1. Nikolay Voutchkov, PE, BCEE
International Training Program
1-4 February 2011
Lordos Beach Hotel
Larnaca, Cyprus
Day 2: Reverse Osmosis Desalination Systems – Design & Costs
15:30-16:30
Desalination Costs
Nikolay Voutchkov, PE, BCEE
Water Globe Consulting

2. Desalination Project Costs
Key Components and Factors
Construction Costs
O&M Costs
Total Cost of Water Production
Methods to Minimize Costs
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3. Desalination Cost Components
Capital Costs:
Construction (Direct or “Hard”) Capital Costs;
Indirect (“Soft”) Capital Costs.
Operation & Maintenance Costs:
Variable;
Fixed.
Cost of Water:
Annualized Capital Costs;
O&M Costs.
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4. Seawater Desalination Plant – Construction Costs
RO System –
40 % to 60 % of
Construction Costs
Pretreatment –
15% to 20 %
of Construction costs
Discharge – 5 to 15 %
of Construction Costs
Intake – 5 to 20 %
of Construction Costs
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5. Indirect (Soft) Costs – 15 to 50 % of Total Capital Costs
Cost Item
% of Total Capital Costs
Project Engineering
5.0 – 12.5 %
Project Development
2.0 – 10.0 %
Project Financing
3.0 – 17.5 %
Contingency
5.0 – 10.0 %
Total
15 – 50 %
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6. Indirect Capital Cost Comparison
Conventional Water Treatment Plant:
Indirect Costs - 15 to 25 % of Capital Costs;
Seawater Desalination Plant:
Indirect Costs - 15 to 50 % of Capital Costs.
Where Does the Difference Comes from? – Cost of Project Related Risks (Intake and Source Water Quality; Permitting; Technology; Reliability, etc.).
This Difference Helps Understand Why Majority of the Large SRWO Projects Worldwide are Mainly Completed Under BOOT Delivery!
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7. Intake Construction Costs – Key Factors
Very Dependent on Source Water Quality
Usually Between US$50 and 100/m³/day
Beach Well Intakes Usually Less Costly
Horizontal and Slant Wells Comparable to Open Intakes
Infiltration Galleries Often are More Expensive than Open Intakes
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8. Open Intakes Construction Costs
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9. Well Intakes Construction Costs
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10. Pretreatment Construction Costs
Very Dependent on Source Water Quality & Type of Treatment Technologies
Usually Between US$100 and 300/m³/day
High Quality Well Water Sources Require Only Cartridge Filtration (Low Cost Pretreatment)
Single-stage Granular Media Filtration Usually is Less Costly than Membrane Pretreatment
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11. Seawater Pretreatment Construction Costs
SWRO Plant
BWRO Plants
w/ Sallow & Deep Wells
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12. SWRO System Construction Costs
Dependent on Source Water Quality & Target Product Water Quality
Usually Between US$300 and 1,000/m³/day
Single-stage/Single Pass SWRO System is Least Costly
Additional Costs for Two-Pass/Two-Stage RO System May Vary Between 15 and 30 % of the These of Single Pass/Single Stage SWRO System
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13. Costs of Key RO System Components
Construction Cost (US$/item)
8-inch SWRO Membrane Element
US$450 –US$600/element
8-inch SWRO Pressure Vessel
US$4,000 - US$6,000/vessel
RO Train Piping
US$200,000 – US$600,000 /RO Train
RO Train Support Frame
US$150,000-US$400,000/RO Train
RO Train Instrumentation & Controls
US$20,000 – US$90,000/RO Train
High Pressure Pumps
US$150,000 – US$800,000/RO Train
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14. Post-treatment Construction Costs
Dependent on Target Water Quality:
Hardness
Alkalinity pH
Need for Addition of Corrosion Inhibitors
Type of Disinfection
Need for Addition of Fluoride & Magnesium in the Drinking Water
Usually Between US$20 and 50/m³/day
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15. Post-treatment Construction Costs
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16. Concentrate Disposal Construction Costs
Disposal Method
Construction Cost
(US$ Million/ML/d)
New Outfall w/Diffusers
0.50 – 1.50
Power Plant Outfall
0.05 – 0.15
Sanitary Sewer
