water pollution control and water purification: July-September

2006

Additional survey on sludge treatments: January - February 2007

Responses : Effective responses from about 60 companies (120 products)

<Interview Survey>

Based on the results of the questionnaire survey, interviews were conducted to

get information about main features of each company’s technologies/products,

R&D, commercialization and interest in overseas businesses.

Companies surveyed: 35 companies out of the respondents to the

questionnaire survey

Date of survey: August 2006 – February 2007

4-3-1. Category A: Water Use for Daily Life and Pro duction Activities

(1) Strainer

Micro strainer is a device to separate suspended particles from water through

cylindrical drums with very fine mesh.

<Cutting Dust Separation Device>

Cutting and grinding dusts get mixed with coolant for machine tools, so factories

for automobile and machinery have processes for the separation and removal of

metal powder from coolant. In this area, new types of devices with higher

efficiency have been developed and commercialized. They consist of a process

for the natural sedimentation and separation of coarse dusts as well as a

process for the filtration of fine dusts through a strongly magnetized

drum-shaped screen. (See Serial No.25)

(2) Oil Separation from Water and Recovery

The separation of oil from water is an essential process for environmental

protection and manufacturing control. The recovery of oil ingredients from

oil-containing wastewater will result in a substantial reduction in pollution loads in

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organic wastewater. A typical technology is an oil skimmer that inhales oil from

wastewater remaining in pits or in other places. There is also a type of skimmer

with an integrated separator of oil from oil water. It can increase the oil

concentration. The essence of the technology can be found in the structure of

skimmers, designed to inhale only oil as effectively as possible.

<Floating Skimmer>

In a floating skimmer, gate ring for the inflow of surface oil and pump’s inlet are

supported each by independently structured floats, so that levels between the

water surface and the gate ring can be kept at constant levels. (See Serial

No.30)

The independent architecture is used for gate ring for the inflow of oil on the

water surface and intake hopper for the intake pump, so buoyancy is given to

floats by liquid that flows into the gate ring, keeping the difference in water levels

between water surface and gate ring at constant levels. (See Serial No.08)

<Oil Water Separation System for Ships>

The law prohibits the drainage of oil water, which is generated on board, into

ocean. At the same time, ships must be equipped with a system for the

separation of oil water to meet water quality standards.

Coalescer types with built-in cartridges containing non-woven fabric filters are

generally used as separating system. Although systems combined with

pre-treatment devices or post-treatment devices are popular, simple systems

using only coalescer method that can meet regulation standards are also

available. (See Serial No.17)

(3) Membrane Filtration

Microfiltration (MF) and ultrafiltration (UF) are typical filtration methods.

Membrane filtration is used in a variety of systems such as high-level water

purification system, hollow-fiber filtration system and wastewater filtration

systems. Membrane filtration method can replace both traditional

coagulation/sedimentation processes and sand-filtration processes.

<High-Level Water Purification System> <Hollow-Fibe r Filtration System>

High-level water purification systems and hollow-fiber filtration systems are used

for high-level water purification in municipal water treatment plants and for the

treatment of pathogenic microorganisms such as cryptosporidium. In regions

with very limited water resources, the system can be used to filtrate wastewater

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from used groundwater in daily life for circulation and reuse as intermediate

water. ( See Serial No.18 and 05)

<Wastewater Filtration System>

Wastewater filtration systems use membranes to filter wastewater emitted from

plants for electronic devices, plating and chemical products for the circulation

and reuse of wastewater or for the recovery of valuable metals. It is possible to

design wastewater filtration systems as closed system. (See Serial No.11)

(4) Electrolytic Oxidation

Oxidation is a reaction that takes place at a positive electrode when liquids with

electrolyte go through electrolytic process.

