Post on 22-Apr-2015
description
March, 2012
1
Seven Seas Water CorporationBahamas-BVI-Florida-Mexico-Netherlands Antilles-Trinidad & Tobago-TCI-USVI
Seven Seas Water
AgendaAgenda
1. Sea-water reverse osmosis; the basics
2. Water Quality
3. The importance of pre-treatment
4. Texas SWRO development
5. BOO(T) form of contract; fast-track to implementation
PROPRIETARY & CONFIDENTIAL 2
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Seven Seas WaterOverview of SSWOverview of SSW
• Currently own and operate 9 facilities with a total production of 10Currently own and operate 9 facilities with a total production of 10 MGD in the Caribbean
• By end of 2012, will have increased to 12 facilities with a total production of 24 MGD
• Will be the sole provider of potable water in the USVI at 9.5 MGD
• All projects have been executed under the BOO(T) form of contract
• Have invested $100m to date, with no debt
• Now expanding into markets in Chile, Mexico, & the USA
PROPRIETARY & CONFIDENTIAL 3
Seven Seas Water
1 Sea water reverse osmosis (SWRO)1. Sea-water reverse osmosis (SWRO) - the basics
PROPRIETARY & CONFIDENTIAL 4
Seven Seas WaterSWRO By the numbersSWRO – By the numbers
• Total number of operational SWRO plants worldwide: >6 000Total number of operational SWRO plants worldwide: >6,000
• Total production: >11,000 MGD (>12,000,000 acre-feet/year)– At 100gpd average consumption2, sufficient to supply 100 gp g p , pp y
million persons per day
• Total number of operational sea-water RO plants in the USA: >70
• Total production: >100 MGD (>125,000 acre-feet/year)– At 100gpd average consumption2, sufficient to supply 1 million
persons per day (population of Texas is 26 million)persons per day (population of Texas is 26 million)
1 d ld t
PROPRIETARY & CONFIDENTIAL 5
• 1.desaldata.com
• 2.dshs.state.tx.us
Seven Seas WaterSWRO PictorialSWRO - Pictorial
PROPRIETARY & CONFIDENTIAL 6
Seven Seas WaterSWRO Schematic (pressure)SWRO – Schematic (pressure)
• Typical schematicTypical schematic
Pressure: 750-1000psi
PROPRIETARY & CONFIDENTIAL 7
Seven Seas WaterSWRO Membrane constructionSWRO – Membrane construction
• Membrane constructionMembrane construction
PROPRIETARY & CONFIDENTIAL 8
Seven Seas WaterSWRO Schematic (PX)SWRO – Schematic (PX)
• Typical schematicTypical schematic
Pressure: 750-1000psi Low pressure potable water
High pressure brine
High pressure feed water
Low pressure brineLow pressure
feed water
PROPRIETARY & CONFIDENTIAL 9
feed water
Seven Seas WaterSWRO Energy recoverySWRO – Energy recovery
PROPRIETARY & CONFIDENTIAL 10
Seven Seas Water
2 Water Quality2. Water Quality
PROPRIETARY & CONFIDENTIAL 11
Seven Seas WaterSWRO Feed waterSWRO – Feed water
• Typical feed (sea water) water quality parametersTypical feed (sea water) water quality parameters
Parameter Typical SW Feed, mg/LDissolved Solids TDS 35,000
S d d S lid TSS 10 0Suspended Solids TSS 10.0 Turbidity NTU 5.0
pH 8.2 Chlorine 0.0 Hardness 1,702
Bicarbonate HCO3 110 C b t CO3 20Carbonate CO3 20 Flouride F 1.3 Chloride Cl 19,400 Bromide Br 67 Sulfate SO4 2,700 Lithium Li 0 S di N 10 800Sodium Na 10,800
Potassium K 398 Magnesium Mg 1,290
Calcium Ca 412 Iron Fe 0.0
Strontium Sr 7.9 Barium Ba 0 0
PROPRIETARY & CONFIDENTIAL 12
Barium Ba 0.0 Silica SiO2 5.0 Boron B 4.5
Seven Seas WaterSWRO Post pretreatmentSWRO – Post pretreatment
• Typical post-pretreatment water quality parametersTypical post-pretreatment water quality parameters
Parameter Typical SW Feed, mg/LTypical Pretreatment
Effluent, mg/LDissolved Solids TDS 35,000 35,000
S d d S lid TSS 10 0 2 0Suspended Solids TSS 10.0 2.0 Turbidity NTU 5.0 1.0
