ultrawaves presentation for the 19th european biosolids & organic resources conference &...

ULTRASOUND & TOTEX: THE PERFECT MATCH BETWEEN

TECHNOLOGY AND ECONOMY

19th European Biosolids & Organic Resources Conference & Exhibition

17th - 19th November 2014, Manchester, UK

Luis VergaraTechnical Director


Ultrasound & TOTEX: the perfect match between technology and economy

Shifting to a new mind-set…

WHY TOTEX?

If one of the targets is to get…

Or maybe a new approach is now required (AMP6, etc.)

Then, what is the most appropriate strategy?



The best way to engage CAPEX & OPEX

BUT WHAT IS TOTEX?

…“A TOTEX approach considers expenditure in a more holistic way. This means looking at a total expenditure requirement rather than separate OPEX & CAPEX allowances” Ofwat

…But water is not the only sector interested in TOTEX…

…”An approach focused on reducing cost over the long term, would provide lasting benefits for customers (RIIO models)”

Ofgem



Some conceptualisations

MODELLING TOTEX

Money now is more valuable than money later on

The Net Present Value (NPV) could be then used as a helpful cash flow metric tool



Parameterizing & mathematizing the NPV

EVALUATING TOTEX

T

The Net Present Value (NPV) could be then an useful tool

Investment = K

Time = n (j = 1, …, n)

Cash flow = R = (Collection – Payment) = C – P

Discount rate = r

A mathematical equation

Key parameter!!!



Different scenarios for different “r”

SENSITIVE ANALYSIS

If r = the rate of return that could be earned on an investment in the financial markets with similar risk (= the opportunity cost of capital)

Then, what to consider when deciding about r?

… A sensitive analysis will cover a wide range of possibilities

Driver (from last 20 years) Increase/y Unit

Stock Market 6.12 %

Retail Price Index 3.75 %

Electricity 5.71 %

Wastewater Treatment Works (WwTW). And within this market two applications:

Anaerobic Digestion

Bulking and foaming

Anaerobic Digestion Facilities (ADF)

Cases displayed below have been calculated to apply just one standard unit (5 kW) which is obviously scalable ()



… Where we will see two different markets

NOW, THE MATCHING…



Anaerobic digestion (AD)

SO, A FIRST APPLICATION IN WwTW

Let’s consider a WwTW...

Assuming typical costs/prices:

0.10 £/kWhpurchased

0.12 £/kWhgenerated

20 £/t WS (disposal)

Then, it is possible to assess the impact of ultrasound on TOTEX

WS = Wet Solids

WwTW parameter Quantity Unit

TS load to be digested 8.0 t TS/d

Biogas production 2,160 Nm3/d

TS load in digestate 5.3 t TS/d

Cake dryness 20 %

Sludge load for disposal 26.5 t WS/d



Ultrasound improves the VS-degradation

BENEFITS (COLLECTION) FOR AD IN WwTW

Just a 5 kW reactor is required

… And a very simple installation!!!

So, assuming an improvement of approx. 20% in the VS-deg:

Collection (C) Quantity Unit

Energy production 45.84 £k/y

Sludge reduction 33.71 £k/y

Others* 5.79 £k/y* Polymer & dewatering

1.5 x 1.1 x 0.3 m



O&M costs have to be faced

COSTS (PAYMENT) FOR AD IN WwTW

… Which only are consumption & consumables

Thus, unlike other technologies:

Easy adaptation to existing processes

No problem with “by-products” (NH3, dioxins, …)

Simple installation

So, for the 5 kW unit:

Payment (P) Quantity Unit

Energy consumption 6.80 £k/y

Consumables 3.75 £k/y

Others 0.00 £k/y



The 5 kW reactor is the asset to be evaluated

ESTIMATED NPV FOR AD IN WwTW

All the expenditures are included in K (reactor + ancillaries + installation…)

