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Novozymes is a leading global player in the biotechnology industry with enzyme manufacturing activities. Novozymes had also smaller water technology business focused on the use of enzymes and particular bacterial strains to enhance performance.

Novozymes wished to carry out a very detailed map of how biotechnology could present growth technologies in the water sector. BlueTech carried out a detailed review mapping biotech opportunities including use of enzymes, bacteria, microbial encapsulation technologies, and bio-augmentation in areas including wastewater treatment, drinking water treatment, and groundwater treatment.

We carried out a review on current state of the art in the areas of biotechnology, including biomimetic membranes, removal of merging containments, using targeted bacterial strains and enhancements and efficiency improvements in waste water treatment plant operations. We then analysed a number of potential acquisitions targets to determine whether Novozymes enzymes should grow organically or inorganically to exploit biotech opportunities in water. On the basis, of this analysis a strategic decision was taken to focus on internal organic R&D to develop new products and solutions to expand Novozymes’ business in water.

Client Needs:

The client required support in the valuation of two main parts of a publicly traded holding company, a desalination company and a municipal wastewater treatment business, that were targets for an acquisition. The client requested validation of internal financial modelling and a market analysis as well as participation in meetings with third parties related to the transaction. The required market analysis comprised of a competing technology review and market valuation with potential for territory expansion. Finally, a review of the potential business model was required which included potential to transition business models, identification of unique value propositions, and the best model to address anticipated sales cycles.

Our Approach:

For both targets, analysis of existing and targeted markets was completed including size, growth rate, profitability, competitive intensity, contract types, and perceived reception of the existing business model. Information which informed the developed financial models was sourced through internal and client specific databases, along with voice-of-industry interviews with market experts, advisors, and potential customers.

Availability of addressable customer targets was assessed by creating an inventory of upcoming municipal wastewater & desalination projects which could become a business opportunity. A review of studies performed on the target’s market positioning was also carried out.

Finally, The success of the target’s top competitors in executing similar strategies was evaluated along with the target’s competitive positioning.

Results:

The resultant study gave the client confidence in the valuation of the holding company, allowing them to make an informed bid in a short window of exclusivity. BlueTech’s analysis served as the ultimate stamp-of approval within the client’s internal investment committee, and to external parties throughout the underwriting process.

Due diligence project on a US-based reverse osmosis membrane filtration company. This included site visits to operational facilities, review of operational data, and a interview with on-site operators and industry experts. The study also included an assessment of the competitive advantage and IP positions for the technology.

The client was launching a new water business division as part of a diversification strategy
and was a new entrant to the water sector. BlueTech reviewed the water strategy and supported the development of a merger and acquisition pipeline. This involved screening and ranking over 300 companies (including systems integrators, OEM’s and EPC Contractors) to determine fit and suitability with the overall water market strategy. A short-list of candidates was reviewed in detail and rated based a number of factors including ease of acquirability, ease of integration and fit with strategy.

Due diligence project undertaken on a super critical water oxidation technology in advance of an IPO. The study included site visits to demonstration facilities, review of operational data, inspection of the plant design and plant equipment and interviews with plant operators. Included in the study was an assessment of the business plan, and business model, and expert opinion on the capital and operational cost estimates and the size of the addressable market.

Technology due diligence project on a South African Ultrafiltration Company. The project reviewed claims made by the technology company and validated these against performance data. This included visiting production facilities in South Africa as well as operational plants in the mining sector. Further to the technology validation an IP study was undertaken to determine if the IP was unique and represented an integral part of the company’s value. Finally a supporting market report was completed to identify the membrane market size and potential growth rates.

Due diligence project on an ultrafiltration membrane company. This included site visits to operational facilities, research interviews with customers and plant operators. The study analysed the membrane companies position in emerging markets such as beer filtration and seawater desalination pre-treatment. Voice of the customer research interviews were conducted to determine what influenced the buying decision, be it price, performance, technology differentiation, reputation, after sales service, commercial terms, etc.

The client was looking to identify solutions that could enable them to hit a target of drying
sludge to >40% dry solids.

The client needed to know what technologies existed that could achieve this, how many
references were operational, and what the capital, operational and TOTEX costs were. The
goal was to open up new avenues for creating value from wastewater sludges, including
energy recovery.

The outcome: The client was able identify solutions that as part of an overall process,
including pre-treatment, allowed them to achieve their targets.

This project was focused on understanding customer perceptions and experience in the US
Municipal Market with respect to sludge dryer technology. This was primarily a “Voice of
Customer” exercise, focusing on interviewees from both end-users of sludge dryers (sludge
generators and 3rd party processors) and other potential decision makers in the value chain
(i.e. major consulting engineers whom may be specifying sludge dryer projects).

Generation of a detailed report summarizing the current methods of treating stormwater in
the US, Canada, Europe and Asia. Estimation of the size of the current stormwater market in
said countries. Completion of a comprehensive list of companies currently providing
stormwater treatment technologies. Analysis of new and innovative technologies to treat
stormwater and future trends within the technology area also included. Emerging
contaminants that may impact the future of stormwater treatment were documented.
Analysis of incoming legislation or changes to current legislation also included.

The main goal of this project was to provide our client with a clear overview of the biosolids
market in several strategic industries and regions around the globe (with market analysis on
the municipal and industrial sludge markets). The study assessed the biosolids market potential in the regions analyzed, outlining key drivers (regulatory, public perception, sludge quality, odour and reliability of disposal options), sludge volumes produced, predominant technologies being utilized in processing and an overview of disposal/beneficial reuse practices.

