Equity
21 Days left

Solar Water Solutions – Clean water with just sun

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Kevin Gaspar about 13 hours ago

Solar Water ATM, Kenya – "... people in Kenya are buying water from Solar Water ATMs using mobile payments." How much they pay?

esaarnio about 12 hours ago

envirotecmagazine.com/2020/02/19/ wrote "They give access to WHO standard drinking water to over 6,000 customers in Kitui County at 0.1$ per 20-liter jerry can. The price and environmental footprint per water liter are remarkably lower compared to the single-use plastic bottles from local kiosks."

Solar Water Solutions Oy
Solar Water Solutions Oy
about 3 hours ago

Dear Kevin, Thank you for your question! At the moment in low income rural areas in Kenya people as an average can afford to pay 10 KES per 20 L jerry can, which is approximately 0,0085 € per L. This means that customers can buy purified high-quality drinking water locally from the Solar Water ATM at the same price as they used to buy untreated, contaminate water. In areas closer to larger villages the price is usually 2-4 times higher.

Solar Water ATM is a containerized purification system designed by Solar Water Solutions, which includes a SolarRO 1500 system and an integrated automated water dispenser with all remote monitoring features. Customers in rural Africa can buy affordable water from this automatic water ATM using mobile payments. The target end-customers for this product are local water vendors, municipalities, NGOs, refugee camps and schools.

Kind regards, Antti Pohjola

Solar Water Solutions Oy
Solar Water Solutions Oy
about 3 hours ago

Dear Esa, thank you for your good comment. Kind regards, Antti Pohjola

anonymous 2 days ago

Hi Antti, would you have a rough breakdown by family of products of sales and future sales? I'm very interested to understand what's the money maker and what your expectations are about that. Intuitively I would expect the market of Finns lost on a remote island is very marginal and I would rather you go for the billion people who don't have access to clean water. Are you well positioned for that? If not, who are you competitors (regardless of the environmental impact) and what would it take for you to leapfrog them all?

Solar Water Solutions Oy
Solar Water Solutions Oy
about 14 hours ago

Thank you for your question! In relative terms we expect the sales of the larger capacity systems to increase during the next years (so far the mini systems have been approximately 30% of the sales). For example in 2020e and 2022e the breakdown of sales revenue according to our estimates will be the following: 2020e (Solar RO 7000 and 3500 57%, SolarRO 1500 32%, SolarRO MINI 11%) and 2022e (Solar RO 7000 and 3500 48%, SolarRO 1500 46%, SolarRO MINI 6%). This means that the company’s larger capacity products are estimated to bring the largest part of the revenue during the next few years (especially from South East Asia, Caribbean and Africa).

The company’s strategy is to sell products and grow through a global network of professional distribution partners. Distribution Channel: Solar Water Solutions as a technology provider aim to form distribution partnerships with strong regional water treatment companies that have existing clients and preferably access to capital. They can also take part to local tenders with their local reference portfolio. With the Mini systems one potential option to enable efficient scale-up is licensing with a larger company that has an extensive distribution network.

Competing reverse osmosis (RO) technologies utilize grid power or diesel generators as a power source. Competing solar powered systems need to charge the power first to batteries before powering the RO system. Also, one competing system in the market has a computer based system (with higher investment and operating costs than the company’s system). In remote locations, where grid power is not available, polluting diesel generators have been the only energy options. Solar Water Solution is a leader of small-scale decentralized RO systems in terms of technology, having the most competitive life-cycle costs.

Kind regards, Antti Pohjola

Alpakka 7 days ago

Will you be doing any interviews during this invesdor period? Always nice to see and hear the people explain more about their company.

Solar Water Solutions Oy
Solar Water Solutions Oy
4 days ago

Thank you! We have now a video in the pitch (company profile section) with interviews. Kind regards, Antti Pohjola

Alpakka about 15 hours ago

Please check, because I’m only finding the 2min video and pictures.

anonymous 7 days ago

It all sounds very investable but could you answer 2 questions, please? 1. If you have solved the problem of solar intermittency WITHOUT costly expensive battery storage, is this not the extremely valuable technology you should be selling? 2. Do you consider yourselves to have a "moat"? By that I mean - can you continue to produce clean water by clean means better and cheaper than your rivals for the foreseeable future? Thanks.

