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EU Business and Biodiversity Platform Workstream 2: Innovation for Biodiversity and Business Water micropollutant treatment innovations from SUEZ (constructed wetlands) and Dryden Aqua (Activated Filter Media) – ANALYSIS OF THE OPPORTUNITY October 2015 Author: Guy Duke Contributing authors: Samuel Martin (SUEZ), Howard Dryden (Dryden Aqua)

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EU Business and Biodiversity Platform Workstream 2: Innovation for Biodiversity and Business

Water micropollutant treatment innovations from SUEZ (constructed wetlands) and Dryden Aqua (Activated Filter Media) – ANALYSIS OF THE OPPORTUNITY

October 2015

Author: Guy Duke

Contributing authors: Samuel Martin (SUEZ), Howard Dryden (Dryden Aqua)

2

1 BASIC INFORMATION

1.1 Companies and contact points

(A) SUEZ

Contact: Samuel Martin, Division Manager, Wastewater Treatment & Recovery, Cirsee -

Innovation & Business Performance

Email: [email protected]

Web: www.suez-environnement.com

(B) DRYDEN AQUA

Contact: Howard Dryden, CEO

Email: [email protected]

Web: www.drydenaqua.com

1.2 Summary of the opportunity

This analysis addresses two distinct innovations relating to the treatment of micropollutants

in water: (A) Constructed wetlands – SUEZ, (B) Activated Filter Media – Dryden Aqua.

(A) SUEZ

ZHART in particular, and constructed wetlands in general, offer potential for substantial

benefit to businesses, including promoters, those buying in the technology, and those

supplying related services. They offer significant potential benefit to biodiversity and

ecosystem services through the expansion of wetland habitats. Demand is expected to grow

significantly in the short to medium term as a result of regulatory developments at both EU

and national scales. The innovation is reasonably scalable and likely to become increasingly

feasible.

(B) DRYDEN AQUA

AFM offers potential for substantial benefit to Dryden Aqua as a business and to water and

wastewater treatment companies taking up the technology in terms of cost efficiencies and

improved water quality. It offers potential for significant reduction of micropollutant pressures

on biodiversity in freshwaters and the marine environment. The technology is highly

scalable. There are barriers to up-scaling for drinking water in Europe but less so for

municipal waste water, industrial waste water and process water treatment in Europe, and

less so for all uses in Asia.

OVERALL

These two cases provide examples of innovations that can make a significant difference to

the presence of micropollutants in the environment and the resultant pressures on

biodiversity and human health. These innovations, and others to reduce micropollutants in

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the environment, are likely to have increasing growth potential as policy and regulatory

controls on micropollutants become more stringent in order to address the huge costs

micropollutants impose on human and environmental health.

1.3 Description of the innovation

(A) SUEZ

The ZHART project is a 28 months project (2012-2015) to develop innovative techniques

based on nature for processing micropollutants (endocrine disruptors, drug residues,

hazardous substances, etc.) with a positive impact on ecological diversity. ZHART (‘Zone

Humide Artificielle’ - Artificial Wetland) specifically aims at developing and industrializing

such structures at the output of (urban) wastewater treatment plants (WWTP) to convert

them into tertiary/ fourth stage waste treatment areas, ensuring the elimination of

micropollutants and protecting ecological diversity. This contributes to implementation of the

EU Water Framework Directive (WFD) that aims to restore the quality of the aquatic

environment by requiring that listed priority substances disappear from the water by 2028.

Some of these substances have been shown to jeopardize the survival of ecosystems and/or

affect human health.

Public private partnership

ZHART is a private sector initiative but its application is likely to involve partnership with the

public sector in many instances.

(B) DRYDEN AQUA

Dryden Aqua (DA) up-cycle green container glass to manufacture a water filtration media

that replaces sand in the treatment of urban and industrial wastewater and drinking water.

DA processes up to 40,000 tonnes per annum of glass and manufacture sufficient filter

media AFM (Activated Filter Media) to supply the whole of the water industry in the UK. AFM

works much better than sand, removing up to 10 times more sub 5 micron particles and will

eliminate parasitic infection from Cryptosporidium, which causes 2% of all disease in Europe

and over 50% in the developing world. Given that the finest grade of AFM (grade 0) can filter

water down to 1 micron with no coagulation or flocculation, it could potentially eliminate over

60% of all disease in the developing world. AFM is also used in wastewater treatment to

remove solids. European environment agencies do not monitor priority chemicals in

suspension, yet more than 90% of chemicals are bound up in solids discharged by

wastewater treatment facilities.

