Environmental Technologies Industries
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December 2001
Environmental Technologies Industries Newsletter
A Changing Market Brings Export Opportunities in India
By Marc A. Lemmond

U.S. suppliers of environmental products and services have found India to be a receptive and profitable market in recent years. As India globalizes its economy and struggles to cope with environmental concerns exacerbated by its high population growth and urbanization, U.S. solution-providers are discovering increasing opportunities.

In 1999, India's environmental technologies market was estimated at approximately $4.9 billion (based on market potential calculations and estimations, not actual revenues). The largest segment of this market are energy efficiency and renewable energy ($2.5 billion), water and wastewater treatment ($1.2 billion), and air pollution control ($408.0 million). The market grew at an annual average rate of 10-15 percent in the 1990s. However, the Southeast Asian financial crisis and a slowdown in India's industrial production are blamed for a drop in environmental market growth to around 10 percent in more recent years. Even in the face of the slowdown, the market for environmental technologies has consistently maintained a growth rage approximately twice that of the country's GDP.

Now, an improving regulatory structure, activism in the Indian judiciary, improved public environmental education, and rising funding (both domestic and international) for environmental projects are bolstering market growth. In the regulatory arena, key market-driving developments include:
  • Clean Energy - New "coal beneficiation" rules from the Ministry of Environment and Forests (MOEF) are reinforcing demand for clean coal technologies;
  • Air Pollution - More stringent vehicular emissions standards are being enforced in India as of this spring. These standards are set to be stiffened from now through 2005 until they match Euro I and Euro II levels;
  • Hazardous Waste - Revised biomedical waste-management rules and increasing private-sector investment in health care are boosting demand in this sector

From the government of India, one positive market signal is that national and state-level government environmental spending has been on the increase in India, rising nearly 20 percent over the past five years. Another is that tariffs on environmental goods have been targeted for reductions. Customs duties on most pollution-control equipment, for example, have been reduced to 25 percent. Additionally, in an attempt to speed conversion to natural gas vehicles, the government of India has reduced duties to 5 percent on a number of specific items recognized as being required for that conversion.

More recently, the California Environmental Business Council (CEBC), the Environmental Technologies Export Program of the California Trade and Commerce Agency, and the Department of Commerce's Environmental Technologies Industries (ETI) collaborated on an energy and environmental mission to India from February 13-19, 2001. The mission was led by Jim Miwa of the Environmental Technologies Export Program of the California Trade and Commerce Agency and supported by the efforts of U.S.-AEP and FCS. Mission participants met with representatives of trade associations, government officials, and preselected individual business representatives. Most of the companies that participated have secured business based on contacts mad during the mission (including San-i-Pak of Tracy, California, and STS Consultants of Green Bay, Wisconsin, whose success stories are featured in this issue of Environmental Export News). Their examples show that solid product or service offerings, combined with market research and due diligence, can lead to lucrative opportunities in India.

ETI has just released a completely new edition of India Environmental Technologies Export Market Plan. Last published in 1996, this comprehensive environmental market study includes individual sector analyses, competitive assessments, and information on key market contacts. Copies of the report are available upon request from ETI. It is also available on the office's Web site at www.environment.ita.doc.gov. For additional assistance with environmental exports to India, contact Marc Lemmond of ETI at Tel. (202) 482-3889 or via e-mail and marc_lemmond@ita.doc.gov.

Environmental Export News is Moving to Electronic Format
By David O'Connell

The Office of Environmental Technologies Industries (ETI) is moving to an electronic version and distribution of this newsletter. In preparation for the electronic version of the Environmental Export News, we ask you to subscribe by visiting the ETI home page at www.enviroment.ita.doc.gov. On the left side of the front page (in blue), click on "Mailing List," and provide your e-mail address. In addition, providing your company address and sector information will enable us to contact you about trade leads, trade events, and other trade-related news.

Environmental Export News will continue to provide you with timely and pertinent information (trade shows, trade missions, business opportunities, and success stories) to help your company increase its international sales. We welcome your suggestions for making the newsletter more helpful to your business. Feel free to e-mail David O'Connell, newsletter editor, at david_oconnell@ita.doc.gov, or call (202) 482-3509.

