LIVING MACHINES BY JOHN TODD ECOLOGICAL DESIGN
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TEXT PLACEHOLDER Cover Photo © John Todd Ecological Design
by Biomimicry 3.8
A BIOMIMICRY CASE STUDY
LIVING MACHINES
BY JOHN TODD ECOLOGICAL DESIGN
The commercialization story behind the wastewater treatment & water body remediation process that mimics natural wetlands.
Published by Synapse by Biomimicry 3.8 Written by Biomimicry Business Intelligence
© 2017 Biomimicry Advisory Services & Biomimicry 3.8. All rights reserved.
© John Todd Ecological Design
BIOLOGY Wetland ecosystems cycle and purify water
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DESIGN Eco-Machines mimic wetlands to produce clean water
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Forward Biomimicry for Innovative Business Opportunities Biomimicry is not itself a product but a process, drawing on strategies observed in natural organisms and practices in order to spark innovation.
Biomimicry (from bios, meaning life, and mimesis, meaning to imitate) is a scientif ic design discipline that seeks sustainable solutions by emulating nature’s time-tested patterns and strategies. The core idea of Biomimicry is that nature,
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CONTRIBUTORS & SUPPORTERS
06 13
EXECUTIVE SUMMARY
17
INDUSTRY OVERVIEW
23
COMPANY OVERVIEW
26
COMMERCIALIZATION PROCESS & STRATEGY
52
FINANCIAL STRATEGY
56
FORWARD
after 3.8 billion years of research and development, has already developed solutions to many of the problems facing industry, government and agriculture. Such problems include packaging, transportation, energy production, non-toxic chemistry, carbon sequestration, and crop production.
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CONCLUSION
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TEXT PLACEHOLDER
Contributors & Supporters RESEARCH AND EDITING Jacques Chirazi, Managing Director & Senior Editor, Biomimicry Advisory Services Constanza Jozami, Editor Gabriel Canale, Editor Andrew Scanlon, Research Analyst Leon Wang, Research Analyst Jingting Shao, Research Analyst Xinyi Wang, Research Analyst
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Executive Summary John Todd Ecological Design (JTED) is a Massachusetts-based sustainable water management company that designs and integrates natural systems for the treatment of wastewater and the remediation of degraded water bodies. The designs are based on robust ecological systems in nature that effectively cycle nutrients and water. Harnessing biodiversity and natural processes in the system allows JTED’s machines to treat the most difficult contaminants and human waste streams, meeting and surpassing regulatory requirements.
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EXECUTIVE SUMMARY
TEXT PLACEHOLDER
Since it was founded in 1989,
and reduce nutrient levels,
only invested in constantly
the company has worked
bringing the water body back
evolving the technology,
on over 80 projects on five
to ecological health.
but also in making sure its projects create a positive net
These projects have dealt with
As the company continues
impact on both the community
domestic and industrial waste
to take on projects all over
and the environment. JTED
streams and remediation of
the world, it currently focuses
designs its ecological waste
contaminated urban canals,
on investing in research
treatment systems to serve as
storm water ponds, landscape
and development to further
an effective utility, an aesthetic
features, and natural lakes.
develop their tools and
amenity, and a healthy habitat.
JTED has experience deliv-
processes. JTED tries to source
ering global technical support
their R&D investment from
to natural water treatment
clients as much as possible,
projects in both rural and urban
using their contributions to
environments and in both
solve challenges that the
warm and cold climates. The
company faces. Each project
company employs and adapts
is financially independent and
“living machines”, including
self-funded, with additional
their patented Eco-MachineTM, a
resources coming from
cost-competitive living system
clients as well as government
that creates distinct treatment
funds and research grants.
zones that use plants, microbial
The company is completely
species, fungi, beneficial
sustainable with revenues of
bacteria and aquatic species
up to $1 million per year as
to convert “waste” into a
each project can generate
resource. For the remediation
an average of $150,000s.
of water bodies, the company
Key takeaways on JTED’s
offers Aquatic Restorers that
success revolve around the
jumpstart the ecology of a
company’s culture, practices,
water body, digest sediments
and vision. The team is not
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INSPIRED BY NATURE
JTED’s success comes from applying time tested strategies of natural processes and creating mechanically simple but biologically complex treatment systems. The individual projects solve the contamination challenges that companies and communities face, but JTED continues to aim beyond that with their vision to reintegrate human life back into the biological cycle with natural, safe, and effective systems.
Eco-Machine at The Omega Center in Rhinebeck, New York © John Todd Ecological Design
continents and 11 countries.
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Industry Overview “Water as an asset class will, in my view, become eventually the single most important physical
commodity based asset class, dwarf ing oil, copper, agricultural products, and precious metals.”
WATER The most important thing about water is that all living things need it to survive. Water is an essential resource in almost all human activities, such as: growing and processing food, manufacture of products, transportation, mining, construction, medicine and energy production.
Willem Guitler, Citigroup’s Top Economist “Water is the petroleum for the next century” 2008 Goldman Sachs Report
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INDUSTRY OVERVIEW
INDUSTRY OVERVIEW
GLOBAL WATER USE BY SECTOR Source: Vital Water Graphics. UNEP, Nairobi (2002)
GROWING DEMAND
WATER RECYCLING
According to The Global
AGRICULTURE
INDUSTRIAL
Compact Water Mandate,
A more sustainable model of
recycling programs that will
have been no documented
the demand for water among
water usage is desperately
allow them to use water more
cases of human health
industry and agriculture
needed by both humans and
than once, and will lessen the
problems due to contact with
is expected to increase
the environment. Water crises
impact on water resources
recycled water that has been
significantly due to popula-
around the world are not new,
and aquifers. Water recycling
treated in compliance with
tion growth and economic
and many countries are strug-
is reusing treated wastewater
regulatory standards.
development. Freshwater
gling to provide their citizens
for beneficial purposes such
consumption worldwide has
with this essential commodity.
as agricultural and landscape
Water recycling is a marvel
more than doubled since World
There are cities on every
irrigation, industrial processes,
of the 21st century, but it has
War II and is expected to rise
continent that are running out
toilet flushing, and replenishing
limitations. In an ideal world
another 25 percent by 2030.
of fresh water, including Tokyo,
groundwater basins. Waste-
water could be recycled as
We can notice, especially in
Mexico City, Los Angeles,
water treatment can be tailored
many times as needed, but
the domestic and industrial
London, Cairo, Sao Paulo, and
to meet the water quality
that is not the case with current
sectors, that most of the water
many more. Leading cities
requirements of a planned
technologies and processes.
that is withdrawn is wasted at
around the globe have under-
reuse. Recycled water for
Currently all the water that
the end of the use cycle. Most
stood the importance of taking
landscape irrigation requires
enters the human consumption
water is used only once before
full advantage of this precious
less treatment than water
cycle will eventually be trans-
it becomes wastewater and is
resource. Cities and municipal-
which is recycled for human
formed into wastewater.
discharged into natural bodies
ities have implemented water
consumption. In the U.S. there
of water, which is a major concern for all living organisms.
