Chapter 2: Czech Republic

(continued)



2.5 Demand for Environmental Technology

Demand for Environmental Technologies - Overview

In the majority of sectors, the demand for environmental technologies was estimated to be between "moderate and slowly growing" and "high and likely to grow." Generally, technologies for water and wastewater treatment were ranked among the most needed, followed by technologies for waste management, air, and energy. Demand for noise, vibration and occupational health and safety technologies was low.

In the air sector, demand was high for air pollution control/flue gas purification equipment (e.g. filters, scrubbers). Growing demand was expected for continuous-basis monitoring technologies for ambient air; and air sampling/laboratory analysis equipment for gaseous emissions.

Within the water and wastewater sector, high demand was identified for pollution prevention/waste minimization technologies for municipal wastewater; equipment for spill control and containment/clean-up for surface and ground water; and sludge treatment and disposal equipment for municipal and industrial wastewater. Technologies in increasing demand included: quality restoration and decontamination equipment for surface and ground water; construction of municipal wastewater collection networks; monitoring, sampling and analytical equipment for drinking water; and technologies for water recycling in the area of industrial wastewater.

Among the technologies available for waste management, high demand was identified for waste collection, transportation and storage equipment for hazardous waste. Increasing demand was expected for site remediation/clean-up equipment for contaminated land; waste collection/transportation and storage equipment for industrial and municipal waste; and technologies for incineration and landfill disposal of industrial waste.

In the energy sector, by far the most needed technologies were those that could be used for the retrofitting/rehabilitation of existing energy systems, followed by alternative (non-CFC) refrigerants. Demand for other technologies in this group was moderate.

Demand for noise, vibration, and occupational health and safety technologies was low. Abatement technologies (e.g. insulation, absorbtion), and protective equipment related to occupational health and safety was, however, in some demand in this category.

Technologies in Demand by Sector

The following tables present a summary of the responses received from interviewed parties. Additional information, based on sources other than interviews, is provided following the discussion and analysis of the tables.

In some cases, it was difficult to elicit information, because the technology grid in the questionnaire was detailed, and because many parties would only express an opinion on the demand for environmental technologies within their own field of activities. Some interviewed bodies (R&D centers, municipalities, select number of businesses) refused to assess technology demand even in basic environmental categories, due to the lack of knowledge.

The following scale was used for ranking demand: 5 - highest, and rapidly growing demand, 4 - high demand, likely to grow, 3 - moderate, slowly growing demand, 2 - low demand, will not grow, 1 - very low and decreasing demand, blank - no opinion.

Figures in cells show the average score, while those in brackets represent the number of responses.

Air

TABLE 2.13: ENVIRONMENTAL TECHNOLOGY DEMAND - AIR
  Ambient air Gaseous emissions

Air sampling/laboratory analysis 3.29 (7) 3.61 (9)
Continuous-basis monitoring 3.33 (6) 3.19 (8)
Air pollution control/flue gas purification equipment (e.g. filters, scrubbers) 3.06 (4) 4.00 (9)
Gas detection/warning devices 2.75 (4) 2.58 (6)
Emission abatement/cleaner production (e.g. low emission burners) 2.50 (4) 3.00 (6)
Instrumentation and process control/software 3.10 (5) 3.08 (6)
Technologies in high demand: #1 air pollution control/flue gas purification equipment (e.g. filters, scrubbers),
Technologies where demand is expected to rise: #2 air sampling/laboratory analysis (gaseous emissions)

Demand for air-related technologies was moderate. In high demand were technologies for air pollution control/flue gas purification equipment (e.g. filters, scrubbers). Growth in demand was expected for air sampling/laboratory analysis equipment for gaseous emissions; and continuous-basis monitoring equipment for ambient air. In the researcher's opinion, additional comments are necessary to elaborate on the situation presented above.

Air quality has a strong impact on the health of the general public and on the state of environment, and technologies reducing gaseous emissions occupy a significant part of the market at present. The current market demand for environmental technologies can be ranked as follows: 1) air pollution control technologies, 2) emissions/ambient air monitoring equipment, and air sampling, and 3) emission abatement/cleaner production technologies. Air pollution control technologies are represented by scrubbers, other flue gas purification units, and by large and sophisticated systems to reduce the emission of solid particles, sulfur dioxide, carbon oxide etc. By far the largest sums of money are being invested in this technology category, and the trend is expected to continue for several years to come.

Technologies for combustion conversion from coal to natural gas, and/or cogeneration technologies that reduce emissions are in demand at present, and demand is expected to grow in the near future. In contrast, cleaner production technologies are not in high demand now, but may be of greater importance once the enforcement of air related legislation becomes more stringent.