0.03 – 0.10
WWTP Outfall
0.08 – 0.45
Deep Well Injection
0.65 – 1.65
Evaporation Ponds
0.75 – 2.50
Zero-Liquid Discharge
3.50 – 7.50

17. Key Capital Cost Components – 40,000 m3/day Plant w/ Low-Cost Intake & Outfall
Cost Item
Cost (US$)
% of Total
Intake
2.76 MM
4.8 %
Pretreatment
4.64 MM
8.0 %
RO System Equipment
18.56 MM
32.0 %
Post Treatment
1.16 MM
2.0 %
Concentrate Disposal
1.45 MM
2.5 %
Buildings
1.74 MM
3.0 %
Waste and Solids Handling
0.87 MM
1.5 %
Electrical & Instrumentation
1.30 MM
2.2 %
Other Items
2.90 MM
5.0 %
Total Construction (Direct) Costs
35.38 MM
61 %
Engineering Services
5.80 MM
10.0%
Development, Financing & Contingency
16.82 MM
29 %
TOTAL
$58.0 MM
100 %
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18. Capital Costs and Plant Size
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19. Annual O&M Cost Breakdown
Cost Item
Range
(% of Total O&M Costs)
Variable O&M Costs
50.5 – 85.0%
Fixed O&M Costs
15.0 – 49.5%
Total
100 %
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20. Variable O&M Costs Cost Item (% of Total O&M Costs) Power
35.0 – 58.0 %
Chemicals
5.5 – 9.0 %
Membranes & Cartridges
6.5 – 11.0 %
Waste Stream Disposal
3.5 – 7.0 %
Total
50.5 – 85 %
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21. Fixed O&M Costs Cost Item (% of Total O&M Costs) Labor 4.0 – 11.0 %
Maintenance
3.0 – 13.0 %
Environmental & Performance Monitoring
1.0 – 5.0 %
Indirect O&M Costs
7.0 – 20.5 %
Total
15.0 – 49.5 %
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22. Indirect O&M Costs – 7 to 20.5 % of Total Costs
Administrative Costs;
Operations Insurance;
O&M Reserve Funds Required by Investor (Project Risks);
Contingency;
Staff Training and Professional Development;
Operator Fees.
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23. O&M Costs & Cost of Water 40,000 m3/day Plant w/ Low-Cost Intake & Outfall
Cost Item
Cost (US$/yr)
% of Total
Energy
3.24 MM/yr
55.5 %
Chemicals
0.35 MM/yr
6.0 %
Replacement of RO Membranes & Cartridge Filters
0.62 MM/yr
10.6 %
Waste Stream Disposal
0.26 MM/yr
4.4 %
Total Variable Costs
4.47 MM/yr
76.5 %
Labor
0.33 MM/yr
5.7%
Maintenance
0.38 MM/yr
6.5 %
Environmental & Performance Monitoring
0.09 MM/yr
1.5 %
Other O&M Costs
0.57 MM/yr
9.8 %
Total Fixed Costs
1.37 MM/yr
23.5%
TOTAL ANNUAL O&M COSTS
$5.84 MM/yr
100 %
Annual O&M Costs = US$5.84 MM/(40,000 m³/dayx365 days) = US$0.40/m³
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24. Cost of Water 40,000 m3/day Plant w/ Low-Cost Intake & Outfall
Annual O&M Costs = US$5.84 MM/yr ($0.40/m³)
Capital Costs, Cap = US$58 MM
Capital Cost Recovery Factor,
CRF = [(1+i)ᵐ - 1] / [ix(1+i)ᵐ]
Where: m – period of repayment of capital expenditures; i – interest rate of capital
For example, for m = 20 years & i = 5%
CRF = [(1+0.05)²º - 1] / [0.05 (1+0.05)²º] =
Annualized Capital Costs = Cap/(CRF x Qp x 365 d)
= US$58 MM/( x 40,000m³/d x 365 d) = $0.32/m³
Cost of Water = $ $0.32 = $0.72/m³
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25. Cost Comparison of 100 ML/d SWRO Plant with Conventional and Membrane Pretreatment
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26. Comparison of O&M costs and Costs of Water Production –
100 ML/d SWRO Plant
Conventional Pretreatment
Membrane Pretreatment
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27. Cost of Water Production
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28. Cost of Water of Recent Desalination Projects
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29. Costs of Recent US SWRO Projects
Status
Capital Cost
(US$)
Annual O&M Cost (US$/kgal)
Cost of Water
(US$/kgal)
0.6 MGD
Sand City, CA
In Operation since 2010
US$11.9 MM
US$1.15/kgal
US$2.91/kgal
25 MGD
Tampa Bay, FL
In Operation since 2008
US$138 MM
US$1.54/kgal
US$3.48/kgal
50 MGD
Carlsbad, CA
In Financing
US$350 MM
US$1.75/kgal
US$4.00/kgal
2.5 MGD
Santa Cruz, CA
In Planning
US$59-64 MM
US$3.94/kgal
US$ /kgal
Brownsville Demo Project, TX
US$22.5 MM
US$2.80/kgal
US$4.38/kgal
25 MGD-80 MGD
Coquina Coast, FL
US$180 MM -US$560 MM
US$1.99/kgal
US$4.47/kgal
(US$5.35-US$6.10 w/ conveyance)
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30. Key Factors Affecting Costs
Source Water Quality - TDS, Temperature, Solids, Silt and Organics Content.