"Water For People": Helping the World's Poor
By Sage Chandler

Since 191, Water For People has been working with small, rural villages in developing countries to provide safe drinking water, sanitation systems, and health and hygiene education. It works with one village at a time, partnering with community groups and members of the village to plan and build their own water system and to keep it running. Water For People helps them learn maintenance techniques necessary to keep the water clean and safe. Water For People has completed more than 400 projects in nearly 40 developing countries. These projects have brought hope and safe water to villages in Latin America, Asia, and Africa - focusing on Guatemala, Honduras, Bolivia, Malawi, and India.

A lot of resources for "Water For People" comes from U.S. businesses. Companies like American Water Works Company, the Ford Meter Box Company, Kinetico Inc., Camp Dresser & McKee, CH2M Hill, Metcalf & Eddy and hundreds of others provide annual corporate support through the Water for People Sponsor Program and Workplace Giving Campaigns. Karen Zack, manager of Global Customer Care for Kinetico Inc., one of the world's leading manufacturers of water treatment equipment, shared her view of how U.S. businesses can, and should, partner with Water For People to advance humanitarian efforts in developing countries. "We work in an industry in which the quality of water is our focus," and Karen in a letter to members of the Ohio Water Quality Association, "and this industry has been very good to us. I think this is why I fell a responsibility to support Water For People. Together, we can change this world, one village at a time."

For more information about Water For People or how your company can become involved, please visit their Web site at www.waterforpeople.org or call Amy Douglas at (303) 734-3492.

Success Stories
By David O'Connell

San-i-Pak of Tracy, California was a participant in the California Environmental Business Council (CEBC)/Department of Commerce energy and environmental mission to India February 13-19, 2001. During the mission, San-i-Pak, along with its local partner Adity a Diagnostics of Delhi, finalized a purchase agreement with the Mumbai Municipal Corporation. The deal will have a final value of over $1 million. The company is now looking forward to building upon this initial success with additional business from India. San-i-Pak has been a manufacturer of steam sterilizers for bio-medical waste disposal since 1978. The company has international sales in Asia, Canada, Europe, Italy, New Zealand, South America, and the Virgin Islands. Prior to the mission, San-i-Pak conducted months of research on the market for bio-medical waste management in India. Augmenting its efforts with the resources of the federal government as well as those of the state of California, the company compiled information on regulatory drivers, sales potential, the competitive situation, tariffs, possible partners, intellectual property protection, and other factors. Arthur McCoy, senior vice president of San-i-Pak, says "As a California manufacturer, we see a lot of value in working with federal agencies such as the Department of Commerce and state agencies like the California State Trade and Commerce Agency to help support our efforts overseas. As a small company of only 60 employees, we do not have the resources to undertake the task of gathering all data required to effectively market in a given country."

STS Consultants of Green Bay, Wisconsin participated in the California Environmental Business Council (CEBC)/Department of Commerce energy and environmental mission to India February 13-19, 2001. As a result of the mission, STS Consultants is now in the process of finalizing a deal with an expected initial value of approximately $50,000 with the potential to grow to several hundred thousand dollars. STS Consultants is a consulting engineering firm, providing engineering design and environmental management services in the commercial, industrial, and government markets. During the 2001 mission, STS met representatives from an Indian consulting firm that was interested in working with STS on a project that required specialized expertise in a "beneficial solid waste reuse" project, which led to the eventful deal. The firm had no prior experience in India.

In 1998, Cooke Companies International (CCI) of Chapel Hill, North Carolina, attended Pollutex '98 in Singapore with a representative of the Office of Environmental Technologies Industries (ETI). The company's attendance was made possible, in part, by assistance from the World Trade Center - N.C., a recipient of a grant from the U.S. Department of Commerce's Market Development Cooperator Program. In total, about $350,000 in new work was related to the contacts CCI made at Pollutex '98, as well as significant and promising new work for the future. In 2000, CCI was assisted by ETI on a market-access issue it faced in the Netherlands. Thanks to advocacy efforts of the Department of Commerce, CCI's multi-million dollar deal went through.