Public private partnership

DA works in partnership with the public sector. For example, in Scotland, DA works with the

public sector for the supply of nearly 100% of glass feedstock materials, and is also trying to

establish community enterprises to assist with the collection of glass (an approach likely to

work well, not only in Europe, but in countries such as India). DA works with public sector

water companies in Scotland and Ireland to deliver water treatment. In China DA is now

looking at a joint venture to construct glass bottle recycling facilities and to provide

technology for water treatment. Dryden Aqua has to work with the public sector in most

cases to secure its glass supplies as well as in the fields of municipal wastewater and

drinking water treatment.

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Figure 1 Constructed wetland ZHART © SE Eau France 2015

Figure 2 Activated Filter Media © Dryden Aqua 2015

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2 SCALE OF THE POTENTIAL OPPORTUNITY FOR BUSINESS

2.1 Estimate of the potential market size in Europe to 2020 and beyond

(A) SUEZ

In France, while the directives do not yet require the implementation of specific treatment for

micropollutants by WWTPs, controls on outflows have been mandatory since 2011 for

WWTPs with a capacity of >100,000 population equivalents (PE) and since 2012 for those

with a capacity of >10,000 PE. In Switzerland, around 100 WWTPs are required to achieve

an average purification rate of 80% in relation to raw water for some indicator substances

(including some household chemicals, medicines and biocides).1

The EU does not require that wastewater treatment plants treat micropollutants. However,

potential market size in Europe is largely driven by the WFD2 (as amended by Directive

2013/393), which sets targets and standards in relation to chemicals in surface waters. In

particular, it requires Member States to achieve ‘good chemical status’ of surface waters by

2028, specifically to meet specific EU environmental quality standards (EQSs) in relation to

listed priority substances, and to meet nationally set EQSs for ‘river basin specific pollutants’.

Priority substances and ‘river basin specific pollutants’ are predominantly micropollutants.

While not designed to remove micropollutants, pre-treatment (removal of coarse wastes,

skimming of fat and grease), primary treatment (removal of suspended solids) and

secondary treatment (degradation of biological content) do remove some micropollutants by

adsorption onto particulate matter, biological transformation, volatilisation or abiotic

transformation. A recent review of the fate of more than 160 micropollutants in WWTPs4

found that while relatively hydrophobic pollutants (such as heavy metals, persistent organic

pollutants, brominated flame retardants, several personal care products, and easily

biodegradable pollutants such as surfactants, plastic additives, hormones, several personal

care products, some pharmaceuticals and household chemicals) are relatively efficiently

removed (>70%) by primary or secondary treatment, this does not mean that the effluent

concentrations will not potentially affect aquatic life as some of these compounds are toxic at

very low concentrations. Moreover, more hydrophilic and poor-to-moderately biodegradable

pollutants (such as several pharmaceuticals, pesticides and household chemicals) are only

poorly removed during treatments. The review recommended greater source control

combined with advanced treatments (of which ZHART is one example) to decrease the

discharge of micropollutants into surface waters.

Tertiary wastewater treatments are typically focused on removal of biological nutrients,

nitrogen and phosphorus. There remains a need, therefore, for a fourth treatment stage

capable of removing micropollutants more effectively. Constructed/artificial wetlands such as

ZHART are one solution to this need.

The potential size of the market for constructed wetlands for micropollutant treatment of

urban wastewater can be estimated in relation to the number of urban wastewater treatment

plants (WWTPs). A 2003 paper gave a total of 15,000 WWTPs for France of which 80%

1 Margot, J., Rossi, L., Barry, D. and Holliger, C. (2015). A review of the fate of micropollutants in wastewater treatment plants. WIREs Water 2015. doi 10.1002/wat2/1090 2 Directive 2000/60/EC of the European Parliament and of the Council of 23 October 2000 establishing a framework for Community action in the field of water policy. 3 Directive 2013/39/EU of the European Parliament and of the Council of 12 August 2013 amending Directives 2000/60/EC and 2008/105/EC as regards priority substances in the field of water policy. 4 Margot, J. et al. (2015). Op cit.

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were under 2000 PE.5 The necessary wetland area for a WWTP of over 50,000 PE would in

most cases be too great. Assuming that all those between 2000 PE and 50,000 PE will

eventually require micropollutant treatment, there is a potential need for up to 3000

constructed wetlands in France. However, it is perhaps likely that any eventual legal

requirement to remove micropollutants will concern only larger WWTPs, reducing this

number considerably. Moreover, much of the market is likely to be taken by intensive

treatments such as ozonation or activated carbon. Overall, it seems unrealistic to target

more than around 300 WWTPs in France.

A 2013 market study found a total of 71,000 WWTPs operating in the 28 EU Member States,

Iceland, Norway and Switzerland.6 Applying similar reasoning to that used for France, it may

be reasonable to target around 1000-1500 of these for constructed wetlands. Consequently,

the total market size for constructed wetlands in Europe is probably around €500 m. This

figure relates to construction only. Running and maintenance costs increase the market size.

