Mexico Industrial Water and Wastewater IssuesVincent LencioniWEFTEC, September 2015Chicago, Illinois

Presentation Outline I. Influent and Reuse Focuses

Influent Issues – Prices, Water Quality Issues Reuse Issues – Drivers, Priority Areas

II. General Wastewater Issues Regulations & Standards – General, vs US State Treatment & Water Quality Issues

III. Industrial Wastewater Issues Treatment, Plant # & Types, Priority Sectors,

Opportunities, Mexico Business Tips

I. Industrial Source Water Issues

Major Industrial Water Users Total: 3,338 hectars/m3 55%: Veracruz (VC), QR,

Jalisco, Mexico State Water Source Issues

Surface: BC, VC, Sinaloa, Michoacan, Tamaulipas, Tabasco, Morelos (50/50)

Well Water > 75% states 90% of total industrial use

Quality Concerns: Mg, Ca (hardness), Silica, Salts

In General, with RO systems

Industrial Prices 2009 Domestic and

Industrial Price Info Industrial Well Water

Conagua – 4 zones Well: $.10 to 1.50 US

Surface: $.10 to $1 US Real Water Situation

Well access insufficient Treated Water: Cost to mfg:

$.25, price: $1.50 Municipal – High: $2.25

I. Water Prices, Top 6 Cities

Pesos per m3, 2014 Exchange Rate: 13 Pesos to 1 USD

I. Mexican Domestic & Industrial Water Prices: 2009 vs Today

2009 Average Exchange Rate: 13 pesos to 1 USD

I. Industrial Water Reuse Issues

Types of Reuse For Process: ZLD For Other Uses

Drivers Water Scarcity Water Cost Water Quality Issues

wells, quality needed Conagua restrictions Corporate Culture

Priority Areas Sectors – Petrochem,

Automotive, Paper, Commercial, Metals, F&B, Cooling Towers

Regions – Northern states, some Central states, high water treatment states, industrial areas.

II. General Wastewater Issues

II. Water & Wastewater Regulations Wastewater Regulations

By where water goes: NOM 001: Federal bodies

Rivers, Lakes, Coasts TSS 75, BOD 75

NOM 002: Municipal Sewer/Drainage System

By Reuse Applications NOM 003 = Water Reuse

Indirect: TSS & BOD 30 Direct: TSS & BOD 20

NOM 004 = Sludge/Mud

Fees for wastewater discharge Article 277-B Ley

Federal de Derechos Trimester discharge volumes

x factor according to industrial activity and discharge location.

$.85 to 1.90 per m3 Potable Regulations

NOM 127 Often specified for

reuse project apps TDS = 1000

II. NOM 001: Discharges into Federal Bodies

M.A. = Monthly Average; D.A. = Daily Average(1) Instantaneous(2) Simple sample weighted average(3) Absent as per the Test Method defined in the NMX-AA-006.

II. NOM 001 (continued)

(*) Measured in full.D.A. = Daily Average M.A.= Monthly Average NA = Not applicable(A) (B) and (C): Receiving Body type according to Government Service Charges

Law.

II. Wastewater Standards: II. Wastewater Standards: US vs MexicoUS vs Mexico

Significant differences between systems:Standards Levels & Materials Tested

Basis for Analysis: BOD and TSS Others: Not regularly monitored or required

Labs: Samplying frequencies, sample controlMetering RealitiesViable Regulations & Enforcement

Local vs State vs FederalFines, Civil & Penal Liabilities, Closures

Increasing and improviing but still insufficient

II. State Treatment Good & Bad: % Treatment & Reuse Tendencies

Good: 10 States (> 2/3) 85-100%: Nuevo Leon, Baja

California, Aguascalientes, Nayarit, Tamaulipas

80-65%: Guerrero, Sinaloa, Durango, Chihuahua, BCS

Average (40-65%) 50-65%: SLP, QR, Colima,

Guanajuato, Tlaxcala 40-50%: Coahuila, Puebla,

Queretaro,Jalisco*,Sonora, Veracruz, Oaxaca

Bad: < 30% treatment < 10%: Yucatan, Campeche,

Hidalgo 14% Mexico City* 20-25%: Zacatecas, Tabasco,

Chiapas 25-30% Mexico State,

Michoacah, Morelos New, Large Plants coming

on-line DF/Mexico State (20-40%) Jalisco (27-48%)

III. Industrial Wastewater Issues

III. Industrial Wastewater Treated

Industrial Wastewater Flow - from 64.5 (97) to 190 (2010) to 210m3/s.

