19 th European Biosolids Organic Resources Conference Exhibition

19 th European Biosolids & Organic Resources Conference & Exhibition ULTRASOUND & TOTEX: THE PERFECT MATCH BETWEEN TECHNOLOGY AND ECONOMY Luis Vergara Technical Director 17 th - 19 th November 2014, Manchester, UK

Ultrasound & TOTEX: the perfect match between technology and economy WHY TOTEX? Shifting to a new mind-set… If one of the targets is to get… Then, what is the most appropriate strategy? Or maybe a new approach is now required (AMP 6, AMP 6 etc. ) 19 th European Biosolids & Organic Resources Conference & Exhibition

Ultrasound & TOTEX: the perfect match between technology and economy BUT WHAT IS TOTEX? The best way to engage CAPEX & OPEX @…“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, term would provide lasting benefits for customers (RIIO models)” Ofgem 19 th European Biosolids & Organic Resources Conference & Exhibition

Ultrasound & TOTEX: the perfect match between technology and economy MODELLING TOTEX Some conceptualisations 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 19 th European Biosolids & Organic Resources Conference & Exhibition

Ultrasound & TOTEX: the perfect match between technology and economy EVALUATING TOTEX Parameterizing & mathematizing the NPV T Key parameter!!! The Net Present Value (NPV) could be then an useful tool 19 th European Biosolids & Organic Resources Conference & Exhibition

Ultrasound & TOTEX: the perfect match between technology and economy SENSITIVE ANALYSIS Different scenarios for different “r” 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) capital Then, what to consider when deciding about r? Driver (from last 20 years) Increase/y Unit Stock Market 6. 12 % Retail Price Index 3. 75 % Electricity 5. 71 % … A sensitive analysis will cover a wide range of possibilities 19 th European Biosolids & Organic Resources Conference & Exhibition

Ultrasound & TOTEX: the perfect match between technology and economy NOW, THE MATCHING… … Where we will see two different markets Wastewater Treatment Works (Ww. TW). Ww. TW And within this market two applications: Anaerobic Digestion Bulking and foaming Anaerobic Digestion Facilities (ADF) ADF Cases displayed below have been calculated to apply just one standard unit (5 k. W) k. W which is obviously scalable (�� ) 19 th European Biosolids & Organic Resources Conference & Exhibition

Ultrasound & TOTEX: the perfect match between technology and economy SO, A FIRST APPLICATION IN Ww. TW Anaerobic digestion (AD) Let’s consider a Ww. TW. . . Assuming typical costs/prices: 0. 10 £/k. Whpurchased 0. 12 £/k. Whgenerated 20 £/t WS (disposal) Ww. TW parameter Quantity Unit 8. 0 t TS/d Biogas production 2, 160 Nm 3/d TS load in digestate 5. 3 t TS/d Cake dryness 20 % 26. 5 t WS/d TS load to be digested Sludge load for disposal WS = Wet Solids Then, it is possible to assess the impact of ultrasound on TOTEX 19 th European Biosolids & Organic Resources Conference & Exhibition

Ultrasound & TOTEX: the perfect match between technology and economy BENEFITS (COLLECTION) FOR AD IN Ww. TW Ultrasound improves the VS-degradation Just a 5 k. W reactor is required … And a very simple installation!!! 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 19 th European Biosolids & Organic Resources Conference & Exhibition 1. 5 x 1. 1 x 0. 3 m

Ultrasound & TOTEX: the perfect match between technology and economy COSTS (PAYMENT) FOR AD IN Ww. TW O&M costs have to be faced … Which only are consumption & consumables Thus, unlike other technologies: Easy adaptation to existing processes No problem with “by-products” (NH 3, dioxins, …) Simple installation Payment (P) Quantity Unit So, for the 5 k. W unit: Energy consumption 6. 80 £k/y Consumables 3. 75 £k/y Others 0. 00 £k/y 19 th European Biosolids & Organic Resources Conference & Exhibition

Ultrasound & TOTEX: the perfect match between technology and economy ESTIMATED NPV FOR AD IN Ww. TW The 5 k. W reactor is the asset to be evaluated 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 By this… Ultrawaves won the "Olympic gold" for energy efficiency in Ww. TW operation 19 th European Biosolids & Organic Resources Conference & Exhibition TOTEX

