Sourcing Recycled WaterSourcing Recycled Water

GE Water & Process Technologies

Water Reuse Seminar

August 24th, 2007

Iain Gilmore

General Manager – Operations, Qenos

IntroductionIntroduction• Qenos is Australia’s only manufacturer and leading

marketer of polyethylene (PE)

• 3 plants in each of Altona (Vic) and Botany (NSW)

• Directly employs 800 people

• Owned by China National Chemical Corporation

• Annual turnover ~A$800M

• Primary focus is Australian domestic PE market

• Products supplied to hundreds of plastics fabricators

AltonaAltona

Olefins plant - Altona

One of City West Water’s largest customers for both water consumption and Trade Waste volume.

BotanyBotanyOne of Sydney Water’s largest customers

Olefines plant - Botany

Large Water UsageLarge Water Usage

• Steam cracking is energy and water intensive

• Water usage distribution:

Co o ling to wer make-up fo r evapo ra tive

lo s s es47%

Steam genera tio n41%

Other pro ces s10%

Do mes tic2%

Qenos Fresh Water UsageQenos Fresh Water UsageQenos Fresh Water Consumption

0

1000

2000

3000

4000

5000

6000

7000

8000

2002 2003 2004 2005 2006 2007

ML/

year

Botany Altona

Key Drivers for Water SustainabilityKey Drivers for Water SustainabilityCost reduction

• Initial driver in 2002 was cost reduction – eg. Altona 4GL/yr water plus 1.7GL/yr trade waste costing $3.6M/yr

Environmental – resource efficiency

• Late 2002, first wave of restrictions in Victoria – as a major water user, Qenos must be able to make a significant contribution to water savings

• 2006/7 drought – lowest inflows to reservoirs, worsening supply situation

Social Impact

• Stage 3 water restrictions affecting domestic customers

• Perception that Industry is a large “water waster” and not sharing the burden

• Acknowledging public expectations of large water users

Key Drivers for Water SustainabilityKey Drivers for Water SustainabilityBusiness Security

• Risk of insufficient water supply available to meet business needs

eg. Early 2007, SE QLD businesses put on restricted allocations

“Water can no longer be taken for granted in business” – Ross McCann, Qenos CEO

To secure the business’s future water needs, must minimise the reliance on drinking water supply

Pathways for ReductionPathways for Reduction

• Conservation- Water efficiency through process improvements,

reduce or eliminate wastage, etc.

• Re-use- On-site treatment and re-use of wastewater

• Substitution- Alternate water supply opportunities

Water StrategyWater Strategy• Driven by CEO and Qenos Executive Team

• Established Water Secretariat, reporting to Executive

• Developed action plans for reduction activities, and formally steward progress

• Promote uses of Qenos end products and their application in water savings (eg. Plastic water tanks, PE pipes, etc.)

• Communicate developments to internal and external stakeholders

• Proactive participation in future water direction forums

Stakeholder RelationshipsStakeholder Relationships• To ensure a successful program, Qenos regularly engages with the

following stakeholders:- Employees

- City West Water

- EPA

- Victorian Government, DSE, Minister for Water

- Industry groups, eg. PACIA, AiGroup

- Local community

• Consider input from all parties to ensure the best decisions andoutcomes

• Open, co-operative, partnership approach ensures maximum support, and potential for co-funding opportunities

Altona ProgramAltona Program

Then – 2002: 4000 ML Now – 2006/7: 2600 ML• Achieved through conservation/efficiency and re-use projects

• Currently working opportunities for internal treatment and re-use of up to 600 ML/year (supported by Government funding)

• Natural alternate sources were not practical

• Best opportunity is a recycled water supply from CWW’s nearby Altona Treatment Plant (ATP), which treats domestic waste water

This still leaves a net requirement of about 2 GL/year to be sourced externally – consider alternate supply options

City West WaterCity West Water• Need to achieve targets set by Vic Government for

water substitution through recycled water use

• CWW study identified opportunity for customers in the Altona Industrial Precinct to re-use suitably treated water from Western Treatment Plant (WTP) and ATP

• Salt reduction necessary to meet customer water quality requirements

• Determined best approach was to deliver the project through two stages:

- Stage 1 – ATP supply to local Industry

- Stage 2 – WTP supply to Industry and Residential

Qenos Qenos –– CWW RelationshipCWW Relationship• Very close working relationship on water supply and

trade waste issues

• Partnership approach with multi-level engagement throughout both organisations

• Demonstrated flexibility

• Early (2002/3) informal conversations about potential for recycled water supply from ATP to Qenos, water quality (mainly high TDS levels) was main obstacle

• Qenos re-approached CWW early 2007, about the same time as CWW determined that a supply from ATP to Industry was feasible

Do we have a Project?Do we have a Project?• Both parties had strong interest in establishing a recycled

water supply from ATP to Qenos

• Compatibility? The key issues were volume and quality

Volume• Available from ATP – 2000 ML/year

• Required by Qenos – about 2000 ML/year

Quality• Required: fit for human contact but not consumption, low

salt, potable equivalent, for use in cooling towers, boiler feed (after demin), general plant process use and firewater

• Proposed – class A recycled water, desalinated by RO, and stabilised

Closing the DealClosing the Deal• Volume and quality match

• Close proximity, cost effective

• Support from Victorian Government

• Project looks good!

• MoU signed by CWW and Qenos CEO’s- Critical for CWW’s business case to DSE/DTF

- Business Case was submitted in May 2007

• CWW and Qenos progressing details- Water quality after RO treatment step – modelling results

- Stabilisation method

- Piping routes and connection points

Altona Industrial Project

Stage 1

•Supply approx 2,000ML/yr of Class A recycled water to Qenos from CWW’s Altona Treatment Plant

•$5M funding announced in recent State Government budget

•Functional Design commenced

•Planned to supply early 2009

•Water quality- critical parameter TDS approx 75mg/L

At the Qenos end…At the Qenos end…Potable Water

Admin Areas

Safety Showers

Recycled water from ATP

Back-up

Cooling Towers

Boilers (via Demin)

Process Water Header

Firewater

And at our Botany plant…And at our Botany plant…• Also switching to a recycled water supply

• Orica’s Groundwater Treatment Plant (GTP) includes a reverse osmosis step and produces near pure water

• Qenos has built new water delivery infrastructure and is now taking treated water from the GTP into several cooling towers and the demineralisation plants

• Ramping up the substitution rate, currently at about 600 ML/year

• Up to 2000 ML/year available, looking to expand output, and produce a stream of stabilised water

SummarySummary• Water conservation is “good business”

- At home

- Corporately

• Energise your employees

• Engage your water retailer as an integral business partner, not just a supplier

• Consider all options and periodically review. Viability can be contingent on timing

• Network formally and informally

• Be flexible and prepared to move quickly