Water and Wastewater

TABLE 2.14: ENVIRONMENTAL TECHNOLOGY DEMAND - WATER AND WASTEWATER
  Surface and Ground Water Potable (Drinking) Water Municipal Wastewater Industrial Wastewater

Monitoring 3.36 (15) 3.50 (7) 3.43 (8) 3.63 (9)
Sampling/laboratory analysis 3.31 (14) 3.60 (6) 2.83 (7) 3.13 (9)
Construction of collection/supply networks 3.14 (8) 3.00 (7) 3.71 (8) 2.86 (8)
Inspection and reconditioning of existing supply and collection network 2.50 (3) 3.25 (5) 3.25 (7) 3.00 (6)
Standard physical, chemical, and biological treatment processes 3.00 (4) 3.00 (6) 3.40 (6) 3.00 (7)
Advanced (tertiary) treatment processes (e.g. UV/ozonation, activated carbon, phosphate removal, reverse osmosis) 3.33 (7) 3.17 (7) 3.00 (5) 3.20 (6)
Sludge treatment and disposal 3.67 (4) 3.33 (3) 4.00 (4) 3.83 (7)
Pollution prevention/waste minimization 3.60 (6) 3.33 (3) 4.17 (4) 3.25 (5)
Water recycling and reuse 3.40 (6) 2.33 (3) 3.00 (4) 3.58 (7)
Spill control and containment/clean-up 4.00 (6) 2.50 (2) 2.83 (4) 3.60 (6)
Quality restoration and decontamination 3.83 (7) 3.50 (4) 3.00 (5) 3.80 (6)
Instrumentation/process control/software 3.17 (7) 3.25 (4) 3.00 (4) 3.50 (5)
Technologies in high demand: #1 pollution prevention/waste minimization (municipal wastewater); #2 spill control and containment/clean-up (surface and ground water); #3 sludge treatment and disposal (municipal wastewater).
Technologies where demand is expected to rise: #4 quality restoration and decontamination (surface and ground water); #5 sludge treatment and disposal (industrial wastewater); #6 construction of municipal wastewater collection networks; #7 monitoring, sampling and analysis of drinking water; #8 water recycling and reuse (industrial wastewater)

Generally, demand for water and wastewater technologies was moderate, with growth tendencies. High demand in the sector was identified for technologies for pollution prevention/waste minimization for municipal wastewater; equipment for spill control and containment/clean-up for surface and ground water; and sludge treatment and disposal equipment for municipal and industrial wastewater. Technologies in increasing demand included: quality restoration and decontamination equipment for surface and ground water; construction of municipal wastewater collection networks; monitoring, sampling and analytical equipment for drinking water; and technologies for water recycling and reuse for industrial wastewater.

In the researcher's opinion, demand in this category would be better discussed separately as two sub-categories: water and wastewater.

The most important technology categories in water management (i.e. those attracting the greatest attention of technology producers and potential customers) are : 1) standard and advanced water treatment processes, 2) quality restoration and decontamination of water resources, and 3) sampling and monitoring. Standard and advanced treatment technologies can be further separated into products for large public water supply systems, and equipment for individual consumers, such as tap water treatment units for homes, labs etc.

Current interest in wastewater management concentrates on three technology categories: 1) wastewater treatment plant construction and modernization, using both standard and advanced treatment processes, 2) sampling and monitoring, and 3) pollution prevention. Demand is high for technologies for both municipal and industrial wastewater. Finally, sludge disposal is another major field where technologies are demanded.

Waste Management

TABLE 2.15: ENVIRONMENTAL TECHNOLOGY DEMAND - WASTE MANAGEMENT
  Municipal Solid Waste Industrial Waste Hazardous Waste Radioactive Waste

Waste collection/transportation and storage 3.57 (7) 3.61 (9) 4.06 (9) 2.00 (3)
Sample analysis/waste characterization 3.17 (6) 3.19 (8) 3.33 (9) 2.33 (3)
Site monitoring 3.17 (9) 3.00 (9) 3.25 (8) 2.00 (2)
Landfill disposal 3.13 (8) 3.45 (10) 3.39 (9) 2.00 (2)
Incineration 2.67 (6) 3.56 (9) 2.89 (9) 2.00 (2)
Composting/biomass conversion 2.33 (6) 1.83 (6) 1.80 (5) 2.00 (2)
Pollution prevention/waste minimization 2.70 (5) 3.00 (7) 3.08 (6) 4.00 (2)
Recycling/resource recovery 2.94 (8) 2.80 (10) 3.38 (8) 2.67 (3)
Spillage control/decontamination 3.30 (5) 3.38 (8) 3.44 (8) 3.00 (3)
Site remediation/clean-up of contaminated land 3.90 (5) 3.63 (8) 3.67 (9) 3.00 (3)
Technologies in high demand: #1 waste collection/transportation and storage (hazardous waste);
Technologies where demand is expected to rise: #2 site remediation/clean-up of contaminated land (municipal, hazardous, and industrial waste); #3 waste collection/transportation and storage (municipal and industrial waste); #4 incineration and landfill disposal (industrial waste); #5 pollution prevention/waste minimization - radioactive waste.