pH 8.2 8.2 Chlorine 0.0 0.0 Hardness 1,702 1,702
Bicarbonate HCO3 110 110 C b t CO3 20 20Carbonate CO3 20 20 Flouride F 1.3 1.3 Chloride Cl 19,400 19,400 Bromide Br 67 67 Sulfate SO4 2,700 2,700 Lithium Li 0 0 S di N 10 800 10 800Sodium Na 10,800 10,800
Potassium K 398 398 Magnesium Mg 1,290 1,290
Calcium Ca 412 412 Iron Fe 0.0 0.0
Strontium Sr 7.9 7.9 Barium Ba 0 0 0 0
PROPRIETARY & CONFIDENTIAL 13
Barium Ba 0.0 0.0 Silica SiO2 5.0 5.0 Boron B 4.5 4.5
Seven Seas WaterSWRO Post pretreatmentSWRO – Post pretreatment
10 0Effect of Pretreatment on WQ Parameters
8.0 9.0
10.0 (SDI<3)
5.0 6.0 7.0
ppm Sea water
2 03.0 4.0
p Pre-treatment effluent
0.0 1.0 2.0
Suspended Solids Turbidity
PROPRIETARY & CONFIDENTIAL 14
Suspended Solids Turbidity
Parameter
Seven Seas WaterSWRO PermeateSWRO - Permeate
• Typical permeate water quality parametersTypical permeate water quality parameters
ParameterTypical Pretreatment
Effluent, mg/LTypical Permeate
Effluent, mg/LDissolved Solids TDS 35,000 350
S d d S lid TSS 2 0 0Suspended Solids TSS 2.0 0 Turbidity NTU 1.0 <0.1
pH 8.2 6.2 Chlorine 0.0 0.0 Hardness 1,702 17
Bicarbonate HCO3 110 1 C b t CO3 20 0Carbonate CO3 20 0 Flouride F 1.3 0 Chloride Cl 19,400 194 Bromide Br 67 1 Sulfate SO4 2,700 27 Lithium Li 0 0 S di N 10 800 108Sodium Na 10,800 108
Potassium K 398 4 Magnesium Mg 1,290 13
Calcium Ca 412 4.12 Iron Fe 0.0 0.0
Strontium Sr 7.9 0.1 Barium Ba 0 0 0 0
PROPRIETARY & CONFIDENTIAL 15
Barium Ba 0.0 0.0 Silica SiO2 5.0 0.1 Boron B 4.5 0.5
Seven Seas WaterSWRO PermeateSWRO - Permeate
2 0 Effect of Membranes on WQ Parameters
1.6 1.8 2.0
1.0 1.2 1.4
pm Pre-treatment effluent
0 40.6 0.8
p Permeate
0.0 0.2 0.4
S d d S lid T bidit
PROPRIETARY & CONFIDENTIAL 16
Suspended Solids TurbidityParameter
Seven Seas WaterSWRO PermeateSWRO - Permeate
35 000 Effect of Membranes on WQ Parameters
25 000
30,000
35,000 Effect of Membranes on WQ Parameters
15 000
20,000
25,000
ppm
Pre-treatment effluent
10,000
15,000 p Pre treatment effluentPermeate
0
5,000
Dissolved Chloride Sodium
PROPRIETARY & CONFIDENTIAL 17
Solids
Parameter
Seven Seas WaterSWRO Post treatmentSWRO – Post-treatment
• Typical post-treatment water quality parameters (potable)Typical post-treatment water quality parameters (potable)
ParameterTypical Permeate
Effluent, mg/LTypical Post Treatment
Effluent, mg/LDissolved Solids TDS 350 410
S d d S lid TSS 0 0Suspended Solids TSS 0 0 Turbidity NTU <0.1 <0.1
pH 6.2 7.2 Chlorine 0.0 2 Hardness 17 37
Bicarbonate HCO3 1 40 C b t CO3 0 0Carbonate CO3 0 0 Flouride F 0 0 Chloride Cl 194 194 Bromide Br 1 1 Sulfate SO4 27 27 Lithium Li 0 0 S di N 108 108Sodium Na 108 108
Potassium K 4 4 Magnesium Mg 13 13
Calcium Ca 4.12 24 Iron Fe 0.0 0.0
Strontium Sr 0.1 0.1 Barium Ba 0 0 0 0
PROPRIETARY & CONFIDENTIAL 18
Barium Ba 0.0 0.0 Silica SiO2 0.1 0.1 Boron B 0.5 0.5
Seven Seas WaterSWRO Post treatmentSWRO – Post treatment
40 Post-treatment WQ Parameters
30
35
0 Post treatment WQ Parameters
20
25
ppm
Permeate
10
15
p
Post treatment potable
0
5
PROPRIETARY & CONFIDENTIAL 19
Hardness Bicarbonate CalciumParameter
Seven Seas WaterSWRO BrineSWRO – Brine
• Comparison: Feed water - BrineComparison: Feed water - Brine
Parameter Typical SW Feed, mg/L Typical Brine, mg/LDissolved Solids TDS 35,000 58,100
S d d S lid TSS 10 0 15Suspended Solids TSS 10.0 15 Turbidity NTU 5.0 8
pH 8.2 8.4 Chlorine 0.0 0.0 Hardness 1,702 2,825
Bicarbonate HCO3 110 183 Carbonate CO3 20 33Carbonate CO3 20 33 Flouride F 1.3 2 Chloride Cl 19,400 32,204 Bromide Br 67 111 Sulfate SO4 2,700 4,482 Lithium Li 0 0 Sodium Na 10 800 17 928Sodium Na 10,800 17,928
