Liquid gold: A case for investing in wastewater treatment

Several major Indian cities, including Bengaluru, Delhi, Thane, Indore, Vadodara, and Rajkot, faced acute water shortages this past summer due to rapid urbanisation, low rainfall, and depleting groundwater levels. India has officially become a water-scarce country, and it may get worse if current trends persist.

Water resource management has been a persistent challenge in India, and the lack of water is exacerbating socio-economic inequities. For instance, this year in Bengaluru, about 30 localities turned to expensive water tankers when the piped water supply was only available every alternate day. The financial burden of accessing potable water falls disproportionately on low-income and economically stressed urban populations.

Additionally, India is reeling under severe climate change, with irregular rainfall patterns, droughts, increased ground temperatures and urban heat island effects observed in major Indian cities and towns. Such changes have far-reaching consequences on India’s water resources, ecology, hydrology, and the environment, and they have the potential to skew the issue of water scarcity further.

It is evident that water as a resource – freshwater, groundwater and wastewater – needs to be governed effectively. Clear freshwater is limited, and India’s groundwater tables have depleted at an unsustainable rate, with 29% of groundwater resources in India in a semi-critical, critical or overexploited state. This dire situation, coupled with the increasing demand for water, leads us to the question – Can sewage and wastewater recycling be a solution to India’s water problems?

Sewage: An Untapped Solution to India’s Water Crisis

Urban India generated 72,368 million litres of sewage per day (MLD) in 2020-21, with only 28% of sewage being treated through centralised sewage treatment infrastructure throughout the country.

The untapped potential of sewage as a water source is blocked by the inadequate capacity and connectivity of treatment infrastructure, lack of regulatory oversight and public awareness of the existing infrastructure. Despite the clear benefits of reusing treated wastewater for reducing freshwater demand, these issues are preventing us from harnessing wastewater resources to alleviate water scarcity especially in water-stressed regions.

  • Further, there are significant challenges to setting up centralised sewage treatment plants and associated pipelines, which include:
  • Limited availability of land to set up new treatment plants.
  • Inadequate mapping of connectivity between sewage drainage systems.
  • Challenges in identifying leakages and illegal dumping of sewage water.

Insufficient data on wastewater generation and collection points.
This necessitates high capital expenditure and increased operations and maintenance costs on account of the need to conduct tests to ensure water quality, sludge handling and the repeated use of chemicals, which prevents sewage from being adequately treated and, consequently, its reuse. The challenges point towards a clear need for decentralised, modular wastewater treatment solutions that can be easily retrofitted, require minimal maintenance, and enable wider adoption and water reuse.

Tellus Habitat , a start-up we recently invested in, has designed an innovative system to treat municipal sewage sustainably and cost-effectively.

The Innovation: Biofilter-based Integrated Wastewater Treatment

Tellus Habitat has developed an integrated wastewater treatment system (called R3H2O) using Advanced Dual Biofilters. The product is a decentralised, energy-efficient solution enabling the treatment of municipal sewage with up to 75% lower operating costs.

The key innovations in the R3H2O system are two-fold:

  • Material used in the synthesis of the advanced dual biofilters: Tellus Habitat’s research has led to the development of a proprietary material composition for the biofilters, which enables the efficient treatment of sewage, allowing for up to 98% recovery of wastewater.
  • Optimised treatment process: The R3H2O system features an optimised treatment process that maximises energy efficiency, with a lower overall energy consumption of between 0.7 to 1.1 kWh per kilolitre of wastewater treated, which is up to ~70% lower than competing technologies.

The central value proposition of R3H2O is that it enables reduced operating expenditure in treating municipal sewage through reduced energy consumption, zero use of chemicals, and extremely low volumes of sludge production. Further, in terms of safety, the system does not require dedicated operators since it is entirely automated, preventing the scope for injuries or even the loss of life.

By combining innovative materials, optimised processes, and a focus on energy efficiency and automation, Tellus Habitat’s R3H2O system offers a compelling solution to address the challenges of municipal sewage treatment.

Market Potential & Business Viability

Tellus Habitat is well-positioned to capitalise on the growing demand for sustainable wastewater treatment solutions in India. Since its inception in 2021, the start-up has successfully deployed its innovative R3H2O system in over 25 projects across various sectors, including residential villas, hotels, resorts, and industries. These deployments have demonstrated the company’s ability to enable the reuse of treated water for non-potable applications, addressing the pressing challenge of water scarcity. The treated water from R3H2O is compliant with Central and State Pollution Control Board Guidelines for non-potable use.

The solution is versatile and has multiple applications in residential, commercial and industrial sectors. Tellus is prioritising residential villas, hotels and resorts in southern India in the short term, and will look at scaling to commercial and industrial sectors thereafter.

Tellus Habitat aims to capitalise on the vast market potential for water and wastewater treatment solutions, which was estimated to be at $1.56 billion in 2022, with a compounded annual growth rate (CAGR) of 10.05% until 2029. The company’s innovative technology, proven track record, and alignment with the growing need for water conservation and reuse position it well for sustained growth and success in the years to come.

Tellus Habitat’s R3H2O: Driving Sustainable Impact

Deploying R3H2O has the potential to reduce the energy requirements of the integrated treatment process by up to 70% while eliminating the use of chemicals. With reduced sludge production, it enables the reuse of treated water for a variety of non-potable applications, directly contributing to SDG 6 – Provision of Clean Water and Sanitation for All, while aiding the mandate of SDG 13 – Climate Action.

The People behind Tellus Habitat

Tellus Habitat was founded in 2021 by Dr Seema Sukhani and Naveen Janardhan , a dynamic duo with complementary expertise in wastewater treatment and engineering.

Dr Seema Sukhani brings a wealth of knowledge and experience to the table. With a PhD in wastewater treatment from the prestigious Indian Institute of Science (IISc), Seema has spent over 7 years working in the water and sanitation management sectors across public and private entities.

Naveen Janardhan holds a BTech in Biotechnology from the RV College of Engineering. With 8 years of experience in R&D and deployment in mechanical engineering and wastewater treatment, Naveen’s technical expertise complements Seema’s domain knowledge. Together, they form a formidable team committed to revolutionising wastewater management practices in India.

Way Forward

Decentralised sewage and wastewater treatment will be critical in helping India overcome water scarcity issues by turning water into a circular resource and by reducing reliance on freshwater and groundwater sources.

Social Alpha has developed a comprehensive thesis identifying the critical problems in this area. The thesis-driven scouting focuses on innovations that solve key challenges in residential, commercial, and industrial wastewater treatment, such as cost-effectiveness and energy efficiency. These innovations, which span across technology, design, and process, can help overcome the limitations of centralised treatment infrastructure and enable the reuse of treated wastewater for non-potable applications.

Through this investment in Tellus Habitat, Social Alpha is supporting the development and deployment of an innovative, decentralised wastewater treatment solution. By backing companies like Tellus Habitat, we aim to promote the adoption of decentralised wastewater treatment solutions and help India achieve its water security and sustainable development goals..

Written by Shruti Parija and Anusha Bhansali , Climate and Sustainability, Social Alpha