(B) DRYDEN AQUA

AFM is manufactured in Scotland. A second production facility is planned for the Netherlands

and a third in China over the next 2 to 3 years. Between Dryden Aqua Technology in

Scotland and Dryden Aqua Distribution in Switzerland, DA currently turns over in excess of

€5 million per annum. A modest projection of the potential EU market is well in excess of €50

million per annum and more than €100 million per annum globally.

2.2 Costs and availability of substitutes

(A) SUEZ

The main current technologies for the removal of micropollutants from urban wastewater are

oxidation by ozone and activated carbon adsorption.7 Both are reasonably mature

technologies and are available commercially, for example, from Degrémont, SUEZ’s experts

in water treatment, Degrémont claim up to 95% of micropollutants can be removed through

the single or combined use of its tertiary filtration treatments. Oxidation by ozone has the

disadvantage that it produces unknown reactive byproducts, some of which can be more

toxic than the original micropollutants. Some micropollutants are also resistant to breakdown

by ozone. A recent pilot study in Switzerland8 however found the two technologies effective

in removing most of the micropollutants studied with average efficiency of around 80%. The

cost of these two technologies was calculated at €0.16 - 0.18 per m3 compared with current

total wastewater treatment costs in Switzerland of €0.54 per m3, thus adding around 30% to

the costs. This translated to an additional cost of €20 per year per citizen.

Constructed wetlands are likely to be cheaper over the long-term, especially considering low

operating costs, and may be equally effective in removal of targeted micropollutants. ZHART

achieves a reduction in concentrations of >70% for more than half of the identified

micropollutants.9

A wide range of low cost adsorption materials may offer future alternatives to ozonation,

activated carbon and constructed wetlands. These include natural materials (wood, coal,

5 C. Boutin, A. Lienard. (2003). Constructed wetlands for wastewater treatment: the French experience. 1st international seminar on the use of aquatic macrophytes for wastewater treatment in constructed wetlands, May 2003, Lisbon, Portugal. p. 437 - p. 466. https://hal.archives-ouvertes.fr/hal-00508191/document 6 Research and Markets. (2013). Market Study Municipal Wastewater Treatment Plants in Europe (Analyst Version). http://www.researchandmarkets.com/research/djcdzb/market_study 7 Degrémont & Suez Environnement. (2014). Micropollutants: Anticipating Future Challenges. 8 Margot, J. (2015). Micropollutant removal from municipal wastewater – from conventional treatments to advanced biological processes. These no. 6505 (2015). Ecole Polytechnique Federal de Lausanne. 9 Penru, Y, Schuehmacher, J., Blin, E., Di Pietro, F., Amalric, M., Bacchi, M., Budzinski, H. and Martine Ruel, S. (2014). Integrated constructed wetlands for micropollutants removal and biodiversity promotion. Proceedings of IWA World Congress, Lisbon, 21-26 September.

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peat, biomass, clays, etc.), agricultural/domestic wastes (nutshells, fruit stones, lignin,

sawdust, etc.) and industrial wastes (blast furnace slag, sugar mill waste, palm oil ash, fly

ash from coal power stations, sewage sludge, etc.). However most of these have limitations

that remain to be overcome.10

(B) DRYDEN AQUA

AFM competes with a range of other technologies depending on the precise nature of the

micropollutants. In cases where AFM alone can provide a complete answer the simplicity of

the installation reduces the cost of treatment to a fraction of the capital cost of ozonation and

other sophisticated treatment technologies. In cases where ozonation might complement

AFM use there will generally be a significant reduction in ozone demand with proportionate

reduction in cost.

In comparative accredited laboratory tests none of the other glass or sand media that are

available on the market even come close to the performance of AFM. They also do not carry

a significant surface charge and cannot therefore be considered as a substitute for use in

micropollutant removal.

2.3 Contribution to tackling risks facing business (including policy risks)

(A) SUEZ

Given the WFD requirements to achieve good chemical status of surface waters and to

achieve quality standards in relation to specific priority substances and specific ‘river basin

specific pollutants’, increasing pressure may be put on businesses such as SUEZ having

responsibility for wastewater treatment. While, in the first instance, national governments

bear the risk of EU-imposed infraction penalties should good chemical status for surface

waters and quality standards for priority substances not be achieved, this risk could be

passed on to companies with responsibility for wastewater treatment, especially after

mitigation measures at the source have been taken. ZHART and other artificial/constructed

wetland solutions for micropollutant removal from urban wastewater will help businesses to

tackle this policy-driven risk.

