For the same amount of electricity it takes to power a household refrigerator for a day, a machine called AirQua can produce up to 48 litres of water from thin air. And it is this machine that’s taking homegrown company Aridtec places. Six years after setting up in Singapore, Aridtec’s water generators are now sold in the Middle East, South Africa, the United States and Europe, as well as Singapore. It is one of the many companies that are part of a burgeoning water technologies sector in Singapore.
The water technologies field has taken on steam in the last few years. Since 2006, the Singapore government has committed $330m over five years to promote research and development (R&D) in the area of water innovation. The sector is expected to provide 11,000 jobs and contribute to 0.6 per cent of the Gross Domestic Product (double that of 2003) by 2015.
WATER FROM AIR
One example of a local innovation gone global is Aridtec’s AirQua water generators which convert moisture from the air into water. They retail for about $2,800 each and have been a hit in water-scarce regions such as Africa and the Middle East. It has also scored well in Western markets for being environmentally-friendly, and low on energy consumption and cost compared with bottled water.
“In South Africa, they use it in the mines and it’s perfect because it’s very humid in there and it’s challenging to provide enough water for the miners. Removing the moisture from the air also makes it cooler in the mines,” said Vincent Oh, founding partner and product development manager of Aridtec. In the Middle East, the water generators have been ideal for landlocked regions where there is no seawater for desalination.
The company – set up with $1.6m from angel investors – currently has nine distributors around the globe and is planning to expand into the China market this year. While it has yet to break even, Aridtec hopes to eventually have their own sales offices worldwide. “Having distributors made financial sense at the start, but eventually we hope to bring it down to 50 per cent of our revenue,” said Vincent, naming licensing and diversification into new products as other potential revenue streams going forward.
Chew Hwee Hong, Managing Director, Ecospec
AN EXPANDING VISION
Singapore start-up Ecospec Global Technology chose to broaden the company’s original focus as a water technology firm to provide sustainable solutions to treat shipping waste. Its CSNOx technology (refer to box story on page 7) can also help reduce emissions in the transport, power generation and refinery sectors.
Set up in 2001, Ecospec started with a focus on cooling water systems. But they saw an opportunity in using the treated water to treat industrial waste. “Whatever new research or findings, our R&D practices and policy pay special attention to immediate commercial and industrial concerns and benefits,” said company founder and managing director Chew Hwee Hong. Ecospec’s innovation was timely and well received, and in 2009, the Maritime and Port Authority of Singapore provided $2m in co-funding to research and test-bed CSNOx technology as part of a drive to encourage the maritime industry to go green.
“Smaller companies are just taking on jobs that are too small for companies like Hyflux. We want to carve our own niche.” – Vincent Oh, founding partner, Aridtec
The technology has also been taken up overseas. Last year, the company signed an agreement with Dutch shipping firm ForestWaveNavigation to incorporate its CSNOx technology into the building of six ships to remove carbon emissions from their exhaust. In January, Ecospec inked an agreement with German engineering firm AE&E Lentjes to work on pilot testing projects. The 50-member company estimates it may need a staff of 200 to keep pace with upcoming projects.
THE RIPPLE EFFECT
To support Singapore-based companies in securing projects in key markets overseas, water agency the Public Utilities Board (PUB), International Enterprise Singapore (IE Singapore), as well as the Environment and Water Industry Development Council (EWI), set up under the Ministry of Environment and Water Resources, have been working with foreign governments to identify business opportunities and organise trade missions for local water companies.
IE Singapore also launched the Internationalisation Finance Scheme to help Singapore-based companies acquire fixed assets for use overseas and/or to finance the working capital expenses of secured overseas projects. As Aridtec looks to acquiring complementary companies to increase its distribution channels, funding support for mergers and acquisitions will come in very useful, said Vincent.
Mr Teo Hock Heng, chief operating officer of Dayen Environment, which has been building wastewater treatment systems since 1986, added that events like the annual Singapore International Water Week – of which Dayen is a founding sponsor – help to showcase Singapore companies of all sizes to an international audience to build credential and awareness.
The industry is further supported by several research facilities, including three newly launched environment and water technology centres at Nanyang Technological University. Opened in October 2009, the centres will work with environmental agencies, overseas universities and industry partners in a wide range of areas from membrane technology and environmental management to biotechnology and waste management.
TRIBUTARIES OF GROWTH
One of the driving factors of the growth of smaller local companies is the path already paved by the established players, said Wong Toon Suan, assistant executive director of the EWI, to spearhead growth in the water industry. “The success of Hyflux, Keppel and Sembcorp has helped create awareness in the international markets about the strong technical and managerial capabilities of Singapore-based water companies,” he told Singapore. “Consequently, suppliers and consultants which have working relationships with these companies will benefit from their success. In general, the greater awareness about the success of the Singapore brand will raise the standing of local water companies in the international water industry.”
But while high-profile, made-in-Singapore successes like Hyflux and Sembcorp are testament to the potential of the sector, it appears that new players – tapping new routes and innovations – have no plans to tread the same path. Indeed, the scene today comprises more than 100 companies large and small that deal not only with membrane-based seawater desalination, but also water management consulting, waste-water treatment, water purification, water generation and many other forms of water technology. “We didn’t want to go and fight for a share in the same pie,” said Aridtec’s Vincent. “The smaller companies are just taking on jobs that are too small for companies like Hyflux. We want to carve our own niche.”
HOME-GROWN BREAKTHROUGHS
• ARIDTEC’S AIRQUA WATER GENERATORS
Conceived by the company’s three founders as they looked at condensation on a glass of cold water, AirQua converts water vapour in the air into potable water. This is done using a vapour compression refrigeration system that causes water vapour to condense. The droplets are collected and further purified for drinking. Though not the only “water-from-air” technology, Aridtec claims the machines are ahead in efficiency and quality.
• ECOSPEC’S CSNOX
The technique involves passing seawater through an electrolysis system and spraying the ‘electrified’ water into a special gas chamber that ‘scrubs’ it, breaking down environmentally damaging carbon dioxide, sulphur dioxide and nitrous oxide into their base forms – carbon, oxgen sulphate and nitrate – that can be safely released into the environment.
