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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
19th European Biosolids & Organic Resources Conference & Exhibition
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?
19th European Biosolids & Organic Resources Conference & Exhibition
Ultrasound & TOTEX: the perfect match between technology and economy
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
19th European Biosolids & Organic Resources Conference & Exhibition
Ultrasound & TOTEX: the perfect match between technology and economy
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
19th European Biosolids & Organic Resources Conference & Exhibition
Ultrasound & TOTEX: the perfect match between technology and economy
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!!!
19th European Biosolids & Organic Resources Conference & Exhibition
Ultrasound & TOTEX: the perfect match between technology and economy
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 ()
19th European Biosolids & Organic Resources Conference & Exhibition
Ultrasound & TOTEX: the perfect match between technology and economy
… Where we will see two different markets
NOW, THE MATCHING…
19th European Biosolids & Organic Resources Conference & Exhibition
Ultrasound & TOTEX: the perfect match between technology and economy
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
19th European Biosolids & Organic Resources Conference & Exhibition
Ultrasound & TOTEX: the perfect match between technology and economy
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
19th European Biosolids & Organic Resources Conference & Exhibition
Ultrasound & TOTEX: the perfect match between technology and economy
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
19th European Biosolids & Organic Resources Conference & Exhibition
Ultrasound & TOTEX: the perfect match between technology and economy
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
19th European Biosolids & Organic Resources Conference & Exhibition
Ultrasound & TOTEX: the perfect match between technology and economy
Let’s consider different values for r…
SENSITIVE ANALYSIS FOR AD IN WwTW
r NPV
2 497
3 463
4 432
5 403
6 375
… …
10 285
15 200
41.4 0
K & n = constants
19th European Biosolids & Organic Resources Conference & Exhibition
Ultrasound & TOTEX: the perfect match between technology and economy
Bulking and foaming
ANOTHER APPLICATION IN WwTW
Let’s consider a WwTW...
Assuming typical costs/prices:
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 Unit
Type 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
19th European Biosolids & Organic Resources Conference & Exhibition
Ultrasound & TOTEX: the perfect match between technology and economy
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
19th European Biosolids & Organic Resources Conference & Exhibition
Ultrasound & TOTEX: the perfect match between technology and economy
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
19th European Biosolids & Organic Resources Conference & Exhibition
Ultrasound & TOTEX: the perfect match between technology and economy
Anaerobic Digestion Facilities (ADF)
NOW, A DIFFERENT MARKET: RENEWABLES
Let’s consider an ADF...
Assuming typical costs/prices:
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
19th European Biosolids & Organic Resources Conference & Exhibition
Ultrasound & TOTEX: the perfect match between technology and economy
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
19th European Biosolids & Organic Resources Conference & Exhibition
Ultrasound & TOTEX: the perfect match between technology and economy
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
Ultrasound & TOTEX: the perfect match between technology and economy
19th European Biosolids & Organic Resources Conference & Exhibition
Ultrasound & TOTEX: the perfect match between technology and economy
… come to visit Ultrawaves at the Exhibitors Room!!
Any questions?