10 years have been considered as the asset lifetime in n

4 has been selected as a reasonable value for r

Parameter Quantity Unit

K (variable) 175 £k

n 10 y

r 4 %

PV 607 £k

NPV 432 £k

TOTEXBy this…Ultrawaves won the "Olympic gold" for energy efficiency in WwTW operation

NPV = f(r) and there is one r that makes f(r) = 0

This r is the Internal Rate of Return (IRR)

IIR is used to evaluate the attractiveness of an investment and the one with the highest IRR is preferred

Ultrawaves technology offers an extremely high IRR



Let’s consider different values for r…

SENSITIVE ANALYSIS FOR AD IN WwTW

r NPV

2 497

3 463

4 4325 403

6 375

… …

10 285

15 200

41.4 0K & n = constants



Bulking and foaming

ANOTHER APPLICATION IN WwTW

Let’s consider a WwTW...


0.10 £/kWhpurchased

0.15 £/kg (Chemicals)

0.4 £/kg TS (disposal)

So, it is also possible to assess the impact of ultrasound on TOTEX

WwTW parameter Quantity UnitType of process Activated Sludge

RAS flow 12,000 m3/d

Dominant Filament M. Parvicella

PAX dose per unit of RAS 150 ppm

Sludge load for disposal 1.2 t TS/d



Ultrasound removes just the filaments

BENEFITS FOR BULKING & FOAMING

Just 5 kW are required again

… and the easy installation!!

So, assuming a reduction of approx. 25% in the SVI:

Collection (C) Quantity Unit

Chemicals 48.60 £k/y

Sludge reduction 23.09 £k/y

Others* 9.82 £k/y* O&M works & RAS pumping saving



So, the 5 kW reactor is the asset again

NPV AND IRR FOR BULKING & FOAMING

O&M costs associated with the 5 kW reactor are the same as AD

The parameters K, n and r relative to NPV have also remained unmodified

And for this case the IRR is also very good!!

Parameter Quantity Unit

K (variable) 175 £k

n 10 y

r 4 %

PV 576 £k

NPV 401 £k

r NPV

39.1 0



Anaerobic Digestion Facilities (ADF)

NOW, A DIFFERENT MARKET: RENEWABLES

Let’s consider an ADF...


11.52 p/kWhgenerated (FITs)

0.05 £/kg (feedstock)

The impact of ultrasound on TOTEX has two scenarios: energy production and/or feedstock saving!!

DS = Dry Solids

ADF parameter Quantity Unit

No. of digesters 2 Tank

Feedstock Maize silage

Load to be digested 25 t/d

Plant capacity 475 kW

HRT 60 d

Biogas production 4,500 Nm3/d



Ultrasound improves the VS-deg and mixing

BENEFITS FOR ADF: ENERGY OR FEEDSTOCK

Just 5 kW are newly required

… And the very simple installation!!!

So, assuming an improvement of approx. 15% in the VS-degradation:

Collection (C) Scenario 1 Scenario 2 Unit

Energy production 78.69 0 £k/y

Feedstock saving 0 58.01 £k/y

Mixing 5.26 5.26 £k/y

Small container: 2 x 2 x

2 m

Scenario 1: Electricity production & Scenario 2: Feedstock saving



Once more, the 5 kW system is the asset

ESTIMATED NPV & IRR FOR ADF

O&M costs, K, n and r are the same as the cases above

… And the IRR is pretty large once again!!

Parameter Scenario 1 Scenario 2 Unit

K (variable) 175 175 £k

n 10 10 y

r 4 4 %

PV 591 423 £k

NPV 416 248 £k

r1 r2 NPV

40.2 27.1 0

19 th European Biosolids & Organic Resources Conference & Exhibition

Mission possible:

successful

implementation

SO, FOR THE TOTEX CHALLENGE: YES WE CAN




… come to visit Ultrawaves at the Exhibitors Room!!

Any questions?

ultrawaves presentation for the 19th european biosolids & organic resources conference &...

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