Name of Project – Confidential Client
Problem
This firm developed a technology designed to remove nitrate from drinking water in a very cost effective manner. The California water market represented an ideal market for implementation of this technology given the widespread nitrate contamination of groundwater and high cost and limited availability of alternative sources of supply. Municipalities, water districts/agencies and mutual water companies tend to be extremely risk averse and slow to implement new technology. The firm lacking contacts in the industry engaged WCG to assist in introducing the technology to the California market with the goal of finding a client willing to assist with a pilot or demonstration project to allow the California Department of Public Health to provide conditional approval for use in respect of California drinking water.
Process Method and Customer or Industry Needs
Given WCG’s industry contacts, we identified a mutual water company whose groundwater supply had been impaired with nitrate contamination and which had to purchase water at a significant premium from a wholesaler to satisfy customer demand. After working with this mutual water company to fully understand their needs, WCG introduced the nitrate technology with the goal of advancing the goals of the technology company and help solve the water company’s problem of nitrate contamination while reducing overall costs.
Solution and Performance
WCG arranged for the technology company to install a small scale pilot project to demonstrate the technology’s ability to effectively remove nitrate from the water company’s contaminated groundwater supply. After a successful pilot project, WCG helped the technology company negotiate a contract that allowed the company to implement a demonstration project (slightly larger size than the pilot) to allow the California Department of Public Health (CDPH) to provide conditional approval of the system. At the same time, a 20-year DBOO operate contract was negotiated allowing the technology company to install a full-scale system upon CDPH conditional acceptance on commercial terms that provided an equitable return for the technology company and reduced operating costs for the mutual water company as well as a secure water supply.
Benefits (Customer or Industry Benefits Delivered) –
- Pilot project secured
- Demonstration scale project secured
- 20-year DBOO project negotiated