Episode Transcript
[00:00:00] Speaker A: This is Prakash Govindhan, Co Founder and
[00:00:02] Speaker B: CEO of Gradient and you're listening to
[00:00:05] Speaker A: the Water Values Podcast. The Water Values Podcast is sponsored by the following market leading companies and organizations by Xylem Let's Solve Water by the American Waterworks Association Dedicated to the World's Most Important Resource by Black and Veatch Building a World of Difference by Advanced Drainage Systems Our Reason is water by 1898 and CO possibilities powered by experience by Woodard and Kern, High Quality consulting, Engineering, science and Operations Services and by Innovation and Stewardship for a Sustainable Tomorrow. This is session 291.
[00:00:52] Speaker B: Welcome to the Water Values Podcast. This is the podcast dedicated to water utilities, resources, treatment, reuse and all things water.
[00:00:59] Speaker A: Now here's your host, Dave McGimpsey.
Hello and welcome to another session of the Water Values Podcast. As my daughter Sarah said, my name is Dave McGimpsey and thank you for joining me and thank you for your support over the last 12 plus years.
We have a great show for you this month. We have our first CEO of a publicly traded company on Eric Romadka, CEO of Global Water Technologies. And Eric's going to give us a recap of his firsthand work filling sandbags to help save a levee from breaching during the recent floods in Indianapolis. Plus, he's going to discuss Global Water Technology's participation in recent and ongoing XPRIZE challenges. It's a great show and Eric does a phenomenal job.
Also, Reece Tisdale is back for another Bluefield On Tap segment addressing the recent cybersecurity breaches at U.S. water utilities.
Well, before we get into today's conversations, we always thank our phenomenal sponsors at the top of every show. And we have a great set of sponsors for you in 2026. We have Xylem, the American Waterworks Association, Black and Veatch, Advanced Drainage Systems 1898 Co, Woodard Curran and Entera. And that, my friends, is a terrific collection of impactful companies that have affirmatively decided to support water industry thought leadership and education. And I thank you all and I'd like for you to do me a favor.
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Well, before we head on to the interview with Eric, we've got a Bluefield on Tap segment with Bluefield Research's Reece Tisdale. So let's take it away, guys.
Reece, welcome back for another Bluefield on Tap. How are we this month?
[00:03:09] Speaker C: It is August. The dog days are almost over, the days are shorter, and I'm not gonna lie, I'm a little sad because I haven't had a vacation.
[00:03:19] Speaker A: Yeah, well, your Red Sox are still in the hunt.
Mariners are showing signs of life. So it's going to be an interesting, interesting September.
[00:03:28] Speaker C: It helps when the entire AL west is under.500.
[00:03:32] Speaker A: Yeah, it's pathetic. It is really pathetic.
So in any event, let's move on because the Mariners are still several games under.500. So I'm not. Even though they've shown some signs of life here, I'm still not sold on the postseason. But in any event, a lot of stuff going on. There's been some interesting developments, but what's risen to the top of Bluefield Stack this month?
[00:03:58] Speaker C: I mean, I think even when we were talking about topics for this month, I think the biggest thing, among others, is the recent cybersecurity hack across the 12 states in the US I thought it was really interesting.
Surprisingly, it's still in the news, even though it happened earlier in the month.
I think that I think it raises a number of different issues. Like one, what is the problem?
Two, how to address the problem and how do we deal with this going forward? What does it mean? Is it going to cost a lot of money or not?
[00:04:36] Speaker A: Yeah. So let's start with the first one. So what does it mean in terms of.
[00:04:43] Speaker C: Well, I think fundamentally it's just how exposed we are. I think as everybody knows when we've talked about it, there's so many systems in the US So if you're looking at, let's just talk about drinking water systems, you know, we're looking at 49,000 or so systems themselves, 43,000 utilities as a whole.
The hack was over, you know, it hit about 30 plus systems or utilities in the US across 12 states.
I think what's interesting is everybody looks or tends to look at cybersecurity as a small system problem.
I don't know if that's fair, but the reality of is this hack should. It's not that they were systems that served as few as 1700 people and served as many as 80,000 people.
The one in Plymouth, Minnesota, being the 80,000.
So, you know, there have been calls for, hey, we need to consolidate, we need to roll up all these systems.
