sustainable water use and infrastructure
DESCRIPTION
This presentation was originally given by G.G. Pique, president and CEO of Energy Recovery Inc, at the Green California Summit on March 17, 2010. It discusses increasing global and domestic water scarcity as one of the most significant issues facing mandkind today. It also offers desalination as a viable, long-term solution thanks to technology innovations such as the Energy Recovery PX device that dramatically reduces the energy consumption and cost of desalination.TRANSCRIPT
1 CONFIDENTIAL
Sustainable Water Use and Infrastructure for the 21st Century
Green California Summit 2010
G.G. Pique, President and CEO
17 March 2010
Sustainable Water Use and Infrastructure for the 21st Century
Green California Summit 2010
G.G. Pique, President and CEO
17 March 2010
2 CONFIDENTIAL
Agenda
Energy Savings Around the World
Water Scarcity
Desalination as a Solution
Energy Recovery Technologies
3 CONFIDENTIAL
The severely dammed Ziz River, Algeria
Lake Tiberius, Israel (Sea of Galilee, Jordan)
Access to Sustainable, Fresh Water is Increasingly Scarce
• Climate change is causing widespread drought, compounded by population growth and pollution
• One child dies every 15 seconds due to water sanitation issues
Colorado River Basin
4 CONFIDENTIAL
TheWorldwide
Thirst for
Water is
Unquenchable
5 CONFIDENTIAL
• Water consumption outgrowing world population (9 billion people by 2050)
• Fast growing agricultural demand (crops, livestock and biofuels)
• 1 in 5 people lack access to safe drinking water –1.1 billion people
Worldwide Thirst for Water is Unquenchable
200
400
600
800
1000
1905 1925 1955 1975 1995 2015
Inde
x: 1
905
= 10
0
PopulationWater Withdrawals
Source: GWI, IDA
6 CONFIDENTIAL
Approximately 1 billion people worldwide, lack access to safe water supplies…
7 CONFIDENTIAL
Most of these people are in the developing world, where 98% of water-related deaths occur…
8 CONFIDENTIAL
Are We Safe in California?
The rains are coming with this next El Niño.
Right?
9 CONFIDENTIAL
Local Water Trends – Northern CA Sierra Precipitation
19231923
19761976
Long Term AverageLong Term Average
Wint
er 19
82--L
ast t
ime C
olora
do R
iver f
lowed
to th
e Sea
of C
ortez19231923
19761976
Long Term AverageLong Term Average
Wint
er 19
82--L
ast t
ime C
olora
do R
iver f
lowed
to th
e Sea
of C
ortez
Source: CA Dept of Water Resources(as of 3/15/2010)
2010 El Nino
2010 El Nino
10 CONFIDENTIAL
20+ Million Population Increase (1980-2010) Draining Colorado Basin Dry
http://www.usbr.gov/lc/region/g4000/hourly/mead-elv.html
11 CONFIDENTIAL
The cost of municipal water is exploding in stressed areas
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
* Water costs for San Diego, Monterey, Perth, Sydney, Barcelona M
unic
ipal
Wat
er C
ost*
$/m
3
1972 1982 1992 2002 2010
**February 2010, Monterey CA $7/m3
12 CONFIDENTIAL
• Reduces energy consumption by ~ 60%
• PX Pressure Exchanger™technology is up to 98% efficient
Low pressureseawater enters
the plant
High pressurepump flow 40%
Membrane
Highpressure
seawater
High pressureseawater flow 60%
Low pressurefresh water exits the plant 40%
High pressure reject streamflow 60%
Low pressure reject stream
Energy Efficiency Enabling Technology – ERI’s PX™ Device
13 CONFIDENTIAL
Unique Technology and Elegant Design
• Only one moving part
• Engineered ceramics
− Tremendous durability
− No corrosion
• Highest efficiency
• No scheduled maintenance
• Low life-cycle costs
• Minimal footprint
14 CONFIDENTIAL
Desalination—Affordable Solution
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00SteamElec. PowerMaintenanceCapex charges
* Water costs for San Diego, Monterey, Perth, Sydney, Barcelona
1972Thermal
1982SWRO
1992SWRO
2002SWRO
2010SWRO
Mun
icip
al W
ater
Cos
t*
$/m
3
15 CONFIDENTIAL
Seawater Reverse Osmosis (SWRO) is a Sustainable Solution
Desalination Energy Costs
Utilization ofPX Technology
10
8
6
4
2
01980 1990 2000 2001 2007
20 yearsDOWN 50%7 years
DOWN 61%
KW
h/m
3
SWRO Capacity
Sources: (1) Affordable Desalination Collaboration, Management estimates, GWI and IDA
2.5
2.0
1.5
1.0
.5
02002 2003 2004 2005 2006 2007
65 MGD
281 MGD
312 MGD
418 MGD
454 MGD
584 MGD
Cap
acity
(m3 /
d) (M
illio
ns)
Annual Installed SWRO Capacity
• Growing at 55% per year since 2002
• New desalcapacity pipeline of > 22 MM m3/day by 2012
• Lower SWRO energy consumption leads to increased desal capacity
• SWRO offers sustainable, secure supply of water ~$0.70/m3
16 CONFIDENTIAL
Capital Expense43%
Capital Expense43%
Operating Expense57%
Operating Expense57%
Desalination Plant Revenue Model–Privatization M3 water rate
ASSUMPTIONSPower Cost USD/kWh 0.09Debt Equity Ratio 80/20Debt Interest Rate 8%Equity Return on Inv 18%
Source: Perth Seawater Desalination Plant, 2008
Zero Greenhouse Gas Emissions
17 CONFIDENTIAL 17CONFIDENTIAL
Global Footprint — Sales, Service & Installations Global Footprint — Sales, Service & Installations
6,300,000 m3/day6,300,000 m3/day
890 MW of Energy890 MW of Energy
Sales OfficesSales Offices
PXTM Device InstallationsPXTM Device Installations
Sunrise, FL
HeadquartersSan LeandroCalifornia
Madrid, Spain
Dubai, UAE Shanghai, China
4.7 million tons of CO2 savings4.7 million tons of CO2 savingsNew Boston, MI
18 CONFIDENTIAL
Market Opportunities for Energy Recovery Devices
• SWRO and Brackish Desalination− Growth in these established markets growing on a global scale− US Capacity – More than 3 million m3/day ~ 30% global market
• Osmotic Power− Nascent market using ERDs in renewable energy generation− First pilot plant in Tofte, Norway, run by Statkraft− Energy Recovery devices ensure the net-positive production of
electricity “Osmotic power is clean, renewable energy, with a global potential of 1600 to 1700 TWh – equal to China’s total electricity consumption in 2002.”
- Statkraft CEO, Bård Mikkelsen
19 CONFIDENTIAL
Big Water Factories
Barcelona, AlgeriaSWRO Desalination Plant –
200,000 m3/day (each)
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Barcelona (Spain) 200,000 m3/day (53 MGD)
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Al Hamma (Algeria) 200,000 m3/day (53 MGD)
22 CONFIDENTIAL
Large and Medium Desal Project Builders
23 CONFIDENTIAL
Other Opportunities
24 CONFIDENTIAL
Modular, Portable Solutions for Smaller Communities
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Energy Recovery Inc
HEADQUARTERS/CERAMICSSan Leandro (San Francisco),
California USA
REGIONAL OFFICES Spain, China, Florida, UAE
PUMP ENGINEERING (New Boston) Michigan
USA
27 CONFIDENTIAL