day 2: reverse osmosis desalination systems – design & costs 15:30-16:30 desalination costs...

Day 2: Reverse Osmosis Day 2: Reverse Osmosis Desalination Systems – Design & Desalination Systems – Design &

CostsCosts

15:30-16:3015:30-16:30

Desalination Desalination CostsCosts

International

Training Program

Water Globe Water Globe ConsultingConsulting

Nikolay Voutchkov, PE, BCEENikolay Voutchkov, PE, BCEE

1-4 February 2011Lordos Beach HotelLarnaca, Cyprus

Desalination Project Desalination Project CostsCosts

Key Components and FactorsKey Components and Factors

Construction CostsConstruction Costs

O&M CostsO&M Costs

Total Cost of Water ProductionTotal Cost of Water Production

Methods to Minimize CostsMethods to Minimize Costs

Desalination Cost Desalination Cost ComponentsComponents

Capital Costs:Capital Costs: Construction (Direct or “Hard”) Capital Costs;Construction (Direct or “Hard”) Capital Costs; Indirect (“Soft”) Capital Costs.Indirect (“Soft”) Capital Costs.

Operation & Maintenance Costs:Operation & Maintenance Costs: Variable;Variable; Fixed.Fixed.

Cost of Water:Cost of Water: Annualized Capital Costs;Annualized Capital Costs; O&M Costs.O&M Costs.

Seawater Desalination Seawater Desalination Plant – Construction Plant – Construction

CostsCosts

Intake – 5 to 20 % of Construction Costs

Discharge – 5 to 15 % of Construction Costs

RO System – 40 % to 60 % of

Construction CostsPretreatment – 15% to 20 %

of Construction costs

Indirect (Soft) Costs – Indirect (Soft) Costs – 15 to 50 % of Total Capital 15 to 50 % of Total Capital

CostsCosts Cost ItemCost Item % of Total Capital Costs% of Total Capital Costs

Project Engineering Project Engineering 5.0 – 12.5 %5.0 – 12.5 %

Project DevelopmentProject Development 2.0 – 10.0 %2.0 – 10.0 %

Project FinancingProject Financing 3.0 – 17.5 %3.0 – 17.5 %

ContingencyContingency 5.0 – 10.0 %5.0 – 10.0 %

TotalTotal 15 – 50 %15 – 50 %

Indirect Capital Cost Indirect Capital Cost ComparisonComparison

Conventional Water Treatment Plant: Conventional Water Treatment Plant: Indirect Costs - 15 to Indirect Costs - 15 to 25 %25 % of Capital Costs; of Capital Costs;

Seawater Desalination Plant: Seawater Desalination Plant: Indirect Costs - 15 to Indirect Costs - 15 to 50 %50 % of Capital Costs. of Capital Costs.

Where Does the Difference Comes from? Where Does the Difference Comes from? – – Cost of Project Cost of Project Related Risks (Intake and Source Water Quality; Permitting; Related Risks (Intake and Source Water Quality; Permitting; Technology; Reliability, etc.).Technology; Reliability, etc.).

This Difference Helps Understand Why Majority This Difference Helps Understand Why Majority of the Large SRWO Projects Worldwide are of the Large SRWO Projects Worldwide are Mainly Completed Under BOOT Delivery!Mainly Completed Under BOOT Delivery!

Intake Construction Intake Construction Costs – Key FactorsCosts – Key Factors

Very Dependent on Source Water QualityVery Dependent on Source Water Quality

Usually Between US$50 and 100/m³/dayUsually Between US$50 and 100/m³/day

Beach Well Intakes Usually Less CostlyBeach Well Intakes Usually Less Costly

Horizontal and Slant Wells Comparable to Horizontal and Slant Wells Comparable to Open IntakesOpen Intakes

Infiltration Galleries Often are More Infiltration Galleries Often are More Expensive than Open IntakesExpensive than Open Intakes

Open IntakesOpen IntakesConstruction CostsConstruction Costs

Well IntakesWell IntakesConstruction CostsConstruction Costs

Pretreatment Pretreatment Construction Costs Construction Costs

Very Dependent on Source Water Quality & Very Dependent on Source Water Quality & Type of Treatment TechnologiesType of Treatment Technologies


High Quality Well Water Sources Require Only High Quality Well Water Sources Require Only Cartridge Filtration (Low Cost Pretreatment)Cartridge Filtration (Low Cost Pretreatment)

Single-stage Granular Media Filtration Usually Single-stage Granular Media Filtration Usually is Less Costly than Membrane Pretreatmentis Less Costly than Membrane Pretreatment

