Saturday, November 10, 2012

EXECUTIVE SUMMARY HIGHLIGHTS: Evaluation of Seawater Desalination Projects, November 2012, DRAFT REPORT, Separation Processes, Inc. (SPI)

ABSRACT: EXECUTIVE SUMMARY HIGHLIGHTS from the DRAFT REPORT Evaluation of Seawater Desalination Projects, November 2012, prepared by Separation Processes, Inc. (SPI) for Monterey Peninsula Regional Water Authority are presented. The DRAFT REPORT evaluated CALIFORNIA AMERICAN WATER (CAL-AM) DEEPWATER DESAL (DWD) and PEOPLES MOSS LANDING (PML) projects. Focusing on ECONOMICS and IMPLEMENTATION CONSIDERATIONS, as follows: “Overall, the final water production costs are fairly equivalent given the overall accuracy of the estimate and degree of project development.” 
Capital and Operating Cost Estimates
CAPITAL COSTS (in Millions 2012 Dollars)
TOTAL
California-American Water            DeepWater Desal             People’s
9 kAFY
5.5 kAFY
9 kAFY
5.5 kAFY
9 kAFY
5.5 kAFY
$207
$175
$160
$134
$190
$161

ANNUAL O&M COSTS (in Millions 2012 Dollars)
TOTAL
California-American Water            DeepWater Desal             People’s        
9 kAFY
5.5 kAFY
9 kAFY
5.5 kAFY
9 kAFY
5.5 kAFY
$11.0
$7.77
$12.3
$9.38
$10.1
$7.06

ANNUAL COST OF WATER (in Millions 2012 Dollars)
Production Cost of Water ($/AF)
California-American Water            DeepWater Desal             People’s 
9 kAFY
5.5 kAFY
9 kAFY
5.5 kAFY
9 kAFY
5.5 kAFY
$2,555
$3,250
$2,385
$3,120
$2,345
$2,980

Desal Plant Startup:
Projected Cal-Am Project Implementation Schedule Quarters 3/4 2017
Projected DWD Project Implementation Schedule Quarters 2/3 2018
Projected PML Project Implementation Schedule Q 2/3 2019

Note: The Technical Advisory Committee of the Monterey Peninsula Regional Water Authority is scheduled to “receive an discuss” Separation Processes, Inc.’s report “Evaluation of Seawater Desalination Projects” at a Special Meeting on Tuesday, November 13, 2012 at 1:00 P.M. at Council Chamber, Few Memorial Hall of Records, Monterey, CA.


HIGHLIGHTS OF EXECUTIVE SUMMARY 

EXECUTIVE SUMMARY

Separation Processes Inc. (SPI) in association with Kris Helm Consulting (KHC) is providing engineering and consulting support to the Monterey Peninsula Regional Water Authority (MPWRA) to assist with the evaluation of three candidate desalination projects on the Monterey Peninsula. This report presents the results of our evaluation of the projects, targeted at replacing supplies currently extracted from the Carmel River but subject to a 1995 order from the State Water Resources Control board to secure an alternate source of supply by December, 2016.

The proposed strategy for meeting the projected annual demand within the California American Water service area of 15,250 acre-feet is a multi-pronged approach including permitted extractions from the Carmel River and Seaside Basin, an aquifer-storage and recovery system, and the existing Sand City desalination plant--totaling 6,250 acre-feet; leaving a 9,000 acre-feet gap in supply. Two alternatives are under consideration to compose this final supply—a 9,000 acre-feet production seawater desalination plant; or a 5,500 acre-feet seawater desalination plant in concert with a groundwater water replenishment project using advanced treated recycled water of 3,500 acre-feet.

This report presents the results of our evaluation of three candidate alternatives for the seawater desalination component of the overall water supply portfolio. California American Water is actively engaged with the California Public Utilities Commission to build a facility and secure the required supply. Two other development groups have proposed alternative projects for consideration—DeepWater Desal, LLC and the People’s Moss Landing Water Desal Project. The three projects were analyzed on functional, performance, economic and implementation grounds in an effort to provide a balanced evaluation for consideration by the MPRWA.

PROJECT SUMMARIES
The three projects are in the conceptual or preliminary stage of development and all three have as their objective to provide California American Water the seawater desal component of the required replacement water supply under State Water Resources Control Board Order No. 95-10.

Project Name Monterey Peninsula Water Supply Project (MPWSP) 

Proponent(s) California American Water (Cal-Am)

Location 46-acre site of vacant, disturbed land west of the MRWPCA Regional Treatment Plant (RTP).

Purpose To supply supplemental desal component of the Monterey Peninsula regional water supply

This project is currently under consideration by the California Public Utilities Commission (CPUC).