CH2M Hill of Greenwood Village, Colorado was awarded a $492,000 contract in January 2001 to design six basic water and sanitation systems in Honduras. This is the second success story for the company in Honduras. In September 2000, it was awarded a four-month, 41.1 million water and sanitation system design contract. These projects, sponsored by the Honduran Social Investment Fund and the U.S. Agency for International Development (USAID), are the largest and most important that CH2M Hill has won in the region. CH2M Hill representatives say that prior to winning these contracts, CH2M Hill was virtually unknown in Honduras and had only worked in the country once (for the U.S. Army Corps of Engineers). The firm has now established a project office in Honduras, has contacts with major Honduran government agencies and USAID, and now possesses a reputation for doing high-quality work. The U.S. Department of Commerce (USDOC) played an important catalytic role in helping CH2M Hill establish these Honduran contacts. In June 2000, the USDOC's Office of Environmental Technologies Industries sponsored a reverse trade mission in the American Water Works Association's conference and exposition in Denver, CO. During that event, the Honduran delegation and their counterparts from other Central American countries delivered presentations about their water and wastewater project opportunities in the region, and CH2M Hill took the initiative of establishing and developing a business relationship with key Honduran officials.

Revised ETI Home Page

New graphics. New features. A new URL. Check out the new and improved ETI home page at www.environment.ita.doc.gov. We have added trade leads, tariff information, and expanded our section on finance. In addition, we added a Trade Barriers Survey Form that allows your company to provide input to the U.S. government on future trade negotiations.


ETI has just released new environmental technologies export market plans for India and Vietnam. Export market plans for China, Korea, and the water and wastewater sector will be published in upcoming months. These comprehensive environmental market studies include individual sector analyses, competitive assessments and information on key market contacts. These reports are available in print upon request from ETI and are also available on the office's Web site at www.environment.ita.doc.gov.


The U.S. Agency for International Development's Africa Trade Investment Policy program (ATRIP) will fund a grant of $450,000 for the phase-out of leaded gasoline in South Africa. Through a partnership with the Civil Engineering Research Foundation (CERF), the U.S. Environmental Protection Agency will organize an ongoing, broad-based program of business linkages between U.S. and African businesses to assist conversion to unleaded fuel. ETI recognized that the worldwide phase-out of leaded gasoline and other environmental considerations has created a strong and increasing demand for petroleum products that are clean burning and more refined. ETI worked with CERF, USAID, and EPA to create this winning strategy. For more information, contact Jane Siegel at (202) 482-0617.


ETI's China trade specialist Susan Simon has prepared a report on the Chinese environmental marketplace entitled, 2001 Environmental Analysis for China. China's hosting of the 2008 Olympics and its expected entrance into the World Trade Organization (WTO) in early 2002 are just several reasons why the Chinese environmental marketplace is flourishing. Simon's thorough report includes the following: an overview of China's environmental market; China's environmental investment projections; a list of specific environmental sub-sectors important to Chinese authorities; U.S. company position in the market; information on how to connect with visiting Chinese delegations; upcoming Asian Development Bank tenders; and a list of the U.S. Trade and Development Agency's feasibility studies that are available to U.S. firms. To get a copy of this report, contact Susan Simon at (202) 482-0713, or send an e-mail to Susan_Simon@ita.doc.gov.

China Reports to Be Available Soon. ETI expects an all-new edition of its export marketing plan for China to be available in late 2001. Another report, Partnering in China's Environmental Sector, should be available in late November. Recent Commercial Service reports on wastewater treatment technologies and opportunities in China's northwest provinces have already been posted on ETI's Web site. For trade leads, event notifications, or a copy of reports as they become available, complete and submit the "Data Base Update-Company Profile" form that is attached to this newsletter or contact ETI's Susan Simon at (202) 482-0713, or send an e-mail to Susan_Simon@ita.doc.gov.

Changzhou Wastewater Treatment Project. The U.S. Trade and Development Agency approved a $209,000 feasibility study grant to the city of Changzhou for the construction of two wastewater treatment plants. The wastewater treatment plants will enhance the city's ability to mitigate severe water pollution problems and will improve downstream water quality by reducing the discharge of untreated water. The grant was signed in Changzhou on September 20, 2001. The engineering/design opportunity will be competitively bid in Commerce Business Daily (CBD). Periodically checking the CBD and TDA's Web site (www.tda.gov) are the best ways to track feasibility studies, invitations to bid, and requests for proposals on overseas projects.

