Circular economy business models for reclaimed water: Insights from the Baltic Sea Region

Besides technological advancements in wastewater treatment, business and market strategies are needed to facilitate the adaptation of water reuse. This study aims to conceptualize the value proposition and business models for water reuse in the Baltic Sea Region (BSR). This is achieved through systematic literature review and investigation of four case studies based on in-depth interviews with water sector professionals from Poland, Latvia, Lithuania, and Denmark. The results enabled the construction of Business Model Canvas for each case study. In BSR, reclaimed water can be used for agricultural, urban, and industrial purposes. However, direct sales of reclaimed wastewater are not feasible, even during dry seasons, despite wastewater carrying valuable nutrients. Interviewees emphasize that implementing water reuse can mitigate current and future water shortages, reduce pollution of water bodies, and lower the long-term costs of managing these challenges. However, it is challenging due to the low demand for alternative water resources. To facilitate the implementation of water reuse, the article proposes a set of managerial implications, including the development of hierarchical water-reuse system that prioritizes water uses in the region, supported by fit-for-purpose design. Moreover, the paper identifies barriers and drivers, thereby providing comprehensive picture of water reuse implementation in BSR. • Reclaimed wastewater reuse could mitigate seasonal water shortages and high fertilizer demands. • The high availability of water resources in the Baltic Sea Region hinders reclaimed wastewater reuse feasibility. • A hierarchical wastewater use system can improve water management across seasons of varying demand in BSR. • Fit for purpose and industrial symbiosis were determined as key strategies for water reuse implementation in BSR.