Potassium K 398 661 Magnesium Mg 1,290 2,141
Calcium Ca 412 684 Iron Fe 0.0 0.0
Strontium Sr 7.9 13.1 Barium Ba 0 0 0.0
PROPRIETARY & CONFIDENTIAL 20
Barium Ba 0.0 0.0 Silica SiO2 5.0 8.3 Boron B 4.5 7.2
Seven Seas WaterSWRO BrineSWRO – Brine
60,000 Comparison of Feed Sea Water to Brine
50,000
30,000
40,000
ppm
Sea water
10 000
20,000 Brine
0
10,000
Dissolved Chloride Sodium
PROPRIETARY & CONFIDENTIAL 21
SolidsParameter
Seven Seas Water
3 The Importance of Pre treatment3. The Importance of Pre-treatment
PROPRIETARY & CONFIDENTIAL 22
Seven Seas WaterSWRO Pre treatmentSWRO – Pre-treatment
• Typical schematicTypical schematic
Critical water quality
PROPRIETARY & CONFIDENTIAL 23
Seven Seas WaterSWRO Pretreatment effect on TSSSWRO – Pretreatment effect on TSS
• Typical post-pretreatment water quality parametersTypical post-pretreatment water quality parameters
Parameter Typical SW Feed, mg/LTypical Pretreatment
Effluent, mg/LDissolved Solids TDS 35,000 35,000
S d d S lid TSS 10 0 2 0Suspended Solids TSS 10.0 2.0 Turbidity NTU 5.0 1.0
pH 8.2 8.2 Chlorine 0.0 0.0 Hardness 1,702 1,702
Bicarbonate HCO3 110 110 C b t CO3 20 20Carbonate CO3 20 20 Flouride F 1.3 1.3 Chloride Cl 19,400 19,400 Bromide Br 67 67 Sulfate SO4 2,700 2,700 Lithium Li 0 0 S di N 10 800 10 800Sodium Na 10,800 10,800
Potassium K 398 398 Magnesium Mg 1,290 1,290
Calcium Ca 412 412 Iron Fe 0.0 0.0
Strontium Sr 7.9 7.9 Barium Ba 0 0 0 0
PROPRIETARY & CONFIDENTIAL 24
Barium Ba 0.0 0.0 Silica SiO2 5.0 5.0 Boron B 4.5 4.5
Seven Seas WaterSWRO PretreatmentSWRO - Pretreatment
• Pretreatment design is critical to the operation and efficiency ofPretreatment design is critical to the operation and efficiency of the sea-water reverse osmosis (desalting) process
• The primary aim of pretreatment is to is to lower the Total Suspended Solids (TSS) and Biological Constituents
• The target is to achieve a Silt Density Index (SDI-15) <3
• Typical pretreatment for sea water includes the following:– MF or UF or dual-stage multi-media filtration
Coagulation & flocculation (less common)– Coagulation & flocculation (less common)
PROPRIETARY & CONFIDENTIAL 25
Seven Seas WaterSWRO Pretreatment schematicSWRO – Pretreatment schematic
F d tFeed water
Media FilterLow pressure pump Media Filter (1o filtration)
Low pressure pump
Cartridge Filter (2o filtration)
High pressure pump
to Membranes
High pressure pump
PROPRIETARY & CONFIDENTIAL 26
Seven Seas WaterSWRO Pretreatment pictorialSWRO – Pretreatment pictorial
PROPRIETARY & CONFIDENTIAL 27
Seven Seas Water
4 Texas SWRO Development4. Texas SWRO Development
PROPRIETARY & CONFIDENTIAL 28
Seven Seas WaterSWRO By the numbersSWRO – By the numbers
• Total number of operational SWRO plants worldwide: >6 000Total number of operational SWRO plants worldwide: >6,000
• Total production: >11,000 MGD (>12,000,000 acre-foot/year)– At 100gpd average consumption2, sufficient to supply 100 gp g p , pp y
million persons per day
• Total number of operational sea-water RO plants in the USA: >70
• Total production: >100 MGD (>125,000 acre-foot/year)– At 100gpd average consumption2, sufficient to supply 1 million
persons per day (population of Texas is 26 million)persons per day (population of Texas is 26 million)
1 d ld t
PROPRIETARY & CONFIDENTIAL 29
• 1.desaldata.com
• 2.dshs.state.tx.us
Seven Seas WaterTexas TCEQTexas – TCEQ
• In Texas SWRO is considered ‘an innovative technology’In Texas, SWRO is considered an innovative technology
• A pilot study is mandated via TCEQ staff guidance documents
