1. Water Security Seminar Series - UEA Steve Kaye Head of Innovation 29 th Jan 2014

2. Agenda/Contents Anglian Water – Background and Aspirations Approaches to Innovation & Collaboration Some Case Studies The @one alliance Summary

3. History of water supply in England & Wales 1848 - Public Health Act following cholera epidemics-provision of good water and sewerage becomes mission of reformers. 1915- 2,160 water undertakings (including 786 local authorities) 1945- Water Act encouraged amalgamations of water companies and boards 1963- 100 water boards, 50 local authorities, 29 private water Co.s 1973- Water Act created 10 Water Authorities to replace water boards and local authorities - Authorities based on river catchments, responsible for : –water conservation, –pollution control –land drainage and flood defence –fisheries –water supply and sewerage 1989 - Creation of NRA (Environment Agency), Ofwat, 10 private water and sewerage companies

4. Global Risk Landscape 2013 Global Trends

5. Global Risk Landscape 2013 Global Trends

7. Background to Anglian Water 27,500 km 2 - largest WASC 3,500 employees flat terrain - slow running rivers agricultural pollution fast growing region mainly rural driest region in UK Long coastline

10. Our Regulators Anglian Water

11. Business goals: These 10 ambitious goals are derived from our long-term key strategic priorities, and were launched in our Love Every Drop Manifesto in October 2010. Key strategic priorities 2010–2035: Increase the resilience of our water and wastewater services. Secure and conserve water resources. Plan and invest for growth in our region. Improve the environment in our region. Mitigate and adapt to climate change impacts. Improve our efficiency and flexibility. Meet the needs of our customers and keep bills at current affordability. Our long-term goals

12. Innovation Goals

13. Anglian River Basin District Significant water management issues Some of the River Basin Challenges:- Abstraction & other flow regulation Nitrate Pesticides Phosphorus Sediment Other effluent quality parameters (BOD, SS, NH4, Metals etc…) Urban and transport pollution

14. 25 to 50 year strategic water resources plan Pressures of climate change, population growth, environmental pressures and abstraction reform will drive future strategies. Raw water transfers and storage will form a key element of the strategy. The profile and importance of demand management will increase as new resources become expensive to develop. Strategies could be extended to include agriculture and industry to form a multi sector planning approach. Water Resources East Anglia (WREA) Group established.

15. 25 Year supply-demand strategy Demand management: leakage control, pressure management, metering and water efficiency Water re-use (grey water, black water, rainwater, effluent) Capturing and storing surplus winter flows –Winter storage reservoirs –Managed aquifer recharge Inter company transfers (trading) Canal transfers

16. Water resources management – demand side Lowest leakage rate in the UK water industry Leakage rate reduced by approx 10% in 2011/2012 High meter penetration – 70% of customers measured Stable demand since 2000 Effective water efficiency programme Drop 20 campaign implemented in 2012 to reduce customer

17. Water Sources

18. About 5% of the water supplied is directly abstracted from rivers, with almost half of the water supplied from our large impounded reservoirs. Many of these reservoirs, for example Grafham Water and Rutland Water, are best known for their amenity and nature conservation use. The remainder of our water is abstracted from seven major underground sources (aquifers) via over 450 boreholes. The major aquifers are chalk, limestone and sandstone.

19. Raw Water Quality The processes used to treat the water before it is supplied to customers vary depending on the quality of the raw water. A number of our groundwater sources only require a small dose of chlorine. Surface waters pass through a complex sequence of treatment processes. Groundwaters are classified by catchment, type and historical data to determine treatment.

20. What do we need to remove from the raw water?

21. Raw Water Quality Groundwaters Pathogens Iron Manganese Nitrate Sulphides Heavy metals Pesticides Ammonia Add Dissolved oxygen Surface Waters Pathogens Pesticides Suspended solids Algae Ammonia Taste and odour Colour Zoo plankton Nitrate Other trace organics

22. Groundwater vs. Surface Water

23. Wastewater Treatment Settlement Tank (Sand Filter) Settlement Tank Biosolids treatment Screens Trickling Filter Activated Sludge OR Sewerage network River or Sea

26. Food waste Manures / slurries Crop residue Sewage sludge Vehicle fuel Biogas (CH 4 + CO 2 ) Combined Heat & Power Biofertiliser for agriculture Biomethane to grid Green waste Digestion vessel (35 o C) Composting Land restoration Waste Management