DOMESTIC WITHDRAWAL
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CONSUMPTION
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INDUSTRY OVERVIEW
TEXT PLACEHOLDER
WASTEWATER
WATER DEGRADATION
Wastewater is any water that has been
Degradation of water quality is the
adversely affected in quality by human
contamination of bodies of water such as
activities. Wastewater can originate from
lakes, rivers, oceans, aquifers and ground
a combination of domestic, industrial, and
water by pollutants. Water degradation
agricultural activities, as well as storm-
damages and harms the lives of humans,
water from surface runoff.
animals and plants in noticeable ways.
Š NASA
WATER QUALITY
GLOBAL MARINE DEAD ZONES
Some of the sectors in need
into rivers or oceans. Unfortu-
world are suffering. Even cities
The expansion of harmful
become dead zones. These
States. The number of stream,
of wastewater management
nately, this does not happen
with the most sophisticated
algal blooms over the past
are zones where water oxygen
river, lake, wetland, and estuary
solutions are: manufacturing,
in the majority of countries
and advanced water treatment
20 years is responsible for
levels are too low for other
restoration projects is growing
municipal, pharmaceuticals,
around the world. The
plants are having trouble
losses of approximately $100
organisms to survive .
yearly. Current federal initia-
food and beverage, electronic
technology to treat wastewater
preventing pollutants from
million per year nationwide1.
components, paper and paper-
is expensive and generally
entering bodies or water, as
About 1.7 million tons of
Events such as these have
restoration actions, including
board production, refined
requires astronomical amounts
their treatment plants have not
agricultural nutrients, nitrogen
underlined the need for
improving or restoring 25,000
petroleum production and
of energy and chemicals.
been able to eliminate 100% of
and phosphorus mainly, are
a change in our water
miles of stream corridors;
contaminants. Aquatic environ-
discharged into the Gulf of
management policies. Conse-
achieving a net increase of
consumption, electricity gener-
2
tives call for a wide range of
ation, mining, and desalination.
As a result of the lack of water
ments around the world are
Mexico yearly. This nutrient
quently, the restoration of
100,000 acres of wetlands
In highly developed countries,
treatment facilities and the
having major problems such as
runoff causes significant algae
degraded ecosystems to a
each year; and establishing two
wastewater is treated to meet
inability to control wastewater
invasive aquatic vegetation and
blooms during summer months.
close approximation of their
million miles of conservation
stringent regulatory standards
runoff, major bodies of water
dead zones.
As a consequence of this
remaining natural potential is
buffers.
before it can be discharged
around the country and the
method of wastewater disposal, experiencing a groundswell areas where algae blooms form
of support across the United
1 Harmful Algae Bloom. (n.d.). Retrieved September 2, 2015. 2 www.nature.org/ourinitiatives/regions/northamerica/areas/gulfofmexico/
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explore/gulf-of-mexico-dead-zone.xml#video
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Company Overview
JOHN TODD ECOLOGICAL DESIGN IS A SUSTAINABLE WATER MANAGEMENT SERVICES PROVIDER THAT OFFERS ITS CUSTOMERS INTEGRATED AND COST-EFFECTIVE AESTHETIC SOLUTIONS TO WASTEWATER AND STORM WATER TREATMENT, AQUATIC ENVIRONMENT
John Todd, the founder of John Todd Ecological Design (JTED), began
MANAGEMENT, AND BIO-SOLIDS CONVERSION. ITS PATENTED ECO-MACHINE™IS A
his career as a “doom watch scientist,” focusing on how pesticides were
BEAUTIFUL WATER GARDEN THAT CAN BE DESIGNED TO PROVIDE ADVANCED WATER
disrupting and harming the environment. At one point in his research,
TREATMENT BY ALTERING THE PLANTS, MICROBIAL SPECIES, AND DISTINCT TREATMENT
he became heavily discouraged by what he was finding. His wife, Nancy
ZONES TO SUIT THE CLIENT’S NEEDS.
Jack Todd, who was very involved with his work, wondered if ecological concepts could help to serve people’s needs. At that point, John considered his knowledge of ecosystems and looked into converting them into technologies that could help solve these challenges. He knew that there were efficiencies, ingenuities, and symbiotic relationships in nature that could provide powerful solutions. In 1969, the Todds co-founded the New Alchemy Institute to conduct fundamental research into aspects of biology and related disciplines and apply this to technology for ecologically derived human support systems. After much research and testing, John founded JTED in 1989 to offer a cost-effective and renewable solution to the growing global water crisis.
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The Eco-Machine system
without the need for hazardous
patent applications have
mimics a natural and robust
chemicals or large amounts of
further developed methods
ecosystem, such as a wetland,
energy. The methodology was
to efficiently and naturally
that filters and recycles waste,
conceived by the company’s
treat wastewater and manage
nutrients, and contaminants.
founder, Dr. John H. Todd, in
aquatic environments (US
The result is an efficient and
cooperation with Barry Silver-
5389257 A, US 5618413 A, EP
refined wastewater treatment
stein, with the first U.S. patent
0728122 B1).
system that is capable of
published in Feb 11, 1992
achieving high quality water
(US 5087353 A). Additional
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COMPANY OVERVIEW
COMPANY OVERVIEW
ORGANIZATIONAL STRUCTURE US HEADQUARTERS | JTED’s headquarters and administration are located in Woods Hole, MA,
but the company also has a research and development arm in South Africa that focuses on develJTED offers design services,
environmentally beneficial
sediments. These passive
construction services, and
and aesthetically pleasing.
systems use sunlight, reducing
consulting services for natural
The system has no chemical
energy costs and mainte-
resources treatment and
additives and little to no sludge
nance. JTED builds beautiful
management. The company
production, so the treated
ecosystems that are integrated
harnesses the biological
effluent can be used for many
into public spaces to grow
processes that operate in
purposes, from recycling water
product value from waste and
nature within the form of an
to toilet flushing or irrigation.
restore trophic layers in the
engineered treatment system
land.
to successfully meet state
Currently two major models
and federal requirements
of living systems available:
for water discharge. The
Eco-Machine that treats waste-
solutions are focused on cost
water and the Aquatic Restorer
effective, highly diverse, and
that reverses eutrophication
resilient systems that are both
in water bodies and digests
oping new designs and systems. Currently, this privately held company, owned by John Todd, Jonathan Todd (son) and Richard Sherman, has a total of seven members of staff. The staff includes a biologist, an architectural advisor, business manager, project manager, and project coordinator that is heavily involved with the company. JTED also employs a network of contractors, landscape architects, and engineers to fulfill the needs of each individual project. JTED has built well over 80 installations in the past 30 years. Several of these water management systems have been operating for over 20 years (and continue to perform well because the clients remain engaged). Most projects (around 80%) are located in the U.S with the rest in Europe, Latin America, and China. JTED has recently begun working in South Africa and has begun work on new projects in Nicaragua.
SOUTH AFRICA SATELLITE
NICARAGUA SATELLITE
JTED is currently working in partnership with
In Nicaragua, JTED’s focus is on installing a
Biomimicry South Africa as well as local engi-
wastewater treatment system for an arboretum,
neers to create low cost ecological infrastructure although this project is still in the planning stage. for the Western Cape Government. The project
The team is currently working on eight projects
is designed to treat greywater generated by
in varying stages (3 of these projects are Aquatic
informal settlements and has been in process
Restorers and the rest were commissioned to
since 2013, with the final two year construction
deal with human waste). As an example of how
phase expected to reach completion in 2017.
diverse these projects may be, one of these clients wants to develop a design to treat a zoo’s hippo exhibit while another is a pilot to treat effluent from bus wash water which may include road salt, industrial chemical compounds, etc.
