Drinking water production with thermal solar power – new investment by mic AG               89 kB

Munich, September 2, 2010 – After five partial exits in 2009, early-stage investor mic AG has once again invested in a promising start-up company. The Munich-based company acquired 49% of Flores Solar Water GmbH (FSW), Augsburg. Both parties agreed not to disclose the purchase price. FSW develops and manufactures water purification systems (Solar Water Cells) that use thermal solar power to produce up to 10 litres of potable water from 100 litres of salt or brackish water. As such, the investment should prove to be ethical and ecological – as well as profitable.

Technical aspects aside, FSW is most focused on the environment. Solar Water Cells are made of 100% recyclable plastic, produced without the use of plasticisers. The process of water treatment is based on evaporation and condensation. The resulting potable water has been tested and certified by the Water Board Nuremberg and by international authorities, and meets the highest hygienic standards. The supply of drinking water to developing countries helps to minimise the threat of diseases and safeguards a sustainable drinking water supply – without the use of fossil fuels – and is therefore completely carbon-neutral.

mic AG has been inspired by the initiative of the United Nations, which at the end of July 2010 declared clean water a fundamental human right. While this UN resolution does not lead to a legally binding right to clean water under international law, it nevertheless has a high symbolic value that could influence the policy of governments and therefore any future funding plans of international organisations.

Prospective projects: solar-powered water treatment for regions with high sun exposure

Thanks to FSW’s cost-effective and sustainable innovation, it is possible to sell drinking water in remote, sunny regions at a price the local residents can afford. The technology, which can be implemented on a small as well as on a large scale, is particularly suited for near-coastal regions that have easy access to sea water.

Potable water in many Southeast Asian countries, for instance, is supplied by ship, a labour and energy inefficient method, which results in a high final price. In contrast, the use of the Solar Water Cells does not only mean a more favourable energy balance but can also – depending on seasonal shortage – result in a price that is 40% to 50% lower compared to competitors.

Different possible business models for FSW

Flores Solar Water GmbH could take its core product, the Solar Water Cells, and market them as stand-alone systems to customers around the world. With increasing demand, high economies of scale could quickly be achieved, particularly since manufacture only requires a limited set of tools.

Alternatively, FSW could – through an operating company and in cooperation with local municipalities, non-profit and private organisations – install water treatment parks that sell potable water directly to end users. Presently, plans are being drawn up for water treatment parks in five different locations, with a total of 14,000 solar modules installed. The outlay on the project amounts to EUR 3.4 million and has the potential to significantly increase the amount of clean water on offer in many places. Further investors are needed for future expansion and the increase of product capacity.

Water – resource of the future

Despite the fact that more than two-thirds of the Earth’s surface is covered by water, only a fraction of it can be used as drinking water. The simple reason is that 97% is saline, and nearly 2% is tied up in glaciers and polar caps. Before purification, the remaining fraction of 1% is only conditionally suitable for use as potable water. Worldwide, almost one billion people have no access to clean water. According to UNICEF, a child dies every eight seconds because of the consumption of polluted water. “This shows that water is the resource of the future”, says CFO Manuel Reitmeier. On that basis, FSW can be considered a socially responsible company. “We are proud of our new acquisition, which is in the expansion phase and currently building out its production capacities”, Reitmeier concludes.

About mic AG:

As an early-stage investor, Munich-based mic AG mainly invests in – and partly co-founds – companies from the communication, medical and microsystems technology sectors as well as from the fields of fibre optics and cleantech. It currently holds investments in eleven companies with a total value in the lower double-digit millions. mic AG has been listed in the Entry Standard of the Frankfurt Stock Exchange since October 2006.