Dec. 2, 2024

This paid piece is sponsored by Sioux Metro Growth Alliance.

It’s possible to support economic growth by investing in sustainable infrastructure – with some creative approaches to financing.

That’s the premise for Colorado-based R3 Sustainability, a firm that empowers businesses and communities to rethink how they use water through innovative solutions.

Co-founder and CEO Kyle Granowski will be one of several presenters at the upcoming annual Growth Summit from Sioux Metro Growth Alliance. It will focus on the foundational role that water plays in communities’ ability to expand.

The event is open to the public and will be from 8 a.m. to 4:30 p.m. Dec. 10 at the Sanford Event Barn, 2510 E. 54th St. N.

“We’re excited to finalize our lineup for the day and include some very forward-looking thoughts and approaches from Kyle Granowski and R3,” said Tyler Tordsen, CEO of Sioux Metro Growth Alliance.

“They’re bringing unique innovations to the industry that I think communities and businesses will be intrigued to learn.”

We sat down with Granowski for a preview of what attendees can expect to learn.

What exactly does R3 encompass?

We develop and finance sustainable infrastructure, both for public and private sector clients. That includes any type of water and wastewater infrastructure in addition to various types of energy, biofuel and waste reduction facilities.

What will you be focusing on at the Growth Summit?

I’ll start by articulating where we see water investment going in the future. We work with agencies across the U.S., and water is a concern everywhere, not just in the Sioux Falls metro. So we’ll talk about how water projects are being developed and invested in to meet this growing need. 

How is R3 playing a role in helping meet this need?

We started R3 because we see a movement coming in water with so many utilities at the end of their expected life. The investment required to upgrade them in many cases is simply not there. And yet there’s a lot of technology available to improve processes and move water. We believe we’re at the forefront of connecting investors with clients looking to expand and improve water infrastructure. Where we see opportunity is in assisting industry that wants to grow or communities that need certain infrastructure capacity to support new industry. That’s where we are seeing the most activity and providing the best benefit for our clients.

Are there some common questions you typically receive?

We always get asked about our cost of capital. I would tell you that varies depending on the project and our counterparty. We’ve worked with projects ranging from $10 million to $350 million, and while our capital isn’t as inexpensive as municipal bonds, it’s a lot cheaper than what most industrial users have for their internal underwriting, so we tend to be right in the middle. We do have to structure the deal to reflect the risk profile, and we look for longer-duration projects if possible.

Are there some early success stories your firm has experienced?

We’ve worked on a $150 million water reuse system with a large chemical company in Virginia that was putting a lot of strain on the local wastewater treatment plant and therefore needed to turn towards on-site industrial reuse to meet their cooling tower demand. We’re also working with an industrial company outside Detroit that’s been there 60 years and is looking to grow, but the wastewater treatment plant can’t meet their growth needs, so we’re developing on-site industrial reuse – a $40 million project that supports their growth and reduces stress on the local wastewater treatment plant. Finally, we are seeing an uptick in zero liquid discharge, or ZLD, desires from industrial users who are being forced to reevaluate how their facility discharges water altogether. 

Are you able to work with communities of all sizes?

We see that opportunity and actually have had some preliminary conversations in Sioux Falls. We also partner with your existing engineer firm or can connect you with firms we work with. We’re a nimble developer, so we get projects up and moving on expedited timelines and bring the capital required to progress from initial development through operations.

There’s still time to register for the Growth Summit, up to the day of the event. Click here to learn more and register.

Want a preview of what to expect at the Growth Summit? Click below for a recap from last year’s event:

Growth Summit to focus on H20: What You Should Know