1. 1 Impact of Membrane Technology in Southern California Craig R. Bartels, PhD Hydranautics

2. 2 Founded in 1963, RO since 1970Founded in 1963, RO since 1970 Purchased by Nitto Denko 1987Purchased by Nitto Denko 1987 Floor Space 160,000 ft 2Floor Space 160,000 ft 2 16,000 m 2 Facility 14 acresFacility 14 acres Employees ~430Employees ~430 2/ 15

3. 3 R&D / QA Laboratories Corporate Headquarters in Oceanside, CA Manufacturing Administration / Logistics

4. 4 Global Customer Support Worldwide 3 Manufacturing facilities ensure prompt deliveries. UAE Algeria Shanghai

5. 5 International Presence 5 Seawater RO Wastewater RO

6. 6 Desalination Growth: Installed Capacity, 1980 – 2010 (cumulative) 1,800,000 8x40” Spiral Elements Typical Life: 3-6 years

7. 7 Growth of the RO Business in Southern California Region Saline Groundwater Treatment for Drinking Water Wastewater Treatment for Industrial Reuse Wastewater Treatment for High Purity Water in the Power Industry Treatment of Colored Water by NF for Potable Use Treatment of Wastewater for Recycling Treatment of Wastewater for Agricultural and Golf Courses Treatment of River Water for Beverage Industry Wastewater Treatment for Indirect Potable Reuse Seawater Water Treatment for Potable Water

8. 8 Membrane Treatment Plants in the San Diego Area Courtesy Google Maps 2012 SWEETWATER BWRO NORTH CITY WWRO *CARLSBAD SWRO MISSION BASIN BWRO STONE BREWERY MBR/RO CARLSBAD WWRO PALOMAR ENERGY WWRO ELECTRONICS CO WWRO HYDRANAUTICS SEAWATER WASTEWATER BRACKISH WATER FUTURE

9. 9 Northern San Diego, Orange & LA Counties Courtesy Google Maps 2012 INDUSTRIAL PLANT BWRO CAMP PENDLETON BWRO IRVINE RANCH GWRO *HUNTINGTON BEACH SWRO ORANGE COUNTY WWRO INDUSTRIAL BWRO WEST BASIN SWRO & WWRO REFINERY BWRO HYDRANAUTICS SEAWATER WASTEWATER BRACKISH WATER FUTURE *DANA POINTSWRO CATALINA ISL SWRO

10. 10 Sources of Water for Orange County Groundwater (OCWD) provides up to 66% of the water used in North and Central Orange County –Groundwater is pumped from wells to producers (Cities and Agencies) –Groundwater basin is recharged by the Santa Ana River, rain water, imported water and recycled water

11. 11 72 MGD OCWD WWTP for IPR and Seawater Intrusion Barrier 72 mgd of treated water 14 Trains + 1 Standby 15700 spiral wound elements 85% Recovery of wastewater

12. 12 Seawater Pilot – Encina Power Station TDS - 33 to 34 ppt Turbidity – 1 to 3 (spikes to 24 NTU) Seawater Temp – 8 to 25 C 50 mgd RO Facility

13. 13 Encina Seawater RO Pilot Testing 2 pressure vessels in series 4 elements / vessel Permeate flow = 18-22 gpm Flux = 8 – 10 gfd Recovery = 50% Feed pressure = 803 psi at 26C Perm TDS = 165 ppm Perm Boron = 0.74 ppm at pH 7.6 Feed pressure = 860 psi at 26C Perm TDS = 288 ppm Perm Boron = 1.5 ppm at pH 7.6 2003 Saving 2300 kWhr per day 2010

14. 14 Mission Basin Desalter in Oceanside Treats brackish well water and produces 6.4 mgd of high quality drinking water Supplies 15% of the Oceanside water demand Water Quality: Na (ppm ) Ca (ppm) Mg (ppm) Hard- ness Fe (ppm) Cl (ppm) SO 4 (ppm) Alk Well Water Quality25320975.08521.03471408277 RO Product Quality30.51.040.2673.700.01139.21.5110

15. 15 Treatment of Groundwater for use in Bottling Industry * Largest soft drink bottling facility in the United States. * Source = City well water Dissolved Salts = 500+ ppm Chloride = 86 ppm Alkl = 170 ppm Ca CO3 *Objectives Achieve less than 500 ppm TDS in product Minimize chemical consumption Discharge waste streams with < 250 ppm Cl Remove possible organic contaminants Maintain chlorine residual 15

16. 16 Irvine Ranch Colored Water Treatment Goal – remove color, minimize chemical use, >94% water recovery Colored Water Ground Water 0 1000’ 2000’ 3000’ 0 5 10 15 20 Coast Inland Wells Main Aquifer Deep Aquifer Depth FeedwaterConcentrate

17. 17 Success of Irvine Ranch DATS Project PROJECT GOALS Low Colored Water: Color from 265 CU to <5 CU Better Quality (TDS of 300 mg/L) 7 million gal/day since 2002 Cheaper than imported water PROJECT COSTS & PAYBACK Well Drilling $2.8 million Treatment Plant $13.2 million Total $16.0 million Annual Savings $2.6 million/yr Payback 8.0 years Savings $9000/day

18. 18 Wastewater Recycling at Industrial Plant Located in Escondido, California 8500 sq.ft restaurant and 1 acre beer garden with on site brewery One of the fastest growing breweries in America over the last 10 years Have one of largest rooftop solar panel arrays in California BOD and TSS limits enforced by City of Escondido required them to build a treatment plant on site

19. 19 MBR / RO System Solids and BOD levels undetectable after RO Reduced wastewater discharge from 25,000 gpd to 10,000 gpd 30,000 gpd reused in plant Cooling tower make-up Boiler make-up Centrifuge, fermentation & storage tank rinses Floor wash downs Bottle and keg rinses MBR Feed MBR Permeate RO Permeate

20. 20 Bottom Line Saved $442,000 in hauling fees Saved $114,000 in chemical costs (polymer) Saved $34,000 in water usage fees from water re-use –11 MG/year normally taken from City water supply not needed Undisclosed amount in fines from City Approx. $600,000/year total savings in operating costs

21. 21 Conclusions Membrane technology is critical technology for water sustainability in Southern CA The growth of seawater desalting and wastewater reclamation will be essential for further commercial growth in our region Support for and involvement in local projects is strengthens provides jobs Maintaining state-of-the-art capability is key to further grow our export business

22. 22