Seawater Pretreatment Seawater Pretreatment Construction CostsConstruction Costs

SWRO PlantSWRO Plant

BWRO Plants

w/ Sallow & Deep Wells

BWRO Plants

w/ Sallow & Deep Wells

SWRO SystemSWRO SystemConstruction Costs Construction Costs

Dependent on Source Water Quality & Target Dependent on Source Water Quality & Target Product Water Quality Product Water Quality

Usually Between US$300 and 1,000/m³/dayUsually Between US$300 and 1,000/m³/day

Single-stage/Single Pass SWRO System is Single-stage/Single Pass SWRO System is Least CostlyLeast Costly

Additional Costs for Two-Pass/Two-Stage RO Additional Costs for Two-Pass/Two-Stage RO System May Vary Between 15 and 30 % of the System May Vary Between 15 and 30 % of the These of Single Pass/Single Stage SWRO These of Single Pass/Single Stage SWRO SystemSystem

Costs of Key RO System Costs of Key RO System ComponentsComponents

Component Construction Cost (US$/item)

8-inch SWRO Membrane Element US$450 –US$600/element

8-inch SWRO Pressure Vessel US$4,000 - US$6,000/vessel

RO Train Piping US$200,000 – US$600,000 /RO Train

RO Train Support Frame US$150,000-US$400,000/RO Train

RO Train Instrumentation & Controls

US$20,000 – US$90,000/RO Train

High Pressure Pumps US$150,000 – US$800,000/RO Train

Post-treatment Post-treatment Construction Costs Construction Costs

Dependent on Target Water Quality:Dependent on Target Water Quality: HardnessHardness AlkalinityAlkalinity pHpH Need for Addition of Corrosion InhibitorsNeed for Addition of Corrosion Inhibitors Type of DisinfectionType of Disinfection Need for Addition of Fluoride & Magnesium in Need for Addition of Fluoride & Magnesium in

the Drinking Waterthe Drinking Water


Post-treatment Post-treatment Construction CostsConstruction Costs

Concentrate Disposal Concentrate Disposal Construction CostsConstruction Costs

Disposal MethodDisposal Method Construction Cost Construction Cost (US$ Million/ML/d)(US$ Million/ML/d)

New Outfall w/DiffusersNew Outfall w/Diffusers 0.50 – 1.500.50 – 1.50

Power Plant OutfallPower Plant Outfall 0.05 – 0.150.05 – 0.15

Sanitary Sewer Sanitary Sewer 0.03 – 0.100.03 – 0.10

WWTP OutfallWWTP Outfall 0.08 – 0.450.08 – 0.45

Deep Well InjectionDeep Well Injection 0.65 – 1.650.65 – 1.65

Evaporation PondsEvaporation Ponds 0.75 – 2.500.75 – 2.50

Zero-Liquid Discharge Zero-Liquid Discharge 3.50 – 7.503.50 – 7.50

Key Capital Cost Components – Key Capital Cost Components – 40,000 m3/day Plant w/40,000 m3/day Plant w/

Low-Cost Intake & Outfall Low-Cost Intake & Outfall Cost Item Cost (US$) % of Total

Intake 2.76 MM 4.8 %

Pretreatment 4.64 MM 8.0 %

RO System Equipment 18.56 MM 32.0 %

Post Treatment 1.16 MM 2.0 %

Concentrate Disposal 1.45 MM 2.5 %

Buildings 1.74 MM 3.0 %

Waste and Solids Handling 0.87 MM 1.5 %

Electrical & Instrumentation 1.30 MM 2.2 %

Other Items 2.90 MM 5.0 %

Total Construction (Direct) Costs 35.38 MM 61 %

Engineering Services 5.80 MM 10.0%

Development, Financing & Contingency 16.82 MM 29 %

TOTAL $58.0 MM 100 %

Capital Costs and Plant SizeCapital Costs and Plant Size

Annual O&M Cost Annual O&M Cost BreakdownBreakdown

Cost ItemCost Item RangeRange (% of Total O&M Costs)(% of Total O&M Costs)

Variable O&M CostsVariable O&M Costs 50.5 – 85.0%50.5 – 85.0%

Fixed O&M CostsFixed O&M Costs 15.0 – 49.5%15.0 – 49.5%

TotalTotal 100 %100 %

Variable O&M CostsVariable O&M Costs

Cost ItemCost Item (% of Total O&M Costs)(% of Total O&M Costs)

