AlChE Conference 2015

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1 AlChE Conference 2015 International Society for Water Solutions Mark Lambert/ November

2 If we could produce fresh water from salt water at a low cost, that would indeed be a great service to humanity, and would dwarf any other scientific accomplishment President John F. Kennedy,

3 Why Desalination Should be a part of Coastal Industrial Supply Industrial facilities along the Gulf Coast require an uninterruptable supply of water for operations Desalination offers an uninterruptable, sustainable, and expandable water supply for industry and municipal customers for the Texas Gulf Coast The technologies, practices, and policies utilized to realize this outcome can be replicated elsewhere 3

4 Overall Agenda IDE Overview Carlsbad Plant Overview Case Studies Why Desalination?

5 IDE Technologies Industrial Water Treatment Seawater Desalination Wastewater Reuse 5

6 IDE Technologies Ltd Overview Winner of Desalination Company of the Year GWI Award Established Headquarters - Kadima, Israel Employees (1) Subsidiaries - China, India, USA, Europe Installed units in over 40 countries Ownership: (50%) (50%) (1) Including subsidiaries 6

7 Significant Global Presence Israel Spain Cyprus Italy Total Capacity: Total Capacity Total Capacity Total Capacity 1,207,000 m 3 /day 78,000 m 3 /day 125,000 m 3 /day 27,000 m 3 /day USA Total Capacity 2,000 m 3 /day Caribbean Total Capacity 106,000 m 3 /day Global Deployment. 4 Decades. 40 Countries. 400 Plants. 800 million gallons/day China Total Capacity 200,000 m 3 /day India Total Capacity 198,000 m 3 /day Latin America Total Capacity 36,000 m 3 /day Australia Total Capacity 140,000 m 3 /day Central Asia Total Capacity 19,000 m 3 /day IDE Presence

8 IDE s Value Proposition EPC Global Market Leader Reliance, India 60 MGD MED desalination facility Reduced Costs: Unparalleled optimization of Capex vs. Opex expenses Expertise: Successful implementation of world s largest, most complex mega-size thermal & SWRO facilities Successful global BOT projects Creative Financing Sustainable Solutions Reduced energy consumption Renewable energy Low chemical footprint Ashkelon, Israel 85 MGD Third largest operating desalination facility worldwide

9 A Full Range of Water Project Types EPC / EPS / Turnkey Water Sales Operation & Maintenance Services Municipalities Energy Mines Oil &Gas 9

10 Culture of Continual Innovation Proven innovations: Pressure Center Design Boron Removal System Chemical-Free Desalination Direct Osmosis Cleaning (DOC) 16 Membranes in a Vertical Array Increased efficiency and reliability Reduced CAPEX and OPEX costs Minimize environmental impact 10

11 IDE Your Water Partners Carlsbad Desalination Plant 11

12 Carlsbad, California, USA An award-winning, milestone plant for the desalination industry Overview Capacity: 54 MGD (204,412 m 3 /day) Technology: SWRO Project Type: EPS and O&M 30 years Footprint: 6 acres (24,000 m²) Off-Taker: San Diego County Water Authority (SDCWA) Commission Date: October 2015 (in commissioning) 12

13 Project Benefits Water Supply Benefits 56,000 acre-feet per year of new water from the Pacific Ocean Locally-controlled, high-quality, drought-proof supply Project will serve 8% of regional demand in 2016 Key element of SDCWA water supply diversification strategy Environmental Benefits Restoration and enhancement of marine habitat Net carbon neutral Reduces demand on sensitive water bodies Economic Benefits Private investment in regional infrastructure will support 2,400 skilled jobs during the project construction period An estimated $560 million in local spending during construction Up to $5.3 million per year in incremental property and business tax revenues

14 SWRO Process Flow Diagram INTAKE STATION SEA DUAL MEDIA FILTERS BACKWASH WATER BOOSTER PUMPS CARTRIDGE MICRONIC FILTERS 1:4 MIX HP PUMPS / ERS REVERSE OSMOSIS PROCESS RE-HARDENING TREATMENT WATER DELIVERY POINT BRINE WATER BACKWASH WATER SLUDGE TREATMENT Bid Water Price*: $1,849 - $2,064 per acre-foot $ /1000 gallons ($ /m 3 ) 14

15 Agua Hedionda Lagoon Aerial View Mouth of Lagoon Outfall Encina Power Station 15

16 Water Supply Benefits 56,000 acre-feet per year of new water Locally-controlled, drought-proof supply 8% of regional demand in 2016 Key element of SDCWA water supply diversification strategy Reduces demand on sensitive water bodies Delivery System - Pipeline Construction March 2013 December 2014

17 IDE Your Water Partners Case Studies 17

18 IDE s Horizontal Evaporator: MED-50 MGD Capacity SDIC, Tianjin, China POWER - CHINA S LARGEST DESALINATION PLANT SDIC Electric Generation Plant: Tianjin, China No fresh water source available EPC project delivery In operation since 2010 Powered by waste heat from SDIC 25% BFW, 75% sold to external industrial Brine recycled to produce table salt 8 X MED-6 MGD 18

19 IDE s Horizontal Evaporator: MED-60 MGD Capacity Reliance - Gujarat, India DOWN STREAM O&G - INDIA S LARGEST DESALINATION PLANT Largest Refinery in the world Government terminated source of fresh water supply after 20 years. In operation since 1998 Expandable source of water with 45 MGD SWRO currently under construction 20% to BFW; 80% to process/utility supply 19

