YOUR WATER PARTNERS Choosing the Best Desalination Technology for your Project Tomer Efrat | October 2015

Who We Are Technology leaders in the water treatment industry Named one of the 50 smartest companies in the world by the MIT Technology Review in 2015 Unrivalled experience. More than 400 installed units in over 40 countries A large and growing patent portfolio Internationally recognized 400 employees Offices in Israel, China, India, USA and Chile Established in 1965 Ownership: ICL and Delek Groups

Main References Municipalities Mines Energy Oil & Gas Larnaca, Cyprus Sorek, Israel Hadera, Israel Ashkelon, Israel Carlsbad, USA Las Palmas, Spain Mines Sino Iron, Cape Preston, Australia AngloGold Ashanti, South Africa Enersur, Peru Energy SDIC Tianjin, China NPCIL, India Endesa, Spain CFE, Mexico PPC, Greece AES, Chile Tacoa, Venezuela Kazatomprom, Kazakhstan Tutuka, South Africa Oil & Gas Reliance Gujarat, India Essar, India Wintershall, Germany Sarlux, Italy

Brief Overview of the Technologies Reverse Osmosis (RO) Multi-effect Distillation (MED) Mechanical Vapor Compression (MVC) Hadera, Israel SWRO, 456,000 m3/day Gujarat Reliance, India MED, 160,000 m3/day Nueva Ventanas, Chile MVC, 2,400 m3/day

RO Process Coagulant Acid Chlorine Energy Recovery System Dechlorination Coagulant Acid Chlorine Chemical adjustment Energy Recovery System Seawater Intake Static mixer Gravitational sand filters Clear water pump Seawater feed pump Fine filtration Micronic filters High pressure pumps Reverse Osmosis module Outfall to sea Antiscalant Post-treatment Addition of chemicals to adjust the chemistry of the final product Product tank Product pump Chlorination Desalinated potable water Air blower Backwash pump Backwash tank

Horizontal Falling Film MED

Horizontal Falling Film MVC Evaporator Brine Feed Distillate Heat Exchangers

Applicability to Seawater Desalination

Applicability to Industrial Applications

Membrane Desalination IDE’s Offering Thermal Desalination Multi-effect Distillation (MED) Industrial and Potable water : 1,000 - 30,000 m3/day per unit Site conditions Mechanical Vapor Compression (MVC) Industrial water : 250 - 3,000 m3/day per unit Membrane Desalination Large Scale Reverse Osmosis (RO) Potable and Municipal water : 20,000 m3/day and up Modular Reverse Osmosis (RO) Potable and Municipal water : 500 ~ 20,000 m3/day

Technology Selection Criteria Feedwater conditions Salinity TSS, turbidity Contamination, COD, TOC Temperature Product water Drinking/industrial/boiler feed quality Capacity Energy sources Steam / waste heat Electricity Energy costs Ambient conditions Temperature Site conditions Footprint available Budget CAPEX OPEX Robustness Reliability Availability

Comparison of Selected Desalination Processes Feedwater conditions SWRO Thermal MED TVC-MED MVC Minimum Intake Requirements Deep water or beach wells Shallow water Tolerance to Changing Seawater Composition and Pollution Low High Requirement for Robust Pretreatment (in case of contaminated seawater) Low-Medium

Comparison of Selected Desalination Processes Feedwater conditions (Continued) SWRO Thermal MED TVC-MED MVC Chemical and Antiscalant Consumption Medium Low Water Quality Requirements after Pretreatment 3–4 SDI 10 ppm TSS Impact of High / Low Seawater Temperature on CAPEX Significant Minimal Minimal, sometimes even positive

Comparison of Selected Desalination Processes Product water SWRO Thermal MED TVC-MED MVC Common Applications Municipal/drinking water Process water/boiler feed water Recommended Maximal Unit Size (m3/day) 25,000 per train 20,000 35,000 3,000 Product Quality Received (TDS) 1st pass: 300 ppm 2nd pass: 5 ppm <5 ppm Possible Product Recovery 45%-50% 35%-50% 40%-45% Boron Rejection Requirements Requires polishing stage None

Comparison of Selected Desalination Processes Energy Sources SWRO Thermal MED TVC-MED MVC Electricity consumption 3.3–4.2 kWh/m3 1.0–1.4 kWh/m3 8.0–10.0 kWh/m3 Minimal Motive steam pressure N/A 0.35 ata 1.2 ata Possible/achievable GOR 10–12 14–15 Ability to utilize alternative energy sources Medium Low