<System to Prevent the Clinging of Marine Plants an d Animals>

A large volume of ocean water is used as coolant in coastal factories such as

petrochemical plants, steel mills and thermal power plants. Marine

plants/animals such as seaweeds or shellfishes cling to pipes and other

equipment, causing serious troubles with operation and maintenance. Usually,

very expensive medicines such as sodium hypochlorite are injected into water

intakes to keep marine plants/animals from growing. To eliminate the needs for

the purchase of these medicines, equipment has been developed to enable

in-house production of sodium hypochlorite by the process for the electrolysis of

ocean water. (See Serial No.07)

(5) Disinfection and Sterilization

The quality of tap water is controlled to ensure that the concentration of residual

chlorine in the outlet of water tap is maintained at designated levels. Here,

problems arise such as the odor of chlorine when the water is used. Another

problem is the growth of bacteria when water is stored in a tank. Usually,

chlorine-based agents, ozone or ultraviolet are used for the sterilization of water.

<Sterile Filter>

Various types of water purifiers, designed to keep stored tap water tasty and safe,

are offered in the marketplace. One of the recently launched products in this

category, which are being manufactured and sold, uses sterilization effects to

keep water from being rotten. A small container containing fine cupper-made

fiber is immersed in a storage tank for tap water or mineral water. (See Serial

No.09)

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(6) Ultraviolet Irradiation

As one of the water treatment technologies, ultraviolet can be used for the

disinfection and sterilization as well as for the decomposition of organic

materials. Ultraviolet with around 260-nanometer wavelengths (1 nanometer is

one billionth meter) is most effective for sterilization.

<Disinfection/Sterilization Equipment>

There are two types of ultraviolet lamps: Low voltage and middle-voltage types.

In terms of system architecture, ultraviolet lamps can be classified into external

irradiation type and internal irradiation type.

For the design of products, an optimum type and architecture is chosen to meet

varying requirements dependent on the different types of water to be sterilized.

Disinfection or sterilization equipment is widely used for various processes in

food and other plants or in sewage treatment plants. Recently, disinfection and

sterilization systems are also being used in municipal water treatment plants to

deal with problems with pathogenic microorganisms such as cryptosporidium.

(See Serial No.19)

(7) Prevention of Softening and Scaling of Water

The long-term use of water for manufacturing processes causes clogging of

pipes and other equipment due to corrosion by iron rusts or scaling by materials

in water such as calcium. So, technologies are being developed to meet

requirements for the prevention of these damages.

<Reduction Processing Equipment>

Reduction process is one of methods to prevent iron rust or other scaling

materials from clinging to pipes and other equipment. In the reduction process,

an electrode unit is placed into water to generate hydrogen through electrolysis

process. (See Serial No.29)

4-3-2. Category B: Water Pollution Control

(1) Neutralization

Wastewater has to be neutralized to adjust pH value to almost neutral level (5.8

– 8.6) so that it can be discharged into water body without causing any negative

impact on the eco system.

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<Automatic Neutralization Device>

One of standard type products in this category is a product that integrates both

an acid/alkali medicine injection device and a pH meter-based automatic pH

adjustment device with a neutralization tank. (See Serial No.16)

(2) Aeration

Aeration is used to increase dissolved oxygen by contacting air with water or to

degas dissolved gases in water such as hydrogen sulfide and volatile organic

materials. There are two ways for the removal of organic materials through

aerobic treatment. One is to use a blower to feed air to in-water aeration devices.

Another is to use mechanical agitation equipment to feed air. If air bubbles to be

fed are finer, oxygen will dissolve into water more effectively.

<Micro Bubble Generator>

Micronano bubbles have far finer particles than air bubbles generated by

conventional fine air bubble aerators. In addition to having effects on the

decomposition of organic materials, they can also effectively activate

microorganisms. Micro bubbles, which stand in between conventional fine air

bubbles and micronano bubbles in terms of bubble size, can stay in water very

long and can pass transversely across water currents. Microbubble generators,

which are smaller in size, have proven to be very effective in eliminating

blue-green algae or preventing them from growing in reservoirs or other closed

water bodies. (See Serial No.28)

(3) Accelerated Oxidation Process

Various types of medicines, ozone and ultraviolet can be used for the oxidation

of organic materials. The combination of two methods or more can improve the

oxidation effects synergistically.

