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Seattle Mariners pitcher Felix Hernandez.
Seattle Mariners pitcher Felix Hernandez. By using sensors and software, the Mariners’ home stadium has cut its water costs by 10% over three years. Photograph: Joe Nicholson/USA Today Sports
Seattle Mariners pitcher Felix Hernandez. By using sensors and software, the Mariners’ home stadium has cut its water costs by 10% over three years. Photograph: Joe Nicholson/USA Today Sports

Surge in tech investment shows the days of cheap water are over

This article is more than 8 years old

Water management technology is in demand as businesses and homes try to cope with drought and mandatory cuts in water use

US baseball team the Seattle Mariners has been putting its grounds on a water diet for the past three years. With roughly two million fans passing through its stadium and restrooms, as well as a grass field to maintain, this is no mean feat. But by using sensors and software to analyse water use in real time, the baseball team’s maintenance crew has found effective ways to conserve water.

“There was a month in the off season when we saw a large spike in water use that didn’t make sense,” says Joe Myhra, groundsman for the Mariners. “We were able to look at data and realised we had a leak in one of the fire hydrant lines. The leak wouldn’t [otherwise] have been visible until it was too late.”

The team’s efforts, which include installing low-flow toilets and only hosing down sections of seats and walkways used by fans during the most recent game, have cut consumption by just over 2m gallons and water costs by 10% over three years, says Myhra, reflecting a growing interest from businesses in making use of sensors and data analytics software to conserve water.

That interest has been driven partly by the drought plaguing swaths of western US. In California, now in its fourth year of drought, Governor Jerry Brown recently issued a mandatory 25% consumption cut from the 2013 levels for homes and businesses.

The rising cost of water

Historically water has been cheap and the full costs of producing and piping it to homes and businesses haven’t been reflected in their bills. Instead, water utilities have funded rising expenses by issuing bonds or raising taxes. Sometimes utilities, especially those with publicly elected boards, defer the maintenance of their equipment because raising taxes or rates is unpopular with voters.

But the need to upgrade ageing infrastructure and pay for securing new water resources is pushing up water rates. In fact, residential water rates in 30 major US cities increased faster than the cost of almost all other regular household expenses in 2014, according to a survey by Circle of Blue, a nonprofit water resources research group.

“Water has been neglected because it’s taken for granted,” says Gary Wong, a principal at OSIsoft, which supplies the Mariners with water analytics software. “As the price of water increases or the scarcity increases, people are paying more attention to it.”

Tech solutions

Tech companies and fund managers have reacted by investing in companies that make smart meters, sensors and software that track and analyse water consumption. Spending on water technology worldwide is predicted to jump from $15bn (£9.7bn) in 2010 to $25bn by 2018, says Global Water Intelligence, a UK research firm.

Using technology to monitor water use and create a conservation game plan isn’t new. Many heavy water users, such as mining companies, chipmakers or soft drink producers, have long investigated ways to reduce wasteful consumption or increase water availability, says Peter Williams, chief technology officer of IBM’s energy and environmental technology unit.

Chipmakers, for example, must use pure water in their factories, which typically need several million gallons per day, Williams adds. “They invest in technology for recycling and reverse osmosis, which is incredibly energy intensive. They have every possible incentive to do it.”

As the cost of water increases, there is a growing financial imperative for medium-sized companies to also invest in water monitoring technologies.

Water entrepreneurs

As well attracting the attention of companies that use water, the drought and water rate increases are spurring entrepreneurs who see an opportunity to sell their technology to such businesses.

Texas-based Banyan Water, whose customers include American Airlines, has been helping businesses rein in excessive irrigation of their outdoor spaces since 2011. The company installs hydrometers and tipping bucket rain gauges, analyses water use and rainfall, and implements an irrigation schedule by remotely controlling customers’ sprinkler systems.

Banyan’s algorithms can figure out optimal water use by collecting information such as past water bills and the types of plants and their locations, says Gillan Taddune, chief executive of Banyan. “We give you visibility on how much money you can save,” she adds.

Washington-based Apana, founded in 2012, markets its sensors, telemetry equipment and data analytics software to retailers and other commercial and industrial building managers. The company’s technology can not only track and analyse water use in real time, but also isolate leaks, says Matt Rose, Apana’s CEO. The data collected can help customers see their consumption patterns and figure out, for example, what the optimal water use for key pieces of equipment or different parts of operations should be, he adds.

Apana’s primary customer is Costco, which has installed dozens of its systems and seen water savings of about 20%, says Rose.

“Ninety-nine percent of building owners use water bills as a water management tool,” Rose adds. “If your water bill doubles, where do you look for problems? You want to catch it on the spot instead of learning it a month or two down the road.”

  • You can read our full ‘water in cities’ series here


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