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Desolenator

Netherlands

Sector Energy
Employee Count 1-3
Is Incorporated? No
Foundation Date January 1, 2014

Description


Investments



Competitive Advantage

Global desalination capacity increased from 95.7million m3/day (2016) to 99.8million m3/d (2017). Global desalination market value was $13.31bn in 2016, predicted to reach $26.81bn by 2025. The largest markets are Middle East & Africa, accounting for 53% of revenue (2016), with seawater treatment accounting for 58.2% of global revenue. We have identified a number of core early target customers who with operations in sunshine-rich and water stressed areas, who currently rely on desalination technologies, predominantly Reverse Osmosis. These include international beverage companies who have ambitious sustainability and water stewardship targets, hotel resort owners in coastal and island , and municipal governments trying to supply distributed communities. Desolenator’s Value Proposition is to provide high quality pure water through a technology with low operating costs and low maintenance, whilst providing solid environmental credentials. In contrast to current large-scale desalination plants which have huge upfront costs and are limited by proximity to the grid, our technology needs is fully solar powered, is easily transportable, and can be set up within a few hours. Additionally, it is designed for ease of use, and for operation by non-technical individuals. Additionally, eliminating the supply chain for replacement filters or membranes is particularly attractive for isolated customers. Desolenator enables an easy disposal of low-concentration brine solution, reducing pressures from local municipalities. Although a commercial company, we also have a strong social mission and are deploying our technology to regions where the available water quality is far below World Health Organisation standards, such as Lake Turkana in Kenya where poor water sources result in long-term health problems for residents such as skeletal fluorosis and teeth mottling. We are currently in pilot phase. When launching, we will sell our technology directly to companies and in future license and offer a water-as-service model of our technology. Desolenator’s real value is found in sun-rich, water-stressed areas where there are under-utilised bodies of water. Around 40% of the global population lives between the Tropic of Cancer and Tropic of Capricorn where the geographical parameters are most suitable for Desolenator. Within this geography, we are highly suitable for off-grid regions or those marginalised from water purification systems. Our key customers include: 1) Businesses near a body of water that is too complex for existing technologies, or where available purification is unable to run continuously. 2) areas with increasingly complex contamination from saline and heavy metals, where existing technologies will become obsolete in the near future. 3) Areas relying on regular delivery of plastic bottles or water trucks to supply water, often far above the market price.


Detailed Info

Revenue Model Description

Desolenator is currently operating under the CAPEX model, with us selling units of our community sized system with an initial cost, along with recurring revenues from maintenance and licensing. With time, we are planned to transition to a model where we provide water as a service. We will receive payment from clients to maintain the systems which we have installed. Desolenator will have contracts running with customer companies where the provided water will be charged at a fee for cubic meters over time. We are aiming to be requesting 1 US dollar per cube meter of purified water. At this stage, we also aim to acquire long term contracts with customers for water provisioning, licencing and recurring income. With time, we are also planning to drive revenue through licencing fees, spin off products and applications, where we will be leasing our intellectual property to our clients. Thus far, Desolenator has de-risked product development and projects through grant funding. However, as we bring our first product to market in 2020, we anticipate to achieve profitability in the course of next year. While we have seen strong interest for our technology from a wide range of counterparties for an amazing range of potential applications, we will continue to focus on customers in our strategically chosen key verticals within the beverage and hospitality segments. Underpinning this assumption is our expectation that our main four existing clients and partners, who have recently grant-funded and/or purchased pilot- and research plants from us (for the beverage- and hospitality industries, for a humanitarian cause as well as municipal needs) will follow through on their initial investments with further orders for deployment in numerous potential locations that we are already in the process of identifying with them. Initially, we anticipate that almost all revenues will come from product sales, before we will be able to develop revenue streams from licensing our technology to distribution partners and from operating our technology as a utility service. Further information about financial projections is available upon NDA.