Requirements relating to the removal of micropollutants from wastewater, and consequently

the risks to wastewater treatment businesses, are likely to expand to a greater range of

micropollutants and more stringent standards over time. The 2013 amendment of the list of

priority substances (Directive 2013/39) resulted in the addition on 12 more substances. The

EU NORMAN network has identified over 1000 ‘emerging substances’ (substances which

have been detected in the environment, but which are currently not included in routine

monitoring programmes at EU level and whose fate, behaviour and (eco)toxicological effects

are not well understood).11 The next review of priority substances, to be completed in 2017,

is likely to again expand the list. Other examples of these emerging substances are likely to

appear in future ‘river basin specific pollutant’ lists.

(B) DRYDEN AQUA

As noted above in relation to SUEZ, there is a likelihood of increasingly stringent

requirements relating to the release of micropollutants in to the environment, increasing the

policy/regulatory risks for many industries, including industries producing micropollutants, the

wastewater and the drinking water industries. The use of AFM can help these industries

tackle these risks.

10 Gupta, V., Carrott, P., Ribeiro Carrott, M., and Suhas. (2009), Low-Cost Adsorbents: Growing Approach to Wastewater Treatment—a Review, Critical Reviews in Environmental Science and Technology, 39:10, 783-842,

DOI: 10.1080/10643380801977610 11 NORMAN network of reference laboratories, research centres and related organisations for the monitoring of emerging environmental substances. www.norman-network.eu

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2.4 Financial viability of the opportunity (source of profit, risk/reward balance)

(A) SUEZ

The financial viability of the opportunity is currently difficult to assess. It will be determined by

the costs of putting in place and maintaining constructed wetlands compared with the

alternative solutions, the extent to which these costs may be passed on to clients, and the

extent to which constructed wetlands can deliver the necessary reduction in micropollutants

and thereby reduce the risk of non-compliance with relevant WFD requirements. The

financial viability of constructed wetlands increases dramatically if revenue can be captured

for other ecosystem services that these wetlands supply, including groundwater infiltration,

biodiversity and disinfection.

(B) DRYDEN AQUA

The AFM innovation is already delivering a substantial return on investment for Dryden Aqua

and offers substantial growth potential. AFM also offers cost-efficiencies for businesses

applying AFM technology for water/wastewater treatment, compared with conventional

treatments. Cost savings are on many levels from energy savings to water consumption in

backwash. As an example AFM requires only 50% of the quantity of backwash water when

compared to sand. AFM lifespan is also easily double that of sand and comfortably exceeds

10 years. Over 95% of conventional water treatment uses sand; AFM replaces sand and can

double the performance of the treatment plant. AFM is therefore considered to be a

disruptive technology that has the potential to transform the industry.

2.5 Potential demand underpinning the opportunity (number of beneficiaries and values to them)

(A) SUEZ

The potential demand underpinning the use of artificial/constructed wetlands to reduce

micropollutants in wastewater is largely determined by the regulatory framework of the WFD

and its requirements and standards to be met for good chemical status of surface waters,

priority substances and ‘river basin specific pollutants’. As additional micropollutants will very

likely be added to the lists of priority substances and ‘specific river basin pollutants’ over

time, and as Member State governments are required by the EU to adopt programmes of

measures, apply the standards, and achieve good chemical status of surface waters related

to these substances, demand for cost-effective innovations to reduce micropollutants in

wastewaters is expected to increase. Looking ahead to the future, this demand is likely to

extend beyond wastewater treatment for micropollutants, to treatment for nanoparticle

pollutants.

Individual EU Member States and other European countries may also strengthen controls on

permissible micropollution levels in effluents from larger WWTPs or WWTPs discharging in

to more sensitive areas, as has been seen in France and Switzerland, thereby further

increasing demand.

There is a growing concern relating to endocrine disruptors in the environment (e.g. pressure

from the French Government,12 and a recent EC consultation on endocrine disruptors13) and

this may lead to stronger regulation in future on micropollutants in wastewater, though trade

interests may oppose this.

Potential beneficiaries of the wider use of constructed wetlands for the removal of

12 France urges ‘quick action’ on endocrine disruptors. http://www.euractiv.com/sections/science-policymaking/france-urges-quick-action-endocrine-disruptors-302726 13 European Commission. (2015). Report on Public consultation on defining criteria for identifying endocrine disruptors in the context of the implementation of the Plant Protection Product Regulation and Biocidal Products Regulation. http://ec.europa.eu/health/endocrine_disruptors/docs/2015_public_consultation_report_en.pdf

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micropollutants will include: Member States, regional and local governments (who can meet

EU regulatory requirements at lower cost and reduce risk of infraction), public and private

sector companies required to meet EU standards and targets (who will benefit from

constructed wetlands as a lower cost solution), a wide range of businesses offering products

and services for the creation and maintenance of constructed wetlands (designers, installers,

consultancies, suppliers, researchers, operators) and the general public (health benefits from

reduced exposure to micropollutants, other ecosystem service benefits from the constructed

wetlands, e.g. amenity, flood control).