Product Water Quality – TDS, Boron, Bromides, Disinfection Compatibility.
Concentrate Disposal Method;
Power Supply & Unit Power Costs;
Project Risk Profile;
Project Delivery Method & Financing;
Other Factors:
Intake and Discharge System Type;
Pretreatment & RO System Design;
Plant Capacity Availability Target.
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31. Source Water Quality & Costs
Water Source
(TDS, ppt /Temperature, ºC)
Construction
Costs
O&M Costs
Cost of Water
Pacific/Atlantic Ocean
(33.5 ppt /18 ºC)
1.00
Caribbean
(36 ppt /26 ºC)
Mediterranean
(38 ppt /24 ºC)
Gulf of Oman/Indian Ocean
(40 ppt /30 ºC)
Red Sea
(41 ppt /28 ºC)
Arabian Gulf
(45 ppt /26 ºC)
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32. Product Water Quality & Costs
Target WQ
Constr.
Costs
O&M Costs
Cost of Water
TDS/Cl = 500/250 mg/L;
Boron = 1 mg/L.
1.0
TDS/Cl = 250/100 mg/L;
Boron = 0.75 mg/L.
TDS/Cl = 100/50 mg/L;
Boron = 0.5 mg/L.
TDS/Cl = 30/10 mg/L;
Boron = 0.3 mg/L.
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33. Key Project Risks and Costs
Permitting Risks – Very High for Large Plants;
Source Water Risks – High for Most Large Plants;
Technology Risks – High, Especially for New Technologies with Limited Track Record;
Operational Risks – High – Experienced Operator Needed;
Desalinated Water Demand Risks – High When Cost of Desalinated Water Significantly Higher than That of Existing Supplies;
Power Supply & Entitlement Risks – Moderate;
Regulatory Risks – Moderate;
Construction Risks – High – Limited Experience;
Financial Risks – High.
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34. Project Financing Alternatives
Government Financing:
Key Advantage - Lowest Cost for the Final User;
Key Disadvantages – Scarce & Limited.
Bonds and Construction Loans:
Key Advantage – Low Cost Funds (3 to 8 % rate);
Key Disadvantages – Limited by the Credit Capacity of the Water Agency & Complex Approval Process.
Private Project Finance:
Key Advantage – Utility Responsible to Pay for Services & Borrowing Capacity Not Impacted;
Key Disadvantages – Usually More Expensive for Small and Low-Risk Projects.
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35. Project Delivery Alternatives
Design-Bid-Build (DBB):
Key Benefit - Utility Owns All Assets;
Key Disadvantages – Utility Takes All Risks and Reduces Borrowing Capacity.
Design-Build-Operate (DBO)/”Alliance”:
Key Benefit – Utility Owns All Assets;
Key Disadvantages – Utility Shares Some Construction & Operations Risks and Reduces Borrowing Capacity.
Build-Own-Operate-Transfer (BOOT):
Key Benefit – Utility Transfers Most Risks to Private Sector and Only Pays for Water it Receives;
Key Disadvantages – Utility Does Not Own the Assets.
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36. Risk Allocation Profiles for BOOT & Alliance (DBO) Project Delivery
Type of Project Risk
BOOT
Alliance/DBO
Permitting
Private
Public
Source Water
Shared
Technology
Operations
Water Demand
Public (Take or Pay – Private Equity at Risk)
Power Supply
Construction
Financial
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37. Worldwide the Lowest Cost of Desalinated Seawater Has Been Delivered
Under BOO/BOOT Contracts!
