Biomimicry Case Study: Living Machines by JTED

LIVING MACHINES

BY JOHN TODD ECOLOGICAL DESIGN

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by Biomimicry 3.8

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,

08

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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TEXT PLACEHOLDER

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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TEXT PLACEHOLDER

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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