(B) DRYDEN AQUA

The market for AFM potentially extends to all treatment systems for both wastewater and

drinking water, and there are clear indications that there is substantial interest from major

polluters in taking up the technology on a significant scale. For example, DA has secured the

largest textile wastewater treatment plant in Bangladesh operated by DIRD in Dhaka (the

new AFM treatment facility will be online in March 2016). 10% of all the wastewater in China

is from the textile industry and the template developed in Bangladesh may be applied to

China. Tests are in progress with Dragon Steel in Taiwan and China Steel to treat all of their

wastewater. Dragon steel treat and try to recycle 18,000m3 per hour of water, about 1% of

the wastewater in China. As regards drinking water treatment, DA has also been awarded

the province of Sichuan in China in co-operation with the Chinese Government, LMC and

Empyreal Environmental in Beijing to use AFM for treatment of the water supply to 80 million

people; the first systems will be installed by November 2015. Over 1 million people are on

AFM drinking water systems in Africa and the company is starting to remove arsenic from

water in India.14 AFM is also used in the swimming pool market. DA already has AFM in 80%

of the swimming pool industry in Switzerland, 30% in Germany.

14 see www.eco-india.eu

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3 SCALE OF REDUCED RISKS OR POTENTIAL GAINS TO NATURE

3.1 Scale (size and trend) of the externalities involved and urgency of response required

(A) SUEZ

The salient externalities in relation to constructed wetlands are the costs, not captured by the

market, to wildlife, environmental and human health arising from the presence of

micropollutants in the environment, which might otherwise be avoided through use of

constructed wetlands for their reduction and removal. These externalities are probably

increasing as the release of micropollutants in to the environment increases. It is difficult to

put a monetary value on these costs. However, a recent relevant estimate is available for a

sub-set of these micropollutants, those known or suspected to have endocrine disrupting

(ED) properties (that is, when ingested or absorbed, they can mimic, block or otherwise alter

the activity of hormones, thereby disrupting normal growth and development.15 ED chemicals

are of high societal concern due to: (a) high incidence and increasing trends of many

endocrine-related disorders in humans; (b) observations of endocrine-related effects in

wildlife; (c) evidence of chemicals with ED properties linked to disease outcomes in lab

studies.16 The burden and disease costs of exposure to ED chemicals in the EU has recently

been estimated at €157 billion annually (1.23% of EU GDP).17

This high cost suggests there is great urgency for an effective response. Clearly, wastewater

treatment is only a part of the necessary response (reducing emissions at source being

another key part), but it is likely to be an important part, as wastewater is one of the principal

routes through which micropollutants enter the environment.

(B) DRYDEN AQUA

As for SUEZ.

3.2 Feasibility of managing the biodiversity and/or ecosystem services and speed and predictability with which they respond to management

(A) SUEZ

There is a substantial and growing body of knowledge and practical experience in creating

and managing constructed/artificial wetlands, including for wastewater treatment of

micropollutants, as well as for biodiversity and/or other ecosystem services.18

(B) DRYDEN AQUA

The innovation itself does not involve management of biodiversity and/or ecosystem

services. The mechanisms of the biodiversity and ecosystem services positive response to

the use of AFM technology (and consequent reduction of micropollutant pressures) are too

complex to be calculable.

15 Schug, T., Blawas, A., Heindel, J. and Lawler, C. (2015). Elucidating the Links Between Endocrine Disruptors and Neurodevelopment. Endocrinology 156: 1941–1951. 16 Bergman, A. et al. (2013). The Impact of Endocrine Disruption: A Consensus Statement on the State of the Science Environ. Health Perspectives 121(4), A104-106. 17 Trasande, L. et al. (2015). Estimating burden and disease costs of exposure to endocrine-disrupting chemicals in Europe. J Clin. Endocrinol. Metab. 100(4), 1245-1255.

18 See, e.g. Constructed Wetland Association resources webpage on www.constructedwetland.co.uk

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3.3 Assessment of scale of benefits to be realised - estimated in suitable metrics (monetary, quantitative, qualitative)

(A) SUEZ

Benefits to biodiversity and ecosystem services include: (1) providing effective tertiary water

treatment thereby reducing micropollutant impact on nature; (2) providing additional wildlife

habitat; (3) opportunities for environmental awareness and biodiversity; (4) aesthetic

contribution to homes and neighbourhoods; (5) other ecosystem services including flood

control and carbon storage.

The business plan of the ZHART project, which is limited to the French territory, forecasts

the sale of 35 ZHART of 2 hectares each on average which would contribute to the creation

of about 70 hectares of high quality wetland areas. Assuming ZHART is eventually applied

to 2% of the WWTPs in France (at least 300, probably somewhat more as this figure relates

to 2003), this would create 600 ha of wetland. If constructed wetlands were required on 2%

of the 71,000 WWTPs in the 28 EU Member States, Iceland, Norway and Switzerland, this

would result in the creation of 1420 new wetlands of average 2 ha each, a total of about

3000 ha of new wetland. This would be a fair contribution to restoration efforts and to

enhancing habitat connectivity and resilience to climate change.

