Investing in the unconventional – JSP Enviro

Wastewater: A Critical Environmental Challenge

Textile belts in India have been plagued by high levels of toxic effluent discharge, which pollutes water bodies and results in public health concerns. Through the Pollution Control Boards, the government has developed regulations regarding effluent treatment, reuse of treated water, and zero liquid discharge in closed-loop ecosystems. However, enforcement continues to remain a challenge. The issue of effluent treatment extends to most manufacturing and industrial clusters in India, leading to sub-optimal usage of existing water resources.

This is primarily on account of high capital and operational costs in running Effluent Treatment Plants (ETPs), which becomes a limiting factor for uptake, especially for micro, small and medium industries with limited affordability, leading to non-compliance of discharge guidelines, and groundwater, surface water, and marine pollution.

According to an estimate in December 2021, in India, approximately 13,500 million litres/day of industrial wastewater is generated by manufacturing clusters, 60% of which is treated at the country’s 190+ common effluent treatment plants (CETPs). Further, around 6.2 billion litres of untreated industrial wastewater are generated every day across India.

Every drop of water is precious in a water-scarce nation like India. According to a 2019 report by NITI Aayog, India’s water demand will exceed supply by a factor of two by 2030. It is critical to conserve existing water sources and reduce reliance on depleting groundwater and freshwater resources. Wastewater as a resource can augment the water demand, especially in industrial units reliant on water for operations and other non-potable uses.

One such technology we have recently invested in is JSP Enviro’s bio-electrochemical (BES) based wastewater treatment system.

The Company’s Innovation & Tech

JSP Enviro Private Limited has developed a bio-electrochemical based wastewater treatment system using Microbial Fuel Cells (MFCs). The product is a decentralised, energy-efficient solution for secondary treatment of industrial wastewater with high organic load for small and micro industries with up to 70% lower operating costs. The product innovation stems from the specialised nature of the microbial consortium developed as part of the company’s research with a unique coating on the anode to increase the prospect of biofilm formation and a catalyst coating on the cathode for improved oxygen reduction reaction. The BES reduces the wastewater’s organic load, decreasing the COD and BOD to provide reusable water to the industries.

The major value proposition of BES lies in providing lower operational costs of wastewater treatment at the secondary stage stemming from lower energy usage, reduced usage of chemicals in the integrated treatment process, and negligible volumes of sludge being generated. This stands out in comparison to the existing Activated Sludge Process (ASP), Membrane Bioreactor (MBR) and Moving Bed Biofilm Reactor (MBBR) technologies.

Market Potential & Business Viability

Given the decentralised nature of the innovation and its ability to be retrofitted across a combination of primary and tertiary treatment technologies, JSP Enviro is poised to achieve scale across industries and geographies. The company’s current pilot in Ero Dyeing in the textile belt in Erode, Tamil Nadu, has been successful, with the treated water meeting the CPCB pollution control norms post-tertiary treatment.

Textile dyeing and fabric processing units in Tamil Nadu and Karnataka will form the priority customer segments for the company in the short term, with the potential to move to distilleries and F&B industries in the long term. The textile waste management industry is slated to grow at a CAGR of 12%, placing the company in good stead in terms of scalability.

Potential Impact Creation

Adding the BES to existing ASP & MBR processes reduces energy requirements of the integrated treatment process by 50-80% while generating power and reducing usage of chemicals by 70%. It enables the reuse of treated water, directly contributing to SDG 6 – Provision of clean water and sanitation for all, while aiding the mandate of SDG 12: Responsible consumption and production and SDG 13: Climate Action.

Regulatory Compliance Enablement

CPCB has identified the following challenges with respect to CETPs which cater to multiple manufacturing units within an identified industrial cluster:

• Limited capacities of CETP operating agencies on the quality & quantity of effluent discharged by member units
• Inadequate monitoring mechanisms and data management abilities to identify defaulters
• Unavailability & non-hiring of technically qualified & trained workforce for the operation & maintenance of CETPs

In January 2023, the Government of India issued the Draft Regulation of Common Effluent Treatment Plants Rules, 2022, which recognised that CETPs are to be introduced for the collective treatment of effluents from small and medium-scale enterprises in industrial clusters to reduce the cost of pollution abatement of individual industries and homogenise wastewater from member industries.

As effluent discharge regulations are tightened, we anticipate the need for technologies to help industries comply with emerging pollution control guidelines. Existing solutions in the market have high land footprints, use energy-intensive chemicals, require sludge handling, and do not adequately meet discharge norms. Cost is a critical factor, as spending on wastewater treatment contributes to higher overheads, affecting the competitiveness of industries.

With respect to textiles, small and medium textile units are increasingly being mandated to comply with environmental norms in the US and Europe as suppliers to major textile brands. Brands subscribe to international standards and commitments such as Global Organic Textile Standards (GOTS), DETOX & Zero Discharge of Hazardous Chemicals. The demonstrated commitment from the brand’s end to sustainability flows downstream to their suppliers and partners, indicating the need for innovative solutions that enable adherence to such standards and commitments.

Exemplary Founders

JSP Enviro was founded by Priyadharshini Mani, Fidal Kumar, and Suresh Paul Jones. Priya holds a PhD from the University of Westminster in bioengineering and wastewater treatment, with a decade of experience in the apparel industry while Fidal holds a PhD from IIT – Madras in nanotechnology and surface chemistry, with ten years of experience in new materials research. Along with the third co-founder, Suresh Paul Jones (MBA – London School of Commerce) who has entrepreneurial experience in the water industry, the team is well placed to take the company to market and build towards scale.

Way Forward

The issue of water security and access in India is daunting, given the pace of economic development coupled with frenzied degrees of urbanisation. Today, there is a demonstrated need for effective translational research from academia, concerted investments in early-stage wastewater treatment innovations and a solid grip on enforcing regulatory compliances. A combination of technology, adequate financing with a longer gestation period and enabling regulatory policies will help convert wastewater into a circular and reliable water source; and move the needle positively in the longer run.

Social Alpha and Rainmatter are committed to supporting energy-efficient wastewater treatment innovations with lower land and cost footprints. We are keen to assess the design, process, and technology innovations in the space, which can reduce operational, sludge handling and chemical usage costs in the long run.