The U.S. and Foreign Commercial Service (USFCS) in Shanghai is developing a Chinese language environmental handbook to introduce U.S. environmental technologies to Chinese environmental planners. The handbook will include information about American companies, non-governmental organizations, and other environmental resources in the U.S. The USFCS plans to distribute 2,000 copies of the report to key government officials and Chinese companies in Shanghai, Anhui, Zhejiang, and Jiangsu. If your firm is interested in being listed in this handbook, contact Susan Simon at (202) 482-0713, or send an e-mail to Susan_Simon@ita.doc.gov.


The Canadian government has earmarked approximately $72 million for various programs aimed at reducing smog emissions in the transport sector. This initiative is part of a $726 million action plan on Climate Change announced in October 2000.

There is also a severe deterioration in the current water and wastewater infrastructure in Canada, resulting in less efficient water and wastewater treatment, with as much as 30 percent loss of water of municipal water use. New legislation, heightened awareness among operators, and support from a federal $83 million "Green Municipal Funds" program addressing some of these concerns are expected to drive the market for water treatment equipment in 2001-2003. For more information, contact Richard Vinson at the U.S. Commercial Service-Halifax at (902) 429-2482 or e-mail Richard.Vinson@mail.doc.gov; or Loretta Jonkers (ETI) at 202-482-0564.

GLOBE 2002, March 13-15, 2002, is Canada's premiere environmental trade show and conference, with a focus on energy and water treatment. The U.S. Commercial Service is hosting another environmental dealmaker event at the trade show, during which participating U.S. companies can enjoy the well-tuned promotional and matchmaking skills of the U.S. Commercial Service trade specialists, one-on-one appointments, market briefings, pre-show assistance, national promotion, and more. For details and market information, contact Cheryl Schell, USCS Vancouver, at (604) 642-6679, fax (604) 687-6095, or e-mail cheryl.schell@mail.doc.gov. The GLOBE Web site is www.globe.ca.


U.S. Department of Commerce's Environmental Technologies Trade Mission to the Netherlands and Belgium, March 2002. The U.S. Commercial Service of the U.S. Department of Commerce invites you to participate in a trade mission in The Hague and Brussels from March 5-6, 2002. U.S. environmental industry executives looking to increase sales will meet with potential business partners selected specifically for their own business objectives during the cost-effective method of entering the European market. For a complete schedule and details, contact:
  • In the Netherlands: Jesje Zijlstra, American Embassy The Hague, phone +31 70 3109-422 or e-mail jesje_zijlstra@mail.doc.gov.
  • In Belgium: Isabelle Uyttenhove, American Embassy Brussels, phone +32 2 508-2450 or e-mail isabelle.uyttenhove@mail.doc.gov.

WATER BERLIN 2003, International Trade Fair and Congress Water and Wastewater in conjunction with Gas Berlin 2003, April 7-11, 2003. Visit their Web site at www.water-berlin.com.

Latin America

Chilean Solid Waste Technical Seminar. On August 28, 2001 the Office of Environmental Technologies Industries (ETI), in conjunction with the U.S. Commercial Service in Santiago, sponsored a seminar entitled "Solid Waste Management: The Experience in Chile and the U.S." at the Santiago Chamber of Commerce. The goal of the technical seminar was to educate Chilean waste management professionals on alternative solid, hazardous, and medical waste treatment technologies. Three U.S. companies (Sanitec, C&S Engineers, and EarthTech) delivered their waste treatment presentations to an audience of approximately 200 Chilean business and government professionals from the waste management industry. Strong citizen awareness of the waste problem and heightened interest in cooperation with the United States attendant to the U.S.-Chile Free Trade Agreement contributed to the high attendance figure.