PowerPower 35.0 – 58.0 %35.0 – 58.0 %

ChemicalsChemicals 5.5 – 9.0 %5.5 – 9.0 %

Membranes & Cartridges Membranes & Cartridges 6.5 – 11.0 %6.5 – 11.0 %

Waste Stream DisposalWaste Stream Disposal 3.5 – 7.0 %3.5 – 7.0 %

TotalTotal 50.5 – 85 %50.5 – 85 %

Fixed O&M CostsFixed O&M Costs

Cost ItemCost Item (% of Total O&M Costs)(% of Total O&M Costs)

LaborLabor 4.0 – 11.0 %4.0 – 11.0 %

MaintenanceMaintenance 3.0 – 13.0 %3.0 – 13.0 %

Environmental & Environmental & Performance Monitoring Performance Monitoring 1.0 – 5.0 %1.0 – 5.0 %

Indirect O&M CostsIndirect O&M Costs 7.0 – 20.5 %7.0 – 20.5 %

TotalTotal 15.0 – 49.5 %15.0 – 49.5 %

Indirect O&M Costs – 7 to Indirect O&M Costs – 7 to 20.5 % of Total Costs20.5 % of Total Costs

Administrative Costs;Administrative Costs;

Operations Insurance;Operations Insurance;

O&M Reserve Funds Required by Investor (Project O&M Reserve Funds Required by Investor (Project Risks);Risks);

Contingency;Contingency;

Staff Training and Professional DevelopmentStaff Training and Professional Development;;

Operator Fees.Operator Fees.

O&M Costs & Cost of Water O&M Costs & Cost of Water 40,000 m3/day Plant w/ Low-Cost Intake & 40,000 m3/day Plant w/ Low-Cost Intake &

OutfallOutfallCost Item Cost (US$/yr) % of Total

Energy 3.24 MM/yr 55.5 %

Chemicals 0.35 MM/yr 6.0 %

Replacement of RO Membranes & Cartridge Filters 0.62 MM/yr 10.6 %

Waste Stream Disposal 0.26 MM/yr 4.4 %

Total Variable Costs 4.47 MM/yr 76.5 %

Labor 0.33 MM/yr 5.7%

Maintenance 0.38 MM/yr 6.5 %

Environmental & Performance Monitoring 0.09 MM/yr 1.5 %

Other O&M Costs 0.57 MM/yr 9.8 %

Total Fixed Costs 1.37 MM/yr 23.5%

TOTAL ANNUAL O&M COSTS $5.84 MM/yr

100 %

Annual O&M Costs = US$5.84 MM/(40,000 m³/dayx365 days) = US$0.40/m³ Annual O&M Costs = US$5.84 MM/(40,000 m³/dayx365 days) = US$0.40/m³

Cost of Water Cost of Water 40,000 m3/day Plant w/ Low-Cost Intake & 40,000 m3/day Plant w/ Low-Cost Intake &

OutfallOutfall

Annual O&M Costs = US$5.84 MM/yr Annual O&M Costs = US$5.84 MM/yr ($0.40/m³($0.40/m³)) Capital Costs, Cap = US$58 MMCapital Costs, Cap = US$58 MM Capital Cost Recovery Factor, Capital Cost Recovery Factor,

CRF = [(1+i)ᵐ - 1] / [ix(1+i)ᵐ]CRF = [(1+i)ᵐ - 1] / [ix(1+i)ᵐ]Where: m – period of repayment of capital Where: m – period of repayment of capital expenditures; i – interest rate of capital expenditures; i – interest rate of capital

For example, for m = 20 years & i = 5% For example, for m = 20 years & i = 5% CRF = [(1+0.05)²º - 1] / [0.05 (1+0.05)²º] = 12.462CRF = [(1+0.05)²º - 1] / [0.05 (1+0.05)²º] = 12.462

Annualized Capital Costs = Cap/(CRF x Qp x 365 d)Annualized Capital Costs = Cap/(CRF x Qp x 365 d) = US$58 MM/(12.462 x 40,000m³/d x 365 d) = = US$58 MM/(12.462 x 40,000m³/d x 365 d) = $0.32/m³$0.32/m³

Cost of Water = $0.40 + $0.32 = $0.72/m³Cost of Water = $0.40 + $0.32 = $0.72/m³

Cost Comparison of 100 ML/d SWRO Plant with Conventional and Membrane Pretreatment

Cost Comparison of 100 ML/d SWRO Plant with Conventional and Membrane Pretreatment

