8. WWaatteerr--RRiicchh,, WWaatteerr--PPoooorr
• Uneven distribution of water on a global scale
- 6 countries (Brazil, Russia, Canada, Indonesia, China, and
Colombia) account for half of Earth’s freshwater supply
12. Water-energy nexus
• Over the duration of 1
year, production of
electricity to power one
60W incandescent light
bulb would evaporate
3,000-6,300 US gallons
of water.
• In California, water-related
energy use
consumes 19% of
state’s electricity, 30% of
its natural gas, and 88
million gallons of diesel
fuel every year.
13. Virtual water
>90% of most products’ water footprint lies outside a company’s control.
Source: Wall Street Journal
15. Discussion
So how is water like oil? How different?
Similar
•Both are commodities.
•Both are critical inputs to economy.
•Both are unevenly distributed.
•Both require massive infrastructure
and capital investment.
•Both are critical to other systems
(e.g. agriculture, energy) and highly
inter-connected.
•Both are highly regulated.
•Both are factors in global conflict.
Different
•Water is essential for life – part of
the public commons.
•Water is local; oil is global.
•Water is infinitely renewable; oil is
non-renewable.
•Water is highly undervalued.
•Water conflict tends to be erosive
rather than explosive.
16. How to close the gap?
1. Produce more crop per drop.
2. Enhance water productivity.
3. Develop new technologies.
4. Accelerate corporate efforts.
5. Overcome systemic barriers.
17. Produce more crop per drop
The Challenge: Double food production in 40 years with same land & water.
Approaches:
• Create market signals to deliver & apply
water to crops more efficiently.
• Utilize crop & production innovations to
increase yields & reduce resource use.
• Shift diets to satisfy nutritional needs with
less water.
• Consider water in global trade policy.
Source: Amy Vickers and Sandra Postel, “Boosting Water Productivity”, State of the World Report.
20. Enhance water
productivity (China)
• Most of the savings, some $24 billion,
come from industrial efficiency
measures.
e.g. thermal power, wastewater
reuse, pulp/paper, textiles, steel.
• A basin-by-basin approach is needed
to assess the most cost-effective levers.
• Meeting growing water demand will
require a balanced portfolio of levers.
• The water-energy nexus presents
additional challenges and opportunities.
Super-critical coal processing
Coke dry-quenching/waste heat
capture
Renewable energy
21. Develop new water technologies
• Global investment in water infrastructure >$400B annually.
• Pent-up demand.
1. Agriculture
• Drip irrigation
• can reduce water use 30-70% and increase crop yields by 20-90%.
• High-yielding & early-maturing crop varieties, deficit irrigation.
1. Urban/Industrial
• Desalination, sewage treatment, disinfection technologies, filter systems.
• Pervasive monitoring systems; analytics.
• Large market for water efficiency technologies in buildings.
• Integrated solutions for energy/water nexus.
1. Wastewater
• Disinfection technologies & filter systems.
• Waste separation & recycling technologies for households.
Source: Deutsche Bank Report “Global Water Markets: High
investment requirements mixed with institutional risks” (2010)
24. Overcome systemic barriers
1. Financial
• Insufficient access to capital
• High upfront costs and transaction costs
2. Political
• Some interventions disproportionately affect certain constituencies (e.g. dams)
• Subsidies distort price signals, so user doesn’t see true costs.
3. Structural
• Opportunities are fragmented, and it’s difficult to measure savings.
• Limited management capabilities
4. Psychological
• Water has low mindshare, and end-users aren’t aware of benefits.
25. Discussion
"When the well's dry, we know the worth of water."
Contact:
Benjamin Franklin, (1706-1790),
Dr. Daniel Vermeer
Associate Professor of the Practice
Executive Director, Center for Energy, Development, and the Global Environment
Duke University
dv24@duke.edu
(919)660-1966
Poor Richard's Almanac
Sources:
http://www.epa.gov/region9/waterinfrastructure/waterenergy.html
http://www.weforum.org/content/global-agenda-council-energy-security-2011
WATER FOR ENERGY
Liquid Fuels
Traditional Oil: 3-7 liters/GJ
Oil Sands: 70-1,800 liters/GJ
Soy bio-fuel: 50,000-270,000 liters/GJ
Electricity
Thermoelectric: 720-2,700 liters/MWh
Hydroelectric: 17,000 liters/MWh
Concentrating Solar: 2,000-3,500 l/MWh
ENERGY FOR WATER
In the US, running hot water for 5 minutes is equivalent to the energy used for 60W light bulb for 14 hours,
Takes 3,200 kilowatt hours to move an acre of water (approximately 326,00 gallons) from Northern California to Southern California, the equivalence of using 9.8 watt-hours per gallon to move the water.
Opportunities: California Energy Commission calculated that if they canceled a proposed energy efficiency program to replace with a water savings program, they would save 95 percent of the energy for only 58 percent of the cost.
Source: Wall Street Journal
Whether it’s water in a cotton t-shirt
Or American classics like the soda/Coke, cheese and hamburger, issues related to water scarcity (being withdrawn faster than being replenished) will have an impact on the food industry.
Whether companies think they are or are not be responsible for the water embedded in the products they sell but regardless, this is a risk to be managed.
Agriculture is the food industry backbone
In addition to its use of water,
Agriculture also uses a lot of the available land.
(slide)
Image: NCRS (http://photogallery.nrcs.usda.gov/)
Agriculture-Irrigation technology is a rapidly growing, innovative sector
Urban/Industrial- 15% of total safe drinking water in US is lost due to leaky pipes- EU as high as 30% and developing countries as high as 60%