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COMPANY OVERVIEW
Co-founded New Alchemy Institute for fundamental research _____
Eco-MachineTM _____
Patented numerous water
ARK: test installation for principles of living machine _____
Remains a small
treatment technologies _____
company providing
Installed large scale water
customized solutions _____
remediation systems all
Ocean Arks International Focused on treatment and
Offers design,
over the world _____
construction, and
Conducted R&D and case
consulting services _____
Founded non-profit org,
studies
restoration of water
Eco-Machine at The Omega Center in Rhinebeck, New York © John Todd Ecological Design
Trademarked
Founded JTED _____
Continues heavy R&D investment and pilots
Commercialization Process & Strategy
CONCEPT PHASE 1970
1975
1980
DEVELOPMENT PHASE 1985
1990
1995
2000
COMMERCIAL PHASE 2005
2010
2015
2020
After the Todds co-founded the New Alchemy Institute, Todd and his colleagues designed miniature ecosystems, largely self-perpetuating, which bring ecological principles into the service of human challenges. Aside from designing and prototyping food-producing systems and approaches for communities of people, this work has resulted in innovative new approaches to processing sewage and industrial wastewater with the use of “living machines”. Todd’s approach has involved applications of micro-organisms, fish, and plants (phytoremediation) to restore, conserve, or remediate sewage or other polluted water.
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COMMERCIALIZATION PROCESS & STRATEGY
CONCEPT PHASE
COMMERCIALIZATION PROCESS & STRATEGY
DEVELOPMENT PHASE
COMMERCIAL PHASE
In 1974 Todd returned to his native Canada
waste and for water remediation. These natural
John Todd Ecological Design Inc. was formed in
In recent years, JTED has successfully regis-
to design and build “An ARK for P.E.I.” at Spry
systems technologies were known as Solar
1990 as a partner company and joint enterprise
tered the Eco-Machine as an official trademark
Point on Prince Edward Island on contract to
Aquatics, Living Machines, Restorers, Ecological
to focus on providing commercial ecological
of the company in 2014. The small team
the Canadian federal government. When it was
Fluidized Beds and Eco-Machines. Todd worked
wastewater treatment systems. The company
continues to tackle new and exciting projects
completed in 1976, the ARK had become a test
on growing a robust ecosystem within clear-
continued to file patents on the solutions they
focused on the remediation of impaired natural
bed for many of the principles that became the
sided solar tanks to remediate water and solve
developed to treat wastewater and manage
water bodies and soils. The company is a
“living machine”. In 1982, the Todds founded
pollution issues. Their first experiment was
aquatic environments. After some time, they
pioneer in the use of natural systems for the
Ocean Arks International as a non-profit organi-
carried out in 1983 at Cape Cod, on a lagoon
focused on two ranges of products, the Eco-Ma-
removal of chemicals, petroleum hydrocarbons,
zation with the goal of spreading the ideas and
that leached pollutants into local groundwater
chines used for wastewater remediation, and
endocrine disruptors, and other detrimental
practices of ecological sustainability throughout
resources. John seeded these tanks along the
the Restorer used to reverse eutrophication
water pollutants. With each project, their array
the world. Among its major projects is the
lagoon like a solar river, filled with diverse plant
and reduce sediments. From this point the team
of solutions continues to grow as they develop
protection and restoration of the world’s waters.
life, and soon after the lagoon was able to meet
continued to build and install Eco-Machines and
new technologies and methods to solve the
Here, John Todd developed a unique and
EPA swimming water standards with a 12-day
Restorers all over the world. They also began to
challenges of sustainable water management.
effective array of ecological technologies called
retention time.
conduct case studies on their installations, and
JTED aims to bridge the gap between the
eco-technologies. Over the next decade, Ocean
started to gain traction as their projects received
human world and natural world, finding solutions
Arks developed, and in some cases patented, a
rewards and praise.
to complete the loop to support both.
number of ecological technologies for treating
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COMMERCIALIZATION PROCESS & STRATEGY
TARGET SECTOR & MARKET ANALYSIS
COMMERCIALIZATION PROCESS & STRATEGY
ADVANTAGES OF JTED SOLUTIONS
BROAD SCALE OF MARKET
JTED has proven itself capable
JTED is capable of targeting
as wastewater in dire need of
JTED living machines use no
in different ways through cities
Currently in the U.S. the
of treating water in a cost
multiple markets in need of
some sort of treatment before
chemicals and are thus less
and regions. These systems
market for water treatment
effective and environmentally
degraded water solutions.
it can be discharged back into
costly than conventional water
will be able to satisfy human
equipment is estimated to be
friendly manner. The Eco-Ma-
According with United Nations
the environment. Current water
treatment plants. They are
needs without adversely
approximately $9.8 billion, and
chine is capable of removing
University “In North America,
treatment technologies are
easy to operate and maintain;
affecting the environment,
forecasted to grow 5.9 percent
not only human waste from
of the estimated 85 cubic
highly energy- and chemical-in-
caring for a living machine,
and in most cases they will
per year to a projected $13.0
water, but also industrial
kilometers, or 22.5 trillion
tensive, which imposes high
such as a Restorer, is less labor
actually help heal, rebuild and
billion in 2017. These gains will
waste such as that which is
US gallons, of wastewater
operations and maintenance
intensive since the operator
sustain natural spaces. Since
be fueled by rising concerns
generated by the food and
generated each year, 61 cubic
costs, as well as environmental
is working with living and
most ecosystems are primarily
about contaminants, chemicals,
mining industry, as well as
kilometers, or 16 trillion US
costs of their own. In addition
growing ecologies, instead of
solar-powered systems, they
and byproducts in supply
restoring bodies of water to
gallons, (75%) is treated. (A
to the private and environ-
with bags filled with tons of
are self-sustaining, and their
water and wastewater, and by
their natural state. And even
cubic kilometer is 1 trillion
mental costs, the chlorine and
chemicals. Another feature of
productive lifespan is relatively
more stringent manufacturing
more fascinating, Eco-Ma-
liters—about 220 billion US
other chemicals that public
this technology is that these
long. Living machines have
requirements in process water.5
chines can achieve this without
gallons).”3 This number is
utilities add to drinking water to
systems are modular, and can
the ability to be designed in a
The market is wide open for
relying on large quantities of
constantly increasing given
kill microorganisms can react
be arranged in various designs
modular fashion, which means
sustainable water solutions
chemical inputs or energy-in-
population growth and market
with other materials - such as
to meet the needs of growing
that they can be made as large
like those offered by JTED.
tensive-systems, which results
demand for clean water. As
sewage and manure- to create
businesses or communities.
as necessary. The idea behind
Cities like San Diego and
in incredibly large savings for
stated earlier, most of the water
hundreds of toxic byproducts,
Living machines can be easily
modular design is that they
San Francisco are looking for
the new owners of the Eco-Ma-
that enters cities or farms ends
many of which are detrimental
enhanced and improved
could be installed to treat a
decentralized water treatment
chines. As a result,
that segment of its lifecycle
to human health.4
without excessive costs. As
specified amount of waste-
plants. These plants consist
the systems are refined and in
water, but more units could be
of approaches for collection,
some cases miniaturized it will
added to account for future
treatment, and dispersal/reuse
be possible to integrate them
demand growth.
of wastewater for individual
3 UN: Rising Reuse of Wastewater in Forecast but World Lacks Data on “Massive Potential Resource” - United Nations University. (2013, September 9). Retrieved September 2, 2015. 4 Chemicals used to treat your drinking water might be hurting you, environmental group says. (2013, February 27). Retrieved September 2, 2015.
