Luca Stier
Samuel Volders
Stijn Theeuwen
Christian Schmidt
Maastricht University
Jolien Huybrechts
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Boreal Light was founded in 2014 by Dr. Hamed Beheshti, Co-Founder & CEO, and Ali Al-Hakim, Co-Founder & CTO. The company developed an innovative solar-powered water desalination system that provides clean drinking water to communities in need, with the aim to “supply 100 million people with clean pressurized water by 2030”, Ali explained. He also elaborated on their journey, saying, “The first four years we put into research and development. There were only two of us. We financed it all ourselves from our own funds. And in 2018, we finally installed the first system.”
Today, the innovation addresses a number of UN Sustainable Development Goals (SDGs), directly contributing to Goal 3: Good Health and Well-being by preventing waterborne diseases, Goal 6: Clean Water and Sanitation by providing clean drinking water, and Goal 7: Affordable and Clean Energy by using solar power. It further supports Goal 9: Industry, Innovation & Infrastructure with its patented technology and infrastructure development, Goal 13: Climate Action via reduced carbon emissions, Goal 14: Life Below Water through its sustainable saline and fish farming practice, and Goal 17: Partnerships for the Goals by working together with organizations like Vision Hope International E.V., which is an independent German-based non-for-profit humanitarian organization engaged in the Middle East and North Africa (MENA region).
The innovation of Boreal Light is "basically a solar-powered water desalination plant that works with reverse osmosis,” Ali explained. Unlike traditional systems, Boreal Light's innovation operates without batteries or inverters, making it more affordable and accessible for people in poor rural areas. Ali noted, "We use solar panels that produce direct current to run the water desalination pumps.”
This innovative approach is particularly beneficial in regions lacking fossil fuels and a reliable electricity network. "There are many places in Africa that have no fossil fuels, no functioning power grid, or no power grid at all, but a lot of sun. The idea was that we would design, build, and install a system that could desalinate water using renewable energies”, Ali said. The company also holds a patent for connecting its pumps directly to solar cells.
The innovation also includes a unique business model where Boreal Light pre-finances the systems, covering the costs through water sales, "We have developed a business model that is unique in the world, where we pre-finance the systems ourselves and then refinance through water sales." He also added, “The profits from the water sales first cover the operational costs of the local company, including salaries and rent. If there are any remaining profits, we use them to repay our investment. When the repayment is completed, the profits from water sales go to Boreal Light. In the case of NGOs pre-financing the systems, the profits directly benefit the community.” The company focused on creating a business model that fosters self-sufficiency rather than dependency on financial aid.
The innovation at Boreal Light was inspired by the pressing realization that affordable and clean water is missing in a lot of poor rural areas. Ali Al-Hakim recalls a pivotal moment in his journey with Boreal Light, stating, "the best moment was when we took the first system into operation and provided the people access to clean water. That was in Somalia, in a small village." He also added, "when the plant was put into operation, and clean water was finally produced, people were simply queuing up. The fact that you were allowed to hand out clean water to the people was a very, very nice sense of achievement."
Besides initial setbacks, such as a damaged system, the team quickly adapted, "Within one day, we were able to find all the necessary spare parts in the village and get the system up and running again."
This motivation for Ali and his co-founder to innovate was solidified when they realized the daily struggles of locals in accessing clean water, "We found out that someone who earns 200 euros per month has to pay between 1 and 1.5 dollars for a 1.5-liter water bottle." Recognizing the disparity, Boreal Light aimed to create a system that would relieve such burdens by providing a sustainable solution.
The innovation of Boreal Light has had significant impacts on both society and the business itself, having supplied low-income communities with immediate access to clean drinking water. Hence, they were able to improve the quality of life in poor rural villages while proving that the business is scalable and adaptable in different regions. Ali states, "from 2018 to today, we have installed around 230 systems worldwide and are currently able to supply eight million people with clean drinking water." This widespread use proves the effectiveness of the system and the viability of the business model.
Moreover, Boreal Light has empowered local fish farming by using the brine byproduct from the desalination processes to create fish ponds and hydroponic food production, which presents additional business opportunities in local communities while also addressing the disposal question of the otherwise wasteful saltwater that can cause environmental damage, "We don't pump this saltwater directly into the oceans and damage the ecosystem, we have come up with concepts for using the brine byproduct." Ali also explained that “We have built large fish ponds where we can naturally breed salt fish. We can also use this salty water to flush toilets. It is just pure water without chemicals, and you can use it now without any problems. These are additional products that we build or create with our systems.”
The innovation has also worked to the great advantage of Boreal Light by opening new markets and opportunities. By addressing a basic but fundamental human need, the company was able to establish a strong market presence in Africa. Moreover, due to their rapid growth, they are expanding to Latin America this year, noting that, "We have focused on Latin America this year with plants in Colombia, Ecuador, Mexico, and Costa Rica."
In discussing the criteria for the success of their innovation, Ali highlighted the innovation’s capacity to produce water at a low cost. For example, "We can produce water very cheaply. We are talking about up to 50 cents for the production of 1000 liters of drinking water." He also added that “in larger plants, it can also be up to 9 cents for 1000 liters of water produced.”
Besides that, their distinctive and unique business model has also secured financial stability and growth, "We can show that our plants, because they work with renewable energies, pay for themselves within two years, compared to diesel or alcohol systems. After the loan is repaid, the profits from water sales generate revenue for us." This economic advantage has attracted interest from various sectors, including NGOs and industries like agriculture and hospitality.
With its innovation, Boreal Light has distinguished itself as a front-runner in sustainable water solutions, receiving public recognition and awards, and "In 2020, we were the first company ever to receive the SDG award from Dr. Gerd Müller, [former German Federal Minister for Economic Cooperation and Development.]"
There are many other aspects in which the innovation of Boreal Light benefits society and the environment. Primarily, with its innovation, the company offers a sustainable solution to water scarcity, improving public health and quality of life. "In the villages, water is sold for 10 cents per 20 liters, while in towns, it costs 1 USD for the same amount. In supermarkets, the price ranges between 3 to 5 USD for 20 liters," Ali said. This way, the company ensures social sustainability and social equity, as even low-end regions will have the capacity to benefit from the technology, making clean water accessible and affordable.
Elaborating on the broader social and economic benefits and its positive externalities on local communities, Ali explained, “With our innovation, we also create an additional source of income, providing more benefits to local communities. The profits from side businesses such as fish farming, vegetable cultivation, or algae sales are passed on to the local communities. This not only promotes social sustainability, but also the economic empowerment of the population.” He added, “In Kenya, we have a company called “WaterKiosk,” which is responsible for the installation and operation of the water plant. We employ a total of 300 people."
In addition, this innovation drastically reduces the high dependency on fossil fuels as an energy source, as the desalination systems manufactured by Boreal Light are powered by solar energy. In this way, the company significantly reduces carbon emissions while actively contributing to environmental protection. Ali said, "A plant with 1000 liters would save 2.57 tons of CO2 per year."
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The German company Boreal Light was founded in 2014 by Dr. Hamed Beheshti and Ali Al-Hakim with the mission to provide a self-sufficient, eco-friendly solution that addresses the problem of water scarcity and promotes local economic development. Boreal Light designs and manufactures solar-powered water desalination systems that supply clean drinking water to remote and underserved communities. Their business case is a great example of how innovative, sustainable solutions can bring about change and turn this world into a better place.