I don't think that's the answer. I think there needs to be some consolidation for a number of different reasons of utilities and systems. I think the bigger issue is how to compel utilities and system operators to practice better hygiene. Cybersecurity hygiene, including passwords and updates and patches.
[00:06:10] Speaker A: Yeah.
I know in Indiana there's been legislation passed that. That offers some carrots for that and there are some sticks. But, like, one of the things is you have to have a cybersecurity plan in order to be eligible for state revolving funds.
[00:06:29] Speaker C: Yeah, you stole my thunder.
[00:06:30] Speaker A: Oh, I'm sorry. I understand.
[00:06:31] Speaker C: No, that's okay. Idaho has the same thing, I think, but I think that's what it takes. Right. Where New York, in its case. I know it's their own. You know, a lot of money at it. You know, I think was $45,000 for an assessment of each system and another 125,000 for implementation.
That adds up to a lot of money. And I don't know if money is really the issue. I think. I think the Indiana and Idaho example are really good ones where if you're going to receive state revolving funds, let's bake it into the process. Right. You get dollars, but you're going to do these upgrades of whatever it might be in any case. I know in the case of Idaho, it's brought 85% of systems into compliance, which is a step forward.
[00:07:22] Speaker A: Yeah.
What about the vendors of the hardware and software? I mean, is it possible for them to.
And I realize there's a cost here involved, but, like, you can't put the piece of equipment in service unless you physically change the password.
[00:07:42] Speaker C: I mean, one would think that was the case. I mean, I think 1. The fragmentation not only of the systems and just the resources to police that for the utilities themselves, but also the vendors. Right. And you're not always just dealing with the vendors themselves and not pointing fingers here, but you've got equipment vendors who are selling through distributors, and then the distributors are doing it. And then the question is, does the installer. And we've all had people come work at our house. You get, you know, all different levels of sophistication, for lack of a better way to put it.
Some care, some don't, and some just want to get the job done. So I think that's the risk I mean, at the end of the day, it does fall on the utility operator. But that is one of the things that has happened over the past decade plus. Right. Is the equipment is becoming. Is increasingly sophisticated. It's connected to the Internet. They're connecting it automatically and sometimes just plugging in the device, whether it be a pump valve control system to the Internet or that in and of itself exposes it and I don't know. That wasn't a problem, obviously, 25 years ago. Yeah, it is now.
Yeah.
[00:08:57] Speaker A: So what else have you seen out there in terms of programs to get. To get utilities to adopt better cyber hygiene?
[00:09:05] Speaker C: Yeah, it's really, you know, it's. There are state funds, like I said, New York Secure program, the Idaho, Indiana one. You know, Texas is another one that's prohibiting water and wastewater utilities from connecting SCADA systems to the Internet.
[00:09:21] Speaker B: I.
[00:09:22] Speaker C: It's a mixed bag. Right. And I think that's part of the problem.
I don't necessarily think the. Well, should the federal government be the one to come in and implement guidelines. I know no one likes that for a number of different reasons at the same time. If this is an Iranian hack, then it does become a federal government problem in my mind. So there is. I don't even know if I want to call it a delicate balance. Someone's got to step up and own it. The upside of what we've learned, though, is most of these hacks and we've looked at, I think I've even posted on LinkedIn just out of curiosity, a couple weeks ago, all the hacks of water Systems in the US since 2015. And there are a number of them, but the majority of them are really just password issue, password update issues. So that's pretty cheap. So I don't think everybody needs to be panicking about how much this is going to cost. It's really more about process.
[00:10:22] Speaker A: Yeah, I agree with you. Well, Reece, always great speaking with you. Thanks so much for the information and the perspective for this month's cybersecurity. So thanks again and we'll talk again next month.
[00:10:35] Speaker C: All right. It'll be fall, so look forward to it. I'll be a year old or two, don't forget.
[00:10:39] Speaker A: All right, well, happy pre birthday. Happy birthday in advance. All right, see you, Rhys. Bye.
[00:10:44] Speaker C: See you. Take care.
[00:10:46] Speaker A: As always, great information from Bluefield Research and Rhys Tisdale. Now it's time for the main event, our interview with Global Water Technology CEO Eric Romadka. So let's get that water flowing.