5 Water Treatment Equipment - Market Size, Market Share, Market Leaders, Demand Forecast, Sales, Company Profiles, Market Research, Industry Trends and Companies. (2013, July 1). Retrieved September 2, 2015.
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COMMERCIALIZATION PROCESS & STRATEGY
COMMERCIALIZATION PROCESS & STRATEGY
dwellings, industrial or insti-
wastewater without relying on
jump-start those efforts and low
tutional facilities, clusters
large scale treatment plants,
interest rates on $800 million
of homes or businesses,
thus eliminating the depen-
more in loans. Experts believe
and entire communities. It
dence on these systems
that most of those investments
is believed that properly
and lowering the operating
will be directed towards turning
managed decentralized waste-
cost. According to the EPA’s
human wastewater into potable
water systems can provide
Guidelines for Management of
water.
the treatment necessary to
Onsite/Decentralized Waste-
protect public health and meet
water Systems, “Onsite/decen-
As we will discover later,
water-quality standards just
tralized wastewater systems
JTED’s living machines are
as effectively as centralized
serve 25% of the US population
capable not only of treating
systems. These systems can
and 40% of new develop-
wastewater, but they can also
help promote better watershed
ments.” The current drought
be used as a closed water
management by avoiding the
crisis in the southwestern
loop system within buildings,
potentially large transfers of
United States has generated
allowing them to reuse water
water from one watershed to
a clamor for solutions that will
up to twelve times. Global
another that can occur with
allow cities and counties to
markets for wastewater
centralized systems.
take full advantage of every
recycling and reuse technology
drop of locally available clean
are expected to grow from $9.5
John Todd Living Machines
water. In the state of California,
billion in 2012 to $23.4 billion
provide a system that will allow
as part of recent drought relief
in 2017, reflecting a five-year
individuals, industries and
measures, the state allocated
CAGR of 19.7%.
communities to manage their
$200 million in grants to
6
7
8
MARKET FOR BIOSOLID BYPRODUCTS John Todd and his team of
to crops reduces the need
Milorganite is manufactured
designers and engineers
for chemical fertilizers. The
by the Milwaukee Metropolitan
did not stop with water, as
National Academy of Sciences
Sewage District. Milorganite
they realized that their Living
has concluded that “the use of
products can be purchased at
Machines had potential that
biosolids in the production of
places such as Home Depot
surpassed the mere purification
crops for human consumption
and other farming equipment
of water. One of the byproducts
when practiced in accordance
stores at an average price of
of their process are biosolids,
with existing federal guide-
13 US dollars per 36 lb. bag.
which are nutrient-rich organic
lines and regulations, presents
More than ever before people,
materials resulting from
negligible risk to the consumer,
are looking for new organic
the treatment of domestic
to crop production and to
plant-growing products, and
sewage. When treated and
the environment.’ There are
the organic fertilizer market is
processed, these residuals can
many popular brands offering
growing larger by the minute.
be recycled and applied as
organic fertilizers made out of
In 2006, the U.S. fertilizer
natural fertilizer to improve and
biosolids.
market was estimated at $40
maintain productive soils and
billion, with the organic fertilizer
stimulate plant growth. Farmers
Among these we have
accounting for only $60 million.
and gardeners use biosolids
Milorganite, a Milwaukee
With current market trends, we
in all 50 states of the U.S.
based company that
can expect this last number to
The application of biosolids
sells class A biosolids.
increase significantly.9
6 http://water.epa.gov/infrastructure/septic/upload/MOU-Intro-Paper-081712-pdf-Adobe-Acrobat-Pro.pdf 7 SANGREE, H. (2014, April 14). California looking to recycled water to ease drought concerns. Retrieved September 2, 2015.
9 MarketWatch. (2007, March 21). Organic fertilizer companies see growing market, but efficacy debated.
8 FARMINGTON. (2013, February 7). Global wastewater reuse, recycling markets expected to expand, research
Retrieved September 2, 2015.
says. Retrieved Septem-ber 2, 2015.
32 | SYNAPSE.BIO
SYNAPSE.BIO | 33
COMMERCIALIZATION PROCESS & STRATEGY
COMMERCIALIZATION PROCESS & STRATEGY
MARKET FOR WATER ECOSYSTEM RESTORATION So far we have discussed
in need of a solution. Eutro-
cause grave environmental
without access to safe drinking
around the world, and this
how John Todd has provided
phication typically promotes
damage. As stated by the
water in Ohio and Michigan as
number is expected to grow
humanity with a clean,
excessive algae growth,
Aquatic Ecosystem Restoration
consequence of an algal bloom
given the current trend of
sustainable, and cost effective
commonly known as algae
Foundation, “The limitations
in Lake Erie.11 Algal blooms have increasing water temperatures.
way of treating domestic,
blooms, which cause health
to effective management
significant economic impacts
94 percent of dead zones are
industrial, and agricultural
problems for people, fish and
of aquatic plants in their
when they occur. For example,
in areas expected to warm by
11 Abbey-Lambertz, K. (2014, August
wastewater, but that is not all
wildlife in general.
environment are time, patience,
a 1976 New Jersey red tide
2 degrees Celsius or more
6). These Disturbing Photos Show
and funds, not the lack of an
caused losses estimated at
by 2099. This is critical for
Why Algae Blooms Are A Growing
effective management tool.�
more than $1 billion.
dead zones since it has been
Global Water Threat. Retrieved
shown that the population
September 2, 2015.
this amazing company has done. They recognized that
In the past, the federal
cleaning wastewater was not
government has played the
the only problem that could
prominent role in maintaining
The United States Environ-
Dead zones such as the one in
of invasive vegetation grows
be solved with these living
a coalition of research scien-
mental Protection Agency
the Gulf of Mexico has led to
in warmer water. John Todd
ecosystems. They created what
tists, natural resources
reported that climate change
a substantial decrease in the
Restorers offer an efficient and
they called Restorers, which
agencies, academic insti-
will have many effects on
fish population of the affected
cost effective solution for this
are special machines capable
tutions, and private sector
freshwater and marine environ-
areas. This adversely impacts
problem. The Restorers are
of returning a degraded water
interests for studying and
ments, and these effects along
the local economy, especially
capable of decreasing nutrient
ecosystem to a close approx-
managing nuisance aquatic
with nutrient pollution (chemical
the fishing and tourist indus-
levels in water, which removes
imation of its natural state.
and wetland vegetation.
fertilizers) might cause more
tries, and have the potential to
some of the food these
Eutrophication, which is the
However, significant reduc-
intense and harmful algal
affect millions of people around
invasive plants use to grow at
process by which a body of
tions in agency funded R&D
blooms and dead zones to
the world. The U.S. is not the
exponential rates. As a result,
water acquires an excess
programs have created a
occur more often, in more
only country suffering from
we expect to see a decline of
concentration of nutrients,
technological void while
bodies of water. During the
degraded water ecosystems.
dead zones and algal blooms
particularly phosphates and
invasive aquatic and riparian
summer of 2014, more than
It has been reported that there
in areas where Restorers are
nitrates, is a big problem that
weeds continue to spread and
400,000 people were left
are more than 400 dead zones
installed.