Membrane Pretreatment

Conventional Pretreatment

Comparison of O&M costsand Costs of Water Production

–

100 ML/d SWRO Plant

Comparison of O&M costsand Costs of Water Production

–

100 ML/d SWRO Plant

Cost of Water ProductionCost of Water Production

Cost of Water of Recent Desalination Projects

Costs of Recent US SWRO Costs of Recent US SWRO ProjectsProjects

Project Status Capital Cost(US$)

Annual O&M Cost (US$/kgal)

Cost of Water(US$/kgal)

0.6 MGD Sand City, CA

In Operation since 2010

US$11.9 MM US$1.15/kgal US$2.91/kgal

25 MGD Tampa Bay, FL

In Operation since 2008

US$138 MM US$1.54/kgal US$3.48/kgal

50 MGDCarlsbad, CA

In Financing US$350 MM US$1.75/kgal US$4.00/kgal

2.5 MGDSanta Cruz, CA

In Planning US$59-64 MM US$3.94/kgal US$7.6-8.0/kgal

2.5 MGDBrownsville Demo Project, TX

In Planning US$22.5 MM US$2.80/kgal US$4.38/kgal

25 MGD-80 MGDCoquina Coast, FL

In Planning US$180 MM -US$560 MM

US$1.99/kgal US$4.47/kgal(US$5.35-US$6.10 w/ conveyance)

Key Factors Affecting Key Factors Affecting CostsCosts

Source Water QualitySource Water Quality - - TDS, Temperature, Solids, Silt and Organics Content.TDS, Temperature, Solids, Silt and Organics Content.

Product Water QualityProduct Water Quality – – TDS, Boron, Bromides, Disinfection Compatibility.TDS, Boron, Bromides, Disinfection Compatibility.

Concentrate Disposal Method;Concentrate Disposal Method;

Power Supply & Unit Power Costs;Power Supply & Unit Power Costs;

Project Risk Profile;Project Risk Profile;

Project Delivery Method & Financing;Project Delivery Method & Financing;

Other Factors:Other Factors: Intake and Discharge System Type;Intake and Discharge System Type; Pretreatment & RO System Design;Pretreatment & RO System Design; Plant Capacity Availability Target.Plant Capacity Availability Target.

Source Water Quality & Source Water Quality & CostsCosts

Water Source(TDS, ppt /Temperature, ºC)

ConstructionCosts

O&M Costs Cost of Water

Pacific/Atlantic Ocean (33.5 ppt /18 ºC)

1.00 1.00 1.00

Caribbean(36 ppt /26 ºC)

1.04-1.35 1.02-1.10 1.03-1.22

Mediterranean(38 ppt /24 ºC)

1.06-1.40 1.04-1.15 1.05-1.28

Gulf of Oman/Indian Ocean(40 ppt /30 ºC)

1.15-1.50 1.10-1.25 1.12-1.38

Red Sea(41 ppt /28 ºC)

1.18-1.55 1.12-1.28 1.15-1.42

Arabian Gulf(45 ppt /26 ºC)

1.25-1.60 1.15-1.33 1.20-1.48

Product Water Quality & Product Water Quality & CostsCosts

Target WQTarget WQ Constr.Constr.CostsCosts

O&M O&M CostsCosts

Cost of Cost of WaterWater

TDS/Cl = 500/250 mg/L;TDS/Cl = 500/250 mg/L;Boron = 1 mg/L.Boron = 1 mg/L.

1.01.0 1.01.0 1.01.0

TDS/Cl = 250/100 mg/L;TDS/Cl = 250/100 mg/L;Boron = 0.75 mg/L.Boron = 0.75 mg/L.

1.15-1.251.15-1.25 1.05-1.101.05-1.10 1.10-1.181.10-1.18


1.27-1.381.27-1.38 1.18-1.251.18-1.25 1.23-1.321.23-1.32


1.40-1.551.40-1.55 1.32-1.451.32-1.45 1.36-1.501.36-1.50

Key Project Risks and Key Project Risks and CostsCosts

Permitting RisksPermitting Risks – Very High for Large Plants; – Very High for Large Plants;

Source Water RisksSource Water Risks – High for Most Large Plants; – High for Most Large Plants;

Technology RisksTechnology Risks – High, Especially for New Technologies with Limited Track – High, Especially for New Technologies with Limited Track Record;Record;

Operational RisksOperational Risks – High – Experienced Operator Needed; – High – Experienced Operator Needed;

Desalinated Water Demand RisksDesalinated Water Demand Risks – High When Cost of Desalinated Water – High When Cost of Desalinated Water Significantly Higher than That of Existing Supplies;Significantly Higher than That of Existing Supplies;

Power Supply & Entitlement RisksPower Supply & Entitlement Risks – Moderate; – Moderate;

Regulatory RisksRegulatory Risks – Moderate; – Moderate;

Construction RisksConstruction Risks – High – Limited Experience; – High – Limited Experience;

Financial RisksFinancial Risks – High. – High.