<Accelerated Oxidation Process Equipment>

In the accelerated oxidation process, ultraviolet lamps in reactor’s transparent

tube irradiate ultraviolet beam at wastewater while using ultraviolet to generate

ozone fed from air into the tube for the aeration of wastewater. One of widely

used technologies is a method that uses oxidants to be injected into the reactor’s

inlet for the intake of raw water to create synergy effects of three different

oxidation reactions. (See Serial No.04)

(4) Rotary Biological Contactor

In rotary biological contactor method, a number of circular discs are attached to

21

a rotating axis. Generally, the discs are made from reinforced plastic fiber with

complex-shaped folding lines, where microorganisms can cling and live easily.

<Biological Treatment Systems>

Biological treatment system based on the rotary biological contactor method

uses porous discs made from chemical fibers. It has two series of devices with

the same architecture that alternately repeat “stop” and “go” in supplying

wastewater to decompose organic materials in water effectively. While

wastewater inflow continues, the decomposition of in-water organic materials

accelerates due to an appropriate level of growth and detachment of

microorganisms on the surface of the discs. While the wastewater inflow stops,

food chain spreads to the inside of disc, preventing surplus sludge from

generating almost all. (See Serial No.15)

(5) Contact Oxidation Method

In contact oxidation method, contact materials such as plastic are filled in to form

shapes that make microorganisms to be attached easily on the inner surface of a

reactor tank. Air is fed from the bottom of contact materials for aeration. This

method does not produce so much excess sludge. It is also easy to maintain, so

it is best fitted to the small- or medium-sized wastewater treatment facilities.

<Biological Treatment Device>

Contact materials are an important technical feature of biological treatment

devices based on contact oxidation methods. So, contact materials have many

different shapes. Recently, there is a remarkable rise in the use of the type that

uses a plastic fiber as warp and a radially structured material as weft. (See Serial

No.22)

(6) Aerobic Filter Bed

A filter bed with several millimeter thick filter materials is built in a tank.

Wastewater flows from above. Aerobic microorganisms that cling to the surface

of the filtering materials decompose organic materials and capture suspended

particles. Air is fed from the bottom of the filter bed to supply oxygen that is

required for the decomposition. Regular backwashing maintenance is necessary

to prevent suspended particles and increased sludge from clinging to the filter

bed.

<Wastewater Reuse System>

Biological reactors using oyster shells as a filtering material have been

22

commercialized as technology for the reuse of wastewater from toilets. The

reactors use a conventional combined purification tank (contact oxidation) in a

front-end treatment process and an advanced tertiary treatment process (contact

filtration tank and activated carbon adsorption tower) in the rear-end process to

produce intermediate water and to circulate and reuse it. (See Serial No.01)

<Human and Domestic Animal Excreta Treatment Device >

A new type of human and animal waste treatment device has been developed

and commercialized based on a method similar to contact oxidation method or

aerobic filter bed method. Using sawdust as the contact material, the device can

entirely treat human and animal waste through the oxidative decomposition of

their organic materials. In this type of treatment devices, the activation of

microorganisms and the supply of oxygen are made by controlling temperature

in a tank and by stirring sawdust. (See Serial No.14)

(7) Addition of Microbial Medicines and Microorgani sm Activators

<Organic Wastewater Treatment Device>

In this type of devices, microbial medicines are used for the treatment of

oil-containing wastewater in food and machinery factories and oil-contaminated

underground water. In a reactor tank with microbial medicines, which are

effective in oil decomposition, currents consisting of wastewater and air are

generated from the bottom. The ascending whirlpool current oxidizes and

decomposes oil content. This type of microbial medicine has been developed

and commercialized to purify soils contaminated by oil-containing materials.

(See Serial No.23)

(8) Stream Circulation

Stream circulation is a method to supply oxygen, dissolved in water through the

water surface in natural environment, from surface layer to bottom layer. It

revitalizes water’s natural purification functions without using any mechanical

processes for the supply of external air or oxygen.