Ultrasound & TOTEX: the perfect match between technology and economy SENSITIVE ANALYSIS FOR AD IN Ww. TW Let’s consider different values for r… r NPV 2 497 3 463 4 432 5 403 6 375 … … 10 285 15 200 41. 4 0 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 K & n = constants 19 th European Biosolids & Organic Resources Conference & Exhibition

Ultrasound & TOTEX: the perfect match between technology and economy ANOTHER APPLICATION IN Ww. TW Bulking and foaming Let’s consider a Ww. TW. . . Assuming typical costs/prices: 0. 10 £/k. Whpurchased 0. 15 £/kg (Chemicals) 0. 4 £/kg TS (disposal) Ww. TW parameter Quantity Unit Type of process Activated Sludge RAS flow 12, 000 m 3/d Dominant Filament M. Parvicella PAX dose per unit of RAS 150 ppm Sludge load for disposal 1. 2 t TS/d So, it is also possible to assess the impact of ultrasound on TOTEX 19 th European Biosolids & Organic Resources Conference & Exhibition

Ultrasound & TOTEX: the perfect match between technology and economy BENEFITS FOR BULKING & FOAMING Ultrasound removes just the filaments Just 5 k. W are required again … and the easy installation!! 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 19 th European Biosolids & Organic Resources Conference & Exhibition

Ultrasound & TOTEX: the perfect match between technology and economy NPV AND IRR FOR BULKING & FOAMING So, the 5 k. W reactor is the asset again O&M costs associated with the 5 k. W 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!! r NPV 39. 1 0 19 th European Biosolids & Organic Resources Conference & Exhibition Parameter Quantity Unit K (variable) 175 £k n 10 y r 4 % PV 576 £k NPV 401 £k

Ultrasound & TOTEX: the perfect match between technology and economy NOW, A DIFFERENT MARKET: RENEWABLES Anaerobic Digestion Facilities (ADF) Let’s consider an ADF. . . Assuming typical costs/prices: 11. 52 p/k. Whgenerated (FITs) 0. 05 £/kg (feedstock) ADF parameter No. of digesters Quantity Unit 2 Tank Feedstock Maize silage Load to be digested 25 t/d Plant capacity 475 k. W HRT 60 d 4, 500 Nm 3/d Biogas production The impact of ultrasound on DS = Dry Solids TOTEX has two scenarios: energy production and/or feedstock saving!! 19 th European Biosolids & Organic Resources Conference & Exhibition

Ultrasound & TOTEX: the perfect match between technology and economy BENEFITS FOR ADF: ENERGY OR FEEDSTOCK Ultrasound improves the VS-deg and mixing Just 5 k. W are newly required … And the very simple installation!!! 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 0 58. 01 £k/y 5. 26 £k/y Feedstock saving Mixing Scenario 1: Electricity production & Scenario 2: Feedstock saving 19 th European Biosolids & Organic Resources Conference & Exhibition Small container: 2 x 2 x 2 m

Ultrasound & TOTEX: the perfect match between technology and economy ESTIMATED NPV & IRR FOR ADF Once more, the 5 k. W system is the asset O&M costs, K, n and r are the same as the cases above … And the IRR is pretty large once again!! r 1 r 2 40. 2 27. 1 Parameter Scenario 1 K (variable) 175 £k n 10 10 y r 4 4 % PV 591 423 £k NPV 416 248 £k NPV 0 19 th European Biosolids & Organic Resources Conference & Exhibition Scenario 2 Unit

Ultrasound & TOTEX: the perfect match between technology and economy SO, FOR THE TOTEX CHALLENGE: YES WE CAN : e l b i ss o p on i s s l i u f M s s succe tation en m e l imp 19 th European Biosolids & Organic Resources Conference & Exhibition

Ultrasound & TOTEX: the perfect match between technology and economy Any questions? … come to visit Ultrawaves at the Exhibitors Room!! 19 th European Biosolids & Organic Resources Conference & Exhibition