The Future of Desalination & Cleaning Brackish Water Energy, Air & Water: A Comprehensive Study of the Issues of Today Paul Choules Senior Vice President of Business Development 10 OCTOBER 2013 TOPICS • • • • • • • • • • About Texas Desalination Association The Demand for Water Some Water Facts Desalination, a practical alternative Desal in Texas Water Sources Desalination Defined Market forecast Prop 6 – VOTE Conclusions WS_TEXAS_ALLIANCE_SAN_ANTONIO_FUTURE_OF_DESAL_BRACKISH ©2013 WATER STANDARD All Rights Reserved 2 About the Texas Desalination Association The Texas Desalination Association was established in response to: 1. The drought of 2011 and its effects on municipal, agricultural and industrial water supplies and 2. The water needed to recognize the economic benefits of hydraulic fracturing in oil and gas production in Texas. • Membership is comprised of representatives from the legislature and academia, regulators, Desal industry insiders, members of the legal community and state and local municipalities. We have membership from the oil & gas industry and the power industry, developers, consultants and contractors touching every aspect of water. Everyone needs water and our drought proof technology is one of the long term solutions for Texas. WS_TEXAS_ALLIANCE_SAN_ANTONIO_FUTURE_OF_DESAL_BRACKISH ©2013 WATER STANDARD All Rights Reserved 3 About the Texas Desalination Association Key Achievements & Milestones: • • • • • • Consistently working to make regulatory processes more accessible Educating the public on pertinent water issues Texas Desal 2013: Opportunities & Obstacles Conference - Exceeded 250 attendees at its first-ever conference; planning for second annual conference underway Our most important legislative initiative was an attempt to streamline the regulatory process in regards to permitting Our other effort was to support a legislative attempt to encourage “colocating” of Desal and power generation plants A commitment received from TCEQ officials to undertake rulemaking to address the current regulatory permitting process WS_TEXAS_ALLIANCE_SAN_ANTONIO_FUTURE_OF_DESAL_BRACKISH ©2013 WATER STANDARD All Rights Reserved 4 Increased Demand and Need Competing interests with agriculture, population growth and industry for a limited unpredictable source ▼Water restrictions have eliminated about 50,000 acres of the region's 145,000 acres of rice in Texas (Source: E&E Publishing). ►Texas population to more than double by 2050 (projected to grow to 41 million). WS_TEXAS_ALLIANCE_SAN_ANTONIO_FUTURE_OF_DESAL_BRACKISH ©2013 WATER STANDARD All Rights Reserved ◄The US is on its way to become energy independent currently leading the world in oil and gas production. ▲78 percent of the state is in exceptional drought, the worst category possible. 5 Needs Relative To Projected Demands Largest Cities in Texas are among the Top 20 Largest in the US: Houston Dallas San Antonio Austin El Paso Limited source Unlimited source Gulf of Mexico WS_TEXAS_ALLIANCE_SAN_ANTONIO_FUTURE_OF_DESAL_BRACKISH ©2013 WATER STANDARD All Rights Reserved 6 Water, The Facts Houston: • • • Industrial: $4.74/1,000 gallons Commercial: $4.74/1,000 gallons Residential Single Family: $4.46/1,000 gallons San Antonio: • • • Industrial: $1.15/1,000 gallons Commercial: $1.15/1,000 gallons Industrial: $5.80/1,000 gallons Commercial: $5.80/1,000 gallons Residential: $3.96/1,000 gallons Las Vegas: • • • • • • Industrial: $2.08/1,000 gallons Commercial: $1.16/1,000 gallons Industrial: $5.17/1,000 gallons Commercial: $5.17/1,000 gallons Residential: $4.17/1,000 gallons Austin: • • • Residential: $0.948/1,000 gallons Los Angeles: • • • Corpus Christi: Industrial: $4.69/1,000 gallons Commercial: $4.69/1,000 gallons Residential Single Family: $1.172/ 1,000 gallons Phoenix • • • Industrial: $7.77/1,000 gallons Commercial: $7.77/1,000 gallons Residential: $4.49/1,000 gallons Prices are rising across all major cities and sectors Residential: $1.16/1,000 gallons Source: Austintexas.gov WS_TEXAS_ALLIANCE_SAN_ANTONIO_FUTURE_OF_DESAL_BRACKISH ©2013 WATER STANDARD All Rights Reserved 7 Four Sources Additional water supply for increasing demand can only be obtained through four (4) basic sources: Finding Additional Traditional Sources of Supply: Rainwater Catchment, Aquifers, Rivers and Lakes/Dams Conservation WS_TEXAS_ALLIANCE_SAN_ANTONIO_FUTURE_OF_DESAL_BRACKISH ©2013 WATER STANDARD All Rights Reserved Reuse (Wastewater / Produced Water Reuse) Desalination Desalination: A Practical Alternative • • The cost variance to treat freshwater and brackish groundwater will undoubtedly converge, particularly if Texas continues to experience intense drought. As our freshwater reserves become more stressed, the demand for freshwater will drive the cost up, making desalination more attractive. Desalination of brackish groundwater is slowly but surely becoming a more competitive and practical alternative for meeting water demands in Texas. WS_TEXAS_ALLIANCE_SAN_ANTONIO_FUTURE_OF_DESAL_BRACKISH ©2013 WATER STANDARD All Rights Reserved 9 Desalination in Texas El Paso is the site of one of the world's largest inland desalination plant. A joint project of El Paso Water Utilities and Ft. Bliss, the Kay Bailey Hutchison Desalination Plant produces 27.5 million gallons of fresh water daily (MGD) making it a critical component of the region's water portfolio. Using a previously unusable brackish groundwater supply, the Kay Bailey Hutchison Desalination Plant is creating a new supply of water - water from water. WS_TEXAS_ALLIANCE_SAN_ANTONIO_FUTURE_OF_DESAL_BRACKISH ©2013 WATER STANDARD All Rights Reserved On June 21, 1961, President Kennedy pressed a button in the White House, signaling the start-up of the first of the five demo plants, noting, “[Desal] represents a triumph of peace and not war.” How and Why? •Reliable and cost-effective water treatment tool •Over 11 Billion GPD of reverse osmosis (RO) and electrodialysis (ED/R) capacity installed in desalination facilities around the world •Over 5 Billion GPD of membrane filtration installation capacity Examples - London, Sydney, Barcelona, Tampa Bay, Perth, Jeddah, Singapore, El Paso, etc WS_TEXAS_ALLIANCE_SAN_ANTONIO_FUTURE_OF_DESAL_BRACKISH Source: GWI ©2013 WATER STANDARD All Rights Reserved Water Sources Defined 1) Brackish water is defined as water that is “distastefully salty” but significantly less salty than seawater. Brackish water can be found in surface water settings such as estuaries or ground water settings such as aquifers. Brackish water differs from seawater because brackish water has a lower salt content. Thus, it requires less energy and costs less to desalinate via reverse osmosis 2) Re-use: Re-Use can help supplement your municipality's scarce water stores while providing a maintainable reserve for agriculture, irrigation and industrial operations 3) Produced Water (PW): Globally for each barrel of oil produced, three barrels of ‘contaminated’ water is also produced (3:1). In the U.S. the ratio is closer to 1:7 4) Seawater: Seawater desalination is an alluring adaptation strategy because it could provide a reliable, drought-resistant water supply WS_TEXAS_ALLIANCE_SAN_ANTONIO_FUTURE_OF_DESAL_BRACKISH ©2013 WATER STANDARD All Rights Reserved 12 Source Water Quality Source: Water Reuse Association WS_TEXAS_ALLIANCE_SAN_ANTONIO_FUTURE_OF_DESAL_BRACKISH ©2013 WATER STANDARD All Rights Reserved 13 What is Desalination? • Desalination is removing the majority of salt from salty water. It achieves this by pushing water through a membrane that acts as a sieve of sorts. Larger components like salt and bacteria are too large to pass through the membrane while the smaller water molecules pass through. The process effectively separates water from larger components and contaminants resulting in potable drinking water. Source Water Source: Seawater Desalination Feasibility Study, 2007 WS_TEXAS_ALLIANCE_SAN_ANTONIO_FUTURE_OF_DESAL_BRACKISH ©2013 WATER STANDARD All Rights Reserved 14 Thermal • The thermal desalination process is based on evaporation and the subsequent