The Next Gold Rush: How Startups are Solving the Water Crisis 💧💡

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Read time: 3 minutes 58 seconds

Hi friend 👋,

In 2019, I traveled to South Africa.

It’s a beautiful country with picturesque landscapes. Yet, water shortages were already a pressing issue then.

“Save water” signs were everywhere, and I heard South African musicians releasing two-minute-long songs to remind people to limit their showers to that duration.

Seeing that water shortage made me realize once again how f****** privileged we are in central Europe.

The situation in South Africa has only worsened since then, and it's clear that water scarcity is a global problem that requires immediate action.

So this week, we’re exploring the world of water scarcity and innovative startups tackling this critical issue. Let’s dive in

1. [Insights]: How Startups are Solving the Water Crisis 💧💡

Water scarcity is affecting 2 billion people globally who still don't have access to safe drinking water.😔

The agricultural industry is currently the largest consumer of freshwater due to its immense need for irrigation, as well as for livestock.

Traditional water sources like freshwater and groundwater are becoming increasingly stressed.

But hey, as optimists we see every problem as an opportunity. That’s why I’m excited about the booming market for sustainable water technologies. It’s growing fast, and it’s a golden opportunity for smart, impact-driven entrepreneurs.

As of 2024, the global market for novel water sustainability technologies is projected to reach approximately $15 billion, growing from $8 billion in 2019 at a compound annual growth rate (CAGR) of 13%​ (BCC Research)​.

💰💰💰 Therefore, future billionaires are betting on water to be the next big gold rush.

The global water crisis

The water issue is not just limited to countries of the southern part of the world; it's becoming a significant concern in northern regions as well. For instance, Europe experienced its worst drought in years, hitting countries like Spain, Italy and Germany hard this year and leading to severe water shortages​.

And it impacts not only residents and agriculture. But also businesses in various industries, from manufacturing to technology, are feeling the consequences.🚨

Big Tech & water shortages

So big tech is also feeling the effect of water shortages.

But wait, aren’t they also contributing to it quite significantly?

That’s true. The average data center uses as much water as three average-sized hospitals.

In 2019 Google planned on building a data center in central Chile, which is home to an increasingly arid Mediterranean climate.

According to the first design, the Google data center’s cooling system required 169 liters per second, and that in an area where people have been struggling with droughts for years.

Not good.

The Business Opportunity ⭐️

While the water crisis poses a serious threat, it also presents the 15 billion-dollar business opportunity for brave innovators.

Startups around the world are emerging to tackle this issue head-on, developing innovative solutions to ensure sustainable water supply. Here are a few notable ones:

Ocean Oasis is leveraging Norway’s offshore expertise. They harness wave power to deliver

desalinated water to the shore in a flexible, efficient, and emission-free way. 🌊

Or take US-based Genesis Systems, for example. They developed an atmospheric water generation technology that extracts water from the air. Literally turning air into water – how cool is that?

So, what’s the secret to scaling these innovative water solutions? Team up and win: 🤝 

Solving water scarcity needs cross-industry collaboration. New innovations need partners that can help scale those innovations.

Grundfos, a leading pump manufacturer, for example, collaborates with NGOs like World Vision and WaterAid to provide sustainable water solutions in Africa.

Their joint efforts have brought clean water to millions of people through solar-powered water systems and reliable water infrastructure.

Or the NGO Water.org founded by Matt Damon partnered with Mastercard to develop financial products and services enabling low-income households to access affordable loans for water and sanitation improvements.

So, is big tech causing or helping the water crisis?

As we saw with the Google example, big tech sure is a water-guzzling beast.

But here’s the flip side: advanced tech like AI and IoT can help transform water management. IBM is at the forefront with smart water solutions. According to the smart boys and girls at McKinsey, digital water management setups can cut use by 20-30%.

So we see tech isn’t all bad - it’s about tipping the balance towards more good than bad. 📊🔧

PS: If you're curious about the two-minute songs I mentioned earlier, check out this video on YouTube: https://www.youtube.com/watch?v=eEQNBQnTtp0.

It’s great to see how art and advocacy can interact.

2. Today’s Fast Snacks

[Good News Food]: 🌾 🇩🇰 Denmark has become the first country to introduce a CO2 tax, specifically targeting the agricultural sector.

This groundbreaking move aims to significantly reduce greenhouse gas emissions from farming, which accounts for a substantial portion of the country's overall emissions. The tax is set at 750 Danish crowns (€100) per tonne of CO2, encouraging farmers to adopt more sustainable practices and technologies.

The implementation of this tax is expected to push farmers towards innovations such as feed additives that reduce methane emissions, transitioning from animal to plant-based farming, and removing lowland soils from agricultural use.

Although the tax might increase costs for farmers, it is a critical step towards meeting Denmark's ambitious climate targets, which include a 70% reduction in greenhouse gas emissions by 2030 compared to 1990 levels.

Read more here.

[Good News Climate]: 🚲 🇫🇷 In an impressive move towards net zero, Paris plans to showcase a car-free future during the 2024 Olympics. The city will significantly reduce vehicle traffic, promoting walking, cycling, and public transportation.

This initiative is setting an example for cities worldwide in showing what a cleaner, quieter, and healthier urban environment can look like. Makes me think if I should move to Paris?

Read more here.

[Fun]: 🌍 🔍 Ever wondered how protein intake varies around the world? This infographic breaks down the daily protein sources by region, highlighting the diverse dietary habits across continents.

We see Africa and Asia lean heavily on plant-based proteins, which is more sustainable as plant proteins generally have a lower environmental footprint compared to animal proteins.

In North America and Europe, the meat consumption is sky-high, and that’s a big deal for greenhouse gas emissions. 👎

To combat this, we need to encourage a shift towards plant-based proteins and push for the development of alternatives like cultivated or fermentation-based meats. These steps are crucial in cutting down the negative climate impact of proteins. 👍

3. Community Space: 🙌

Daniel Bosman, is a friend of mine and a rockstar impact entrepreneur. His startup OUR GREENERY makes it easy for everyone to grow healthy veggies directly at home. They developed a sustainable indoor gardening solution.

Daniel is currently raising a €700k (pre)-seed round.

Interested? Check out his info deck and reach out to him here: ourgreenery.com/en.

Sincerely,
Lia Carlucci

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