Project Financing Project Financing AlternativesAlternatives

Government FinancingGovernment Financing:: Key Advantage - Lowest Cost for the Final User;Key Advantage - Lowest Cost for the Final User; Key Disadvantages – Scarce & Limited.Key Disadvantages – Scarce & Limited.

Bonds and Construction Loans:Bonds and Construction Loans: Key Advantage – Low Cost Funds (3 to 8 % rate);Key Advantage – Low Cost Funds (3 to 8 % rate); Key Disadvantages – Limited by the Credit Capacity of the Water Key Disadvantages – Limited by the Credit Capacity of the Water

Agency & Complex Approval Process.Agency & Complex Approval Process.

Private Project Finance:Private Project Finance: Key Advantage – Utility Responsible to Pay for Services & Borrowing Key Advantage – Utility Responsible to Pay for Services & Borrowing

Capacity Not Impacted;Capacity Not Impacted; Key Disadvantages – Usually More Expensive for Small and Low-Risk Key Disadvantages – Usually More Expensive for Small and Low-Risk

ProjectsProjects..

Project Delivery Project Delivery AlternativesAlternatives

Design-Bid-Build (DBB):Design-Bid-Build (DBB): Key Benefit - Utility Owns All Assets;Key Benefit - Utility Owns All Assets; Key Disadvantages – Utility Takes All Risks and Reduces Borrowing Key Disadvantages – Utility Takes All Risks and Reduces Borrowing

Capacity.Capacity.

Design-Build-Operate (DBO)/”Alliance”:Design-Build-Operate (DBO)/”Alliance”: Key Benefit – Utility Owns All Assets;Key Benefit – Utility Owns All Assets; Key Disadvantages – Utility Shares Some Construction & Operations Key Disadvantages – Utility Shares Some Construction & Operations

Risks and Reduces Borrowing CapacityRisks and Reduces Borrowing Capacity..

Build-Own-Operate-Transfer (BOOT):Build-Own-Operate-Transfer (BOOT): Key Benefit – Utility Transfers Most Risks to Private Sector and Only Key Benefit – Utility Transfers Most Risks to Private Sector and Only

Pays for Water it Receives;Pays for Water it Receives; Key Disadvantages – Utility Does Not Own the Assets.Key Disadvantages – Utility Does Not Own the Assets.

Risk Allocation Profiles for Risk Allocation Profiles for BOOT & Alliance (DBO) BOOT & Alliance (DBO)

Project DeliveryProject DeliveryType of Project RiskType of Project Risk BOOT BOOT Alliance/DBOAlliance/DBO

PermittingPermitting PrivatePrivate PublicPublic

Source WaterSource Water PrivatePrivate SharedShared

TechnologyTechnology PrivatePrivate SharedShared

OperationsOperations PrivatePrivate SharedShared

Water DemandWater Demand Public (Take or Public (Take or Pay – Private Pay – Private Equity at Risk)Equity at Risk)

PublicPublic

Power SupplyPower Supply PrivatePrivate PublicPublic

ConstructionConstruction PrivatePrivate SharedShared

FinancialFinancial PrivatePrivate PublicPublic

Worldwide the Lowest Cost of Desalinated Seawater

Has Been DeliveredUnder BOO/BOOT

Contracts!

Largest SWRO Largest SWRO Desalination Projects Desalination Projects

WorldwideWorldwideSWRO PlantSWRO Plant

Cost of WaterCost of Water(US$/m³)(US$/m³)

Power UsePower Use(kWh/m³)(kWh/m³)& TDS & TDS

Ashkelon, Israel – 330 ML/dAshkelon, Israel – 330 ML/d(Largest in The World) – BOOT(Largest in The World) – BOOT

0.530.53 3.83.8(40 ppt)(40 ppt)

Point Lisas, Trinidad – 130 ML/dPoint Lisas, Trinidad – 130 ML/d(Largest in The Americas) - BOOT(Largest in The Americas) - BOOT

0.720.72 4.84.8(38 ppt)(38 ppt)

Tuas, Singapore – 136 ML/dTuas, Singapore – 136 ML/d(Largest in Asia) - BOOT(Largest in Asia) - BOOT

0.480.48 4.34.3(33 ppt)(33 ppt)