Well, Eric, welcome to the Water Values Podcast. Great to have you on. How are you?
[00:11:02] Speaker B: Yeah, thanks, David. It's been a while since I guess we first met and have been talking and appreciate the invitation to finally make it on the podcast. It's hard to believe it's 2026.
[00:11:14] Speaker A: Yeah. Amen. And before we dive into the episode and your background and all that stuff, over the past weekend, the Indianapolis area got hammered with torrential rain, and you played a. You kind of put on your Superman cape and helped out. Can you kind of, kind of talk about the situation on the ground in Indianapolis?
[00:11:39] Speaker B: Sure. I. Yeah, I don't know that I'll take credit for.
For anything heroic, but it was quite the wild weekend. So we're recording this on a. On a Monday.
And last week I was telling you that we were submitting our new X Prize Future Vision movie trailer on Saturday.
And ironically, it has a line in there that says water almost ended everything.
And I certainly didn't expect that that would be the case Saturday night.
But we had, over the past week, a whole series of storms that moved through Indiana. And for those of your listeners who don't know the state, Indianapolis is the capital and right in the middle of the state. And so we get these big storms that move across the flat northern part of Indiana and had a whole series of those which then not surprisingly, fed into the White river, which comes right through Indianapolis.
And it actually had a series of flood warnings. And on Saturday night, there's a little community here in Indianapolis called Rocky Ripple that's near Butler University. It's about 6, 700 people, and it's outside the flood control gates that we have, which they put up for the first time.
Indianapolis flooded back in 1913, so it's been 113 years since we had the amount of rain that we had over the past weekend. And Saturday night, they put out a call for help, and they said, we need people to bring their shovels and come to Rocky Ripple and fill up sandbags because the levee's about to be breached.
And so it was pretty heartening. A little scary, but kind of amazing to see hundreds of people just from all the surrounding neighborhoods coming in. And they had a sand volleyball court where people gathered and we filled, you know, a couple thousand sandbags and plugged the levee, and fortunately it held and the town was saved, I guess. You know, it's kind of scary when you look at the volume of water that comes through. And like you said, there was a lot of damage across the city, other neighborhoods that flooded, bridges that were just totally wiped out and unfortunately a number of people who died across the state and various incidents. So.
[00:14:19] Speaker A: Yeah, well, good on you. For, for helping out.
[00:14:24] Speaker B: And
[00:14:26] Speaker A: not everyone does that kind of stuff, so really appreciate that. And it's, it's just emblematic of the water sector. Right. People in the water sector, I have found, are always willing to go the extra mile to help us.
[00:14:37] Speaker B: It is, yeah. And certainly I think it speaks to, you know, the, the common understanding that water is important, you know, that that kind of cuts across all kinds of demographics.
And that was the case there. It was younger people, older people, you know, people who might disagree on other issues but said, hey, you know, these people need help and let's go help. And, and also kind of an interesting perspective on water too. You know, like within the water industry, we kind of like to classify it as drinking water, wastewater, stormwater, agricultural water. And you know, when it moves across the state like it did, you know, the water doesn't really care what we call it and doesn't always care where we would like it to go. And it's pretty powerful when you see what it can do in large quantities, moving quickly.
[00:15:31] Speaker A: Yeah, absolutely. Absolutely. All right, well, Eric, with that and again, thank you for your, for the work you did, could you give us a little background on yourself besides your charitable endeavors here and tell us how you came to the waters?
[00:15:48] Speaker B: Yeah, it's hard to believe it's been all these years. Right. I think it was just about 20 years ago that I had bought some stock. So we're actually a tiny public company, Global Water Technologies.
The stock symbols G WTR for Global Water.
And I guess I should make a disclaimer also at the beginning, since we are public, anything that we say may or may not come about to pass as we envision it.
We have a formal legal forward looking statement. But that's certainly true in the water space. And it was about 20 years ago when I was out in Denver heading to a music festival to celebrate my 40th birthday, that I stopped and met the former CEO of the company and tried to get an idea of what was going on.
I had purchased some shares way back, initially thinking water's the future after Global Water won some awards for entrepreneur of the Year award, and I was a magazine editor here in Indiana covering that program.