27. Wastewater – Cycle of Opportunities One man’s waste…. Increasing Bio-Gas Increased Electricity Generation Nutrient Recovery Improving Treatment Efficiency Combining Waste Streams

28. Algae

29. WW Treatment – A Low Carbon Solution Meeting the challenge of first time sewerage schemes. Use of low energy solutions to meet environmental requirements In partnership with local community 0 500 1000 1500 2000 2500 3000 3500 010203040 Operation Years Tonnes CO 2 Aero Lagoons Local Treatment Pump Away

30. Rainfall prediction Real time Control Flow ManagementPump station Optimisation Pollution prevention Intelligent Sewers – Future Opportunities

32. Climate Change Completion of the Adaptation Reporting Power in the Climate Change Act 2008 will outline an assessment of the risks climate change pose and how we will respond Research programme in conjunction with Climate Change and Environmental Performance team Key areas flood risk, water resources and temperature rise Project ideas: Catchment management to recharge aquifers, rainwater harvesting, effects on water and wastewater processes and infrastructure Grantham Institute UKWIR

33. Halve our embodied carbon in new assets we build by 2015 from a 2010 baseline Reduce our operational carbon emissions by 10% in real terms by 2015 from 2010 baseline

34. Moving beyond operational carbon Operational carbon Embodied carbon Most forward looking organisations are reducing operational carbon. Leading organisations are reducing embodied and operational carbon. 487,659 Tonnes annual greenhouse gas emissions (of CO2e) £45,568bn Gross asset value (replacement cost) Around 2bn 5 year capital investment programme Our carbon footprint

35. Precast concrete 28% cost saving 19% reduction in embodied carbon (50% reduction with cement replacement) Structured plastic with conventional bedding 34% cost saving 39% reduction in embodied carbon Conventional in-situ reinforced concrete Structured plastic in curved trench 38% cost saving 50% reduction in embodied carbon Low Embodied Carbon Solutions

36. What happened : REDUCED CARBON REDUCED COST

37. Challenges & Opportunities to Water Service Providers Flooding & Drought Managing Surface Water (SUDS solutions) Move towards natural processes (e.g. lagoons, reed eds, local water sources…) Customer Behaviours & in home solutions (e.g. grey water…) Existing Assets (can restrict sustainable solutions) The Carbon Challenge Flexible Regulation

38. Challenges & Opportunities to Water Service Providers Tight Regulatory Standards (e.g. EU directive on Pesticides – e.g. - Metaldehyde) Non flexible wastewater standards Regulatory compliance? WFD Working with Stakeholders (e.g. agriculture, industry) Climate Change (Mitigation and Adaptation) Working with other industries (e.g. – Power) Innovation (not just about technology)

39. Managing the Innovation Process Project Management IDEAS Portfolio Management Numerous, partially developed ideas IDEA GENERATION AND COLLECTION CONCEPTS DEVELOPMENT AND VALIDATION Application of new or unfamiliar technology Customers External Technology Sources “Foresighting”; "Exploration"; “Creative Thinking” A few, well implemented projects New Ventures Concept Generation; "Intrapreneurship" Techniques; Discretionary Funding Emerging customer needs and opportunities New Business Development Venture Management Strategic Imperatives and Operational Improvement Targets  THE TECHNOLOGY PARTNERSHIP PLC Supply Chain

40. Water Innovation Network (WIN) Drive innovation into the water industry through the supply chain to make the water industry more sustainable –Partnership with UKCEED –Delivery of capital and operational efficiencies –Service improvements –Sustainability and environmental impact –Addressing climate change and growth –Customers are at the heart of WIN!

41. Rejection with explanation Presentation to SG Telephone contact, meeting, info request Supplier Dragon Den Trial NO YES YES NO NO The Water Innovation Network Idea/Innovative Solution WIN Steering Group Exploit YES Open Innovation

42. High level Water & Energy Nexus

43. Forecast Energy Usage – Water Industry

44. Conclusion Meeting the challenges of climate change. Providing water for a growing population Closer links with Food and Agriculture Engaging and involving customers Closer links with Academia

45. Any Questions?

46. Thanks for listening