34 | SYNAPSE.BIO
10
12
10 Aquatics Update: Management Minute - Aquatic Plant Management Options. (2010, March 10). Retrieved September 2, 2015.
12 Prevention, Control and Mitigation of Harmful Algal Blooms. (2001, September 1). Retrieved September 2, 2015.
SYNAPSE.BIO | 35
COMMERCIALIZATION PROCESS & STRATEGY
John Todd Ecological Design offers
1
two major “living machine” products along with design, construction and consulting services to their clients
2
COMMERCIALIZATION PROCESS & STRATEGY
ECO-MACHINE TM Water purification system
AQUATIC RESTORER Water-based ecosystem restoration system
Diagram of Eco-Machine for City of South Burlington municipal installation © John Todd Ecological Design
PRODUCTS AND SERVICES
ECO-MACHINETM
There are several factors which
even train customers in the
restoration. The team has
The Eco-Machine is a tank
specifications and will provide
of wastewater per day. Solar
make them a unique player
operation and maintenance
a deep commitment to the
based system typically housed
advanced water treatment. The
energy supplies 100% of the
in the market. Every product
procedures needed for lasting
ecological integrity of their
within a greenhouse and
size of an installation depends
electricity necessary to power
created is a customized design
efficiency. JTED offers a broad
systems and to reducing their
contains a natural and robust
on the water flow requirements
the natural water reclamation
crafted through a process of
and comprehensive range of
overall environmental impact.
ecosystem that naturally
which can range from tens
achieved by the Eco-Ma-
close communication with
services, and the company’s
cleans water. The system
to hundreds of thousands of
chines. The individual tanks
customers. Since the company
philosophy focuses on
often includes an anaerobic
gallons per day. Many clients
and suspended racks contain
already knows the customers’
including integrated systems
pre-treatment component,
have sites with 3,000 to
all the major groups of life
preferences, they can deal
used in agriculture, storm water
flow equalization, aerobic
20,000 gallons of waste-water,
from microscopic algae, fungi,
with specific issues and
management, and watershed
tanks as the primary treatment
but JTED has built Eco-Ma-
and bacteria to snails, fishes,
approach followed by a final
chines that treat volumes far
shrubs, and trees. The result is
polishing step, either utilizing
beyond this.
an efficient and refined waste-
Ecological Fluidized Beds or a
36 | SYNAPSE.BIO
water treatment system that
small artificial wetland. It is an
The largest Eco-Machine
is capable of achieving high
aesthetically pleasing water
built to date processes an
quality water without the need
garden that can be designed to
impressive 80,000 gallons
for hazardous chemicals. SYNAPSE.BIO | 37
COMMERCIALIZATION PROCESS & STRATEGY
COMMERCIALIZATION PROCESS & STRATEGY
For an area of 2 acres, a Aquatic Restorer installed for Tyson’s poultry processing facility in Berlin, Maryland typical installation can have 3-4 units depending on how quickly the client wants to digest the sedi-
DESIGN, CONSTRUCTION, & CONSULTING SERVICES
ment. The largest installation of the Aquatic Restorer for lagoon treatment to date processes 1 million gallons per day. Photo © John Todd Ecological Design
AQUATIC RESTORER
John Todd Ecological Design is
system to successfully meet
that are both environmentally
an experienced company with
discharge standards and
beneficial and aesthetically
more than 30 years experience
regulatory requirements. Based
pleasing. What makes
of dealing with natural waste-
on the information from inter-
John Todd Ecological Design
water treatment design,
views with company staff, they
special is that their staff can
general aquatic management,
express that each project has
provide complete design
and project supervision. Based
unique challenges based their
services from conceptual
on Dr. John Todd’s thinking,
clients’ particular situations
design through detailed
the company harnesses the
and needs. The solutions of
construction documents.
The Aquatic Restorer is a
within. The system helps
made readily available for
biological processes that
the company are focused on
The following sections will
system of floating platforms
restore the pond health and
plant life and zooplankton.
operate in nature in the form
building cost effective, highly
elaborate further on the details
linked to an upwelling bottom
ecology by removing accumu-
The Aquatic Restorer is more
of an engineered treatment
diverse, and resilient systems
of this process.
filter that slows and reverses
lated sediments, excess
of a streamlined unit that can
eutrophication. It is composed
nitrogen and phosphorous,
be easily installed and scaled.
of planted ecologies, media
reducing organic matter, and
The cost of each unit is roughly
to support microbial films,
eliminating algal blooms. It
$60,000. Typically, one unit is
and an aeration system. This
is able to accomplish this by
installed per half acre to one
technology can be installed
pushing nutrient and organic
acre and circulates 100,000
in bodies of water to enable
rich sediment through the
gallons per day, digesting as
organisms to metabolize
bottom filter and into bacteria
much as five inches of accumu-
nutrients and organic loading
zones to be metabolized and
lated sediment per year.
38 | SYNAPSE.BIO
SYNAPSE.BIO | 39
COMMERCIALIZATION PROCESS & STRATEGY
PROCESS OVERVIEW
COMMERCIALIZATION PROCESS & STRATEGY
DESIGN-BUILD CAPABILITIES
In a typical project, the JTED
visit, the team will develop a
After the project is finished,
The John Todd Ecological
services could provide longer
experience in consulting for a
team will spend one or two
list of questions for their client
they provide an Operations
Design team is experienced
term assistance for the
broad range of clients to help
days with the clients on site to
to perfect not only their under-
and Maintenance manual,
in the construction of natural
company because the structure
them make decisions regarding
reach a better understanding
standing of the problem, but
onsite training for maintenance
wastewater treatment facil-
matters for the company
their natural resources
of their client’s water treatment
also their understanding the
workers, email and telephone
ities and aquatic environ-
rather than simply solving an
management challenges.
requirements. During the
client’s requirements. This
support, and site visits as
mental management projects
immediate problem. JTED also
John Todd Ecological Design
onsite visit, they will identify
process lays the foundation
desired. As part of the commis-
worldwide. JTED offers their
offers integrated construction
provides insights from the
the problem and assess the
of the eventual project. After
sioned project, the team also
clients a complete design and
oversight services, working
business planning stage of
site itself. Then the team will
obtaining the approval of the
offers operational training for
build option in addition to the
with primary contractors to
resource allocation through
discuss constraints and expec-
client, the project goes to the
their new customer, which is
conventional design- bid- build
ensure the natural water
site visits, feasibility studies,
tations with the clients and
engineering team and then the
around 3-5 days.
approach, allowing the accel-
treatment element is efficiently
report writing, design and
outline their recommenda-
construction team. JTED teams
eration of the project from
integrated into the larger
construction consultations, and
tions. The JTED team will then
maintains a close relationship
planning and design through
overall project.
last, but not least, help with
research and write their report
with its clients after completing
to construction completion
about the on-site visit and
their projects, with the goal of
and training of personnel for
Besides offering design
begin the process of prelim-
assisting them in the long-term
facility start-up promptly within
services and construction
inary design. After the initial
maintenance of the project.
the context of the project
services, John Todd Ecological
timeframe. The construction
Design also has adequate
40 | SYNAPSE.BIO
facility operations.