Solar Water Solutions Oy
Solar Water Solutions Oy
4 days ago

Thank you! We consider that selling a product with a technology vs. selling only the technology creates more value to the company. The other reason is that the products with the technology always includes extensive knowhow which the company has created and developed during the R&D projects, as a result of real environment tests and user cases. So this knowhow combined with the proprietary technology creates significantly more value than only the pure technology itself.

Currently we do not see any other technology in small-scale (with a capacity of 1-250 m3 per day) decentralized off-grid desalination with lower life-cycle costs. Another major advantage is that solar energy as a power source creates zero CO2 emissions.

Kind regards, Antti Pohjola

anonymous 2 days ago

Thank you Antti. I am still fascinated by further applications of your battery-free solutions. Could it be adapted, for example, for general home use to make battery storage (like Tesla's et al) redundant? This would make the technology many times more valuable than the specific product. Or does it work only as part of the specific desalination process? I am not after your trade secrets (which I would not understand anyway)! I simply want to better assess the potential of your company - even if the product as it stands seems worth investing in. Thanks Mike

anonymous 7 days ago

Miksi teillä on Tekesin laina omassa pääomassa?

Solar Water Solutions Oy
Solar Water Solutions Oy
6 days ago

Hei, Kiitos. Tekes laina on yhtiön taseessa pitkäaikaisessa vieraassa pääomassa (lainat rahoituslaitoksilta). Laita mielellään viestiä, jos haluat vielä lisätietoja. Ystävälisin terveisin, Antti Pohjola

anonymous 6 days ago

Liitteenä olevan tilinpäätöksen 2019 liitetiedoissa on joku Tekes laina omassa pääomassa..

ES 7 days ago

Dear SWS-Team, can you say if there is annual dividend payment and how high this would be in forecast? Also how can I sell my shares to realise capital form company growth?

thank you, Ewald

Solar Water Solutions Oy
Solar Water Solutions Oy
6 days ago

Dear Ewald, Thank you for your questions! The company will focus on strong growth and all future earning so far are invested to scale-up the business. This is why it is too early to consider future dividends. Of course, the company will keep reviewing this and in case there is excess capital after investments on growth then dividends (and a clear dividend strategy) would be the best option.

EXIT-opportunity for investors: Solar Water Solutions aims for strong international growth and the next potential financial round to a private equity company or water fund to raise funds enabling larger scale-up opportunities to the company in 2-3 years could be one exit option to investors. Another option as an EXIT strategy for investors is an IPO after 2023 which would also enable larger global scale-up opportunities for the company.

Kind regards, Antti Pohjola

anonymous 8 days ago

Dear SWS, Indeed, I echo the others, this is a very interesting concept and an investment opportunity. There seems to be quite a little on the financials though. I understand that you don’t want to give out detailed figures, but it would be helpful to have some basics. Would you be able to elaborate on the following:

  1. What is roughly the sales price of the container unit and a smaller unit?
  2. How much is the annual running/maintenance cost of these units?

[The reason it would be good to know the above is to get an understanding on how affordable are these units in third world environment.]

  1. You state that you aim at having 100M€ revenue by 2025. Can you give an idea of the profit margin you are aiming at in 2025?
  2. Do you currently have positive cashflow, and if not, when and at what level of revenue are you likely to have positive cashflow.

[Answers to these would help to form an idea of the current and future value of SWS is.]

  1. What is your plan to scale up the production and the sales of the units? Do you have capacity in your current production line? Plans to increase the sales channels, and on that, is the plan to build your own sales teams or use local agents?
  2. On what are the funds you are raising now going to be spent? R&D? Sales? Production? Or to finance day-to-day cash out flows?

