1. © 2013 Queensland Urban Utilities 1 COMMERCIAL IN CONFIDENCE QUU reference TEM142 Waste to Resource Picture Source: Waste streams to value streams-Resource recovery factories-the new paradigm for wastewater. Art Umble, MWH Global, January 2013

2. © 2013 Queensland Urban Utilities 2 COMMERCIAL IN CONFIDENCE QUU reference TEM142 2 2 SeqWater Responsible for catchment management, storage and treatment of drinking water Supplies manufactured water from Gold Coast Desalination Plant and Western Corridor Recycled Water Queensland Urban Utilities Brisbane, Ipswich, Lockyer Valley, Scenic Rim, Somerset UnityWater Moreton Bay, Sunshine Coast SEQ Water Grid Manager Manages the Water Grid; purchases water from the bulk water authorities and sells treated water to the retail-distribution authorities Local Government owned/ Statutory Authorities State Government owned Statutory Authorities Allconnex ? Council Owned Gold Coast, Logan, Redland Our Operating Environment

3. © 2013 Queensland Urban Utilities 3 COMMERCIAL IN CONFIDENCE QUU reference TEM142 Queensland Urban Utilities Unitywater Council owned Our Service Area

4. © 2013 Queensland Urban Utilities 4 COMMERCIAL IN CONFIDENCE QUU reference TEM142 4 Our Assets 1.3 million residents 132,000ML water per year 41 water pump stations 37,000 commercial customers 125 water reservoirs 516,000 residential customers 27 wastewater treatment plants 334 sewer pump stations $4.5 Billion Infrastructure Assets 550,000 connections

5. © 2013 Queensland Urban Utilities 5 COMMERCIAL IN CONFIDENCE QUU reference TEM142 Drivers Rising costs of providing water and sewerage services Providing capital at affordable cost to meet long term population growth Increasing cost of chemicals and power cost Unsustainable regulation Increasing scarcity of natural resources Technological advancements Current and emerging themes and challenges Changing customer expectations

6. © 2013 Queensland Urban Utilities 6 COMMERCIAL IN CONFIDENCE QUU reference TEM142 Today Potable water Sewage Recycled Water Discharge Power Chemicals

7. © 2013 Queensland Urban Utilities 7 COMMERCIAL IN CONFIDENCE QUU reference TEM142 Change to Value Streams Potable water Sewage Discharge Chemicals Recycled Water Power

8. © 2013 Queensland Urban Utilities 8 COMMERCIAL IN CONFIDENCE QUU reference TEM142 Case Study Biosolids Management

9. © 2013 Queensland Urban Utilities 9 COMMERCIAL IN CONFIDENCE QUU reference TEM142 Current Biosolids Management Practices QUU produces 150 000 wet tonnes of biosolids per year from our 28 STPs Biosolids handling costs QUU ~$10Million / Year Variety of approaches for biosolids handling STP treatment processes vary from very low tech to more complex Far-field agricultural land application Gibson Island STP

10. © 2013 Queensland Urban Utilities 10 COMMERCIAL IN CONFIDENCE QUU reference TEM142 Biosolids Road Map Anaerobic digestion Import facility Enhanced digestion Drying (thermal/solar) Side stream Treatment ↑biogas ↓volume ↑biogas ↓volume ↑biogas ↓volume Increase Biogas Production Reduce Volume Biosolids Produced

11. © 2013 Queensland Urban Utilities 11 COMMERCIAL IN CONFIDENCE QUU reference TEM142 Benefits to QUU Waste to Resource as an alternative approach to sewage management can enable QUU to: Reduce costs through reduced energy purchases Increase revenue through the sale of energy Maximise the value of our traditional waste products Diversification of sewage management:  reduce our risk through diversification of outputs  lower our overall cost to service through low energy technology and new revenue opportunities

12. © 2013 Queensland Urban Utilities 12 COMMERCIAL IN CONFIDENCE QUU reference TEM142 Benefits to QUU Cont’d Maximise whole of catchment environmental benefits at least cost to society »Comply with licence conditions in a cost effective manner, by reducing loading to waterways »Enable use of our STPs as community assets for recreation and amenity »Further reduce our Carbon footprint and greenhouse gas emissions » Potential for customers, shareholders and the community to benefit

13. © 2013 Queensland Urban Utilities 13 COMMERCIAL IN CONFIDENCE QUU reference TEM142 Sustainable Sewage Treatment Principles Sustainable sewage treatment principles Waste to resource opportunities Minimise carbon footprint and emissions Lowering the reliance on the grid supplied energy Provider of beneficial Products and Service Create customised recovered products for local end use Responsible Community PartnerCreate synergies for mutual benefits Environment and Public HealthLocal solutions, linked to greater benefits, minimising environmental and public health risks Minimising Customer and Community Cost Fit for purpose outcomes that are affordable and at the right time

14. © 2013 Queensland Urban Utilities 14 COMMERCIAL IN CONFIDENCE QUU reference TEM142 QUU Planned Initiatives Waste to Energy: Co-digestion from High strength non sewerable organic waste to generate electricity Waste to Fertiliser: Assessment of Struvite recovery and reuse Optimisation Initiatives: Optimising STPs to reduce energy demand, improve self-energy generation and improved biosolids handling; Maximising material reuse, such as providing recycled water to customers; Minimising waste through process optimisation and energy recovery initiatives. All initiatives will be subjected to standard cost benefit analysis

15. © 2013 Queensland Urban Utilities 15 COMMERCIAL IN CONFIDENCE QUU reference TEM142 QUU Strategic approach Strategies/Plans ImplementingPlanning Long term liveability outcomes 0-5 years5-10 years10+years QUU Renewable energy plan QUU Biosolids strategy QUU Environmental resilience Plan QUU Energy Reduction plan BCC Alternate Waste Management treatment methodologies QLD 30 year Water strategy Small Communities Plan QUU Master Plans Research and Development Reduce costsIncrease revenueContribute to Liveability

16. © 2013 Queensland Urban Utilities 16 COMMERCIAL IN CONFIDENCE QUU reference TEM142 Customer Engagement Improved customer understanding through customer segmentation:  Collaboration with larger commercial customers i.e. waste streams  Collaboration with trade waste customers  Identification of ‘industrial symbiosis’ opportunities  Partnerships with like-minded organisations and associations  Sharing of knowledge (innovation) with customer base and stakeholders Keys to success:  Collaboration and partnership to achieve shared value creation  The need for a ‘driving force’ behind initiatives (and of course funding)

17. © 2013 Queensland Urban Utilities 17 COMMERCIAL IN CONFIDENCE QUU reference TEM142 Research & Development now – 30 years 5-10 years 1-5 years 0 -12 months Technology/knowledge adoption Collaborative /partnering solutions R&D pilot and trials Current research projects National & International scanning Blue sky applications Addressing knowledge/capability gaps Framework Staircase Utility of the future

18. © 2013 Queensland Urban Utilities 18 COMMERCIAL IN CONFIDENCE QUU reference TEM142 INNOVATION INNOVATIVE CULTURE PURSUIT OF INNOVATION WE NEED TO IMPROVE R&D CAPABILITY - Lobby regulators to relax licences & enable safe environment to test - Appropriate funding mechanisms to incentivise collaborative R&D

19. © 2013 Queensland Urban Utilities 19 COMMERCIAL IN CONFIDENCE QUU reference TEM142 Biosolids Strategy Recycled Water Management Corporate Plan ? ? Innovation Research and Development Energy Management Trade Waste Management ? Renewable Energy Co-generation ? Nutrient Offsets program Our Journey…… Business Sustainability Enterprise Excellence Program