The west coast state will spend millions of dollars over the coming years on improving water quality and reducing waste.
The deal signed with the Danish Ministry for Food and the Environment will provide the opportunity for Danish business to be involved in that development, the ministry said in a press statement.
Minister Esben Lunde Larsen, who signed the agreement, said the Californian market was ideal for Danish water technology.
Although the minister did not specify how many Danish jobs he expected the deal to create, he stressed that it was of “utmost significance” for Denmark's exporting of water technology to the US.
“In 2016, our export [of water technology] to the USA was worth one billion [kroner, $161 million],” he told news agency Ritzau.
“Now, with this deal, we are securing access to 52 billion kroner [$8.4 billion] in the coming years – in California alone – it is clear there is great potential,” he said.
The figure cited by Larsen refers to a water improvement package approved by the state of California in 2014, writes Ritzau.
California is an important market for Denmark to gain access to, according to Lunde, with the state's water consumption double that of Denmark itself.
The deal signed by the ministry will help California to develop law and other initiatives in water technology.
Kim Nøhr Skibsted, director of communication with Grundfos, told Ritzau he was enthusiastic about the deal.
“This is a unique opportunity for Danish businesses to present solutions that can bring about sustainable solutions for water in a gigantic state like California, which suffers with water shortages,” Skibsted said.
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