Without question, the buzz at the
AMTA/
AWWA Annual Membrane Technology Conference in San Antonio TX in late February was all about universal Module MF/UF Systems. It appears that sometime in the past 12 months the tipping point was reached and consultants and municipalities are finally embracing the concept of bidding multiple UF/MF modules, with multiple qualified OEMs open to use any of these. This is very similar to the model I mentioned in my post in October 2012 (
Dow and Toray UF Modules Level Bidding Playing Field).
What was the buzz?
What has led me to make this statement is as follows:
- For a start, I had three consultants from national engineering firms drop by my booth and ask if we could build a MF/UF skid that either has interchangeable UF modules (i.e. has an adjustable header for different module configurations) or whether we could bid to a spec that qualified a number of MF/UF modules from different suppliers.
- Degremont used the show to promote a newly developed ‘SmartRackTM’ that can accommodate different brands of UF modules (their brochure was passed to me by someone at a bar one night).
- A paper was presented by Carollo Engineers detailing an existing system in Utah that has decided to retrofit with membrane racks designed for interchangeability so that in the future multiple membrane suppliers could bid for the replacement membranes. A factor in this decision was the fact that the installed membranes had not lasted as long as expected and the utility did not want to remain locked in to one membrane supplier. I had a few engineers say to me at the show that the MF/UF membranes in many existing systems are nearing the end of their life causing some concern to the owners that they are locked in to the original membrane supplier while they would prefer to bid out the replacement.
Summing up the mood of the show was a comment I heard at a bar late one night from a Senior VP from one of the Big Three MF/UF OEMs that “If you just want to buy the membranes, we’ll sell you the membranes….”
Now don’t think I was just hanging out at the bars at the conference, but any seasoned conference attendee will tell you that is where all the real news and developments are discussed at these events!
Walking the Talk!
To prove all of the buzz was not just hot air, in the past 3 months there have already been some significant developments.
West Basin Municipal Water District just put out a RFQ for OEMs to build a pilot system that can interchange MF/UF modules from different suppliers so that that the District can evaluate different modules for future installations. I have also been passed a draft specification to review from a national engineering firm for a significant sized system that will prequalify several OEMs and MF/UF modules as per the example in my previous
post. I have also been asked to provide budget pricing from another major engineering firm for a MF/UF system in a reuse application where the owner also wishes to bid this as a universal MF/UF system.
I do have to clarify that most of the above projects are reuse applications which are perhaps seen as a lower risk to launch the universal module model, but with the involvement now of the major consulting firms and significant size water utilities, it will not be long before we see a lot more drinking water projects using the same model.
Siemens Saying Uncle?
As I was about to finish this post, I read an article in Global Water Intelligence’s
May newsletter that
Siemens Water Technologies’ (SWT) CEO Lukas Loeffler has predicted a shift to horizontal integration in the MF/UF market with increased commoditization in the component business (read MF/UF modules). As a result, Siemens is planning on separately selling the Memcor membrane production facility in Australia from the rest of the Siemens water business. Loeffler said he did not think the commoditization will happen in the next 2 years but maybe over the next 10-15 years.
Obviously I agree with SWT’s assessment of the direction of the market but I don’t agree with the predicted gradual rate of change. Based on the developments in just the past 3 months, I predict we will see commoditization in 5 years or sooner. Not to the extent we see with the Reverse Osmosis market, but certainly bids for universal MF/UF module systems will become more and more common.