20 MED Process Flow Diagram INTAKE STATION SEA STEAM/WASTE HEAT CARTRIDGE MICRONIC FILTERS MED BACKWASH WATER BRINE 1:4 MIX (IF REQUIRED) CONDENSATE/ STEAM RETURN RE-HARDENING TREATMENT BACKWASH WATER WATER DELIVERY POINT SLUDGE TREATMENT 20

21 IDE Your Water Partners Why Desalination for Industrial Application? 21

22 What If: This region had an uninterruptable, sustainable and expandable supply of water to meet the needs of industry, agriculture and municipal users regardless of rainfall levels? Managers of existing industrial facilities could know that their current levels of operation are not subject to supply interruption and that if they choose to expand their operations additional water supplies can be brought on line in a timely fashion? Local and regional elected officials and economic developers could assure new industrial prospects that if they locate in this region they will have water? 22

23 Solution: Desalinated water is a source for uninterruptable and expandable water supply Not dependent on rain, Gulf of Mexico is always there Ample capital is available through PPP model New design and construction techniques make plants easily expandable Scale matters with respect to capital cost and therefore water cost Operational costs are decreasing due to increased energy efficiency including: Energy recovery Improved membranes If plant is collocated with a power generation facility a substantial decrease in capital and operating cost Co-location also allows the sharing of water intake infrastructure Inside the fence power purchase agreement reduces power cost 23

24 Concerns Regarding Price of Water Blended pricing concept = lowest cost for water security Water Purchase Agreement shifts risk = lowest water price. When there is no water, how much would you pay for water? $ Completed Contracted $0.75 $0.52 $0.57 $

25 Water supply and management considerations for Industrial users What is your true cost of water delivered to the point of use in the facility at the quality needed? What is your true cost of any new water source delivered to the point of the use in the facility at the quality needed? What is the avoided treatment costs by sourcing a new higher quality water that requires less pretreatment? What is the value premium for water sources that are uninterruptable and easily expandable (seawater)? 25

26 Where the Water Goes 26

27 Common Issues and Objections re Desalination (what I hear in the market place) Footprint (takes up too much space) Energy Consumption (uses too much energy) Water Intake (where is the water coming from?) Brine Management (where does the waste stream go?) Time to Water (I need the water tomorrow!) Price of Water (its too expensive) Its Eventually Going to Rain (so we will just wait) All of these issues, have already been resolved! (some examples) 27

28 Concerns Regarding Footprint: Innovation Example: vertical vs. horizontal (16 Vertical Membranes, Sorek) 16 Vertical design Standard 8 Horizontal design 28

29 Benefits- Vertical RO -16 Inch Significant Reduction of total Foot Print Horizontal Vertical Membrane Size 8 " 16" Number of Membrane per PV 8 8 Number of PVs per Train Number of Trains Number of PVs Number of PVs, equiv 8 " Total RO Area, m Specific Area per PV Total Foot Print Saving 32%

30

31 Energy Consumption for Seawater Desalination Thermal (MED) Kwh/m3 Pressure (RO) Kwh/m3 31

32 Concerns Regarding Energy Consumption IDE s Pressure Center Concept Minimizes Number of Pumps and Maximizes Motor Efficiency (RO trains operate with 95% energy recovery) E R S 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 P P M M 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 P M Each RO bank no longer required its own pump and ERS. Invented and Implemented in Ashkelon, Hadera, Sorek and Carlsbad 32

33 Concerns Regarding Intake Sorek, Israel (150 MGD) 2.5 km of intake pipe using pipe jacking under nature reserve Lanai, Hawaii (10MGD) Saline groundwater well deployed 2 km away from beach 33

34 Desalination Innovation Intake Design in Environmentally Sensitive Areas 2.5 km; Intake pipe diameter 3.1m 34

35 Pipe Jacking Pipe segment 35

36 Intake Pipeline Suction Head + Air Bubbles for Jellyfish Rejection 36

37 Concerns Regarding Brine: Some Options Salt mining Recapture valuable minerals Aquatic Farming Brine shrimp to feed fish farm Oyster farming Fracking and Completion Fluids Avoids sourcing fresh water Brine Minimization Technologies Power Generation (osmotic power) Forward Osmosis 37

38 Concerns Regarding Time to Water Packaged Plant Modular Design Prefabricated RO Plant 140K m3/day Cape-Preston, Australia Skid/Containerized Plants Vessels were shipped from China to India Manufacturing Shipyard, China MED Facility Erection, Reliance, India Track Record All Projects On Time and On Budget

39 Advantages of Modular Plant Design Design/ Engineering Site Development & Foundations Equipment Assembly/Erection/Interconnection Design/ Engineering Site Development & Foundations Module Installation/ Interconnection Reduced installation costs Equipment Assembly/Module Fabrication

40 Membrane Building Module Ready for Transport Cape Preston Modular delivery SWRO Skid Delivered to Pre- Fabrication Yard SWRO Skid Installed within Membrane Building Module and Pressure Vessels Installed

41 Modular Plant Design Pre-Treatment Foundation Pre-Cast Panels Panel and Underdrain Erection RO Media Installation Foundation RO Skid Installation Process Pumps and Pre-Spooled Piping 41

42 It s Eventually Going to Rain Really? 42

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