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38. Largest SWRO Desalination Projects Worldwide
SWRO Plant
Cost of Water
(US$/m³)
Power Use
(kWh/m³)
& TDS
Ashkelon, Israel – 330 ML/d
(Largest in The World) – BOOT
0.53
3.8
(40 ppt)
Point Lisas, Trinidad – 130 ML/d
(Largest in The Americas) - BOOT
0.72
4.8
(38 ppt)
Tuas, Singapore – 136 ML/d
(Largest in Asia) - BOOT
0.48
4.3
(33 ppt)
Barcelona, Spain – 200 ML/d
(Largest in Europe) BD+O
1.16
4.4
Fujariah, UAE – 170 ML/d
(Largest in the Middle East) - BOOT
0.90
4.5
(38.5 ppt)
Sydney, Australia – 250 ML/d
(Largest in Australia) – DBO (Alliance)
2.29
4.2
(36 ppt)
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39. Year 2004/09 The Five Lowest Cost SWRO Project Bids Worldwide
SWRO Plant
Cost of Water
(US$/m³)
Power Use
(kWh/m³)
& TDS
Sorek, Israel – 411 ML/d
BOO (startup – 2014)
0.53
3.7
(40 ppt)
Mactaa, Algeria – 500 ML/d
BOOT (startup – 2013)
0.56
Hadera, Israel – 330 ML/d
BOO/co-located (startup – 2009)
0.60
Cap Djinet, Algeria – 100 ML/d
BOO (startup – 2010)
0.72
4.0
(38 ppt)
Carlsbad, USA – 189 ML/d
BOO co-located (startup – 2012)
0.74
2.9
(33.5 ppt)
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40. What All Recent BOOT Projects Have in Common?
All Yielded the Lowest Costs and Power Use
of Desalinated Water in Their Respective Markets;
Plant Performance & Permitting Risks Reside with the Private Sector;
Debt Repayment is Private Sector Obligation;
Private Sector Only Gets Paid for Delivering Product Desalinated Water;
Public Utility Can Buy Out (Transfer) Project Ownership Once Plant Has Proven Its Long-term Performance.
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41. Ashkelon – Lowest Cost of Water Worldwide – How Did They Do It?
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42. Ashkelon – How Did They Do It?
Low Cost Conventional Pretreatment – Single Stage Dual Media Filters;
Large Size (20-micron) Cartridge Filters;
Three-Center RO Design w/ Pressure Exchangers:
Low Cost Post-Treatment – Calcite Filters & Blending;
Self-Power Generation – 80 MW Gas Generators and Purchase of Rights to Gas Field Use;
Discharge Collocation with Power Plant in Well Mixed Tidally Influenced Zone – No Need for Outfall.
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43. Sydney and Huntington Beach Desal Plant Construction Costs
250 ML/d
Huntington Beach
189 ML/d/(250 ML/d)
US$
Desalination Plant
492
310
(410)
Intake and Outfall
230 16
(21)
Delivery
557
110
(146)
Project Costs
260 61
(81)
Total Capital Costs
1,539
497
(658)
Note: Sydney Costs Source – WDR - July 2007
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44. Perth & Sydney SWRO Plants Cost Breakdowns
Perth
Sydney
Capacity (ML/d)
125
250
Distance from intake (km)
< 1
4.5
Distance to delivery (miles)
26.2
14.3
Total Capital Cost ($M)
$325
$1,539
Total Capital Cost – Desal Plant ($M)
$281
$982
Total Capital Cost - Delivery ($M)
$44
$557
Annualized Capital Cost ($M/yr)
$25
$120
Total Annual O&M Costs ($M/yr)
$17
$46
Annual O&M Cost – Desal Plant ($M/yr)
$16
$42
Annual O&M Cost – Delivery ($M/yr) $1 $4
Cost of Water – Capital Component ($/m3)
$0.70
$1.65
Cost of Water – O&M Component ($/m3)
$0.44
$0.58
Cost of Water – Delivery Component ($/m3)
$0.02
$0.06
Total Water Cost, $/m3
$1.16
$2.29
adapted from Waterlines:NWC Australia

45. Be Careful When Comparing Costs!
Projects Differ By:
Source Water Salinity and Temperature;
Product Water Quality;
Unit Cost of Construction, Labor and Permitting;
Cost of Capital;
Unit Cost of Power;
Source of Equipment Supply;
Project Completion Schedule.
Projects Have to Be Normalized for These and Other Factors for Accurate Comparison.