Barcelona, Spain – 200 ML/dBarcelona, Spain – 200 ML/d(Largest in Europe) BD+O(Largest in Europe) BD+O

1.161.16 4.44.4(38 ppt)(38 ppt)

Fujariah, UAE – 170 ML/dFujariah, UAE – 170 ML/d(Largest in the Middle East) - BOOT(Largest in the Middle East) - BOOT

0.900.90 4.54.5(38.5 ppt)(38.5 ppt)

Sydney, Australia – 250 ML/dSydney, Australia – 250 ML/d(Largest in Australia) – DBO (Alliance)(Largest in Australia) – DBO (Alliance)

2.292.29 4.24.2(36 ppt)(36 ppt)

Year 2004/09 The Five Lowest Year 2004/09 The Five Lowest Cost SWRO Project Bids Cost SWRO Project Bids

WorldwideWorldwide

SWRO PlantSWRO Plant

Cost of WaterCost of Water

(US$/m³)(US$/m³)

Power UsePower Use

(kWh/m³)(kWh/m³)

& TDS & TDS

Sorek, Israel – 411 ML/dSorek, Israel – 411 ML/d

BOO (startup – 2014)BOO (startup – 2014)

0.530.53 3.73.7

(40 ppt)(40 ppt)

Mactaa, Algeria – 500 ML/dMactaa, Algeria – 500 ML/d

BOOT (startup – 2013)BOOT (startup – 2013)

0.560.56 3.73.7

(40 ppt)(40 ppt)

Hadera, Israel – 330 ML/dHadera, Israel – 330 ML/d

BOO/co-located (startup – 2009)BOO/co-located (startup – 2009)

0.600.60 3.73.7

(40 ppt)(40 ppt)

Cap Djinet, Algeria – 100 ML/dCap Djinet, Algeria – 100 ML/d

BOO (startup – 2010)BOO (startup – 2010)

0.720.72 4.04.0

(38 ppt)(38 ppt)

Carlsbad, USA – 189 ML/dCarlsbad, USA – 189 ML/d

BOO co-located (startup – 2012)BOO co-located (startup – 2012)

0.740.74 2.92.9

(33.5 ppt)(33.5 ppt)

What All Recent BOOT What All Recent BOOT Projects Have in Common?Projects Have in Common?

All Yielded the Lowest Costs and Power Use All Yielded the Lowest Costs and Power Use

of Desalinated Water in Their Respective Markets;of Desalinated Water in Their Respective Markets;

Plant Performance & Permitting Risks Reside with the Private Sector;Plant Performance & Permitting Risks Reside with the Private Sector;

Debt Repayment is Private Sector Obligation;Debt Repayment is Private Sector Obligation;

Private Sector Only Gets Paid for Delivering Product Desalinated Private Sector Only Gets Paid for Delivering Product Desalinated Water;Water;

Public Utility Can Buy Out (Transfer) Project Ownership Once Plant Public Utility Can Buy Out (Transfer) Project Ownership Once Plant Has Proven Its Long-term Performance. Has Proven Its Long-term Performance.

Ashkelon – Lowest Cost of Ashkelon – Lowest Cost of Water Worldwide – How Did Water Worldwide – How Did

They Do It?They Do It?

Ashkelon – How Did They Ashkelon – How Did They Do It?Do It?

Low Cost Conventional Pretreatment – Single Stage Dual Media Filters;Low Cost Conventional Pretreatment – Single Stage Dual Media Filters;

Large Size (20-micron) Cartridge Filters;Large Size (20-micron) Cartridge Filters;

Three-Center RO Design w/ Pressure Exchangers:Three-Center RO Design w/ Pressure Exchangers:

Low Cost Post-Treatment – Calcite Filters & Blending;Low Cost Post-Treatment – Calcite Filters & Blending;

Self-Power Generation – 80 MW Gas Generators and Purchase of Rights Self-Power Generation – 80 MW Gas Generators and Purchase of Rights to Gas Field Use;to Gas Field Use;

Discharge Collocation with Power Plant in Well Mixed Tidally Influenced Discharge Collocation with Power Plant in Well Mixed Tidally Influenced Zone – No Need for Outfall.Zone – No Need for Outfall.