[Answers to last two questions would give some idea to the current and future cashflow needs.]

Sorry for lengthy questions, but I would think it will help potential investors to form a better understanding of the investment potential in the long-run.

Many thanks,

Joni Sairanen TidalStone Ltd. London

Solar Water Solutions Oy
Solar Water Solutions Oy
6 days ago

Dear Joni, Thank your for your questions! For example the sales price of the SolarRO 3500 sea water systems (pre-installed into a 20 feet container, like the picture in the presentation on the beach), producing 3500 liters per hour from the Atlantic Ocean cost 85.000€. The annual average yearly maintenance costs (including pre-filters, membranes every 5 years, UV light cycle every year) is 1.600 € per year. This also means zero diesel costs and zero CO2 emissions. The SolarRO mini 150 is a small mobile system producing 60 liters per hour from the Baltic Sea for example to a private house cost 4.350 € (not incl. vat). The average yearly maintenance costs is 270 €. The profit margin estimate for 2025 is 17%. We would assume to have leasing agreements in markets where the import duties are high, for example in India.

We target to be cash flow positive end of this year (and adjust R&D expenses accordingly during the course of the year).

We can meet the production capacity for this year in our production facilities (possibly need to rent additional space during 4Q2020). Moreover we have a scale-up plan in place and there is no need for big capital investments. We are able to rent additional space and recruit and train new technicians to meet the growing needs.

We aim to build our distribution channel network and have at least total 5 new distribution partner agreements during 2020 mainly in South East Asia, Caribbean and LATAM. We will strengthen (new recruits) our own sales team to support the distribution partner sales and marketing. We though only sell our products through the professional distribution partners.

The company mainly aims to fund growth with the capital raised. This means to establish new sales and distribution channels in South East Asia, the Caribbean, and South America. Moreover to recruit new positions for international sales. New marketing efforts is also key to increase global awareness. We are also planning to further develop the R&D for example integrating wind energy system to solar. Please kindly also see the use of funding in the pitch section ‘use of funds’ for the numbers and two different scenarios.

Kind regards,
Antti Pohjola

anonymous 8 days ago

Dear SWS team, I examined your documents but could not find any auditor´s report. I think we should have them (both 2018 and 2019).

Solar Water Solutions Oy
Solar Water Solutions Oy
6 days ago

Thank you for your comment. Please kindly now also find the auditor’s report for 2018 from the attachments. The company’s 2019 financial auditing is still on process and the auditor's report 2019 will be updated to the materials after the company will receive it from the auditor. Kind regards, Antti Pohjola

Alpakka 8 days ago

Good day. Can you clarify what happens to the waste products (salt, dirt, etc.) separated from the water. I suppose the waste can potentially be very bad for nature, so who/how is this handled in possibly already difficult circumstances?

Solar Water Solutions Oy
Solar Water Solutions Oy
6 days ago

Thank you for your questions. Brine (byproduct), if seawater is used as a raw water, (brine is approximately 2,5 times the salinity of the sea water) can be put back to the sea because it dilutes with seawater (this is especially the case in decentralized small-scale like systems like the company’s SolarRO systems) and they do not harm the marine life or ecosystem. Itself the brine is not harmful for the environment, since it contains the same dissolved elements as raw water. This is why the brine doesn't need any treatment when returned to the sea.

It is of course a different case in large desalination plants producing hundreds of thousands of cubic meters per day for example to large cities. There the problem is that the marine life could be affected as the salinity could increase in nearby seashore. As mentioned, in small scale systems, like the company’s products, this is not the case.

As to brackish water (lower salinity than sea water) from the boreholes for example in rural Africa, depending on its TDS (Total dissolved solids), the brine can be used for special kind of irrigation or as drinking water for animals (this is what we do in Kenya). Other option in developing countries rural areas is hand washing and toilet use.

Kind regards, Antti Pohjola

Solar Water Solutions Oy
Solar Water Solutions Oy
8 days ago

Two questions came from an investor:

We would like to know about competitors and what makes the Solar Water Solutions Oy special? How their technology is specific and unique that some other role player can not take over their market?

