THE NEW ROI - FRTR · The New ROI The New ROI - Outcome . Trajectory . Certainty . Source Treatment...

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J Q i PE PG

THE NEW ROI Return on Investigation from Smart Characterization Methods

Joe Quinnan, PE, PG Nick Welty, CPG, PG

December 2, 2015 FRTR General Meeting

Site Characterization for Effective Remediation

Agenda • Health and SafetyHealth and Safety

Moment• R tReturn on

Investigation• Exit Ramp Strategies• Smart

CharacterizationCharacterization• Flux-Based CSMs

© Arcadis 2015

Health and SafetyInnovationInnovation

© Arcadis 2015

© Arcadis 2015http://www.geotechenv.c om/Newsletters/march_2 014_winner.html

o The ROI f Smart The ROI of Smart CharacterizationCharacterization

30 November 2015 5

Full slurrywall

Smart characterization

Focused pumping

90% of relative flux in Return on Investigation Return on Investigation10% of cross-section

Client avoided di $5Mspending > $5M

on slurry wall

© Arcadis 2015

( ) q

LNAPL recovery (> 25 acres)

Smart characterization

LNAPL removal not required

Return on Investigation Return on Investigation

Client avoided spending $$4 - $$5M on active LNAPL recovery

© Arcadis 2015

Unknown plume extent

Smart characterization

1-mile long, 10PPM VOC plume

R t I ti Return on Investiti gation

No active No active remediation required

© Arcadis 2015

e

g

E it R St t i

Return onReturn on InvestigationApproach ValueApproach Val

proposition

Exit Ramp Strategies

The New ROI

Align remedy with business strategy Exit Ramp Strategiesstrategy

Outcome certainty

LFlux-Based Least cost Smart Characterization

Flux Based Conceptual Site

Model

© Arcadis 2015 930 November 2015

The New ROI CurrentCurrent Trajectory

Total $$

© Arcadis 2015 Time 30 November 2015 10

The New ROI CurrentCurrent Trajectory

Year 30 projected cost

savings

ROI pay back period

Year 30

Opptimized OpEx

Total $$ CapEx for Smart Characterization

Time © Arcadis 2015 30 November 2015 11

TheThe New ROI New ROI Current Current

Opptimized OpEx

Best CapEx for source

treatment or Outcome alternate tealterna

Total $$ strategy

Trajectory

Year 30 projected cost savings

ROI pay back periodperiod

Year 30 © Arcadis 2015 Time 30 November 2015 12

g

E it R St t i

Exit Ramp Strategiesstrategy

Outcome certainty

LFlux-Based Least cost Smart Characterization

Flux Based Conceptual Site

Model

© Arcadis 2015 1330 November 2015

Return onReturn on InvestigationApproachApproach

Exit Ramp Strategies

The New ROI

Align remedy with business strategy

Background PW

Diffuse VOC plume PW

PW Characterized with S d monitoring wells

20 years of P&T

© Arcadis 2015

Clay 30 November 2015

Sand

14

The Problem

PWPW MassMass Removal

PW Time

S d

Total Total $$ $$

© Arcadis 2015

Clay Time

30 November 2015

Sand

15

CurrentCurrent The New ROI The New ROI

Total $$

Trajectory

Smart characterization • Find mass that moves

Focus remedy Focus remedy Balanced approach:

• Align remedy withb i bj business objectiti ves

• Achieve return oninvestigationinvestigation

© Arcadis 2015 Time 30 November 2015 16

Current Trajectory

The New ROI The New ROI Current

Optimized OpEx

Total $$ CapEx for Smart Characterization

• Potential to reduce duration• Use Exit Ramps to ensure business solution

Flatten OpEx trajectory • Optimize P&T performance

Flatten OpEx trajectory

© Arcadis 2015 Time 30 November 2015 17

t Ca to e su e O

CurrentCurrent The New ROI The New ROI Trajectory

CapEx for source treatment

Total $$

period

OptimizedpOpEx

Best Outcome

• Optimize remedy performance• Align with business objectives• Limit CappEx to ensure ROI• Select alternative strategy or

management based on paybackperiod

© Arcadis 2015 Time 30 November 2015 18

g

E it R St t i

Return onReturn on InvestigationApproachApproach

Exit Ramp Strategies

The New ROI

Align remedy with business strategy Exit Ramp Strategiesstrategy

Outcome certainty

LFlux-Based Least cost Smart Characterization

Flux Based Conceptual Site

Model

© Arcadis 2015 1930 November 2015

Exit Rampp 1 – Can P&T be optimized?

$50K investment

Goal: • Optimize P&T

• Reduce OpEx

increase mass removal

Sand

• Reduce duration &increase mass removal

30 November 2015 20

PWPW

PW

© Arcadis 2015

Clay

Sand

?

© Arcadis 2015

Clay

PW ?

? ?

PW

PW

Exit Ramp 1 Result: Flux transect Result: Flux transect

• Plume is concentratedPlume is concentrated • Pumping can be

optimized• Change cost and

performance curve

Why is plume concentrated?

30 November 2015 21

g

E it R St t i

t

Return onReturn on InvestigationApproachApproach

Exit Ramp Strategies

The New ROI

Align remedy with business strategy Exit Ramp Strategiesstrategy

Outcome certainty

L Ne Generation Flux-Based Least cost Next Generation Smart

Characterization

Flux Based Conceptual Site

Model

© Arcadis 2015 2230 November 2015

HPTStratigraphic Flux HPTg p Relative permeability

Find the flux 0.1 1.0 10 100

?