Th TCEQ il t t d id i d t il d & i ti• The TCEQ pilot study guidance is very detailed & prescriptive compared to a more performance-based approach elsewhere
• The pilot study process is time consuming:The pilot study process is time consuming:– Protocol to be developed & approved– Pilot plant construction & commissioning
At l t 3 th ti– At least 3 months operations– Pilot report developed & submitted for TCEQ approval (9-12
months)
PROPRIETARY & CONFIDENTIAL 30
• Can be a 1-2 year period to complete the pilot study process
Seven Seas WaterPilot studiesPilot studies
• Typically Pilot studies are executed for the following reason:Typically, Pilot studies are executed for the following reason:– To ensure that the pretreatment will operate effectively &
efficiently
• It appears that the TCEQ approach is based on protecting public health & safety, and the tax-payer, by ensuring a functional SWRO facility with optimal Capex and Opex selection
PROPRIETARY & CONFIDENTIAL 31
Seven Seas WaterTexas Pilot study needTexas – Pilot study need
• Typically pilot studies are not required for SWRO facilitiesTypically, pilot studies are not required for SWRO facilities
• Of the 12 SSW SWRO facilities, no pilot study was executed
If th t d it i d t l i ti i th f d t• If they are executed, it is due to large variations in the feed water quality, e.g. a pilot study was executed for the Point Lisas facility in Trinidad, which experiences large fluctuations in turbidity in the feed water ranging from 1 100 NTUfeed water ranging from 1-100 NTU
• If required, pilot studies are often executed while the construction of the remainder of the facility is ongoing, i.e. the pilot study is y g g, p yexecuted by the same company responsible for the design & construction of the facility
PROPRIETARY & CONFIDENTIAL 32
Seven Seas WaterTexas Pilot study implicationTexas – Pilot study implication
• The mandated pilot study process will take 1-2 yearsThe mandated pilot study process will take 1-2 years
• Permitting/licensing to take 12-18 months
C t ti t t k 15 th• Construction to take 15 months
• Total time from start of the pilot study process to the facility commissioning can easily be around 48 monthscommissioning can easily be around 48 months
PROPRIETARY & CONFIDENTIAL 33
Seven Seas WaterTexas Pilot study needTexas – Pilot study need
• Consider the 48 months from start of pilot study to start ofConsider the 48 months from start of pilot study to start of operations
• The current Texas regulations dictate that the full-scale plant must use the same process, membranes, etc. as the pilot study– During the last 36-48 months, RO membrane pressure has
reduced from a typical 870psi to 735psi– At the same time, square footage has increased from a typical
370ft2 to 440ft2 per element– By dictating that the full-scale plant must be the same as the y g p
pilot study, the resulting ‘new’ plant will be outdated, inefficient, & unable to easily adopt improvements in the technology
PROPRIETARY & CONFIDENTIAL 34
Seven Seas WaterSWRO executed pilot studiesSWRO – executed pilot studies
• 2 SWRO pilot studies executed in Texas:2 SWRO pilot studies executed in Texas:– LMWD completed in August 2010– Brownsville PUB completed in October 2008
N ith h b b itt d t TCEQ f l– Neither has been submitted to TCEQ for approval– The advances in membrane technology since the execution of
these studies has been significant– Having to stick with the same process and materials of the
prescriptive pilot study will assure an out-of-date full-scale facility
– ???: Does this mean that as and when the projects are to proceed, there a need for a second pilot study?
