Campbell AppliedPhysics Inc.

Water Scarcity Challenge, Global Markets, and California Innovation

"San Diego -- A World Leader in Desalination Technology“

2011.01.28

Campbell Applied

Physics Inc.

The Challenge

Slide 2

Global freshwater consumption rose sixfold between 1900 and 1995 - more than twice the rate of population growth.

About one third of the world's population already lives in countries considered to be 'water stressed' - that is, where consumption exceeds 10% of total supply.

If present trends continue, two out of every three people on Earth will live in that condition by 2025.

-- Kofi Annan We The Peoples, 2000

Campbell Applied

Physics Inc.

Geographic Distribution of Water Scarcity

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Slide 4

Campbell Applied

Physics Inc.

Global Contracted Desalination Capacity

2010 2016 net units

68 130 62 million m3/d

18,043 34,316 16,273 MGD

Slide 5

Source: Desalination Market 2010, Global Water Intelligence

Average Discharge of Mississippi:1,100 million m3/d; 290,844 MGD

Campbell Applied

Physics Inc.

Capital Expenditure, 2010

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Campbell Applied

Physics Inc.

Top 15 Desalination Markets 2007 - 2016

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Campbell Applied

Physics Inc.

Aspects of the Water Business

Slide 8

Campbell Applied

Physics Inc.

California Agency

Los Angeles Dept Water & Power

Long Beach Water Department

Muni Water District of Orange County

San Diego County Water Authority

San Francisco Pub Utilities Comm

Marina Water District

Delta Diablo Sanitation District

Pajaro Sunny Mesa Water District

East Bay Municipal Utility District

Santa Clara Valley Water District

Metropolitan Water District

Marin Muni Water District

City of Carlsbad

City of Santa Cruz

City of Sand City

City of Foster City

West Basin Water District

Contra Costa Water District

City of Huntington Beach

Alameda City Water District

Slide 9

Campbell Applied

Physics Inc.

California Firms Are Involved

Desalination Market 2010

Examined 106 firms; 14% California base

Desalination & Water Reuse Directory (2009)

Listing of 415 companies; ≈10% California base

Desalination Market 2007

Listed 176 companies including 29 Banks; 19 % California-based when financial institutions removed.

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Campbell Applied

Physics Inc.Slide 11

Technology Arbitrage:U.S. National Laboratories Cooperative R&D with CAP

Campbell Applied

Physics Inc.

Advanced Salt Water Reverse Osmosis (ASWROTM)

ASWRO is small to medium scale desalination system produce low cost potable water from sea water for sustainable community-based secure water source.

Removes salts and other elements from sea water

Cost effective for populations from 2,000 people and greater  

Eliminates design and construction time and variables  

Readily transportable, (connect and operate)  

Modular, enabling cost effective capacity increases.

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Campbell Applied

Physics Inc.

Population

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Campbell Applied

Physics Inc.

Patents

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Campbell Applied

Physics Inc.

Scientific Citations

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Campbell Applied

Physics Inc.

True Cost of Water

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Campbell Applied

Physics Inc.Slide 17

Contact Information

Anthony T. Jones, Ph.D., Chief Technology Officer, Campbell Applied Physics Inc.

Office: 916.200.3994Mobile: 916.990.3699 Email: tjones@campbellap.com