Production Volume 5.4 mgd or 9.0 mgd

Project Name DeepWater Desal (DWD) 

Proponent(s) DeepWater Desal, LLC, Dynegy Moss Landing Power Plant, MFJK Partnership of the Capurro Ranch, PV2 Solar, and Ecomert Technologies

Location Capurro Ranch Property, north of /Elkhorn Slough

Purpose Phase 1 to supply supplemental desal component of the Monterey Peninsula regional water supply

Phase 2 to supply northern customers

Production Volume Phase 1: 4.9 mgd or 9.1 mgd Phase 2: 22.0 mgd


Project Name The People’s Moss Landing Water Desal Project (PML) 

Proponent(s) DeSal America, LLC composed of Moss Landing Commercial Park, LLC; and Stanley and Patricia-Vance Lueck

Location Moss Landing Commercial Park

Purpose To supply supplemental desal component of the Monterey Peninsula regional water supply

This project is currently proposed as alternative to the Cal-Am MPWSP.

Production Volume 4.8 mgd or 9.4 mgd

PROJECT FUNCTION
We evaluated the function of each project in terms of project purpose, customers identified, adequacy of treatment approach, residuals handling, feed water characterization, quality of project information, and any omissions or fatal flaws in the information provided.

All three projects have available sites for building the required treatment facilities; and credible seawater intake and brine disposal approaches, though there are substantive differences among them. Cal-Am proposes to use a group of subsurface slant intake wells (up to eight for the maximum capacity plant alternative); DWD proposes a new screened open ocean intake installed at roughly 60-ft of depth; and PML is considering options to use either an existing seawater intake pump station drawing from the Moss Landing Harbor, or potentially a new screened open ocean intake installed coincident with an existing 51-in diameter concrete outfall pipeline owned by the Moss Landing Commercial Park.

Cal-Am and PML propose to serve only the identified demand within the Cal-Am service area at the two plant capacity increments under consideration; while DWD envisions a higher capacity regional project, capable of producing up to 25,000 AFY.

In terms of treatment approach—all three candidate teams propose to use reverse osmosis (RO) as the primary desalination technology. However, both DWD and PML propose a single pass RO system; while Cal-Am has proposed a partial double or two pass system—treating a portion of the product water from the first pass RO system with a second RO system and blending the supplies to form the final treated water. The issue relates to the quality of product water produced, more than treatment function; as either approach is considered functional.

Cal-Am and DWD will require offsite pipelines for feed, product water and brine disposal; while PML proposes to use existing intake and outfall pipelines originating on site; requiring only a product water delivery pipeline.

PROJECT PERFORMANCE
Performance of each proposed system was gauged relative to categories of plant design capacity, targeted product water quality and disinfection strategy.

For plant capacity, we considered the proposed instantaneous design capacity of each treatment facility in comparison to the required annual production increment—either 5,500 AFY or 9,000 AFY. What we found were wide variations—with Cal-Am proposing capacities of 5.4 mgd and 9.0 mgd; DWD of 4.9 mgd and 9.1 mgd; and PML at 4.8 mgd and 9.4 mgd.

The product quality produced by the proposed systems would differ based on the configuration of their proposed RO systems. Cal-Am’s proposed partial two-pass system could likely achieve chloride, boron, and total dissolved solids (TDS) consistent with current Carmel River supplies; but the single pass systems would not. We consider a lower salinity product supply an asset and evaluated all three projects (from an economic perspective) as having partial two-pass RO systems.

ECONOMICS
Capital and Operating Cost Estimates

CAPITAL COSTS (in Millions 2012 Dollars)
TOTAL
California-American Water            DeepWater Desal             People’s
9 kAFY
5.5 kAFY
9 kAFY
5.5 kAFY
9 kAFY
5.5 kAFY
$207
$175
$160
$134
$190
$161

ANNUAL O&M COSTS (in Millions 2012 Dollars)
TOTAL
California-American Water            DeepWater Desal             People’s
9 kAFY
5.5 kAFY
9 kAFY
5.5 kAFY
9 kAFY
5.5 kAFY
$11.0
$7.77
$12.3
$9.38
$10.1
$7.06

ANNUAL COST OF WATER (in Millions 2012 Dollars)
Production Cost of Water ($/AF)
California-American Water            DeepWater Desal             People’s
9 kAFY
5.5 kAFY
9 kAFY
5.5 kAFY
9 kAFY
5.5 kAFY
$2,555
$3,250
$2,385
$3,120
$2,345
$2,980

Overall, the final water production costs are fairly equivalent given the overall accuracy of the estimate and degree of project development. Cal-Am’s capital cost is the highest; owing largely to its high intake system cost. PML is proposing to reuse existing intake infrastructure; while DWD has an unspecified separate business entity which will be funding its intake, outside of the assigned DWD facility budget. Cal-Am’s operating cost is also relatively high, owing in large measure to higher stipulated energy costs than either DWD or PML—roughly $0.13/kW-hr vs. $0.08 kW-hr.

IMPLEMENTATION CONSIDERATIONS
The three projects are at varying states of development in terms of the regulatory permitting process. Cal-Am is further along than either DWD or PML, though DWD has completed or is nearing completion of their initial CEQA compliance documents.

Desal Plant Startup
Projected Cal-Am Project Implementation Schedule Quarters 3/4 2017
Projected DWD Project Implementation Schedule Quarters 2/3 2018
Projected PML Project Implementation Schedule Q 2/3 2019

Evaluation of Seawater Desalination Projects
DRAFT REPORT, November 2012
Prepared by: Separation Processes, Inc

1 comment:

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