Comparison of Selected Desalination Processes Site conditions SWRO Thermal MED TVC-MED MVC Minimum Intake Requirements Deep water or beach wells Shallow water Requirement for Robust Pretreatment (in case of contaminated seawater) High Low-Medium Footprint Requirements Low-Medium* Medium Tolerance to Site Configuration/Size * Depending on the MED GOR

Comparison of Selected Desalination Processes Budget SWRO Thermal MED TVC-MED MVC Electricity Consumption 3.3–4.2 kWh/m3 1.0–1.4 kWh/m3 8.0–10.0 kWh/m3 Motive Steam Pressure (min) N/A 0.35 ata 2.2–2.5 ata Electric Equivalent for Thermal Energy 4.5 - 5.0 kWh/m3 7.0 - 8.0 kWh/m3 Equivalent Thermal Energy Cost Relative to Electricity Cost* 40% Total Equivalent Energy Consumption/Normalized to Actual Electricity Cost 2.8–3.4 kWh/m3 3.8–4.6 kWh/m3

Comparison of Selected Desalination Processes Budget SWRO Thermal MED TVC-MED MVC Specific Capital Cost (Based on GWI Reports) 600–1,100 USD/m3/day 1,000–1,500 USD/m3/day 800–1,500 USD/m3/day 1,500–3,000 USD/m3/day Possible Plant Modularity High Medium-Low Medium Fully Automatic and Unattended Operation Possible, but risky Possible Tolerance to Operator Faults Low Medium-High Impact of the Plant Location Significant Moderate Impact of Manpower Costs (installation and operation)

Comparison of Selected Desalination Processes Budget (Continued) SWRO Thermal MED TVC-MED MVC CAPEX / OPEX Flexibility Low High Medium-Low Effect of Steam Cost on Total Water Cost None Requirements for Installation inside Building Chemical and Antiscalant consumption Medium Maintenance Requirements

Comparison of Selected Desalination Processes Budget (Continued) SWRO Thermal MED TVC-MED MVC Spare Parts or Requirements for Replacement Parts Low-Medium Low Spare Parts (% of equipment/year) 1.5–2 0.5–1 <1 Civil Works Maintenance (% year) 0.5 N/A Periodic Cleaning (months) 3–12 18–24 Operational Skilled Manpower Requirements High Plant Life Expectancy 15–25 years 25–30 years

Comparison of Selected Desalination Processes Robustness SWRO Thermal MED TVC-MED MVC Failure Potential if Corrosion Occurs High Low Operational Skilled Manpower Requirements Medium-High Annual Availability (%) 92–96 96–98 Plant Life Expectancy 15–25 years 25–30 years Amount of Process Equipment and Instrumentation Complexity of Plant Maintenance

Desalination Plant Design with Challenging Site Conditions

Tianjin, China (8xMED, 200,000 m3/day)

Aktau, Kazakhstan (2xMED, 12,000 m3/day)

Sorek, Israel (SWRO, 624,000 m3/day)

Cape Preston, Australia (SWRO, 140,000 m3/day)

Carlsbad, USA (SWRO, 204,000 m³/day)

Reliance, India (4xMED, 48,000 m3/day)

Selection Criteria The bottom line is always the Life Cycle Cost: CAPEX vs. OPEX Product quality and application Location of Installation Available energy sources Source water quality and quantity Reliability of water supply

You Can Just Use Both! Technology Selection In some cases – you don’t need to choose… You Can Just Use Both!

Hybrid RO-MED Solutions with a Variety of Energy Sources A Hybrid Desalination Plant combines the use of both thermal and RO technologies in a single plant. The hybrid plant takes the benefits of each technology for achieving the optimized solution and reduced water cost

Hybrid RO-MED Plant Power plant (or any LP Steam source) Electricity to HP pumps MED train RO train Permeate Fresh water Distilled water BP steam Feed RO Brine Condensate

Coal-powered Hybrid RO-MED Plant Coal-fired boiler Steam (40 bara) Turbines + HP pumps Steam (2 bara) Seawater MED train RO train Permeate Fresh water Distilled water Condensate Feed

Combined Cycle Gas Turbine Condensate From MED Steam Turbine MED MED Condensate RO HP Pumps RO Peripheral Pumps

Natural Gas-powered Hybrid RO-MED Plant RO peripherals Natural gas Gas turbines + HP pumps MED train RO train Permeate Distilled water Feed Heat recovery boiler Steam Turbine + generator MED brine Low pressure steam Exhaust gas

To Sum Up… There is no single rule of thumb Focus on the Therefore, it is always recommended to have your water partners guide you towards the optimal solution for you.

Thank You