Overall, demand for waste management technologies was moderate, with technologies related to industrial and hazardous waste in highest demand in this category.

High demand was identified for equipment for hazardous waste collection/transportation and storage. Increasing demand was expected for site remediation/clean-up equipment for contaminated land; waste collection/transportation and storage equipment for industrial and municipal waste; and technologies for incineration and landfill disposal of industrial waste. Possible growth in demand was also identified for pollution prevention and waste minimization equipment in the area of radioactive waste.

In the researcher's opinion, by far the highest market demand is for those technologies employed in solid municipal waste disposal, followed by technologies for industrial waste (including hazardous waste) disposal. Site remediation and clean up of contaminated land is another area of high demand. The state is the most frequent customer for site remediation technologies. The most significant factors influencing growth in demand are the state of legislation and its enforcement, and the growing costs of waste disposal (see Chapter 3 for more details).

Disposal of radioactive waste is an acute problem, and a detailed investigation of possible disposal sites is under way. However, although disposal of radioactive waste is a priority issue for the Czech government, on the whole, the field does not account for a major portion of the waste management sector.

The Czech government has announced plans to build an incinerator for PCB disposal. The construction will be either financed, or co-financed from the state budget. The project should be initiated in 1997.

Finally, all waste producers generating more than 100 tons of ordinary waste, or more than 50 kg of hazardous waste annually must prepare formal waste management programs to be approved by local administration. A waste management program must include detailed information on the methods of waste disposal. This means that waste producers must either present a contract with a firm that specializes in waste salvage and/or disposal, or they must manage the waste disposal themselves (in incinerators, landfills, etc.). Whether these methods of disposal are efficient, cost-effective and environmentally friendly is questionable; therefore, there may be a growing niche for waste minimization technologies. Enterprises should become more receptive to innovative technologies as the enforcement of legislation improves, and the cost of waste disposal grows.

Energy

TABLE 2.16: ENVIRONMENTAL TECHNOLOGY DEMAND - ENERGY
  Energy and Power Generation Other Industrial Sectors (e.g. Manufacturing, Chemicals)

New/efficient energy and heat generation systems 3.00 (3) 2.25 (4)
Retrofitting/rehabilitation of existing systems 3.75 (4) 3.75 (4)
Process management and control (e.g. boiler tune-up, fuel efficiency optimization) 2.50 (2) 2.75 (4)
Heat recovery and energy savings (e.g. insulation) 3.00 (1) 3.00 (2)
Alternative/renewable energy systems (e.g. geothermal, biomass, solar) 3.00 (2) 2.33 (3)
Alternative (non-CFC) refrigerants 3.00 (2) 3.33 (3)
Instrumentation 3.00 (2) 3.00 (3)
Technologies where demand is expected to rise: #1 retrofitting/rehabilitation of existing systems - energy and power generation, other industrial sectors; #2 alternative (non-CFC) refrigerants - other industrial sectors.

Overall, demand for energy-related environmental technologies was moderate. In no single technology class was demand found to be high. Increasing demand was expected for technologies related to the retrofitting and rehabilitation of existing systems for both the energy sector and other industrial sectors, followed by alternative (non-CFC) refrigerants. Demand for other technologies in this sector was low to moderate.

In the researcher's opinion, the overall impression given in Table 2.16 reflects well the actual situation. Rehabilitation and retrofitting of existing energy systems, and the improvements in process management and control are currently under way, and can be expected to continue. New and efficient energy and heat generation systems are already being introduced on a small scale, and will become more important in the near future.

Energy-saving technologies, and alternative energy sources are not currently in high demand, although demand is expected to grow within the next few years. At present, aside from meeting environmental compliance requirements, energy generating companies are not forced to implement any significant energy-saving measures, largely because they are paid for energy supplied and not that saved. However, within the next few years rising fees for energy use will increase the demand for energy efficient/saving technologies among industrial users.

Alternative energy is a marginal area in the Czech Republic, particularly since the country does not have abundant sources of renewable energy. Those that do exist (e.g. solar, wind, geothermal energy) are to be found scattered across the country.