And so I bought a few shares and the company at the time was a cooling tower construction company and was building cooling towers for a company called Enron, which is why they were named Global Water Technologies. They were doing international projects and it grew quickly.
But unfortunately Ended up going through a bankruptcy after Enron did and actually came out of the bankruptcy with the share structure intact.
Tried to do some produced water work out west with the oil and gas industry and has really been through a whole series of experiences within the water sector. So I thought it was going to be a short term assignment. One of the lessons I've learned is nothing in the water space really is as quick as people would like it to be. And so here we are.
[00:17:54] Speaker A: Well, that's quite a unique story on coming to the water sector. I mean, did you, you were, you were covering Global Water Technologies as part of your duties as a magazine editor. Was that a utility public?
[00:18:09] Speaker B: Well, no, it was, yeah. So I was just covering the Entrepreneur of the Year awards, which was Ernst and Young back in the day, did those.
And so that's how I initially just saw Global Water Technologies had won this award out in the Rocky Mountain region. So I wasn't covering them specifically, I was covering the Indiana business community.
But I thought water's the future. And so here we are. It still is, right?
[00:18:34] Speaker A: Yeah.
Amen. Amen. So you mentioned the X Prize in this video that you prepared. So can you tell us a little bit first off, give the listener a feel of what XPRIZE is?
[00:18:47] Speaker B: Sure. It's a pretty exciting competition. And so that's kind of the take that I think a lot of us in the water sector share is that water is a big important issue.
And there's a number of companies and technologies and groups and organizations that attempt to solve water, improve water.
And XPRIZE as an organization was founded with a similar vision. And they use competitions to encourage innovation and drive big solutions to difficult problems in a lot of different sectors.
And so they launched XPRIZE Water Scarcity as a five year competition about two years ago at WefTech in New Orleans back in 2024.
And so we formed a little team, the Challenge. And it's kind of a complicated competition. It had a Track A and a Track B and there'll be a Track C as well.
But primarily it was to create drinking water from seawater more affordably and sustainably and in a way that addresses issues like brine management and a number of other goals. And so we formed a small team for that. I think there were about 600 teams that, that initially began the competition. We made it through the qualification round last year.
They selected then 20 of the track A teams to move forward.
We're not in the track a top 20, but we're working with another team, a couple other teams actually to kind of support that. But then just recently there was a separate XPRIZE competition called XPRIZE Future Vision or Future Vision xprize. And it was totally separate from X Prize Water Scarcity. The idea was to create a three minute movie trailer for a movie that could show an optimistic vision of the future instead of all the dystopian views that we have of what the future may look like.
And so we thought it would be interesting to take some of the experience from XPRIZE Water Scarcity and create a short movie trailer that would be looking at a positive future for water. And so we did that.
It's called A Wish for Water and it's not based on any actual characters, but drawn from a lot of people who are doing work in the space. And kind of the story of a woman who's a scientist and she's traveling on Lake Titicaca in Peru, which is one of the highest freshwater lakes on planet Earth, and looking back at a childhood wish that she had made that then she maybe was able to save the world's water and lead to a positive outcome, but within that, at the same time pointing out that there is no magic bullet for solving all the world's water problems, but rather that there's a number of technologies and collaboration that's necessary to do that. So, yeah, that's the Future Vision XPRIZE that we just completed. And I think at the time that this airs will be just being announced in September.
[00:22:21] Speaker A: Yeah, yeah. The video is really cool. You did a great job on it.
[00:22:25] Speaker B: Yeah, thanks. It was exciting. We did it through a combination of AI tools and also actual local musicians that participated. And we had an artist who actually makes original art from water samples.
One of the only people that I know of in the world who does something like that. And so it was a creative process that kind of built on some of the technical things that we do in the water space.
[00:22:53] Speaker A: Yeah. And can you dive in again? And what caused you to go after the second track of the X Prize? Why did Global Water.
[00:23:05] Speaker B: Yeah, so part of the purpose of doing the initial XPRIZE competition was to first build kind of on the history of, of some of the non chemical water treatment that our company had worked with.
So we were using capacitive deionization, which is a process that pulls constituents out of the water using electricity rather than pushing it through a filter like a standard RO process, combined with ultraviolet disinfection using LED chips instead of mercury tube to create the uv and a couple other new technologies that improved the flow of water and some water treatment so the idea was to combine those into a system.