Please kindly find the answers: Solar power obtained from PV panels is by nature variable. Any reverse osmosis (RO) system requires constant pressure to operate properly and because of this the conventional RO units need constant feed flow volume into the RO system. To acheive this the competing solar powered desalination solutions need to store the energy from the PV panels first into a battery bank, which then delivers constant power to the high pressure RO pump. As the process is very energy intensive, it requires lot’s of batteries that would minimum double the RO system's investment costs. Also batteries are heavy and need to be replaced every few years. (Lithium batteries would be more durable, but they cost several times more).

The company’s patented adaptive valve (ANVS) technology enables direct use of solar PV panels as the energy source in the reverse osmosis (RO) process, without any energy storage costs (batteries). Solar Water Solutions RO is not sensitive to fluctuating feed flow, due to the variable solar irradiance, because the ANVS maintains the RO system pressure constant at the optimal level all the time, while the system produces maximal volume of clean water.

The company’ s technology allows the lowest operational and life-cycle costs vs. competing diesel or solar powered desalination systems.

The company’s international patent portfolio ensures the freedom to operate using the company’s proprietary technology in target geographical areas.

Kind regards, Antti Pohjola

anonymous 8 days ago

Dear SWS team, Interesting opportunity with a good purpose!

A couuple of questions: - what is the cost per m3? what is the typical gross margin? - Do you have a comparision of the cost/m3 vs other technologies mentioned ? - what is the current order backlog? - how much will current shareholders invest in minimum? Korkia? - with a sales of 300k+ last year and 55k in Q1 2020, the valuation sounds very high. Would it be possible to get somewhat more reasoning for such a high valuation?

Solar Water Solutions Oy
Solar Water Solutions Oy
4 days ago

Thank you for your questions! The cost per m3 little bit varies between the company’s products, but as an average the life-cycle costs (the investment costs and operational costs) to the end customer are 1 € per m3 or even under that. The company has a healthy gross margin. We would be pleased to disclose this more in detail in more private discussions to potential investors considering that this forum is basically public information. Comparing to other decentralized desalination systems currently used in rural areas and off-grid island locations they have average 2-3 times higher life-cycle costs (mainly due to diesel costs as require a diesel generator as a power source or due to the required battery investments in competing solar powered technologies).

Based on current ongoing negotiations of the ‘high probability’ cases and confirmed orders we expect to close deals worth over 1,68 M€ during this year.

Regarding the current shareholders investments, for example my personal equity investment will be min. 90.000 € during this financial round.

There has been extensive and long period of R&D to develop the system, products and related knowhow from 2014 to the current stage. Considering the significant investments in capital, human resources, time and effort, having a strong patent portfolio and knowhow and also taking into account the future growth opportunities in a hugely growing market we consider this valuation as fair with significant growth opportunities already during the next few years. (‘Desalination off-grid using renewable energy is estimated to be a 35 billion dollar market by 2028 starting from very low in 2018’; source: IDTechEX 2018).

Kind regards, Antti Pohjola

anonymous 8 days ago

Dear SWS Team,

  1. Exciting business idea! Can you share links to the patent families or the numbers of the parent patents?
  2. Q12020 Sales was 55k€. H12020 estimate is 498k€. How confident are you with the Q2 estimate?

Solar Water Solutions Oy
Solar Water Solutions Oy
7 days ago

Thank you! The company’s strategy is to have a freedom to operate in all strategic and potential future geographical areas. We have several patents protecting the company’s proprietary technology. The granted country patents include among others the US, EU and China. We do not publicly disclose or comment more in detail the patent portfolio, but would be pleased to discuss it more in detail in more private conversations with current or potential investors.

The estimates are based on a ‘base case’ scenario of the company's current confirmed and on-going negotiations particularly from Scandinavia, Indonesia and Kenya.

Kind regards, Antti Pohjola