SYNAPSE.BIO | 41
EXAMPLE PROJECTS The team members of JTED have been working in this field for several decades and have succeeded in completing well over 80 projects during
Š John Todd Ecological Design
COMMERCIALIZATION PROCESS & STRATEGY
the past 30 years. These projects are located all over the world, and
RURAL RESORT LAKE RESTORER
several of them have been in operation for over 20 years. The company
KONA, HAWAII
currently has a list of roughly 20 case studies that detail the performance and effect of these projects. These examples cover over a dozen
This case exemplifies the
valuable water on the dry side
Hawaiian fish and shrimp. This
projects in various states of the U.S. as well as in countries such as China,
company’s ability to help
of the Big Island of Hawaii. Two
diversity of plant life provides
Germany, England, and Honduras. Installation sites are diverse and include
achieve sustainable water
Restorers were installed during
a thriving habitat for a lot of
commercial settings such as industrial sites and resorts, and natural
management solutions.
the construction of the pond
wildlife. Some of the fish and
This EPA award-winning 3.5
along with six airlifts and a
shrimp species are supplied
million-gallon pond at the Four
subsurface filtration system.
to the onsite restaurant as
environments such as canals and lagoons.
42 | SYNAPSE.BIO
Seasons Resort golf course in
fresh seafood. Below the water
Kona, Hawaii was designed by
Pond water is pulled through
surface, aerobic bacteria attach
John Todd Ecological Design
the bottom gravel filtration
to both the gravel media and
and constructed in collabo-
and up to the center of the
plant roots. The bacteria work
ration with Ocean Arks Interna-
Restorers at a turnover rate
to digest nitrates in the water
tional and Natural System Inc.
of 32 hours. As a biological
column and out-compete algae
The caretakers of the resort
platform, each Restorer
for other available nutrients,
wanted to keep the pond free
provides an ecosystem for over
ensuring the pond stays both
of algae without resorting to
26 species of native Hawaiian
clear and environmentally
high flush rates that would use
flora and several species of
stable.
SYNAPSE.BIO | 43
© John Todd Ecological Design
TEXT PLACEHOLDER
© John Todd Ecological Design
TEXT PLACEHOLDER
TYSON INDUSTRIAL WASTE TREATMENT
URBAN MUNICIPAL CANAL RESTORER
BERLIN, MARYLAND
FUZHOU, CHINA
Before consulting with
Chincoteague Bay, a local
create a balanced and complex
Fuzhou, a city of 6 million
Baima, considered one of the
Todd Ecological Design collab-
Ocean Arks International
fishing and shellfishing site.
aquatic ecosystem which could
people, empties its commercial
worst in the city, had extreme
orated with Ocean Arks Inter-
and John Todd Ecological
With the help of John Todd’s
provide a habitat for a variety
wastewater and sewage
problems with odor and
national and Natural Systems,
Design team in 2001, the
Lagoon Restorers, Tyson
of microbial communities, all
into 80 kilometers of canals
floating solids created by the
Inc. to design a restorer using
Maryland Environmental
Foods Inc. turned their sludge
of which perform a unique
that run throughout the
influx of 750,000 gallons per
12,000 plants composed of 20
Protection Agency levied
filled lagoon into a thriving
function in the waste-treatment
city before this canal itself
day of untreated domestic
native species for their Chinese
several fines against Tyson’s
ecosystem and compliant
process. The result was a 95%
flows into a large river. The
sewage. Rather than re-piping
partners to place in the Baima
poultry processing facility
wastewater treatment site.
reduction in contaminants, 70%
polluted canals not only pose
the polluted water to a remote
canal. Built under an elevated
in Berlin, Maryland. Effluent
Lagoon Restorers were
reduction in energy use, 20%
a health risk to the city’s
wastewater treatment facility,
central walkway surrounded by
from the Tyson lagoon was
installed to work in collabo-
reduction in sludge production,
inhabitants, but also threaten
the city government sought
greenery, the restorer has met
frequently out of compliance
ration with existing traditional
and a discharge stream that
the livelihood of fishing
an affordable and low-mainte-
water quality goals and created
with MD-EPA standards and
treatment elements. 25,000
complied with Maryland’s open
communities downstream.
nance treatment system within
a desirable recreational desti-
was unfit to discharge into
native plants were chosen to
water effluent parameters.
A 600-meter canal named
the canal itself. In 2002, John
nation for the city’s residents.
44 | SYNAPSE.BIO
SYNAPSE.BIO | 45
COMMERCIALIZATION PROCESS & STRATEGY
COMMERCIALIZATION PROCESS & STRATEGY
PRICING STRUCTURE SYSTEM COST BY SIZE
For Eco-Machines, pricing
Half of the money will be
The company’s pricing strategy
begins at $80-100 per gallon
assigned to the purchase of
varies greatly with the client,
for sub-20,000 gallon per day
material and the other half will
project size and complexity,
projects, dropping to $25-30
be used for the staff salary and
timeline, and special require-
per gallon for 40,000-50,000
overhead. JTED projects are
ments. At the same time, the
gallon per day projects, all
extremely cost effective. Other
wastewater treatment can
the way to $20 per gallon
solutions such as dredging
be the public asset as well,
for 50,000+ gallon per day
can produce costs of up to
as JTED projects create a
projects. JTED can adjust
one million dollars per every
positive externality that spills
project size according to
few hundred yards. Using a
over into the public sphere.
client-specific needs. The price
JTED project in California as an
As indicated in the case study
also depends on the timeline
example, the client was origi-
section, restoration of habitats
of the clients. If some clients
nally spending $250,000 per
have an urgent requirement for
GALLONS PER DAY
TREATMENT COST/GALLON
CAPITAL
1,300 to
$300,000 to
2,500
$450,000
2,501 to
$400,000 to
5,000
$750,000
provides positive externalities
5,001 to
$600,000 to
year on an activated sludge
in both social and ecological
25,000
$1,500,000
expedited project completion,
plant. JTED will be able to help
contexts, benefiting the public.
the cost can exceed the
the client reduce operation
If external benefits are added
aforementioned values. The
costs by up to $200,000 per
to the evaluation of costs,
25,001 to
$1,000,000 to
investment for a typical project
year and therefore provide a
JTED project are always excep-
100,000
$2,500,000
is around one million dollars for
return of investment in just 4 or
tionally cost effective and
a 20,000 gallon per day project
5 years.
attractive.
ANNUAL MAINTENANCE
(15 year period)
$180/gallon
$120/gallon
$20,000/yr
$150/gallon
$120/gallon
$40,000/yr
$60/gallon
$36/gallon
$60,000/yr
$25/gallon
$12/gallon
$80,000/yr
from scoping to installation.