PROPRIETARY & CONFIDENTIAL 35
Seven Seas WaterTexas Pilot study needTexas – Pilot study need
• If the purpose of the pilot study is to ensure the optimal operationsIf the purpose of the pilot study is to ensure the optimal operations of the full-scale facility, & in the process protect the tax-payer & public health & safety, the current regimen will not produce the desired result
• What if the investment is made by the private sector?• What if the investment is made by the private sector?– Still have to ensure optimum life-cycle solution (price)– Still have to ensure public health & safety– Performance will be the sole critical metric
PROPRIETARY & CONFIDENTIAL 36
Seven Seas Water
5 BOO(T) form of contract; fast track5. BOO(T) form of contract; fast-track to project implementation
PROPRIETARY & CONFIDENTIAL 37
Seven Seas WaterSWRO D&C project executionSWRO – D&C project execution
• Typical D&C processTypical D&C process– RFP for pilot plant– RFP for engineering firm to design SWRO facility
Li it d h i il bl (i l d itti )• Limited choice available (includes permitting)– RFP for construction company to build SWRO facility based
on design– What to do about O&M?
• Find qualified operators & execute internally?– No strong position with supply chaing y
• O&M contract to 3rd party? – another RFP
• Where does the accountability lie?
PROPRIETARY & CONFIDENTIAL 38
• This IS a specialized field
Seven Seas WaterSWRO P3 legislationSWRO – P3 legislation
• S B 1048 P3 legislation came into effect on September 1 2011S.B. 1048 P3 legislation came into effect on September 1, 2011
• Specifically references ‘water supply facility’
BOO(T) f f t t it th P3 P bli P i t P t hi• BOO(T) form of contract suits the P3 – Public Private Partnership - approach√ Finance the project√ Reduce time for implementation by executing pilot study,
permitting, & final design concurrently√ Eliminate design risk (for client)√ Eliminate construction risk (for client)√ Eliminate operations & maintenance risk (for client)√ Client only pays when SWRO facility is producing
PROPRIETARY & CONFIDENTIAL 39
√ Client only pays when SWRO facility is producing contractual quantity & quality
Seven Seas WaterSWRO P3 legislationSWRO – P3 legislation
• The primary purpose of the P3 approach is the optimal transfer ofThe primary purpose of the P3 approach is the optimal transfer of public sector risk (that would be involved in a traditional project) to the private sector
PROPRIETARY & CONFIDENTIAL 40
Seven Seas Water
SummarySummary
PROPRIETARY & CONFIDENTIAL 41
Seven Seas WaterSWRO SummarySWRO – Summary
• SWRO is an established technology albeit specializedSWRO is an established technology, albeit specialized
• A need in Texas for SWRO
N P3 l i l ti ll BOO(T) f f t t f SWRO• New P3 legislation allows BOO(T)–form of contract for SWRO facilities
• BOO(T) approach will significantly shorten the project executionBOO(T) approach will significantly shorten the project execution time (pilot study – permitting – design – build – commissioning)
• Economically-viable approach in Texas, even when considering the municipal bond market & other available financial instruments
• Will provide comfort to Board/Municipality/District that tax-payer risk has been minimized
PROPRIETARY & CONFIDENTIAL 42
payer risk has been minimized
March, 2012
43
Seven Seas Water CorporationBahamas-BVI-Florida-Mexico-Netherlands Antilles-Trinidad & Tobago-TCI-USVI