Treated Flow - from 5.3 (9% of flow) to 36.7 (19%) to 60.7m3/s (29%)

BOD Treatment: from 8% (97) to 19% (2010) to 13% – Not good sign

III. % Wastewater Treated…..

Past Conagua goals: 2012: 60% total treatment; 2015: 100% water reuse; 2025: all muni/industrial wastewater treated; Current Goals: very general

III.Industrial Plants by State 2010

Focus should begin to switch from refurbishing current to new plants

- Operating Capacity 2010: 50% - Installed 72m3/s; Treated 36.7m3/s

- Operating Capacity 2014: 81% - Installed 75m3/s; Treated 60.7m3/s

III. 2010-2013 State Industrial Plant Evolution & Growth Increases

Plants (up 450) Sonora 210, NL 90,

Campeche 80, Jalisco 35, Guanajuato 90, Puebla 76, Yucatan 50, Tamps 45

Treated Flows (37m3/s) Sonora 9m3/s, Tamps 5m3/s,

BCS 5m3/s, Michoacan 3m3s

7 States = 50% Plants Guanajuato, Mexico, NL,

Puebla, Queretaro, Sonora, Veracruz

Plants Decreases BC 11, SLP 31, Tlax 30 DF from 200 to 5 Mexico from 315 to 241

Treated Flows (m3/s) Puebla, Hidalgo,Mexico

III. Industrial Plants by Type (2010 vs 2013)

Industrial Plants: 2186 vs 2617 (Up 20%) Primary: 731 (33.4%) to 839 (32%) = 21.8m3/s

Adjusting PH levels & removing TSS > .1mm > 50% in Veracruz & Chiapas: Basic Treatment

Secondary: 1193 (54.6%) to 1555 (59.4%) = 34.8m3/s Removing colloidal & dissolved organic materials 57% in 4 states: Mexico, Veracruz, N.L., Hidalgo

Tertiary: 88 (4%) to 74 (2.8%) = 1.2m3/s – Too Low ?????? Removing dissolved materials, metals, reuse driven With renewed reuse focus, #, decrease, flow seem odd

Other: 174 (8%) to 149 (5.7%) = 3m3/s Some if not most probably with some kind of reuse or tertiary-like focus

III. Municipal Plants by Type

2010 Plants - Decreases: Activated Sludge: 46%, Ponds: 24%, Advanced Primary 11%

III. Industrial Sector Priorities Sector Priorities Top Priorities, heaviest polluters

High Frequency & Flow Priorities

1. Food & Beverage – Growth with influent water and wastewater treatment reuse

1. Chemicals / Pharmaceuticals – moderately strong sector with influent water

quality issues and discharge concerns

2. Metalworking / AutomotiveLarge & Growing, Tier 1 & 2 issues, OEM compliant

2. Textile / Clothing / Leather – many medium & small producers who are not compliant

3. Paper - Highly regulated, Improved mfging processes,maintenance tendencies

3. Petroleum / Petrochemical (Pemex) – hope for significant work in wastewater, oil prices and Pemex problems slowing growth

4. Sugar – Requires regular, on-going investments, butspending questionable

4. MicroElectronics – relatively small but growing sector with significant influent water quality and effluent discharge concerns

III. Industrial Wastewater Opportunities

- Industrial – Strength of 2015 Economy - 500,000 mfging companies discharging, 15,000 large companies

- Types of Plants & Technologies – Influent & Effluent- Still conventional demand with strong secondary treatment focuses - Membranes over Conventional: MF & UF growing along with reuse growth

- Commercial & Infrastructure (Wastewater, Reuse, Desal )- Resorts, Residential, Hotels, Restaurants, Golf Courses – 100+ plants year- Real Estate Development has been down, construction bounce back?- Macro Wastewater Treatment and resale: Muni, Industrial parks

- Industry Water Reuse & Savings Emphasis - Reuse: 5 billion m3 a year, 75% muni vs 25% industrial; 10% of wastewater- Industrial water prices rising, access limits in Northern Mexico

- Pre-use/Influent Treatment vs Reuse vs Discharge- Pre-use & Reuse = clearer need/demand; Discharge = enforcement driven

III. Tips for Mexico Opportunities Good Market for Imported, US Goods

Water Sector: 70% Imported, 2/3 from the US Many if not most filtration/membrane needs come from abroad

Selling through local distributors and integrators Importance for relationship sales, service Need for local interaction, supervision, support

Bring financing/credit plan Can enter market without but will struggle vs will thrive with

Identify and follow regional indicators? Problem areas, scarcity, enforcement factors

Key factors in selling filtration systems Pilot systems, pre-chemistry analysis, integrator proactivity Interaction with clients vs local intermediaries defining targets

Contact Information Vince Lencioni, Porex Corporation

Latin America Sales Manager Atizapan, State of Mexico, Mexico T. 011 52 555 378-3890 Vince.lencioni@porex.com

Business Cards: To Receive Presentation