46 | SYNAPSE.BIO
SYNAPSE.BIO | 47
COMMERCIALIZATION PROCESS & STRATEGY
SALES MODEL
COMMERCIALIZATION PROCESS & STRATEGY
GROWTH & CONSTRAINTS
The John Todd Ecology sales
money by going with JTED’s
Europe, the United States and
Thus far, JTED has been
focus is to push the devel-
alternative methods of
model is mostly dominated
solutions is only part of the
China, as well as Latin America
growing over the past 25
opment of product design to a
treatment. Companies such
by indirect sales. The annual
draw. John is still a professor in
and Africa. JTED’s marketing is
years. Today they have a
whole new level. JTED plans
as Oregon based Orenco,
revenue produced by JTED
the university but he has built a
not limited to client outreach:
total of seven staff and eight
to expand the size of its team
offer pump, disinfecting,
oscillates between half million
reputation and network in the
when former clients face a
ongoing projects. Projects are
from the current seven staff to
and water reuse systems for
dollars and million dollars. The
field as well. People know John
new requirement to solve an
completed on a rolling basis
around 15. What JTED wants to
installation. Other compet-
sales model and how much
Todd products and approach
environmental and/ or water
and project duration depends
do is to do more pilot studies
itors include Triplepoint Water
biomimicry plays a role in the
the company with their
management issue, they know
on the particularities of each
in the field, which is where
Technologies LLC, DO2E
sales process depends on
problem looking for a solution.
that few if any companies
case. During the past 2 or 3
John’s passion truly lies. The
Wastewater Treatment, and
clients. Biomimicry is always a
Take the South African project
can provide an equivalent
years, the company has begun
water treatment market’s devel- Waltham Technologies Inc.
part of John Todd Ecological
for example: the government
service. In these cases, it is the
re-thinking its entire structure.
opment today really depends
Most competing companies
Designs internal conversation.
needs a solution for water
customer that reaches out to
John Todd Ecological has no
on government regulations.
are wetland based while
For some clients who have
treatment and they approached
JTED.
plans to grow much further,
This will be the major obstacle
JTED is primarily tank based.
a deep understanding of the
JTED seeking a potential
which means they not will
to John Todd’s plans because
Half of JTED clients will have
company’s process and have
design installation. So far, the
expand beyond their current
the company’s pace of
talked to other companies
known John for years, saving
company has secured clients in
size and produce more of
research and development
and vetted the industry to
their products as a traditional
does not depend on the pace
some degree, but mostly the
manufacturing company
of government regulations.
question is whether JTED
would. On the contrary,
48 | SYNAPSE.BIO
has the resources and skill
John Todd plans to keep his
JTED’s Eco-Machines are a
set to complete the project.
company small in the hopes
unique solution to wastewater
While some companies are to
of maintaining the company’s
treatment, however there are
potential competitors, JTED
founding vision. JTED’s current
competing companies with
believes that there is at present
SYNAPSE.BIO | 49
COMMERCIALIZATION PROCESS & STRATEGY
COMMERCIALIZATION PROCESS & STRATEGY
FUTURE POTENTIAL MARKETS an effectively infinite number
machines have increasing
been abused before in their
John Todd Ecological Designs
John’s PhD students wrote his
different contexts. John has
of market opportunities in this
returns to scale, therefore they
joint ventures with Living
wants to offer the world a
dissertation on the treatment of
addressed a wide variety of
space, allowing for all of these
could offer a larger benefit for
Machine, and as a result JTED
new way of thinking, a radical
AEEA, one of the mining indus-
waste products in the past,
companies to work comfortably
the customers by helping them
has shifted to not issuing these
solution to an environmental
try’s principal waste products.
such as confectionary waste
without entering into direct
use their machines continu-
rights to outside their firm.
challenge. This challenge
The results of a project
(chocolate factory), dairy waste,
competition with each other.
ously. Additionally, in terms of
is finding a better, cheaper
designed to treat this waste
etc. There are a lot of waste-
Possible competitors include
R&D, they have relationships
This means their licensing
way to treat water in a more
product were astounding: the
water pilot projects that they
Roth Ecological Design Interna-
not only with clients but also
rights will now be more
efficiently. The potential market
compound was dissolved in 72
plan to take on in the near
tional, Natural Systems Interna-
with academic institutions.
secured, which allows them
for this solution is infinite
hours, rendering this process
future. At the time of writing,
tional, and Ecosolutions LLC.
JTED is currently pursuing
to retain their competitive
because almost every industry,
an effective solution. The
JTED had a proposal out
partnerships with university
edge. Through their unique
such as mining, energy, food
potential market is huge and
the door to treat frack water
The features and compati-
researchers and considering
offer of customized products
processing and manufacturing,
the challenge begs for readily
generated by the fracking
bility of JTED’s products and
partnerships with like-minded
and services, JTED can be
uses water for production.
available solutions that can
industry as well as a pilot to
services enable them to gain a
companies, such as Biomimicry
expected maintain the unique
JTED is interested in focusing
meet environmental standards
treat the effluent stream from
competitive edge in the market. South Africa in 2014. Unfortu-
advantages they hold at
more on their research and
and move towards more
bus wash water (road salt,
For example, costs of operating
present.
growing their relationship with
sustainable development.
industrial effluent). There is also
nately, licensing rights have
the institutes. Now JTED is
50 | SYNAPSE.BIO
a facility in the works treating
focusing on domestic waste-
If JTED can continue to find
a canal contaminated with
water treatment, such as
more solutions for other indus-
petroleum hydrocarbons that is
laundry water and bath waste-
tries, the scale of potential
not a commercial offering, but
water. In the future, JTED also
growth is effectively unlimited.
JTED is interested in piloting
wants to work with heavy
JTED relishes a new challenge
and offering solutions for these
industry, such as the chemical
and enjoys thinking about
dangerous contaminants.
and mining industries. One of
ecological design in many
SYNAPSE.BIO | 51
Financial Strategy All of the projects and
however currently every
work completed by JTED
on-going projects is self-funded solutions to their wastewater
are completely financially
to preserve the company’s
treatment problems, particu-
independent. In the past,
financial independence. JTED’s
larly in the current increasingly
the company was in a more
fiscal situation last year was
strict regulatory environment.
precarious place due to its
within the company’s targeted
The potential benefit for this
size, but now it is completely
performance parameter:
is huge: the players in the
sustainable. Most of their
revenues were greater than
industry stand to save as
projects are self-funded by
$500,000 per year, less than
much as $200,000 per year
earlier reinvestment in the
$1,000,000 per year, and each
in operating costs and follow
company. Additionally, other
project generated approxi-
in the footsteps of one of
entities perform as liaisons
mately $150,000 million dollars
JTED’s clients in California.
between industries, including
of profit. Average project scope
The industry has a strong
the hydraulic fracking industry.
usually exceeds $100,000, and
incentive to fund research and
Therefore, JTED has culti-
they obtain their money from
develop through JTED in order
vated investor relationships
both the specific client and
to comply with government
on and off over the past few
earmarked overhead.
regulations.
years. Usually, pilot projects
Manufacturers from the
are funded by the industry,
chemical industry have
52 | SYNAPSE.BIO
expressed an interest in finding
In addition to self-funding,
a solution for greenhouse
Government and Biomimicry
government funding is another
effluent. This project was
South Africa at a slower pace.
important source of revenue,
funded by the greenhouse
along with companies facing
industry when regulations
Because they built several
environmental challenges who
began growing ever more
restorers, they have clients that
also provide research funds.
strict. Considering that
pay for the design and are not
With regards to government
JTED would like to continue
investing their own money or
funding, JTED’s focus on
producing and maintaining
anyone else’s money at the
reducing environmental impact
innovative solutions and
moment. JTED tries to channel
will work well for them. Specif-
processes, finding many
its R&D investment through
ically, since their products and
sources for funding is a good
clients as much as possible,
services are geared towards
option for the company.
using their contributions to
environmental regulations and
solve the challenges that the
sustainable development, there
JTED reinvests 100% of its
company faces as it works to
is a lot of potential to obtain
profits into its R&D efforts. This
provide customized solutions
funding from government
makes their future product
for its clients.
compared with other indus-
development more meaningful
tries. A lot of work has been
and sustainable in a long run,
funded by the EPA (particularly
and also pushes the company
those dealing with petroleum).
towards continued innovation.