Damages by blue-green algae or red tide to fishery and tourism industries have

been increasing in closed water bodies such as dams, lakes, ponds and inner

bays. Energy-efficient hydrodynamic devices have been developed and

commercialized to revitalize water’s natural purification functions and to prevent

green-blue algae or others from growing. It can replace expensive aeration

systems.

23

<Circulated Stream Generation Device>

- Floating type devices powered by solar energy for use in relatively small ponds

(See Serial No.26)

- Device with water current generator to be fixed on the water bottom for use in

relatively large dam reservoirs and other water bodies. (See Serial No.27)

(9) Anaerobic Treatment and Anaerobic Sludge Digest ion

In anaerobic treatment, anaerobic microorganisms are used to decompose

highly concentrated organic materials contained in industrial wastewater, human

excreta and sewage sludge. Despite the requirement for heating, it eliminates

the need for the air supply. So, it can save energy consumption compared with

aerobic biological treatment. A typical technology is a method for methane

fermentation that decomposes organic materials into methane gas and carbon

dioxide. Methane gas can be used as fuel for heating of digestion tanks, power

generation and other purposes.

Anaerobic sludge digestion technologies include non-heating, mid-temperature

and high temperature digestion methods. The most popular among them is the

mid-temperature digestion method that maintains temperature within tank at the

level between 30 degrees C and 35 degrees C. Two methods are being used to

heat sludge. One is a steaming method to inject steam from a boiler directly into

a tank. Another is external heating method that moves sludge out of a tank into a

heat exchanger where hot water is used for heating. For external heating, two

types of heat exchangers are used. One is double pipe type and another is spiral

type.

<UASB Wastewater Treatment Device>

Up-flow Anaerobic Sludge Bed (UASB) is a typical technology for the anaerobic

treatment of wastewater. There is a technology that uses a special fungus body

as an anaerobic microorganism. (See Serial No.24)

<Sludge Heat Exchanger>

In spiral method for sludge digestion, spirally shaped heat transfer panel is used

in a cylinder. Sludge flows through a single channel, so there is no need for the

concern about clogging to be caused by impurities. (See Serial No.06)

(10) Solubilization, Concentration, Dehydration, Car bonization and

Incineration of Sludge and Liquid Waste

Some types of sludge and liquid waste have to be treated as industrial waste.

24

Dehydration is used to remove water content and to reduce the weight and

volume for the purpose of cutting treatment and final disposal costs. Some

wastes contain useful resources such as organic materials and precious metals

as well as hazardous materials such as heavy metals.

Excess activated sludge appears in activated sludge process for the treatment of

organic wastewater. The use of solubilization technology can prevent sludge

from coming up. When sludge comes up, it goes through a process of thickening,

dehydration and drying. In the case of waste liquid with highly concentrated

waste acid and alkali, water content in liquid is directly evaporated and dried.

Solubilization process includes methods based on ozone, thermophiles,

hydrolysis using hydrothermal, acid and alkali, supersonic and rotating mill

methods.

There are many types of driers, such as drum and belt driers. Indirect heating

type such as rotary kiln type drum driers are commonly used to dry organic

sludge. New types of driers like direct heating systems have been also

developed and commercialized.

Thickeners are based on many types of methods such as gravity, dissolved-air

floatation, atmospheric-pressure floatation, centrifuge and belt.

There are many types of dehydration equipment, such as filter press, belt press,

centrifugal dehydrator and screw press.

Carbonization and composting are ways for the effective use of dehydrated or

dried sludge as recyclable resources.