The client had discovered a low energy path nutrient removal technology suitable for use in MBR systems. The study evaluated the data provided to determine the value proposition in wastewater treatment applications. Competitive analysis to identify any competing solutions was carried out.

The study analyzed a range of options for bringing this technology to the market, including conversion of existing MBR treatment facilities based on an annual fee derived from shared savings in operational costs. Recommendations were provided on steps that could be taken to build a defensible IP position around the technology. Potential partners were identified as part of the study.

BlueTech facilitated a process to define a joint pipeline strategy to meet aggressive financial growth targets in 3-5 years. Ten priority opportunities were prioritized, which met the criteria for a balanced pipeline. The Client required the opportunities to be commercially robust and described in sufficient detail to accelerate short-term and medium-term growth.

Acquisition candidates were identified, validated and incorporated into a plan for execution.

Identification and screening of target wastewater treatment plants for nutrient recovery technology, which resulted in some of the first contracts being awarded.

Preparation of a detailed analysis of the biosolids management market in North America, China and Europe. This report analysed market drivers, competing technologies and helped the company formulate its go to market strategy and close a round of funding for $35M.

Client Needs:

To review possible technologies suitable for treating specific waste streams from the beverage bottling process including Clean-in-Place (CIP) wastewater produced after each flavour change and a “Warmer Water” cleaning loop (greywater). The goal was to identify innovative treatment technology options to maximize water reuse while minimizing cost and making use of available energy in the wastewater via biogas production from the high BOD waste streams. This approach was to be compared to a traditional aerobic biological treatment approach.

Our Approach:

BlueTech set out to review suitable technology and develop an economic model for several possible treatment trains. A technology horizon scan was provided based on BlueTech’s internal Innovation Tracker database, subject matter expert interviews, and patent searches, followed by rationale as to why solutions were selected or rejected. Vendors of selected technologies were contacted for cost estimates based on water quality and flows of several treatment train scenarios. A model was produced that detailed expected treated water quality, sludge production, biogas production, chemical use, labor, and capital investment of each unit operation of several treatment options for the two waste streams of interest.

Results:

Through this work, BlueTech determined that the target waste streams lacked the necessary organic loading to be effectively and economically treated for carbon upcycling and energy recovery. An innovative water reuse treatment train was identified and the client proceeded to demonstration scale work with an innovative ceramic membrane vendor that BlueTech had prioritized and recommended following the study.

Client Needs:

As part of the client’s Water Stewardship initiative, the client was interested in identifying and developing innovative technological solutions focused on de-risking water treatment and water recovery challenges at various assets. The client provided summary overviews for 13 distinct challenge areas across its various assets, ranging from management of near-capacity tailings ponds, pit water, contaminated groundwater, and the need for increased efficiency in legacy zero-liquid-discharge systems. The overall objective was to identify and leverage technology solutions to drive a step-change reduction in water-related risks and/or materially improve cost efficiencies to enable water re-use opportunities.

Our Approach:

The BlueTech team helped complete a “water technology scan” focused on identifying the current landscape of emerging and existing innovative water treatment solutions that could potentially achieve the targeted objectives for the various asset challenges. The scan spanned a huge variety of categories, including biological, chemical, electro-chemical, evaporative, membrane, and ion exchange among others. Upon completion of the divergent scan, our team of subject matter experts conducted a “challenge area – solution mapping” exercise to identify which technologies should be shortlisted for each mining asset/challenge area based on technology readiness, cost, experience in mining applications, and several other factors. BlueTech provided advance preparatory materials and co-facilitated multi-stakeholder workshops with the client, operations teams and external consultants, to discuss the shortlisted technologies and potential treatment trains for the various challenge areas one-by-one. For each asset site, a further shortlisting of technology options was developed out of the workshop for the client to focus on going forward.

Results:

Following the final workshops, the client was armed with a shortlist of 3-5 technologies to be assessed at each asset site from an original list of around 200 different technologies. The client proceeded to undertake site-specific bench and/or pilot-scale trials to further assess the potential of the prioritized technologies in the specific applications. This will ultimately inform decisions regarding technology selection for full-scale deployment.

BlueTech’s client was a large German manufacturing company and a leading global filtration specialist, with more than 80 locations worldwide, over 20,000 employees, and sales revenue of over €3.5Bn

The Client’s Needs

While the Client Company had core strengths in air and diesel filtration in the automotive industry, the Client was launching a new water business division as part of a diversification strategy and was a new entrant to the water sector. The Client wished to expand into the water filtration space using membrane technologies and required strategy development support.

Our Approach

To identify the best sectors to fit their expansion strategy, BlueTech assisted the Client in analysing and mapping the overall water technology market and prioritised the areas of opportunities.

The potential acquisition targets were identified to support an inorganic growth strategy. The identified targets were put through a stage gate review process.

BlueTech reviewed the water strategy and supported the development of a merger and acquisition pipeline. This involved screening and ranking over 300 companies (including systems integrators, OEM’s and EPC Contractors) to determine fit and suitability with the overall water market strategy. A short-list of candidates was reviewed in detail and rated
based a number of factors including ease of acquirability, ease of integration and fit with strategy.

The results of the research were presented in a form of an interactive workshop that included additional insights into the potential acquisition targets and post-integration strategy.

Results

Enabled by the conducted research, the Client has successfully established a presence in the water industry through a series of informed acquisitions.

Reviewed the water strategy plan for a large industrial client launching a new water business division as a new entrant to the water sector. A workshop was facilitated by BlueTech with experts from our Technology Assessment Group (TAG).

Critical feedback was provided on the strategy for internal growth through R&D and growth through acquisitions.