JTED has completed a project
Furthermore, the company has
working with a client in the
an R&D arm in South Africa and
Netherlands developing
works with the Western Cape
SYNAPSE.BIO | 53
FINANCIAL STRATEGY
FINANCIAL STRATEGY
FINANCING PILOT STUDIES
FUTURE POTENTIAL FINANCIERS
ATTRACTIVENESS FOR INVESTORS
The company is privately held
amount of time required for the
Furthermore, as the interview
Potential investment funds for
This could provide an incentive
by John Todd, the architectural
pilot study to eventually turn
with JTED suggests, while the
JTED are expected to come
to JTED staff to work harder to
Even though they do not
advisor, and John’s son. JTED
a profit when the technology
potential market for JTED is
mainly from research grants
maximize their own investment.
expect to expand their busi-
has worked with investors, but
acquired in the study is applied
infinite, this means that it is
for pilot studies. The ideal
If JTED could obtain outside
ness dramatically in a short
over the last 15 months JTED
to for-profit projects. However,
hard to choose which sector of
investors will be the people
financing, this could provide
run, JTED’s business model
has received no additional
approaching this difficulty
the market to go after first.
who seek to fund environ-
a further opportunity and
has some unique advantages
investments. JTED’s current
from a different perspective,
mental friendly projects long
more resources for the team
in the market. Especially in
strategy to secure additional
the pilot project could provide
With the current size of JTED
investment horizon and high
to attempt taking on multiple
the US, JTED does not face
financing is by pursuing
a high rate of return for the
and the lack of research
expected rates of return.
projects at the same time.
any meaningful direct compe-
research and development
right investors. Unlike risky
funding for pilot studies, it
Risk and return tend to move
John, who is still a professor,
tition, and there are a variety
funding for pilot projects.
investments such as junk
is hard for JTED to go after
together in JTED’s projects.
brings additional confidence in
of projects underway all over
Because JTED does not have
bonds, the long history of
multiple sectors simultane-
The risk is not insignificant: it
the quality of research because
the world in emerging markets.
plans to expand the size of the
JTED’s successes provides
ously, especially considering
is a unique risk which derives
he is one of the leading
Considering this, along with
company, most of their funding
a measure of security for the
that different industries face
from the uncertain results of
professional in his field. All of
the strength of JTED’s custom
goes towards supporting
risk-averse investor. Because
wildly different challenges.
research and development
these factors could provide an
designs, and the high reinvest-
research and development
the company is privately
The company is exploring
efforts, especially it is cutting
excellent motive to invest in
ment rate of R&D, the company
efforts. However, it takes a long
owned and does not have any
the possibility of partnering
edge research. In this case, it
these projects, if the potential
is successfully maintaining
time to see the results of this
interest in going public, it could
with a university to pursue
is a perfect option for investors
investor has the patience to
solid relationships with their
investment in new areas. No
be an ideal alternative for an
grant research funding from
looking to diversify their
put off seeing a return on their
current customers. The success
one really has the experience
individual investor who wishes
the Department of Energy or
portfolio into environmentally
investment until the project is
of JTED in their diverse port-
JTED does with pilot studies
to diversify their portfolio
another federal agency.
friendly activities. The fact that
complete.
folio of projects could make it
in wastewater management. It
while putting their money into
JTED reinvests 100% of their
feasible for them to enter new
is hard to find the third party
an environmentally friendly
profit into R&D helps signal
markets and find innovative
investors willing to wait the
enterprise.
JTED’s confidence in their
solutions to similar challenges.
projects. 54 | SYNAPSE.BIO
SYNAPSE.BIO | 55
Conclusion
With each of the projects that JTED has completed, the team acquires new methods for solving challenges. The company does much of its R&D through its clients in the process of tackling the unique customization process for each new system. The clients that they work with may either have their own specific demands or will let the team approach the issue in their own way. This has allowed JTED to use the client’s’ contribution to solve each new challenge they face
Lessons Learned STAY ENGAGED THROUGH OPERATIONS & MAINTENANCE
It is important to continue to build strong relationships with the client even after installation. JTED remains involved with the system for its lifetime, providing maintenance and support to ensure the longevity and performance of their installations.
and potentially gain a lesson that can be applied to other projects. This builds the capital or brain trust that JTED holds, beyond just their products, which is their capacity to solve the problem at hand in a creative way.
STAY SMALL YET MIGHTY
Maintaining company integrity and vision is essential to developing sustainable solutions. JTED seeks to expand the use of sustainable, living
John Todd Ecological Design has been around for 27 years, but in the past few years they
technologies as a part of everyday life and to educate others in these
have begun actively restructuring and redesigning the company. As JTED continues to
practices. The team would have been more restricted working in a corpo-
take on additional projects and discover new solutions, it has done some strategic
rate environment that focused on profit generation. Instead, JTED has a
thinking about its long-term future. The current team is very interested in keeping the
more free-thinking and innovative culture with a small yet diverse and
company fairly small. The staff, composed of creative people that like to innovate,
energetic group of focused and dedicated staff.
are not interested in having a production arm to scale up. They are interested in research and creating relationships with academic institutions, and are not focusing primarily on the generation of large cash flows or profit. As a result, the company can be found taking on new and extremely diverse projects in various contexts and industries in order to expand their design capacity and further
IN-HOUSE INVESTMENTS IN R&D CAN BE CAPITALIZED ON THROUGH DIVERSIFICATION
A high focus on the R&D end of JTED has contributed significantly to the company’s success in improving and adapting its core
optimize their systems. JTED also runs design workshops open to the public
technology. As a company that offers products and services for
at the Living System Laboratory in Massachusetts, and has plans to transform
a wide range of dynamic challenges, JTED invests heavily in
it into an ecological design hub. This way, JTED can remain a voice that
R&D. The innovation that flows from this investment allows
contributes to the world in a positive way, and offer radical solutions and a
the company to offer a continuously evolving process as
new way of thinking about water treatment infrastructure.
a unique solution for water treatment in a variety of environments. JTED aligns its R&D initiatives with the needs of each client, allowing them to take advantage of the client’s contributions to find innovative solutions.
56 | SYNAPSE.BIO
SYNAPSE.BIO | 57
For more information about John Todd Ecological Design ToddEcological.com Sales inquiries can be directed to: rich@toddecological.com +1 (508) 548-2545 BiomimicryBusinessIntelligence.com
by Biomimicry 3.8
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