<Sludge Solubilization Equipment>

In ozone treatment technology, ozone is used to break cell walls of sludge floc

and to make the floc soluble. A main feature of the sludge solubilization

equipment, which is introduced in this report, is that it can make sludge very

highly soluble by circulating sludge through ozone treatment tank and circulation

tank, preventing excess activated sludge from being generated like biological

treatment method. (See Serial No.31)

<Disc Type Waste Liquid Drying Equipment>

Disc type waste liquid drying equipment replaces drums with heat transferring

planar surface with a number of three-dimensionally shaped discs, making the

equipment more compact. The equipment is used for drying of liquid waste in

plating and food manufacturing processes or for the production of ceramics and

raw materials for ceramic products. (See Serial No.21)

25

<Centrifugal Film Type Waste Liquid Drying Equipmen t>

Centrifugal film type waste liquid drying technology is used mainly to thicken and

dry wastewater from factories, particularly to recover solvents from wastewater

from washing liquid in paint process. In equipment of this type, which is

introduced in this report, multi-levels of rotary blades are set in a vertical cylinder

that rotates while being heated. Waste liquid is supplied from the top of the

cylinder. Agitated by rotary blades, liquid falls while it is scratched in the form of

thin-film on the heat-transferring surface of the cylinder’s inner walls so it is

thickened and dried. Evaporated water is emitted through the top of the cylinder.

(See Serial No.10)

<Dehydration under Reduced Pressure by Oil Temperat ure>

Dehydration under reduced pressure by oil temperature dries sludge by using oil

as medium for the dehydration under reduced pressure in a container.

Dehydration equipment using reduced pressure by oil temperature, which is

introduced in this report, uses heated oil as thermal medium for dehydration to

extract only water content from raw garbage or sewage sludge under reduced

pressure. It is possible to preserve organic elements in sludge (such as nutrients

and caloric elements) and to convert them into ingredients for feed, fertilizer and

fuels. (See Serial No.02)

<Flush Drying System>

Flush drying system uses high temperature airflow to transport and dry sludge.

The flush drying system, which is introduced in this report, makes sludge

compulsorily collide with supersonic flux of steam and heat air. The collision

generates shock waves to crush and shred sludge. The system can maximize

evaporation surface space to thicken and dry sludge effectively. (See Serial

No.32)

<Vacuum Drier>

Vacuum drying is a technology to accelerate dehydration by reducing pressure in

a container to lower evaporation temperature. A vacuum dehydration machine,

which is introduced in this report, can simultaneously implement drying, stirring,

crushing and shedding. In this machine, sludge is put into a cylinder-shaped

sealed container, where sludge is compulsorily stirred with internal rotation fans

after being heated at low temperature by vapor. Evaporated water clings to the

circulating biological treatment tank filled with special filtering materials. It

removes odor from evaporated water and washes it before it is discharged. (See

26

Serial No.33)

<Screw Press-type Dehydration Equipment>

Screw press dehydration is a technology to extract the water content by

squeezing sludge with a screw and cylindrical filter while transporting the sludge

with the screw.

Screw press-type dehydration equipment, which is introduced in this report,

integrates a screw and a cylindrical filter as a one-unit tilted tube. In the front-end

process, sludge is thickened in the lower part of the equipment and then

dehydrated in the upper part. Cylindrical filter has a unique structure that can

prevent the filter from being clogged. (See Serial No.34)

<Carbonization Equipment>

In carbonization technology, sludge is steamed and carbonized so that carbon

contained in sludge can be recovered as charcoal. The carbonization equipment,

which is introduced in this report, is a rotary furnace with external and internal

cylinders. Sludge is supplied into internal cylinder and carbonized sludge is

removed from the external cylinder. In internal cylinder, sludge is heated and

carbonized by the agitating blades and the combustion heat of dry distilled gas.

After being completely carbonized in external cylinder with oxygen free condition,

heating stops so that carbonized sludge can be cooled. (See Serial No.35)

4-3-3. Category C: Improvement of Water Quality in Public Water Bodies

Measurement and Monitoring

It is very important to exactly measure and track water condition and quality on a

real-time online basis in order to ensure effective operation and control of water

treatment systems.