The extent of the benefit to biodiversity and the impact of micropollutants on the biodiversity

of these wetlands are not yet known. SUEZ is working with partners to assess the impact on

biodiversity based on a set of indicators.

However, as regards the principal purpose of removing micropollutants, a study19 of the

capacity of a full-scale reclamation pond-constructed wetland system (in NE Spain) to

eliminate 27 emerging contaminants (i.e. pharmaceuticals, sunscreen compounds,

fragrances, antiseptics, fire retardants, pesticides, and plasticizers) found that the

constructed wetland (61%) removes emerging contaminants significantly more efficiently

than the pond (51%), presumably due to the presence of plants (Phragmites and Thypa) as

well as the higher hydraulic residence time. The overall mass removal efficiency of each

individual compound ranged from 27% to 93% (71% on average), which is comparable to

reported data in advanced treatments (photo-fenton and membrane filtration). The seasonal

average content of emerging contaminants in the river water (2488 ng L−1) next to the water

reclamation plant is found to be higher than the content in the final reclaimed water

(1490 ng L−1), suggesting that the chemical quality of the reclaimed water is better than

available surface waters.

(B) DRYDEN AQUA

The impact of AFM to date on biodiversity is probably marginal and highly localised, with

most AFM use currently relating to swimming pool and aquaria treatment. However,

widespread take-up for the treatment of urban and industrial wastewater could make a

substantial contribution to reduction of priority substances in the freshwater and marine

environments (DA aims for zero chemical discharge with AFM as part of the solution).

Priority substances impact on human health and biodiversity and reduce primary productivity

in the oceans. The oceans are responsible for up to 90% of our oxygen and CO2 fixation, yet

from NASA and other reports, we have lost up to 40% oceanic primary productivity since

chemicals started to be manufactured in the 1950’s. Oceanic pH is declining as a

consequence, and in 25 to 50 years is projected to reach pH 7.9. This will cause a trophic

cascade collapse of the entire oceanic ecosystem.20 This puts at risk all fish, whales, birds,

seals and the food supply for 1.5 billion people. There is a need to address priority

substances and AFM can be a significant part of the solution. For example, the textile

19 Matamoros, V. and Salvadó, V. (2012). Evaluation of the seasonal performance of a water reclamation pond-constructed wetland system for removing emerging contaminants. Chemosphere, 86(2), 111-117.

20 See, for example: http://www.thenakedscientists.com/HTML/articles/article/ocean-acidification

12

industry in Bangladesh and China accounts for 2-3% of global waste water and a high

percentage of PAH pollution. Application of AFM to the entire textile industry in the region

could substantially reduce PAH input to fresh and marine waters, with significant resulting

benefits for biodiversity and marine ecosystem services including carbon fixation. In addition,

AFM replaces the use of filter sand. Most filter sand is obtained from dredging the seabed

and rivers, which causes major damage to the environment (in some countries such as India,

filter sand mining is banned). Ordinary sand used to make glass is less problematic

environmentally, because conventional quarries are employed. AFM thus protects delicate

marine ecosystems from the impact of dredging.

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4 EASE OF IMPLEMENTATION AND PRACTICAL OPPORTUNITIES FOR ENABLING GROWTH OF THE INNOVATION

4.1 Scalability and transferability of good practice

(A) SUEZ

The ZHART project has been developed to function in French climatic conditions, which

encompass a broad range of climates. It is therefore likely that it can be adapted to most

parts of the EU. As suggested above, if micropollutant treatment were to be required for all

WWTPs in the EU, this would create demand for about 1500 constructed wetlands. This

suggests significant opportunity for SUEZ to derive growth and profits from ZHART. The

technology and knowledge appears transferable to other EU MS and there is a growing body

of experience and good practice in the development of artificial wetlands for wastewater

treatment (e.g. disseminated by the US EPA21).

(B) DRYDEN AQUA

The AFM technology itself is highly scalable in that unit production costs are likely to

decrease as volume grows. There is very significant potential for growth of the company

given the scale of the demand outlined above and its early mover position in big emerging

markets such as India and China. Good practice is highly transferable across an industry

once the technology has been tried and tested in a front-runner. Indeed, every successful

AFM market has required a test case in order to develop confidence in the market. A sound

test case and application protocol is all that is needed thereafter to develop the market.

4.2 Opportunity for public sector leveraging of private sector activity

(A) SUEZ

There is considerable potential for public leverage of private activity, through expanding the

EU list of priority substances and the regional lists of ‘river basin specific pollutants’ and

strengthening EQSs, as well as through policy support for constructed wetlands as a

preferred solution.

