This is the second part of our series on investment opportunities in water solutions. Read Part 1 here, where we discuss the challenges of freshwater scarcity.
Over the next thirty years, global water use is expected to increase by 20 to 50%, driven by population growth, lifestyle changes, development, and agricultural practices.[1] In line with increased water use, wastewater volumes and their level of pollution are also expected to increase. Yet, even at current volumes, 80% of the world’s industrial and municipal wastewater flows back into the environment without being treated[2]. This can result in human health problems, poisoned wildlife, and long-term ecosystem damage.
Untreated wastewater can include many different pollutants, but an increasingly common pollutant is polyfluoroalkyl substances or “PFAS”, more commonly known as “forever chemicals.” The use of PFAS is widespread; they are found in many different consumer, commercial, and industrial products, including clothing, food packaging, and paints. Their widespread use means that they are prevalent in our wastewater, where without treatment, they can flow into the environment through the soil, lakes, rivers and oceans. Many PFAS are now found in the blood of people and animals all over the world and are present at low levels in a variety of human food products[3].
Exposure to PFAS in the environment has been linked to harmful health effects in humans and animals. As a result, regulators around the globe are now implementing stricter standards for wastewater treatment. In 2022, the European Commission announced the update of The Urban Wastewater Treatment Directive to cover a wider range of pollutants and sources of wastewater. This year, the U.S. Environmental Protection Agency (EPA) released Effluent Guidelines Program Plan 15, which outlines how the EPA will work to protect the nation’s waterways by following the science and the Clean Water Act to develop technology-based pollution limits on wastewater discharges from industrial sources.
Investment Opportunities in Water Solutions
Recognizing the need for investment in wastewater treatment solutions, the Nicola Infrastructure and Renewable Resources Limited Partnership (NIRR) has made a co-investment into SAUR, a leading provider of water services management solutions globally.
SAUR’s Municipal Water and Industrial Water businesses are at the forefront of developing and implementing new technologies to remove pollutants from water at scale. For example, their CarboPlus® technology uses activated carbon to remove micropollutants from water. In 2022, SAUR treated more than 550 million m3 of wastewater, ensuring the safe return of water to the environment.
SAUR is present in more than 20 countries and enjoys strong market positions in both Municipal Water and Industrial Water. Saur works alongside thousands of municipalities, primarily in France, Spain and Portugal, to deliver drinking water and collect wastewater for more than 20 million people under long-term contracts. In addition, through its Industrial Water division, the company provides integrated water infrastructure solutions to hundreds of international blue-chip customers in Europe and the United States.
The increasing volume and level of pollution in the world’s wastewater and its impact on health and ecosystems make investment in water solutions critical to our future. By strategically investing in SAUR, NIRR aims to help reduce water pollution while seeking attractive returns for its investors.
This material contains the current opinions of the author and such opinions are subject to change without notice. This material is distributed for informational purposes only. Forecasts, estimates, and certain information contained herein are based upon proprietary research and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Information presented here has been obtained from sources believed to be reliable, but not guaranteed. All investments contain risk and may lose value. Please speak to your Nicola Wealth advisor for advice based on your unique circumstances. This is not a sales solicitation. This investment is intended for tax residents of Canada who are accredited investors. Please read the relevant documentation for additional details and important disclosure information, including terms of redemption and limited liquidity. Nicola Wealth Management Ltd. (Nicola Wealth) is registered as a Portfolio Manager, Exempt Market Dealer and Investment Fund Manager with the required securities commissions.
[1] https://www.dni.gov/index.php/gt2040-home/gt2040-deeper-looks/future-of-water
[2] UN World Water Development Report
[3] United States Environmental Protection Agency