<Automatic Water Quality Monitor>

Automatic water quality monitors, which integrate functions required for the daily

measurement and monitoring of multiple items in a single unit, are being used

for the adequate water utilization in dams, rivers and other water bodies. (See

Serial No.20)

<Transparency Meter>

Transparency meters for the measurement of transparency of treated water are

used to evaluate how adequately wastewater treatment facilities designed

27

mainly for the removal of turbid material are daily controlled. Recently, real-time

systems for the measurement of transparency have been commercialized. (See

Serial No.13)

<Sludge Density Meter>

In sludge treatment, sludge density meters are used to measure sludge density

exactly and to provide feedback to control systems instantaneously. Currently,

there are optical, ultrasound and microwave methods, but they have still

problems to be solved such as susceptibility to effects of sludge conditions and

temperatures. So, there is a demand for the development of highly reliable

sensor technologies. So far, it has been difficult to measure blackish sludge.

Recently, new measurement systems have been commercialized based on the

automatic calibration of the effects of sludge colors. (See Serial No.12)

4-3-4. Category D: Water Purification

Coagulating Sedimentation

Coagulating sedimentation is a wastewater treatment technology that is most

frequently used in industry sectors. Coagulating sedimentation devices remove

fine particles suspended in water through two processes; coagulation and

sedimentation. Generally, inorganic or organic coagulants are added to

neutralize electric charge of fine particles for coagulation and to separate grown

flocs through a sedimentation process or other processes.

<Magnetic Separation Type Water Treatment Device>

Magnetic separation type water treatment devices use a newly developed

technology to generate flocs from polluted substances with fine magnetic iron

powder and coagulants and to separate them through super-conducting magnet.

(See Serial No.03)

5. Business and Distribution Situation

5-1. Environmental Equipment (Water Pollution Contr ol Equipment)

Industry in Japan

28

5-1-1. Production Figures

Sewage treatment, sludge treatment, human excreta treatment, and other

facilities are mainly for public projects of public demand. Production of sewerage

treatment systems is largely governed by government policies in the planning of

sewerage works projects. In the late 1990s, this reached 400 billion yen a year,

but in the 2000s when sewerage systems had spread more, the number of new

large-scale projects fell and production also plunged.

On the other hand, industrial wastewater treatment facilities are mainly for

private demand. Production runs at an annual 50 to 100 billion yen a year and is

easily affected by toughening of water quality regulations and business trends.

5-1-2. Production Value (by Type, Capital, and Dema nd Sector)

According to a survey by the Japan Society of Industrial Machinery

Manufacturers (JSIMM), production of water pollution control equipment by type

in fiscal 2005 consisted 75% of public demand for sewage treatment, sludge

treatment, human excreta treatment, etc. Private demand for industrial

wastewater treatment only accounted for 17%.

Production of water pollution control equipments, waste treatment and recycling

equipments, air pollution control equipments, and other environmental

equipments as a whole reached about 1 trillion yen in fiscal 2004. Viewing this by

the capital (size) of the members of the JSIMM and by the demand sector, the

large corporations account for a large share of the public demand and small

businesses account for a high share of private demand. Export production is

concentrated at the large corporations.

Small businesses seldom serve as the main contractors for production for public

demand and seldom export. This means they serve not only as the main

contractors for production for smaller private demand but also as subcontractors

in the multi-tiered production systems of the large corporations when

participating in the market.

29

Production for Water Pollution Control Equipment by Type

30

5-1-3. Trends in Number of "Specified Factories"

"Specified factories" are factories or other places of business equipped with

facilities covered by wastewater regulations of the Water Pollution Control Law

and are specifically defined by the enforcement regulations of that law.

The specified factories are the main market for industrial wastewater treatment

equipments. The number of these factories had increased from the 1980s on,

31

but peaked in the late 1990s and subsequently has been declining. In terms of

volume, the breakdown of the wastewater discharged from these factories in

fiscal 2004 shows that about 87% of them discharged less than 50 cubic meters

per day, that is, the vast majority of these factories discharge little wastewater.

The market for wastewater treatment equipments of small sized factories is

extremely small in terms of the value of individual projects, but is extremely large

in terms of the number of equipments. This is a promising market for small

businesses that are better than large corporations in terms of footwork.