Sydney and Huntington Sydney and Huntington Beach Desal Plant Beach Desal Plant Construction CostsConstruction Costs

CostsCosts Sydney Sydney 250 ML/d250 ML/d

Huntington Huntington Beach Beach

189 ML/d/(189 ML/d/(250 250 ML/dML/d))

US$US$ US$US$

Desalination PlantDesalination Plant 492492 310310(410)(410)

Intake and OutfallIntake and Outfall 230230 1616(21)(21)

DeliveryDelivery 557557 110110(146)(146)

Project CostsProject Costs 260260 6161(81)(81)

Total Capital CostsTotal Capital Costs 1,5391,539 497497(658)(658)

Note: Sydney Costs Source – WDR - July 2007

Perth & Sydney SWRO Perth & Sydney SWRO Plants Plants

Cost BreakdownsCost Breakdowns Perth SydneyCapacity (ML/d) 125 250Distance from intake (km) < 1 4.5 Distance to delivery (miles) 26.2 14.3 Total Capital Cost ($M) $325 $1,539 Total Capital Cost – Desal Plant ($M) $281 $982 Total Capital Cost - Delivery ($M) $44 $557 Annualized Capital Cost ($M/yr) $25 $120 Total Annual O&M Costs ($M/yr) $17 $46 Annual O&M Cost – Desal Plant ($M/yr)

$16 $42

Annual O&M Cost – Delivery ($M/yr) $1 $4 Cost of Water – Capital Component ($/m3)

$0.70 $1.65

Cost of Water – O&M Component ($/m3)

$0.44 $0.58

Cost of Water – Delivery Component ($/m3)

$0.02 $0.06

Total Water Cost, $/m3 $1.16 $2.29 adapted from Waterlines:NWC Australia

Be Careful When Comparing Be Careful When Comparing Costs!Costs!

Projects Differ By:Projects Differ By: Source Water Salinity and Temperature;Source Water Salinity and Temperature; Product Water Quality;Product Water Quality; Unit Cost of Construction, Labor and Permitting;Unit Cost of Construction, Labor and Permitting; Cost of Capital;Cost of Capital; Unit Cost of Power;Unit Cost of Power; Source of Equipment Supply;Source of Equipment Supply; Project Completion Schedule.Project Completion Schedule.

Projects Have to Be Normalized for These and Other Factors for Projects Have to Be Normalized for These and Other Factors for Accurate Comparison.Accurate Comparison.

Typical Cost and Energy RangesTypical Cost and Energy Ranges(Medium & Large SWRO Plants)(Medium & Large SWRO Plants)

Classification Cost ofWater

Production (US$/kgal)

SWRO System Energy Use (US$/kgal)

Low-End Bracket 2.0 - 3.0 9.5 – 10.5

Medium Range 3.5 – 5.0 11.0 - 12.0

High-End Bracket 6.5 - 11.5 12.5 – 14.0

Average 4.0 11.5

Common Features of Low-Common Features of Low-Cost Desalination ProjectsCost Desalination Projects

Low Cost HDPE Open Intakes or Beach Wells;Low Cost HDPE Open Intakes or Beach Wells;

Near-Shore/On-Shore Discharges w/o Diffuser Near-Shore/On-Shore Discharges w/o Diffuser Systems or Co-discharge w/ Power Plant of Systems or Co-discharge w/ Power Plant of WWTP Outfalls;WWTP Outfalls;

Point of Product Water Delivery within 5 Miles of Point of Product Water Delivery within 5 Miles of Desalination Plant Site;Desalination Plant Site;

RO System Design w/ Feed of Multiple Trains by RO System Design w/ Feed of Multiple Trains by Common High Pressure Pumps and Energy Common High Pressure Pumps and Energy Recovery Systems;Recovery Systems;

Turnkey (BOOT, BOO) Method of Project Delivery.Turnkey (BOOT, BOO) Method of Project Delivery.

Key Reasons for Cost Disparity Between

High-End & Low-end Cost Projects(US$2.0 – 3.0 vs. US$6.5-11.5/kgal)

Desalination Site Location (NIMBI vs. Science Driven) Costly Plants Have Overly Long Product Water Delivery Pipelines Costly Plants Have Overly Long Product Water Delivery Pipelines

• 120 MGD Melbourne Plant – Cost of Plant/Delivery + Power Supply Systems =

US$1.7 BB/1.1 BB (50 miles)• 66 MGD Sydney SWRO Plant – Cost of Plant/Delivery System

= US$560 MM/US$490 MM (10 miles of underground tunnel under Botany Bay).

Environmental Considerations Complex Intakes & Diffuser Systems

Phasing Strategy Intake and Discharge System Capacity; Pretreatment & RO System Design;

Labor Market Pressures Method of Project Delivery & Risk Allocation

Where Future Cost Savings Where Future Cost Savings Will Come From?Will Come From?