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46. Typical Cost and Energy Ranges (Medium & Large SWRO Plants)
Classification
Cost of
Water Production
(US$/kgal)
SWRO System Energy Use (US$/kgal)
Low-End Bracket
9.5 – 10.5
Medium Range
3.5 – 5.0
High-End Bracket
12.5 – 14.0
Average
4.0
11.5

47. Common Features of Low-Cost Desalination Projects
Low Cost HDPE Open Intakes or Beach Wells;
Near-Shore/On-Shore Discharges w/o Diffuser Systems or Co-discharge w/ Power Plant of WWTP Outfalls;
Point of Product Water Delivery within 5 Miles of Desalination Plant Site;
RO System Design w/ Feed of Multiple Trains by Common High Pressure Pumps and Energy Recovery Systems;
Turnkey (BOOT, BOO) Method of Project Delivery.

48. Key Reasons for Cost Disparity Between High-End & Low-end Cost Projects (US$2.0 – 3.0 vs. US$ /kgal)
Desalination Site Location (NIMBI vs. Science Driven)
Costly Plants Have Overly Long Product Water Delivery Pipelines
120 MGD Melbourne Plant – Cost of Plant/Delivery + Power Supply Systems =
US$1.7 BB/1.1 BB (50 miles)
66 MGD Sydney SWRO Plant – Cost of Plant/Delivery System
= US$560 MM/US$490 MM (10 miles of underground tunnel under Botany Bay).
Environmental Considerations
Complex Intakes & Diffuser Systems
Phasing Strategy
Intake and Discharge System Capacity;
Pretreatment & RO System Design;
Labor Market Pressures
Method of Project Delivery & Risk Allocation
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49. Where Future Cost Savings Will Come From?
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50. Main Areas Expected to Yield Cost Savings in the Next 5 Years (20 % Cost Reduction Target)
Improvements in Membrane Element Productivity:
- Polymetric Membranes (Incorporation of Nano-particles Into Membrane Polymer Matrix) – CSIRO & UCLA;
- Larger Membrane RO Elements (16” Diameter or Higher).
Increased Membrane Useful Life and Reduced Fouling:
- Smoother Membrane Surface – Carbon Nanotube Membranes – CSRO & University of Texas (Austin).
- Increased Membrane Material Longevity;
- Use of Systems for Continuous RO Membrane Cleaning;
- UF/MF Membrane Pretreatment.
Commercial Forward Osmosis Systems;
Co-Location With Power Plants;
Regional Desalination and Concentrate Disposal;
Larger RO Trains and Equipment;
Full Automation of All Treatment Processes.
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51. Nano-Structured SWRO Membranes
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52. Potential to Reduce 60 to 80 % of Energy Costs &
15 to 25 % of Cost of Water
OASYS
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53. Research Directions to Meet the Long-Term 80 % Cost Reduction Goal
Improve Membrane Useful Life and Productivity;
Develop Corrosion Resistant Non-Metallic Materials to Replace High-Quality/High Cost Stainless Steel RO Piping;
Reduce Pretreatment Costs;
Develop New-Generation Energy Recovery Systems;
Introduce Low-Cost Technologies for Beneficial Concentrate Use and Disposal;
Explore New Technologies for Seawater Desalination Different from RO and Thermal Evaporation.
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54. Aquaporine-Based Desalination
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55. “The Best” of Seawater Desalination Present Status & Future Forecasts
Parameter
Today
Within 5 Years
Within 20 Years
Cost of Water (US$/m³)
US$
US$
US$
Construction Cost
(Million US$/ML)
Power Use
(kWh/m³)
Membrane Productivity
(gallons/day/membrane)
5,000-12,000
8,000-15,000
20,000-40,000
Membrane Useful Life
(years)
5-7
7-10
10-15
Plant Recovery Ratio
(%)
45-50
50-55
55-65
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56. Concluding Remarks
The Ocean Will Become One of the Key Sources of Reliable and Draught-Proof Coastal Water Supply in the Next 10 to 20 Years;
Large-scale Seawater Desalination is Economical Today and Will Become Even More Cost-Competitive in the Future;
The Future of Seawater Desalination Is Bright – 20% Cost of Water Reduction in the Next 5 Years;
Long-term Investment In Research and Development Has the Potential to Reduce the Cost of Desalinated Water by 80 % In the Next 20 Years.
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57. Seawater Desalination Costs
Questions?
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