32

Number of "Specified Factories" (FY2004)

33

5-2. Form of Orders in Environmental Equipment Indu stry

5-2-1.Relationship of Main Contractors and Subcontr actors

In the field of water treatment equipment and other environmental equipments, it

is extremely rare for a single company to handle everything from receiving

orders to making deliveries. Manufacturers of plants, equipments, devices, parts,

and materials all put their individual expertise to form main/sub contractor

relationships.

Form of Orders of Environmental Equipments

(Relationship of Main Contractors and Subcontractor s)

Sometimes the same party simultaneously receives orders for several tiers of a

single project and sometimes simultaneously proceeds with different tiers of a

number of projects.

The company receiving the order at the higher tier is in charge of the on-site

installation of the plant and systems, trial runs, and other handover work. The

lower tier companies usually contractually finish their jobs when delivering their

products. However, when the final user is overseas (export production), even the

34

subcontractors are required to have the ability and organization to suitably

handle problems after the start of use and requests for maintenance.

5-2-2. Features of Market and Form of Orders

In the public demand market, waterworks, sewerage, human excreta treatment,

and other water treatment facilities are mainly ordered using the national and

local governments’ budgets, forming a comparatively stable market in the

medium and long term. Therefore, many large corporations and specialized

companies have entered the field. These large corporations and specialized

companies target receiving orders as main contractors in their sales activities.

Orders for public demand are mainly issued based on the performance

proposed or through competitive bidding by nominated firms. These systems

present high hurdles to small businesses and new entrants.

In the private demand market, specialized technologies and know-how are

sought from diverse industrial fields. Numerous companies have entered the

market. Environmental equipments are non-production facilities, so lower costs

are strongly demanded. Under recession conditions, they are easily the targets

of cost cutting in investment. The market therefore features tough competition

and is strongly governed by economic fluctuations.

Orders for private demand are usually issued to firms meeting user's

requirements of specifications (performance), price, and delivery. Due to the

need for sophisticated expertise and cost competitiveness and the need for

dealing with specific unique needs, this is a market where small businesses,

which have unique strengths in technologies and products and the ability to keep

costs low, can be sufficiently active.

5-3. Features of Overseas Business From Companies I nterviewed

5-3-1. State of Overseas Business

In the construction of overseas factories by Japanese companies, both

production facilities and environmental protection facilities are required. For

small Japanese businesses manufacturing and selling water treatment related

systems, construction projects for local factories of overseas Japanese

subsidiaries (hereinafter referred to as "end users") are important.

35

The products of water treatment related systems are contracted out as part of

the factory facilities to the main contractors (plant manufacturers, engineering

companies, etc.) by the end users to construct the plants. They are built into the

facilities in Japan or on site, or are delivered to the end users or main contractors

through trading companies. That is, almost all are indirectly exported.

Some companies are fabricating the design drawings and key parts in Japan and

fabricating other parts and assembling the systems as a whole on site overseas,

while others are using the overseas bases of other Japanese firms to plan

business expansion.

For small businesses which are interested in overseas business, most promising

markets are China and the other developing countries. In particular, China is

behind in the deployment of water pollution control equipments. With

international events such as the Beijing Olympics and the World Exposition

approaching, construction of infrastructure (flush toilet facilities in the cities,

measures for solving the water shortages in the inland areas, etc.) has become

urgent. For this reason, demands for water treatment equipments are expected

to begin skyrocketing in a few years. Some Japanese small businesses are

studying how to set up local marketing and production systems in China with an

eye on establishing sales bases and manufacturing bases in that country.

The 35 companies interviewed for this survey are interested in the following

regions and countries as export or investment destinations. Figures in

parentheses show the number of interested companies.