(B) DRYDEN AQUA

As for SUEZ, there is considerable potential for public leverage of private activity in the EU,

through expanding the EU list of priority substances and the regional lists of ‘river basin

specific pollutants’ and strengthening EQSs. The need to attain ‘good environmental status’

(GES) in the marine environment by 2020 under the Marine Strategy Framework Directive

will be an important driver. GES includes that human activities introducing substances into

the marine environment do not cause pollution effects. Descriptor 8 ‘Concentrations of

contaminants are at levels not giving rise to pollution effects’ is most pertinent in this

respect.22 The public sector could also provide support through policy support for AFM

technology, mechanisms to help SMEs access multinationals and NGOs, and common

standards and certification (ETV) accepted by the water industry (currently SMEs have to go

through testing with every single client).

4.3 Proximity to any policy window offering opportunity for change

(A) SUEZ

Demand for fourth treatments such as artificial/constructed wetlands will increase in

particular as a wider range of micropollutants are added to the EU list of priority substances.

21 http://water.epa.gov/type/wetlands/restore/cwetlands.cfm 22 http://ec.europa.eu/environment/marine/good-environmental-status/descriptor-8/index_en.htm

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The current list is laid down in Directive 2013/39 (adopted 2/7/14), which amended the

relevant parts of the 2006 Water Framework Directive and the 2008 Environmental Quality

Standards Directive, adding 12 new substances to the list including herbicides, pesticides, a

fungicide and the persistent organic pollutants PFOS and Dioxin. The Directive requires that

Member States achieve good surface water chemical status in relation to all substances on

the list by 22 December 2027. The standards come into effect from 22 December 2018 and

Member States will be required to establish and submit to the Commission a supplementary

monitoring programme and a preliminary programme of measures covering these

substances by the same date. The third cycle river basin management plans will contain

measures, which have to be operational by 22 December 2024, to be taken in order to try

and achieve good chemical status in respect of these substances. There is thus window of

opportunity to advocate constructed wetlands for micropollutant treatment of urban

wastewater as one such measure for inclusion in MS programmes of measures.

Further, Article 1(1) of Directive 2013/39 states that ‘The Commission shall review the

adopted list of priority substances at the latest four years after the date of entry into force of

this Directive and at least every six years thereafter and come forward with proposals as

appropriate.’ The next review is therefore expected by 2/7/17. There is thus a policy window

between now and mid 2017 to consider the addition of further micropollutants (which may in

part be reduced using constructed wetlands for wastewater treatment) to the list of priority

substances.

(B) DRYDEN AQUA

As regards policy windows related to the Water Framework Directive and Environmental

Quality Standards Directive, see the entry for SUEZ, above. As regards the Marine Strategy

Framework Directive, Member States are required to review their Marine Strategies and

communicate results relating to GES every six years; the next round of review and reporting

(in 2018) together with the Commission’s evaluation, due in 2019 at latest, offers a policy

window to highlight any continuing micropollutant problems and the need for more effective

solutions such as the AFM innovation. The MSFD will be reviewed by 2023.23

4.4 Presence of leaders or innovators and/or 3rd party brokers and intermediaries (can providers and beneficiaries be connected?)

(A) SUEZ

SUEZ is innovating with its ZHART project, and there are a number of other innovators

working on constructed wetlands for wastewater treatment in the EU. For example, the

Constructed Wetland Association24 in the UK has many members listed as designers,

installers, consultancies, suppliers, researchers and operators. Another grouping, Global

Wetland Technology25 has member companies in Austria, Belgium, Denmark, France,

Germany, Italy and the UK as well as outside the EU.

(B) DRYDEN AQUA

Dryden Aqua is clearly the leader in AFM technology. There is considerable scope to

facilitate connection between DA and potential beneficiaries in a range of industry sectors

generating micropollutants.

23 Marine Strategy Framework Directive, In: Farmer, A.M. (2012) (ed.). Manual of European Environmental Policy.

1043pp. Routledge, London. http://www.ieep.eu/assets/1504/5.3_Marine_Strategy_Framework_Directive_-_final.pdf 24 www.constructedwetland.co.uk 25 www.globawettech.com

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4.5 Feasibility of overcoming any barriers

(A) SUEZ

Barriers to development of ZHART in particular and constructed wetlands more generally as

a solution to micropollutants in wastewater include: (a) land use restrictions; (b) public

perception of wetlands; (c) ecological sensitivity to climate conditions; (d) lack of strong

regulation on micropollutants; (e) lack of recognition of constructed wetlands as wastewater

treatment processes to be included in tenders. These barriers can be addressed by enabling

actions including: stronger regulations on micro pollutants concentration in effluents; stronger

regulations on environmental impacts of waste water treatment plants; implementation of a

European program on wetland restoration; communication of the benefits of constructed

wetlands to the general public.