And so when this second XPRIZE came about, it was a good way to build on that and the objective that we had as a company.
And obviously these are huge challenges and big competitions with a wide range of types of teams. Everything from, you know, small one person organizations or professors, students, all the way up to large corporations that have very large budgets.
And so our idea was to use the competition to attract some attention for the company to do a capital raise and then to acquire some of those technologies in an M and A process. And so that's what we've been doing for, for the past couple years and are actively still doing.
And so when we saw this opportunity for future vision xprize, it fit nicely into that. And the timeline for that one is extremely short. So they're going to announce the winners on September 25th in Los Angeles, which is right the weekend Friday before WeFtech. That's back in New Orleans.
[00:25:07] Speaker A: That's great. So could you give us a little snippet on the lessons that you've kind of learned along your journey through not just the XPRIZE process, but global waters technology's journey?
[00:25:22] Speaker B: Yeah, for sure.
I think one of those, maybe I learned it the hard way, but you measure progress in years, I guess in this space and some people might even say in decades.
I think. Was it Paul's thesis on the time it takes for a water technology to be successfully commercialized is around 14 years and the number of technologies that successfully are implemented even after that, it's a challenging space. And so yeah, measured progress.
Also understanding that in the water space there's not, like I said, no magic bullet that does everything. Water is very nuanced.
But also the solutions that you have have to work not only at the technical level, but also from the business perspective within your company.
You know, there's the CapEx, CapEx and OpEx. Make sense for your, for your customer, does it, you know, can you manufacture the and deliver the products or services at a profitable cost for your, your entity? But then also within the industry, can you get the timing right that it actually gets adopted and scales so it makes sense over time and all three of those have to kind of line up for water technology companies to be successful.
And it's not easy. It's definitely not easy.
[00:27:02] Speaker A: Absolutely. Can you speak a little on the water industry is very fragmented and how can you achieve scale in such a fragmented industry?
[00:27:13] Speaker B: Yeah, it's a good question. I mean we talk about that here in Indiana. As you know, we have what? 92 counties, over 500 independent water systems.
You know, pricing, and maybe you know this better, but it used to be a factor of 10 that pricing would vary, you know, across the state depending on how the different systems set their rates.
So just because you have something that works in one system doesn't mean it's going to be adopted by all the others.
Just because you have something that fits nicely into. And again, the water space, you know, I assume most of your listeners are familiar with it, but for those who aren't, there's, you know, water touches pretty much every industry.
So there's a big difference between water utilities as customers, industrial water treatment, agricultural water.
So I think it's, there's a lot of opportunity, I think to pick kind of the space that you're in and find a place that you can add value and then find some like minded customers and referrals, you know, that can see it successfully being demonstrated and brought to market with one group of customers and then find a like minded group that you can expand into is maybe the answer. But that's easier said than done.
[00:28:44] Speaker A: You talked about how difficult the industry is.
How are you going to approach or overcome the difficulty? And again, I will refer everyone to the disclaimer you gave earlier.
But what's in store for global water technologies in 2026 and beyond?
[00:29:02] Speaker B: Sure.
And I think that's one of the reasons this future vision XPRIZE is exciting. Right. It's supposed to be a gathering of optimists and I think you have to be optimistic to, to stay in the space. And so I am excited. I think we've got a good opportunity lined up. We have, we're in active discussions with a couple companies that I think would be a good combination with the public entity that we have.
There's some talk about a large IPO in the water space in the next 12 to 18 months.
I think that could generate a lot of attention from outside the traditional water sector.
There's a lot of interest in water in water technologies among the general public. Right. As people become more and more aware of the importance of water, a lot of it tends to be around data center discussions and AI discussions. Today I'm a little leery of that because we tend to do that. You know, I've seen it over the past 10 years. Whether it's PFAS or lead service lines or aging infrastructure, we tend to think that there'll be a solution or a problem that comes in that generates a large amount of public interest in the sector.
But those are all Valid problems. And I think there is a growing awareness that we can't push off water problems. We talked a little bit about the infrastructure and issues that we saw here in Indianapolis over the past week.
You know, water tends to be very local and more and more people are saying, you know, water problems in their location.