-Regions: Southeast Asia (2), Europe and the U.S. (1)

-Countries: China (13), South Korea (8), Taiwan (8), Thailand (4), U.S. (3),

Malaysia (3), Canada (2), Germany (2), Singapore (2), Philippines (2), Indonesia

(1), Vietnam (1), Russia (1), U.K. (1), France (1), Mexico (1), Belgium (1), South

Africa (1)

The water treatment related system industry is most interested in the

environmentally advanced countries of Europe and the U.S. as export and

investment destinations, but is also interested in the nearby East Asia and

Southeast Asia, particularly China, South Korea, Taiwan, Thailand, and Malaysia

in that order.

36

5-3-2. Competition and Market Entry

The local production in Japan involving all processes from the procurement of

materials to the production of final products would raise costs and deteriorate

price competitiveness. Direct exports are therefore difficult for many businesses.

To overcome this disadvantageous situation, the following methods are being

considered:

-Providing technologies based on patents and know-how to overseas companies.

Securing profits not through production of hardware, but through straight sales

of software and royalties.

-Designing systems in sizes able to be transported by standard specification

containers and modularizing finished products to deal with long distance

transport and reduce local construction costs.

-Procuring materials and parts able to be inexpensively acquired on-site in those

countries or exporting semi-finished products and assembling them by

knockdown locally so as to reduce overall manufacturing costs.

-Supplying only the core mechanical parts through licensees or trading

companies and procuring the rest of the parts locally. In this case, it is

necessary to set up a system for providing local technical guidance and

overall operational guidance.

Further, entry into overseas markets involves the following problems inherent to

water treatment related systems:

-In the case of processes requiring treatment by microorganisms, for example, it

is important to understand the effects of any local inhibitory substances on the

microorganisms.

-To obtain satisfactory treatment performance, it is necessary to set design

specifications in advance to meet with the local situation. For this reason,

overseas production is more time consuming than production in Japan and the

specifications become hard to set.

-When exporting microorganisms from Japan, certification of safety are required

in quarantine.

-In the case of plant construction, time is taken for confirmation of performance

after delivery and therefore payment becomes slower, so sometimes direct

export overseas is difficult financially.

-In the case of businesses in China, water treatment companies from Europe

and the U.S. have already entered the market. They are engaged in low cost

37

local production, and have secured market shares.

-In China and Southeast Asia, low cost Japanese products copies (for example

membrane module) are circulating.

-When exporting equipment or systems including pressure vessels overseas, it

is necessary to obtain certification of compliance with the standards of the

export destinations (U-STAMP authorization for the manufacture of pressure

vessels of the American Society of Mechanical Engineers (ASME), GB150

authorization for the manufacture of steel welded pressure vessels in China,

PED CE MARK directive on pressure vessels of the EU, etc.)

6. Results of Questionnaire Survey: Case Studies of Japanese

Technologies and Products

Table B shows 120 technologies and products based on the responses to the

questionnaire survey. The "serial numbers" in the "Technologies & Products"

column of the table match with the serial numbers of the case studies in "4-3.

Examples of Technologies/Products for Water Pollution Control and Water

Purification".

6-1. Interest in Overseas Business

The companies on this questionnaire survey have experienced overseas

businesses in 45 of the 120 technologies and products. In the case of 35 items,

they have not experienced with overseas businesses but would like to consider

in the future. In total, 67% of them were interested in the overseas market.

Interest in Overseas Business (120 Technologies and Products)

38

6-2. Technologies and Products by Category

If using the four categories of this survey to analyze the 120 technologies and

products, category B (Water Pollution Control) accounts for 92, the greatest

amount, category A (Water Use for Daily Life and Production Activities) for 44,

category C (Water Quality in Public Water Bodies) for 34, and category D (Water

Purification) for 13.

Technologies and Products by Category

See Appendix <Table B> Results of Questionnaire Sur vey: Japanese Water

Pollution Control and Water Purification Technologi es and Products (P42)

39

Appendix <Table A> Categorization of Technologies f or Prevention of

Water Pollution, Water Purification and Technologie s/Products

40

41

42

Appendix <Table B> Results of Questionnaire Survey : Japanese Water

Pollution Control and Water Purification Technologi es and Products

43

44

45