(B) DRYDEN AQUA

The water industry is highly risk-averse. Most new technology comes out of SME companies,

yet it takes a minimum of 10 years to get a product to market with the water companies; no

SME can cope with this time scale. AFM was first made available in 1998. Despite the

proven advantages of the technology and the various forms of accreditation and certification

that have been awarded, AFM is still a long way from being used routinely by the key

stakeholders in the drinking water and wastewater treatment business. As a consequence

the water industry is some 20 years behind current technology. DA has now reached a size

and position that it can start to have some influence. For example, DA works with the

Scottish Hydro Nation Committee, the NGO Scottish Water and the Scottish Government to

understand that barriers placed on SME companies that restricts the adoption of SME

technology in Europe. The group are now providing support and some of the barriers being

removed. DA finds the developing world much quicker to adopt new technology because the

problems and issues are much more serious (if 80% of your population suffer from disease

from drinking water, then you deal with the problem). With regards to effluent, DA is working

with Empyreal Environmental and Aqua Solutions from Hong Kong, companies that are fully

aware that the economy is not sustainable unless the environment is protected. This is why

DA is now providing some very large-scale installation in China and Bangladesh.

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5 UNDERPINNING ECONOMIC CASE FOR THE INNOVATION

5.1 Existing cultural, regulatory or market management structures, including direction of travel

(A) SUEZ

There is a strong existing culture, regulatory and market management structure for

wastewater treatment and a clear direction of travel in the treatment of pollutants in

wastewater, which over the last 100 years has progressively addressed the removal of solids

(1920s), the removal of biological carbon (1950s), the removal of ammonium, nitrates and

phosphates (1960s-90s), treatments for heavy metals (2000), and more recently increasing

attention on pathogens and micropollutants. In future, this is likely to extend further, to

nanoparticles.

(B) DRYDEN AQUA

A strong environmental commitment on the part of governments and regulatory authorities

worldwide indicates that the market can only expand. In countries such as China and India

where pollution of the water table has reached crisis levels there is increasingly intense

pressure to deliver cost effective solutions to their pollution problems. In Europe the pace of

change is much slower as motivation for change is often cost driven and based on direct

measurement of the impact of pollutants rather than the accumulation of their indirect but

very substantial economic consequences.

5.2 Underpinning rationale for the specific business model linked to market failures (public goods, information failures etc.)

(A) SUEZ

The underpinning rationale for the innovation of constructed wetlands is linked to the market

failure to fully value chemically clean (micropollutant-free) water. This is linked to length of

time it takes to fully understand and communicate the risks relating to a huge and growing

range of micropollutants in water.

(B) DRYDEN AQUA

As for SUEZ, the underpinning rationale for the AFM innovation is linked to the market failure

to fully value chemically clean (micropollutant-free) water.

5.3 The economic case for actions to enable the business opportunities

(A) SUEZ

As noted above, the burden and disease costs of exposure to ED chemicals in the EU has

recently been estimated at €157 billion annually (1.23% of EU GDP). This figure alone

suggests that there is a very strong economic case to enable business opportunities to take

forward application of constructed wetlands for the removal of micropollutants from

wastewater. An additional economic case can be made from an ecosystem services

perspective. The creation of 3000 ha of new wetlands across Europe would deliver a wide

range of ecosystem services, including biological diversity, pollination services, enhanced

flood control, groundwater recharge, enhanced amenity, etc., delivering a wide range of

direct use, indirect use and non-use values.26

26 Lambert, A. (2003). Economic Valuation of Wetlands: an Important Component of Wetland Management Strategies at the River Basin Scale. http://conservationfinance.org/guide/guide/images/18_lambe.pdf

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(B) DRYDEN AQUA

AFM technology has the potential to reduce the estimated €157 billion annual burden and

disease costs of endocrine disrupting chemicals in the environment. Hutton Research in

Dundee Scotland have confirmed that AFM can remove Oestrogen hormone, and DA can

also manufacture AFM that has high specificity to remove other endocrine disrupters from

drinking water at parts per billion concentration.27 A strong economic case can also be made

in relation to the risks posed in the marine environment, in terms of averting the potential

collapse of marine ecosystems and the reduction in marine capacity to fix atmospheric

carbon, both of which would have serious consequences for the global economy.

27 AFM works by mechanical filtration for particles larger than 40 microns and by electrostatic adsorption for the sub 40 micron particles. The activation process of AFM is by a SolGel technique that we use to shape the aluminosilicate surface structure. Surface area is increased from 3000m2 to 1,000,000m2 per metric tonnes. DA can change the molecular sieve adsorption selectivity of AFM. Research is underway to further increase surface area and molecular sieve selectivity.