Main Areas Expected to Yield Cost Main Areas Expected to Yield Cost Savings in the Next 5 Years (20 % Cost Savings in the Next 5 Years (20 % Cost

Reduction Target)Reduction Target) Improvements in Membrane Element ProductivityImprovements in Membrane Element Productivity::

- - Polymetric Membranes (Incorporation of Nano-particles Into (Incorporation of Nano-particles Into Membrane Polymer Matrix) – Membrane Polymer Matrix) – CSIRO & UCLA;CSIRO & UCLA;

- Larger Membrane RO Elements (16” Diameter or Higher).- Larger Membrane RO Elements (16” Diameter or Higher). Increased Membrane Useful Life and Reduced FoulingIncreased Membrane Useful Life and Reduced Fouling::

- Smoother Membrane Surface – - Smoother Membrane Surface – Carbon Nanotube Membranes – CSRO & University of Texas (Austin).

- Increased Membrane Material Longevity;- Increased Membrane Material Longevity;

- Use of Systems for Continuous RO Membrane Cleaning;- Use of Systems for Continuous RO Membrane Cleaning;

- UF/MF Membrane Pretreatment.- UF/MF Membrane Pretreatment. Commercial Forward Osmosis Systems;Commercial Forward Osmosis Systems; Co-Location With Power PlantsCo-Location With Power Plants;; Regional Desalination and Concentrate DisposalRegional Desalination and Concentrate Disposal;; Larger RO Trains and EquipmentLarger RO Trains and Equipment;; Full Automation of All Treatment Processes.Full Automation of All Treatment Processes.

Nano-Structured SWRO Nano-Structured SWRO MembranesMembranes

Potential toReduce 60 to 80 %of Energy Costs &15 to 25 % of Cost

of Water

OASYSOASYS

Research Directions to Meet the Research Directions to Meet the Long-Term 80 % Cost Reduction Long-Term 80 % Cost Reduction

GoalGoal Improve Membrane Useful Life and Productivity;Improve Membrane Useful Life and Productivity;

Develop Corrosion Resistant Non-Metallic Materials to Replace High-Quality/High Cost Stainless Steel RO Piping;

Reduce Pretreatment Costs;Reduce Pretreatment Costs;

Develop New-Generation Energy Recovery Systems;Develop New-Generation Energy Recovery Systems;

Introduce Low-Cost Technologies for Beneficial Introduce Low-Cost Technologies for Beneficial Concentrate Use and Disposal;Concentrate Use and Disposal;

Explore New Technologies for Seawater Desalination Explore New Technologies for Seawater Desalination Different from RO and Thermal Evaporation.Different from RO and Thermal Evaporation.

Aquaporine-Based Aquaporine-Based Desalination Desalination

““The Best” of Seawater The Best” of Seawater DesalinationDesalination

Present Status & Future Present Status & Future ForecastsForecasts

Parameter Today Within 5 Years Within 20 Years

Cost of Water (US$/m³) US$0.6-0.8 US$0.5-0.6 US$0.1-0.2

Construction Cost(Million US$/ML)

1.2-2.4 1.0-2.0 0.5-1.0

Power Use(kWh/m³)

2.8-4.0 2.5-3.5 2.0-2.5

Membrane Productivity(gallons/day/membrane)

5,000-12,000 8,000-15,000 20,000-40,000

Membrane Useful Life(years)

5-7 7-10 10-15

Plant Recovery Ratio (%)

45-50 50-55 55-65

Concluding RemarksConcluding Remarks

The Ocean Will Become One of the Key Sources of The Ocean Will Become One of the Key Sources of Reliable and Draught-Proof Coastal Water Supply in the Reliable and Draught-Proof Coastal Water Supply in the Next 10 to 20 Years;Next 10 to 20 Years;

Large-scale Seawater Desalination is Economical Large-scale Seawater Desalination is Economical Today and Will Become Even More Cost-Competitive in Today and Will Become Even More Cost-Competitive in the Future;the Future;

The Future of Seawater Desalination Is Bright – 20% The Future of Seawater Desalination Is Bright – 20% Cost of Water Reduction in the Next 5 Years;Cost of Water Reduction in the Next 5 Years;

Long-term Investment In Research and Development Long-term Investment In Research and Development Has the Potential to Reduce the Cost of Desalinated Has the Potential to Reduce the Cost of Desalinated Water by 80 % In the Next 20 Years.Water by 80 % In the Next 20 Years.

Seawater Desalination Seawater Desalination CostsCosts

Questions?

day 2: reverse osmosis desalination systems – design & costs 15:30-16:30 desalination costs...

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