Water and Sustainable Cities: Business Opportunities in the USA, China & India

1. Water and Sustainable Cities: Business Opportunities in the USA, China & India AnuRamaswami, PhD Denny Chair Professor of Science Technology and Environmental Policy Humphrey School of Public Affairs University of Minnesota anu@umn.edu

2. Comparing Opportunities • USA • Aging Infrastructure • Interest in the Water-Energy Nexus as Cities engage in Sustainability Planning • China & India • Lack of adequate infrastructure • Severe water scarcity requiring both government, NGO and private sector efforts • Relatively large infrastructure funds

3. Water Infrastructure USA • The US Department of Commerce estimates that for every dollar spent on water infrastructure about $2.62 is generated in the private economy. • For every job added in the water workforce, about 3.68 jobs are added to the national economy (Source: AWWA) • Water Infrastructure Financing Innovation Act (WFIA) needed, • Act currently in the senate – introduced spring 2013

4. Aging Infrastructure USA • “More than a million miles of pipes are nearing the end of useful life and approaching the age at which they need to be replaced. • These replacement costs combined with projected expansion costs will cost more than $1 trillion over the next couple of decades”. (Source AWWA: Buried No Longer) • Issues and Opportunities • Water Main Breaks • Water Leakage, Leak detection • Sub-Metering • Pipe Materials (PVC, Iron, various linings) • Trenchless pipe installing/replacement technologies

5. City Infrastructure Sustainability & Resiliency Plans: Water-Energy Nexus • Ramaswami research group has developed a community infrastructure supply chain energy use and greenhouse gas (GHG) emission footprint for cities. • This method is now being institutionalized in ICLEI-USA protocols for cities to report their GHG emissions – both within the boundary and trans-boundary • Water and wastewater related GHG emissions contribute about ~1% to 3% of US cities’ infrastructure related GHG emissions  environmental sustainability • Climate impacts on water  resilient design

6. A Trans-boundary Infrastructure Supply Chain GHG Emissions Footprint - Denver • It is not about “Carbon or GHGs”, but about understanding each city uniquely • The convergence of natural resources and infrastructures to support human activities in cities • Makes explicit cross-infrastructure interactions • Begins to address water-energy-materials-GHG nexus From: Ramaswami et al., Environ. Sci. Technol, 2008; Hillman & Ramaswami, Environ. Sci. Technol., 2010

7. GHG Contributions Within the City Boundary (Scope 1) Plus Electricity (Scope 2) Water-Wastewater Sector – larger relative impact in India Miller and Ramaswami, ASCE J Env. Engg., 2012

8. Opportunities in India and China

9. Population Growth Continues • China and India’s population constitutes 30% of the world total and is still increasing, although slower than previously. http://www.csiro.au/en/Portals/Multimedia/On-the-record/Megan-Clark-presentation-20100602-innovation-minerals/Australian-production-and-ore-grades.aspx

10. Water Scarcity in India and China • India1 • 80% water needs fulfilled by groundwater that is depleting at an alarming rate • Children in 100 million homes lack access to piped water • China2 • The second lowest per capita water resources in the world • 300 major cities face water shortage • Per capita water availability in North China is 10% of world average • WATER-ENERGY nexus is critical in both countries, creating competition between water needs for municipalities, power generation, industry needs and agriculture 1. Zeenews, India and thewaterproject.org 2. http://www.wri.org/publication/content/8414

11. Compounding Factors • Depleting water sources and uneven distribution • In India, per capita water availability reduced by 20% in 2001-20111 • In China, a water deficit of 200 billion m3 is projected for 20302 Pic (left) http://blogs.worldwatch.org/nourishingtheplanet/reforming-energy-subsidies-could-curb-indias-water-stress/water-india-big-2/ Pic (right) http://www.china.org.cn/environment/2012-03/23/content_24967237.htm 1. Press Information Bureau, Government of India 2. Cost of Pollution in China, World Bank

12. Compounding Factors • Inadequate wastewater treatment infrastructure and technology • In India, 69% municipal wastewater is not being treated (2012)1 • In China, 40%municipal wastewater is not being treated (2007)1 and half of the discharged industrial wastewater do not meet permit2 Pic(left) http://www.sikhnet.com/news/worlds-highest-recorded-pharmaceutical-levels-entering-indias-water-supply Pic (right) http://www.habitatadvocate.com.au/?p=21821 1. Aquastat database 2. wri.org