Sand

?

Clay

Fine Sand

Coarse Sand

> 90% of flow is in

Interbedded d l

coarse sand zone

sand & silt

Clay

© Arcadis 2015 2330 November 2015

Stratigraphic Fluxg p HPT Relative permeability

Find the flux 0.1 1.0 10 100

?

Sand

?

Clay

Fine Sand

Coarse Sand

>90% of flux is in

Interbedded d l

coarse sand zone

sand & silt

Clay

© Arcadis 2015 2430 November 2015

© Arcadis 2015

PW? PW

Clay

Exit Ramp 2 -OpEx Optimization

• Consider ROI paybackon CapEx

• Verify plume geometry

30 November 2015 25

??

2630 November 2015

PW

FFocus pumpiing on flfl ux… © Arcadis 2015

?

?

2730 November 2015

PW

© Arcadis 2015

Optimize O EOpEx, enhance massmass recovery with lesswith less flow

– -

CurrentThe New ROI – Flux- CurrentThe New ROI Flux Based CSM

OptimizedOptimized OpEx

Total $$ CapEx for Smart Characterization

• Optimize P&T performance•• Flatten OpEx trajectory

Trajectory

Flatten OpEx trajectory • Potential to reduce duration

© Arcadis 2015 Time 30 November 2015 28

Outcome Certaintyy?

PW

Duration of P&T Or opportunity for optimized remedyremedy depends on source

© Arcadis 2015 2930 November 2015

source

Calibrating ROI Expectations • Remedy decisions dependent on more than least total cost

•• Align the remedy to meet expectations that match yourAlign the remedy to meet expectations that match yourbusiness needs in short- and long-term

© Arcadis 2015 30 November 2015 30

The New ROI CurrentCurrent Trajectory

Opptimized OpEx

Best CapEx for Outcome source

Total $$ treatment

• Select payback period to determine ifsource characterization & remedyaligns with business objective

• What ROI is required to optimize remedy?

© Arcadis 2015 Time 30 November 2015 31

Source Treatment – Exit Ramp

Flux-Based Source E lEvaluattiion • Mass

distributionrelative totransport andstorage zonesdictatetechnologies,endppoint, andcost

Is Smart source characterization worth the effort? Is Smart source characterization worth the effort? © Arcadis 2015 30 November 2015 32

Flux-based source evaluation – Transport zone

Coarse Sand >90% of flux in

Interbedded d l

coarse sand zone

Limited mass in difficult to treat sand & silt

Size is key

difficult to treat storage zone

© Arcadis 2015 3330 November 2015

Size is key cost factor

The New ROI - Outcome CurrentCurrent CertaintyCertainty Trajectory

Opptimized OpEx

Best CapEx for Outcome source treatmentTotal $$

• Evaluate payback period for CapEx ofSmart Characterization and sourceSmart Characterization and sourcetreatment

• Business decision to proceed

• Benefit of source evaluation

Time © Arcadis 2015 30 November 2015 34

Flux-based source evaluation – storage zone source storage zone source

Coarse Sand

Interbedded d lsand & silt

© Arcadis 2015 3530 November 2015

Treatment approach is key approach is key cost factor

>90% of flux in coarse sand zone

Significant mass inmass in difficult to treat storage zone

Current The New ROI The New ROI - Outcome Trajectory Outcome Trajectory

Certainty Source

Treatment Optimized

OpExOpExCapEx for

source treatment • Benefit of source characterization

• C EX f t tCapEX of source treatmenttTotal $$ exceeds reasonable payback

• Optimize P&T performance• Fl tt O E t jFlatten OpEx trajecttory• Potential to reduce duration

Time © Arcadis 2015 30 November 2015 36

For new sites, do it right the first time: SMART SMART

CONVENTIONAL CHARACTERIZATION V SS.

Investiggation • Years of effort• Dozens of reports & work

plans

Remediation • Long-term, ineffective

remedy• Poor outcome certainty

© Arcadis 2015

Investigation • Weeks of effort using real-time

methods• ONE report & work plan

Remediation • Focused, cost-effective remedy• Outcome certainty with

t it t t h b iopportunity to match businessobjectives

30 November 2015 37

g

E it R St t i

Return onReturn on InvestigationApproachApproach

Exit Ramp Strategies

Value proposition

The New ROI

Align remedy with business strategy Exit Ramp Strategiesstrategy

Outcome certainty

LFlux-Based Least cost Smart Characterization

Flux Based Conceptual Site

Model

© Arcadis 2015 3830 November 2015

© Arcadis 2015

Questions?Questions?

ArcadisArcadis Improving quality of life

ContactsContacts Joe Quinnan, PE (Wisconsin), PG Global Director Site Investigations/Emerging Contaminants Lead 24 years of experience, 15 with Arcadis Brighton, Michigan JQuinnan@Arcadis.com 810.225.1943

Nick Welty, PG, CPG Principal Geologist, Next-Generation Site Characterization Lead 10 years with Arcadis Brighton, Michigan NW l @A di NWelty@Arcadis.com 810.225.1958

© Arcadis 2015 30 November 2015 40

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