condensation of the steam WS_TEXAS_ALLIANCE_SAN_ANTONIO_FUTURE_OF_DESAL_BRACKISH ©2013 WATER STANDARD All Rights Reserved 15 Membrane Technology for Oil & Gas • Filtration used to remove Total Suspended Solids (TSS) • Reduced pressure membrane technologies such as Membrane Filtration (MF) (micro- and ultrafiltration) are used for TSS removal – next generation of filtration • Pressurized membrane technologies such as Reverse Osmosis (RO) and Nanofiltration (NF) used for salt and hardness removal • Seawater-based waterflooding • Sulphate Removal Processes (SRP) • Produced water treatment uses combination of oil/water separation technologies followed by filtration (generally for other applications) • Deaeration to prevent biogrowth – vacuum towers, Miox • Next generation using membrane deoxygenation Water Standard has pioneered the use of membranes for desalination and can fine-tune the salinity and water composition as needed. WS_TEXAS_ALLIANCE_SAN_ANTONIO_FUTURE_OF_DESAL_BRACKISH ©2013 WATER STANDARD All Rights Reserved 16 What Is A Membrane? • Extremely thin separating layer that allows some things to pass while keeping others out • Some familiar examples: • Skin • Cell coverings • Saran Wrap • Microfiltration Cryptosporidium oocyst on MF membrane WS_TEXAS_ALLIANCE_SAN_ANTONIO_FUTURE_OF_DESAL_BRACKISH ©2013 WATER STANDARD All Rights Reserved 17 Benefits of Membrane Use • • Compact and Modular Design Improved Performance • Suspended solids content • Reduced biological counts • Improved NF/RO performance • Minimal Energy Requirements • Competitive with conventional designs • Low Environmental Impact • Fewer chemicals required • Innocuous waste (90-99% recovery) • Enables Efficiency Throughout Facility • • • • • • Fewer NF/RO cleanings - lower operating cost Lower NF/RO pressure drops from fouling - lower energy cost Lower operations requirement due to complete automation Greater plant availability related to decreased NF/RO cleanings Longer NF/RO membrane life Lower chemical and sludge handling cost WS_TEXAS_ALLIANCE_SAN_ANTONIO_FUTURE_OF_DESAL_BRACKISH ©2013 WATER STANDARD All Rights Reserved 18 Market Forecast WS_TEXAS_ALLIANCE_SAN_ANTONIO_FUTURE_OF_DESAL_BRACKISH ©2013 WATER STANDARD All Rights Reserved 19 The State Water Plan: The Texas Drought Connection The State Water Plan is designed to meet water needs during times of drought. Its purpose is to ensure that cities, rural communities, farms, ranches, businesses, and industries have enough water during a repeat of the 1950s drought conditions. WS_TEXAS_ALLIANCE_SAN_ANTONIO_FUTURE_OF_DESAL_BRACKISH ©2013 WATER STANDARD All Rights Reserved 20 What’s Next for Water? Prop 6 • • • Texas does not have a dedicated funding source for water infrastructure to support the anticipated future rise in public demand on the water supply Long-term drought conditions could start costing Texas jobs—and money—if state voters do not pass a $2 billion water referendum this November If voters approve funding in November, the new accounts would be used to give out low-interest loans for regional water projects in Texas. NOVEMBER 4, 2013 WS_TEXAS_ALLIANCE_SAN_ANTONIO_FUTURE_OF_DESAL_BRACKISH ©2013 WATER STANDARD All Rights Reserved 21 Conclusions • Tailoring water qualities to minimize waste and squeeze the most out of every drop • Making desalination and other treatment processes an integral part of the overall water solution • Focusing on minimizing the water and chemicals needed for waterbased EOR given cost and scarcity concerns • Providing specific water qualities for the produced water cycle • Working to develop cost-effective treatment and reuse solutions WS_TEXAS_ALLIANCE_SAN_ANTONIO_FUTURE_OF_DESAL_BRACKISH ©2013 WATER STANDARD All Rights Reserved 22 FOR MORE INFORMATION CONTACT Paul Choules SVP, Business Development pchoules@waterstandard.com Executive Office: 4265 San Felipe, Suite 620 Houston, Texas USA 77027 +1-713-400-4777 www.waterstandard.com WS_TEXAS_ALLIANCE_SAN_ANTONIO_FUTURE_OF_DESAL_BRACKISH ©2013 WATER STANDARD All Rights Reserved 23