13. Critical Water Challenges Affect Economy (India): Stimulate Private Sector Water Efforts Tata Steel Ltd., India’s biggest maker of the alloy, is setting annual targets to cut water usage as two-thirds of the country faces a scarcity. Photographer: Scott Eells/Bloomberg

14. Critical Water-Energy Challenge (Example China) The water challenge facing China’s coal and power sector is “inescapable” Wai-Shin Chan 08.07.2013 Many of China’s coal operations are water-inefficient and could constrain future growth, suggests Wai-Shin Chan of HSBC Coal to chemicals (including Ammonia) is also at risk https://www.chinadialogue.net/article/show/single/en/6187-The-water-challenge-facing-China-s-coal-and-power-sector-is-inescapable-

15. New $4.5M NSF PIRE Award at UMN • NSF PIRE: Developing Low-Carbon and Sustainable Cities in the USA, China and India through Interdisciplinary Integration • PIRE Partnerships for International Research & Education • Lead PI: Anu Ramaswami (UMN) • Many Partner Institutions:

16. Benchmarking Studies in India (1): Energy Use for Water Sector in Cities Excluding these outliers, average % of City GHG emissions related to water sector ~3%, can be as high as 6% Miller & Ramaswami, ASCE J. Env.Engg., 2013

17. Benchmarking Studies in India (2): Energy Use in Water Sector mainly for Water Supply Miller & Ramaswami, ASCE J. Env.Engg., 2013

18. Benchmarking Studies in India (3): End-Use Energy Intensity for Water and WW ~1 Wh/gallon for water supply. WW treatment EUEI is less in India Miller & Ramaswami, ASCE J. Env.Engg., 2013

19. What Water for Energy?Water Withdrawal Footprint of Urban Energy Systems • Supply Chain Risks: What happens to a city’s electricity and energy supply in times of drought? • Water Withdrawal Footprints of urban energy supply can describe supply chain risks to cities due to drought • They address the other half of the water-energy nexus • Cohen & Ramaswami, JIE, 2013

20. Water Supply Chain Risks to Energy Supply No electricity for several days in Delhi in July 2012, due to a combination of coal- and water-supply chain disruptions

21. Water Withdrawal Footprint of Denver’s Energy Supply to Explore Energy Supply Disruptions – Cohen & Ramaswami, 2013, JIE (In press) Water for electricity can be as much as 20% of municipal supply – both can be at drought-risk.

22. Infrastructure & Business Opportunities • Government Actions • India- Jawaharlal Nehru National Urban Renewal Mission • China- The 12th Five-Year Plan

23. Mission statement: “The aim is to encourage reforms and fast track planned development of identified cities. Focus is to be on efficiency in urban infrastructure and service delivery mechanisms, community participation, and accountability of ULBs/ Parastatal agencies towards citizens.” --- JNNURM overview, INDIA

24. JNNURM - India • Focus areas • Urban renewal. • Water supply (including desalination plants) and sanitation. • Sewage and solid waste management. • Construction and improvement of drains and storm water drains. • Urban transportation. • Parking lots and spaces. • Development of heritage areas. • Prevention and rehabilitation of soil erosion and landslides in certain states. • Preservation of water bodies.

25. JNNURM - India • Total Investment and Coverage Source: JNNURM compendium

26. Example Projects

27. 12th Five-Year Plan - China • Environment & Clean Energy Targets • Reduce water consumption per unit of value-added industrial output by 30% • Reduce energy consumption per unit of GDP by 16% • Reduce carbon dioxide emission per unit of GDP by 17 % • Increase forest coverage rate to 21.66 % and forest stock by 600 million m3

28. 12th Five-Year Plan - China • Scale of investment by Numbers Billion USD Source: JNNURM compendium

29. Example Project • Full-scale ANAMMOX® at Meihua Biological Sci-tech Co., Ltd. Cost: 120 million USD Over 18,900 m3/d wastewater with ammonium concentration over 600 mg/l needs to be treated. Probably the highest ammonium load in one factory in the world.

30. Summary and Thank You! • There are many opportunities for Technology Development and Infrastructure Investment in the Water and Wastewater Sector in the US and abroad. • How can they be practically and pragmatically harnessed by Minnesota Industries? (Panel Discussion) • Thank You! • Contact: anu@umn.edu