Noise, Vibration and OHS

TABLE 2.17: ENVIRONMENTAL TECHNOLOGY DEMAND - NOISE, VIBRATION AND OHS
  Noise and Vibration Occupational Health and Safety

Instrumentation/measuring and control devices 1.00 (1) 2.33 (3)
Protection equipment 2.00 (1) 2.83 (3)
Abatement (e.g. insulation, absorbtion) 1.00 (1) 2.75 (2)
Electromagnetic field exposure 1.00 (1) 2.00 (1)
Technologies in demand (moderate at best): #1 Protection equipment - occupational health and safety; #2 Abatement - occupational health and safety.

Demand in the noise, vibration, and occupational health and safety sector was low (see Table 2.17). Abatement technologies (e.g. insulation, absorbtion), and protection equipment related to occupational health and safety were in some demand in this category.

Overall, this sector is not given much attention. In the researcher's opinion, technologies most demanded in this group are those used for measuring and controlling noise in the work place, followed by health and safety protection equipment.

Major Environmental Technology End-Users

Table 2.18 presents the main end-users of environmental technologies as identified by respondents.

TABLE 2.18: MAJOR ENVIRONMENTAL TECHNOLOGY END-USERS BY SECTOR
Category Major End-users by Group

Air Industrial companies
Power plants, heat generating stations
Water Municipal sewerage operators
Potable water suppliers
Municipalities
Remediation and consulting companies
Hospitals
Industrial companies
Large waste producers
Municipal services
Food processing companies
Waste Municipal services
Large waste producers
Municipalities
Transportation companies
Mining companies
Cleaning services companies
Landfill operators
Waste processing companies
Energy Power plants, heat generating stations
Municipalities
Municipal services
Industrial companies
Noise and Vibration Large industrial companies
Construction companies
Note: The difference between "municipalities" and "municipal services": "Municipalities" are town administrations that order and purchase various technologies and services. "Municipal services" are companies, either private or controlled by municipalities, that provide town administrations with environmental services (e.g. water supply, waste collection).

Overall, the main end-users are municipalities. It is worth noting here that a significant share of money spent by municipalities comes from the State Environmental Fund which is the principal source of support for municipalities (up to three-fourths of the total cost of individual projects).

The business sector is the second major end-user group (constituted by both private companies and large state enterprises). There still exist a few state enterprises in the Czech Republic where a substantial share is owned by the state, and they account for a large portion of environmental expenditures (e.g. technologies reducing air emissions from power plants, soil reclamation after mining operations, site remediation work).

Presented below is an analysis of the major end-users in each environmental sector, based on respondents' opinions. It is important to note that the ranking of end-users may vary depending on the value of investments, or the number of projects cases considered. Such research, however, was outside the scope of this project.

Air

The major end-users of environmental technologies for air pollution control are operators of heating stations and power plants. Most power plants are owned by CEZ, the largest enterprise in the Czech Republic, in which the state still retains a majority share. Ownership of local heating stations varies - some are owned by former state enterprises that have become joint-stock companies, while others are private, or are owned by municipalities.

The second largest group of end-users includes various industries. Among the most significant sectors are metallurgy, chemical, pharmaceutical, engineering, glass, and other industrial branches.

Neither small, stationary pollution sources (domestic family housing) nor mobile sources (vehicles) are among significant end-users of air pollution control equipment. This is mainly because they are not currently subject to targeted regulations.

Water

The major end-users in this category are municipalities (or operators of systems), both for water and wastewater treatment systems. This situation should last well beyond the year 2000. Other important customers for wastewater treatment systems are: chemical plants, engineering works, machinery manufacturing works, and agriculture.

Family houses may become a significant customer for package wastewater treatment units, especially in more remote rural areas. Tap water treatment equipment is in high demand among individual consumers, especially in areas with poor quality potable water.

Waste

Municipalities are a major end-user of solid waste disposal technologies, for example those used for waste separation, salvage, landfilling, incineration. The most frequent end-users of technologies for hazardous waste disposal (incineration, landfilling, re-use technologies, solidification, etc.) are the chemical industry, machinery manufacturing, engineering, pulp and paper industries, and others.

Soil reclamation and site remediation technologies are of primary interest to the mining industry, energy sector (CEZ), and the state.

Energy

The structure of major end-users in the energy sector is somewhat similar to that in the air pollution control sector - power plants and heat generating stations, followed by other industrial sectors with high energy consumption. This situation is mainly driven by the national environmental policy, focusing on large stationary sources of air pollution. Increasing interest in energy-saving measures is expected from various industrial users and from municipalities as energy prices increase.

Noise and Vibration

Noise abatement technologies for indoor workplaces are important in metallurgic, mining, and heavy machinery industries, while outside noise pollution is an interest area for some municipalities. The construction industry is also a significant client. Technologies reducing vibration, of some concern in heavy industries, are currently not in great demand.

No major changes in end-users of environmental technologies is expected in any of the above categories. While some small changes may occur in the order, the principal customers are expected to remain the same.


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