The market
Although our planet appears to have approximately 1.4 billion cubic kilometers of water, 97% is saltwater, 2% is frozen as glaciers, and only 1% is available as drinking water. Therefore, recycling our wastewater is imperative. It is estimated that globally, only 14% of all wastewater is treated. In Latin America and Africa, less than 2% of wastewater is purified. Based on the figure that global demand for water treatment products is expected to reach $59 billion by 2013, the potential could be as high as $420 billion. In India, urbanization is driving demand for new water treatment systems and services at an annual rate of 10-12%, and in China, growth is reaching 17%.
The world's population will grow from 7 billion today to approximately 10 billion by 2050. Three-quarters of the world's citizens will live in cities. In practical terms, we may need to build a new city every day for every 200,000 additional inhabitants over the next 40 years. The supply of drinking water will be severely strained, requiring massive investments in water treatment plants. Governments typically prioritize investing in drinking water supply, allocating five times more funding to it than to wastewater treatment. This imbalance largely explains why two million people die each year from preventable diseases transmitted through untreated water.
Studies by the World Bank show—to the surprise of many—that fecal pollution worsens as countries become wealthier (and their sanitation systems age). The sewage systems in most urban areas are deteriorating and require repair or renovation. Approximately 30% of all wastewater in Sweden simply doesn't reach treatment plants and contaminates groundwater with viruses and chemicals. Around 17% of Germany's public sewer system, representing 76,000 kilometers, needs to be rebuilt.
Canada has calculated that its wastewater treatment infrastructure will require an additional $80 billion in investment over the next 15 years simply to meet its growing needs, connect approximately 12 million citizens to the sewer system, and replace outdated facilities. Canada needs an additional 27,000 kilometers of piping at a cost of $300 per meter to connect unconnected areas. The cost of installing sewers and water treatment plants in urban and suburban areas is as low as $1,000 per capita in the developing world, and as high as $8,000 in industrialized countries. In this era of excessive public deficits, it is difficult to imagine that politicians will have the necessary funds to invest in public health to such an extent.
Innovation
Strict health regulations and tight government budgets are driving innovation toward investments that guarantee lower operating costs. As a result, non-chemical solutions are increasingly favored. These costs already account for 60% of the investment and operating costs of water treatment systems. This includes ultraviolet disinfection, membrane filtration, and ozonation. However, the rise of increased water recycling is creating new opportunities for the chemical industry, as recycled water is more susceptible to bacterial contamination than fresh water. The cheapest chemical option is chlorine, but plant operators are seeking less toxic alternatives.
Bertil Eriksson of Örnsköldsvik, Sweden, studied water and air flow through buildings and designed a simple, valve-controlled network of pipes that treats all wastewater in each building without the need for septic tanks. His comprehensive system treats all waste from kitchens, showers, and toilets through a combination of ventilation, heat recovery, water purification, and drainage systems. The goal is to eliminate the risk of contamination while reducing capital expenditures for municipalities and protecting the environment, particularly groundwater. This integrated system is protected by a series of patents that form the basis of the "SplitBox" technology.
While the simplified system costs approximately $25,000 for a single-family home, it offers multiple advantages, much like natural systems. First, there is minimal need for pipes, pipe installers, and plumbers, resulting in construction savings. Second, the SplitBox recovers energy from drying, hot domestic wastewater, and home ventilation. Third, the water drains in the floor also serve as ventilation ducts to channel excess moisture (bathroom) to rooms with insufficient humidity (bedroom). Fourth, feces and paper are processed in a special drying system, where they are mixed with organic kitchen waste. Finally, nutrients, particularly potassium extracted from urine through a combined precipitation/absorption process followed by wastewater oxidation, leave behind pure water. The dried substance, free of bacteria and viruses, can be sold on the market as fertilizer. This is managed by a 2x1x2 meter control unit for a family home.
The first cash flow
Mr. Eriksson and his team subsequently proved the economic viability of this integrated unit managing water, humidity, energy, and health in family homes in northern Sweden. He founded the company SplitVision AB to commercialize his invention. He quickly received orders from apartment buildings, adapting the original designs into modular cabinets with treatment capacities tailored to the residents' needs. The largest contract involved the complete wastewater treatment of 42 households.
The opportunity
While the savings in infrastructure costs are offset by the investment in the valve-controlled treatment unit via a simple sensor network, the real savings lie in the elimination of septic tanks, sewer lines, and wastewater treatment plants. This saves capital expenditures for both homes and municipalities, while also eliminating the need for ongoing maintenance and excessive chemical use. Municipal governments may no longer need to borrow, raise taxes, or manage what is arguably the least pleasant job of all: processing other people's waste. A preliminary analysis indicated that Timbuktu, the capital of Bhutan, could save up to $140 million in investments if homes, apartments, and offices adopted this technology.
Human settlements aren't the only ones struggling with excess raw and untreated waste. Cattle and pig farms face the same problem, often even more acutely. The team at SplitVision AB has channeled its expertise into the treatment of animal manure using a simple SplitBox-Agri that fits into a 40-foot container, replacing large outdoor storage tanks that are a significant source of air pollution. The system reduces transportation costs by 90%, eliminates the risk of groundwater contamination, and provides high-quality water for irrigation and a dry fertilizer with proven commercial value. The SplitBox offers an innovative business model, eliminating massive investments and unpleasant jobs, thus freeing up funds that could be redirected to more pressing needs and more fulfilling professions.