Institute of the Americas Hosts Water Roundtables in Mexico and Brazil. In October 2000, the Department of Commerce awarded the Institute of the Americas a two-year Market Development Cooperator Program grant to assist U.S. companies targeting the markets for water and wastewater treatment technologies and services in Latin America. The Institute has hosted three roundtable seminars during the first year of the grant - two in Mexico and one in Brazil. The roundtables created an open dialogue between industry and government officials on water and wastewater infrastructure needs in Mexico and Brazil. Local government officials briefed U.S. industry on their needs and highlighted upcoming priorities. The 2002 program will focus on opportunities in the water sector in Mexico, Brazil, and Chile. Executive summaries of these events are available from the Institute of the Americas. Contact Herman Nunez at (858) 453-5560. For more information on this program and events to take place in 2002, contact Ellen Zeytoun, Office of Environmental Technologies Industries at (202) 482-0359.

ETI to Host an Exporting Session at WQA 2002 in New Orleans, Louisiana. ETI trade specialists Sage Chandler and Ellen Zeytoun will hold two export-counseling sessions at the Water Quality Association's annual conference and exhibition in New Orleans, LA., March 5-9, 2002. Ms. Chandler and Ms. Zeytoun will also be available for individual export-counseling appointments throughout the show in the Department of Commerce's booth on the show floor. For more information, or to schedule an appointment, contact them at (202) 482-5225. For exhibit and general information about the WQA 2002 show call (630) 505-0160 or visit www.wqa.org.

Other News

Staff from the Office of Environmental Technologies Industries (ETI) recently toured the Corbalis Water Treatment plant in Fairfax County, Virginia, to observe U.S. water treatment technology and equipment in action. The Corbalis plant is one of five plants operated by the Fairfax County Water Authority in Fairfax, VA., and currently provides treated drinking water to more than 1.2 million customers. Thomas Bonacquisti, director of Water Quality and Production Division at the Corbalis plant, provided an extensive overview of several U.S. technologies involved in collecting and treating water for distribution to public consumers. The Corbalis plant is the first water treatment plant in Virginia - an one of few in the country - to treat water with ozone, a powerful disinfectant. Only 5-15 percent of all drinking water treated in the U.S. is treated with ozone technology, but this percentage is growing steadily as the technology advances and the cost decreases. Besides ozone, the plant uses at least sic different water treatment technologies and operates top-of-the-line U.S. environmental equipment. Company and site visits are being planned that focus on the manufacturing process for U.S. environmental technologies. If your company is interested in hosting ETI for a visit, contact Corey Wright at (202) 482-5225, or e-mail Corey_Wright@ita.doc.gov.

Export Finance Seminars planned for Philadelphia in December 2001; Chicago-Detroit, Denver and Kansas City in Spring 2002. The Office of Environmental Technologies Industries is sponsoring these five finance seminars that will provide the international business executive with a hands-on presentation of the various grants and export finance programs that are available to U.S. environmental exporters. In the last two years, the finance road show has traveled to seven U.S. cities (Fairfax, VA.,; Houston, TX.,; Seattle, WA.,; Atlanta, GA.,; Virginia Beach, VA.,; and San Francisco and Los Angeles, CA.) where companies have learned first hand about: grant programs provided by the National Association of State Development Agencies and Ecolinks - the U.S. Agency for International Development's Eastern Europe program; special finance programs of the U.S. Export-Import Bank designed for new-to-export and small to medium-sized environmental companies; feasibility studies, grants, and other forms of technical assistance provided by the U.S. Trade and Development Agency (TDA); and infrastructure and industrial projects in emerging markets financed by the multi-lateral development banks. Contact David O'Connell at (202) 482-3509 or via e-mail at David_OConnell@ita.doc.gov.

Advisory Committee Recruitment. The Office of Environmental Technologies Industries will be recruiting through the end of December 2001 for members of the Environmental Technologies Trade Advisory Committee (ETTAC). ETTAC is a federal committee that advises the Secretary of Commerce in his capacity as chairman of the Trade Promotion Coordinating Committee (TPCC), an advisory group comprised of 19 federal agencies. ETI is looking for environmental companies and trade association representatives at the CEO, president or executive vice president, and executive director level to represent the export interests of U.S. companies in the following sectors: analytical services; financial services; water and wastewater services and equipment; air pollution control/monitoring equipment; process and prevention technologies; environmental energy source; solid and hazardous waste equipment and management; and environmental engineering and consulting. For information on how to nominate or apply for membership, visit the ETI Web site at www.environment.ita.doc.gov or call Jane Siegel at (202) 482-0617.

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