So, yeah, our immediate plans, I tend to think in quarters. And so for Q3, we're going to be participating in September in Climate Week in New York. New York City's Climate Week is an event we went last year with XPRIZE there.
And I think the Economist has an event that I'm attending.
Right before the XPRIZE moonshots is the event that they're holding for Future Vision X Prize, which comes up on September 25th.
And then WEFTEC in New Orleans is what, 20, 25,000 water professionals that gather every year.
And we're looking to hopefully have some positive announcements on the business side by that time as well.
[00:31:39] Speaker A: All right, Eric, well, you've got some great plans coming up.
Look forward to seeing what gwtr, that's the stock ticker symbol, has in store for us. So always great speaking with you, Eric.
Do you have a leave behind message that you'd like to share with the listener?
[00:31:58] Speaker B: Yeah, we should have. By the time this drops in the beginning of September, there's going to be actually a viewer's choice competition on this new X Prize movie trailer. And so we'll have a link to that on our website is also gwtr.com and I'll make sure that you have that for your landing page for the podcast as well. So I'd encourage people to, to take a couple minutes, it's short, to watch it and to kind of follow that positive message. Even though there are a lot of challenges in the space to be optimistic, to make a wish for water that leads to positive changes in the future and hopefully we can be a part of that.
[00:32:44] Speaker A: Yeah, I would strongly encourage all you out there in podcast listener land to check out this video because it's really well done. And so Eric, you and your team have done a great, great job on it.
For those who want to find out more about you and your work, where can they go to get that information? Eric?
[00:33:02] Speaker B: Yes, Our website is gwtr.com GWTR is for global Water and that has all the company's history as well as our current information and is probably the best place to find that. I'm also on LinkedIn and, and YouTube. We have a YouTube page which is where the video will be but it'll be linked from our website.
[00:33:27] Speaker A: Awesome. Eric, you've been phenomenal. I always enjoy speaking with you whenever we get together and just thank you so much for spending part of your day with me and really appreciate it and we'll talk to you again very, very soon.
[00:33:42] Speaker B: Yeah, thanks for the opportunity and I look forward to it. Thank you.
[00:33:45] Speaker A: You bet. Thanks Eric. Bye now.
Phenomenal work, Eric, and best of luck in the XPRIZE Future Vision Challenge. Your video is sure to do well.
Also, I thank you and all the volunteers who went out and filled sandbags the other week to bolster the White River Levee and save Rocky Ripple from flooding. That sort of volunteerism and community first ethic is characteristic of the water industry. So great job, Eric.
Well, I'd love to know what you thought about the interview. Please check out the Show Notes page and it for information and links on this episode, just Google the Water Values Podcast. Click the first link that comes up. That's our landing page on the Bluefield Research website. As you know, Bluefield Research and the Water Values LLC are not affiliates. We just have a joint marketing arrangement. And as part of that, Bluefield Research gives the Water Values Podcast a home on its website.
Well, you can email me at david.mcginseyntons.com and you can sign up for the newsletter at that aforementioned landing page as well. Thank you again for tuning in and I hope you make it a great day. Plus, I want to give a huge thank you again to our sponsors. And again, sponsors of the Water Values Podcast are Xylem, the American Waterworks Association, Black and Veatch, Advanced Drainage Systems 1898 Co, Woodard and Curran and Interra. And this show would not be possible without those great companies and industry leaders.
And again, thank you for listening and for subscribing to the Water Values Podcast. Your support is truly appreciated. In closing, please remember to keep the core message of the Water Values Podcast in mind as you go about your daily business. Water is our most valuable resource, so please join me by going out into the world and acting like it.
[00:35:54] Speaker B: You've been listening to the Water Values Podcast. Thank you for spending some of your day with my dad and me.
[00:35:59] Speaker A: Well, thank you for tuning in to the disclaimer. I'm a lawyer licensed in Indiana and Colorado, and nothing in this podcast should be taken as providing legal advice or as establishing an attorney client relationship with you or with anyone else.
Additionally, nothing in this podcast should be considered a solicitation for professional employment. I'm just a lawyer that finds water issues interesting. And that believes greater public education is needed about water issues. And that includes enhancing my own education about water issues, because no one knows everything about water.
